Construction of Sports Facilities and Government Buildings... Local Governments Will Conduct Their Own Reviews

Enforcement Decree of Local Finance Act Amendment to be Promulgated and Enforced on the 7th
Less than 30 Billion KRW for Provinces and Less than 20 Billion KRW for Cities and Counties

From now on, local governments will be able to independently review the feasibility of regional issue projects they promote. This is a significant expansion of local governments' authority over financial investment projects as a follow-up measure to the 'Improvement Plan for the Local Finance Investment Review System.'

The Ministry of the Interior and Safety announced on the 6th that the amendment to the 'Enforcement Decree of the Local Finance Act,' which expands local governments' authority to conduct independent reviews of local finance investment projects, will be promulgated and enforced on the 7th.

The local finance investment review system is designed to prevent redundant investments by having the Ministry of the Interior and Safety or local governments review the necessity and feasibility of projects before budget allocation. With this amendment, the scope in which local governments can conduct reviews independently without undergoing the Ministry's review is expanded.

First, when local governments promote projects such as cultural and sports facilities, new government office buildings, festival-type events, and promotional center construction using their own funds, metropolitan cities and provinces can independently review projects under 30 billion KRW, and cities, counties, and districts can do so for projects under 20 billion KRW. Regarding guarantees or agreements that may impose financial burdens on local governments in the future, only projects with contingent liabilities exceeding 10 billion KRW for metropolitan cities and provinces, and 5 billion KRW for cities, counties, and districts will be subject to central investment review. For 'joint cooperation projects' where two or more local governments share financial responsibilities, projects with a total cost under 50 billion KRW can be independently reviewed.

Ko Gi-dong, Vice Minister of the Ministry of the Interior and Safety, stated, "Through the amendment of the enforcement decree, the authority and responsibility of local governments regarding financial investment projects will be expanded. We will support local governments, who best understand regional conditions, to independently review and judge the feasibility of projects so that regional issue projects can be promptly promoted and the local economy revitalized."

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