[Reason for Proposal and Key Contents]
Under the current law, local government heads are allowed to delegate part of their administrative duties to corporations, organizations, or individuals, and are required to allocate the necessary costs for such delegation through the budget. However, there is no clear legal basis for supervising or directing these delegated private-sector tasks. As a result, each local government sets its own regulations through ordinances, deciding autonomously the scope and manner of supervision and direction. However, some local governments have no explicit regulations on supervision, leading to concerns about inadequate management and oversight, which have been raised as ongoing issues.

Furthermore, although both local subsidy projects and delegated private-sector tasks are public projects supported by the local government's budget, local subsidy projects are subject to strict pre- and post-verification and accounting audits under the "Local Government Subsidy Management Act." In contrast, delegated private-sector tasks have no accounting audit regulations under the "Local Government Act," resulting in differences in the systems of local governments, regulatory disparities, and continued accounting fraud issues due to poor budget management.

Therefore, it is proposed to establish regulations in the "Local Government Act" that require local governments to have authority over supervising and directing delegated private-sector tasks, and to mandate accounting audits, in order to enhance accounting transparency and ensure consistency in budget execution management (New Article 117-2).