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Notes
78 – 2 – SUPREME AUDIT INSTITUTIONS’ INPUT INTO POLICY FORMULATION
Key Function 3: Establishing regulatory policy
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Box 2.9. The SAI of Korea – comprehensive audit and inspection to support the success of regulatory reform in Korea
Objective
The “Framework act of administrative regulation” was enacted in 19989 as excessive regulation had hindered the efficiency of economy and potential of growth. Following repeated claims by stakeholders of the lack of effectiveness of reform activity, Korea’s SAI, the Board of Audit and Inspection (BAI), examined the appropriateness of system and management and the status of implementation and execution of the economic regulatory reform.
Type
Other (comprehensive) audit, performance audit.
Scope and methodology
The scope included: review the quality of the implementation process of regulatory reform committee activities, the regulatory impact analysis system, and the regulatory register system, including sunset-regulation.
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Criteria
Country laws, key national performance index (KNIs), entity objectives.
Resources
Twenty-eight auditors over 55 days (total of 1540 days).
Outcomes
BAI had two main findings: 1) When the regulatory reform committee chose the evaluation regulations, or tasks, to evaluate, they did not select “core task” but “regular task”, as this was usually considered easier to assess; and 2) the contents of analysis reports of regulatory effectiveness were insufficient and biased, creating a misrepresentation of the true picture.
BAI work in this area is detailed in two main reports: Korea (BAI – Korean Board of Audit and Inspection): Regulatory Reform Policy 1125/2009 and Korea (BAI): Economic Regulation Reform 0813/2007.
Good practice used
This case comprehensively considered the regulatory management structure and the adequacy of regulatory tools simultaneously (e.g. regulatory impact analysis system, sunset regulation), providing a more comprehensive assessment of the potential link between management and effectiveness.
Further reading
http://english.bai.go.kr/bai_eng/cop/bbs/listBoardArticle.do?mdex=bai_eng19&bbsId=BBSM STR_200000000004
BAI (2006), Impact Assessment System, Board of Audit and Inspection, Seoul, http://english.bai.go.kr/bai_eng/cop/bbs/detailBoardArticle.do?bbsId=BBSMSTR_20000000000 4&nttId=11510&searchCnd=7&searchWrd=&searchBgnDe=&searchEndDe=&searchYear=&se archCate=&mdex.
Source: OECD Survey of Peer Supreme Audit Institutions; further reading links above.
SUPREME AUDIT INSTITUTIONS AND GOOD GOVERNANCE: OVERSIGHT, INSIGHT AND FORESIGHT © OECD 2016
