NABO meets the Household Committee of the House of Representatives of the Republic of Indonesia The National Assembly Budget Office (Chief Cho Euysup) met with the delegation of the Household Committee of the House of Representatives of the Republic of Indonesia on November 17, Thursday. Chief Cho welcomed Chairman Agung Budi Santoso, Vice Chairman Achmad Dimyati Natakusumah (delegation head), 15 other delegates of the Household Committee, and Deputy Chief of Mission of the Indonesian Embassy Zelda Wulan Kartika and shared opinions on cooperation between parliaments.“As the leading independent financial institution in Asia that marks the 20th anniversary of its establishment next year, NABO expects to strengthen cooperation with the parliaments of Asian countries such as Indonesia,” said Chief Cho.In response, Vice Chairman Dimyati said, "I think we would learn a lot from the NABO's work, such as the analysis of the national budget proposal." He hoped that the two institutions have more chances to exchange opinions and cooperate.Following this, NABO and the delegation had an in-depth discussion and a Q&A time on the parliamentary budget system and parliamentary support system. From NABO, Chief Cho Euy-sup, Assistant Chief for Planning and Management Im Myunghyun, Director for Planning and Budget Division Lee Sangjun, and Team Head of Public Relations and Communications Oh Eunsun. 2022-11-17

NABO holds the Grand Debate on the 2023 Educational Finance National Assembly Budget Office (Chief Cho Euysup) held the Grand Debate on the 2023 Educational Finance on Tuesday, November 15, at 2 pm on the third floor of the NABO building to gather opinions on the effective distribution of educational finance and the reform of the local education subsidy.In his opening remarks, Chief Cho hoped this event would be an opportunity to share opinions on educational finance and local education subsidy and find an effective distribution method of the funds to nurture talents for the future.Speaker Kim Jin-pyo shared his words of encouragement in which he mentioned different views on the reform, such as reinforcing tertiary/lifelong education and improving the quality of mandatory education. He hoped the debate to be a chance to muster wisdom for the reform and underscored the need for restoring the ladder of opportunity to enhance the competitiveness of public education and reduce polarization by preparing a long-term and non-partisan strategy for educational finance.Professor Won Yoon Hee at the University of Seoul moderated the debate. Education Vice Minister Jang Sang-yoon and NABO’s Assistant Chief for Budget Analysis Choi Byongkwun gave keynote speeches. Professor Song Gi-chang, professor Ban Sang-jin, National Council of Governors of Education Secretary General Ham Young-gi, and Professor Nam Soo-kyong participated as panelists.The first keynote speech was addressed by Vice Minister Jang under the title of “the Reorganization Plan of Tertiary Education Finance for the Innovation and Development of Universities.” He said that the decrease in population has weighed on universities’ financial balance and the existence of universities in rural areas and stressed the need for expanding the government investment in higher education by creating a special account on tertiary/lifelong education to overcome such problems, prepare for future society, and nurture talents. He further elaborated on the financial source of the special account and major investment directions.Assistant Chief Choi delivered the second keynote address under the title of “the Current State of and Improvement Plans for Local Education Subsidy,” in which he suggested using the OECD’s Educational Finance Indicator to tackle the problem of how the subsidy size was calculated. The subsidy size is difficult to predict and its financial resource is not stable as it is indexed to the internal tax. Regarding the government’s plan to open a new special account to support tertiary/lifelong education, he pointed out that instead of limiting the expenditure area to higher education, the government needs to draw up reform plans that can resolve the partition problem between the primary/secondary education fund and the higher education fund.The first panelist, Prof. Song of Sookmyung Women's University, agreed in large part with the education community's concerns about the government's new special account for tertiary/lifelong education, stating that it is necessary to supplement the government's reform plans to ensure the stability of local education subsidy and to address the community's concerns over a reduction in the subsidy.The second panelist, Prof. Ban of Jeonbuk National University (Secretary General Ham delivered Prof. Ban's idea), stated that the size of the primary and secondary education finances is not sufficient and that the transfer of a portion of the local education subsidy to higher education alone has limitations in securing university competitiveness. Then he proposed several ways to improve educational finance.The third panelist, Secretary General Ham criticized the finance authority's reform plan for the local education subsidy that it does not sufficiently reflect the educational and future-oriented perspective on educational finances. He added that to ensure the stability of the educational finances given the future education finance demand and rigid expenses, we need a rational reform plan such as legislation of a higher education subsidy law.The fourth panelist, Prof. Nam of Kangwon National University, stressed the need to expand higher education finances to overcome the deterioration of higher education finances and the decline in competitiveness of universities and said that there is a need to reorganize the support system to secure stable higher education finances, starting with the introduction of the special account.NABO wishes that the discussions made at the Grand Debate on the 2023 Educational Finance would become a reference when seeking the direction of the education finance reform, which aims to respond to future changes in education. 2022-11-15

NABO signs an MoU with the National Research Council of Science and Technology The National Assembly Budget Office (Chief Cho Euysup) signed a memorandum of understanding (MoU) with the National Research Council of Science and Technology (NST, Chairperson Kim Bok Chul) on Thursday, November 10, at the National Assembly Budget Office Building. The purpose of the MoU is to contribute to economic development through close cooperation when establishing policies on the national budget, account settlements, and funds, as well as fiscal management. The two organizations promised to cooperate in the policy suggestions for the development of Korea’s science and technology sector, the development of government-funded research institutions on science and technology, information and direction sharing regarding the national policy on budget and account settlements. 2022-11-10

NABO holds the Grand Debate on the 2022 Tax Reform Proposals National Assembly Budget Office (Chief Cho Euysup) held the Grand Debate on the 2022 Tax Reform Proposals on Monday, November 7 at 2 pm in meeting room 1 at the Member’s Office Building to seek a proper direction for the National Assembly’s deliberations on the government’s and parliamentarians’ tax reform proposals and discuss major issues.Chief Cho Euysup delivered the opening remarks in which he underscored the important role of taxes amid increased economic uncertainties at home and abroad, such as accelerating inflation and base rate hikes. He hoped that the Grand Debate serves as a momentum to find a desirable direction for the National Assembly’s deliberation on the tax reform proposals and tax systems through an in-depth discussion.Speaker Kim Jin-pyo said in his congratulatory remarks that preparing a balanced tax policy that considers political, social, and economic purposes together is important in a global complex crisis. With the National Assembly’s deliberation on the proposal ahead, he asked lawmakers to join hands and make tax laws that benefit the lives of the Korean people.In his congratulatory address, Chairperson Park Dae-chul of the Strategy and Finance Committee asked for various opinions on rational and inclusive directions to build a virtuous cycle of growth and tax revenues, as spending requirements may last longer and heavier tax burdens are unavoidable. He added that as the chairperson of the Strategy and Finance Committee, he will make efforts to realize the optimal alternative.Jun Joosung, Professor Emeritus of Ewha Womans University moderated the debate. Ko Kwang-hyo, Deputy Minister of the Tax and Customs for the Ministry of Economy and Finance, gave the first keynote speech elaborating on the main content and intention of introducing the 2022 tax reform proposals. The proposals were drawn up under the basic directions of economic revitalization, stabilization of the people’s lives, expansion of tax infrastructure, and creation of a taxpayer-friendly environment.The second keynote address was delivered by Lee Jung-eun, Assistant Chief for the Estimates and Tax Analysis Department of NABO. He said this year’s tax reform proposals focused on the expansion of tax support to revitalize the economy. He added that the National Assembly must examine ways to expand the tax base in the mid- to long-term to minimize the uncertainties of tax policies and secure fiscal sustainability.Rep. Shin Dong-kun of the Democratic Party of Korea assessed this year’s tax reform proposal as a tax cut policy for large companies and the high-income class. He asserted that the discussion should focus on a more active role of the budget to the extent it does not harm income redistribution.Rep. Yoo Sung-kull of the People Power Party pointed out that the tax system has been distorted and said that the tax reform will normalize the system and relieve tax burdens for the taxpayer overall, further revitalizing the economy.Rep. Jang Hye-yeong of the Justice Party criticized the proposal that while the role of the budget is more important than ever due to the economic crisis, the benefit of tax cuts is given disproportionately to a certain class. She added that introducing a carbon tax and other taxation measures should be considered to respond tothe climate crisis.Prof. Yoo Ho-lim at Kangnam University saw the proposal as a tax cut for the rich that mainly benefits large companies, worrying that such a measure would reduce tax revenue and be abused to avoid tax. He underscored that the government still has a role for those hit hard by the pandemic.Prof. Kim Woo-chul at the University of Seoul said as the tax base condition has improved recently, inducing companies to reinforce their competitiveness and invest in strategic industrial technologies through tax cuts was appropriate. He regarded the comprehensive property tax cut as a part of a normalization procedure to reduce the tax burden on the middle class, which increased in line with the asset prices.NABO will share the results of the Grand Debate on the 2022 Tax Reform Proposals with the Strategy and Finance Committee of the National Assembly and the Ministry of Economy and Finance to be utilized at the National Assembly deliberation on the proposals. 2022-11-07

Celebration of the 19th Anniversary of the Establishment of NABO The National Assembly Budget Office (Chief Cho Euysup) held the 19th-anniversary ceremony of the establishment at 11 am on Thursday, October 27, in the main hall on the third floor of the National Assembly Budget Office building. The event was attended by Speaker Kim Jin-pyo, Rep. Joo Ho-young of the People Power Party, Rep. Kim Soo-heung of the Democratic Party of Korea, Rep. Kim Mi-ae of the People Power Party among other guests, and about 200 NABO staff.Speaker Kim Jin-pyo said in his words of encouragement that “over the past 19 years, NABO has accumulated experiences and expertise in policy research. The think-thank is actively meeting intricate policy needs of the National Assembly.” He highlighted NABO’s pivotal role as a reliable companion when deciding national policies. “I wish NABO, a national finance keeper and a guide to national policies, continued success,” he added.The commemorative remark was delivered by Chief Cho Euysup. He said, “just as children become adults at age 19, NABO will do its best to mature and take root as the best think-tank based on the know-how accumulated over 19 years. NABO will actively respond to the difficult fiscal environment, be faithful to its role, and adhere to its operating principles: objectivity, non-partisanship, and expertise.”Rep. Kim Soo-heung of the Democratic Party of Korea (Jeollabuk-do, Iksan-si Gap) and Rep. Bae June-young of the People Power Party (Incheon Metropolitan City, Jung-gu, Ganghwa-gun, Ongjin-gun) were awarded a plaque of merit from the Speaker for their contribution to a higher status of the National Assembly and the development of NABO with their vigorous legislation activities. 2022-10-27

NABO holds Grand Debate on the 2023 Budget Bill The National Assembly Budget Office (Chief Cho Euysup) held Grand Debate on the 2023 Budget Bill on Tuesday, October 25, at 2 pm on the third floor of the National Assembly Budget Office building to seek the proper direction of the National Assembly’s examination of the government budget proposal.Chief Cho Euysup said in his opening speech that he hopes the Grand Debate “serves as a momentum to enhance the effectiveness of the National Assembly’s examination of the budget bill by setting forth various opinions and finding constructive alternatives for the main direction of next year’s budget and major policies.”Speaker Kim Jin-pyo shared his words of encouragement. He stressed that national finance should take a more active role to overcome the economic crisis and that the National Assembly’s role and authority should be strengthened when planning the budget so that the will of the public is reflected in the budget proposal and execution. He also requested the budget examination be carried out with enough dialogue, compromise, mediation, and arbitration, as it is the first budget bill examination since the ruling party changed.Rep. Woo Won-shik, Chairman of the Special Committee on Budget and Accounts, delivered a congratulatory speech in which he highlighted four principles: considering people’s livelihoods as a top priority, responding to the climate crisis, reinforcing industrial competitiveness for future growth engine, and dealing with the low birth rate in an aging society. He added that the Special Committee would avoid unnecessary political disputes and carry out an in-depth review on issues, such as concerns over belt-tightening policy harming people’s livelihoods and an increase in household debt.Prof. Won Yoon Hee at the University of Seoul moderated the debate. Kim Wan-seop, Deputy Minister for the Budget Office at the Ministry of Economy and Finance (MOEF), and Choi Byongkwun, Director General of the Budget Analysis Department at NABO, gave presentations. The panelists were Park Jeung, Lee Chulgyu, and Bae Jingyo, members of the Special Committee on Budget and Accounts; Jung Changsoo, Director of Narasallim Research Institute; and Oak Dong-suk, Professor at the Incheon National University.Deputy Minister Kim delivered the first keynote speech, entitled “The Overview of the 2023 Budget Bill and Major Investment Directions.” He said that amid difficult fiscal situations, the government drew up a budget bill that focuses on core tasks such as strengthening fiscal soundness at the macro level and protecting vulnerable groups while increasing investment to prepare for the future at the micro level. An explanation of major investments of the 2023 Budget Bill and resource allocation by sector followed.Director General Choi gave the second keynote address under the title of “Analysis of the 2023 Budget Bill and Its Major Characteristics.” He gave a general review of the budget proposal and explained the analysis of each policy. To maintain fiscal soundness and overcome the economic crisis, the budget for programs that are unlikely to be executed this year or do not show visible results needs to be reallotted to invigorating private investment, supporting vulnerable groups, and creating employment opportunities, he added.The first panelist, Rep. Park Jeung of the Democratic Party of Korea, expressed concern about policy responses to the economic crisis, such as efforts to stabilize the economy, secure a social safety net for vulnerable groups, and boost consumption and investment, may not be given enough as the government shifts to a belt-tightening mode amid an economic recession. He promised to examine the budget bill under the principle of prioritizing the Korean people, their livelihoods, and the economy.The second panelist, Rep. Lee Chulgyu of the People Power Party, valued the government’s efforts manifested in the 2023 budget proposal to shift the fiscal policy stance to sound financing by increasing fiscal sustainability and securing fiscal effectiveness through expenditure restructuring. He said that his examination on the budget proposal will be based on four major directions: strengthen the social safety net and protect vulnerable groups; stabilize prices and people’s livelihood; create jobs led by the private sector; and secure fiscal sustainability.The third panelist, Rep. Bae Jingyo of the Justice Party, pointed out problems of the government’s economic policy stance: the sales of national properties amid the government’s pro-market/business attitude, a tax cut that only benefit the rich and conglomerates, budget reduction of rental housing, and under-allocated budget for health insurance enrollees. He added that he will faithfully examine the budget proposal to put the bill on the right track.The fourth panelist, Director Jung Changsoo of Narasallim Research Institute, emphasized that we need to look into the details of the 2023 budget proposal rather than assessing its fiscal stance by simply looking at the increase/decrease of the budget size. He also said that he expects a fact-oriented budget examination based on accurate information provided by the government.Lastly, Prof. Oak Dong-suk of Incheon National University mentioned that we need to be aware of the worsening national fiscal environment caused by fiscal management regarding deficit normal and aging population. He highlighted the need for fiscal rules management, a private sector-led economy, and an increase in intergenerational equity. 2022-10-25

NABO reports its plans to the Speaker of the National Assembly The National Assembly Budget Office (Chief Cho Euysup) reported its plans to the Speaker of the second half of the 21st National Assembly in the reception room on Thursday, August 25, 2022.Chief Cho said that NABO will conduct its duties by putting budget, people’s livelihoods and communication at the center to support the 21st National Assembly to “bring new hopes." He presented NABO's plans to sophisticate revenue forecasting to reinforce support for budget evaluation, conduct research and analysis focusing on the people’s livelihoods, and enhance communication within and outside NABO to advance organizational culture and bring NABO closer to the people of Korea.National Assembly Speaker Kim Jin-pyo highly praised NABO’s plans. He asked NABO to improve revenue forecasting accuracy by comparing and analyzing forecasts using economic indicators and those using tax items, saying “repeated feedback is the most important matter when forecasting revenues.” He also advised NABO to strive to research on details of policy alternatives discussed during the legislative process. 2022-08-26

Cho Euysup takes office as the 10th Chief of NABO The inauguration ceremony of the 10th Chief of NABO was held on Wednesday, August 24, at the National Assembly Annex Building (Uijeonggwan). Chief Cho Euysup was appointed through an open recruitment process upon the approval of the House Steering Committee of the National Assembly and received a letter of appointment from the Speaker of the National Assembly, Kim Jin-pyo, on Wednesday morning at the Office of the Speaker.Chief Cho graduated from Sogang University with a bachelor’s degree in political science. He received an MA in economics from Sogang University and an MA in international relations from Columbia University, USA.His career in public service started when he passed the 12th legislative examination in 1994. Since then, he has served the National Assembly for 28 years as Tax Analysis Counsel of NABO, Deputy Chief of Staff of the National Policy Committee, Head of the Management and Maintenance Bureau of the National Assembly Secretariat, Deputy Chief of Staff of the Strategy and Finance Committee, Director General of the Estimates and Tax Analysis Department of NABO, Deputy Chief of Staff of the Culture, Sports, and Tourism Committee, and Chief of Staff of the Public Administration and Security Committee and the Special Committee on Budget and Accounts.At his inauguration ceremony, Chief Cho highlighted his ambitions to "guide NABO to faithfully perform its duties and support putting the national budget on the right path amid difficult fiscal situations."   2022-08-24

NABO meets the TDB-Mozambique KSP project group On Thursday, August 11, NABO (Chief Iksang Lim) met with the project team of the Eastern and Southern African Trade and Development Bank (TDB)- Mozambique Knowledge Sharing Program (KSP).Mozambique’s Deputy National Director for Public Debt at the Ministry of Economy and Finance, Ms. Ester dos Santos José and seven project members had an in-depth discussion with NABO’s Planning and Budget Division Director Sang-jun Lee, Budget Analyst Ji-hye Gang, and Estimate and Tax Analyst Ju-cheol Yoon regarding national debt management and fiscal sustainability. The KSP is a knowledge-intensive development cooperation program, providing policy advisory programs customized to partner countries based on Korea’s development experience and knowledge. 2022-08-11

NABO holds the 2nd Meeting of the 9th Budget Policy Advisory Committee The National Assembly Budget Office (Chief, Lim Iksang) virtually held the 2nd meeting of the 9th Budget Policy Advisory Committee on Wednesday, July 20, at 2 pm.In the meeting, 15 advisory committee members joined, and an in-depth discussion took place. The members offered comprehensive suggestions on future policy directions considering changing fiscal and economic conditions such as demographic changes, climate crisis, and global supply chain disruption. In addition, participants exchanged opinions on the role and key research tasks of the NABO regarding fiscal expenditure, fiscal reform, and taxation and economic issues. 2022-07-20