Korea overhauls performance evaluation system for public institutions

[Courtesy of Korea Southern Power]

South Korean state-run enterprises will gain additional points in their performance evaluations when they use equipment from local mid-sized manufacturers for exports, according to a recently revised protocol under the financial authority.

Maeil Business Newspaper has learned Sunday that the Ministry of Economy and Finance convened a meeting last month and approved a revision in the government’s evaluation of public institutions.

Under the existing protocol, extra points have been offered to the public enterprises that use the supplies of small-sized or small- and mid-sized businesses in their overseas ventures.

The revision is expected to benefit domestic power generation companies, including Korea Electric Power Corp. (KEPCO), amid the government’s aim to facilitate the participation of domestic companies in the export of renewable energy like solar and wind power.

The amendment introduces a new provision that awards public enterprises an additional two points if they partner with domestic medium-sized companies in their international exports.

“The revision is to offer incentives to power generation companies, encouraging them to utilize equipment from Korean mid-sized companies when constructing large-scale renewable energy facilities abroad,” said an unnamed government official. “The measure comes as Chinese equipment enjoys a price edge.”