Pay for Performance in Government: The Case of South Korea
Pay for performance refers to a system of employee payment that links individual pay to measures of individual performance.
This paper discusses the features of the pay for performance (PFP) system in the Korean government. With the New Public Management (NPM) initiative, governments worldwide have adopted innovative approaches from the private sector to enhance performance in the public sector. To survive the Asian financial crisis in 1997, South Korea (hereafter referred to as Korea) has also implemented various administrative reforms to increase competitiveness and reduce inefficiency in the public sector. As part of these efforts, the Korean government has implemented a wide range of performance-based management systems, including evaluation of government performance and personnel management.
Enhancing government performance requires improving the performance of individual officials. Before...
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