SEOUL: Finance Ministry has said that it will set up a new management information division as part of its efforts to strengthen oversight of public corporations in the country. The ministry will also enhance the evaluation of the use by government of tax revenues, as it aims to maximise operational efficiency and ensure taxpayers’ moneys are not wasted.
The Finance Ministry’s announcement is part of the government’s effort not to raise taxes further in an economy that slowed significantly in 2014 and where the scope for tax rises is limited. The taxes will only be raised if all other efforts to reduce excess spending have been exhausted, the Finance Ministry said. South Korea no doubt has eyes on the recent experience in Japan where an increase in sales tax in 2014 had a substantial and negative effect on consumer spending and overall economic growth.
The All Public Information in One (ALIO) system will also be revamped to allow the South Korean public to monitor public corporations’ activities, including wages and new hiring. Transparency of the large corporations and chaebol, the family own networks of companies, has been a key political issue. The changes that the Finance Ministry mentioned will take effect within this month, Yonhap news agency reported.
