The central government has implemented various subsidy programs in order to encourage public-oriented activities of civil organizations and to provide public services which are hard for the government to deliver in some areas. The financial size of subsidies amounts to 52.9 trillion won in 2012, which was 39.8 trillion won in 2008. It has increased by more than 13 trillion won in 4 years.
    This evaluation report analyzes government subsidy programs whose financial size is as much as one-sixth of one-year of government total expenditure in the area of financial performance goal management and financial programs self-review. This report also suggests some policy recommendations to improve performance of financial programs.
    Even though some problems of subsidy programs have been pointed out from the perspective of budget and settlement deliberation, no one has tried to evaluate subsidy programs in the aspect of performance management.
    Evaluation results show that 22.6% (287 programs) of total 1,271 programs are out of performance management because they have no performance indicators.
    Secondly, analysis of the performance results of financial programs self-review reveals that only 10.2% (41 programs) have received the grade of "excellent" and "good". It is pointed out that further efforts are needed to improve the performance of subsidy programs.
    Thirdly, some kinds of subsidy programs have problems such that performance goals have decreased in spite of budget increase and more support.
    Lastly, real time information release about implementation status of subsidy programs will contribute to program transparency, and help enhance financial soundness and efficiency.

Park Hong-Yeop