OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Reforming the Public Expenditure System in Korea

Although Korea has the second-lowest level of public spending among OECD countries at 22½ per cent of GDP, it faces strong upward spending pressures over the medium and longer term, which could threaten fiscal sustainability. This paper analyses the main features of Korea’s public expenditure system and reviews expenditure trends and the main forces behind them. The objective is to identify the major shortcomings in budget planning, management and control systems that have impeded better public sector performance. The paper concludes by proposing policy measures to enhance the effectiveness, efficiency and transparency of the public expenditure management system. These include managing public finance within a medium-term expenditure framework; making the budgetary system more comprehensive and transparent by consolidating special accounts and public funds and bringing extra-budgetary funds into the budget; introducing more flexible and results-focused public management to improve ...


Keywords: new public management, public sector efficiency, Korea, government expenditure, budget systems, intergovernmental relations
JEL: H5: Public Economics / National Government Expenditures and Related Policies; I22: Health, Education, and Welfare / Education and Research Institutions / Educational Finance; Financial Aid; H7: Public Economics / State and Local Government; Intergovernmental Relations; E62: Macroeconomics and Monetary Economics / Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook / Fiscal Policy; H4: Public Economics / Publicly Provided Goods; H1: Public Economics / Structure and Scope of Government
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error