Yeongdeungpo-gu Saved 900 Million Won Last Year Through Contract Review... 12 Billion Won Saved Over 11 Years

[Yeongdeungpo-gu, Seoul News] Last Year, Contract Review Saved 949 Million KRW Budget... Total 1,010 Cases Reviewed Including Construction, Services, and Goods Purchases... Survey of Ordering Department Staff Highlights Efforts Such as Raising Service Review Thresholds and Shortening Review Periods... Yeongdeungpo-gu Also Conducts Public Property Lease Contracts Non-Face-to-Face

Cha Hyun-il, Mayor of Yeongdeungpo District

[Asia Economy Reporter Park Jong-il] Yeongdeungpo-gu (Mayor Chae Hyun-il) saved a total budget of 949 million KRW through contract reviews in 2021.

The contract review system is a mechanism to prevent budget waste in advance by reviewing the appropriateness of cost estimates proposed by the ordering department before bidding or contracting for projects (construction, services, goods procurement) commissioned by local governments, aiming to operate local finances more transparently and efficiently.

The cost review threshold amounts in Yeongdeungpo-gu are 10 million KRW or more for construction, 10 million KRW or more for services, and 5 million KRW or more for goods procurement. Over the past year, a total of 1,010 cases worth approximately 81.3 billion KRW were reviewed, including ▲381 construction cases ▲364 service cases ▲265 goods procurement cases, resulting in a total budget saving of 949 million KRW.

The saved budget was reinvested in major district projects to promote rational and flexible financial management, ultimately creating a virtuous cycle effect contributing to the enhancement of residents' convenience and revitalization of the local economy.

In particular, in March last year, the district conducted a satisfaction survey on contract reviews targeting ordering staff and published a reference booklet containing guidelines by field, related regulations, and cost-saving cases to ensure smooth contract reviews.

Additionally, reflecting the results of the staff survey and to improve the efficiency of service reviews, the review threshold was raised from 5 million KRW to 10 million KRW, and through shortened review periods during specific times, early project ordering and prompt execution were promoted.

Along with continuous work improvements, staff communication, and sharing of best practices, the district made comprehensive efforts to save budgets, including consulting external experts for specialized fields such as academic research and large-scale construction. As a result, since the introduction of the contract review system in November 2010 until last year, the total amount saved reached 12 billion KRW, playing a significant role in strengthening fiscal soundness.

Chae Hyun-il, Mayor of Yeongdeungpo-gu, stated, “Through meticulous and flawless operation of the contract review system, we will enhance the efficiency of financial management and eliminate budget waste factors in advance to ensure that residents' tax money is not wasted. Rather than focusing solely on reductions, we will do our best to ensure fair and rational cost analysis so that budget execution can be trusted by the residents.”

Yeongdeungpo-gu (Mayor Chae Hyun-il) announced that it will promote non-face-to-face lease contracts for public property starting this year to prevent the spread of COVID-19 and enhance residents' convenience.

Public property refers to assets owned by local governments, among which general property is leased to entities outside the local government for free or paid use for a fixed period through lease contracts, which are renewed every 1 to 3 years.

Previously, when applying for lease contract renewal, applicants had to submit documents directly to the district office and visit again after contract signing to receive the contract and payment notices.

To resolve inconveniences for civil petitioners, the district recognized the need to diversify contract methods and improved the lease contract process. The previous method allowed only face-to-face contracts, but now non-face-to-face contracts are available to expand options for applicants, and fees and lease payments can be conveniently made via bank transfer.

One month before the contract expiration date, applicants receive a phone notification about contract methods. If they wish to proceed with a non-face-to-face contract, they can apply via fax, mail, or email. Subsequently, all processes including contract signing, lease payment, and contract delivery are conducted non-face-to-face through mail.

In response to the ongoing spread of COVID-19, the district plans to actively promote the non-face-to-face lease contract service targeting public properties with lease periods ending this year to ensure safe and convenient administrative processing.

Furthermore, the district will inspect illegal acts such as unauthorized occupation of leased properties, actively promote sales of unused properties with no preservation value to actual users, and strive for efficient and systematic management of public property through surveys, imposition and collection of compensation for unauthorized occupation, and discovery of omitted properties.

Chae Hyun-il, Mayor of Yeongdeungpo-gu, said, “With the rise in demand for non-face-to-face administrative services in the untact era, we have expanded the contract methods for public property to non-face-to-face to allow residents to handle administrative procedures more safely and conveniently. We will do our utmost to enhance resident satisfaction and contribute to the district’s financial expansion by thoroughly managing public property.”

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