(LEAD) Gov't to merge, restructure state-run firms, guarantee job security
SEOUL, Sept. 3 (Yonhap) -- The government said Thursday it will carry out a majo...
The South Korean government announced plans on September 3rd to merge and restructure 109 state-run firms, aiming to streamline operations and guarantee job security for existing workers. The initiative, called DIET, or dynamic game changers, integrated entities, efficient players, and a transparent system, will see the number of state-run firms decrease from 524 to 415.
Key changes include the consolidation of five power generators into a single entity, reducing reliance on multiple entities for energy supply. Additionally, the government plans to merge four port authorities into one with regional branches, streamlining shipping and logistical operations.
The Korea National Oil Corp. and Korea Gas Corp. will also be merged into a single company, while the Korea Land & Housing Corp. will be split into two organizations, focusing on land development, housing construction, and housing welfare respectively. This separation aims to address inefficiencies caused by the organization's dual mandate.
The government emphasizes that workers' job security will be guaranteed, with no deterioration in wages or benefits following the mergers. Proactive support measures, such as enhanced welfare programs and performance-based incentives, will be provided to ease the transition.
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