S. Korea Implements Major Cuts in State-Run Institution Workforce

SEOUL - In a significant move to streamline its public sector, the South Korean government has eliminated over 10,000 positions from state-run institutions in 2023. The action is part of a broader initiative to enhance the efficiency and management of public corporations, the Ministry of Economy and Finance announced on Wednesday. Through a combination of organizational restructuring, voluntary retirements, and other programs, public companies reduced their workforce by 11,374 positions last year, exceeding the initial goal of 11,072.

According to Yonhap News Agency, the government disposed of 409 assets, generating 2.6 trillion won ($1.95 billion) in proceeds. These sales accounted for about 40% of the planned divestitures, aimed at offsetting the impacts of a downturn in the property market. State-run enterprises also achieved 800 billion won in savings from cost-cutting measures. The Ministry of Economy and Finance has committed to continuing efforts to improve management efficiency in the public sector.

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