Salaries and bonuses for executives at state-run enterprises contined to rise last year despite losses and snowballing debt.
The debt of 295 state-run institutions and enterprises reached 493.4 trillion won ($447.8 billion) in 2012, up 7.5 percent from a year before, according to a public filing by the Ministry of Strategy and Finance on Tuesday.
Their debt ratio surpassed 200 percent on equity capital of 237.8 trillion won.
Yet with assets of 731.2 trillion won, this marks the first time in four years that assets exceeded debt.
The Finance Ministry also noted that the rate of debt increase slowed as the government strengthened its management over its organizations.
Debt increased 17.9 percent in 2010, and 15.6 percent in 2011.
However, the outstanding debt of Korea would reach some 1 quadrillion won after taking into account government debt of 480.4 trillion won after its supplementary budget plans.
Korea Land and Housing Corp had the biggest debt of 138.1 trillion won last year, accounting for almost 40 percent of all debt by state-run companies.
Korea Electric Power Corp., Korea Deposit Insurance Corp., Korea Gas Corp. and Korea Expressway Corp. followed LH as having the most debt among public enterprises, according to the filings.
The KDIC incurred the highest losses of 3.3 trillion won, followed by KEPCO with losses of 3.1 trillion won and KORAIL, the rail operator that was involved in the failed Yongsan property development project, with losses of 2.8 trillion won last year.
Meanwhile, annual salaries, including bonuses for top executives of public institutions, increased by 4.3 percent to 160 million won on average last year.
Employees’ salaries at public institutions increased an average of 2.6 percent to 62 million won in 2012.
Heads of state-run conglomerates received the highest annual salary of more than 230 million won on average, while top executives of quasi-state organizations, which are private companies but under state supervision and management, received an average salary of 158 million won last year.
Most of the high earners last year were from state-run financial companies, the Finance Ministry noted.
Top executives of Korea Finance Corp received an average of 501 million won last year, up about 9 percent from a year ago, followed by some 493 million won for Korea Investment Corp.
By Park Hyong-ki (
hkp@heraldcorp.com)
