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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Main Author:	Hyung-Kim, Jay
Format:	Public Investment Review
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	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
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
_version_	1764447619203989504

The Republic of Korea : PIM Reform after the Financial Crisis

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