South Korea to recommend dismissal of heads of Public Pension Service, KOICA for poor performance

South Korea's government is moving to dismiss the heads of the Public Pension Service and the Korea International Cooperation Agency (KOICA) following their "very unsatisfactory" performance evaluations. The decision was made during the 7th Public Institution Operation Committee meeting on June 19, chaired by Deputy Prime Minister and Minister of Economy and Finance Goo Yoon-cheol.

This evaluation marks a shift, as the government introduced a separate performance assessment for agency heads alongside institutional evaluations starting in 2025. This individual assessment uses a four-tier system: excellent, satisfactory, unsatisfactory, and very unsatisfactory. Agency heads rated "unsatisfactory" receive a warning, while those deemed "very unsatisfactory" face a recommendation for dismissal if they are currently in office.

Out of 82 agency heads evaluated, seven received a "very unsatisfactory" rating. Among them, the heads of the Public Pension Service and KOICA are currently in office and thus face dismissal recommendations. Additionally, 17 heads were rated "unsatisfactory." The evaluation also addressed institutional performance, with three out of 87 institutions receiving a "very unsatisfactory" rating: the Korea Broadcasting Advertising Corporation, the National Park Service, and KOICA. These institutions, along with those receiving "unsatisfactory" ratings, face potential budget cuts of 0.5% to 1% in their operating expenses for the following year.

The committee also evaluated 58 standing auditors and audit committee members, with six receiving an "unsatisfactory" rating and none receiving "very unsatisfactory." Institutions that achieved an "excellent" rating were recognized for actively pursuing major projects and national tasks, effectively preventing safety accidents, and demonstrating outstanding performance in utilizing artificial intelligence. Conversely, institutions with poor performance in key projects or inadequate financial and safety management received lower ratings.

Performance bonuses will also be adjusted based on these evaluations. Agencies rated "satisfactory" or higher will receive bonuses according to their type and rating. The government also recommended that executives of public enterprises whose net profit decreased or resulted in a loss in 2025 voluntarily return 25% of their performance bonuses. Deputy Prime Minister Goo stated that the government will continue to manage public institutions to ensure they fulfill their core duties while guaranteeing their autonomy and accountability in management.

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We will continue to manage public institutions to ensure they fulfill their core duties while guaranteeing their autonomy and accountability in management.