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Ministry of Economy and Finance

Jay

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GA Member
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1200px-Emblem_of_South_Korea.png


255px-Flag_of_South_Korea.png

Republic of Korea
대한민국

1609343393490.png



Ministry of Economy and Finance

외교부

外交部



255px-Flag_of_South_Korea.png


Minister of Strategy and Finance for the Republic of Korea


대한민국 기획 재정부 장관

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Current Minister of Foreign Affairs for Republic of Korea: Shin Shinyoung |신신영
Millennium Democratic Party



The Ministry of Economy and Finance oversees the financial policies of the South Korean government. It publishes a monthly report on the national economy, known as the "Green Book." The current minister is Shin Shinyoung. An undergraduate of Korea University and graduate and doctorate from Harvard University. The Ministry of Economy and Finance is amongst several ministries scheduled to relocate to other major cities as part of a de-centralization path undertaken by the President's Office. The Ministry has enforcement functions as well, as it oversees the National Tax Tribunal and the Financial Intelligence Unit.

The Ministry is staffed by a highly educated and professional civil service all graduates of Korea's prestigious universities and foreign universities. Passing the rigorous Korean Civil Service Exam and qualification exams in financing, accounting, taxation, and other fields of finance and economy. The Ministry oversees government finances, makes projections, oversees the Chaebol conglomerate, export, and consumer levels in the country. The Ministry is mostly led by independent civil servants, and most of the political offices are held by technocrats within political parties.

Minister Shin Shinyoung was nominated in 1997 following the collapse of the previous administration and has aggressively sought to stabilize the Korean Government's finances and fight back against overspending. The Ministry has had a tough battle in the Blue House against the varying factions jockeying for limited financial resources. Minister Shin and Minister Kim from the Trade Ministry were both good friends and have worked hard to steer Korea back towards a system of stable financial and currency policy.
 

Jay

Apprentice
GA Member
Joined
Oct 3, 2018
Messages
342
Security Classification: CONFIDENTIAL and Secure
{ENCRYPTED AND PROTECTED BY ROK NIS



Ministry of Economy and Finance Internal Document(s)

Government Financial Records


상품명

수량

단위당 비용

총 비용

인원 (기본 보병)

45,000

5,000.00

236,250,000.00

인원 (특수 부대)

10,000

20,000.00

210,000,000.00

프리깃 (인천)

2

232,000,000.00

487,200,000.00

수륙 양용 돌격 선 (독도)

1

288,000,000.00

302,400,000.00

인프라
국가 범죄 예방 및 조치

1.00

520,000,000.00

520,000,000.00

유조선

3

47,000,000.00

141,000,000.00

신속한 거래

1

163,885,000.00

163,885,000.00

TM170 다목적 장갑차

40

169,814.58

7,132,212.36

K200A1-장갑차

300

1,410,000.00

444,150,000.00

K30 비호 방공

30

5,700,000.00

179,550,000.00

인프라 의료

1

300,000,000.00

300,000,000.00

KAI KUH-1 헬리콥터 (수리온)

8

18,000,000.00

144,000,000.00

KAI TA-50 다목적 전투기

10

25,000,000.00

262,500,000.00

K1 주력 전차

10

2,066,550.00

20,665,500.00

K9 자주포

10

3,100,000.00

31,000,000.00

신속한 거래

1

2,580,148,996.00

2,580,148,996.00

총 지출 회계 연도 1997-1998

  

6,029,881,708.36

예산

적자

5,317,498,775.00

-712,382,933.36

예산 절감 2,042,262,107,042 KRW

   

지출 된 예산 3,772,023,991,012 KRW

   

10,000,000.00 훈련 (군사)

   

비 군사 지출
820,000,000.00

   

군사 지출
2,629,732,712.36 (5,209,881,708)

   

Current Projection: --> Deficit Spending



The Ministry of Economy and Finance projects that the Korean Government will be in $700,000,000 in debt by the September spending season due to the unannounced fiscal purchase of $2 billion by the Ministry of National Defense in the areas of defense procurement and munition resupplies. Primarily, the excess spending has cut the likelihood of financing projects for educational reform as stipulated by the 160th Cabinet meeting held on 1997.08.14. The Ministry continues to highlight the need for cooperation, communication, and acceptance of outcome.

As per the internal document currently in discussion, we have begun planning a safeguard measure to ensure the currency stability of the won to its transfer rate with the United States dollar, in contact with the Trade Ministries procurement division and the Central Bank to understand monetary trends before making any recommendations.

The following items are items of concern. We continue to stress to all relevant ministries the need for stable purchasing objectives with clear communication with the Ministry of Economy and Finance. Matters of National Security are handled by the relevant task force and liaison office and should be more than a mere body of affirmation or political showing. The Ministry has emphasized the following items due to their pushing of Government spending beyond the allocated funds for the Ministry that purchased them.

Quantity

Item

Price Per Unit (USD)

Total Price

20

맥더 F-15E 스트라이크 이글

37,942,000.00

758840000

4

맥더 F-15K 슬램 이글

100,651,785.71

402607142.8

12

F-16CJ / DJ 블록 50D / 52D 파이팅 팔콘

35,000,000.00

420000000

20

보잉 AH-64A Apache

20,000,000.00

400000000

8

보잉 CH-47D 치누크

35,000,000.00

280000000

4

록히드 AN / FPS-124

9,692,000.00

38768000

3

록히드 KC-130J 헤라클레스

71,257,283.30

213771849.9

1

록히드 HC-130J 헤라클레스

66,162,002.77

66162002.77

72

Total Quantity/Cost

 

2580148996

 
Last edited:

Jay

Apprentice
GA Member
Joined
Oct 3, 2018
Messages
342
Security Classification: [CONFIDENTIAL and SECURE]
{ENCRYPTED AND PROTECTED BY ROK NIS}

Ministry of Economy and Finance Internal Document(s)

Government Procurement Records



Military Documents, Procurement Approval, and Financial Records

Item

Relevant Ministry/Agency

Procurements Status

Expected Completion (OOC DATE)

Total Cost in (USD)

Size/Quantity

Production Link (OOC)

Other Information

Artillery

Ministry of National Defense
ROK Army

Approved

Completed

Already Invoiced

10

N/A

Artillery

Ministry of National Defense
ROK Army

Approved

Completed

390,600,000.00

120

Production has been completed

Vehicle

Ministry of National Defense
ROK Army

Approved

Completed

Already Invoiced

10

N/A

Aircraft

Ministry of National Defense
ROK Air Force

Approved

Completed

Already Invoiced

10

N/A

Helicopter

Ministry of National Defense
ROK Army/Air Force

Approved

Completed

Already Invoiced

8

N/A

Vehicle

Ministry of National Defense
ROK Army/Air Force

Approved

Completed

179,550,000

30

Completed, awaiting invoice from relevant agency

Vehicle

Ministry of National Defense
ROK Army

Approved

Completed

7,132,212

40

Completed, awaiting invoice from relevant agency

Vehicle

Ministry of National Defense
ROK Armed Forces

Approved

2021.3.30

78,750,000.00

2,500

Production to begin and final completion announced for March, on track for completion

Personnel

Ministry of National Defense
ROK Army

Approved

2021.1.2

236,250,000.00

45,000

On-track for completion from the Army Basic Training Course

Personnel

Ministry of National Defense
ROK Army

Approved

2021.1.14

210,000,000.00

10,000

Special Force selection, training, and advancement underway

Personnel

Ministry of National Defense
ROK Army

Approved

2021.1.16

50,000,000.00

5,000

Airborne Infantry training and qualification process underway

Personnel

Ministry of National Defense
ROK Marine Corps

Approved

2021.1.16

78,750,000.00

5,000

Marine Infantry training and qualification process underway

Personnel

Ministry of National Defense
ROK Army

Approved

2021.2.1

2,100,000,000.00

100,000

Basic Infantry training Phase II underway and in progress
Advanced Infantry training to begin in Phase II

Personnel

Ministry of National Defense
ROK Armed Forces

Approved

2021.1.18

10,500,000.00

1,000

Graduate Students from Korean Military Academy on track for graduation

Personnel

Ministry of National Defense
ROK Navy

Approved

2021.2.1

9,660,000.00

400

Selection Process underway and training to begin upon completion for navy special forces


Project Documents and Financing

Project Area

Relevant Ministry/Agency

Project Status

Expected Completion

Project Cost (in USD)

Production Link (OOC)

Other Information

Healthcare

Ministry of Health
Ministry of Enviorment
Ministry of Finance and Economy

Approved

2021.1.2

300,000,000

On track for completion

Crime/Justice

Ministry of Justice
National Police Agency
Ministry of Education
Ministry of Finance and Economy

Approved

2021.1.1

520,000,000.00

On track for completion

Infrastructure

Ministry of Transportation, Land, and Infrastructure
Local Government Authorities
KORAIL Executive Board
KORAL

Approved

2021.1.21

1,800,000,000.00

Expected to be completed on time, Ministry of Infrastructure concerned with construction situation

Capital

TBA

TBA

TBA

TBD

TBA

On-going discussion

Education

TBA

TBA

TBA

TBD

TBA

On-going discussion



Financial Transactions

Financial Transfer Reason

Sender(s)

Receiver

Amount of Financial Flow

Other Information

Arms Purchase

Republic of Korea

Federal Republic of Germany

163,885,000.00

Amount sent and accepted, yet to be transferred by SWIFT Agency

Arms Purchase

Republic of Korea

Sparrows Industry

883,487,415.79

Amount sent and accepted, yet to be transferred by SWIFT Agency

Arms Purchase

Islamic Republic of Pakistan

Republic of Korea

2,274,048,000.00

Rejected by MOEF & MOTIE due to MOND acquisition rejection of arms sale

Financial Aid for girls education, development, and stem research

Republic of Korea

Islamic Republic of Pakistan

400,000,000.00

Amount approved by MOTIE and MOEF

Financial Aid for criminal justice, prison, electoral, and government reforms

Republic of Korea
Federal Republic of Germany
Kingdom of Norway

Republic of Ukraine

150,000,000.00

50,000,000 submitted by ROK MOEF




-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Republic of Korea
Ministry of Economy and Finance
All information is protected from release by the National Document Handling and Protection Act
Authorized viewing is limited to those with authorized access: Minister of Economy and Finance, Minister of Trade, Industry, and Energy, Minister of National Defense, President of the Republic of Korea, Prime Minister of the Republic of Korea, and authorized staff members of Code 9 Clearance​
 
Last edited:

Jay

Apprentice
GA Member
Joined
Oct 3, 2018
Messages
342
The following report is available for public reading

Ministry of Finance & Economy 1997 Financial Report

Economic forecasts, Russian Economic Crisis, Korean Trade and Imports​


Summary of 1997 Performance

Actual performance in FY 1997

1610190038531.png

Korea's GDP growth remained steady and on track with 26.6 trillion KRW government budget for FY 1997. Government spending remained healthy with increased oversight of government agencies through cooperative frameworks that ensure independency and security of the finance ministry. Korea's spending in outflow payments was restricted to trade imports from: Germany, Italy, Rattanakosin, Norway, and Ukraine as well as arms imports from Germany, Italy, & the United States. Korea's exports continued to grow with a surplus of exports to Italy, and balanced trade with Germany, Ukraine, and Norway. With no official trade documents, it is largely viewed Korea-Rattanakosin trade balance remains nominal and insignificant, while still growing and expectations for a Korean surplus in trade.

South Korea in November had a GDP growth of 7.2%, adding 2.18 trillion KRW in government GDP through taxation as a result of median income rising, and export increases to Italy and Germany. South Korea is projected to add 2.48 trillion KRW in December, bringing total GDP growth over the past 6 months of Q3 and Q4 of FY 1997 to 15.3 trillion KRW. Korea's government continues to raise expectations for a healthy growth and strong foreign investment in 1998.

South Korea announced in November the signing of a $3 billion USD agreement with the international monetary body of the General Assembly, receiving grant funding to cover civil projects. Reassuring economic stability and high growth in the upcoming year. With the grant, South Korea was able to repay in advance, the capital costs of its healthcare reforms, infrastructure program, and educational spending in 1997. Showcasing strong international cooperation, and the continued need for global engagement to strengthen each other. South Korea prepared a $150 million grant package for Ukraine in the area of corruption, justice, and prison reforms. South Korea also prepared a $400 million aid package grant for Pakistan to promote girls education, STEM education, and clean water resources, signifying Korea's growing role in advisory assistance and carrying-forward a global effort to eradicate poverty, raise HDI, and support democratic regimes.

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In 1997, South Korea’s government in Q3 maintained a healthy growth rate with raising standards of living, HDI levels, and human capital growth. Supported by strong economic and educational policies since the 1960s, South Korea’s domestic market remains highly lucrative and growth. Korea’s middle class continued to grow at higher rates, and while Q4 expectations declined in September, they bounced back in October and continue to remain growing in November.

South Korea’s credit rating remains high, with a stable and reliable debt repayment scheme, strong government institutions, and a commitment by all political parties to pursue responsible economic policy. South Korean macroeconomic policy remains highly based on the export-oriented market economy, and is signified by the signing of the Korea-Germany Free Trade Agreement and Korea-Italy Free Trade Agreement.



Government Budget
(trillion won, %)​
 

1997 Budget
(A)

1998 Budget Proposal
(B)

Changes

 

B-A

%

   

Total Government Revenues
- Tax Revenue

214.3
242.3

247.1
268.2

32.8
25.9

7.9
10.7

Total Government Expenditures

200.5

229

28.4

7.1


((Fiscal Balance)) Surplus in the consolidated fiscal budget by ~30 billion KRW in totality

(Government Debt) Government debt is expected to continue to grow, but remains within 16% of expected GDP. Compared with the previous year however, government debt fell from 32.6% percent to GDP to 24% percent.

Government Policy Aims and Outlooks 1998-1998

The government will work for decent job creation and stronger welfare, pushing towards income-led growth.
  • Revise support to simulate decent job creation in the private sector: Reform the incentives for foreign investment and reshoring businesses in a way to promote employment and stimulate new industries, and introduce tax breaks for SMEs that hire more, including women trying to return to work after maternity leave
  • Improve employment services for young adults: Launch various kinds of programs to match young job seekers to SMEs, such as building up DBs for SME employers and job seekers, and launching job training programs for vocational school graduates, and help find jobs overseas
  • Work to increase public sector jobs as fast as possible through front-loaded budget spending
  • Work to improve income
    • Minimum wage increase: Successfully carry out the minimum wage support , which should be temporary, work to refine the minimum wage system, and revise the EITC and other welfare benefits to reflect the effect of the minimum wage support
    • Protect employees: Revise regulations on unpaid wages to make it easier for employees to collect their unpaid wages (employees can claim unpaid wages 2 months after the payment delay, a cut from the current 7 months), and increase the supervision of such unfair practices
    • Promote cooperation between large conglomerates, SMEs and employees: Develop models for cooperation and profit sharing, work on tax and other incentives to promote cooperation, increase the large conglomerate-SME cooperation fund , encourage large conglomerates to expand cooperation to SMEs that are not their affiliates, come up with a mid- to long-term roadmap to phase out promissory notes, and improve the evaluation system and give corporations increased incentives if they provide a good example
    • Work on a performance-based pay system: Develop different performance-based evaluation standards for different jobs, as well as a guideline to ensure equal pay for men and women
  • Ensure work-rest balance: Gradually introduce reduced working hours and expand support for the wage cut that may follow, and promote taking annual leave, such as taking 2-week summer vacation
  • Reduce the burden of living expenses in 5 areas of housing, healthcare, education, transportation and communications
    • Housing: Increase public housing for rent
    • Healthcare: Expand the range of treatment covered by the National Health Insurance
    • Education: Expand a 50 percent tuition cut and improve student loan programs to reflect the borrower’s future income as well as to ease the repayment burden
    • Transportation: Work to reduce public transportation costs
    • Communications: Introduce a new mobile plan with reduced costs
The government will work for the outcomes of growth to be felt by every household, small businesses and provinces by correcting unfair practices, promoting cooperation and boosting local economies.
  • Get rid of unfair practices: Increase penalty for unfair practices, and introduce measures to get rid of unfair treatment of contractors providing goods or services, franchisees and subcontractors
  • Work to improve corporate governance: Work to introduce a stewardship code and set out stewardship by the national pension fund and other institutional investors
  • Boost local economies: Work to develop industrial clusters nationwide, and work to reform local governments’ fiscal systems to be less dependent on the central government
  • Protect small businesses: Reduce the burden of credit card transaction costs, and work to help them avoid being victims of gentrification
  • Seek fairer taxation: Work on tax revision in mid- to long-term perspectives, impose tax on rental income and examine the revising of property taxes, and increase the EITC and other support for the working class
  • Work for a social economy: Establish infrastructure necessary, such as statistics, financial system and distribution channels
  • Reform the public sector to be more responsible, voluntary and innovative: Revise evaluation standards, introduce a ‘same pay for same job’ system, and work to get rid of cronyism

The government will work for the economy to maintain growth momentum, and will strengthen its risk management.
  • Increase investment: Increase spending on housing, public safety and urban renewal
  • Boost consumption: Promote tourism, and revise the anti-graft act
  • Prepare households and corporations for interest rate hikes: Work to increase fixed rate loans and expand financial consulting services, launch workout programs for mortgage borrowers, such as sale and leaseback, and expand corporate bond purchase programs if necessary
  • Strictly manage external risks: Closely monitor global financial markets, expand IR meetings to investors in Berlin, Rome and New York, and cope with protectionism and other trade related issues, such as those concerning Korea-Germany FTA and Korea-Italy FTA
  • Work to increase birth rates by providing support which reflects different need in different time: Provide affordable housing for the newly married and make various kinds of daycare services available
  • Promote woman employment: Work to raise the female employment rate, such as by promoting the use of maternity leave, encouraging women to return to work after maternity leave and outlawing discrimination against women in workplaces
  • Work to ease senior poverty: Increase national pension benefits given to poor seniors and reduce the number of seniors left out of the national pension plan, promote private pension plans by giving tax incentives, expand basic pension benefit recipients, and promote reverse mortgage pension schemes
Ministry economic slowdown Indicators: Asia-Pacifica
The Ministry of Finance and Economy’s latest economic assessment for Asia and the Pacific highlights rising downside risks to growth in the context of a Russian economic crisis and looming global slowdown. Growth in Asia softened in the late half of 1997, driven by a rise in government spending and low credit intake and tax revenue, with continual decline in fixed investment and exports. Consumption largely held up, helped by supportive policies across the region initiated by the Governments of Korea and Rattanakosin.

In India, growth decelerated sharply in recent quarters but, with a large population, maintained a relatively healthy rate with government taxation policy and domestic consumption to soften the blow in low trade exports and capital inflow. Supported by recent fiscal policy boosts to domestic corporations, India still however, remains an area of high risk to due to high government spending and a debt ratio of over 160.18% to its current credits, and being only able to cover 57.5% of its sovereign debt with current currency reserves. India is an area of concern and highlighting the need for continued monitoring. The announced monopolization of Indian defense firms is also an area of concern, limiting freedom of market opportunities for foreign corporations, the legal implications of a government anti-trust suit, and possible investor sell-offs due to government intervention.

Rattanakosin’s debt to credit ratio exponentially grew in the past quarter, with debt growing at 47.89% compared to credit accumulation of 2.29%. The Kingdom’s estimated sovereign wealth and foreign reserves are estimated at $1 billion, not enough to cover the 17.88 billion difference. South Korea remains worried for future economic instability caused by a collapse of the Kingdom's foreign reserves to protect the Baht and its free falling effect on the KRW. Rattanakosin's economic growth however remained healthy, however, its close economic relationship with Russia serves as a primary warning, for possibly economic instability if the Russian economy completely collapses.

Ultimately, the Asia-Pacifica Region like Europe is at risk for economic slowdown as Government spending raises above available taxes, however, Government bonds and exports remain weak, and as a result, the traditional method of borrowing remains a risk for many Governments. Korean investors have been warned against pursing investments in India, Russia, and Nexus Group subsidiaries. South Korea's Finance Ministry continues to collect data publicly released and collected by the NIS to provide the best picture for government policy and interactions. Concerns over countries abilities to be able to completely pay for future projects, as well as purchases made by the Korean Government remain high for European countries, and Korea.

South Korea maintained a healthy export to import balance in the FY1996-1997 in nominal trade export value compared to import. However, government purchases outside the areas of trade, namely weapons, defense, vehicles, equipment, and services in areas from Germany and the United States have made real balance favorable to the latter. Still, South Korea benefited from these trades, ensuring a robust economic consumers market and a strong national defense.
 

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