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…
State-run firms in South Korea are undergoing a restructuring aimed at addressing major changes in the industrial landscape, particularly the rapid advancement of artificial intelligence (AI), rather than merely cutting costs, according to a finance ministry official. This announcement follows the government's unveiling of a plan to reduce the number of state-run firms by approximately 20%, from 524 to 415 entities.
The official emphasized that this approach represents a significant departure from past reform efforts, which primarily focused on enhancing efficiency and addressing poor management practices within state-run firms. Under the previous administrations, the reforms were reactive, targeting inefficiencies and managerial shortcomings. However, this latest initiative seeks to be proactive and comprehensive in tackling complex challenges, including the transformative impact of AI on various industries.
While the restructuring will entail reallocation of workforce resources, the official clarified that it will not result in a decrease in the total number of employees. The 109 entities slated for restructuring currently employ an estimated 120,000 full-time workers. The finance ministry's plan includes the establishment of a task force to oversee and manage this significant transformation.
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.
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