Regional Korean gov’t heads to be stripped of budget compilation rights for mismanagement

February 25, 2014 Leave a comment

Regional gov’t heads to be stripped of budget compilation rights for mismanagement

Park Man-won, Chang Won-joo

2014.02.16 13:40:00

The South Korean government will introduce ‘insolvency system’ for poorly-managed regional governments. The new system is an equivalent of corporate workout system. In addition, safety index, which calculates frequency of safety accidents, by region will be made public this year while one-room buildings which have frequent cases of crimes against women will be subject to anti-crime certification. 

The plan for 2014 was submitted by the Ministry of Security and Public Administration to President Park Geun-hye Friday.
Minister Yoo Chung-bok noted, “the measure will be the last resort to discipline heads of regional governments for their mismanagement, not for passing down the responsibility to residents.”
This means administrative service provided by regional governments will remain intact while their heads will be deprived of budget compilation rights when the governments are caught being poorly managed. Minister Yoo said, “regarding how to set the criteria for insolvency, who has the authority to declare insolvency and who will assume the post after insolvency is declared, more study should be done.”
The government is mulling forcing regional governments to declare bankruptcy after failing to repay debts at maturity for more than 30 days. The Ministry will seek enactment by late this year after finishing the study until June.

 

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