The Ministry of Finance is set to comprehensively review issues raised during government audits over the past five years and make necessary adjustments to its policies and systems.
According to the Ministry of Finance on October 2, a total of five issues were highlighted in government audits conducted over the last five years, with four of them having been raised more than twice. The ministry is currently working on procedures to address these four issues by the end of the year.
To resolve the unauthorized occupation of public land, the ministry has expedited the notification of penalties through amendments to the internal regulations of the Korea Asset Management Corporation and is pushing for the establishment of a dedicated center to address unauthorized occupations. Additionally, to enhance the productivity of surveys, the ministry introduced artificial intelligence (AI) change detection technology in April. Plans are also in place to amend the Public Property Act by the end of the year to strengthen authority for identifying unauthorized occupants.
The ministry will also improve the accuracy of revenue forecasts, a concern that has been consistently raised. It has redesigned corporate tax forecasting models with technical assistance from the International Monetary Fund (IMF) and implemented an early warning system based on actual revenue performance.
This year, the Revenue Forecast Committee has been elevated from an advisory body to a deliberative body to enhance governance, and an AI-based model for estimating corporate operating profits has been introduced. Furthermore, to strengthen post-management, the National Finance Act will be amended to mandate a re-estimation in September.
Regarding tax expenditures, the ministry has noted ongoing issues with exceeding the statutory limits for national tax reductions. In response, it will conduct a comprehensive review of all tax expenditures and reform habitual reductions.
Finally, the prevention of tax avoidance by multinational corporations remains a matter requiring international consensus, and the ministry will continue to monitor this issue.
A ministry official stated, "We will continue to strive to ensure that the National Assembly's criticisms lead to substantial improvements in our systems and outcomes. We will also listen humbly to the issues raised during this year's government audit and actively seek improvement measures."
* This article has been translated by AI.
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