NABO - National Assembly Budget Office

On Friday October 19th, National Assembly Budget Office celebrated the 15th anniversary of its establishment at the central hall of the National Assembly Annex Building. Moon Hee-sang, Speaker of the National Assembly, Hong Young-pyo, floor leader of the Democratic Party, Kim Kwan-young, floor leader of the Bareunmirae Party and other VIPs as well as approximately 180 staff members of NABO participated in the ceremony.

The ceremony began with the screening of the 15th anniversary celebratory video and proceeded through the commemorative address by Chunsoon Kim, Chief of National Assembly Budget Office, presentation of plaques of appreciation to congressmen, words of encouragement by Moon Hee-sang, Speaker of the National Assembly, and congratulatory address by floor leaders of congressional parties.

In his words of encouragement, Speaker of the National Assembly Moon Hee-sang stated that “NABO has become the fiscal think tank of the National Assembly as well as a representative fiscal analysis institution of the country.” He also requested that “NABO continue to tirelessly contemplate the fundamental fiscal direction and economy of the country by thoroughly analyzing the future of the Republic of Korea.”

Floor leaders Hong Young-pyo and Kim Kwan-young expressed their anticipation regarding NABO’s future endeavors. Hong Young-pyo, floor leader of the Democratic Party, stated expressed his wishes that “NABO will play a greater role as the protector of national finance that holds the sweat of our countrymen.” Kim Kwan-young, floor leader of the Bareunmirae Party, encouraged that “NABO will continue to grow based on its 15 years of expertise and fairness.”

In his commemorative address, Chunsoon Kim, Chief of National Assembly Budget Office, stated that “NABO will not settle for the past 15 years of success and will prepare to leap towards another 15 years into the future.” He also expressed his aspiration to “complete long-term economic forecast until 2050 by end of this year, and strengthen policy research into the North Korean economy and reunification of the Korean peninsula as a think tank that supports the National Assembly and a faithful fiscal watchdog that prepares for the future of national finance.”

On August 28th, National Assembly Budget Office conducted a work report session to the Steering Committee of the National Assembly and received a budget evaluation for the 2017 fiscal year. On August 30th, NABO also received a budget evaluation for the 2017 fiscal year from the Special Committee on Budget and Accounts.

The National Assembly Budget Office (Chief of NABO Chunsoon Kim) launched the first version of both desktop and mobile websites of its fiscal and economic statistics system (NABOSTATS; www.nabostats.go.kr) on September 1.

NABOSTATS is a statistics information system by which NABO can now render comprehensive fiscal and economic statistics information service for the National Assembly's legislative activities. The system will support legislative efforts by providing not only fiscal and economic statistics but also statistics related to major policies of parliamentary committees and government departments, statistics on North Korea, and statistics from international bodies such as the OECD and the IMF. NABOSTATS also presents the National Assembly's deliberation history in a structured manner, particularly concerning its fiscal activities including modifications, incidental opinions, and demands for corrective actions made after its deliberations on budget bills and settlement of accounts.

On August 31, NABO did a detailed demonstration for its employees on how to use the website prior to the launch of NABOSTATS and identified through the Q&A session with the employees how NABOSTATS should be improved and enhanced.

The National Assembly Budget Office (NABO) received the annual consultation team from the ASEAN+3 Macroeconomic Research Office (AMRO) on August 30 (Thursday) and discussed economic trends and major issues in Korea.

The seven-member annual consultation team headed by Dr. Sumio Ishikawa, lead economist of AMRO, met Jongku Lee, head of the Administrative Budget Analysis Division, and analysts from the Budget Analysis Department, Estimates and Tax Analysis Department, and Economic Analysis Department to review fiscal performance and discuss the fiscal outlook, fiscal stability, and other issues.

AMRO is a regional macroeconomic surveillance organization representing all ten ASEAN member states (Big 5: Indonesia, Malaysia, Thailand, Singapore, and the Philippines / Small 5: Brunei, Cambodia, Laos, Myanmar, and Vietnam) plus Korea, China, and Japan.

On Monday July 16th, 2018, NABO (Chief: Chunsoon Kim) held a Grand Debate on National Finance in Celebration of the 70th Constitution Day to review the role of national finance in the context of economic development over the past 70 years and discuss a new paradigm for national finance in an altered policy environment.

NABO Chief Kim Chunsoon explained that as we celebrate the 70th anniversary of the adoption of the constitution, this debate was prepared for the National Assembly and academia to come together and reflect upon the role of national finance within the context of economic growth and explore the role finance will play in the coming years.

Speaker of the National Assembly, Moon Hee-sang highlighted the overwhelming number of challenges such as social polarization, youth unemployment and decreasing working population, despite Korea’s remarkable economic growth over the past 70 years, and conveyed his hopes that this debate will serve as a stepping stone towards a bright future for public finance.

The moderator of the debate was Dr. Oh Yeon-cheon, President of the University of Ulsan (former SNU president). The first presentation on National Development and the Role of Finance was given by Dr. Kim Seong-tae of Cheongju University. Dr. Kim stressed that finance has played a strong role in driving economic growth, and that it is time to shift the finance paradigm to tackle new challenges such as low birth rates and aging.

The second presentation on the Future Issues and Roles of Korea’s Finance was given by Dr. Ha Yeon-seob of Yonsei University, who pointed out that the population structure, technological changes and the shift in inter-Korean relations could become major factors in increasing fiscal burden. He stressed that in the future, fiscal management should be undertaken in a transparent manner based on the people’s demands.

Publication of the latest report - Economic Trends & Issues (Issue No. 68)

The first are the prevailing economic trends. Korean exports have continued to rise in recent months, but the economic recovery has been slow due to the low employment rate and economic index. The rise in employment in May was also very low, at less than 100,000 people.

The next are the characteristics and implications of the average manufacturing capacity utilization rate. While the average manufacturing capacity utilization rate in major countries has increased rapidly after a temporary stagnation, the utilization rate in Korea has been dropping steadily. If the utilization rate continues to fall at a similar rate, it will have a negative impact on investments and employment.

The last is the role of domestic institutional investors in ESG investment. There is growing interest in ESG investment in Korea as major countries continue to invest more heavily in the area. ESG is a method of investment in which non-financial information such as environmental, social, and governance information, in addition to financial statements. When comparing with the ESG points of each country in 2017, Korea scored 58.3 points, which is lower than the OECD average of 73.7 points, which indicates a high level of non-financial risks. Therefore, it is necessary to encourage ESG investment rather than short-term investment among domestic institutional investors given their lack of enthusiasm for this form of investment.

Detail information can be found on following website.
➡️https://bit.ly/2Knt0Nm

[NABO NEWS]

The National Assembly Budget Office (Chief Chunsoon Kim) announced that the 10th Annual Meeting of the OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions was successfully held from Monday, July 2 to Wednesday, July 4, 2018.

At the request of the OECD, Korea’s National Assembly Budget Office became the first one in Asia to hold the meeting, which was jointly chaired by Chunsoon Kim, chief of the National Assembly Budget Office, and Robert Chote, director of the UK Office for Budget Responsibility. It was the largest meeting of fiscal institutions ever held, with the participation of thirty-six countries including thirty OECD member countries, ten international organizations such as the EU and the IMF, and eighty-one representatives including Keith Hall, director of the US Congressional Budget Office and Rudolph Penner, former chief economist at the Office of Management and Budgets. The meeting was even more meaningful in that it included the participation of six non-member countries including China, Indonesia, Ukraine, Slovenia, Brazil, and Peru.

The meeting kicked off at 9:00am, Tuesday, July 3, 2018 at the conference hall of the Special Committee on Budget and Accounts, with congratulatory messages from Assemblyman Yeongpyo Hong, Seongtae Kim, Gwanyeong Kim and Byeongwan Jang, floor leaders of the Democratic Party, Liberty Korea Party, Bareun Mirae Party, and Peace Party, respectively.

After their messages, Chief Chunsoon Kim delivered a keynote speech on the topic of "The Role of the National Assembly in Building Effective Financial Governance," with implications through an international comparison between the diverse budget systems of seventy countries. In the following session allotted to the member of the National Assembly of the Republic of Korea, Assemblymen Gijoon Shim, Jongseok Kim, and Hyehoon Lee exchanged their opinions on directions for improving financial systems with experts from different countries, on the topic of "International Comparison of the Exercise of the Financial Rights of the National Assembly".

The session for the assemblymen was followed by nine more sessions including the Budgeting Outlook of the OECD, National Debt Sustainability Analysis, Introduction to New Institutions and Presentation of Exemplary Cases of Existing Institutions, and Analysis of the US OBO Hearing, where various financial and economic issues were discussed.

Chief Chunsoon Kim said, "It was a meaningful meeting in that the representatives of each country gathered together to find directions for sound financial management."

The 11th Annual Meeting of the OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions will be held in Portugal in 2019.

[NABO NEWS]

On Thursday, July 5, 2018, the National Assembly Budget Office (Chief Chunsoon Kim) invited the participants of the 10th Annual Meeting of the OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions to the JSA.

The visit to the JSA was the last part of the meeting held from July 2 to 4, and involved thirty-six representatives from twenty-two countries.

The representatives were taken on a tour of the JSA, starting from the JSA Visitor Center and proceeding to Freedom House and the conference building. After the tour, the representatives said, "Our visit to the JSA was a meaningful experience given that it took place at a time when peace finally appears to be coming to the Korean Peninsula."

In response, Chief Chunsoon Kim answered, "I hope that your visit to the Panmunjom, which is turning from a symbol of separation into a new milestone for peace, will strengthen international support for peace on the Korean Peninsula."

[NABO NEWS]

After the 10th Annual Meeting of the OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions, Chunsoon Kim, chief of the National Assembly Budget Office, had a meeting - held as a follow-up to the MOU signing in 2016 - with Keith Hall, director of the US Congressional Budget Office, at which they discussed measures for expanding exchanges, including training.

Since the signing of the MOU in May 2016, the National Assembly Budget Office and the US Congressional Budget Office have been cooperating in various areas, such as joint research and the exchange of relevant information for improving governmental support in budget and accounting analysis, mid/long-term economic forecasting, financial program assessment and cost estimate, mutual cooperation through seminars and workshops, exchanges between researchers and employees of both institutions, and cooperation and exchange of information on interested areas.

At 9:00am, Tuesday, July 3, 2018, the National Assembly Budget Office (Chief Chunsoon Kim) held an opening ceremony for the 10th Annual Meeting of the OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions at the conference hall of the Special Committee on Budget and Accounts to welcome the participants.

The 10th Annual Meeting of the OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions was first held in 2009 in Rome after the 2008 global financial crisis, with the participation of representatives of independent fiscal institutions of thirty-five OECD member countries, whose role is to provide professional and independent economic and budget analysis in order to discuss issues related with improving fiscal sustainability and determining the right direction for budget management.

Programs at the opening ceremony included the opening address by Chunsoon Kim, chief of the National Assembly Budget Office, a congratulatory message by Kim Sung-gon, secretary-general of the National Assembly, congratulatory video messages from representatives of each negotiation bodies, and welcome speeches by Luiz De Mello, economic counsellor to the chief economist of the OECD, and Robert Chote from the UK Office for Budget Responsibility.

In their respective video messages, the representatives of each of the negotiation bodies declared that the Annual Meeting of the OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions is one of the most influential events in the area of budgeting, and wished for a successful meeting.

Chief Chunsoon Kim gave a keynote speech on the topic of "The Role of the Parliament in Building Effective Financial Governance," and compared and analyzed the public financial systems of more than seventy countries by using the Legislative Budget Institution Index. He also stressed the necessity of an Asian network, saying that independent fiscal institutions can greatly contribute to ensuring fiscal transparency and responsibility.

The first session of the meeting was attended by members of the National Assembly of the Republic of Korea, including Gijoon Shim (Democratic Party), Jongseok Kim (Liberty Korea Party), and Hyehoon Lee (Bareun Mirae Party), with the following agenda: "International Comparison of the Exercise of the Financial Rights of the Parliament". At the meeting chaired by Robert Chote, chairman of the UK Office for Budget Responsibility, Keith Hall, director of the US Congressional Budget Office, Greg Power, director of the UK Global Partners Governance, and Joachim Wehner, associate professor at the London School of Economics and Political Science, various cases were presented and discussions were held with invited members of the parliament.

Assemblyman Gijoon Shim asked questions about the financial rights of the parliament and the differences with actual rights based on the experiences of each country by quoting Chief Chunsoon Kim's keynote speech, while Assemblyman Jongseok Kim emphasized that it is not advisable for the parliament to have financial rights in accordance with the decision-making system, even in countries whose national assembly or parliament have substantial financial rights, and continued with a discussion on the opinions of each country. Assemblyman Hyehoon Lee stressed the importance of ensuring information access rights and of resolving information asymmetry for the sake of maintaining a sound balance between the National Assembly and the government, and asked them to share their experiences in securing financial information in their respective countries.

The meeting started at 2:10pm at the Kensington Hotel
Yoido, and proceeded in the following order: (Session 2) OECD Budget Prospects: National Assembly Budget Procedures and Independent Fiscal Institutions; (Session 3) Sustainability Analysis of Government Debt; and (Session 4) Financial Sustainability and Healthcare Policy.

[NABO NEWS]
The National Assembly Budget Office (Chief Chunsoon Kim) signed an MOU with the Brazilian IFI ( ) for mutual cooperation on Monday, July 2, 2018.

This MOU was signed as a result of the 10th Annual Meeting of the OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions, which was attended by the recently created Brazilian Independent Fiscal Institution for the first time. On the day of the meeting, Chief Chunsoon Kim had a discussion with Felipe Salto, executive director of the Brazilian Independent Fiscal Institution, on the differences between the budget systems of the two countries, and shared with him his experience serving at the budget office.

Chief Chunsoon Kim said, "We plan to strengthen cooperation between the two institutions through this MOU. Brazil is a major country in South America, and the National Assembly Budget Office will support the newly created Independent Fiscal Institution of Brazil in its efforts to firmly establish itself."

Chief Kim also attended bilateral meetings with Y. Markevich, member of the Ukrainian Parliament, Robert Chote, chairman of the Office for Budget Responsibility, Jόn Blӧndal, head of the division and editor-in-chief of the OECD Journal on Budgeting, and other representatives attending the 10th Annual Meeting of the OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions, in order to discuss major issues.

[NABO NEWS]

Chunsoon Kim, Chief of the National Assembly Budget Office, accepted an interview with the Dong-a Ilbo on financial systems after the publication of his book titled 'Theories and Practices of National Finance'.

As one of the most experienced experts in government budgeting, Chief Chunsoon Kim stressed that it is important to upgrade the budget approval process by implementing the “Legislation-based Budget” mentioned during a discussion about a constitutional amendment. Chief Chunsoon Kim said, "Many other countries, including Japan and Sweden, have implemented the Legislation-based Budget to improve the transparency and responsibility of budgeting.

“There should be more responsibility to keep the deadline for a budget proposal.” (Dong-a Ilbo, 21 June 2018)
➡️http://news.donga.com/3/all/20180621/90681350/1