Research Report
Legislation study on autonomous and responsible management of public institutions
I. Background and Purpose of Research
▶ Background of the study
○Public purpose institutions in Korea are governed by laws governing the operation of public institutions
-In Korea, public purpose institutions are a term that includes various public purpose organizations
-The reason is different from foreign names such as state-owned enterprises, local government-owned enterprises, government-owned companies, public enterprises, government-supported enterprises, government corporations, and mixed enterprises
○The Public purpose Institutions Management Act is broadly categorized into three categories: ① public corporations, ② quasi-governmental public institutions, and ③ other public institutions
▶ Purpose of the study
○Review the Public purpose Institution Management Act and also understand the revision of the OECD Guidelines on Corporate Governance of State-Owned Enterprises
○The Public Purpose Institutions Management Act stipulates autonomous management and responsible management
-The Public Purpose Institutions Management Act states the purpose of the law in Article 1.
-Article 1 declares that the autonomous management and responsible management of public purpose institutions are the main objectives.
○Introducing theories that are claimed to be necessary for improving the Public Institution Management Act
Ⅱ. Contents
▶ Operation and tasks of the Public Purpose Institution Operation Act
○Background of the introduction of the Public Purpose Institution Management Act and corporate governance structure
-Administrative reform was called for as neoliberalism and new public management theories emerged.
-First, it was requested that the corporate governance theory of private companies be applied to public institutions. From the same perspective, the discussion on improving the corporate governance structure of private companies also emerged as a major topic.
-A study on the supervision and reform of public enterprise corporate governance in each country
○Reviewing the Responsible Management Agency Act and the laws preceding the Public Purpose Institution Management Act
-The Responsible Management Agency Act is the current law and is a form of law that many countries are pursuing for administrative reform.
-There was a former government investment agency management law in the 1970s.
-From the 1980s to the early and mid-2000s, there was the Basic Act on Management of Government Investment Agencies
-In the 2000s, there was a basic law on the management of government-affiliated organizations.
○Current status and analysis of public purpose institution operation law, operation
-Covered from the introduction of the Public purpose Institutions Management Act to the regulation method and classification
-The Public purpose Institutions Management Act is applied by designation and notification by the Minister of Strategy and Finance
-The Public purpose Institution Management Committee is an important committee governed by the Public purpose Institution Management Act
-Autonomous management and responsible management are important legal objectives. The ultimate goal is to increase productivity (national services) through these two.
-Introducing the status of public purpose institutions designated
-Introduces the efforts of the Ministry of Strategy and Finance to secure autonomous and responsible management. First, the public purpose institution innovation guidelines announced by the Ministry of Strategy and Finance in July 2022 and the plan to reform the public purpose institution management system for autonomous management, responsible management, and capacity enhancement announced in August 2022 are discussed.
○review of critical theories and comparative legal implications on public institution discipline OECD Guidelines on Corporate Governance of State-Owned Enterprises
▶OECD Guidelines on Corporate Governance of State-Owned Enterprises and Principles of Autonomy and Responsibility Management
○Discusses stakeholders of public enterprises, mechanisms for ensuring management autonomy and accountability, governance structure, and changes in the OECD Public Enterprise Governance Guidelines.
○Review of the main contents of the 2024 OECD Guidelines on Corporate Governance of State-Owned Enterprises
▶Reviewing the means of achieving autonomous management and responsible management for the principled purpose of the Public purpose Institution Management Act and reviewing the means of applying the critical views of academic theories
Ⅲ. Expected effect
▶ Policy Expected Effects
○It is expected that it can be used as basic data for establishing and promoting government public purpose institution policies
▶ Academic Expected Effects
○It is expected to contribute to academic research related to the legal policies of public institutions.