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A Remedy for the Problems in the Laws on Public Institutions

  • DONG-A LAW REVIEW
  • 2015, (68), pp.25-47
  • Publisher : The Institute for Legal Studies Dong-A University
  • Research Area : Social Science > Law

Young Woon Kim 1

1지방공기업평가원

Accredited

ABSTRACT

There have been nationwide interests in the management of public institions in Korea because their number and variety are greater than those in other OECD member nations. Such interests have been changed into a key national agenda to innovate public institutions these days as their weak performances, lax management and loose work ethicks were revealed publicly. Specifically, Korean government has focused on both finding out and eliminating their irresponsible practices and forcing them to innovate themselves by using the powerful tools the government hold, for example, the mandatory performance evaluation and incentive system. Though the national drive is a step in the right direction, this study questions if the government may overlook the importance of diagnosing the status quo of overaching laws on public institutions. Given that the governmental management of public institutions is always based on the laws, it would be helpful to review the basic law system to manage the public institutions in searching for the fundamental remedy for their alleged illness. Based on two theories, principal-agent theory and new public management theory, this study tries to understand the law system on the public institutions management comprehensively and analyze the appropriateness of the goal and contents of governmental management of the institutions on the relevant laws. This study argues that while it is necessary for the government to intervene in the operation of public institutions to secure the fulfillness of public interests, the intervention should not restrict the minimum autonomy required to acquire the efficiency expected as independent public entities. It also suggests that for the balanced fulfillment of both public responsibility and efficiency, the differentiated management strategies for each type of the instititutions are desirable, holding the overarching management principles as they are in the laws. The rational typology of public institutions is necessary before exploring the strategies, of course.

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