The government invested program, one of the various ways to support the budget, the amounts of 5,062.8 billion won in the 2010 fiscal year, is implemented by 54 projects under the responsibility of 8 ministries. By department, the program’s bud-get for three ministries-Ministry of Land, Transport and Maritime Affairs, Min-istry of Knowledge Economy and Financial Service Commission is about 4,722.1 billion won which accounts for 93.3 percent of total 5,062.8 billion won.
In particular, government invested program is different from other types of program such as government funded program or government subsidy program in the aspect of formulating national assets (investable securities). although govern-ment invested program needs to be comprehensively monitored from planning to follow up, this still fall in the blind spot out of appropriate management.
This evaluation report carried out comprehensive assessment on whether the method of government investment is appropriate, whether government invested programs have achieved original policy goals, whether budget is used effectively by focusing on government invested programs of five ministries.
The evaluation results confirmed some problems that national asset is account-ed dually due to the government investment method, and that some policy goals are achieved in an inefficient manner because of dual investment on same venture com-panies. There is also another problem that budget is implemented ineffectively on the ground of excessive cash holding by investment unions.
Therefore, some policy recommendations presented in this report are as follows: careful review on the type of budget support is required to prevent dual accounting, a system is needed to be prepared to prevent investing twice in the same small and medium-sized firms, and thorough preview toward investment plans is necessary to prevent excessive cash holding.
In particular, government invested program is different from other types of program such as government funded program or government subsidy program in the aspect of formulating national assets (investable securities). although govern-ment invested program needs to be comprehensively monitored from planning to follow up, this still fall in the blind spot out of appropriate management.
This evaluation report carried out comprehensive assessment on whether the method of government investment is appropriate, whether government invested programs have achieved original policy goals, whether budget is used effectively by focusing on government invested programs of five ministries.
The evaluation results confirmed some problems that national asset is account-ed dually due to the government investment method, and that some policy goals are achieved in an inefficient manner because of dual investment on same venture com-panies. There is also another problem that budget is implemented ineffectively on the ground of excessive cash holding by investment unions.
Therefore, some policy recommendations presented in this report are as follows: careful review on the type of budget support is required to prevent dual accounting, a system is needed to be prepared to prevent investing twice in the same small and medium-sized firms, and thorough preview toward investment plans is necessary to prevent excessive cash holding.