In the future, the sale of government assets worth more than 30 billion won must be reported in advance to the relevant parliamentary committee. Additionally, the sale of shares in public institutions held by the government or public institutions must go through a prior consent procedure from the National Assembly, and discounted sales compared to the appraised value are fundamentally prohibited. The Ministry of Economy and Finance announced that it has prepared institutional improvement measures to prevent indiscriminate privatization of government assets and to address issues raised by recent audits, the National Assembly, and the media regarding the undervalued sale and lack of transparency in the sale process.
The Ministry of Economy and Finance decided to completely overhaul the management system for the sale of government assets. Each ministry will establish a specialized review body focused on external experts to strengthen the review of the selection of sale targets and the appropriateness of prices. Sales exceeding 30 billion won will be required to be reported in advance to the relevant parliamentary committee after going through the Cabinet meeting, and sales exceeding 5 billion won will be subject to the report and resolution of specialized review bodies such as the National Property Policy Review Committee. However, market-responsive asset sales such as the operation of surplus funds and routine sales activities for the performance of the institution’s inherent duties are excluded from the reporting requirement.
The Ministry of Economy and Finance decided to fundamentally block controversies over undervalued sales. Discounted sales compared to the appraised value are fundamentally prohibited, and even if discounted sales are unavoidable, they must go through strict procedures such as prior resolution by the National Property Policy Review Committee. Additionally, to enhance the reliability of appraisals for government assets, the issuance of a review certificate by the Korea Association of Property Appraisers is mandatory for high-value appraisals exceeding 1 billion won, and the requirements for private sales stipulated in the National Property Act will be reasonably revised.
The Ministry of Economy and Finance also decided to pursue privatization of public institutions only after sufficient discussion in the National Assembly. When selling shares in public institutions held by the government or public institutions, a prior consent procedure from the relevant parliamentary committee will be established to allow the National Assembly to review privatization in advance. Additionally, information disclosure related to sales will be significantly expanded, with bid information immediately disclosed on the website and the location, price, and reason for the sale of sold assets transparently disclosed to ensure the public’s right to know and strengthen external control after the sale.