A workforce reduction will be inevitable in South Korean public sector as government continues to reform public entities to enhance efficiency, a top policymaker said Tuesday.
"Given that the public sector makes up a significant part of our economy, we cannot weather current difficulties without making it competitive," Vice Finance Minister Bae Kook-hwan said.
Bae added that the process will be carried out over the next three to five years, both through natural and voluntary retirement, reported Xinhua.
South Korea has a total of 305 public enterprises which hold combined budget of 338 trillion won (233 billion U.S. dollars) in 2008 and employ over 260,000 workers as of the end of 2007.
Since his inauguration in February, President Lee Myung-bak has pushed public sector reform accusing the inefficient management and wasteful spending of taxpayer money.