Lawmaker criticizes state-run companies for paying excessive bonus
By Lee Min-hyung
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Rep. Chun Soon-ok
Three state-run companies paid massive bonuses totaling almost 150 billion won ($134 million) to their employees during the administration of former President Lee Myung-bak, according to an opposition party lawmaker.
Rep. Chun Soon-ok of the New Politics Alliance for Democracy (NPAD) said Monday that the three companies - the Korea National Oil Corporation (KNOC), Korea Gas Corporation (KOGAS) and the Korea Resources Corporation - paid 70 billion, 52 billion and 23 billion won respectively from 2008 to 2012 in bonus payments to their employees. According to Chun, the figure was compiled after analyzing data from the state-run firms’ managerial evaluation during the cited period.
Three former CEOs of the firms received a total of 1.5 billion won ($1.34 million) in bonuses.
During the Lee Myung-bak administration, state-run energy companies spent millions of dollars to develop energy resources abroad to cope with the nation’s deficiency.
But most of the firms failed to secure enough resources, further aggravating their financial condition. They suffered from snowballing debt during the cited period following blind investment.
Chun criticized the firms for making bad investments in response to the then President Lee’s instructions, and called the bonuses “a reward for complying with the Lee Myung-bak administration’s terms.”
“Employees, who received excessive bonus and made irresponsible investment, should face trial on malfeasance charges. Other companies will follow suit if they are not punished. It is a waste of the taxpayers’ money,” Chun told The Korea Times.
KNOC invested some 9 trillion won ($8 billion) in foreign firms such as Savia Peru, and Dana and Harvest Energy from 2009 to 2011. Despite its failed investment, the payment rate of the bonuses saw a sharp increase from 256 to 400 percent during the period, according to Chun.