Public enterprise reform of Lee Myung-Bak administration was designed with limited scale and impact by eliminating large and important public firms. Presumably the ‘candle demonstration' in the spring of 2008 and the following worldwide financial crisis provided the background of such small-scale reform. Emphasis on practical value and short-term result due to the lack of philosophy necessary for the public enterprise reform provide another factor. Privatization, sale of affiliated companies, functional rearrangement, introduction of competition and software reform such as adoption of annual salary system and salary peak showed poor performance while merge and shut-down of public firms as well as the layoff of public firms' employees showed good performance. The rapid increase in public firms' debt is another big concern while revising collective agreements of many public firms by confronting labor union with strict principle deserves positive evaluation. For the successful public sector reform we need to design road map for the long-term public sector reshuffling, actively drive public enterprise privatization and raise the autonomy of public firms as well as their responsibility through market discipline