The combined debt of Korean public firms and institutions is expected to hit 524 trillion won ($502 billion) next year, the finance ministry said Sunday, amid government efforts to reduce their liabilities.

The forecast is 3 trillion won smaller than an earlier government estimate this year, with the debt ratio likely to come in at 214 percent in 2015, according to the ministry’s 2014-2018 financial management plan for them, which will be submitted to the National Assembly on Monday.

Under President Park Geun-hye’s plan to reform public institutions, the government had announced a three-year plan starting this year to cut debt in the public sector.

Public firms and organizations have been under fire for lax and wasteful management, such as in doling out what many see as excessive bonuses, benefits and perks to employees, despite fast-growing debts.

In the 2014-2017 plan, the finance ministry projected debt at public institutions to fall 11.8 trillion won by end-2017 on a number of factors such as a strengthening won, adjustments in overseas investments and voluntary reform efforts. (Yonhap)