Events
Name | organizer | Where |
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MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK | MBCCI | London UK Goodman LLC |
NEWS

Two arrested in Mongolia for illegal transportation of 500 kg of deer antlers www.xinhuanet.com
ULAN BATOR, July 22 (Xinhua) -- Mongolian police have arrested two men for the illegal transportation of 500 kilos of deer antlers from Khuvsgul province to the capital city of Ulan Bator, the country's National Police Agency (PLA) said Monday.
The two suspects were arrested last week while illegally transporting of 500 kilos of deer antlers at the 22nd checkpoint passing through the Emeelt road in the capital city's Songinokhairkhan district, the NPA said in a statement.
The case is under investigation, it added.
Under Mongolian law, a person convicted of poaching and killing endangered wild animals will be fined at least 10 million Mongolian tugriks (about 3,800 U.S. dollars) or punished by imprisonment of at least two years.
There are around 1,980 deers in Mongolia, according to a survey conducted in 2006.

Rio Tinto's Mongolia copper problems highlight frontier country risks: Russell www.business.financialpost.com
LAUNCESTON (Reuters) — Looking for a long-term bullish signal for copper? Then look no further than Rio Tinto’s struggles with the Oyu Tolgoi mine and expansion project in Mongolia.
The latest news about the giant copper-gold project is that the production from the underground expansion will be delayed by more than a year to between May 2022 and June 2023, and that costs have ballooned by another $1.9 billion.
The capital cost of the project is now estimated at $6.5 billion to $7.2 billion, up from an original estimate of $5.3 billion.
Rio Tinto, through its Turquoise Hill Resources subsidiary, owns 66% of the Oyu Tolgoi mine, which could become the world’s third-largest copper mine by production in 2025 under the current development plan.
What’s becoming more of an issue for the mine is that the Mongolian government owns the other 34%, and it appears that there is mounting disquiet in Ulaanbaatar that the landlocked country between Russia and China is getting a dud deal.
Mongolia’s parliament is set to approve measures that would terminate the 2015 agreement on the Oyu Tolgoi underground expansion, seeking to bring forward the time when it will receive dividend payments from the project, demand more transparency on copper prices and push for Rio Tinto to build a power plant.
Currently, Mongolia will only start to receive dividends around 2041, when its share of the debt for the project is repaid.
“For now, the Oyu Tolgoi agreement is not benefiting Mongolian citizens,” Battumur Baagaa, a member of the parliamentary working group scrutinizing the project, told Reuters. “It is good to attract foreign investment but that doesn’t mean foreign investment should only benefit the foreign side.”
The sentiment expressed in the above quote goes to the heart of Rio Tinto’s Mongolia problem, and indeed to any mining company considering a major investment in a developing, or frontier market.
BALANCING RISKS
The Oyu Tolgoi project is a country-changer for Mongolia, with its capital budget making it the biggest ever undertaken in the country, but it’s also more than half of the annual gross domestic product (GDP) of $13 billion.
By comparison, the $200 billion of spending on eight liquefied natural gas (LNG) projects in Australia over the past decade, the biggest investment in a single industry in the country’s history, represented about 17% of annual GDP.
A country such as Mongolia cannot afford the upfront cost for its stake in a project the size of Oyu Tolgoi, so it pays for its share by deferring dividends.
While this sounds like a good solution in theory, it also means that the government, and the populace, see the mine being built and start operations, but they don’t necessarily see the benefits flowing to them.
Rio Tinto makes the point on its website that from 2010 to the third quarter of 2018 it has spent “$8.3 billion in-country in the form of salaries, payments to Mongolian suppliers, taxes, and other payments to the government.”
The question is whether this is enough, and the answer the Mongolian authorities appear to be giving is no.
The obvious risk for Rio Tinto is that it spends billions of dollars on an investment that takes a longer period to deliver returns, or even in the worst case the asset is seized by the state.
This situation is increasingly being confronted by resource companies around the globe.
Mozambique and Tanzania are both keen to see international oil and gas companies spend billions of dollars developing an LNG industry in the east African neighbors.
But will the authorities remain satisfied with the terms that were initially struck when it becomes clear that the benefits to the government coffers will take some time to flow?
Increasingly, valuable deposits of commodities are in jurisdictions with higher country risk, but it doesn’t appear that project developers factor in the likelihood of having to renegotiate terms once vast amounts have already been spent.
It’s always going to be a fine balance between a company assessing how much of the value of the project it can afford to surrender to the host country, and the government of that country working out how hard they can squeeze before the company walks away and your investment reputation is severely damaged.
For the market, the risk is that much of the new supply of several key resources is likely to come from countries such as Mongolia, and the question is how likely is it that this resource is actually developed and delivers to plan. (Editing by Christian Schmollinger)
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International military horse racing event to take place in Mongolia www.montsame.mn
Ulaanbaatar /MONTSAME/. The ‘Aravt’ international military horse racing event is to take place for the first time in Mongolia between August 3 and 8.
Organized in the framework of the International Army Games 2019, the event will have two stages at the General Training Center of the Armed Forces located in Tavan Tolgoi. With the military personnel of China and Zimbabwe as spectators, soldiers of eight countries such as Mongolia, Russia, Kazakhstan, and Kyrgyzstan will be competing in the horse racing event.
The team of the Mongolian Armed Forces is currently preparing for the event, while the team of Russia has recently finished their training at home and have arrived in Mongolia. The ‘Aravt’ international military horse racing event is unique for having the military personnel of eight countries race on Mongolian horseback.

Projects worth EUR 12 million to be implemented www.montsame.mn
Ulaanbaatar /MONSTAME/ Within the Financial Cooperation Agreement between Mongolia and the Republic of Austria, the projects titled ‘Infrastructure Development - Songinokhairkhan’ and ‘Infrastructure Development – Bayanzurkh, Darkhan, and Selenge’ will be implemented from 2019 to 2021with a soft loan worth EUR 12 million from Austria.
On July 19, an agreement on implementation of the projects was signed by S.Magnaisuren, State Secretary of the Ministry of Construction and Urban Development and Alfred Felder, CEO of the contractor – Austria’s Zumtobel Lighting GmbH.
Under the projects, infrastructure development works will be carried out in the highly populated areas with poor infrastructure development including Songinokhairkhan and Bayanzurkh districts, Darkhan city, and Selenge aimag and streetlights with the latest energy efficient and bright lamps will be installed in ger areas of the remote bags and micro-districts.

Chandrayaan-2: India set to re-attempt Moon mission launch www.bbc.com
India is set to re-attempt the launch of its second lunar mission a week after it halted the scheduled blast-off due to a technical snag.
Chandrayaan-2 will be launched at 14:43 local time (09:13 GMT) on Monday, space agency Isro said.
It added the spacecraft was ready "to take a billion dreams to the Moon - now stronger that ever before".
The space agency hopes the $150m (£120m) mission will be the first to land on the Moon's south pole.
The countdown on 15 July was stopped 56 minutes before launch after a "technical snag was observed in [the] launch vehicle system", according to Isro. Indian media have reported that a leak from a helium gas bottle in the cryogenic engine of the rocket was to blame.
Isro thanked people for supporting the mission despite the delay.
What is this mission all about?
India's first lunar mission in 2008 - Chandrayaan-1 - did not land on the lunar surface, but it carried out the first and most detailed search for water on the Moon using radars.
Chandrayaan-2 (Moon vehicle 2) will attempt a soft landing near the little-explored south pole of the Moon.
The mission will focus on the lunar surface, searching for water and minerals and measuring moonquakes, among other things.
India is using its most powerful rocket, the Geosynchronous Satellite Launch Vehicle Mark III (GSLV Mk-III), in this mission. It weighs 640 tonnes (almost 1.5 times the weight of a fully-loaded 747 jumbo jet) and at 44 metres (144ft) is as high as a 14-storey building.
The spacecraft weighs 2.379kg (5.244lb) and has three distinct parts: an orbiter, a lander and a rover.
The orbiter, which has a mission life of a year, will take images of the lunar surface, and "sniff" the tenuous atmosphere.
The women scientists who took India into space
Israeli spacecraft crashes on Moon
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The lander (named Vikram, after the founder of Isro) weighs about half as much, and carries within its belly a 27kg Moon rover with instruments to analyse the lunar soil. In its 14-day life, the rover (called Pragyan - wisdom in Sanskrit) can travel up to a half a kilometre from the lander and will send data and images back to Earth for analysis.
"India can hope to get the first selfies from the lunar surface once the rover gets on its job," Dr K Sivan, the Isro chief, said before the first launch attempt.
The launch is only the beginning of a 384,000km (239,000-mile) journey - Isro is hoping the lander will touch down on the Moon on 6 or 7 September.
The space agency has chosen a circuitous route to take advantage of the Earth's gravity, which will help slingshot the satellite towards the Moon. India does not have a rocket powerful enough to hurl Chandrayaan-2 on a direct path.
"There will be 15 terrifying minutes for scientists once the lander is released and is hurled towards the south pole of the Moon," Dr Sivan said.
He explained that those who had been controlling the spacecraft until then would have no role to play in those crucial moments. The actual landing, he added, was an autonomous operation dependent on all systems performing as they should. Otherwise, the lander could crash into the lunar surface.
Earlier this year, Israel's first Moon mission crash-landed while attempting to touch down.
Who is on the team?
Nearly 1,000 engineers and scientists have worked on this mission. But for the first time, Isro has chosen women to lead an interplanetary expedition.
Two women are steering India's journey to the Moon. While programme director Muthaya Vanitha has nurtured Chandrayaan-2 over the years, it will be navigated by Ritu Karidhal.
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National currency in circulation reaches MNT 937.1 billion www.montsame.mn
Ulaanbaatar /MONTSAME/ The money supply reached MNT 20.2 trillion at the end of June 2019, showing a decrease of 0.3 percent from the previous month, while it shows an increase of MNT 16.7 percent from the same period of previous year.
At the end of June 2019, the national currency in circulation reached MNT 937.1 billion, showing a decrease of MNT 2.6 billion or 0.3 percent from the previous month, while it shows an increase of MNT 6.0 billion or 0.6 percent from the same period of previous year.
At the end of June 2019, the amount of outstanding loan to entities, enterprises and citizens amounted MNT 18.2 trillion, increased by 1.3 percent from the previous month and by 18.3 percent from the same period of previous year.
At the end of June 2019, the non-performing loans in banking system amounted MNT 1.9 trillion, showing a decrease of 1.3 percent from the previous month while it shows an increase of 45.3 percent from the same period of previous year. The non-performing loans in the banking system makes up to 10.5 percent of total loans, showing an increase of 1.9 percentage points from the same period of previous year.
In the first half of 2019, 377.0 million pieces of securities worth of MNT 108.5 billion were traded at the national stock market, which is increased by 37.7 percent compared to the same period of previous year.
In June 2019, 34.2 million pieces of securities worth of MNT 21.9 billion were traded at the national stock market, which is increased by 65.8 percent compared to the same period of previous year.
Monthly average exchange rate of MNT to US dollars announced from Central Bank of Mongolia in June 2019 was MNT 2 654.47 to one USD, which is depreciated by 9.1 percent from the same period of previous year and by 0.4 percent from the previous month.

Mongolia receives 247.3 thousand foreign tourists in the first half of 2019 www.montsame.mn
Ulaanbaatar /MONTSAME/ In the first half of 2019, 2.8 million passengers (double counting) have crossed the border of Mongolia, increased by 55.5 thousand or 2.0 percent compared to the same period of previous year.
In the first half of 2019, 247.3 thousand foreign passengers have entered, increased by 9.2 thousand or 3.9 percent compared to the same period of previous year. Of those foreign passengers, 86.4 percent were stayed up to 30 days, 11.6 percent were stayed for 90 days or more, 2.0 percent were stayed for 30 to 90 days.
By the purpose for entry of the foreign passengers, 217.4 thousand or 87.9 percent entered for tourism purposes, increased by 14.8 thousand or 7.3 percent compared to the first half of 2018, and there were 29.9 thousand or 12.1 percent entered for business, study and permanent residence purposes.
From the first half of 2018, the number of tourists from the Socialist Republic of Viet Nam is increased by 191 or 86.4 percent, tourists from People's Republic of China, Hong Kong Special Administrative Region increased by 558 or 45.6 percent, tourists from Malaysia increased by 190 or 35.1 percent, tourists from the Republic of Austria increased by 119 or 33.0 percent, whereas tourists from the Republic of Turkey decreased by 698 or 52.3 percent, tourists from Ukraine decreased by 121 or 16.4 percent and tourists from Canada decreased by 132 by 8.4 percent.
Among all the inbound foreign passengers, 36.4 percent were Chinese, 24.3 percent were Russian, 12.1 percent were South Korean, 3.7 percent were Japanese, 3.4 percent were American, 2.4 percent were Kazakhs and 17.7 were other nationalities.

Revenue of rail and road transport increases www.montsame.mn
Ulaanbaatar /MONTSAME/ In the first half of 2019, 33.2 million tons of freight and 90.9 million passengers (double counting) were carried in total by all type of transport. Compared to the same period of previous year, the carried freight decreased by 0.5 percent and the number of carried passengers decreased by 10.5 percent.
The revenue from all type of transport reached MNT 846.4 billion, increased by 8.9 percent compared to the same period of previous year.
In reference period, 20.0 million tons of freight and 89.2 million passengers (double counting) were carried by road transport. The revenue from road transport reached MNT 315.9 billion, increased by 2.7 percent compared to the same period of previous year.
In reference period, 13.2 million tons of freight and 1.2 million passengers (double counting) were carried by railway transport. Compared to the same period of previous year, carried freight increased by 8.0 percent, whereas the number of carried passengers decreased by 3.2 percent.
In June 2019, 2.2 million tons of freight and 249.5 thousand passengers transported through railway transport. The carried freight increased by 0.7 percent and the number of passengers increased by 17.5 percent compared to the previous month.
In the first half of 2019, the revenue from railway transport reached MNT 335.6 billion, increased by 38.2 percent compared to the same period of previous year.

Vice President of China visits Mongolia www.montsame.mn
Ulaanbaatar /MONTSAME/ On the occasion of the 70th anniversary of the establishment of diplomatic relations between Mongolia and the People’s Republic of China, Vice President of China Wang Qisan, paid a visit to Mongolia at the invitation of Prime Minister U.Khurelsukh on July 10-12.
On July 10, Vice President Wang Qisan paid a courtesy call on President Kh.Battulga, held meetings with the Prime Minister U.Khurelsukh and the Speaker of the State Great Khural G.Zandanshatar, discussing issues of bilateral cooperation and joint projects being implemented within the frames of celebration of the 70th anniversary of the establishment of diplomatic relations between Mongolia and China.
At the meeting with Prime Minister, Mr. Wang Qisan noted that China has always respected state sovereignty, territorial integrity and development path of Mongolia and expressed interest in mutually beneficial cooperation in politics, economy, humanity and inter-territorial cooperation.
The parties emphasized that in the past 70 years the bilateral relations faced many challenges and the countries reached Comprehensive Strategic Partnership as a result of mutual efforts, expressing willingness to focus on enrichment and sustainable development of the strategic partnership.
The sides also highlighted that a number of high level visits and projects covering all fields of bilateral cooperation are being implemented within the framework of celebration of the 70th anniversary of diplomatic relations.
Prime Minister U.Khurelsukh mentioned that the Vice President’s visit is coinciding with the National Naadam holiday and invited to visit the celebration ceremony.
Vice President of China Wang Qisan and PM U.Khurelsukh attended the signing ceremony of construction project agreement for the Development Center for Children with Disabilities. Moreover, cooperation agreements between Erenhot city of Inner Mongolia and Zamyn-Uud soum of Dornogobi aimag, Darhan Muminggan United Banner of Baotou city of Inner Mongolia and Sainshand city of Dornogobi aimag were signed in their presence.
At the meeting with Speaker G.Zandanshatar, Mr. Wang Qisan emphasized the importance of reaching the full potential and enriching the Comprehensive partnership with new content. He touched upon the topics of strengthening mutual political trust, promoting relations between the legislative bodies, exchanging experience in governance and legislation, achieving better results in trade and economic relations, enhancing the relationship between people and organizations and activating humanitarian exchange.
Vice president also noted that aligning the development strategies within the ‘Belt and Road’ program will help gain new achievements and benefit both countries.
During the meeting, Speaker emphasized the importance of elimination of trade and non-trade barriers in trade and economic cooperation. Mr. G.Zandanshatar also requested the Vice President to take into account the possibilities to finance the establishment of free economic zone in Zamyn-Uud and Erenhot and construction of Altanbulag-Zamyn-Uud international highway through development loan and concession from the swap line between the People's Bank of China and Bank of Mongolia.
During his visit, Mr. Wang Qisan visited the National Museum and attended the opening ceremony of Naadam festival.
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Strengthening Human Resources of the Civil Service www.montsame.mn
Mongolia is implementing Civil service law from the beginning of this year. Experiences of the other countries with advanced Civil service is exampling for us. The Cabinet Secretariat of Mongolia and the Ministry of Personnel Management of the Republic of Korea signed a Memorandum of Understanding on March 14, 2019. The parties will cooperate on policy planning and implementation of innovation in the field of public human resource management including recruitment, performance, and compensation; public policy on human resource development to strengthen meritocracy and professionalism of civil servants; promoting diversity in public service; information systems for public personnel administration; Senior Civil Service system; ethics and discipline in the civil service from 2019-2021. Some activities will be carried out and supported by the UNDP project “Towards a Professional and Citizen centered Civil Service in Mongolia”.
Before the MoU signing ceremony, the Minister of Mongolia, Chief Cabinet Secretary Luvsannamsrai Oyun-Erdene and Minister of Personnel Management of the Republic of Korea Hwang Seo-chong exchanged their views on the human resource management in the civil service.
Luvsannamsrai Oyun-erdene: What challenges do you face in the personnel management of the civil service? What are the key issues to be addressed over the next 3 years?
Hwang Seo-chong: The most critical issue at stake for public personnel management in Korea is to promote civil servants to engage in ‘proactive public service’.
The Korean society is challenged by ever-increasing global competition and demographic changes driven by aging population. In order for Korea to continue its growth and development under these unfavorable conditions, it is essential for the government to provide necessary regulatory reforms and proactive field response.
Hence, we seek to promote a public service culture in which civil servants will actively perform their duties and take self-initiatives to abolish unnecessary regulations and mundane practices. By punishing civil servants for non-initiating and low risk-taking behaviors that puts citizens at inconveniences, and by providing civil servants taking proactive and self-initiating behaviors with rewards and incentives, our government is committed to fostering a public service culture for ‘proactive governance’.
Moreover, in order to adequately cope with changes in administrative environment, our Ministry is preparing a policy innovation which aims to reform human resource (HR) policies overarching the entire public service life-cycle from the entry into public service, employment period and to the retirement. This means that we will overhaul HR policies that are outdated and fall behind current policy and socioeconomic environment. We will create a virtuous cycle of public service HR management where high caliber talents 1) enter civil service through a fair recruitment system, 2) continue capacity building and accrue professional expertise and get rewarded for their skills and performance, and 3) contribute their know-hows and expertise attained from years of public service to the society after retirement.
Luvsannamsrai Oyun-erdene: How does Korean government deal with ‘poor performance, non-initiating, low risk-taking, hanging around with low productivity but without any mistakes’ civil servants? What kind of incentives do you provide for proactive public service?
Hwang Seo-chong: When civil servants due to lack of initiation or unwillingness to perform their duty cause violation of rights and interests of citizens and/or damage to national finances, we call it ‘passive public service’. These passive (non-initiating, low risk-taking) behaviors of civil servants are considered barriers to citizen-centered public services by delaying administrative process. Passive behaviors may be a temporary solution for an official faced with a challenge, but in the long run, it can lead to public distrust towards government and widen the gap between the laws and the reality.
In order to deal with civil servants demonstrating passive behaviors in performing duty, our Ministry has devised a scheme to punish such behaviors via disciplinary actions or warnings depending on the severity of the issue and the manner in which it was handled. To stop passive behaviors and instead disseminate proactive public service practices, we are trying to come up with more fundamental solutions to improve public service culture through training and education and communications.
We also introduced an incentive system to provide tangible motivation for civil servants to engage in proactive public service. For example, each government ministry will be mandated to periodically select and reward outstanding civil servants demonstrating proactive public service. Rewards will be provided in various forms including, but not limited to, special promotions, overseas training opportunities, and transfers to desired department. With incentives that appropriately reward and recognize civil servants for proactive public service, we can reinstate and strengthen their commitment to public service and promote a public service culture for proactive behaviors.
Luvsannamsrai Oyun-erdene: The new Civil Service Law considers the person’s ability to manage, analyze, problem-solving, leadership, and teamwork in recruitment. This is a change in the principle by discarding the previous system that examined one’s ability to memorize – legal knowledge. However, we still lack the know-how of examining these skills. How has the Korean civil service examinations evolved over the years, and what insights can you provide to shed light to updating the civil service examinations in Mongolia?
Hwang Seo-chong: In 1963 when the State Public Officials Act was amended, the Korean government introduced a merit-principle for appointment of civil servants and selection through the open competitive recruitment examinations. The open competitive recruitment examinations are administered separately for grades 5, 7 and 9 (grade 5 is manager-level, grade 9 is lowest staff-level) every year and are open to every citizen regardless of age, gender, education or work experience. The exams consist of written tests and interviews. The written tests cover both general subjects and specialization subjects, and subjects have been continuously updated over the years. The interviews are intended to test candidate’s knowledge, attitude and communication skills. With structured questions and trained interviewers, we ensure objectivity and fairness in the interviewing process.
Besides the open competitive recruitment examination which does not pose any restrictions on qualifications, we also administer competitive examinations for experienced professionals possessing certain academic backgrounds, certifications/licenses, and professional experiences.
As I understand the Mongolian government is making wide ranging initiatives to reform the recruitment system, I would like to stress the importance of 1) determining job descriptions at organization, division, job grade, and/or position-level, and 2) establishing a sound system for ensuring civil servants possess the professional capacity to perform their duties and for testing such capacities. The Korean government continues its work and research in this area to modernize our recruitment system.
Luvsannamsrai Oyun-erdene: What are some publicly-raised concerns when the government tries to reform the civil service recruitment system? How do you gain public trust on civil service recruitment system?
Hwang Seo-chong: The two-pillars of government recruitment are instilling merit-principle and ensuring fairness. Especially, in Korea, where competition for passing the recruitment examination is fierce, it is crucial for government to provide a fair recruitment process where everyone is given equal chance to compete with their aptitude. Our Ministry has adopted a ‘background blind system’ in which candidate background information (i.e. hometown, family relations, and educational background) is completely omitted in the recruitment process.
In order to attain public trust and acceptance towards changes being made to recruitment policies, when revising the test subjects of competitive examinations, we hold roundtables, surveys and public consultation meetings to seek comments from different stakeholders. Also, to minimize the burden on candidate preparing for the exams in dealing with any changes, we provide adequate time for changes to come into effect.
I hope our past experiences relating to improving the recruitment examinations will provide helpful insights to the Mongolian government’s efforts to reform the recruitment system.
Luvsannamsrai Oyun-erdene: What kind measures are in place to prevent discrimination against certain social groups during recruitment?
Hwang Seo-chong: The merit-principle applies to civil service recruitment and evaluations as mandated by the State Public officials Act. However, the government may adopt more proactive measures to ensure diversity and gender balance in public service by giving preferential treatment to certain socially disadvantage groups (i.e. disabled persons, low-income class) in recruitment, promotion and transfers.
For example, the Korean government has implemented a gender quota system since 2003 which ensures minimum percentage of either gender in open competitive examinations for grades 5, 7 and 9. For grades 7 and 9 exams, a quota is in place to recruit certain percentage of disabled persons. We also offer a competitive examination for experienced professionals in which only severely disabled persons may apply. In grade 9 exam, a quota for low-income class is applied so that certain percentage of recruits are from low-income families.
As a model employer, the government HR policies are quickly disseminated into private sector in Korea. Hence, the government has adopted these diversity and inclusion policies to prevent social discrimination and create an inclusive society at the country-level.
Luvsannamsrai Oyun-erdene: We are planning to develop the Civil Service Human Resource Management System. Therefore, could you please share us with your experience on E-Saram Electronic Personnel Management System?
Hwang Seo-chong: The Korean government introduced the e-Saram system (electronic HRM system) in 2000 to support scientific public personnel policies. The system has undergone phases of updates and upgrades since its inception. Currently, 69 central government ministries/agencies with over 300,000 civil servant users are utilizing the e-Saram which provides comprehensive public HRM features from initial employment all the way to retirement covering appointments, remuneration and work schedules. The accrued data and statistical information are used to inform individual ministries/agencies in their organization-level HR policies as well as our Ministry in our government-wide HR policies.
When the e-Saram was first introduced in 2000, there were indeed some obstacles and hesitations by government agencies as they were concerned about interventions and security breaches. In order to overcome the resistance, necessary legislations were enacted for government-wide dissemination of the standardized HRM system. Moreover, we maintained close communication with government organizations to inform them about the benefits of having a systematic and secure information system for managing personnel records. These efforts were made persistently, and eventually e-Saram was adopted across all central government organizations.
The e-Saram has been instrumental in building efficiency in public personnel management functions and supporting a fair and transparent public HRM practices. We are now at a stage of applying intelligent information technologies to e-Saram to further support scientific public HRM policies.
Luvsannamsrai Oyun-erdene: How does salary of civil servants compare to public sector? Do civil servants get enough to maintain savings? How many years does it take for civil servants to purchase an apartment?
Hwang Seo-chong: Our Ministry conducts a survey every year to compare the remuneration of civil servants to the private sector. As of 2018, when compared to the salary-level of administrative and managerial positions of establishments with 100 or more full-time employees with employee composition and nature of work that are similar to public service, the salaries of public servants are at about 85.2% of private sector (general service 77.6%, law enforcement 89.9% and teachers 87.3%). Whether civil servants can maintain savings accounts, or how long it takes to afford a home would largely depend on personal situation and consumption pattern. According to the Civil Service Census conducted in 2018, about 64.3% of civil servants were homeowners (employed less than 5 years 19.2%, between 5-10 years 47.5%, and 10-15 years 70.1%).
Luvsannamsrai Oyun-erdene: Are there legal grounds to protect the status of civil servants in the event of political power shifts? If yes, what kinds of measures and how are they observed?
Hwang Seo-chong: Except for political appointee positions, the civil servants in Korea are ensured job security even when political leadership changes. The Constitution of Korea provides that the career civil service in which civil servants are employed for lifetime are protected under a fair personnel system. In line with the Constitution, the State Public Officials Act stipulates on job security of civil servants and shields them from endangering their jobs. The appointment of civil servants shall be based on objective factors such as exam scores and job performance.
The job security of civil servants are ensured as civil servants must be apolitical and non-partisan, and must serve duty in benefit of all citizens. The legal framework guiding job security and political neutrality of civil servants allow them to provide high quality and consistent public service to the citizens.
Luvsannamsrai Oyun-erdene: Is fractionalization an issue in Korea? Do Korean civil servants tend to support political party activity, action plan and concepts by personal faith or belief?
Hwang Seo-chong: As mentioned above, the Constitution and laws of Korea provides job security and political neutrality of civil servants. Moreover, the State Public Officials Act stipulates that civil servants are forbidden from involvement in organization of or joining political parties or groups, publicly expressing support or opposition for a party or candidate in an election. These measures are in place to ensure public service does not intervene in political affairs and civil servants serve the entire body of citizens rather than in the interest of a political party, and ultimately protect professionalism, continuity and stability of public administration.
Luvsannamsrai Oyun-erdene: I have heard that a civil servant is prohibited from working in the same field for a certain period of time after retirement. Would you elaborate on the policy background and status of its implementation?
Hwang Seo-chong: In keeping with the public ethics and anti-corruption movement around 1960-70s among leading nations (i.e. Enactment of the Ethics in Government Act (1978) in the United States), the Public Service Ethics Act was enacted in Korea in 1981 to prevent corruption in public service and to ensure fairness in public administration process. The Act contains provisions on asset declaration and restrictions on employment and activities of retired public officials. With the inauguration of the Republic of Korean government in 1948, the government bureaucracy was at the backbone of rapid economic development of Korea. However, this also led to widespread private-to-public corruption. With the democratic movement of 1987, the public demands for transparency and integrity in government began to sprout, and the Public Service Ethics Act underwent repeated amendment for stronger ethics policy.
Currently, the Korean public officials who retire from grade 4 or higher positions are prohibited, in principle, from being employed by a private company, law firm or tax accounting firm that have affiliation to the nature of job carried out during the recent five years prior to retirement. The Public Ethics Committee conducts a thorough employment screening and over the past 5 years, 18% of applicants have been denied of post-retirement employment cases. Our Ministry continues to make improvements to the Public Service Ethics Act with firm belief that government can only succeed with strong public ethics.
Luvsannamsrai Oyun-erdene: Can you explain about the appeals and complaint resolution concerning government officials? Do you provide specific training in this area?
Hwang Seo-chong: The appeals system in Korea is a special administrative appeals system for civil servants who makes appeals to disciplinary actions and other appointment-related actions. It is a direct measure for ensuring the job security of civil servants and an indirect measure for self-controlling public administration system. As stipulated in the State Public Officials Act, the Appeals Commission is established under the Ministry of Personnel Management as an independent and consensual body in which its appeals process is protected from any intervention.
The grievance review system allows civil servants to file complaints regarding work conditions, personnel management and other HR affairs and seek resolutions. It protects the rights of civil servants in a wide range of aspects and effectively resolves cases in which civil servants are treated unfairly or require improved working conditions thereby enhancing efficacy of civil servants.
In order to enhance understanding of the appeals and grievance systems, the government offers workshops and training programs for individuals handling appeals grievances in each government ministry/agency. Business process manual and case studies are also distributed on a regular basis.
Luvsannamsrai Oyun-erdene: What is the Ministry of Personnel Management's involvement in the appointment and promotion of special duty officials (police, intelligence, military, etc.)? How are they regulated, which law regulates those matters?
Hwang Seo-chong: Our Ministry does not handle appointment and promotion of special service civil servants (i.e. police, fire service, teachers, military). There are designated laws that guide hiring rules for each category of these special service civil servants. As a central personnel management authority of the Korean government, our Ministry consults and reviews whether HR-related laws and regulations governing special civil servants follow the government HR policy and principle and ensure HR innovation is consistently implemented across both general and special services.
Moreover, to ensure balance in remuneration of civil servants across different occupational groups, our Ministry sets general salary guidelines for both the general and special services. We are continuing our contributions to keep the HR system of special service updated and competitive.
Luvsannamsrai Oyun-erdene: What kinds of international activities have your Ministry been engaged in? How can those experiences contribute to cooperation with Mongolia?
Hwang Seo-chong: In order to share experiences in public sector innovation and to provide necessary support in other government’s efforts to improve civil service management, our Ministry has signed a Memorandum of Understanding (Cooperation) with 12 foreign government or international organizations including the Cabinet Secretariat of Mongolia and is pursuing various cooperation projects. Our affiliated training institute, the National Human Resources Development Institute (NHI), provides international training programs for foreign officials from many different countries including Japan, Russia, Vietnam and Colombia, to name a few. We also provide consultations on civil service reform based on the Korean public HR policies as well as our experiences to the foreign governments at their request, for example, to the Uzbekistani government.
Furthermore, as the global community emphasize the importance of public sector innovation and capacity building of civil servants, and forums and discussions on public employment continue to expand among international organizations (i.e. UN and OECD), our Ministry takes an active role in various international meetings including the OECD Public Governance Committee (PGC), Public Employment and Management Group (PEM), and Senior Public Integrity Officials (SPIO) for development of relevant recommendations and indicators.
I understand the revised Law of Mongolia on Civil Service was approved in December 2017, and the government of Mongolia is working on bylaws and procedures for effective implementation of the revised Law. Given our Ministry’s experiences in providing consultations and training to other countries in SE Asia and Central Asia undergoing similar civil service reform as Mongolia, I look forward to jointly identifying and implementing cooperation projects between Korea and Mongolia that can provide fruitful outcomes for your civil service reform.
Luvsannamsrai Oyun-erdene: Do you have any advice for the Mongolian government based on Korea’s experience with HR innovation in the public service?
Hwang Seo-chong: The unprecedented economic growth of Korea was contributed by high caliber government officials who designed and executed national policies aligned with the country’s strategic objectives.
With our merit-based and fair recruitment system, the government was able to consistently bring in highly qualified talents into public service and through continuous strengthening of their capacity and professionalism. These elite cadre of government officials led the economic growth of the nation. The trust in excellence of bureaucrats both in- and outside- public service sets foundations for public support of government-initiated policies.
The capacity of civil servants are directly tied to the competitiveness of government. The innovation of public HR policy in Korea over the past years have been driven by fundamental goal of recruiting high quality talents and building their capacity and professionalism. We have diversified channels for highly qualified individuals with professional experience from the private sector to enter public service through competitive examination for experienced professionals and open position system (certain government positions are designated as open positions to non-career and/or career civil servants). Currently, about 43% of all open positions are filled by professionals with private sector experience.
We are also moving away from traditional job rotation practices which meant frequent job transfers for civil servants. To foster more specialists in the government, we also designated certain positions in the government to be specialized-track where officials stay in the position for long-term and build expertise in the field. Furthermore, we introduced an assessment program to ensure only those who have the necessary skills and capacity can be appointed to senior positions in the government.
I believe the Mongolian government, with the UNDP Project “Towards a professional and citizen-centered Mongolia” are making essential steps to modernize the civil service through reform of the civil service examination, merit-based HR management system, and establishing training requirements for HR development. With successful civil service reform, highly capable Mongolian civil servants will serve pivotal role in the national advancement.
Luvsannamsrai Oyun-erdene: In order for us to move forward in building a professional and citizen-centered civil service, training of Mongolian civil servants must precede. We hope our officials can receive training in Korea on various HR policy areas including recruitment, performance evaluation, and dispute resolution.
Hwang Seo-chong: I would like to emphasize that the success of a country’s initiatives for innovation and change for national development largely depends on its civil servants who plan and execute those initiatives. Hence, it is critical for the civil servants to gain extensive knowledge on public HR policies and build their capacity.
Our Ministry and the training institute (NHI) have a long history and experiences of offering customized training to foreign officials. As of 2018, over 5,000 foreign officials from 147 different countries attended training at the NHI.
I sincerely hope that the Korean government’s experiences and know-hows will be helpful to the Mongolia’s development efforts, and look forward to collaborating with the Mongolian government and UNDP in the coming years.
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