Lessons from SOE Management and Privatization in Korea

Abstract

This paper suggests following strategies for the success of privatization. (1) Utilize the audit office in finding inefficient management cases so that the general public understands the need of a privatization. (2) Reform the reformer first, and create a driving force that specializes in reform. (3) Set a deadline for each step towards privatization (4) If you cannot private a whole SOE, privatize function by function in each SOE. However, for a privatization to be successful, the most important factor is the political commitment.