NABO holds annual consultation with the IMF The National Assembly Budget Office held a meeting with the International Monetary Fund (IMF) mission team on Friday, August 25. In accordance with Article IV of its Articles of Agreement, the IMF conducts annual consultations with member countries on broader economic matters, including macroeconomic, foreign exchange, and financial issues.The meeting was attended by Ms. Hye-Jung Shim, Tax Analysis Counsel at NABO, Mr. Young-Il Choi, Head of the Macro-economic Analysis Division, and Mr. Harald Finger, Mission Chief for Korea at the IMF among others.NABO and the IMF had in-depth discussions on short-term fiscal issues, such as Korea's fiscal outlook for this year, the government's plans to raise revenues in the face of tax shortfalls, and the direction of the 2024 budget, as well as long-term fiscal issues, such as the government's fiscal rule proposal and pension reform plan, and the outlook for health and pension funds.The IMF mission team expressed the view that the overall economic situation in Korea does not display a significant downward trend and that the recent issues in the Chinese real estate market will have a limited impact on the global economy, with potential indirect repercussions for trading partners.On the other hand, NABO and the IMF mission team shared the view that it is necessary to develop alternatives to minimize the negative spillover effects on the economy, particularly concerning this year's revenue deficit and countermeasures.The IMF mission team expressed the need to make full use of automatic stabilizers considering the weakened fiscal discipline and its compatibility with monetary policy.Finally, regarding the introduction of a fiscal rule, NABO and the IMF mission team agreed that the role of independent fiscal institutions, such as NABO, will become more important in ensuring the efficacy of the fiscal rule.Upon the meeting’s conclusion, Mr. Harald Finger, the head of the mission team, said that he was pleased to hear various opinions on Korea's fiscal situation from the experts at NABO, and expressed his hope for continued exchange of views and communication in the future. 2023-08-28

NABO holds a Budget Policy Advisory Committee meeting The National Assembly Budget Office (Chief, Euysup Cho) convened a meeting of the Budget Policy Advisory Committee on Tuesday, July 11th. The meeting is attended by 12 committee members, including Professor Yeonseob Ha, who chairs the committee.During the session, the committee engaged in a comprehensive discussion about the future of the Korean economy and the direction of fiscal and economic policies considering the challenging circumstances both domestically and internationally. They deliberated on essential policy objectives for Korea, encompassing the need to ensure a robust fiscal space and soundness, the changes of tax policies in response to socioeconomic structural shifts, and the development of new growth strategies for the Korean economy.In greater detail, the members presented a range of fiscal and economic policy suggestions. These included potential reforms to the consumption tax aimed at addressing revenue shortfalls, enhancements to retirement pension systems to alleviate pressures on the social insurance sector in light of rapid aging population, and the potential implementation of forward guidance for fiscal policies to mitigate the protraction of inflation. Furthermore, the committee recommended that NABO, as it celebrates its 20th anniversary, should continue to shed light on critical issues and approach solutions from a neutral standpoint.Chief Cho expressed his gratitude to the committee members for their keen interest in and valuable advice for NABO. He further stated that drawing upon NABO's two decades of experience, it is poised to become the premier fiscal institution dedicated to serving the National Assembly and the Korean people. 2023-07-12

NABO meets the Ministry of Finance of Mongolia On Monday, June 26, the National Assembly Budget Office (Chief Euysup Cho) had a meeting with the Mongolian Ministry of Finance on NABO's establishment process, and operating system, as well as financial conditions and financial soundness of both countries.This visit was part of the Public Financial Management and Operations course for the Mongolian Finance Ministry, promoted by KDI to study cases related to the role of NABO and the budget deliberation process.The meeting was attended by 16 members from the Mongolian delegation, led by Mr. Otgonbayar Ganbaatar, as well as representatives from NABO, including Head of the Planning and Budget Division Sangjun Lee and Economic Analyst Wonchul Jung.As NABO celebrates its 20th anniversary this year, it plans to promote exchange and invite Mongolia to the Asian Parliamentary Budget Officials (PBO) network, which is scheduled to be established in October. 2023-06-26

NABO meets AMRO consultation team On Thursday, June 15, the National Assembly Budget Office (NABO) held a meeting with the consultation team from the ASEAN+3 Macroeconomic Research Office (AMRO) to discuss the current trends and prospects of the Korean economy.The meeting was attended by five AMRO members, including Kevin C. Cheng. Representing NABO were Ah-Young Kwon, Head of the Estimates and Tax Coordination Division, Jin-Woo Lee, Head of the Social Cost Estimates Division, and Kyung-Yeop Baek, Head of the Tax Policy Analysis Division 2, among others. They engaged in discussions covering various topics such as the 2023 budget, fiscal rule, pension reform, and long-term fiscal issues.Kevin Cheng expressed his satisfaction with the insights provided by NABO experts on the Korean fiscal situation and expressed his hope to revisit the office again later this year for further discussions.AMRO is an international organization headquartered in Singapore, established by South Korea, China, Japan, and ten ASEAN countries, which includes Laos, Malaysia, Myanmar, Vietnam, Brunei, Singapore, Indonesia, Cambodia, Thailand, and the Philippines. Its primary mission is to monitor macroeconomics and prevent crises in the region. NABO has been engaging in annual consultations with AMRO since 2017 in response to AMRO’s requests. 2023-06-15

NABO Signs Memorandum of Understanding with Korean Academic Society of Taxation On Tuesday, May 2nd, the National Assembly Budget Office (Chief Euysup Cho) signed a memorandum of understanding with the Korean Academic Society of Taxation (President Jae-yeon Jeong) at the NABO building.The primary objective of this MOU is to foster collaboration between the two organizations in areas related to national budgeting, funding, and fiscal management, with the ultimate goal of contributing to the nation’s economic development. In the future, both entities plan to work hand in hand to advance the fields of taxation and national finance. This will be achieved through the exchange of expert knowledge, the establishment of a cooperative framework, and various collaborative activities, including policy assessments, the exchange of specialized personnel, and jointly hosting conferences and discussions.The signing ceremony was attended by Euysup Cho, Chief of NABO; Jeong-eun Lee, Assistant Chief for Tax Analysis; Yang-sung Lee, Assistant Chief for Planning and Management; and Hye-jung Shim, Tax Analysis Counsel. Jae-yeon Jeong, President of the Korean Academic Society of Taxation, was also in attendance, along with Professors Won-seok Choi, Jae-won Yoon, and Kwang-sook Lee. 2023-05-02

NABO Signs Memorandum of Understanding with Korean Association of Public Finance On Friday, April 28th, the National Assembly Budget Office (Chief Euysup Cho) signed a memorandum of understanding with the Korean Association of Public Finance (President Chul-in Lee) at the NABO building.The aim of this MOU is to cultivate a robust partnership between the two organizations in matters concerning national budgeting, funding, and fiscal management, all with overarching objective of making significant contributions to the nation’s economic development. In the future, both entities envision a close and collaborative effort to advance the fields of taxation and national finance. This will be achieved through the exchange of expert knowledge, the establishment of a cooperative framework, and various collaborative activities, including policy assessments, the exchange of specialized personnel, and jointly hosting conferences and discussions.The signing ceremony was attended by Euysup Cho, Chief of NABO; Jeong-eun Lee, Assistant Chief for Tax Analysis; Yang-sung Lee, Assistant Chief for Planning and Management; and Hye-jung Shim, Tax Analysis Counsel. Chul-in Lee, President of the Korean Association of Public Finance, was also in attendance, along with Woo-hyun Kim, General Director; Dong-ik Kang, Research Director; andMin-hyun Jung, Research Director. 2023-04-28

NABO Meets the Cambodian Government Delegation On Tuesday, April 25th, the National Assembly Budget Office (Chief Euysup Cho) held a meeting with a visiting delegation from the Cambodian government. The discussion revolved around the establishment process and operation system of NABO, NABO’s role in the budget deliberation process, and the performance-based budgeting system.The purpose of the visit was to learn from South Korea's best practices in order to strengthen the linkages between the public governance reform initiatives promoted by the Cambodian government and to enhance the effectiveness of these reforms.The Cambodian delegation consisted of 26 members, including HEL Chamroeun, Secretary of State at the Ministry of Finance and Economy; HUOT Synead, Secretary General at the Ministry of Civil Service; KHAN Vanak, Secretary of State at the Ministry of Justice; and CHAN Sothea, Under Secretary of State at the Ministry of Interior. Representing NABO were Euysup Cho, Chief of NABO; Yang-sung Lee, Assistant Chief for Planning and Management; and Se-wook Seo, Program Evaluation Counsel.During the meeting, NABO and the Cambodian delegation engaged in extensive discussions regarding NABO’s establishment and its development over the past two decades. They also explored the measures undertaken by the National Assembly in case of illegal or unwarranted findings during the deliberations on accounts settlements. Additionally, they discussed the course of action in the budget review process when disagreements arise between the executive and legislative branches regarding budget utilization priorities.Furthermore, as NABO celebrates its 20th anniversary, it plans to maintain ongoing exchanges with Cambodia, including extending an invitation the country to join the Asian Parliamentary Budget Officials (PBO) network, set to be established in October of this year. 2023-04-25

NABO signs an MoU with the National Health Insurance Service On Thursday, February 23, the National Assembly Budget Office (Chief Cho Euysup) signed an MoU with the National Health Insurance Service (NHIS, President Kang Do Tae) at the NABO building.This MoU aims to bolster cooperation between the two organizations to enhance the health of the Korean people. NHIS will provide big data related to health and medical care, including those on the national health insurance and long-term care insurance for the elderly, while NABO will share research results obtained from the data and information to help improve the healthcare system.The signing ceremony was attended by Cho Euysup, the Chief of NABO; Lee Jungeun, the Assistant Chief for Estimates and Tax Analysis at NABO; Lee Jin-woo, the Head of Social Cost Estimates Division at NABO; Kang Do Tae, the President of NHIS, and Lee Jung-soo, the Head of Big Data Strategy Department. 2023-02-23

NABO holds a video conference with the OECD Economics Department (Latin America Division) On Friday, February 3, the National Assembly Budget Office (Chief Cho Euysup) and the OECD Economics Department held a video conference to discuss best practices for setting up an independent fiscal council in Latin America.NABO’s experts, including Lee Sangjun, Head of the Planning and Budget Division, and Budget Analyst Kim Yunseong, shared their knowledge and experience with interim Head Alberto González Pandiela, senior economist Paula Garda, and three other economists from the OECD. During the meeting, NABO’s representatives explained the background and growth of NABO to assist the OECD use our experience as a reference for establishing a similar financial council in Latin America.Interim Head Alberto González Pandiela stated that NABO has set a good precedent which would be helpful when establishing independent fiscal councils in Latin America. 2023-02-03

NABO reports its 2023 plans to the Speaker of the National Assembly The National Assembly Budget Office (Chief Cho Euysup) presented the office’s 2023 plans to the Speaker of the National Assembly in the reception room on Thursday, February 2, 2023, at 15:00.Chief Cho emphasized that, as NABO celebrates its 20th anniversary this year, it will transform into a fiscal think tank that brings new hope to the public. NABO has set its sights on 2023, its 20th anniversary, as the year of leapfrogging to drive change and prepare for the future. Its top priorities are "leading the agenda to address the challenges of our time," "strengthening fiscal control for a capable democracy," and "building the foundation for a new leap forward." Accordingly, NABO will focus on analyzing major issues such as pensions and the cost-of-living/economic crisis, strengthening the analysis of fiscal aggregates, supporting early settlement, and improving the accuracy of economic and tax revenue forecasts. NABO will also develop a new strategy and conduct business reorganization in response to environmental changes.Upon receiving the report from NABO, Speaker Kim Jin-pyo urged for the plan to be implemented seamlessly. He also suggested that efforts be made to enhance the accuracy of tax estimates and improve the utilization of cost estimates in the legislative process. 2023-02-02