The FY2014 governmental support for 316 public institutions was reported as KRW 57.5 trillion as of June 2015. In addition, the debt of public agencies in 2014 stood at KRW 520.5 trillion, 98.1% of the national debt of KRW 530.5 trillion.

  Public institutions perform programs, as stipulated in laws and regulations, with diverse income sources such as government funding, contributions, non-subsidy shares, consignment and monopoly income, and other revenues. However, as the National Assembly’s review on the account settlement of public agencies is focused on government-funded, -contributed, or -subsidized projects, it poses a limit to deliberating the account closings of entire programs.

  Therefore, this report has conducted a comprehensive assessment on major programs of public institutions and an in-depth analysis on their financial reliability and persistence to support the National Assembly’s review on the settlement of accounts.

  The “core assessment” stresses that as the debts of 18 core institutions for debt control have been on the rise, the responsibilities of the ministries in charge should be toughened for the growing debts discovered through the segment accounting system. Furthermore, the current management evaluation scheme restricts the autonomy of these institutions and offers poor consulting services, and therefore, it requires improvement to promote the autonomy and enhance responsible management. Since the essential business unit of the segment accounting scheme includes KRW 113.2 trillion of programs related to the government’s utility bills and compensation for deficits, programs should be subdivided by policy or essential unit. Otherwise, this would add confusion in determining which department is responsible for a certain debt. In order to avoid overestimating the feasibility of overseas resource development projects, their assessment needs to be more consistent, rigorous, and professional.

  According to the “institution evaluation,” it is pointed out that Korea Expressway Corporation should implement a database of transportation SOC investment programs to reduce error in their demand forecasts. The Korea Sports Promotion Foundation needs to finance the over-accumulated reserves for losses and facility environment improvement with its fund and establish a regulation framework on issuing more Sports Toto tickets. K-sure is required to amend laws relevant to the risk management of the trade insurance fund, and the Health Insurance Review & Assessment Service should loosen its rigid standards on anticancer drug coverage and expand the access of patients to expensive anticancer drugs. Korea Agro-Fisheries & Food Trade Corporation needs to forge a measure to adjust the interest and commission rates of its loan programs, while also considering a restructuring plan of the comprehensive fund for the food industry based on a fact-finding survey on the demand for the fund.