Easing Restrictions on Public Institution Child Allowance Payments... Shortening Project Feasibility Evaluation Period

The restrictions on the payment of child allowances and childbirth congratulatory money provided by public institutions will be relaxed so that they can be paid regardless of the rate of increase in personnel expenses. In addition, when public institutions reapply for preliminary feasibility studies, the related procedures will be shortened by up to two months.

On the 14th, the Ministry of Economy and Finance announced that it held the 14th Public Institution Management Committee chaired by Kim Wan-seop, the 2nd Vice Minister of the Ministry of Economy and Finance, and finalized the "2024 Budget Operation Guidelines for Public Enterprises and Quasi-Governmental Institutions" containing these details.

First, regarding the budget for public institutions, the rate of increase in personnel expenses for public institutions will be set at 2.5% year-on-year, the same as the next year's civil servant wage increase rate. However, the system has been improved so that public institutions can pay child allowances and childbirth congratulatory money, which are currently paid at the civil servant level, regardless of the rate of increase in personnel expenses.

Kim Wan-seop, 2nd Vice Minister of Strategy and Finance

Measures to improve the preliminary feasibility study for public institutions have also been prepared. To promote feasible projects in a timely manner, the utilization of the preliminary consultation procedure will be enhanced. Although there has been a preliminary consultation procedure for concretizing project plans before applying for the feasibility study, it was judged that there was a lack of incentives for its utilization.

When reapplying for a feasibility study, the advisory meeting procedure will be omitted in selecting target projects, shortening the required time by up to two months. This is because when the same project previously selected for a feasibility study is re-pursued, all selection procedures including application and advisory meetings were conducted, causing considerable time and cost.

To increase the acceptance of feasibility study applications by public institutions, measures will also be prepared to enhance the utilization of the results of the syndicate project analysis of overseas projects. The government will disclose the 2024 Budget Operation Guidelines for Public Enterprises and Quasi-Governmental Institutions on the 'Public Institution Management Information Disclosure System,' and the institutional improvements contained in the 'Preliminary Feasibility Study Improvement Measures for Public Institutions' will be implemented from February 1 next year through the revision of the 'Operational Guidelines for Preliminary Feasibility Studies of Public Enterprises and Quasi-Governmental Institutions.'