Allocation of extinction funds causes controversy

As the allocation amount for the Local Extinction Response Fund (Extinction Fund) for local self-governing bodies next year was determined on Monday, it was revealed that over 100 billion won was earmarked to local governments that received the extinction fund last year but have hardly executed it. The extinction fund is a program that distributes a total of 10 trillion won over 10 years, 1 trillion won each year, to local governments and municipalities nationwide in danger of extinction.

According to a comprehensive survey by The Dong-A Ilbo on Thursday, among the 107 basic local governments that received the extinction fund last year, 19 had a fund execution rate of less than 2%. Yet, a total of 104.5 billion won was additionally allocated for next year. This includes seven basic organizations with a 0% execution rate. In a situation where the existing budget is not properly used, funds were blindly shoved through again.

Yangyang County in Gangwon Province received funds with plans to build a cargo terminal next to Yangyang International Airport but suspended the project as regular flights to the airport were disrupted. Pocheon City in Gyeonggi Province received 3.5 billion won for the construction of dormitories for foreign workers but faced opposition from residents, causing delays in the project. "With funds being allocated and disbursed at the inception phase where the project plans are not clearly formulated, hence the low execution rates," said Song Yoon-jeong, a researcher at the Fiscal Reform Institute. “There should be more sophisticated pre-consultation and post-evaluation of fund execution."


mmj86@donga.com