1. Research Goals and Methods

■ Research Background and Goals

￮ This study assessed the limitations and challenges identified in the actual operation of the Local Fiscal Investment Review System (hereinafter referred to as “the Review System”) in Jeonbuk State and developed a Jeonbuk-specific investment review operational model tailored to its administrative environment, fiscal conditions, and project structures.

￮ The Review System is a preemptive fiscal control mechanism established under Article 37 of the Local Finance Act and is operated to assess the necessity and feasibility of major investment projects undertaken by local governments, evaluate the adequacy of fiscal soundness, and forestall duplicate or excessive investment. However, in Jeonbuk State, structural limitations persist, particularly due to the low objectivity of demand, benefit, and impact analyses resulting from the high proportion of non-standard projects in the cultural and tourism, agriculture, forestry, fisheries, and marine sectors. In addition, frequent rotational assignments and limited experience among county-level officials undermine the quality of review request documents. Meanwhile, the region’s institutional and operational foundations for the Review System are still developing, as the Public Investment Management Center (“the Center”) was established only at the end of 2024. Moreover, the declining approval rate of the Central Investment Review from 2022 to 2024 highlights the need to refine project plans and incorporate pre-review processes.

￮ Therefore, this study presents a Jeonbuk-specific local fiscal investment review model by assessing the current status of the region’s fiscal investment projects and investment review operations. It includes a comparative analysis of centers in other cities and provinces, thereby establishing operational systems, review processes, and standard review criteria tailored to Jeonbuk State.

■ Methodology and Scope

￮ This study employed the following four methods

￮ Institutional structures and review criteria were systematically organized by examining relevant legal, institutional, and academic materials: the Enforcement Decree of the Local Finance Act; the “Operational Guidelines for Local Fiscal Investment Review and Feasibility Studies” issued by the Ministry of the Interior and Safety; guidelines and manuals of centers in other cities and provinces; and existing studies on such centers.

￮ An operational case analysis was conducted to compare legal bases, organizational structures, scopes of work, and review items of 14 centers nationwide. In particular, an in-depth analysis was performed to examine pre-review methods, the quality of economic feasibility analyses, and modes of review committee participation at leading institutions in Seoul, Busan, Gyeonggi, and Chungbuk.  

￮ Surveys and interviews targeted 59 project departments of cities and counties in Jeonbuk State to assess their satisfaction with pre-consultation processes. Additionally, 12 members of the Jeonbuk Local Fiscal Investment Review Committee were surveyed to gauge perceived usefulness and satisfaction with review opinion reports, yielding insights for enhancing the local fiscal investment review process in Jeonbuk.

￮ Finally, this study proposes a Jeonbuk-specific operational model, stage-specific implementation roadmaps, and directions for institutional improvement.

2. Conclusions and Policy Recommendations

￮ The roadmap for the Jeonbuk-specific investment review operational model is structured around three strategic priorities: (1) enhancing the efficiency of fiscal operations; (2) strengthening the competence of city and county public officials; and (3) improving the expertise and reliability of the Jeonbuk Center. Accordingly, this study presents action items to be pursued in a phased manner over the short term (1–2 years), medium term (3–5 years), and long term (over 5 years).

￮ Short-term action items include (1) overhauling review criteria and standard review methods; (2) operating regular and ad hoc pre-consultation programs; (3) building a database of project cases and previous review results; (4) institutionalizing regular training for public officials; and (5) updating operational guidelines and expanding the Center’s network.

￮ Mid-term action items include (1) completing project-specific standard review manuals;

(2) operating advanced training programs and mentoring systems for cities and counties; (3) establishing a legal basis (ordinances) for setting up and running the Center; and (4) pursuing a phased expansion of the functional scope to include feasibility studies.

￮ Long-term action items include (1) establishing a performance management system that links investment review with post-project management and (2) introducing big data–and AI-driven review support systems. 

￮ Taken together, this study presents practical measures to enhance the quality of pre-consultation and review request documents, strengthen the professionalism and objectivity of review opinion reports, and streamline investment review scheduling.

￮ To construct a local fiscal investment review operational system for Jeonbuk, a phased approach of “strengthened pre-review → standardization → data-driven enhancement” is necessary. Looking ahead, the successful implementation of the roadmap herein, supported by follow-up research and institutional improvements, will empower Jeonbuk State to operate its fiscal investment projects in a more rational and systematic manner. 

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