A new measure will be promoted that will force the local government-funded organizations to participate in the management evaluation that is administered by the Ministry of Public Administration and Security (MOPAS). According to the measure, the organizations which have frequent cases of corruption or are assessed to have poor management will face strict actions such as the dismissal of executives and staff members or liquidation of the corporate body.

Improvement schemes will also be pushed for. One such scheme will require that the recruitment of executives and staff members take place as an open competition. Another scheme will allow organizations to merge in cases where the organizations have overlapping functions, lack capability because of their small size or have lost their orientation due to policy changes.

The organizations that are funded in part or in whole by the local governments have been continuously criticized for not disclosing the business promotion expenses spent by the heads and for imposing light penalties on those involved in irregularities in H.R. affairs and other forms of corruption. In order to establish a comprehensive management system for these organizations, the ACRC made recommendations for institutional improvement to the MOPAS, the local governments and the local government-funded organizations.

The number of the local government-funded organizations rapidly increased from 141 in 1999 to 492 at present, which is a 350% increase. As many as 109 organizations were newly established in 2008 and 2009 prior to the election of the heads of local governments in 2010.

The annual budget of the organizations is as high as KRW 5.99 trillion, but the ACRC's inspection found that the supervisory bodies have not figured out the actual budget management practices nor investigated them thoroughly.

The ACRC also sent a recommendation to the MOPAS to prepare a standard guideline which is applicable to personnel affairs, budgets and the organizational operation of the government-funded organizations. In order to root out the risks of corruption through round-the-clock outside monitoring, the Commission also recommended releasing the management information of the government-contributed organizations by expanding "the Local Public Enterprise Clean-Eye," the system that publicizes the management information of the public enterprises located in a local area.

"If the recommendations are accepted, the government-funded organizations that are currently in a blind spot will be operated in more transparency. Consequently, corruption will reduce significantly, and the annual budget reaching KRW 1.38 trillion that is the support offered to the organizations will be used in a fairer and more transparent manner," said the ACRC.