South Korea plans to reduce some 4 percent of jobs at state-run organizations by 2025

South Korea plans to reduce some 4 percent of jobs at state-run organizations by 2025, the finance ministry said Monday, in line with efforts to tighten its belt amid the economic slump.

Under the plan, the country will eliminate 17,230 jobs at public organizations, according to the Ministry of Economy and Finance. It marks the first job cut scheme for such institutions since 2009.

A separate batch of 4,788 workers will be reassigned with new duties over the period, it added.

The ministry said the measure will not affect current employees and added that the reduction will be based on retirement instead of lay-offs.

The country will also make efforts to reduce any impact on new recruitment, it added.

The finance ministry said the plan would help the country cut up to 760 billion won (US$591 million) in costs annually.

Korea Racing Authority, which manages horse racing, and Korea Coal Corp. plan to reduce or relocate 11.7 percent and 21.2 percent of their jobs, respectively, the ministry data showed.

Korea Railroad Corp. and Korea Electric Power Corp. plan to adjust 2.2 percent and 2.1 percent of their workforces, respectively, it added.

Last month, the ministry said it will also have state-run firms sell assets worth 14.5 trillion won by 2027 in line with efforts to improve their fiscal health.

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