Basic Report

The purpose of this study is to analyze the changes in the financial environment and the current status of the investment review system and current improvement plans to operate the local investment review system suitable for the changing financial environment. This study considers connectivity with other institutions and the improvement of the local financial investment review system itself. This study suggests improvement measures suitable for financial environment change in terms of fiscal soundness and financial efficiency.
   The analysis of domestic and foreign economic conditions, COVID-19, population structure changes, government real estate policies, Korean version of the New Deal, fiscal decentralization, and decentralization was conducted. Among them, decentralization and fiscal decentralization are positive changes in that they expand the autonomy and responsibility of local governments simultaneously as fiscal expansion. On the other hand, sluggish economic conditions at home and abroad, the spread of coronavirus infections-19, changes in population structure, government real estate policy and housing sales lock-down phenomenon, and the Korean version of the New Deal are negative changes.
   According to the investment review analysis, the total number and amount of investment reviews, including self-examination, higher government(metropolitan city and province) request examination, and central request examination conducted by 243 local governments nationwide from 2015 to 2019, are increasing. The number of central investment reviews from 2015 to 2019 has been on the rise again since 2019, after continuing to rise from 2015 to 2017, but falling sharply in 2018. From 2015 to 2019, the ratio of central investment reviews to total investment reviews has continuously decreased. Looking at the number of metropolitan cities and provinces examination and the number of self-examination cases in cities, counties, and districts from 2016 to 2019, the number of cases of examination continued to rise from 2016 to 2019. Compared to the total number of investment reviews from 2016 to 2019, the passengers’ ratio, including appropriate and conditions, was around 90%. However, the passing rate increases separately from the central examination to the city and the district’s examination. From 2017 to 2019, the proportion of private members among local government investment review committee members has continuously increased.
   In analyzing the local financial investment review system, the analysis was conducted through components such as the amount and project subject to the investment review, investment review procedures and systems, investment review criteria and methods, feasibility studies, and the linkage and effectiveness of the investment review system. This study derived a plan to improve the local financial investment review system according to the financial environment changes through the public official awareness survey and FGI.