BUDGETARY INCENTIVE REGULATIONS

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters necessary for the payment of budgetary incentives, etc. in accordance with Article 49 of the National Finance Act.

[This Article Wholly Amended on Dec. 30, 2011]

Article 2(Definitions) #

The terms used in this Decree shall be defined as follows:

1. The term "personnel reduction" means voluntary reduction of the fixed number of personnel in an organization of office or under relevant statutes:

2. The term "personnel expenses" means salaries, annual salaries, and good attendance allowances paid to public officials defined in Article 2 of the State Public Officials Act, and expenses determined by the Minister of Economy and Finance;

3. The term "ordinary expenses" means expenses for the maintenance and operation of each institution or facility, determined by the Minister of Economy and Finance;

4. The term "major business expenses" means expenses excluding personnel expenses and ordinary expenses.

[This Article Wholly Amended on Dec. 30, 2011]

Article 3(Scope of application) #

(1) This Decree shall apply to central government agencies defined in Article 6 (2) and (3) of the National Finance Act (hereinafter referred to as the "Act") and their subordinate organs.

(2) If bonuses, etc. are paid under the Public Officials Suggestion Regulations or other statutes (excluding the Public Officials Remuneration Regulations, the Regulations on Allowances, etc. for Public Officials, and other statutes relating to remunerating public officials), and the examination committee on budgetary incentives established under Article 5 recognizes that it is inappropriate to pay budgetary incentives under this Decree, the budgetary incentives shall not be paid for the same ground. <Amended on Dec. 27, 2016; Jan. 6, 2017>

(3) This Decree shall apply to budgetary incentives, except as otherwise provided for in other statutes.

[This Article Wholly Amended on Dec. 30, 2011]

Article 4(Requirements for expenditure curtailment and revenue growth) #

(1) The achievement of savings accrued from curtailment of expenditures (hereinafter referred to as "expenditure curtailment") that makes possible the payment of incentives under Article 49 (1) of the Act, means the achievement of either of the following cases through voluntary efforts:

1. Where the relevant agency keeps its expenses and has a budget surplus by personnel reduction, improvement in budget execution methods or systems, etc., while maintaining its work performance at or above the previous level;

2. Where the relevant agency fails to apportion or include its expected savings beforehand in its budgeting process.

(2) The achievement of savings accrued from revenue growth (hereinafter referred to as "revenue growth") that makes possible the payment of incentives under Article 49 (1) of the Act means the achievement of either of the following cases through dedicated efforts, such as creating new sources of revenue or improving relevant systems:

1. Where there is an increase in the national revenues (referring to all sources of revenue, such as national taxes, customs duties, and non-tax receipts, excluding income from the issuance of government bonds and borrowings);

2. Where there is an increase in the State property specified in Article 5 of the State Property Act.

[This Article Wholly Amended on Dec. 30, 2011]

Article 5(Establishment) #

The examination committee on budgetary incentives (hereinafter referred to as the "Committee") shall be established under the Minister of Economy and Finance to review payment of budgetary incentives, etc.

[This Article Wholly Amended on Dec. 30, 2011]

Article 6(Functions) #

The Committee shall deliberate on the following:

1. Matters on criteria and scopes to decide whether budgetary incentives are given;

2. Matters on targets for which whether budgetary incentives are given;

3. Estimating the amounts of expenditure curtailment and revenue growth;

4. Estimating the amount of budgetary incentives to be given;

5. Budgetary measures followed by the payment of budgetary incentives due to expenditure curtailment;

6. Other matters recognized by the Minister of Economy and Finance as necessary to undergo deliberation and submitted to the Committee for deliberation.

[This Article Wholly Amended on Dec. 30, 2011]

Article 7(Composition) #

(1) The Committee shall be comprised of 5 members, including 1 chairperson and 1 vice chairperson. <Amended on Oct. 4, 2022>

(2) The chairperson shall be the Vice Minister of Economy and Finance designated by the Minister of Economy and Finance, the vice chairperson shall be a public official in a position designated by the Minister of Economy and Finance, and 2 other commissioners shall be public officials in positions designated by the Minister of Economy and Finance and 1 commissioner shall be a public official in a position designated by the Minister of the Interior and Safety. <Amended on Oct. 4, 2022>

(3) If deemed necessary, the chairperson may allow the relevant public officials and experts to attend the meetings of the Committee and state opinions. <Added on Dec. 27, 2016>

(4) Where the chairperson deems it necessary to seek advice on professional or technical matters for the efficient operation of the Committee, he or she may establish and operate an advisory group composed of relevant experts. <Amended on Oct. 4, 2022>

(5) The chairperson may have members of the advisory group under paragraph (4) attend meetings or obtain their opinions in writing. <Added on Oct. 4, 2022>

[This Article Wholly Amended on Dec. 30, 2011]

Article 7-2 #

Deleted. <Oct. 4, 2022>

Article 8(Chairperson) #

(1) The chairperson shall convene and preside over meetings of the Committee.

(2) When the chairperson is unable to perform his or her duties due to unavoidable cause, the vice chairperson shall act on behalf of the chairperson; and when both the chairperson and the vice chairperson are unable to perform their duties due to unavoidable cause, such member as pre-designated by the chairperson shall act on behalf of the chairperson.

[This Article Wholly Amended on Dec. 30, 2011]

Article 9(Meetings) #

A majority of the members of the Committee shall constitute a quorum, and any resolution thereof shall require the concurring vote of a majority of those present.

[This Article Wholly Amended on Dec. 30, 2011]

Article 10(Executive secretary) #

(1) The Committee shall have 1 executive secretary.

(2) The executive secretary shall be appointed by the chairperson from among public officials of the Ministry of Economy and Finance.

(3) The executive secretary shall, by order form the chairperson, assist the Committee on administrative affairs and the examination of budgetary incentives.

[This Article Wholly Amended on Dec. 30, 2011]

Article 11(Allowances) #

Members of the advisory group who attend the Committee or submit opinions in writing under Article 7 (5) may be paid allowances and travel expenses within the budget.

[This Article Wholly Amended on Oct. 4, 2022]

Article 12(Detailed operating rules) #

Matters necessary for operating the Committee, other than those provided for in this Decree, shall be determined by the chairperson.

[This Article Wholly Amended on Dec. 30, 2011]

Article 13(Self-examination committee) #

The head of each central government agency shall establish and operate a self-examination committee (hereinafter referred to as "self-committee") as determined by the Minister of Economy and Finance, to deliberate on matters concerning formulating and implementing the plans for expenditure curtailment and revenue growth of the relevant agency, selecting the recipients of budgetary incentives, etc.

[This Article Wholly Amended on Dec. 30, 2011]

Article 14(Application for examination) #

(1) The head of a central government agency who intends to pay budgetary incentives shall calculate the amount of expenditure curtailment or revenue growth and request an examination of budgetary incentives to the Minister of Economy and Finance from January 1 to January 31 or from July 1 to July 31 every year, after undergoing examination by its self-committee; provided, the budgetary incentive examination shall not be requested after three fiscal years have elapsed since the fiscal year in which the expenditure curtailment or revenue growth occurred, except for the specific cases determined by the Minister of Economy and Finance. <Amended on Dec. 29, 2017>

(2) Deleted. <Dec. 29, 2017>

(3) The head of a central government agency shall prepare the following materials and plans before undergoing examination by its self-committee under paragraph (1): <Amended on Dec. 29, 2017>

1. Materials evidencing the relevant expenditure curtailment or revenue growth, such as improved financial statements;

2. Materials on those who contributed to relevant expenditure curtailment or revenue growth, such as main contributors or subcontributors;

3. Plans for executing budgetary incentives.

(4) The head of a central government agency shall submit the materials and plans specified in the subparagraphs of paragraph (3), when he or she requests a budgetary incentive examination to the Minister of Economy and Finance in accordance with paragraph (1). <Amended on Dec. 29, 2017>

[This Article Wholly Amended on Dec. 27, 2016]

Article 15(Scope of contributors to expenditure curtailment or revenue growth) #

(1) A person who has contributed to expenditure curtailment or revenue growth referred to in Article 49 (1) of the Act means any of the following person, who has directly contributed to the achievement of expenditure curtailment or revenue growth: <Amended on Feb. 12, 2016; Jan. 6, 2017; Jul. 11, 2022>

1. A public official belonging to a central government agency in which the expenditure curtailment or revenue growth occurred, or a public official belonging to any other central government agency;

2. An officer or employee of an agency delegated or entrusted with the administrative affairs of a central government agency under the Regulations on Devolution and Entrustment of Administrative Competence or other statutes;

3. A person who has made a citizen suggestion adopted under Article 52-2 of the Administrative Procedures Act and under the Citizen Suggestion Regulations;

4. A person who has reported on budget waste or proposed the prevention of budget waste to the head of a central government agency;

5. If members of an organization collectively try to achieve the expenditure curtailment or revenue growth, the minimum unit of the organization.

(2) A public official belonging to any central government agency, other than officials of the relevant central government agency in which expenditure curtailment or revenue growth occurred, shall obtain consent from the head of the relevant central government agency in which the expenditure curtailment or revenue growth occurred, in order to be recognized as a person who has contributed to the relevant expenditure curtailment or revenue growth.

[This Article Wholly Amended on Dec. 30, 2011]

Article 15-2(Receipt and processing of proposals, related to expenditure curtailment) #

Where the Minister of Economy and Finance receives a proposal, suggestion, or opinion related to expenditure curtailment or revenue growth from a citizen or receives a report on budget waste, etc., he or she may transfer such proposal, etc., for processing to the head of the relevant central government agency. <Amended on Feb. 29, 2008>

[This Article Wholly Amended on Dec. 28, 2005]

Article 16(Scopes of budgetary incentive scheme) #

(1) A budgetary incentive for expenditure curtailment shall be given to a person who has contributed to such expenditure curtailment within the following limits, which shall not exceed 60 million won per person: <Amended on Dec. 27, 2016>

1. In cases of saving personnel expenses from personnel reduction, the amount of annual personnel expenses for the reduced workforce;

2. In cases of saving ordinary expenses, 50 percent of the saved expenses;

3. In cases of major business expenses, ten percent of the saved expenses.

(2) A budgetary incentive for revenue growth shall be given to a person who has contributed to such revenue growth in the range of ten percent of the amount of such growth, which shall not exceed 60 million won per person. <Amended on Dec. 27, 2016>

(3) Notwithstanding paragraphs (1) and (2), a budgetary incentive may be given in the range of 130/100 of the amount calculated under paragraphs (1) and (2), where the Committee acknowledges any of the following cases. In such cases, the maximum amount payable per person shall be 78 million won: <Amended on Dec. 27, 2016; Jun 27, 2023>

1. Where the effects of expenditure curtailment or revenue growth are significantly shown as such effects are extended to similar businesses or other administrative agencies, etc.;

2. Where the effects of expenditure curtailment or revenue growth are embodied in an administrative collaboration task defined in Article 42 of the Regulations on the Operation and Innovation of Administrative Affairs;

3. Where the effects of expenditure curtailment or revenue growth are subject to a specific evaluation defined in subparagraph 4 of Article 2 of the Framework Act on Public Service Evaluation in the immediately preceding fiscal year;

4. Where the contents of expenditure curtailment or revenue growth are embodied through a citizen suggestion under Article 15 (1) 3 or a report or proposal under Article 15 (1) 4.

(4) Where a budgetary incentive is given under Article 3 (2) after a bonus, etc. has been given under other statutes than this Decree, the amount calculated under paragraphs (1) through (3) shall be given after subtracting the amount of the relevant bonus, etc. <Added on Dec. 27, 2016>

[This Article Wholly Amended on Dec. 30, 2011]

Article 17(Examination of budgetary incentives) #

In cases of conducting an examination of budgetary incentives referred to the Committee by the Minister of Economy and Finance upon request from the head of a central government agency, the Committee shall determine the scope of the budgetary incentive scheme for each expense and the scope of the budgetary incentive scheme payable to persons who have contributed to expenditure curtailment or revenue growth, considering their contribution to the expenditure curtailment or revenue growth and improvement in the relevant system.

[This Article Wholly Amended on Dec. 30, 2011]

Article 18(Payment of budgetary incentives) #

(1) The head of a central government agency shall, in accordance with the results of an examination conducted under Article 17, pay budgetary incentives within budgetary limits by the end of the fiscal year in which the expenditure curtailment or revenue growth occurred or the next fiscal year, before the date set by the Minister of Economy and Finance. <Amended on Dec. 27, 2016; Dec. 29, 2017>

(2) The head of a central government agency may give budgetary incentives within budgetary limits in the next fiscal year, where such agency has a lack of funds to give such budgetary incentives under paragraph (1).

[This Article Wholly Amended on Dec. 30, 2011]

Article 19(Payment of budgetary incentives for retired and deceased persons) #

Where the payment of a budgetary incentive is allowed, the person who contributed to the expenditure curtailment or revenue growth shall be given the budgetary incentive, even if he or she retires or is deceased. In such cases, upon death of the entitled person, the budgetary incentive shall be paid to his or her heir.

[This Article Wholly Amended on Dec. 30, 2011]

Article 20(Follow-up budgetary measures) #

(1) Where budgetary incentives are given out of savings from reducing personnel expenses, ordinary expenses and major business expenses, the Minister of Economy and Finance may, at his or her discretion, allocate budget to the priority projects of the relevant central government agency within total budgetary limits of the relevant agency, instead of reducing the amount of savings from budget for the relevant project, when allocating budget for the fiscal year proceeding the fiscal year in which the expenditure curtailment occurs, and when framing budget for the following years after the next fiscal year.

(2) The head of a central government agency who has paid the amount of personnel expense savings from personnel reduction as budgetary incentives shall not make a request to create an organization or increase the number of personnel that similarly performs tasks as the reduced organization or personnel.

(3) The head of a central government agency who has paid the amount of savings from ordinary expenses and major business expenses as budgetary incentives shall not make a budget request to do business similar to the budget-saved business.

[This Article Wholly Amended on Dec. 30, 2011]