Disclosure of Varying Local Treasury Account Interest Rates Announced... Enforcement Decree Pre-Notice

To Be Disclosed on the Ministry of the Interior and Safety Website as Early as December

Starting at the end of this year, citizens will be able to directly check the agreed interest rates of local government treasury accounts, which currently vary by region.

The Ministry of the Interior and Safety announced on October 29 that, beginning October 30, it will pre-announce legislation for a partial amendment to the Enforcement Decree of the Local Accounting Act. This amendment will require the disclosure of agreed treasury account interest rates, aiming to guarantee the public's right to know and to enhance the efficiency of local government fiscal management.

Each local government selects a financial institution to safeguard its budget and public funds in a "treasury account." Until now, the interest rates on these funds have not been made public, and there have been concerns about significant regional disparities. In response, President Lee Jaemyung instructed at a national fiscal savings meeting in August that "the government should investigate the treasury account interest rates of local governments nationwide and review whether it is possible to make this information public."

The revised Enforcement Decree will add "agreed treasury account interest rates" to the items specified for disclosure under Article 48, Paragraph 5 of the Enforcement Decree of the Local Accounting Act. The specific timing and method of disclosure will be determined by revising the administrative regulation, "Standards for Designating Local Government Treasury Accounts," to coincide with the promulgation of the amended Enforcement Decree.

Through the legislative pre-announcement, the Ministry of the Interior and Safety will collect a wide range of opinions from citizens and related organizations for a 20-day period until November 19. Once the enforcement decree is amended and promulgated, the agreed interest rates for local government treasury accounts are expected to be released on the ministry's website as early as December.

Minister Yoon Hojoong of the Ministry of the Interior and Safety stated, "Allowing citizens to directly verify the interest rates of local government treasury accounts will further strengthen the transparency and efficiency of local finances. The ministry will thoroughly gather relevant feedback to ensure the smooth implementation of interest rate disclosure and will continue to pursue reforms to local fiscal systems that citizens can tangibly experience."