![[서울신문] LH, ethics’D grade’ incentives… If there is an accident in the future, it will be reduced](https://img.seoul.co.kr/img/upload/2021/03/08/SSI_20210308171209.jpg "[서울신문] LH, ethics’D grade’ incentives… If there is an accident in the future, it will be reduced")
Review of government and public institution management evaluation system improvement
Increased points for ethical management in management evaluation
LH, if speculation is confirmed, the existing incentive is returned
▲ Farmers from the National Federation of Farmers’ Associations, Busan-Gyeongnam Federation, hang a banner on the LH flag on the front door of Korea Land and Housing Corporation (LH) headquarters in Chungmu-dong, Jinju-si, Gyeongsangnam-do. 2021.3.8 Yonhap News
In the future, if an employee of a public institution hits a’big accident’ such as a real estate speculation by the employees of the Korea Land and Housing Corporation (LH), all employees of the public institution will not receive incentives. If it is confirmed that LH employees’ real estate speculation is true, the government plans to downgrade the evaluation grade to reflect the 2019 management evaluation that had already ended, and to recover the bonuses already paid.
According to the government authorities on the 21st, as one of the measures to prevent the recurrence of the LH incident, a plan to improve the management evaluation system of public institutions including these contents is being reviewed within the government.
A government official said, “In the case of the LH incident, it is basically an individual’s deviant behavior, but it is appropriate to place heavy responsibility even on an institution that fails to properly manage it, and we are looking for ways to improve the management evaluation system of public institutions in this direction. “He said.
● “Disadvantages not only for individuals but also for institutions” incentives to be reduced
This means that in the case of major deviations such as the LH incident, we will not only hold the individual responsible, but also change the management evaluation system of public institutions so that the relevant public institution suffers a great disadvantage.
If a public institution receives a failing mark in the management evaluation, in the worst case, the head of the institution is dismissed. Also, executives and employees do not receive incentives. In some institutions, incentive pay accounts for more than 10% of total remuneration, so the reduction in incentive pay is a significant economic blow to employees.
To this end, the government is first considering ways to increase the points on ethical management or publicity when evaluating the management of public institutions. This is to compensate for the problem that the’ethical management’ division, which is directly related to the LH incident, has only 3 points out of 100, which does not significantly affect the results of management evaluation.
▲ On the afternoon of the 9th, the anti-corruption economic crime investigation unit of the South Gyeonggi Police Agency at the Gwangmyeong Siheung Project Headquarters in Gwangmyeong, Gyeonggi Province, is moving the confiscated goods after a seizure search for the’alleged speculation in the new city of LH employees’. Yonhap News, 2021.3.9
LH received a D grade, which was a failing point in the ethical management category in the management evaluation of public institutions last year, but the overall grade was A grade, the highest grade. Although the management evaluation team’s comments on corruption and ethical issues continued every year, the reason why we were able to receive A grade for three consecutive years was because the additional points for ethical management were too low.
In the event of a material deviation, more indicators are under consideration to deduct management evaluation scores. If an LH-class incident occurs, it is possible to reduce the leadership score by taking responsibility for poor management and supervision of employees as well as ethical management.
●Higher ethical management score and reinforced evaluation of poor management
The government differentially pays management evaluation incentives to institutions with a grade of C or higher for each category, such as comprehensive grade, business management, and major business. If the management evaluation grade falls below a certain level due to a major deviation, you may not be able to receive any incentives at all.
LH, which caused controversy over the new city speculation, is more likely to fail in last year’s management evaluation, which is currently underway. The incentives paid according to the 2019 management evaluation conducted last year are also in danger of being redeemed. LH employees received 7.87 million won in 2017, 89.4 million won in 2018, and 9.92 million won in 2019 as incentives for management evaluation. The government is planning to finalize a plan to improve the management evaluation system of public institutions as early as this week and at the latest next week.
Reporter Jeong Hyun-yong [email protected]