Cronyistic appointments contradict Yoon's drive to reform state firms
Politicians who worked at President Yoon Suk-yeol's campaign headquarters are snatching up vacant CEO posts at one state enterprise after another. It is especially problematic that people who lack expertise are being appointed as the heads of energy companies running deficits amid soaring fuel prices.
For example, Choi Yeon-hye, who will be named president of Korea Gas Corp. (KOGAS) next month, has no experience in the energy industry. She was eliminated in the first round of open recruitment because of this problem, but somehow won the job in her second attempt. A similar case is Chung Yong-ki, the nominee for Korea District Heating Corp., whose background has nothing to do with energy.
Management gurus often cite the practice of ex-politicians snatching up the top posts at public companies like trophies as the main reason for their negligent operations. However, now is a moment in which the capabilities of these energy-related state companies to respond to rocketing international fuel prices are more important than ever.
Suppose KOGAS manages to lower the import price of natural gas even by a little. It will then help the economy by reducing the increase in gas rates and narrowing the trade deficit. However, KOGAS has been criticized for not taking advantage of its position as a mass buyer of gas and paying unreasonable prices, although Korea is the world's third-largest natural gas importer, following China and Japan.
Upon taking office, the Yoon administration signaled significant reforms of state-invested companies, saying, "The party is over at public corporations." However, his recent series of appointments based on nepotism forces one to wonder whether the government really intends to reform them. Incompetent and unqualified CEOs will not have the capabilities to push for reforming organizations and improving their revenue structures.
President Yoon must stop using state firms as a means to expand cronyistic appointments. The more former campaign workers Yoon appoints as heads of state enterprises and public organizations, the greater voters will be disappointed and the darker the future of these companies will become.
Politicians who worked at President Yoon Suk-yeol's campaign headquarters are snatching up vacant CEO posts at one state enterprise after another. It is especially problematic that people who lack expertise are being appointed as the heads of energy companies running deficits amid soaring fuel prices.
For example, Choi Yeon-hye, who will be named president of Korea Gas Corp. (KOGAS) next month, has no experience in the energy industry. She was eliminated in the first round of open recruitment because of this problem, but somehow won the job in her second attempt. A similar case is Chung Yong-ki, the nominee for Korea District Heating Corp., whose background has nothing to do with energy.
Management gurus often cite the practice of ex-politicians snatching up the top posts at public companies like trophies as the main reason for their negligent operations. However, now is a moment in which the capabilities of these energy-related state companies to respond to rocketing international fuel prices are more important than ever.
Suppose KOGAS manages to lower the import price of natural gas even by a little. It will then help the economy by reducing the increase in gas rates and narrowing the trade deficit. However, KOGAS has been criticized for not taking advantage of its position as a mass buyer of gas and paying unreasonable prices, although Korea is the world's third-largest natural gas importer, following China and Japan.
Upon taking office, the Yoon administration signaled significant reforms of state-invested companies, saying, "The party is over at public corporations." However, his recent series of appointments based on nepotism forces one to wonder whether the government really intends to reform them. Incompetent and unqualified CEOs will not have the capabilities to push for reforming organizations and improving their revenue structures.
President Yoon must stop using state firms as a means to expand cronyistic appointments. The more former campaign workers Yoon appoints as heads of state enterprises and public organizations, the greater voters will be disappointed and the darker the future of these companies will become.
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