Abstract ▼ AI-Helper

Public enterprises is a mass enterprise group which takes 17% of GDP of Korea and it hired around 75,000 person. The traits of public enterprises pursuits publicness and profits of operation together, and produce public goods and services to citizens by harmonize these opposite values. Explaining ...

Public enterprises is a mass enterprise group which takes 17% of GDP of Korea and it hired around 75,000 person. The traits of public enterprises pursuits publicness and profits of operation together, and produce public goods and services to citizens by harmonize these opposite values. Explaining theories of public enterprises systematically this paper analyzes the reality of operation of this firms and proposes several recommendations to solve problems which these organizations faced. By analyzing dats of the information disclosure system of public enterprises from 2007 to 2011, this paper discovered that the debt ratio in total assets increased sharply since 2007 and operating profits did not increased continuously though profits increased continuously and the number of the hired decreased continuously since 2007 under the reason of reform. By analyzing the reality of operation, this paper proposes three recommendations; frist, rationalize managerial system of public enterprise. second, guarantee the autonomy of runs business of the organization. third, intervene aggressively the allocation of operating profits by the government to control moral hazard of the firms.

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