An Exploratory Study on Changes in the Policy Environment and the Performance Evaluation System of Public Enterprises

The Purpose of this study is to analyzed how public enterprises respond to the conflicting characteristics of public and corporate characteristic in accordance with government policies and environmental changes. The public enterprise management evaluation system has changed according to the government's political ideology, national agenda, and goals, and has been reflected by emphasizing mixed values such as autonomy, efficiency, and publicness. This is an institutional effort to improve management efficiency and responsibility of public enterprises, and the importance of performance evaluation indicators is linked to institutional change. However, although performance evaluation is a necessary condition for policy changes and changes in public enterprise-related policies, it has the limitation that it is difficult to focus on specific areas to pursue multiple goals within limited resources in order to balance between carrying out original projects and achieving the government's national goals. When new indicators are added to public enterprise management evaluation indicators, it can be seen that important policy perspectives are reflected. However, if the importance of a specific indicator is low, the incentive for public enterprises to change is weak, making effective change difficult. In addition, as the number of performance evaluation indicators increases, the direction a public enterprise is heading may become unclear. In conclusion, the solution requires the use of simple and differentiated indicators suited to the characteristics of public enterprises. In other words, since public enterprises provide services to various classes, centralization of indicators is required, and the effects of the private and public sectors must be approached separately.