ChungBaek-e system
Ministry of Security and Public Administration

A. Problem Analysis

 1. What was the problem before the implementation of the initiative?
❍ Since the end of 1990s, the government of Republic of Korea had big interest to implement the electronic government on high-speed network and put its efforts on the implementation of information infrastructure with Straight Through Processing of administrative businesses. Until the end of 2000s, almost all administrative business processes have transformed into the electronic manners. ❍ However, the rapid transformation caused few drawbacks as the implementation progress done separately by individual businesses without considering interface among related systems or information. Local governments are using standard systems to process tax collection, public accounts and local HR provided from MOSPA(Ministry of Security and Public Administration). ❍ Due to the lack of interface among the central and local systems, inefficient offline workloads increased to validate the data. Also, this validation process involved eye checks and manual inputs by government officials that led errors like missing or wrong information. ❍ Moreover, few corrupted officials took advantages on the lack of interface among the systems by incurring the long time misuse or embezzlement on the national fiscal. ※ From 2006 to 2008, Seoul Metropolitan YangCheon-District Official's 2.2 Billion KRW Embezzlement from Social Welfare funds, From 2001 to 2007, Gyeonggi Province HwaSeong-City Official's 1.5 Billion KRW Embezzlement from Over-paid or mistaken Local Tax Payment, From 2007 to 2012, JeolLaNam Province Yeosu-City Official's 8 Billion KRW Embezzlement from Payroll, and more. ❍ These kinds of issues cause the waste of funds that should be used to the poors who desperately need the helps from the government and society. ❍ For instance, some officials fabricate the data on the system to reduce or exempt local taxes that should be fairly used for the people within the previous system. ❍ Moreover, the issues from several government officials caused to discredit all government officials and led a trend of distrust on the public offices from the people including the decrease of Korea's national integrity. ※ Transparency International Ranking of Korea among 176 Countries: Rank 39 (‘10) → Rank 43 (‘11) → Rank 45 (‘12)

B. Strategic Approach

 2. What was the solution?
❍ MOSPA, Ministry of Security and Public Administration of Korea, is a national government department that comprehensively supports and guides the local government bodies and inspects local governments regularly on the correctness of public accounts, tax collection every year. ❍ MOSPA has slowly recognized that the break-off of interfaces among the administrative information systems caused inefficient performance and corruptions during the audit on the Local Government. Since 2009, MOSPA started to find a resolution to resolve the root cause. ❍ From the audit on the local government, MOSPA found that there were specific patterns on the business mistakes and corruptions. ❍ Especially, MOSPA found that the break of interface among the systems does not only incur the misuse of incomplete system functionalities like long-term government fund embezzlement but also incur some unintentional omissions from heavily overload works. ❍ In order to resolve these kinds of issues, MOSPA has analyzed audit results of the local governments and categorized the possible mistakes and corruptions on the line of administrative businesses. Also, along with the requests to improve the processes on the impacted system, the national government has developed preventative scenarios to have constant monitoring on the issues from the lack of interfaces. ❍ The “preventive scenarios” have been developed by the officials from MOSPA and local governments, and it has been more specified with "ChungBaek-e Monitoring System" to prevent mistakes and corruptions from major businesses on the local governments. * The "ChungBaek" is the genuine symbol of integrity for public official in Korea ❍ Throughout the implementation of "ChungBaek-e Monitoring System", the severed information systems have connected to exchange the data automatically that helps to block the embezzlement and tax omissions from the business mistakes. Also, along with the above leverage, it provides positive impacts on the accounting transparency of local governments from interfaces with bank and credit card information. Most of all, it helps to create a public office culture that processes the businesses more accurately and fairly by themselves.

 3. How did the initiative solve the problem and improve people’s lives?
❍ The business results processed by information systems from local government could be a kind of big data, and ChungBaek-e System improves the administrative processes by extracting potential problems and identifying the accuracy of data during the big data processing on the local government businesses. ❍ Since reconciliating the data by manual process is not suitable for big data, ChungBaek-e system monitors the reconciliation by interfacing and accessing necessary data clusters in its database. ❍ In addition, it could reduce the cost of system development on the local governments by deploying the hardware devices like servers for 17 metropolitan local governments with the cloud computing concept to interface the related primary local government administrative information systems. ❍ From the perspective of officials, if a task processed by them faces an incident, the error will be notified to the officer. Also, at the same time, the notification will be shared automatically to the supervisor and auditor of the officer. By having this kind of notification, the public officer can enjoy highly convenient system by having a triple failsafe mechanism from mistakes and omissions.

C. Execution and Implementation

 4. In which ways is the initiative creative and innovative?
◯ 2010': Study the implementation of real-time monitoring system on Local Government - Analyze the business feasibility(B/C Ratio 2.44) and establish business plan and its schedule - 2011' Selected as a political subject for Fair Society (Dec. 2010, Prime Minister's Office) ◯ 2011': ISP(Information Strategy Planning) project to implement the real-time monitoring system for Local Government - Develop preventive 88 scenarios to apply the system (Local tax, Local duties, Local Finance, Saeol(Approval system for Local Government), Local HR, and others : Local ERP(Groupware)) - Establish the implementation plan for the metropolitan self government oriented infrastructure and detail schedule ◯ 2012' : Develop Chungbaek-e system & 1st Pilot - Implement system functionalities (75 Preventive Programs) and Pilot (Gyeonggi Province., Suwon, Goyang, Paju, Gwangju, Gapyung District) - Draw the pilot results (6 institutions, 2 billion KRW omitted tax, efficient administration process, and others) ◯ 2013' : Operation Support of Chungbaek-e system and 2nd Pilot - Working on Pilot with Incheon Metro-city (Bupyung, Seo, Ongjin, Yeonsu District) (System distribution and user training) - Secure the infrastructure to distribute and spread the system to nationwide local governments ◯ 2014' : ChungBaek-e System spread over all the local governments incorporating preventive programs connecting organically between administrative networks of Local Governments and National Networks of central government departments, MOSPA, MOLIT, MOHW. * MOSPA : Ministry of Security and Public Administration * MOHW : Ministry of Health and Welfare * MOLIT : Ministry of Land, Infrastructure, and Transport ◯ Target Systems to interface with ChungBaek-e System - Local Finance system for Local Government's Budget and Accounting(MOSPA) - Local Tax system for manage Local Tax and Delinquents(MOSPA) - Local Duties system for manage Local Duties and Fines(MOSPA) - Sae-Ol system for manage Civil Affairs such as Approval(MOSPA) - Local HR system for manage Local public Officer HR, Payroll, Code of conduct(MOSPA) - Construction Administration system for manage and approve on the construction(MOLIT) - Real Estate system for integrated management on the land related information(MOLIT) - Total Social Welfare system for integrated management on social welfare payments and services(MOSPA)

 5. Who implemented the initiative and what is the size of the population affected by this initiative?
❍ National Government officials - MOSPA is a key-player of ChungBaek-e with a role of overall planning, development of preventative administration scenarios, implementation and management of information systems, and others. - Collaboration for ChungBaek-e system interface with Ministry of Health and Welfare for Social Welfare and Ministry of Land, Infrastructure, and Transport for Construction Administrations and Land Information. ❍ Local Governments Officials - The metropolitan local governments work with MOSPA to have the environment for infrastructure implementation and to guide and to audit primary local governments. - The primary local governments analyze the monitoring results of ChungBaek-e system, modify the work history, and perform the preventative administration activity. ❍ Public Sector - KLID, Korea Local Information Research and Development Institute, receives overall management tasks to develop and to maintain the system from MOSPA. - It acts as a intermediary role between MOSPA and local governments for the development and maintenance of ChungBaek-e system. ❍ Private Sector - Multiple system integration companies join to implement the business requirements of the preventative administration program like developing the system, interfacing data, implementing the infrastructure, and more. - Multiple commercial software and hardware companies join to help implementing and maintaining the functionalities of ChungBaek-e system.
 6. How was the strategy implemented and what resources were mobilized?
❍ Research for System Implementation Plan - Period : February 2010 to October 2010 - Resources : 5 Persons(Total 40M/M, Outsourcing) - Budget : 90 Million KRW, All expenses paid by the government. ❍ Information Strategy Planning for System Implementation - Period : April 2011 to September 2011 - Resources : 13 Persons(Total 78M/M, Outsourcing) - Budget : 500 Million KRW, All expenses paid by the government. ❍ System Development and 1st Pilot - Period : January 2012 to December 2012 - Resources : 20 Persons(Total 240M/M, Outsourcing) - Budget : 4 Billion KRW, All expenses paid by the government. • Budget for System Development : 2.2 Billion KRW(including budget for audit : 0.2 Billion KRW) • Budget for Infrastructure(Large size, 6 local governments) : 1.3 Billion KRW • Labor costs for operation and maintenance : 0.5 Billion KRW ❍ System Enhancement and 2nd Pilot - Period : January 2013 to December 2013 (In-progress) - Resources : 12 Persons(Total 144M/M, Outsourcing) - Budget : 1.1 Billion KRW, All expenses paid by the government. • Budget for Infrastructure(small to mid size, 4 local governments) : 0.5 Billion KRW • Labor costs for operation and maintenance : 0.6 Billion KRW(including budget for Audit : 20 Million KRW)

 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
❍ It’s meaningful for the local governments themselves to prevent irrationality and errors of the local officials to process their normal tasks with the establishment of preventive programs linking 5 major administrative information systems and to notify automatically the monitoring cases to the local officials, managers and auditors in advance rather than taking a post control and audit from the national government. * Local tax, Local duty, Local finance(e-hojo), Local HR, Saeol(Approval system for Local Government) systems ❍ Contribution to the establishment of national security and well-being through the transparency of local government and the improvement of the national integrity and peoples’ credit on public office. ❍ Missing local tax assessments and collections - Total revenues assessed and collected from 5 pilot local governments adopted this system in 2013 are approximately 2.7 Billion KRW through running Local tax and Local duty related preventive programs. ❍ Result for 1st Pilot operation - Organization : SuWon, GoYang, PaJu, GwangJu, GaPyong - Cost Effectiveness : Collection of more than 2.73 Billion(KRW) => 2.54million$ - Ref. Collection details for Local Tax 6 Preventive programs (2.26Billion KRW) 1) Omission of an acquisition tax imposition after disposing lands of cities and provinces. => 17,722,000KRW 2) Omission of an acquisition heavy taxation imposition for a licensed bar, pub, and etc. => 526,563,000KRW 3) Imposition for property potion of residents' tax(a large size hospital and restaurant) => 24,861,000KRW 4) Omission of an acquisition tax imposition for properties that received construction administration completion permission. => 617,915,000KRW 5) Omission of an acquisition tax imposition for an illegal building construction => 607,234,000KRW 6) Omission of an acquisition tax imposition for individuals who violated real estate real name transaction law => 468,734,000KRW - Ref. Collection details for Local Duties 6 Preventive Programs (400million KRW) 1) Imposition for a private use of roads(by permission of the authorities) => 17,722,000KRW 2) Imposition for a private use of rivers(by permission of the authorities) => 526,563,000KRW 3) Imposition on business enterprises that violated the Food Sanitation Law =>24,861,000KRW 4) Imposition for a private use of the public surface of river(by permission of the authorities) => 617,915,000KRW 5) Imposition for a private use of public properties =>607,234,000KRW 6) Imposition on late real-estate registration => 468,734,000KRW - The system contributed to the taxation equity on the residents with the excavation of missing tax and was helpful for the local governments to strengthen the health of the local finance with the expansion of tax revenues.

 8. What were the most successful outputs and why was the initiative effective?
❍ For the monitoring of the ChungBaek-e system performance, various statistical functions were built into it and key metrics are as follows - The number of public officials to connect to ChungBaek-e system and real connection status. - The number of cases monitored and actions taken for each 75 preventive programs - The number of cases monitored and actions taken for each 5 business areas. - The number of actions taken, checking and exclusion for monitored cases. - Cost-effective amount of money through such as assessment of missing taxation. ❍ Integrated operational support website(abbreviated as Service Request here after) was established and played an important role as a window for identifying an improvement of the system and user requirements, and the main menus and functions are as follows - Bulletin board for each local government user’s requests for service and processing - A reference library for learning support(learning guides, user manuals and training videos for preventive administrative programs) - Bulletin board for ChungBaek-e system notifications and announcements - Open agora for expressing local government officials’ opinion on the effectiveness of the newly developed preventive scenarios.

 9. What were the main obstacles encountered and how were they overcome?
❍ The most difficult issue was the cooperation and collaboration among central departments, local governments and related public agencies in order to link data among related systems. - ChungBaek-e system was different one from other administrative systems and running agencies and departments were different each other. So, it was perceived as an additional task, thus it was hard for the local officials to accept it in the initial phase. - In addition, at the beginning of the project, private banks and credit card companies were reluctant to cooperate because they cannot expect any benefit to provide financial data to local government. So it was difficult to work with them. But afterwards they changed their attitude at the request of local governments to improve financial transparency and the cooperation was well under way. ❍ Public officials’ resistance and non-cooperation issue - In the beginning, ChungBaek-e system was known to prevent the corruption of government officials and all the officials were likely to be misunderstood as committing wrongdoing, upon this there were many cases against accepting it. - Thus, local governments officials were passive at attending the joint workshop for the development of the system and the scenarios but it was possible to induce them to participate actively with a continuous emphasis on the benefits of using the system, not noted in the audit and to prevent process mistakes so that they can protect themselves in advance.

D. Impact and Sustainability

 10. What were the key benefits resulting from this initiative?
❍ Prevention of local tax imposition omission, missing fine and corporate credit cards misuse helps for local government to gain the fiscal health(described in 7th item) - As for the cost effectiveness such as missing tax assessment, ChungBaek-e system can totalize money collected from actions taken on monitored cases, and thus each local government can grasp the cost effectiveness. ❍ Improving operational efficiency of government officials by saving task processing time - It was possible for the local officials to process complex tasks easily with the help of automatic linkage among disconnected information systems, the local government could reduce labor costs. - A pilot survey of two preventive programs implemented in the 1st project in 2012. showed that an average of 10 minutes for a unit task was saved and 100 minutes per week, 440 min per month and 5,200 min per year assuming that local officials is processing 2 tasks for a day. ❍ Persons on duty in local governments have changed their modest on transparent administration into positive with the adoption of ChungBaek-e system(The following is excerpts from interviews with some of the local government officials) - ChungBaek-e system is expected to make local public officials to deal with their tasks more precise and more transparent, even though they are not directly related to them.(Paju-city, official) - In consequence of a small number of corruptions, including public funds embezzlement scandals in Yeosu-city in 2012, there are distrust among national people on the entire public officials. I hope the system to be spread for a national level more fast.(Gyeonggi-Province official) - It’s anticipated for the local officials to handle their tasks faster and more precise with the help of ChungBaek-e system, which automates their complex works processed by hand such as local tax imposition.(Suwon-city, official)

 11. Did the initiative improve integrity and/or accountability in public service? (If applicable)
❍ ChungBaek-e system has proven its effectiveness over the 1st project in 2012 and 2nd in 2013 over a few pilot local governments, it will be spread throughout the country(243 local governments) by 2014 and additional preventive administration scenarios are expected to be developed and extended in the future. ❍ The national and local governments agreed to share costs for the operation and maintenance of the system, for the system sophistication costs, the national government is expected to secure. ❍ Also it is, as a base system of “autonomous internal control of local governments” to implement transparent local administration, used for MOSPA to estimate each local governments’degree of activation on “autonomous internal control”. ❍ Indexes for Internal control : for Korean Local Government - Indexes : ① Percentile for actions taken on monitoring cases ② Monitoring Output ③ Setup for system user privilege ④ Usage - Check List : Did achieve the original purpose by monitoring activities? - Evaluation Contents ① Percentile for actions taken on monitoring cases(Within 1 month from the first monitoring) ② tax imposition / reimbursement ③ Setup for system user privilege ❍ ChungBaek-e is an ingenious system in that linking and cross validating data from major administrative information systems in order to prevent errors and irrationality of local governments officials, countries with a variety of administrative systems can easily accept the concept of the system and can utilize it. ❍ As there are many information systems in local governments distributed by MOSPA, it led ChungBaek-e project in the first phase. But it’s possible for the local governments to get a general idea of the system and to utilize it. ❍ The Republic of Korea retains state of the art technologies and know-how on H/W and S/W area to share and distribute with all the administrative organizations worldwide, ❍ The Republic of Korea has a strong will to spread ChungBaek-e system to all the countries worldwide. We are confident this system will prevent public officials’ corruption for each countries and to improve national transparency thus will contribute to raise the life quality of a global citizen.

 12. Were special measures put in place to ensure that the initiative benefits women and girls and improves the situation of the poorest and most vulnerable? (If applicable)
❍ Because this system can be used by all the local governments in Korea, it affects positively the local officials to do their daily works in a secure and convenient manner. ❍ Information project in Korea growed up rapidly based on high-speed broadband and wireless networks, but there implies information breaches between systems behind it. ❍ Thus, ISP should have to take into account of other ministries’ and departments’ work process when the next new administrative information system is developed and established. If the information system is difficult to implement basic functions then data linkage through ChungBaek-e system may be an alternate plan. ❍ That is, it possible for the ChungBaek-e system be utilized as a hub to connect information systems that are run individually by local governments. ❍ In the event of a new type of local government corruption, quick prevention program development can be implemented, applied and deployed to local governments in batches, so effective prevention of corruption will be possible. ❍ As ChungBaek-e system can be implemented as corruption prevention system as well as administrative efficiency programs, thus if the officials are willing to take advantage of any number of additional features of it, it is flexible. ❍ ChungBaek-e system’s utilities, through constant media report, will be recognized as meaningful in the public sector transparency improvement by the final beneficiaries, the public and local residents, and expected to be helpful to improve future national integrity.

Contact Information

Institution Name:   Ministry of Security and Public Administration
Institution Type:   Government Department  
Contact Person:   Soon-Wan Park
Title:   Audit Division  
Telephone/ Fax:   +82-2-2100-4352/4395
Institution's / Project's Website:  
Address:   209 Sejong-daero(Sejong-ro), Jongno-gu, Seoul, Republic of Korea
Postal Code:   110-760
City:   Jongno-gu
State/Province:   Seoul

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