BAI to Strengthen Accounting Audits of Constitutional Agencies Including National Election Commission

Chairman Kim Hocheol Holds Press Briefing

Restoring Trust in Election Management Emerges as Key Issue After Local Ballot Paper Shortage

Audit Operations to Be Redesigned Around “Enhancing Public Convenience”

Protecting Proactive Admin

On June 24, Ho Cheol Kim, Chairman of the Board of Audit and Inspection (BAI), announced plans to strengthen accounting audits of constitutional institutions with weak external oversight. In the wake of the ballot paper shortage during the recent local elections, restoring trust in election management has become a major national agenda. Against this backdrop, the BAI made clear its intent to reinforce both accounting and performance audits of independent constitutional institutions such as the National Election Commission, fulfilling its role as the nation’s top audit body.

Yonhap News Agency

In his remarks at a press briefing with BAI correspondents on the same day, Chairman Kim stated that the overall audit operations would be redesigned with a focus on "enhancing public convenience." He particularly emphasized, "We will strengthen accounting audits of constitutional institutions and similar bodies with weak external oversight as the nation’s top audit institution." This reflects the view that even organizations guaranteed independence and neutrality due to the nature of their work must not be left outside the scope of transparency in budget execution and administrative operations.

The recent ballot paper shortage at the Election Commission has increased public distrust in election administration. While the BAI acknowledges the constitutional independence of the National Election Commission, it believes that, within the scope of its authority, it can examine the appropriateness of budget planning and execution, as well as the operation of related administrative systems. The BAI plans to conduct regular and performance audits in the second half of this year, taking into account the unique features of constitutional institutions and prioritizing accordingly.

Another pillar Chairman Kim highlighted was a fundamental shift in audit operations. He declared, "We will shift the audit paradigm to focus on enhancing the convenience of the ultimate consumer, the public." This reflects a willingness to address criticisms that the existing focus on compliance-centered audits has diminished the effectiveness of administrative improvements and simply emphasized fault and accountability among public officials, leading to passive attitudes on the ground. Going forward, audits will not merely identify regulatory violations but will be designed to reduce inconveniences in people’s lives and resolve chronic administrative problems.

To this end, the BAI will expand public participation from the audit selection stage and broadly reflect external audit demands, including those from the National Assembly and experts. During the audit process, the focus will shift from merely pointing out problems to analyzing their root causes and presenting fundamental solutions. Audit outcomes will also move beyond disposition-based results to consider both institutional improvement and the actual enhancement of public convenience. The BAI will finalize detailed implementation plans through board deliberations and resolutions in August, aiming to fully apply the new paradigm to audits starting next year.

Protection for proactive administration will also be strengthened. Chairman Kim said, "Even if a public official was compelled to act beyond the rules, if the result was an increase in public benefit, we will not hold them accountable." The intent is that audits should be a system that supports public officials in acting for public benefit, rather than constraining them on the ground. While this does not mean condoning disregard for laws and procedures, it does mean that responsibility will be assessed with both administrative realities and public interest outcomes in mind.

To establish the new audit framework, the BAI is currently conducting 10 pilot audits focused on public convenience. These cover topics such as illegal drug importation, protection of financial investors, safety in multi-use sports facilities, safety of household chemical products, welfare blind spots for people with disabilities, safety of new technologies such as secondary batteries, and information security certification systems. Based on the results of these pilot audits, the BAI plans to refine its audit guidelines and revise necessary regulations in parallel.

The BAI will also expand audits on major national policy issues. It has designated response to the climate and environmental crisis as a major audit field for the next four years, establishing a roadmap focused on three pillars: greenhouse gas reduction, climate change adaptation, and the growth and R&D of green industries. The scope will include the adoption of zero-emission vehicles and charging infrastructure, support for climate crisis response in the industrial sector, improvement of agricultural, livestock, and fisheries infrastructure, and operation of climate response funds. As budgets for climate crisis response increase, the BAI intends to assess both policy effectiveness and the appropriateness of fiscal execution.

Preventing local corruption and financial leakage has also been identified as a key focus for the second half of the year. Chairman Kim explained, "With regional extinction and widening gaps between regions, central government investment in local areas is increasing," adding, "We will proactively eliminate local corruption and financial leakage that could undermine the effectiveness of policies and projects." The BAI will concentrate on structural corruption where local power is intertwined with vested interests, as well as waste of funds in subsidies and consignment projects, with the newly established Anti-Corruption Investigation Bureau leading the effort.

An artificial intelligence (AI)-based system will also be introduced to improve the efficiency of audit work. The BAI aims to establish a code of ethics defining the principles and limits of AI use within this year and will form an AI Ethics Committee involving expert groups. In the mid- to long-term, the BAI will develop its own AI models and build an audit data hub to advance data analysis, risk detection, and audit documentation tasks. Chairman Kim stated, "By building an AI-based audit system, we will enhance both the efficiency and capability of audit work," and added, "We will also establish a system to concretely analyze, measure, and calculate the effects of audits on improving public convenience."

Chairman Kim also shared achievements in BAI reform since taking office. He noted that important policy decisions have been excluded from work inspection targets, and that exceptional audit cases have been limited to cases involving illegal or corrupt acts. The special investigation bureau, which caused controversy over political audits, was abolished and restructured as the Anti-Corruption Investigation Bureau, specialized in personnel inspection and anti-corruption. Pre-emptive controls by the Board of Audit and Inspection have also been strengthened to reinforce internal checks during the initiation and processing of audits.

This content was produced with the assistance of AI translation services.