"Examining Waste of Public Funds" Full Audit of Private Organization Subsidies Until April Next Year

Each Ministry's Internal Audit by End of April Next Year
Improvement Plans to Be Prepared in the First Half

[Asia Economy Reporter Koo Chae-eun] The Office for Government Policy Coordination held an auditors' meeting with 47 central administrative agencies and decided to conduct self-audits on subsidy projects for private organizations. Each ministry will conduct self-audits by the end of April next year, and plans to announce institutional improvement measures in the first half of the year.

On the 29th, Moon Bang-kyu, head of the Office for Government Policy Coordination, emphasized at the auditors' meeting that "the nation's finances must be used transparently and in accordance with laws and regulations." He stated, "Since subsidies paid to private organizations exceed 50 trillion won annually and the number of supported organizations reaches about 27,000, we will establish a transparent management system commensurate with that scale."

This is a follow-up measure to President Yoon Suk-yeol's statement at the Cabinet meeting on the 27th, where he pledged to inspect the actual conditions of public interest subsidy projects and improve the system. It is interpreted as a determination to thoroughly audit improper support and involvement in vested interests, based on the judgment that private subsidies carried out during the Moon Jae-in administration were poorly executed. This aligns with the new government's emphasis on securing the soundness of national finances and maintaining the appropriateness of budget execution.

Each ministry plans to inspect by the end of April next year all subsidy projects for private organizations, including ▲ ministry-supported projects ▲ ministry-local government matching support projects ▲ projects supported by affiliated public institutions, focusing on accounting fraud and use for purposes other than intended. To ensure thorough self-audits by ministries, the Office for Government Policy Coordination will conduct verification checks. If necessary, joint inspections will be conducted with the Ministry of Economy and Finance (public institutions), Ministry of the Interior and Safety (local governments), Ministry of Education (education offices), and others.

Starting with this self-audit, the government will prepare improvement measures for subsidy projects overall by the first half of next year. The current subsidy management system will be improved comprehensively, including subsidies managed by ministries, local governments, metropolitan and provincial offices of education, and public institutions, by either central government management or utilizing external audits.

Furthermore, all subsidy projects will be reexamined from a zero-base perspective, and the results will be reflected in the 2024 budget formulation.

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