Vice Minister Choi Sang-dae: "SOC and R&D Preliminary Feasibility Study Threshold Amounts to Be Raised"

"Procedural and Institutional Improvements Needed for Rapid Preliminary Feasibility Studies"

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kwon Haeyoung] Choi Sangdae, the 2nd Vice Minister of the Ministry of Economy and Finance, stated on the 13th that "it is necessary to adjust the threshold amount for preliminary feasibility study (PFS) targets for social overhead capital (SOC) and research and development (R&D) projects to enable rapid execution of PFS."

Vice Minister Choi held a meeting with PFS experts at the Government Seoul Office in the afternoon and said, "In the future, the PFS system needs to be operated quickly and flexibly in accordance with changes in economic and social conditions while faithfully performing its role as the 'Gate-Keeper' of fiscal matters."

He assessed the current situation by saying, "While there are concerns that the original purpose of PFS to prevent fiscal leakage in advance may be weakened, there are also criticisms that PFS makes timely project implementation difficult and excessively restricts the autonomy of ministries." He emphasized the need to improve procedures and systems for rapid PFS execution, raise the threshold amount for PFS targets to enhance speed and flexibility, and strengthen the substance of PFS by reflecting the characteristics of each project.

Experts attending the meeting also called for raising the threshold amount for PFS targets in line with the expansion of the economy and fiscal scale, and establishing rapid PFS procedures for urgent policy demands. They requested a flexible approach that actively reflects regional balanced development factors, policy objectives, and project-specific characteristics in PFS. Regarding PFS exemptions, they pointed out the need for strict system operation and efforts to ensure that the original purpose of PFS to prevent fiscal waste is not compromised.

Vice Minister Choi said, "We will actively reflect expert opinions in future policies," and added, "we will continuously collect diverse opinions from various sectors including private experts, central ministries, and local governments to improve the PFS system."

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