The Korea Local Administration Review

This study proposes alternatives to implement sound finance with graspingpeculiarity of the debt and clarifying occurrence reason, still non-proliferationof the debate, for the public corporation in the local public enterprisesestablished by the local government. The analyzed result of the debt peculiarityshows that the public corporation to develop tourism has the serious problemfor the debt in the classified public corporation as four-type by job characteristic.The reason of the debt increase of the public corporation to develop tourismare emerged that decrease of the tourist reasoned by economic downturn, thered ocean of industry caused by increased the tourism service supplier, difficultselection and focus under the raggle-taggle management, absence of the managementspecialist and moral hazard of the executive, the token project feasibilityanalysis and impractical implementation, and the insufficiency of managementand overseeing for sub-agent of agent. In here, therefore, alternatives promotingmanagement improvement by innovation are suggested that an appropriatefunctional redesign for the regional characteristics, acquirement of managementspecialist and employees' ethical, quality improvement strategies of the projectfeasibility analysis, expansion of consignment business participant, the cooperationwith the local government, and faithful securement of control mechanism.
□ Keywords: Local public enterprise, Debt, Fiscal soundness