Ministry of the Interior and Safety Invests Over 170 Billion KRW in Building Next-Generation Local Finance System

Government Sejong Complex. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Osangdo] The government is set to officially begin the 'Next-Generation Local Finance System Construction' for use by 243 local governments nationwide. A total budget of approximately 170 billion KRW will be invested for the integrated service scheduled to launch in 2023.

According to the Ministry of the Interior and Safety on the 10th, the next-generation local finance management system, 'e-Hojo,' will encompass all aspects of local finance from revenue to expenditure. The ministry plans to develop e-Hojo into an integrated local finance management infrastructure used by 243 local governments and 330,000 local public officials nationwide. Budget planning, expenditure, and settlement will all be possible within this system.

The Ministry of the Interior and Safety will invest 22 billion KRW for the first time this year to support this effort.

Once the system is completed, it will enable timely production of local finance statistics, real-time monitoring of available resources and financial trends, and electronic management of local subsidies. Additionally, integrating financial data operated by each local government will facilitate the formulation of nationwide fiscal policies.

Furthermore, businesses that transact with or receive support from local governments will be able to handle tasks such as payment claims and support applications online without visiting administrative offices.

This next-generation local finance management system will be linked with the next-generation local revenue information system, which the government has been developing since last year. The construction of the next-generation local revenue information system is a project that integrates and automates the payment and processing systems for local taxes and non-tax revenues nationwide by incorporating advanced technologies such as big data and artificial intelligence (AI). The goal is to complete system development by 2021 with an investment of 192.3 billion KRW and to start services from February 2022.

Once the next-generation local revenue information system is operational, local taxes and fines can be reported and paid from anywhere nationwide using smart devices.

The Ministry of the Interior and Safety plans to link revenue and financial information in real time starting in 2023, enabling a comprehensive view of local finance from revenue to expenditure at a glance.

This content was produced with the assistance of AI translation services.