Government’s Fund Management Is Unstable

It turns out that the majority of government sectors have managed enormous amounts of capital without the capability of running government assets. Furthermore, in the name of various shares, a Korean paid taxes worth about 250,000 won last year, and at least 10 shares need to be abolished, according to a survey.

This was based on reports named ‘Appraisal of Running Assets in 2006’ and ‘Share Management’ which were turned in by the Ministry of Planning and Budget on July 30. The appraisal of running assets in 2006 was prepared by private experts who were requested to do so by the planning and budget ministry.

According to the ministry, the experts said in the report that, “67 people were working for capital management in the National Pension Service as the end of 2006, but it still has a lack of experts who can manage a diversified lot of investments as the scale of investments gets larger.

It pointed out, “When it comes to investments with domestic bonds and stocks and foreign bonds which are managed by both self-management and consignment, an investment managed by consignment is decided not by an objective model but by an empirical judgment.”

They also raised the question of whether members of the Capital Management Committee of the National Pension Service, which decides and consults on major matters for government investment for the national pension are fully qualified to make an effective decision.

An official from the planning and budget ministry said, “We have been considering developing manpower in the committee.”

Meanwhile, the government collected taxes worth about 11.9534 trillion won last year, which increased by 523.8 billion won, or by 4.58%, when compared to that of 2005, which totaled 11.4296 trillion won. When the amount is divided by total population, which is about 48,300,000, the average person paid taxes of about 247,000 won.

The amount of tax-like shares has steadily increased since 2001. The number of total shares reached about 100 as the end of last year

As a result of the appraisal of running shares, it turned out that 10 shares, including a share related to the sewer law, need to be abolished, and that nine of the shares, including funds for broadcasting development, need to be fixed.

cha@donga.com