Financial Risk:
Moderate
Score:
65/100
Asset Disposals
Q24
83/100
How effective are controls over the disposal of assets, and is information on these disposals, and the proceeds of their sale, transparent?
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The disposal of assets should be reported to the Minister of Economy and Finance (MOEF), based on the State Property Act. Article 14 of…
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Planned disposals are published in advance via the Defence Installations Agency’s website or media platforms so that potential buyers can participate in bidding. The…
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The Financial results of disposals are published annually, and they are available publicly. The MND publishes the Annual Defence Statistic Report, including the financial…
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Q25
75/100
Is independent and transparent scrutiny of asset disposals conducted by defence establishments, and are the reports of such scrutiny publicly available?
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The Board of Audit and Investigation of Korea (BAI) is an independent constitutional institution which inspects all matters of government institutions, including state asset…
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It is obvious that the BAI and MOEF in charge of overseeing the disposal of state assets, are independent from the military. [1] [2]…
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Although some audit reports are released through media reports occasionally, they are not always available publicly. [1] After reviewing media sources and relevant legislation,…
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Secret Budgets
Q26
0/100
What percentage of defence and security expenditure in the budget year is dedicated to spending on secret items relating to national security and the intelligence services?
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Although it is possible to access the overall budget of the Ministry of National Defence (MND) and the National Intelligence Service (NIS) through Open…
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Q27
NEI/100
Is the legislature (or the appropriate legislative committee or members of the legislature) given full information for the budget year on the spending of all secret items relating to national security and military intelligence?
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This indicator is scored ‘Not Enough Information’.As the National Intelligence Service (NIS) has the right to refuse to submit detailed information to the National…
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Q28
13/100
Are audit reports of the annual accounts of the security sector (the military and intelligence services) subject to parliamentary debate?
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The members of the National Defence Committee and of the Public Administration and Security Committee at the National Assembly can access the audited accounts…
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Due to growing public distrust towards the NIS, the Board of Audit and Inspection of Korea (BAI) conducted an audit of the NIS in…
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Q29
100/100
In law, are off-budget military expenditures permitted, and if so, are they exceptional occurrences that are well-controlled? In practice, are there any off-budget military expenditures? If so, does evidence suggest this involves illicit economic activity?
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In South Korea, off-budget expenditures are prohibited by law. The National Finance Act states that any government agency, including the military, cannot use any…
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This indicator is not applicable because off-budget expenditures do not exist in South Korea. [1] [2]
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As mentioned in Q29A, off-budget military expenditures are not likely to exist under the terms of the National Finance Act. [1] [2]
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Q30
50/100
Are mechanisms for accessing information from the defence sector effective?
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The Official Information Disclosure Act grants the public access to information for the defence sector. Article 10 of the Act includes the details of…
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This indicator is not assigned a score in the GDI. The South Korean government discloses defence-related information based on the Military Secret Protection Act.…
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Although the public can access information through the information request system prescribed by the Official Information Disclosure Act, details are not fully disclosed. For…
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Q31
100/100
Do national defence and security institutions have beneficial ownership of commercial businesses? If so, how transparent are details of the operations and finances of such businesses?
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There is no evidence that national defence institutions have benefited from commercial businesses. The Defence Statistics Annual Reports and Public Finance of Korea 2019…
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This indicator is marked not applicable because South Korean defence and security institutions do not have beneficial ownership of commercial businesses. [1] [2] [3]
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Military-owned Businesses
Q32
63/100
Are military-owned businesses subject to transparent independent scrutiny at a recognised international standard?
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The Military Mutual Aid Association (MMAA), a public pension agency for military personnel, operates six businesses, including telecommunications and military product supply. It is…
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The Military Mutual Aid Association (MMAA) is subject to the parliamentary annual audit, according to Article 7 of The Act on the Inspection and…
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Illegal Private Enterprise
Q33
75/100
Is there evidence of unauthorised private enterprise by military or other defence ministry employees? If so, what is the government’s reaction to such enterprise?
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Military personnel are strictly banned from engaging in any type of profit-making activities under the terms of the Framework Act on Military Status and…
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A review of media sources, relevant laws and interviews with senior staff of the National Assembly National Defence Committee and a senior defence journalist…
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Actual Military Spending
Q77
88/100
Is comprehensive data on actual spending on defence published during the budget year?
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Actual spending of the defence budget is published in disaggregated form and made public online via Bill Information, a website run by the National…
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Overall defence spending is fully disclosed through the parliamentary website on an annual basis (see Q77A). The National Defence Committee at the National Assembly…
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After reviewing the annual report on the settlement of accounts for the MND, it appears that it is published within six months of the…
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The report on the settlement of accounts published in 2018 includes variances between the published budget and actual spending in detail. The report contains…
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