20 public firms clinch top grades in gov’t grading

[THE INVESTOR] Twenty public companies and state-run agencies were recognized for their efforts to revamp balance sheets in the government-led annual management assessment, the Finance Ministry said on June 16.

Of the 116 institutions evaluated by the test’s criteria, the number of A-grade institutions increased from 15 selected a year earlier, followed by 53 B-grade companies and 30 C-grade, the ministry said.

The 20 leading companies included the Incheon International Airport Corp., Korea Electric Power Corp., National Health Insurance Service and National Pension Service.

Meanwhile, four companies -- the Korea Resources Corp., Korea National Oil Corp., Korea International Broadcasting Foundation and Korea Infrastructure Safety and Technology Corp. -- received the lowest grade E evaluations.

The government grades public firms annually to check their financial status, as well as the implementation of government requirements like the wage peak system.

Based on the results, the institutions with grades of A, B, and C will be rewarded special bonuses, whereas the heads of the lower-graded companies will receive warnings, said the ministry.

The 116 public operations posted a combined net profit of 12.5 trillion won ($10.7 billion) last year, a rise from 11.3 trillion won a year earlier.

Their debt fell to 490.5 trillion won from 507.2 trillion won over the cited period, with their debt ratio reaching 191 percent from 212 percent.


By Jung Min-kyung (mkj1105@heraldcorp.com)