The Republic of Korea : PIM Reform after the Financial Crisis

The financial crisis that hit the Republic of Korea in the second half of 1997 had a devastating impact on its economy, causing the worst recession since the Korean War era. To address the fundamental causes of the crisis and revitalize the economy...

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Bibliographic Details
Main Author: Hyung-Kim, Jay
Format: Public Investment Review
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
AIR
TAX
Online Access:http://documents.worldbank.org/curated/en/2012/01/23068692/republic-korea-pim-reform-after-financial-crisis
http://hdl.handle.net/10986/21049
id okr-10986-21049
recordtype oai_dc
spelling okr-10986-210492021-04-23T14:04:00Z The Republic of Korea : PIM Reform after the Financial Crisis Hyung-Kim, Jay ACCOUNTABILITY ACCOUNTING AIR AIRPORT AIRPORTS APPROPRIATION BIDDING BIDS BONDS BRIDGE BUDGET ALLOCATION BUDGET DEFICITS BUDGET IMPLEMENTATION BUDGET PROCESS BUDGETARY PROGRAMS BUDGETING CAPITAL BUDGET CAPITAL FORMATION CENTRAL GOVERNMENT CENTRAL GOVERNMENT SPENDING CHECKS CONGESTION COST-BENEFIT ANALYSIS DEBT DECISION-MAKING DECISION-MAKING APPROACH DECISION= MAKING DECISION=MAKING DEFICITS DISBURSEMENTS DISCOUNT RATE ECONOMIC ANALYSIS ENGINEERS ENVIRONMENTAL COSTS EQUIPMENT EQUIPMENTS EXPENDITURE EXPENDITURES FINANCIAL ANALYSIS FINANCIAL CRISIS FISCAL EXPENDITURE FISCAL%BALANCE FUEL GOVERNMENT FUNDING GOVERNMENT SPENDING HIGHWAY HOUSING INFRASTRUCTURE INVESTMENT INSPECTION INSURANCE INTERNAL RATE OF RETURN INTERNATIONAL AIRPORT INVESTMENT EXPENDITURE LANES LEARNING LOAN LOCAL GOVERNMENTS MEDIUM TERM EXPENDITURE MEDIUM TERM EXPENDITURE FRAMEWORK NET LENDING NET PRESENT VALUE NOISE NOISE POLLUTION PENSION PERFORMANCE CONTRACTS PERFORMANCE MANAGEMENT PERFORMANCE MONITORING PERFORMANCE MONITORING SYSTEM POLITICIANS PROGRAM EVALUATION PUBLIC PUBLIC EXPENDITURE PUBLIC INVESTMENT PUBLIC SECTOR RAIL RAILROAD RAILWAY RAILWAYS REPAYMENT RETURN ROAD ROADS ROUTE SAFETY SAVINGS SELF-ASSESSMENT SELF=ASSESSMENT SELF=EVALUATION SETTLEMENT SIZE OF GOVERNMENT SOCIAL INSURANCE STRUCTURAL REFORMS SYSTEMS OF PERFORMANCE MANAGEMENT TAX TAXPAYERS TOTAL SPENDING TRAFFIC TRAFFIC ACCIDENTS TRANSPARENCY TRANSPORT TRANSPORT SECTOR TRANSPORTATION TRAVEL SPEEDS TRAVEL TIME TREASURY TUNNELS VALUATION VEHICLE VEHICLE OPERATION public expenditures government finance The financial crisis that hit the Republic of Korea in the second half of 1997 had a devastating impact on its economy, causing the worst recession since the Korean War era. To address the fundamental causes of the crisis and revitalize the economy, the Korean Government took bold, decisive steps to initiate comprehensive structural reforms. The major focus of reform in the fiscal and public sector was to adopt a series of initiatives for strengthening public investment management. The Government endeavored to instill a performance-oriented approach in the system, which implies management of public expenditure based on the principle of value for money. This chapter explains the institutional setting for public investment management (PIM) and the Korean Government s efforts to develop and manage a comprehensive PIM reform to further improve value for the money invested. The Ministry of Strategy and Finance played a leading role by implementing an effective appraisal and evaluation system to tighten the expenditure monitoring of total project cost and introducing a new budgeting system called the Medium Term Expenditure Framework. An initiative of the preliminary feasibility study (PFS), introduced in 1999 and conducted mainly by the public and private Infrastructure Investment Management Center, has been successful in handling the pass-or-fail bottleneck of the whole project selection process. The total project cost management system (TPCM), strengthened after the crisis, is working satisfactorily by discouraging the request frequency and the amount of TPC increases in line ministries. A reassessment study of feasibility is an innovative tool to control and keep the total project cost limit in the middle of TPCM. However, the performance monitoring and evaluation system on PIM still has room for improvement in Korea. A greater emphasis on program evaluation is being called for, with the Government currently establishing a performance-orientation, a greater use of performance contracts can be encouraged. 2014-12-31T15:57:01Z 2014-12-31T15:57:01Z 2012 http://documents.worldbank.org/curated/en/2012/01/23068692/republic-korea-pim-reform-after-financial-crisis http://hdl.handle.net/10986/21049 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Economic & Sector Work :: Public Investment Review Korea, Rep.
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTABILITY
ACCOUNTING
AIR
AIRPORT
AIRPORTS
APPROPRIATION
BIDDING
BIDS
BONDS
BRIDGE
BUDGET ALLOCATION
BUDGET DEFICITS
BUDGET IMPLEMENTATION
BUDGET PROCESS
BUDGETARY PROGRAMS
BUDGETING
CAPITAL BUDGET
CAPITAL FORMATION
CENTRAL GOVERNMENT
CENTRAL GOVERNMENT SPENDING
CHECKS
CONGESTION
COST-BENEFIT ANALYSIS
DEBT
DECISION-MAKING
DECISION-MAKING APPROACH
DECISION= MAKING
DECISION=MAKING
DEFICITS
DISBURSEMENTS
DISCOUNT RATE
ECONOMIC ANALYSIS
ENGINEERS
ENVIRONMENTAL COSTS
EQUIPMENT
EQUIPMENTS
EXPENDITURE
EXPENDITURES
FINANCIAL ANALYSIS
FINANCIAL CRISIS
FISCAL EXPENDITURE
FISCAL%BALANCE
FUEL
GOVERNMENT FUNDING
GOVERNMENT SPENDING
HIGHWAY
HOUSING
INFRASTRUCTURE INVESTMENT
INSPECTION
INSURANCE
INTERNAL RATE OF RETURN
INTERNATIONAL AIRPORT
INVESTMENT EXPENDITURE
LANES
LEARNING
LOAN
LOCAL GOVERNMENTS
MEDIUM TERM EXPENDITURE
MEDIUM TERM EXPENDITURE FRAMEWORK
NET LENDING
NET PRESENT VALUE
NOISE
NOISE POLLUTION
PENSION
PERFORMANCE CONTRACTS
PERFORMANCE MANAGEMENT
PERFORMANCE MONITORING
PERFORMANCE MONITORING SYSTEM
POLITICIANS
PROGRAM EVALUATION
PUBLIC
PUBLIC EXPENDITURE
PUBLIC INVESTMENT
PUBLIC SECTOR
RAIL
RAILROAD
RAILWAY
RAILWAYS
REPAYMENT
RETURN
ROAD
ROADS
ROUTE
SAFETY
SAVINGS
SELF-ASSESSMENT
SELF=ASSESSMENT
SELF=EVALUATION
SETTLEMENT
SIZE OF GOVERNMENT
SOCIAL INSURANCE
STRUCTURAL REFORMS
SYSTEMS OF PERFORMANCE MANAGEMENT
TAX
TAXPAYERS
TOTAL SPENDING
TRAFFIC
TRAFFIC ACCIDENTS
TRANSPARENCY
TRANSPORT
TRANSPORT SECTOR
TRANSPORTATION
TRAVEL SPEEDS
TRAVEL TIME
TREASURY
TUNNELS
VALUATION
VEHICLE
VEHICLE OPERATION
public expenditures
government finance
spellingShingle ACCOUNTABILITY
ACCOUNTING
AIR
AIRPORT
AIRPORTS
APPROPRIATION
BIDDING
BIDS
BONDS
BRIDGE
BUDGET ALLOCATION
BUDGET DEFICITS
BUDGET IMPLEMENTATION
BUDGET PROCESS
BUDGETARY PROGRAMS
BUDGETING
CAPITAL BUDGET
CAPITAL FORMATION
CENTRAL GOVERNMENT
CENTRAL GOVERNMENT SPENDING
CHECKS
CONGESTION
COST-BENEFIT ANALYSIS
DEBT
DECISION-MAKING
DECISION-MAKING APPROACH
DECISION= MAKING
DECISION=MAKING
DEFICITS
DISBURSEMENTS
DISCOUNT RATE
ECONOMIC ANALYSIS
ENGINEERS
ENVIRONMENTAL COSTS
EQUIPMENT
EQUIPMENTS
EXPENDITURE
EXPENDITURES
FINANCIAL ANALYSIS
FINANCIAL CRISIS
FISCAL EXPENDITURE
FISCAL%BALANCE
FUEL
GOVERNMENT FUNDING
GOVERNMENT SPENDING
HIGHWAY
HOUSING
INFRASTRUCTURE INVESTMENT
INSPECTION
INSURANCE
INTERNAL RATE OF RETURN
INTERNATIONAL AIRPORT
INVESTMENT EXPENDITURE
LANES
LEARNING
LOAN
LOCAL GOVERNMENTS
MEDIUM TERM EXPENDITURE
MEDIUM TERM EXPENDITURE FRAMEWORK
NET LENDING
NET PRESENT VALUE
NOISE
NOISE POLLUTION
PENSION
PERFORMANCE CONTRACTS
PERFORMANCE MANAGEMENT
PERFORMANCE MONITORING
PERFORMANCE MONITORING SYSTEM
POLITICIANS
PROGRAM EVALUATION
PUBLIC
PUBLIC EXPENDITURE
PUBLIC INVESTMENT
PUBLIC SECTOR
RAIL
RAILROAD
RAILWAY
RAILWAYS
REPAYMENT
RETURN
ROAD
ROADS
ROUTE
SAFETY
SAVINGS
SELF-ASSESSMENT
SELF=ASSESSMENT
SELF=EVALUATION
SETTLEMENT
SIZE OF GOVERNMENT
SOCIAL INSURANCE
STRUCTURAL REFORMS
SYSTEMS OF PERFORMANCE MANAGEMENT
TAX
TAXPAYERS
TOTAL SPENDING
TRAFFIC
TRAFFIC ACCIDENTS
TRANSPARENCY
TRANSPORT
TRANSPORT SECTOR
TRANSPORTATION
TRAVEL SPEEDS
TRAVEL TIME
TREASURY
TUNNELS
VALUATION
VEHICLE
VEHICLE OPERATION
public expenditures
government finance
Hyung-Kim, Jay
The Republic of Korea : PIM Reform after the Financial Crisis
geographic_facet Korea, Rep.
description The financial crisis that hit the Republic of Korea in the second half of 1997 had a devastating impact on its economy, causing the worst recession since the Korean War era. To address the fundamental causes of the crisis and revitalize the economy, the Korean Government took bold, decisive steps to initiate comprehensive structural reforms. The major focus of reform in the fiscal and public sector was to adopt a series of initiatives for strengthening public investment management. The Government endeavored to instill a performance-oriented approach in the system, which implies management of public expenditure based on the principle of value for money. This chapter explains the institutional setting for public investment management (PIM) and the Korean Government s efforts to develop and manage a comprehensive PIM reform to further improve value for the money invested. The Ministry of Strategy and Finance played a leading role by implementing an effective appraisal and evaluation system to tighten the expenditure monitoring of total project cost and introducing a new budgeting system called the Medium Term Expenditure Framework. An initiative of the preliminary feasibility study (PFS), introduced in 1999 and conducted mainly by the public and private Infrastructure Investment Management Center, has been successful in handling the pass-or-fail bottleneck of the whole project selection process. The total project cost management system (TPCM), strengthened after the crisis, is working satisfactorily by discouraging the request frequency and the amount of TPC increases in line ministries. A reassessment study of feasibility is an innovative tool to control and keep the total project cost limit in the middle of TPCM. However, the performance monitoring and evaluation system on PIM still has room for improvement in Korea. A greater emphasis on program evaluation is being called for, with the Government currently establishing a performance-orientation, a greater use of performance contracts can be encouraged.
format Economic & Sector Work :: Public Investment Review
author Hyung-Kim, Jay
author_facet Hyung-Kim, Jay
author_sort Hyung-Kim, Jay
title The Republic of Korea : PIM Reform after the Financial Crisis
title_short The Republic of Korea : PIM Reform after the Financial Crisis
title_full The Republic of Korea : PIM Reform after the Financial Crisis
title_fullStr The Republic of Korea : PIM Reform after the Financial Crisis
title_full_unstemmed The Republic of Korea : PIM Reform after the Financial Crisis
title_sort republic of korea : pim reform after the financial crisis
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2012/01/23068692/republic-korea-pim-reform-after-financial-crisis
http://hdl.handle.net/10986/21049
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