The Korea Local Administration Review

The local government investment appraisal system in Korea has come intoeffect in 1992. It leads planned and effective use of financial resources andreduces overlapping investment for local governments. The manual of thissystem groups the type of objects into five categories. However there is onlyone screening criterion in the manual. In order to make the appraisal systemmore effective, the review system by category should be introduced. Eachcategory should have its own specific screening criteria. In particular thegovernment office building category needs a special screening criterionconsidering its distinct characteristics from other categories. A governmentoffice building is essential for governing but does not have any financial profitfrom it. Therefore economic feasibility test can not be applied for this category.However evaluating relevant scale of the building is important. This papershows new appraisal standards of relevant scale test for government officebuilding category. The new standards from this paper can contribute to makethe local government investment appraisal system more effective.
□ Keywords: local government investment appraisal system, review system bycategory, relevant scale for government office building