Korean Local Finance

Chapter 1 Introduction
Section 1 Significance of Local Finance
1. Significance of Local Finance
2. Local Finance-related Laws
3. The New Normal Transition and Changing Environment
Section 2 Size and Composition of Local Finance
1. National Finance and Local Finance
2. Local Government Revenue
3. Local Government Expenditure
Section 3 Key Fiscal Indicators for Local Finance
1. Significance of Key Indicators in Local Finance
2. Fiscal Independence Index and Fiscal Autonomy Index
3. Fiscal Capacity Index

Chapter 2 Local Revenue and Own-Source
Section 1 The System and Status of Local Taxes
1. Significance of Local Taxes
2. System and Classification of Local Taxes
3. Size and Regional Distribution of Local Taxes
Section 2 Issues and Policy Challenges of Local Taxation
1. Structure of National Tax-Local Tax Revenue Share
2. Tax Price Principle and Taxation Sovereignty
3. Local Tax Non-Local Resources
Section 3 Local Non-Tax Revenue
1. Significance of Local Non-Tax Revenue
2. Categories of Local Non-Tax Revenue
3. Current Status of Local Non-Tax Revenue

Chapter 3 Local Revenue and Dependent Financial Resources
Section 1 Local Share Tax
1. The Purpose of the Local Share Tax
2. Composition and Funding of the Local Share Tax
3. General Share Tax and Adjustments
4. Policy Goals of Local Share Tax System
Section 2 Adjustment Grant and Regional Coexistent Development Fund
1. City & County Adjustment Grant
2. Autonomous District Adjustment Grants
3. Regional Coexistent Development Fund
4. Policy Goals of AG & RCDF
Section 3 Subsidy
1. The Purpose of Subsidy
2. National Subsidy Trends
3. The Rates of Subsidies in National Subsidy Projects
4. Balanced Regional Development Special Account
5. Policy Agenda in the Subsidy System

Chapter 4 Local Bond
Section 1 Definition and Types of Local Bonds
1. Definition of Local Bonds
2. Types of Local Bonds based on the Purposes
3. Types of Local Bonds with Bond Issuance Method
Section 2 Local Bond Management System
1. Management of Local Bonds by MOIS
2. Local Bond Management by Local Governments
Section 3 Future Tasks for Local Bond Management
1. Enhancing the Utilization Strategies of Local Bonds
2. Adoption of Specialized Techniques for Management
3. Governmental Support by the Central Government
4. Establishment of a Specialized Network

Chapter 5 Local Fiscal Management System
Section 1 The Purpose of a Fiscal Management System
1. Budget Management Process of Local Governments
2. Decentralization and Local Fiscal Management
Section 2 Pre-Budget System
1. The Mid-term Local Finance Plan
2. Feasibility Study and Local Financial Impact Assessment
3. Local Finance Investment Review
Section 3 Post-Fiscal Management
1. Local Finance Analysis System
2. Financial Crisis Management
Section 4 Subsidy and Local Fiscal Management
1. Political Economy of Subsidies
2. Management of National Subsidies by MOIS
3. Evaluation of Subsidy Project System

Chapter 6 Local Public Enterprises
Section 1 The Meaning of Local Public Enterprises
1. Significance of Local Public Enterprises
2. Types and Businesses of Local Public Enterprises
Section 2 Financial Situations of Local Public Enterprises
1. Financial Scale of Local Public Enterprises
2. Financial Soundness of the Local Public Enterprises
3. Political Economy of Debt and Public Fees
Section 3 Management of Local Public Enterprises
1. Local Public Enterprises Management Evaluation
2. Management Innovation Issues

Chapter 7 Value Budgeting and Financial Management
Section 1 Participatory Budgeting
1. Significance of Participatory Budgeting
2. Introduction of Participatory Budgeting
3. Issues of Participatory Budgeting
Section 2 Local Government Gender Budget System
1. Significance of the Gender Budget System
2. Main Contents of the Gender Budget Statement
3. Issues of the Gender Budget System
Section 3 Local Grant Budget Management
1. Significance of Local Grant
2. Local Grant Budget and Management
3. Issues in Managing the Local Grant Budget

Chapter 8 Social Welfare and Local Finance
Section 1 Welfare Decentralization and Local Finance
1. Local Finance and Social Welfare Expenditure
2. Local Finance as the Main Player in Welfare Policy
3. Welfare Decentralization and Local Finance
Section 2 Issues of Local Social Welfare Expenditure
1. Status of Welfare Expenditure in Local Finance
2. Issues in and Inter-Governmental Welfare Finance
Section 3 Reform Tasks for Welfare Finance
1. Guaranteeing Local General Revenue
2. Reorganization of the Standard Subsidy Rate
3. Establishment of the Next-Generation System

Chapter 9 Fiscal Decentralization and Intergovernmental Relations
Section 1 Significance of Fiscal Decentralization
1. Meaning of Decentralization and Fiscal Decentralization
2. Three Theoris about Fiscal Decentralization
3. Own-Sourcism and General Resourcism
4. History of Fiscal Decentralization
Section 2 Decentralization Share Tax
1. Significance of the Decentralization Share Tax System
2. Funding and Allocation Method for DST
3. Key Issues Regarding the DST
Section 3 Balanced Regional Development Special Account(BRD-SA)
1. Significance of the BRD-SA
2. Operational Framework
3. Implications of the BRD-SA and Fiscal Decentralization
Section 4 The Transfer of National Tax to Local Tax
1. The Moon Jae-in Administration’s Decentralization Initiative
2. Two-Stage Fiscal Decentralization
3. Characteristics and Policy Implications