Ministry of Strategy and Finance, the largest restructuring in the history of government subsidized projects… Abolition/reduction of 261 projects

Ministry of Strategy and Finance, the largest restructuring in the history of government subsidized projects… Abolition/reduction of 261 projects

Provided by: Ministry of Strategy and Finance

[e대한경제=이재현 기자]The government will carry out the largest-scale restructuring in the history of subsidized projects subject to evaluation this year. Abolition, reduction, or consolidation of support for projects requiring low support among all evaluation target projects.

The Ministry of Strategy and Finance announced on the 29th that it had held the first subsidy management committee in 2022 presided over by 2nd Vice Minister Choi Sang-dae and decided to evaluate the extension of the subsidy business with these details.

As a result of the evaluation, the Ministry of Strategy and Finance decided to abolish, reduce, or consolidate support for 261 projects (52.2%) out of the total evaluation target projects (500 projects).

This is the largest restructuring in history in terms of the number of projects since the extended evaluation system was introduced in 2016.

First, 46 projects evaluated as having low need for government support will be abolished.

Among them, the project to create an empirical basis for a special zone free of regulation will be abolished immediately considering that no new special zone has been designated so far, and the KONEX market revitalization support project will be phased out to reflect the decrease in the number of KONEX listed companies.

The scale of 213 projects, including the traditional living culture promotion project, for which the actual execution rate has been only 51.3% for the past three years, will be reduced.

In particular, 67 projects with a high need for reduction undergo restructuring at a high level of 10% or more.

In addition, the project to improve the safety and service of wide-area buses with similar business objectives and support projects to strengthen publicity of wide-area buses will be integrated and abolished.

The final result of the evaluation of extension of the auxiliary project will be submitted to the National Assembly in early September along with the budget for next year.

The scale of the subsidy reduction will be determined during next year’s budgeting process.

“Considering the rapid increase in national debt due to recent expansionary fiscal management and the aging of Korea, it is important to balance the fiscal role and soundness,” said Vice Minister Choi.

Reporter Lee Jae-hyeon ljh@

〈ⓒ The Korea Economic Daily (www.dnews.co.kr), unauthorized reproduction, collection, and redistribution is prohibited.

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