• The Journal of the Korea Contents Association
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• v.14 no.7
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• pp.161-168
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• 2014

This paper with Korean to promote decentralized countries, considered previous studies related to decentralization. Next, with target scholars and professionals looked at the evaluation of the degree of decentralization and the direction. Last deduced the task of decentralization. The decentralization task is first, expansion of organizational autonomy. The organization of local government determined based on the content of the job is desirable. Second, the personnel operating is secured autonomy. Local government officials and staff is independent and uniformly control. And it is necessary to recruit such as checks and supervision of the relevant local councils and civil society. Third, the financial decentralization is the expansion. The expansion of fiscal decentralization First, determined the expansion of municipal law prescribed by the regulations within the scope of local autonomy. Next, the local switch through national expansion of fiscal decentralization is necessary. In addition, the expansion of fiscal decentralization need the expansion of the local income tax and the expansion of local consumption tax.

• 지역과문화
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• v.8 no.4
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• pp.23-42
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• 2021

This article examines the legal measures to establish the financial independence of the Local Cultural Centers(LCCs) by the revision of Promotion of Local Cultural Centers Act(PLCC Act) to allow profit-making activities of LCCs. For the past 70 years, LCCs have been the core of local culture, but they have not been financially independent and have survived through government subsudues and support funds. Its weak financial structure that depends on the subsidies makes it difficult to carry out the essential business and threatens sustainability. Legally, LCCs are special corporations which established in accordance with the PLCC Act, and their legal status and functions are stipulated in accordance with the laws governing their establishment. The current PLCC Act does not stipulate that the LCC may conduct profit-making business other than the essential business. However, compare to the other special corporations which established by their own legislatives, it is understood that the PLCC Act can also provide regulations related to the profit business of LCCs. This article presents legal drafts for PLCC Act and suggests other necessary discussions for financial independence of LCCs.

• KDI Journal of Economic Policy
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• v.26 no.2
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• pp.105-141
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• 2004

The success of fiscal decentralization depends on an effective intergovernmental transfer system. This paper focuses on the Local Share Tax(LST), the primary intergovernmental fiscal transfer in Korea. The LST, by law, aims to mitigate horizontal fiscal imbalance among the local governments. As an attempt to test the fiscal equity of the LST empirically, net fiscal benefits of each county are calculated based on a simple model. While the LST contributes to horizontal fiscal measured traditional inequality indices, a geographical pattern of net fiscal benefits is observed. From these findings, the role of LST on fiscal equity needs to be carefully re-examined.

• Korean Public Administration Review
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• v.48 no.3
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• pp.437-461
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• 2014

최근 재정건전성에 관한 논의가 확산되면서 비과세·감면제도는 유용성 관점에서 근본적인 변화를 요구받고 있다. 그럼에도 불구하고 정부는 경기부양 등 지역경제 활성화 도모차원에서 비과세·감면제도를 지속적으로 활용하고 있다. 이에 본 연구는 비과세·감면의 경제적 효과에 관한 분석의 필요성을 제기하며, 이를 위해 강원도 18개 시·군을 대상으로 지방세 비과세·감면이 지역경제에 어떠한 영향을 미치고 있는지에 관해 패널분석(PCSE)을 수행하였다. 패널분석 결과, 비과세·감면, 비과세, 감면 등이 지역경제에 미치는 영향은 다양하게 나타난다. 시 단위 지방자치단체의 경우 비과세·감면 규모가 증가될수록 지역경제에 정(+) 영향을 미치고 있다. 반면 군 단위 지방자치단체의 경우 변수 간 통계적으로 유의미하지 않아 비과세·감면정책이 지역경제를 활성화할 것이라는 정부의 주장은 다소 설득력이 낮다. 시 단위 지방자치단체의 경우 감면총액과 감면(조세특례제한법, 감면조례)규모가 증가될수록 지역경제에 정(+)의 영향을 미치지만, 지방세법 상 감면규모가 증가될수록 지역경제에 부(-)의 영향을 미치고 있다. 한편 군의 경우 지방세법 상감면규모가 증가될수록 지역경제에 정(+)의 영향을 미치지만, 감면조례에 근거한 감면규모가 증가될수록 지역경제에 부(-)의 영향을 미치고 있다. 분석결과에 근거한 정책적 함의는 다음과 같다. 정부는 지역경제 활성화를 위해 비과세·감면을 시행하면서 지방세수확충을 위해 또 다른 재정보전을 하고 있으나 지역경제에 미치는 영향이 그리 크지 않고 명확하지 않다. 따라서 비과세·감면의 규모를 줄이고 세수 확충을 통한 재정지출을 고려해야 한다. 특히 시 단위 지방자치단체의 경우 지방세법상 감면제도를 정비할 필요가 있고, 군 단위 지방자치단체의 경우 감면조례에 근거한 감면제도를 정비할 필요가 있다.

• KDI Journal of Economic Policy
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• v.13 no.2
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• pp.41-67
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• 1991

Local autonomy of Korea's lower-level local council has been reinstated following elections last March for the first time in thirty years. Last June, we had elections for the upper-level local council. Mayors, governors, and administrative chiefs of cities, provinces and other local government bodies are slated for elections in the first half of next year. The impacts of local autonomy are taking effect in not only the political sphere, but also the administrative and economic spheres. In fact, it seems that some modification of all economic policy making and administration is inevitable. Since the initiation of local autonomy, in order to make the economy work more efficiently, it has become quite important to examine the impact of local autonomy on the national economy. The areas of local autonomy include independent legislative power, administrative power, organizational power, and most important of all, the independent public financial power of the local governments. The purpose of this paper is to examine the effects of local autonomy on the national economy and ways of enhancing the role of local public finance to facilitate settlement and development of the local autonomy system. Local autonomy will contribute to the continuous growth of our economy, allow balanced development, and generate greater efficiency. However, local autonomy can also incur economic costs causing at times short-term price instability, inefficient resource allocation, through tax competition and tax exporting, and insolvency of local government due to abusive fiscal operation. To reduce these side effects, different alternatives must be considered. Local autonomy systems generally provide more efficient resource allocation than centralization. But in the model used in Chapter 3 of this paper, the relative efficiencies of both local autonomy and centralization are determined by comparing the elasticity of substitution between national public goods and local public goods. If the elasticity of substitution is bigger than one, centralization provides a more efficient resource allocation. The development of local autonomy could be attained through democratization of the local public finance system including the following three propositions. I) The independence of public financial power of local governments should be established over central government. Furthermore, a democratically operated scheme of intergovernmental fiscal coordination is especially necessary. 2) In the operation of local finance, direct democracy is needed to induce the voluntary participation of local residents. The residents can take part in planning both the local budget and the development of the community. To attain this goal, all the results of local finance operations should be made public. 3) Among economic ill-effects of the local autonomy system, the most serious one is the possibility of insolvency of local governments. Therefore, measures to limit abusive spending by the local governments should be introduced, such as the fiscal restraints system adopted in the United States.

• Journal of the Korean Geographical Society
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• v.43 no.4
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• pp.580-598
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• 2008

Focusing on 'growing together' strategies through horizontal fiscal equalization systems, this and subsequent papers aim to suggest regional co-development strategies in which conflicts between the Seoul Metropolitan Area(SMA) and the non-SMA can be efficiently alleviated. Regarding the socio-economic relationships between the SMA and the non-SMA, there are two contradictory perspectives. One perspective is that the SMA grows at the expense of the non-SMA. The other perspective is that non-SMA's economy is somehow entirely dependent on the economic activities occurring within the SMA, which is the opposite of the former perspective. There are various forms of collaboration among local or regional governments, but the most radical solutions involve the establishment of new regional development financing method at the practical level. This paper suggests that horizontal fiscal equalization not yet introduced between same level subgovernments need to be institutionalized to promote the growing together between the SMA and the rest region of Korea.

• KDI Journal of Economic Policy
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• v.31 no.1
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• pp.27-69
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• 2009

This paper studies the logic of fiscal constraints and fiscal autonomy in a political agency model with both moral hazard and adverse selection. The electoral process not only disciplines incumbents who may act against the public interest but also opts in politicians who are most likely to act along voters' interests. We characterize perfect Bayesian equilibria under shared tax system and fiscal autonomy with fiscal constraints for local public good provision. It is shown that the local voters' expected welfare under fiscal autonomy is higher than under shared tax system if the same fiscal constraints are applied. In order to examine the effects of party's candidate selection processes on the behavior of local politician and national politician, we extend the model to an environment where local politician can compete for the candidacy of national assembly with incumbent national politician. If local politician wins majority of votes against incumbent national politician, then he can move on to serve as a national politician. Otherwise, his political career will end as a local politician. It is the gist of this primary system portrayed by this setup that local politician and national politician compete to garner more votes. Therefore, primary system as a candidate selection mechanism enhances local residents' welfare compared to top-down candidate selection processes.

• Journal of the Korean Regional Science Association
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• v.35 no.1
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• pp.33-46
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• 2019

In the previous literature, there have been many attempts to probe the relationship between fiscal decentralization and regional balanced development. Much of the literature on this issue argued that the balanced development could be achieved by deviating power from central government to local government. However, several research has raised concerns about the relationship between the two, showing that decentralization could serve as a factor which could further exacerbate the regional imbalance. In particular, they insisted that most of the local taxes that due to the promotion of fiscal decentralization may be concentrated in the metropolitan area. The aim of this study is to verify the hypothesis that the net effect of decentralization promotion may be different depending on local governments' financial conditions. The empirical analysis of this study showed that local government could expand local taxes of about 18 trillion won if the fiscal decentralization was realized. However it was also be found that fiscal decentralization have shown the decrease in the local taxes.

• 한국사회복지학회:학술대회논문집
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• 2004.06a
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• pp.183-212
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• 2004

지식기반 경제체제로의 전환과 맞물려 지속 가능한 국가 성장동력을 위해서는 사회적 기반 확충이 중요하다. 따라서 사회투자정책은 적당한 수준에서 소비적 지출이 아닌 "성과에 책임지는 최적의 투자" 관점으로 접근되어야 한다. 이를 위해서는 사회개발과 경제개발의 균형있는 예산자원배분, 사회정책 부문간 균형있는 재원배분이 필요하다. 또한 프로그램 구조 전체를 전제로 하는 결과 지향적 성과관리와 납세자 책임 노력이 요구된다. 마지막으로 사회 복지재정 부담과 관련하여 중앙과 지방정부간 합리적 재정관계를 모색해야한다. 최근의 정책환경 변화를 고려하여 지방교부세와 국고보조금 제도를 중심으로 한 지방재정지원체계를 개편해야 한다. 사회투자정책의 추진과정에서 관련부문간 재정적 갈등 쟁점이 발생할 수 있다. 예상되는 이해관계 상충부문들에 대한 합리적인 갈등관리 방안들이 사전에 마련되어야 한다.

• Proceedings of the Korea Contents Association Conference
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• 2013.05a
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• pp.175-176
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• 2013

일본 오사카 센난 지역에 위치한 이즈미사노시(泉佐野) 재정위기는 1994년 간사이국제공항을 건설하면서 시작하였다. 공항 개항에 맞추어 시립 이즈미사노시 병원 등 대규모 개발사업 추진 중 이용자 감소와 심각한 경기 침체로 세수가 늘지 않고 재정이 악화되자 위기를 맞게 되었다. 본 논문은 일본 오사카부 이즈미사노(泉佐野) 시 지방재정 위기 극복사례 중심으로 시사점을 제시하고자 한다.