Korea Local Finance Association to Assess Finances of 243 Local Governments... Selected as Analysis Institution for the First Time

Association Begins Review of All 243 Local Governments Nationwide
On-site Local Finance Analysis Inspections Start August 5
In-depth Evaluation to Enhance Fiscal Soundness and Efficiency
Chairman Seonyong Jung: “We Will Lead Local Government Fiscal Improvement”

The Korea Local Finance Association has been selected as an institution responsible for conducting local finance analysis for the first time, undertaking the role of inspecting the financial operations of local governments nationwide and identifying ways to improve them.

The Korea Local Finance Association (Chairman Seonyong Jeong) held the "2026 Local Finance Analysis On-site Inspection Team Launch Ceremony" on the 22nd in the association's main conference room, with 39 participants including the Head of the Fiscal Cooperation Division of the Ministry of the Interior and Safety and local finance experts. They took a commemorative photo after the ceremony. Provided by the Korea Local Finance Association

The Korea Local Finance Association (Chairman Seonyong Jung) announced that it officially launched the analysis process by holding a ceremony to inaugurate the “2026 Local Finance Analysis On-site Inspection Team” in the association’s main conference room on the 22nd. The event was attended by 39 people, including the Head of the Fiscal Cooperation Division of the Ministry of the Interior and Safety and local finance experts.

Local finance analysis is a system established in accordance with Article 55 of the Local Finance Act, which comprehensively evaluates the fiscal status and operational performance of 243 local governments across the country, based on their settlement data. The Ministry of the Interior and Safety commissions a specialized institution to conduct the analysis every year, and the Korea Local Finance Association was selected for the first time this year as the implementing body.

The results of the fiscal analysis serve as key indicators for setting the direction of local governments’ fiscal operations. Top-performing local governments are provided with financial incentives such as special grants, while those in need of improvement receive customized fiscal consulting support.

The Association has built its expertise across all areas of local finance, from preparing local finance statistics to the management of local accounting, local contracts, and public assets, as well as financial and cost analysis consulting. For this year’s analysis, the Association plans to leverage its accumulated experience to move beyond simple evaluation, aiming to present diagnoses and improvement measures that local governments can actively utilize.

The newly launched on-site inspection team comprises more than 30 local finance experts, including professors and research fellows, as well as officials from the Ministry of the Interior and Safety and the Association. The inspection team will carry out on-site inspections at the main offices of metropolitan and provincial governments across the country from August 5 to 31.

During the inspection process, the team will verify the accuracy of the financial data submitted by local governments, analyze strengths and weaknesses for each financial indicator, and develop improvement measures to enhance the efficiency of fiscal management.

The Korea Local Finance Association (Chairman Jeong Seonyong) held the "2026 Local Finance Analysis On-Site Inspection Team Launch Ceremony" on the 22nd in the association's main conference room, with 39 attendees including the Head of the Financial Cooperation Division of the Ministry of the Interior and Safety and local finance experts. Provided by the Korea Local Finance Association

Chairman Seonyong Jung of the Korea Local Finance Association stated, “As the start of the 9th term of local governments has raised expectations for policies that residents can truly feel, our role in accurately assessing the current state of local finance has become even more important. We will work closely with the Ministry of the Interior and Safety and the inspection team members to enhance the professionalism and reliability of the analysis and do our utmost to ensure that the results lead to substantial fiscal improvement and strengthened policy capabilities for local governments.”

The Association plans to compile the results from both the on-site inspections and document analysis to produce this year’s local finance analysis outcomes. At the end of the year, the Ministry of the Interior and Safety will announce the final results and commend outstanding local governments, while the Association will continue to support responsible fiscal management by providing customized consulting and other services to local governments.

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