Administrative Subjectivity and State Liability of Public Enterprises

This article examines the legal status of public enterprises from the perspectives of administrative subjectivity and state liability. In the modern welfare state, public enterprises play a central role in the provision of public services and significantly affect the rights and obligations of citizens. Nevertheless, Korean case law has been inconsistent and generally restrictive in recognizing public enterprises as administrative subjects. This study first analyzes the concept and scope of public enterprises based on statutory frameworks and academic theories, and proposes an organizational-law- oriented definition that emphasizes the state’s dominant influence rather than public interest or profitability. It then critically reviews judicial decisions concerning bid participation restrictions, qualification assessments, and the cancellation or limitation of supplier registration, arguing for the general recognition of administrative subjectivity of public enterprises. Furthermore, by examining the relationship between Article 29 of the Constitution and the State Compensation Act, this article analyzes the legal nature of state liability and contends that the State Compensation Act should be analogically applied to public enterprises as administrative subjects. This approach enhances effective public-law control and strengthens the protection of citizens’ rights.