Local Investment and Contribution Agencies to Have Establishment Standards Introduced

Guidelines for Organizational Design of Participating Institutions

[Asia Economy Reporter Kiho Sung] The Ministry of the Interior and Safety announced on the 18th that it has finalized the revision of the 'Standards for the Establishment of Local Investment and Contribution Institutions' to prevent redundant establishment and inefficient management of local investment and contribution institutions, and will implement it starting tomorrow.

This revision of the establishment standards is one of the follow-up measures of the 'Reorganization Plan for the Local Public Institution Management System,' aiming to suppress the redundant establishment and inefficient management of small-scale institutions and to ensure the soundness of local public institution operations.

The main revisions of the 'Standards for the Establishment of Local Investment and Contribution Institutions' are as follows. First, detailed criteria for organizational design of contribution institutions are presented to encourage institutions to be established with a minimum organizational size (City/Province: 28 or more personnel, City/County/District: 20 or more personnel). Additionally, considerations and directions in the areas of organization, personnel, and budget are provided, including project budget allocation standards (at least 50% of the total budget), team-based organizational structure, and the introduction of job-centered personnel management.

Along with this, a pre-inspection checklist is provided so that local governments can self-assess the feasibility of establishing contribution institutions in advance, and the fulfillment of this checklist will be checked during the establishment consultation (first and second rounds) and feasibility review stages.

Furthermore, the establishment consultation evaluation form is differentiated by institution type to ensure that establishment reviews are conducted according to the characteristics of each institution, and the establishment consultation process is strengthened through adjustments of evaluation items and scoring, as well as mandatory recording of review opinions (such as reasons for score assignment).

The finalized revision will be notified to each local government and specialized institutions for feasibility review on the 19th, and will be applied from the establishment procedures (establishment consultation, feasibility review, etc.) conducted this year. In addition, training courses will be organized at the Local Autonomy Human Resources Development Institute and the Local Public Enterprise Evaluation Institute to provide education to local government officials.

Choi Byung-kwan, Director of the Local Finance and Economy Office at the Ministry of the Interior and Safety, stated, “There have been voices emphasizing the need to prevent redundant establishment of local investment and contribution institutions, especially centered on cities, counties, and districts, as their establishment is increasing.” He added, “Through this revision, the soundness of local public institution operations will be secured, and it is expected that high-quality public services can be provided to the citizens.”