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Reforming the Public Expenditure System in Korea


  • Young-Sook Nam
  • Randall S. Jones


Although Korea has the second-lowest level of public spending among OECD countries at 22½ per cent of GDP, it faces strong upward spending pressures over the medium and longer term, which could threaten fiscal sustainability. This paper analyses the main features of Korea’s public expenditure system and reviews expenditure trends and the main forces behind them. The objective is to identify the major shortcomings in budget planning, management and control systems that have impeded better public sector performance. The paper concludes by proposing policy measures to enhance the effectiveness, efficiency and transparency of the public expenditure management system. These include managing public finance within a medium-term expenditure framework; making the budgetary system more comprehensive and transparent by consolidating special accounts and public funds and bringing extra-budgetary funds into the budget; introducing more flexible and results-focused public management to improve ... Réformer le système de dépenses publiques Bien que les dépenses publiques ne représentent que 22½ pour cent du PIB, ce qui place la Corée à l’avant-dernier rang des pays de l’OCDE, les fortes pressions pour un accroissement des dépenses à moyen et long terme pourraient menacer la viabilité budgétaire. Ce papier examine les spécificités du système de dépenses publiques en Corée et il passe en revue l’évolution des dépenses et ses principaux facteurs. Le but est d’identifier les faiblesses dans le système pour formuler, gérer et contrôler le budget, qui ont empêché un meilleur résultat dans le secteur public. On proposera en conclusion un programme de réformes pour améliorer l'efficacité, l'efficience et la transparence du système de gestion des dépenses publiques. Cela comprend ; gérer les finances publiques dans un cadrage des dépenses à moyen terme ; compléter le dispositif budgétaire et le rendre plus transparent en consolidant les comptes spéciaux et fonds publics et en intégrant les fonds hors budget dans le ...

Suggested Citation

  • Young-Sook Nam & Randall S. Jones, 2003. "Reforming the Public Expenditure System in Korea," OECD Economics Department Working Papers 377, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:377-en

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    Cited by:

    1. Young Lee & Changyong Rhee & Taeyoon Sung, 2006. "Fiscal policy in Korea: Before and after the financial crisis," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(4), pages 509-531, August.

    More about this item


    budget systems; Corée; dépenses gouvernementales; efficience du secteur public; government expenditure; intergovernmental relations; Korea; new public management; nouveau système de gestion publique; public sector efficiency; relations intergouvernementales; système budgétaire; système de dépenses publiques;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H1 - Public Economics - - Structure and Scope of Government
    • H4 - Public Economics - - Publicly Provided Goods
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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