| 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.