State-run firms' restructuring aimed at reform, not cost cuts: official
The proposed restructuring of state-run firms is aimed at responding to major changes in the industrial landscape, including the artificial intelligence (AI) transformation, rather than cutting costs, a finance ministry official said Friday. The remarks came after the Korean government unveiled a blueprint to reduce the number of state-run firms by around 20 percent, from 524 to 415, the previous…
The proposed restructuring of state-run firms is not aimed at cost cuts, but rather addressing major changes in the industrial landscape, according to a finance ministry official. The official explained that the government's blueprint seeks to reduce the number of state-run firms from 524 to 415, a decrease of around 20 percent.
This approach marks a significant shift from previous initiatives that focused on improving efficiency and tackling poor management. The finance ministry official emphasized that the new strategy will involve comprehensive and preemptive reforms to tackle complex challenges, including the rapid transformation brought about by artificial intelligence.
While workforce reallocation will be part of the restructuring process, the official reassured that it will not result in a reduction of new hires. Currently, 109 entities are subject to the restructuring and employ an estimated 120,000 full-time workers. To oversee the implementation of the restructuring plan, Korea will establish a task force.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
