As of October 2016, the 2017 government-supported budget for the 321 institutions which are designated and operated as public institutions according to the Act on the Management of Public Institutions was 52.1 trillion won, representing 13.0% of the 400.7 trillion won total budget for government expenditures.
    The government-supported budget for public institutions is provided to public institutions in the form of contributions, investments or subsidiaries, so that they may produce and provide goods and services, which the government cannot directly pursue but must definitely be provided at the national level. For the efficient usage of limited national resources, analyzing whether government budgets are being spent in truly essential areas is absolutely necessary to prevent the waste and strengthen fiscal soundness.
    This report focuses on evaluating various issues including the budget allocation status of deficit-covering institutions, the adequacy of the government’s allotments to public institutions, the financial soundness of bank-type financial public institutions, the budget system used for public corporations and the management status of pre-feasibility studies for public institutions. The adequacy of government-supported programs for individual public institutions was also evaluated in each sector including land development, social culture, agriculture, fisheries, food, transportation and energy.
    In conclusion, the report suggested the need for structured eligibility criteria and rational calculation of the scope of reimbursement because the eligibility criteria of deficit-covering institutions is unclear and ineffective. Regarding bank-type financial public institutions, since financial soundness has deteriorated as loans have been focused on certain companies, it was recommended that the responsible parties for bad loans be investigated and preparations be made against additional potential deficiencies that may occur upon capital expansion. In addition, the plans and achievements of each government-supported program conducted by individual public institutions in major sectors such as land development, social culture, agriculture, fisheries, food, transportation and energy need to be thoroughly reviewed and improved.