Sokcho City Lowers Barriers for Dedicated Local Subsidy Accounts...Expands Choice of Financial Institutions

Sokcho City Makes Sweeping Improvements to Local Subsidy Account Management System
Expanded Financial Institutions to Enhance Choice and Convenience for Local Subsidy Project Operators

Sokcho City in Gangwon Province is moving to improve the institutional framework for operating dedicated local subsidy accounts, in order to expand the choice of financial institutions available to local subsidy project operators and to guarantee participation opportunities for a wider range of financial institutions.

View of Sokcho City Hall.

Until now, dedicated local subsidy accounts were limited to the city treasury bank, which led to ongoing complaints from local subsidy project operators about restrictions on opening accounts and using financial services, as well as inconvenience in the field.

Accordingly, on the 12th, Sokcho City held a "Local Subsidy Dedicated Account Work Agreement Ceremony" in the situation room at City Hall, with a total of nine heads of institutions in attendance. These were from financial institutions other than the municipal treasury bank within the jurisdiction: Jungang, Nambu, Seorak, Bukbu, Dongmyeong, and Geumgang Saemaeul Geumgo, Sokcho and Daepo Suhyup, and Sokcho Credit Union.

In accordance with the guidelines of the Ministry of the Interior and Safety, even if multiple financial institutions exist within the same cooperative as regional cooperative financial institutions in the form of separate corporations, once one financial institution signs the agreement as a representative, local subsidy project operators can use not only the institution that signed the agreement but also other financial institutions belonging to the same cooperative.

This agreement was concluded in a format in which one representative from each participating financial institution signed it. Chairman Han Sanggi of Jungang Saemaeul Geumgo, Chairman Park Hyecheol of Sokcho Suhyup, and Chairman Yoo Hyeonjae of Sokcho Credit Union signed on behalf of their respective financial institutions.

Under the agreement, participating financial institutions will be involved in the entire process of executing local subsidies, including the opening and management of dedicated local subsidy accounts and dedicated cards, linkage with the Local Subsidy Integrated Management System (Botam-e), and systematic management of subsidy execution records.

In particular, with the participation of community-based financial institutions improving accessibility, the time and location constraints on local subsidy project operators are expected to be reduced, and the resulting convenience in use is expected to be clearly felt in the field.

Sokcho City explained that diversifying dedicated local subsidy accounts is significant in that it is an open operating structure that grants participation opportunities to financial institutions that meet eligibility requirements, rather than a method that promotes competition or ranking among financial institutions.

The city also designed the system so that the existing procedures for subsidy execution and settlement, and the standards for supporting documentation, are maintained as they are, thereby minimizing confusion in the field caused by the institutional improvement and minimizing any additional administrative burden on local subsidy project operators.

Sokcho Mayor Lee Byeongseon stated, "This institutional improvement is an active administrative measure to resolve inconveniences for local subsidy project operators and to broaden their choices," adding, "We will continue to pursue reasonable, field-centered institutional improvements through cooperation with local financial institutions."

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