South Korea launches task force to normalize fiscal management, boost transparency

The government has launched a task force to correct what it called irrational systems and practices in fiscal management, aiming to strengthen transparency and efficiency. The effort will focus on tightening oversight of fraudulent receipt of national treasury subsidies and normalizing research and development investment, among other reforms.

The Planning and Budget Office said it held the first meeting of the “Fiscal Management Normalization Task Force” on Thursday afternoon at the Fiscal Information Service, chaired by Vice Minister Lim Ki-geun.

The task force was formed as part of the Lee Jae-myung administration’s “national normalization project,” which seeks to build what it describes as a country grounded in fundamentals. It will review and improve inefficiencies and unreasonable practices that remain in fiscal operations. Lim will lead the group, which includes three director-level officials from the office and six private-sector experts in public finance.

Last month, President Lee Jae-myung called for fair, transparent and rational reforms across society, saying the country must end an era in which breaking rules brings benefits while following them brings losses. He instructed ministries to identify and pursue tasks to “normalize the abnormal.”

At Thursday’s meeting, participants discussed priority tasks based on ideas developed by the office’s working-level staff and proposals from outside experts. They agreed to focus on steps to improve fiscal transparency and effectiveness, including stronger controls against improper subsidy claims; normalizing R&D investment and restoring trust; and creating a public-interest reporting incentive fund to encourage reporting of wrongdoing such as stock manipulation and collusion.

“Planning Office is an institution that oversees public finances beyond individual fiscal projects,” Lim said. “We will continuously review and improve fiscal management until the public is satisfied, and ensure people can feel changes on the ground.”

The office said it will finalize the list of tasks after consultations with related agencies, including the Office for Government Policy Coordination. At a second meeting scheduled for early June, it plans to review progress by task and disclose related results to the public.