South Korea: 211 out of 419 government-subsidized projects need fundamental review

In South Korea, of the 419 subsidized projects funded by the national budget, a consensus has been reached that more than half, or 211, require structural adjustments such as consolidation, abolition, or reduction.
On the 28th, the South Korean Ministry of Strategy and Finance announced that at the second Subsidy Management Committee meeting, the "2025 Subsidized Project Extension Evaluation Results" were discussed and passed.
According to the evaluation results, 204 of the 419 subsidized projects were targeted for reduction, five projects were abolished, and two projects were merged.
The proportion of businesses subject to structural adjustment, such as abolition, consolidation, and reduction, will be 50.4%. This is the third consecutive year that the proportion has reached 50%, following 57.6% in 2023 and 55.2% in 2024.
On the other hand, of the 208 projects that were not subject to restructuring, 203 were recommended to improve their operations.
The Subsidy Management Committee will only present the targets and levels of reduction, and the specific scale of reductions is yet to be determined.
The final results of this year's evaluation of the extension of subsidy programs will be submitted to the Diet in early September along with next year's budget proposal.
"Each of the subsidized projects is run with taxpayers' money," said Kim Yoon-sang, second vice minister of the ministry.
"Given that the evaluation results will be used to improve the quality of the project, it is necessary to promote more transparent and responsible operation and management," he said. "Each ministry and agency should faithfully reflect the evaluation results in their budget compilation and make every effort to ensure efficient project management."
I would like you to do so."