Korea Water Resources Corp. (K-water) will continue pushing ahead with 14 tasks to enhance efficiency of management through the introduction of an advance system. By 2012, K-water will slash person power and introduce a performance-based pay system to make it one of the most respectable state-run corporations.
In an interview with Korea IT Times, Kim Keun-ho said, "Last year, K-water played a leading role in introducing effective and advanced management systems to state-run corporations through curtailment of person power and organizational reform." Kim Keun-ho went on to say, "Moreover, K-water has successfully propelled a project to restore the four rivers. The Han River, Nakdong River, Geum River and Yeongsan River, the nation's biggest project, and Gyeongin Ara Canal Way project."
K-water will also activate communications between management and labor this year through the conclusion of a rational collective agreement, operation of labor-management council for mutual survival, and labor-management joint programs."Along with this, K-water will persistently push for cost-saving policies through outsourcing of non-core businesses, the introduction of more mini cars instead of passenger cars, and a five percent cut in operational expenses," said Kim Keun-ho.
Managerial reform in four sectors
In particular, K-water will make a strong push for managerial reform in the four sectors of business and technology, organization and personnel affairs, leadership and finance, which will improve the quality of management and strengthen competitiveness. "Therefore, we will find new business models for next-generation growth and develop core technologies. More concretely, we will develop water-specialized energy and lead low-carbon green growth, while challenging future-oriented overseas projects," stated Kim.
Related to this, K-water will secure practicable core technologies and find out IT-based technology tasks in keeping with an era of fusion technology. "Through reform of organization and personnel affairs, K-water will enhance corporate competitiveness and strengthen the K-water community, as well as foster new talents who will lead the management for the future," proclaimed Kim.
In line with this, K-water will reform development of human resources and management system in such a way as to give preferential treatment to those who work hard and achieve high-level business results. "Moreaover, K-water will introduce an advanced system for effective management in keeping with changing managerial environment and begin smooth communication between departments," said Kim.
The followings are excerpts from the interview with Kim Keun-ho, CEO of K-water.
Q: Would you comment on the managerial results in 2009 and the projects for 2010
A: We have strengthened our role for water-related state projects. In particular, it has successfully carrying out the Four Major River Restoration project and the Gyeongin Ara Canal Way project." We also expanded investment in overseas projects and green-energy projects to secure future growth engines.
Under the understanding and cooperation with executives and staff members, it lowered the wages for new recruits by 13.4 percent for the first time among public corporations, taking an initiative to enhance efficiency of management. Based on this, we could recruit 198 employees, 265 young interns and about 620 helpers last year.
In 2010, we plan to explore more overseas markets and actively participate in renewable energy projects, including wind power and solar energy projects, to help the nation achieve green growth centering on low energy and high efficiency.
Q: Would you explain K-water's reform plans related to the introduction of an advanced system
A: First, we will actively push for leadership reform to help senior officials faithfully carry out their leading role in various reform projects.
To achieve sustainable growth, we will also make a strong push for financial reform. For instance, we will expand profit sources through expansion of strategic sales, cost-saving campaign, and powerful and effective investment readjustment.
Q: You have received best grade on appraisals from heads of public corporations last year. What is your secret
A: I think it was possible because both executives and employees joined forces and made all-out efforts despite difficult conditions, including restructuring of state-run companies. Stressing the K-water's public role, I froze prices of water for the fifth consecutive year and exerted my best efforts to stabilize commodity prices and stabilize citizens' daily life.
For efficiency of management, we reduced expenses by KRW97.1 billion through cost-saving campaign and reduced person power by 475 employees. Through close cooperation between management and labor, we sought effective management and made the best efforts to fulfill social responsibility as a state-run corporation.
