The purpose of this study is twofold. First, this study identifies the criteria to assess the organizational effectiveness of the public-private partnership, commonly referred to as the third sector enterprise. The public-private partnership, as a new form of corporation, has been suggested as an effective vehicle to utilize the merits of both public corporation and private enterprise: The public dimension of this partnership enables it to ensure the public interest, while the private dimension of the partnership allows it to enhance the merits of the private enterprise such as the profit-seeking motive, efficiency, and the market principles. Second, based on these criteria as identified above, this study attempts to assess the performance of Changheung Mushroom Physical Distribution Corporation (CHMPDC). Based on the survey of the theoretical literature concerning the third sector enterprises, this study identifies the criteria (or indicators) to assess the organizational effectiveness of this type of business entity. The effectiveness of this type of business entity. The effectiveness of the organization is measured internally and externally as well. In order to measure the internal effectiveness, this employs a number of financial ratios. They are: (1) stability ratio(i.e., current ration, quick ratio, stockholders` equity to total assets, debt ratio, and fixed assets to stockholders` equity and long-term liabilities) (2) profitability ratio (i.e., net income to sales, net income to stockholders; equity and ordinary income to, and ordinary income to total assets) (3) growth ratio (i.e., total assets turnover, stockholders; equity turnover, and receivables turnover). for the measurement of the external performance, this study identifies following non=financial criteria, including: (1) the improvement on financial self-reliance ratio (i.e., expenditure-revenue ratio, increase in local tax revenue); (2) the vitalization to local economy (i.e., income effect, employment effect, effect to small business); (3) the increase in the level of convenience to residents on the area (i.e., satisfaction to the residents, reduction in production or service costs). Using both financial and non-financial data gathered from CHMPDC for the period of january 1, 1994 to December 31, 1994, this study actually measures the performance of CHMPDC. The results from this measurement can be summarized as follows:First, The internally measured performance of the CHMPDC are mixed. More specifically, the profitability ratios and the activity ratios are relatively low, whereas the stability ratios and the growth ratios are relatively high compared to the similar private enterprises. Second, with respect to the externally measured performance of the CHMPCD, the increase in self-reliance ratio is negligible, but the level of contribution to the local economy and the level of improvement on convenience to the residents are remarkable. One significant contribution of this study rests on the fact that this study identifies the reliable and relevant(both theoretically and empirically) assessment criteria that can be used to actually evaluate the performance of the public-private partnership. However, the limitation of this study is that this study is unable to quantify the somewhat indirect effect of the corporations mainly due to the lack of the reliable data. For instance, the government officials and the residents to the area perceived the existence of the indirect income effect of the service(i.e., arranging to purchase equipment with cheaper price) rendered by the CHMPDC, but it was very difficult to quantify this effect.