Assemblyman Lee Hyung-seok: "Completely Block Illegal Local Subsidy Claims by Law"

Bill on the Management of Local Government Subsidies Proposed as Main Sponsor

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Rep. Lee Hyung-seok (Gwangju Metropolitan City Buk-gu Eul, Democratic Party Supreme Council Member) has introduced the "Act on the Management of Local Government Subsidies" (hereinafter referred to as the "Local Subsidy Act") to organize the management system of subsidies provided by local governments to ensure that local subsidies can be efficiently executed.

Rep. Lee Hyung-seok stated, "Although local subsidies require meticulous management due to their scale, diversity, and specificity, there has been a lack of comprehensive legislation to oversee them," and emphasized, "Through the enactment of the Local Subsidy Act, it is necessary to manage local subsidies more systematically and operate them more effectively, similar to national treasury subsidies."

Currently, the scale of local subsidies in South Korea is operated at around 46.4 trillion KRW, but matters related to budget formulation, disbursement procedures, project execution, and management of local subsidies are delegated not to separate laws but to administrative regulations of the Ministry of the Interior and Safety and local government ordinances, raising the need for common standards and systematic operation.

The Local Subsidy Act, introduced by Rep. Lee as the main proposer, stipulates procedures for local subsidy budget formulation and disbursement, specifies the management duties of local government heads and reporting obligations of local subsidy project operators, includes provisions for the composition and deliberation of the Local Subsidy Management Committee, and contains regulations on subsidy returns and sanctions to eradicate fraudulent receipt.

Rep. Lee said, "Through the enactment of the Local Subsidy Act, local subsidies will be managed more transparently and effectively, and subsidy budgets will be executed where they are truly needed, creating an opportunity to significantly improve the quality of life for residents."

He added, "By ensuring that not a single won of local subsidies, which are taxpayers' money, is wasted, we will prevent financial leakage in already financially strained local governments and greatly contribute to strengthening fiscal soundness."

The Local Subsidy Act proposed by Rep. Lee Hyung-seok was co-sponsored by Representatives Ahn Gyu-baek, Yoon Hu-duk, Han Byung-do, Kim Yoon-duk, Park Jung, Jin Sung-jun, Song Gap-seok, Kim Kyung-man, Yang Ki-dae, Shin Hyun-young, and Jeon Yong-gi.

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