Management Innovation of Quasi-Governmental Agencies in Korea

Abstract

Many quasi-governmental agencies operate under the umbrella of the Korean government. Their semi-official status derives from the receipt of government contributions, commissions or subsidies. There are literally hundreds of such organizations whose sole objective is to operate in support of the Korean people, yet they have a poor public image. They are often portrayed in the media as unaccountable and inefficient. They have been criticized by civil society because many quasi-governmental agencies have operated without comprehensive evaluation and monitoring systems. External criticism of the agencies has manifested itself in a demand for management innovation within these agencies. Indeed, the push for reform has expanded to include the governmental agencies as well as the quasi-governmental agencies overseen by the Korean government. In response to the reform movement, the Ministry of Planning and Budget (MPB) has stated their objective to overhaul the management of quasi-governmental agencies. In reality, however, the Ministry can only make recommendations to the agencies due to a lack of regulatory authority over such agencies. The purpose of this article is to review the overall status of quasi-governmental agencies in Korea and the management challenges they face, to assess similar cases from overseas, and to examine possible measures for more efficient management of these quasi-governmental agencies.