The purpose of this study is to investigate the problems of the Korean Block Grant System which has been recently implemented and to suggest improvement directions for the institution. The investigation of problems was focused especially on the actual conditions in managing the system in rural municipalities in order to figure out the practical improvement assignments. Through this work, we suggest improvement directions for the institution and mid- and long-term assignments so that the 'Special Account for Regional and Local Development' may be operated more effectively and efficiently.
Firstly, we reviewed the meaning and objective of 'Basic Settlement Area Policy' and main contents and characteristics of the Korean block grant institution. Secondly, we identified issues related to successful operation of the institution by means of studying relevant references and foreign cases. Thirdly, we investigated the actual conditions in managing the block grant system and pieced together the problems relating to the each tier of the governments (central - regional - local) at each stage of operation (planning - budgetting and execution - monitoring and evaluation).
In conclusion, we proposed improvement directions for the Korean block grant institution and mid- and long-term assignments to be solved. It is required to reestablish basic directions of the institution in consideration of regional conditions. It is important to present clear principles and standards for reorganization of the institution.


Researchers: Mi-Ryung Song and In-Hye Kwon
Research Period: 2011.3~2011.6
E-mail Address: mrsong@krei.re.kr