Government has carried out ‘special local development zone program’ by legislating ‘regulatory exemption law on special local development zone’. This program aims at vitalizing local economy not by direct financial aid to local government but by ap-plication of regulatory exemption to the special local government zone. However, despite the usefulness of this program, this special local development zone program would cause waste of budget if this project is poorly implemented or fails. As of 2008, budget secured by central and local governments reached 1 trillion 699 billion won.
This report diagnoses overall drawback of the program and suggests recom-mendations in the view of financial efficiency.
Firstly, with regard to designation of special local development zone, correlation between regulatory exemption and special development zone should be examined, and then, the fact whether local government consults with central government or business partner in advance must be scrutinized. Secondly, most projects which are carried out in special development zone largely depend on financial support by central and local government, so that there is a high probability of wasting the bud-get. Therefore it is necessary for government to implement the program by associat-ing financial supports with examination of eligibility for designation and perfor-mance evaluation. Thirdly, Government needs to reflect the opinions from local government in the legislation process of regulatory exemption law and extends the scope of the regulatory exemption to achieve primary purpose of the program; vi-talizing local economy through regulatory exemption. Finally, It is recommended that government throughly inspects whether the countermeasures for poorly man-aged zone was taken or not properly. And also, comprehensive maintenance plans including the measures like revoking special development zone, should be prepared in case of being necessary.
This report diagnoses overall drawback of the program and suggests recom-mendations in the view of financial efficiency.
Firstly, with regard to designation of special local development zone, correlation between regulatory exemption and special development zone should be examined, and then, the fact whether local government consults with central government or business partner in advance must be scrutinized. Secondly, most projects which are carried out in special development zone largely depend on financial support by central and local government, so that there is a high probability of wasting the bud-get. Therefore it is necessary for government to implement the program by associat-ing financial supports with examination of eligibility for designation and perfor-mance evaluation. Thirdly, Government needs to reflect the opinions from local government in the legislation process of regulatory exemption law and extends the scope of the regulatory exemption to achieve primary purpose of the program; vi-talizing local economy through regulatory exemption. Finally, It is recommended that government throughly inspects whether the countermeasures for poorly man-aged zone was taken or not properly. And also, comprehensive maintenance plans including the measures like revoking special development zone, should be prepared in case of being necessary.