On September 22, the Ministry of Economy and Finance (MOEF), together with the Organisation for Economic Co-operation and Development (OECD), held the 3rd Korea-OECD Seminar on Corporate Governance of State-Owned Enterprises (SOEs) at the OECD headquarters in Paris, France.
* Since 2023, Korea and the OECD have co-hosted the forum annually, bringing together public institution policy officials from OECD member countries and beyond to share policy trends and draw implications for corporate governance of state-owned enterprises.
The event was attended by the Director General for Public Institutions Policy at MOEF, the Deputy Ambassador at the Permanent Representative of Korea to the OECD, the Deputy Director of the OECD Directorate for Financial and Enterprise Affairs, as well as public institution policy officials from 30 countries, including both OECD members and non-members. Participants presented policy trends and case studies on three topics* related to SOEs governance and discussed future directions for advancement.
* (1)The role of SOEs in advancing public policy objectives; (2)Sustainability, responsible business conduct and the role of the state and SOEs; and (3)Embracing digitalization to enhance policy frameworks for disclosure and performance monitoring in SOEs.
The Korean delegation expressed its appreciation for the OECD’s efforts to develop international guidelines on SOEs governance frameworks and to explore and disseminate best practices. It also stated that, guided by the principles of “autonomous, responsible business conduct, and enhanced transparency”, Korea, as a leading country in SOEs governance, will continue to contribute to international discussions aimed at bolstering the sustainability of SOEs.
In the first session, which focused on the proactive role of SOEs, Korea presented its efforts to adapt to changing policy environments, including the restructuring of evaluation frameworks to drive breakthrough innovation in listed public enterprises, the management of workforce deployment and investment execution for advancing national priorities, as well as the enhancement of safety management, promotion of AI utilization by SOEs, and expansion of ESG management. In particular, Korea placed special emphasis on its commitment to reinforcing safety management in SOEs, with the goal of realizing “public workplaces where life and safety come first”.
In the second session, which addressed social responsibility and sustainability such as enhancing safety management, Korea presented the current status of ESG management in SOEs along with its plan to establish ESG guidelines. Korea also introduced key elements of the SOEs safety management enhancement measures announced at the Ownership Steering Committee on September 1, including safety management guidelines and a safety rating system for SOEs, provisions for the dismissal of heads of institutions responsible for serious industrial accidents, strengthened evaluation and disclosure of safety-related management, and the application of AI to safety management.
In the third session, which dealt with the scientific governance framework for SOEs, Dr. Minsang Yi of the Korea Institute of Public Finance presented Korea’s approaches to SOEs governance utilizing digital technologies, including information disclosure and electronic reporting, performance evaluation through computer networks, and customer satisfaction surveys. He also showcased best practices of digital technology utilization in Korean SOEs, such as an in-house AI system at Korea Southern Power, digital twin dam management at Korea Water Resources Corporation, and data- and AI-based corporate analysis at the Korea Credit Guarantee Fund.
Going forward, MOEF plans to utilize the discussions held at this event to develop SOEs governance policies that align with global standards, and will continue to collaborate with OECD member countries by sharing policy cases and best practices on SOEs governance.
Please refer to the attached files.
