NABO meets the Secretariat of the State Great Hural of Mongolia On Thursday, May 12th, NABO (Chief Iksang Lim) had a meeting with the delegation of the Secretariat of the State Great Hural of Mongolia.Chief Lim greeted ten delegation members led by Luvsandori ULZIISAIKHAN, Secretary-General of the State Great Hural. The two leaders shared their missions and visions and exchanged opinions on fostering mutual exchange and visits and establishing an Asian PBO Network.Following the meeting with the Chief, NABO analysts and the Mongolian delegation had an in-depth presentation and Q&A session on the policy costing of Korea and the analysis, implementation, and monitoring of the budget. From NABO, Social Administrative Program Evaluation Division Head Ae-seon Kim, Estimate and Tax Analysts Ju-cheol Yoon and Jeong-rim Tae, and Economic Analyst Jong-ryul Hwang participated in the discussion. 2022-05-12

NABO participates in the 14th annual meeting of PBOs & IFIs National Assembly Budget Office (Chief Iksang Lim) participated in the 14th annual meeting of PBOs and IFIs, which was held in Dublin, Ireland, on 5-6 May 2022. The event gathered about 115 participants from 32 different IFI member countries, the European Commission, the European Fiscal Board, and the OECD. After the welcome reception held on 4 May, the 8-session meeting took a closer look at various topics; including IFIs and green analysis, working together with climate councils, good practices for policy costings, dynamic scoring, getting the message out (to the media and the public), and building effective oversight institutions.Mark Hadley, COO at CBO, chaired the meeting, and European Commissioner Mairead McGuiness delivered the keynote address. Andy King (OBR, the UK), Scott Cameron (OECD), Theresa Gullo (CBO), and other speakers shared their cases and views, and delegates had meaningful discussions and Q&A sessions. 2022-05-06

NABO Conducts 2022 Annual Consultation with International Credit Rating Agency Moody’s On February 22nd (Tue), the National Assembly Budget Office (Chief Lim Iksang) conducted an annual consultation with the international credit rating agency Moody’s. This consultation was requested by Moody’s and was held virtually following the concerns over COVID-19. The meeting was attended by Moody’s consultation team, including Cristian De Duzman, Senior Vice President/Manager from Moody’s responsible for sovereign credit ratings in the Asia Pacific Group, and NABO analysts team led by Baek Kyungyeop, the director of Tax Policy Analysis Division 2. An in-depth discussion took place, centering on the fiscal effect of the Korean New Deal, the effect of population aging on public spending and pension expenditures, and the evaluation of the financial health of public corporations. 2022-02-22

NABO holds the First Meeting of the Academic Journal Editorial Board in 2022 The National Assembly Budget Office (Chief Lim Iksang) established the 6th Editorial Board of the Journal of Budget and Policy and held its first virtual meeting of 2022 on Monday, February 14.The Board, commissioned on February 1, 2022, consists of 16 experts in specialized fields such as finance, economy, and tax and is chaired by Professor Ha Yeon-seob of Yonsei University. “As this year marks the 10th anniversary of the foundation of the Journal of Budget and Policy, we will continue to serve as the only financial journal in the legislature that pursues academic achievements and comprehensiveness,” said Chief Lim. The meeting agenda was the 2021 Overview, 2022 publication plans, future development directions, and improvement measures.The Journal of Budget and Policy is an academic journal published by the NABO, which discovers and publishes theoretical and policy papers related to budget, economy, taxation, and public policy. This quarterly journal is always open for paper submissions.[The 6th Editorial Board Member List (16 members in random order)]Yeon-seob Ha, Prof. at Yonsei University (Chairperson)Young-rok Kim, Prof. at Kangwon National UniversityCheol Liu, Prof. at KDI schoolHun Park, Prof at University of SeoulTae-yoon Sung, Prof. at Yonsei UniversityYoung-min Oh, Prof. at Dongguk UniversityJoung-hyeon Oh, Fellow at the Korea Institute of Public FinanceSeung-won Yu, Prof. at Korean National Police UniversityHyun-suk Yoon, Prof. at Wonkwang University Law SchoolDong-gyu Lee, Prof. at Dong-A UniversityEun-mi Lee, Prof. at Kookmin UniversitySang-soo Lim, Prof. at Chosun UniversitySeung-hoon Jeon, Prof. at Daegu UniversityYoung-Jun Choi, Prof. at Yonsei UniversityHye-jung Shim, Deputy Director-General for Tax Analysis at NABO (Editorial Assistant) 2022-02-14

NABO Reports 2022 Plans to the Speaker of the National Assembly The National Assembly Budget Office reported its new year plans to the Speaker of the National Assembly in the National Assembly Meeting Room at 14:00 on Wednesday, January 26, 2022.Based on the 21st National Assembly’s slogan of “the people’s National Assembly that opens up the nation’s tomorrow,” Chief Lim Iksang presented three missions for 2022: Effective and neutral support for legislative activities, practical research and analysis that focus on the people’s livelihoods, and future vision development and future-oriented operation.In addition, Chief Lim showed his ambition for closer cooperation with financial/economic research institutes in Sejong, such as the KDI and Korea Institute of Public Finance, to prepare for the era of the National Assembly Sejong branch. He added that NABO would continue to work with CBO, OECD, and other foreign organizations.Park Byeong-seug, the Speaker of the National Assembly, highly praised NABO’s new year plans and visions. He asked the NABO to “collaborate not only with external organizations but also with the National Assembly’s internal offices to produce high-quality results.” 2022-01-26

NABO Welcomed the KRG Delegation of the Ministry of Finance and Economy On Wednesday, December 1st, NABO greeted the delegation of the Ministry of Finance and Economy of the Kurdistan Regional Government. It held a meeting to share information on the Korean budget system and the national health insurance system. Seven members of the delegation led by Ms. Sarwen Ismael Ahmed Galali held an in-depth Q&A session with Director Sang-jun Lee of Planning and Budget Division, Budget Analyst Soo-ji Ahn, and Tax Analyst Sun-ah Park regarding the budget process, the role of NABO during the process, and the National Health Insurance’s structure and finance.In addition, NABO and the KRG discussed measures to strengthen cooperation, such as visits and mutual exchange of information. 2021-12-01

NABO holds the Grand Debate on the 2021 Tax Reform Proposals National Assembly Budget Office held the Grand Debate on the 2021 Tax Reform Proposals online on Monday, November 1st, 2 pm on the third floor of the NABO building to seek proper principles and direction of the National Assembly's examinations on the government and parliamentarians' tax reform proposals. Chief Lim Ik-sang delivered the opening remarks and followed congratulatory remarks by Rep. Yoon Hu-duk, chairman of the Strategy and Finance Committee. President Sung Myung-jae of the Korean Association of Public Finance hosted the debate. Kim Tae-ju, Deputy Minister of the Tax and Customs for the Ministry of Economy and Finance, gave the first presentation elaborating on the main characteristics and details of the 2021 tax reform proposals, including "supporting economic transition as a pace-setter and economic recovery," "reinforcing inclusivity and the foundation for co-existence and fairness," and "creating a tax-payer friendly environment for stable tax revenue."  Park Myung-ho, Assistant Chief for Estimates and Tax Analysis Department of NABO, delivered the keynote speech on the second topic. He evaluated that this year's tax law reform proposals focused on expanding tax support for corporate investment. He also emphasized that tax law management strategies, such as enhancing revenue mobilization, are required to prepare for the post-COVID-19 era and respond to population aging, low fertility rate, and other socioeconomic structural changes. In the debate that followed, Executive Secretary of National Assembly's Strategy and Finance Committee, Kim Young-jin (Democratic Party of Korea), positively evaluated the government's tax reform proposal, saying it underpins the economic transition to a pace-setter and help us prepare for the post-COVID-19 era. However, he underscored the importance of tax incentives for semiconductors, batteries, vaccines, and other national strategic industries to secure their competitiveness. He also said that the government should ensure the accuracy of tax revenue estimation and secure fiscal soundness. Yoo Sung-kull (People Power Party), Executive Secretary of National Assembly's Strategy and Finance Committee, pointed out that while the consolidated fiscal deficit is aggravating, the government might collect less tax revenue with these tax reform proposals, which focus on extending sunset classes of tax expenditure measures. He also called on to minimize the tax revenue estimation error and fundamental reviews for a rules-based tax system. Yong Hye-in (Basic Income Party), a member of the Strategy and Finance Committee, assessed that these tax reform proposals included some contents that do not align with the national policy directions, such as achieving the net-zero goal and protecting vulnerable people. She also asserted that the government should fundamentally reorganize tax expenditures and find ways to minimize the regressivity of taxes when giving tax incentives regarding R&D.  Prof. Park Hun of the University of Seoul evaluated that the Moon administration's last tax reform proposal is partially for tax cuts. He added that it is necessary to review the proposals to see if they can achieve policy goals and secure fiscal soundness when financing while initiating an advanced discussion for more competitive and rules-based tax reform proposals.  Prof. Lee Young of the Hanyang University pointed out that this year's tax reform proposals will reduce the tax revenue and thus do not reflect the reality where more revenue is needed for the increasing mandatory expenditures. He offered ways to secure long-term fiscal soundness, such as cuts in tax expenditures to respond to the hike in mandatory expenditures. NABO will deliver the results of the Grand Debate on the 2021 Tax Reform Proposals to the Strategy and Finance Committee of the National Assembly and the Ministry of Economy and Finance for the tax reform evaluation by the National Assembly. 2021-11-01

NABO and OECD signs a certificate of mutual cooperation The National Assembly Budget Office and the Organisation for Economic Co-operation and Development signed a certificate of mutual cooperation on October 27 at the National Assembly Budget Office Building. Before signing the paper, Chief Lim Ik-sang and Mr. Jón R. Blöndal, Head of the Budgeting and Public Expenditures Division at OECD, updated each other recent work in NABO and OECD’s Public Management and Budgeting Division, discussed the role of independent fiscal institutions (IFIs) and parliamentary budget officials (PBOs), and the development of an OECD Asia PBO Network.The contents of the certificate of mutual cooperation include:● the exchange of knowledge and experience in areas of common interest,● facilitation of the cooperative activities and human resource exchange,● and an endeavor to establish the Network of Asian Parliamentary Budget Officials. 2021-10-27

NABO holds Grand Debate on the 2022 Budget Bill The National Assembly Budget Office held the Online Grand Debate on the 2022 Budget Bill on Tuesday, October 26, 3 pm at the third floor of the National Assembly Budget Office building to seek the proper direction of the examination process of the government budget Bill by the National Assembly. The opening ceremony consisted of an opening speech by Chief Lim Ik-sang, words of encouragement by Speaker of the National Assembly, Park Byeong-seug, and congratulatory remarks by Lee Jongbae, the Chairman of the Special Committee on Budget and Accounts.  Prof. Won Yun-hi at the University of Seoul moderated the debate. Choi Sang-dae, Deputy Minister of the Budget Office at the Ministry of Economy and Finance, first delivered a presentation on the highlights of the 2022 budget Bill. He said the budget Bill would continue to support a complete recovery from the COVID-19 shock, promote inclusivity through supports and compensations for small business owners, and make another leap forward. Further, he elaborated on significant investments such as a vaccine, quarantine measures, inclusive recovery, balanced regional development, protection of Koreans, and their quality of life. Song Byoung-choul, Assistant Chief for Budget Analysis at NABO, gave a second presentation on major characteristics and analysis of the 2022 budget Bill. In his talk, he highlighted the necessity to strengthen fiscal soundness through efficient spending and increased revenue, considering the increase in national debt. He further explained the analysis results of projects included in the budget Bill, such as supports for small business owners in management crisis; net-zero transition; reinforcing multi-layered social safety net including expanding eligibility for social insurance premium support, sickness benefits, and child allowance; and comprehensive support for youths.  The first panelist, Rep. Yang Kyung-sook of the Democratic Party of Korea, said that the national debt had increased temporarily due to expansionary fiscal policy. However, the sustainability of the budget may be secured through a virtuous cycle in the mid- to long-term. She added that during the 2022 budget Bill deliberation, she would focus on supports for vulnerable classes, including small business owners, so that the budget can protect the everyday lives of all Koreans. The second panelist, Rep. Choi Hyung-du of the People Power Party, said that though a surge of the national budget was inevitable due to the COVID-19 crisis, the pace of increase is faster than that of France and Germany because this Korean government did not consider the financial status of the country the next government. He emphasized that the 2022 budget Bill is for the 20th government and should support small business owners and socially marginalized groups while abolishing unnecessary regulations and achieving economic recovery through free corporate management. The third panelist, Rep. Kang Eun-mi of the Justice Party, said that during the budget bill deliberation, she would focus on climate change responses and solving social inequality, such as creating funds on climate change response, redistribution of expenditures which is disproportionately spent on industrial transition and R&D, improving the work environment for unlimited contract workers in the public sector.  Prof. Kim Tae-il from the Korea University also said in the debate that as the year 2022 is the last year for the Moon administration and the first year for the next government, it is essential to monitor the management of projects and assess the effectiveness. He also stressed the importance of the National Assembly’s role in securing fiscal soundness and reinforcing the effectiveness of national budgetary management. Lastly, Prof. Kim So-young from the Seoul National University underscored that enormous fiscal policies for strong economic recovery might entail upward pressure on inflation. He added that the demand for Korean sovereign bonds is not high. Korea’s national debt is at an average level compared to other countries with non-key currencies.  The results of this Grand Debate will be delivered to the National Assembly’s Standing Committees, the Special Committee on Budget and Accounts, Members of Parliaments’ offices, the Ministry of Economy and Finance, and the government so that it can be actively utilized during the National Assembly’s deliberation on the 2022 budget Bill. 2021-10-26

Celebration of the 18th Anniversary of the Establishment of NABO The National Assembly Budget Office (Chief Lim Iksang) held a virtual event that celebrated the 18th anniversary of its establishment at 11 am on Tuesday, October 19, 2021. This online event ended successfully, joined by all of the NABO staff who all practiced COVID-19 prevention measures.Speaker Park Byeong-seug shared his words of encouragement. In his speech, he said, “NABO has been faithfully carrying out the examination of the budget and the settlement of accounts since its establishment, and it is now a fiscal institution that represents the country.” “The National Assembly needs full support from NABO to finish the budget process in the stated period of time and make it a tradition,” Speaker Park added. Chief Lim Iksang said in his commemorative speech, “As 18 is the age of adulthood, NABO will continue its effort to become the best fiscal think-tank.” And added, “NABO promises to strongly support the activities of the legislative body while actively responding to the changing environment and respecting the operating principles: expertise, non-partisanship, and objectivity.” After that, Choo Kyung-ho (Rep. of the People Power Party), Yang Kyung-sook, and Choi Hye-young (Both Rep. of the Democratic Party of Korea) were awarded a plaque of merit in the name of the Speaker for their contribution to the strengthening of the status of the National Assembly and the development of NABO with their vigorous legislation activities. 2021-10-19