Reforma gerencial: Korea’s style

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The government feels state-run companies do not provide their outside directors with enough information on their management and other related decision-making processes. It has decided to take action.
The Ministry of Planning announced yesterday that it would create a new department that would monitor activities of state-run firms. Its findings would reach outside directors across those companies, and the new department would evaluate whether those directors make sufficient contributions in their roles to provide checks on the management.
The ministry explained that outside directors simply do not have enough information on their hands to know the ins and outs of their companies, keeping them from carrying out their responsibilities in full.

The ministry’s role would not be limited to simply handing over information to outside directors. It would also evaluate those directors on their participation in board meetings, their attendance, how often they offer suggestions and their general contribution to the state-run firms. The ministry reserves the right to dismiss those it deems unqualified for the position.


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