Ulsan City, "Public Institutions to be Consolidated from 13 to 9"... Over 12 Billion Won Budget Savings to be Used for Citizen Welfare Projects
Research Service Results Suggest Merging and Consolidation of Similar and Overlapping Public Institutions
[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] Ulsan City, upon entering the 8th term of the elected administration, analyzed the results of a research project on improving management efficiency of public institutions and found that consolidating six public institutions into three would be the most efficient approach.
This study was commissioned to the Ulsan Development Institute in accordance with the "New Government Public Institution Innovation Guidelines" to eliminate administrative waste and inefficiency caused by overlapping and redundant functions among public institutions and to establish rational functional adjustment measures.
The research targeted public institutions that received a management evaluation grade of 'D' or lower this year, or those that received a 'C' grade once and a 'D' grade two or more times in the past three years, focusing on the similarity and redundancy of their functions and projects.
The consolidation plan for improving public institution efficiency is as follows.
▲ Ulsan Cultural Foundation and Ulsan Tourism Foundation will be integrated into the (tentatively named) Ulsan Culture and Tourism Foundation.
These two institutions have similar service targets and project directions, and it is expected that linking and integrating various projects will create significant synergistic effects through the convergence of culture and tourism.
Quantitatively, an annual budget saving of 900 million KRW is expected, including 310 million KRW in personnel expenses and 590 million KRW in operating expenses, with a 53% increase in sales per person and total assets.
▲ Ulsan Job Foundation and Ulsan Economic Promotion Agency will be integrated into the (tentatively named) Ulsan Job and Economic Promotion Agency.
These two institutions have overlapping 'corporate financial support' projects that require integration, and since the ultimate goal of their establishment projects is employment retention and promotion, it is analyzed that linking and integrating them will enhance economic efficiency and competitiveness.
Quantitatively, an annual budget saving of 1.3 billion KRW is expected, including 790 million KRW in personnel expenses and 520 million KRW in operating expenses, with a 5.4% increase in sales per person and total assets.
▲ Ulsan Talent Lifelong Education Promotion Agency has similar citizen education projects as the Ulsan Development Institute, and to strengthen lifelong education research capabilities, it is proposed to absorb and integrate it into the Ulsan Development Institute.
Quantitatively, an annual budget saving of 900 million KRW is expected, including 250 million KRW in personnel expenses and 630 million KRW in operating expenses, with a 3.3% increase in sales per person and total assets.
Accordingly, consolidating these six institutions into three is expected to save more than 12 billion KRW over the four years of the 8th elected administration, as well as maximize the expansion of public service scope and synergistic effects through the unification of similar and overlapping projects.
The city plans to promote detailed integration measures considering the characteristics and situations of each institution under the principle of employment succession during restructuring, based on the results of this study.
An official from Ulsan City said, "In line with the government's direction for public institution innovation, we will eliminate inefficiencies in public institutions and strengthen core projects," adding, "The budget savings of over 12 billion KRW will be actively used for projects to improve citizens' welfare."
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For efficiency in welfare-related public institutions, the integration of Ulsan Women and Family Development Institute and Ulsan Social Service Institute into the Welfare Family Promotion Social Service Institute is scheduled to launch in January next year.
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