State-run Companies Restructuring

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State-run Companies Restructuring

The government plans to reduce both both payroll and operating costs in 13 state-run companies including Korea Electric Power.
It will abolish the excessive benefit system including the eight to 10 days of special paid leave. It will also increase the interest rates on the 20 million won housing loans given to all employees from 2 to 7 percent.
The government will reduce the number of employees by 8.8 percent from 63,252 to 57,714. The Budget Administration (BA) announced the budget plans for state-run companies for 1999 on December 28.
A source at the BA said, 'We can trim 1.14 trillion from the budget through this plan.' According to this plan, all personnel's salaries will decrease by 4.5 percent leaving the salary of an employee with 10 years of service reduced from 29 million won to 27.7 million won.

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