On January 29, 2004, for the purpose of contributing to the reasonable allocation and transparent use of lottery proceeds to promote the welfare of the people, the Lottery and Lottery Fund Law has been established. The National Assembly finalized the lottery fund management scale at 3.7 trillion won in 2012.
    Problems before the establishment of Law such as the lack of legal basis in the allocation of the lottery proceeds and the shortness of comprehensive systematic supervision have been resolved. However, criticisms and concerns on current statutory allocation of lottery proceeds and lax management of fund programs are constantly being raised.
    NABO has conducted a thorough analysis across Lottery Funds, including the operating system of lottery business, and performance management of lottery fund programs. We scrutinized the efficiency and the rationality of the allocation and use of lottery proceeds and examined the differentiation of the lottery fund with the general account budget. This report also shows the practices of operating systems in overseas lottery business and the domestic gambling industry for the purpose of drawing implications by which publicity and efficiency can be achieved simultaneously in the lottery business governance.

Koh Junehyuk, Lee Sejin