1. Corporate Identity Impact Evaluation of NABO’s work June 2015

2. Contents Core Values Organization Function Achievement Impact Evaluation

3. Core Values of NABO National Assembly Budget Office Budget Office(2003) Non-partisan Independency Credibility Expertise 3

4. Organization NABO is composed of 3 Offices & 1 Bureau Budget Analysis Office Economic Analysis Office Program Evaluation Bureau Planning and Management Office Eighteen Divisions 4

5. Organization Social Program Evaluation Social Program Evaluation Bill Cost Estimates 1 Tax Analysis Human Resources Management Human Resources Management Planning & Cooperation Fiscal Policy Analysis Economic Policy Analysis Macro Economic Analysis Economic Program Evaluation Industrial Program Evaluation Industrial Budget Analysis Administrative Budget Analysis Budget Analysis Counsel Economic Budget Analysis Budget Analysis Office Economic Analysis Office Program Evaluation Bureau Social Budget Analysis Administrative Program Evaluation Administrative Program Evaluation Bill Cost Estimates 2 Revenue Estimation Public Institution Evaluation Public Institution Evaluation Tax Analysis Counsel Planning & Management Office Planning & Management Office Chief 5

6. Organization 14.7 Million US Dollar for FY 2014 125 staffs 42 Ph.D. holders in fiscal policy, economics, statistics, public administration, accounting, law, etc 3 CPAs (certified public accountant) 2 lawyers Budget Human Resources 6

7. Organization Chief of NABO The Speaker of the National Assembly appoints the Chief of NABO, with the consent of the “Steering Committee,” after recommendation made by the “Committee for Recommendation of the NABO Chief.” Other staffs Chief appoints the staff members solely based on competence 7

8. Function Conduct research and analysis Budget bill / Settlement of account Budget bill / Settlement of account Fund operation plans Fund operation plans Bill Cost Estimation Involves budget and fund National Assembly Budget Office Outlook report Operation of state finances Macroeconomic trends Evaluation and analysis Major government program Major government program Mid to long term fiscal demands Mid to long term fiscal demands 8

9. Function Budget bills / Settlement of accounts Fund operation plan / Settlement of funds Analyzes Budget Bills & Account Settlement Bill Cost Estimation Annual costs of bills for five years after a bill is enacted Fully in-charge of Cost Estimates at the NA Since 2015 1 2 9

10. Function Annual as well as Medium term Economic Outlook Evaluates Major Government Programs Unbiased evaluation on major government programs, policies, performance management of government agency Provides ideas for improvement 3 4 Forecasts Economic Outlook 10

11. Achievement 97 Analysis Reports have been published Output of FY 2014 11

12. Achievement 419 On-demand Research and Analysis Reports have been produced On-demand Research 12

13. Achievement 558 Estimation of Bill Costs & Tax Revenues have been carried out Estimated the Cost of Proposed Legislation 13

14. Relationship NABO BudgetCommitteeFinanceCommittee Special Committee on the Budget and Accounts Strategy and Finance Committee Achievement 14

15. Achievement In order to maximize the synergy between NABO and Committees, NABO provides in-depth analysis and Evaluation service on main agenda that committees In-depth analysis on agenda of committee 1 2 This 2015, NABO is evaluating 42 main agenda from 14 committees including finance committee ※ Outcome will be shown in individual and regular report between June and October 15

16. Achievement According to revised National Assembly Act, legislative Bills proposed by MP, cost estimates should all be prepared By NABO Recent Achievement 1 2 MP and committees introducing a special taxation bill should submit an evaluation report by one of expert agencies like NABO 16

17. Impact Evaluation: Survey on NABO’s service Commenced from 2007 by Survey Research Center, targeting 300 Members of the National Assembly(MP) Survey on NABO’s service to MP 1 2 Aims to enhance the levels of tailored service provided by NABO Unit: % 17

18. Impact Evaluation: Comparison with Gov’t Figure I MoSF often offered rosy forecast on growth Comparison of Economic Forecasting 1 2 Difference in gap is smaller than gov’t figure. NABO: 1.48%p / MoSF(Korean Treasury): 1.98%p Unit: %, %p 18

19. Impact Evaluation: Comparison with Gov’t Figure II Tax Receipt Forecasting Difference as a percentage of actual outcome is 0.1~2.2% from 2006 to 2013; gap is getting smaller. 1 2 Difference arises from economic factor, technical factor, Policy changes. Unit: trillion won 19

20. Impact Evaluation: Settlement of Account Request for change after settlement of account Unit: case, % 20

21. Impact Evaluation: modification of budget bill Modification of Budget Bill Unit: trillion won, % 21

22. Composed of less than 20 outside experts Currently 20 experts as of May.27.2015 NABO’s Panel of Advisers Impact Evaluation: External Evaluation 100 Think-tank in Korea Hankyung Business Magazine Reviewed in terms of impact, quality of research, expertise NABO was ranked 10 th in 2014 Only institution that ranked top ten founded in 2000s 22

23. Summary I Q: How is NABO perceived among MPs? A: In order to determine MPs’ perception of NABO, NABO has been conducting a survey on the level of satisfaction with NABO’s work at the end of every year since 2007. In general, MPs think that NABO has been playing a very important role in preparing the budget of the country. Q: Do MPs perceive NABO outputs to be integral to their work? A: Absolutely. MPs are making laws based on NABO’s cost estimation and economic/fiscal forecast and deciding the budget based on NABO’s budget-related reports. 23

24. Summary II Q: Why be concerned about the perception of MPs? A: NABO is serving the Nation and the National Assembly. Thus, it is vital for NABO to be perceived by MPs as an organization that is politically neutral as to the pros and cons of specific decision making, non-partisan among political issues, independent from the executive branch, and expert in its performance. Q: Can this evaluation be built-in to a NABO’s regular operation? A: Sure, of course. NABO has revised its function according to the change of demand of MPs, so the range of NABO’s work has been expanded. 24

25. Budget Process of the National Assembly Submission of Government budget by Sept. 13 Pre-evaluation by 16 standing committees Comprehensive review by the Special Committee On Budget and Accounts Examination and Voting at the Plenary Session by Dec.2 Budget bill is transferred to the government. Budget submission First reading Review by subcommittees Debate Vote Committee Chairman report to the Speaker of National Assembly The Speaker refers the budget bill to the Special committee on Budget and Account Budget submission General and ministerial hearing Examination by subcommittee to adjust the budget bill Debate Vote Report by the budget committee Discussion Agreement on budget increase from the Gov’t. Vote The National Assembly shall deliberate and decide on the national budget bill under the Article 54(1) of the Constitution The Executive branch shall formulate the budget bill for each fiscal year and submit it to the National Assembly within 90 days of the beginning of the fiscal year under the Article 54(2) of the Constitution 25 [Reference Information]

26. Review of Statement of Accounts in the National Assembly Submit the statement of accounts by May 31 Preliminary Review Comprehensive examination by the Special committee on Budget and Account Consideration and approval at the Plenary Session (by the opening of ordinary session) Transfer to Government Submission of statement of accounts Review by subcommittees Debate Vote Committee Chairman reports to the Speaker of the National Assembly The Speaker is referred to the Special Committee on Budget and Accounts Submission of settlement accounts General interpellation session Examination by subcommittee Debate Vote Report by the budget committee Discussion Vote Significance of Settlement Accounts ⇒ Review of fiscal performance and feedback ⇒ Figure out illegal and improper expenditure Follow-up measures ⇒ Request for correction ⇒ Request for audit ⇒ Supplementary opinion 26 [Reference Information]

27. Corporate Identity Republic of Korea Thank you for your attention