5% more budget to be added to e-Government¡¦KRW 100 billion down in 4 years

[ Lim Seong Yeop starleaf@ ] | 2017-12-07 10:13:07
Ministry of Public Administration and Security e-government support project budget fell below 100 billion won in four years. In order to effectively open the era of the 4th industrial revolution, it is necessary to give companies opportunities to develop technology by applying advanced technology in the public sector to innovate their jobs and services and e-government projects are reduced and it is concern to be further reduction.

According to the government and related industries on December 6, the budget for e-government support project for next year was finalized to KRW 86.9 billion through the National Assembly. This is a decrease of 5 % (KRW 4.5 billion) from the KRW 91.447 billion originally submitted to the National Assembly. Compared to the KRW 126.3 billion budget this year, the project budget was cut by 31.1 % (KRW 39.4 billion) in one year.

The ministry has already reduced its budget by 27.6 % this year to the National Assembly. Many projects, such as building next-generation criminal justice information systems, building next-generation resident registration systems, building intelligent e-government standard platform systems, and reforming the whole e-procurement system, have focused on establishing an informatization strategy plan (ISP) .

Furthermore, e-government-related ISP projects have tripled from four this year to twelve next year. Next year, more than 5 billion won of e-government projects will include the construction of next-generation immigration administration system, establishment of smart consulate civil portal system for overseas consulates, establishment of adaptive security system based on artificial intelligence, establishment of national master data identification and management system.

However, in the process of reviewing the budget of the National Assembly, the budget was reduced by 5%, resulting in a budget reduction of nearly KRW 40 billion in a year.

Especially, the National Assembly announced that it had proposed a reduction of 5% in the process of budget deliberation based on the difference in winning bid for e-government business. According to the Ministry of Labor, the bidding rate of e-government projects was 92% last year. The National Assembly reduced the budget by the difference of the winning bid considering the difference of winning bid of about 8%.

"All the projects that have applied for the budget next year have been budgeted, and it is decided to reduce 5% of the total amount, so we need to adjust additional budget for each project."

The expert said, "The reduction of 5 % is not the effect of the project to be carried out next year, but it is right that it is in a position to make it difficult to maintain it."

However, even if the budget is lowered, the competition price will be lowered when companies compete in the price selection process.

This will inevitably lead to business disruption and quality deterioration. The logic of the budget cuts in the National Assembly is that it does not reflect the characteristics of the market at all.

According to an IT industry expert, "The difference between the winning bid is a structural problem in the procurement market, and if you reduce it by 5%, you will not be able to win the winning bid. Instead, you have to compete with each other. "If you think about budgeting this way, the business environment of small and medium-sized IT companies will be getting worse."

Meanwhile, it is pointed out that there is a lack of government commitment to e-government regarding e-government budget reduction.

"It is a matter of not actively engaging in investment related to the e-government while discussing e-government cooperation with governments around the world," said Professor Kwon Hun-young, professor at Korea University`s Information Security Graduate School. Said, "As a result of the bold e-government investment of the Kim Dae-jung and Roh Moo-hyun governments, we can see that the past decade has practically retreated, and the new government should be restored."

By Lim Seong Yeop starleaf@


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