Reform of local share tax system, expansion of disaster safety network
Reform of the 2nd-phased government organization and function

The Ministry of Public Administration and Security (MOPAS, Minister Sei-Hoon Won) has decided to actively participate in the Lee Myung-Bak government's biggest task to revive economy and persistently push for small and effective government structure.
To this end, it will save about 12 trillion won or 10% of the total local budget and invest the amount in assisting corporate logistics and improving structure of the traditional market. Along with this, it plans to reform the local share tax system to help local governments attract enterprises, extend financial assistance to small and medium-sized companies and support infrastructure of regional economy.
Following the first-phased reform of government function and organization, it has decided to continuously push for the second-phased reform of government function and organization, including local governments and various committees. It also decided to expand disaster safety network and establish lawful order strictly.
The Ministry of Public Administration and Security reported the ministry's business plans and detailed schedules to carry out them, including these contents, to President Lee Myung-Bak on March 15.
In the business briefing to President Lee held at the Seoul Provincial Police Agency at 7:30 a.m., Minister Sei-Hoon Won expressed his strong will to exert best efforts to "realize advanced top-class country" through close cooperation between central and provincial governments.

Central and provincial governments to make concerted efforts to activate regional economy

MOPAS has decided to intensively improve a contract system that has great effects in saving budget as a means of reducing 10% of local budget.
Firstly, it will establish a department exclusively dealing with contract screening, including professional cost screening, in cities and provinces and introduce a contract system for continuing expenditure to prevent delay of the term of works requiring several years. It also decided to expand the implementation scope of minimum successful bid system from the present over 30 billion won to over 10 billion won.

To systematically support a 10% cut in local budget, it will find out budget-saving cases through application of new construction method and prevention of overlapping investment and budget-wasting cases through pork-barrel projects, setup of luxurious government offices and overlapping facilities, while directly visiting local governments to offer consulting service.
In case of calculating the present ordinary share tax, it plans to make an upward adjustment of the demand portion of regional economy from 24.5% to 30%, linking operation of special share tax and real estate share tax with activation of regional economy.
By preparing financial sources for "share tax for regional development," it will support local governments' efforts to activate regional economy, including voluntary attraction of enterprises and job creation.

To reform special local administrative institutions and committees, along with reform of local governments' function and organization

MOPAS plans to remodel local governments' function and organization after reflecting the purpose of organizational reform of the central government.
It will effectively reform local governments' organization related to economy, welfare, and culture and entrust corporations or private sector with the business function, including piped water, while reducing the number of public servants in regions with population decreasing.
It also plans to reform special local administrative institutions whose functions are overlapped with those of local governments.
This year, it will select sectors with greater effects in transferring to local governments as the objects for reform and transfer other sectors to local governments next year through function analysis, while widening organization and diminishing class.
It also decided to abolish committees which were created to avoid responsibility through full-scale reinvestigation, and enacted the "law concerning management and operation of government committees" to systematically prevent reckless establishment of committees in the future.
In the meantime, it plans to fully reinvestigate operation status of existing committees and reduce their operational expenditures gradually.
It also projects to regularly conduct diagnosis on organization, persistently find out fields subject to manpower cut, reflect the manpower reduction plan to mid-term manpower management plan in order to keep the basis of the "small government."

To improve public servants' pension system and reform system for senior public officials' group

Under the judgment that the system for senior public officials' group, which was introduced for opening and competition in the bureaucratic society, has a possibility of restricting each minister's personnel management right and leading to appointment through favoritism in the course of operating the system, it decided to reform it.
As a result, it plans to restrict the excessive change in more than three job degrees this year and diminish the job degree according to the organization class next year.
Along with this, it plans to transfer the management function, excluding appraisal of capability and qualification screening of senior public officials' group to each ministry to help it secure autonomy in personnel operation. By shortening the public subscription period from the present 17 days to 10 days, it plans to prevent the progress of employment procedure from being delayed.
Public servants' pension fund imposes burden on pension finance owing to aging population and an increase in the number of pension receivers and the government makes up for shortage of pension with the state preserved money, aggravating burden on state finance. Accordingly, it decided to drastically improve public servants' pension system.
To stabilize pension finance, it plans to reform it into a demand and supply structure like national pension for newly employed and redesigns the system for incumbents in such a structure of paying more and receiving less. It plans to reduce the government's burden in the future by supplying part of profits from fund to pension finance, and fix the government's draft after passing through negotiations with relevant ministries, as well as submit it to the National Assembly in June this year.


To supplement support system for disaster victims, prepare an advanced system to cope with disaster

It has decided to expand the insurance system for damage from storm and flood from 31 cities and gun to nationwide and expand the scope of insurance to the disaster dead zone, including factories and shopping districts.
To solve problems related to assistance for living cost of residents in Taean, which had been delayed, it has decided that the central government will directly set the standard on payment for living cost in the future.
Along with this, to solve problems stemmed from the course of putting down the fire at Sungnyemun, it plans to build an advanced fire suppression system that offers information on building structure, plumbing & wiring location and emergency exits to relevant institution through 3D in June this year on a pilot case.

Establishment of strict lawful order

To create climate where people can keep lawful order well, it will revamp irrational traffic facilities and signal systems, including signal lamps and signs, from March. It will also prosecute those hampering government officials in the execution of duties, regardless of whether it is a trivial matter or not.
To help policemen exercise proper rights in demonstration site, it also decided to establish a corps comprising policemen instead of riot police to arrest illegal demonstrators and dispatch the corps to the front side of illegal demonstration spot.
To remove "group, sentiment law" culture from illegal demonstration site, it plans to prosecute those engaged in illegal activities without exception, including civil compensation for damages (provisional seizure) and summary trial (detention). It also plans to expand the limit on extension of state subsidy to groups staging illegal demonstration activities.
Minister Sei-Hoon Won said, "The Ministry of Public Administration and Security will carry out major state affairs without fail in keeping with the inauguration of the new government and become a leading government agency to make the nation a top-class country serving people."