Assessment of the 2014 Performance Plan of the Korean Government [Economy・Industry]

  • 2013-11-06
  • 313
Assessment of the 2014 Performance Plan of the Korean Government [Economy・Industry]

      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 ‘economic and industrial' 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 Housing Welfare program lacked public rental housing supply plans and performance management plans. In implementing the Housing Voucher program, a delivery system should be established and more thorough preparation is required for the discussions on securing the required funding with the regional self-governing bodies for smooth operation of the program. In relation to the policy on the supply of public rental housing, the continuity of the supply policy needs to be improved and additional performance indexes, such as the number of construction starts, need to be included in the performance management system, which mainly focuses on the number of projects approved.
     
      The Happy Housing Program lacked a feasibility review on its program methodology. The Korean government is implementing the plan to build Happy Housing by changing the purpose of use of national and public land to avoid the difficulties of constructing houses on railroad lands. In the future, a feasibility study should be carried out by each of the Happy Housing zones to review whether building Happy Housing on such national and public lands is appropriate.
     
      The energy-related financial programs were noted for their poor supply of new and renewable energy and the efficiency drop in energy use. New and renewable energy took up 2.1% of Korea's energy mix in 2003. While the government targeted 4.3% for 2015, in the eight years through 2011 the rate had only increased by 0.7%p to 2.8%. While the Ministry of Trade, Industry and Energy established the target of improving the energy usage efficiency up to 11.3% by 2012 through active supply management, since 2009 the efficiency in fact has been decreasing.