Assessment of the 2014 Performance Plan of the Korean Government [Society・Administration]

  • 2013-11-06
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Assessment of the 2014 Performance Plan of the Korean Government [Society・Administration] 

      The 「Assessment of the 2014 Performance Plan of the Korean Government」 reviewed the relationship between the performance and budget plans of the Korean government based on 32 themes, including key fiscal issues of the overall national finances, national projects that require large investments, and joint projects run by multiple ministries. The assessment proposed how to review the budget plans for existing programs and reviewed the appropriateness of the budget plans for new programs by examining the necessity of the programs and pre-assessing their effectiveness.
     
      This report evaluated programs using the 32 assessment themes by categorizing them into 'inter-ministerial,' 'economic and industrial,' and 'social and administrative' programs. According to the assessment result, the report proposed 15 items on budget adjustments, 49 items on institutional system revisions, 13 items on legislation and law revisions, and 25 items on modifications of performance plans.
     
      According to the assessment on the performance management of 'social and administrative' programs, many programs lacked credibility in their performance plans, including factors such as performance indicators, targets, and calculation methodologies and also showed little correlation between performance and budget plans.  
     
      The assessment of the Basic Old-age Pension Program (Ministry of Health and Welfare), which is in the process of being converted to a basic pension, found that it needs to establish a financing plan for its stable management. The Basic Pension Plan of the Korean government should be enhanced by considering the poverty levels and income imbalances of the elderly as well as factors to promote continued subscription to the National Pension Plan by lower-income earners. Moreover, a stable financing plan should be implemented to source funding from national and regional expenses.
     
      For environmental technology development programs, a more specific and objective assessment standard should be introduced to encourage the achievement of practical performance goals, such as the number of commercialized or patented projects. The Korea Environmental Industry & Technology Institute did not have clear standards for project evaluations, and some of its performance data were missing or overlapping. Among the 34 projects of the Eco-Innovation Technology Development Program that have been completed and recognized as 'successful,' 24 projects (70.6%) had no performance results for the four indicators of product sales, number of construction projects, patents, and journal publications.
     
      Regarding the Yongsan US Base Relocation Program, the burden of interest is increasing as the national fund deposits are excessive due to the poor sales of the US bases scheduled for return. Among the 47 bases that are for sale, only 6 had completed deals as of 2013 and there were only 18 deals in progress. In this case, as public fund deposits were utilized as financing sources, KRW 111.1 billion was paid as interest from 2006 to 2012, with an expected additional payment of KRW 312.7 billion through 2017.