State-run Companies Restructuring

Home > Business > Economy

print dictionary print

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.

More in Economy

Current account goes into deficit for first time in a year

Innovation galore, from drone delivery to cash on the run

Drone-like taxis may soon crowd the skies

Supersized supplementary budget is proposed

Extra budget has some unusual line items

Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)

What’s Popular Now