This study aims to help raise the efficiency of public projects implemented in Korea by analyzing the problems of the current management system and proposing possible paths for building an integrated public project management system.
In Korea, budget management for public projects has been conducted mainly through preliminary feasibility tests and total cost management systems, which have quite successfully helped to avoid pursuing unnecessary projects and limit cost increases after the projects are launched. The National Finance Act was recently enacted to provide a stronger legal basis for public project budget management. The current system, however, focuses on controlling the cost that is incurred during the construction period so that the planning and operating stages—before and after the construction— of public projects are not sufficiently managed. It is necessary to benchmark other advanced economies’ public project management systems that integrate all of the processes of a project, including the initiation, procurement, construction and operation phases.
Korea’s public project management system does not clearly state the concept and purpose of project management, the role and responsibility of Senior Responsible Owners (SROs), or the office of primary responsibility for the project overall. Korea also lacks consistency in the organization of management units. Most SROs do not set up special units to deal directly or exclusively with the projects, deferring instead the management role to existing teams already dedicated to other business functions, and thereby unable to give the projects the necessary level of attention or effort.
An integrated public project management system requires a clear definition of the project, contract, and role of the SRO, greater consistency in managing the project, an organizational leadership chart specific to the project, and a systematic review of managerial options. The UK’s Gateway Review system comes highly recommended as a benchmark for an effective system for facilitating the SROs’ roles in project management.
A more efficient public project management system requires re-organizing the roles of SROs and national fiscal authorities. The point of improving the management system and introducing the Gateway Review system lies in allowing SROs to properly manage the projects themselves. This is in line with the country’s recent fiscal reforms such as mid-term financial planning and the top-down system of budget allocation, attesting to the growing autonomy and responsibility of operating departments.
공공투자사업관리 개선방안(Improving public project management in Korea)
|Series Title; No||정책포럼 / 205|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||KDI; KDI School|