Gov't launches full audit of public facilities built with national subsidies

The government will conduct a comprehensive survey of local government public facilities built with national subsidies, examining how they are actually being used. The review aims to identify why some facilities have seen low utilization or have been operated in ways that deviate from their original purpose — or left idle altogether — and to establish a system of ongoing oversight even after national funding ends.

The Ministry of Planning and Budget announced Thursday it is launching an in-depth fiscal review under the theme "Survey of the Status of Nationally Subsidized Local Government Facilities and Derivation of Efficiency Measures." A joint research team of 11 experts drawn from academia, government-funded research institutes, civic organizations and the Board of Audit and Inspection's audit research body will begin the review this month and continue through the first half of next year.

The government has long supported the construction of local public facilities across sectors including culture, sports, industry and welfare to expand regional infrastructure and promote balanced national development. Critics have noted, however, that a focus on short-term results and headline-driven projects has left many facilities with low utilization rates or operating in ways that stray from their original intent — or simply neglected.

A particular concern has been the lack of a post-completion management system to inspect and oversee facilities once national funding ends, a gap that critics say fuels administrative inefficiency and fiscal waste. The ministry said a comprehensive set of remedies was needed based on a detailed assessment of how facilities are actually operating.

The number of local public facilities registered on the Local Finance 365 platform grew from 398 in 2022 to 502 in 2023 and 532 in 2024. The figures reflect voluntary registrations by local governments of facilities valued at 30 billion won ($22.1 million) or more for metropolitan governments and 20 billion won or more for basic local governments, and include facilities that did not receive national subsidies.

The ministry plans to first build a database by conducting a full survey of the scale of operations and actual utilization and operation rates of nationally subsidized local facilities. On that basis, it will carry out a comprehensive assessment of the economic and social impact of the facilities and analyze the structural causes behind underuse or neglect. It will then draw up institutional reform measures to revitalize facilities and improve operational efficiency.

The joint research team includes experts from government-funded institutes such as the Korea Institute of Public Finance and the Korea Research Institute for Human Settlements, as well as the Narasallim Research Institute and the audit research body. The team will diagnose the effectiveness of facility operations through on-site inspections and data analysis.

Jeong Jang-hun, a Hansung University professor serving as the project's lead coordinator, said nationally subsidized local facilities should be "managed as assets that continue to deliver quality public services even after completion." He added that the team would "seek to prevent indiscriminate construction and find practical measures to improve facility efficiency through precise diagnosis grounded in on-site inspections and data."

The ministry plans to use the findings of the in-depth review in drafting the government's budget proposal and in its integrated fiscal project evaluations. It also decided to link the results to efforts to build a sustained oversight and management framework for nationally subsidized facilities.