Assemblyman Choi Chunsik, "Need to Consider Financial and Project Efficiency"... Halt on Establishing 'Gyeonggi Seomin Financial Foundation'?

Local Public Enterprise Evaluation Institute, "Negative Impact on Local Finances... Must Be Carefully Reviewed"

[Provided by Choi Chunsik's Office]

[Asia Economy Reporter La Young-chul] Attention is focused on whether the establishment of the 'Gyeonggi Saemin Financial Foundation (tentative name)' officially proposed by Gyeonggi Province will be halted, as the Local Public Enterprise Evaluation Institute under the government has raised a 'cautious stance' regarding the plan.

According to current law, local governments must receive a 'feasibility review' from the Local Public Enterprise Evaluation Institute when establishing local public enterprises.

According to materials submitted by the Local Public Enterprise Evaluation Institute to Choi Chun-sik, a member of the National Assembly's Public Administration and Security Committee (representing Pocheon-si and Gapyeong-gun, Gyeonggi), the 'Feasibility Study for the Establishment of the Gyeonggi Saemin Financial Foundation' conducted at the request of Gyeonggi Province concluded with a final review recommending 'careful consideration' based on concerns such as negative impacts on local finances.

The Local Public Enterprise Evaluation Institute judged that 87.7 billion KRW in funding would be required over the next five years for the foundation's establishment and operation.

This amount is 3.2 billion KRW more than Gyeonggi Province's own estimated budget of 84.5 billion KRW.

In particular, there was also an opinion suggesting the need to consider utilizing 'existing public institutions' rather than establishing a 'new institution.'

In fact, it has been continuously pointed out that most of the major projects of the Gyeonggi Saemin Financial Foundation are very similar to or overlap with the existing projects of the Gyeonggi Credit Guarantee Foundation and the Gyeonggi Welfare Foundation.

Assemblyman Choi Chun-sik stated, "The establishment of the foundation could lead to a continuous increase in fixed contributions in the future, which may become a significant burden on financial management in the long term," and added, "It is necessary to examine financial and project efficiency through adjustments of the roles, functions, and projects of existing institutions."

Meanwhile, earlier on the 9th, Gyeonggi Province officially announced its intention to promote the establishment of the Gyeonggi Saemin Financial Foundation.

Based on the results of the feasibility study for the establishment of the 'Gyeonggi Saemin Financial Foundation,' jointly conducted with the Local Public Enterprise Evaluation Institute since March this year, the province has announced plans to officially launch the foundation around June next year at the earliest.

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