National Planning Committee Initiates Comprehensive Reform of PBS System... Expanding Contributions and Reducing Reliance on Commissions

[Financial News] The National Planning Committee is set to reform the 'Project-Based System (PBS)' of government-funded research institutes.
Cho Seung-rae, spokesperson for the National Planning Committee, announced this during a briefing held on the 14th at the Government Seoul Complex in Changseong-dong, Seoul.
Spokesperson Cho stated, "The PBS system has a structural limitation where researchers have to cover their personnel costs through commissioned projects rather than basic research," and pointed out that "this has led to decreased research immersion and the fragmentation and short-term nature of projects."
He added, "To preserve the unique research functions of funded research institutions and transition to a system focused on medium to large long-term projects and essential research, we are designing the (PBS system) to expand government contributions," and noted that "the reform includes a structural overhaul at the inter-ministerial level, encompassing not only the National Research Council for Science and Technology, the National Research Council for Economics, Humanities and Social Sciences, but also the Korea Advanced Institute of Science and Technology (KAIST), and major scientific research institutes and policy support institutions like the Korea Institute of Science and Technology Evaluation and Planning (KISTEP)."
Additionally, Spokesperson Cho mentioned, "We are also pursuing institutional improvements to enhance the autonomy and independence of public institutions," and stated, "We are preparing a fundamental innovation in the overall operation of public research institutions centered on PBS."
On this day, the National Planning Committee also unveiled three rapid action tasks: △Transparency in marriage service pricing △Preparation of budget guidelines for generative artificial intelligence (AI) △Allowing mobile food sales in depopulated areas.
Regarding the transparency of marriage service pricing and the obligation to display refund conditions, Spokesperson Cho explained, "One of the major inconveniences in the wedding preparation process is that the costs of studio, dress, and makeup (Sdeume) and refund conditions are not clear," and "since most are currently in a form of voluntary disclosure, we plan to transition to mandatory display through amendments to the Fair Trade Commission's notice. Inter-departmental consultations have already been completed, and the Fair Trade Commission will guide the specific implementation procedures in the future."
Regarding the preparation of government budget execution guidelines in response to the introduction of generative AI, he stated, "During the process of carrying out government projects, there was a lot of confusion on the ground due to the lack of standards for purchasing general-purpose software or generative AI tools with the budget," and "we plan to prepare new guidelines to enhance research convenience and project efficiency in line with the AI era."
Concerning the measure to allow mobile food sales to expand food purchasing opportunities in depopulated areas, Spokesperson Cho reported, "Until now, mobile sales of packaged porridge or food items have been fundamentally prohibited, making it difficult to access purchases in aging areas," and "the related legislative process is underway, and the measure is virtually on the verge of implementation."
Moreover, regarding the Bank of Korea's request to transfer macroprudential policy tools, Spokesperson Cho stated, "The Bank of Korea has been making various proposals, so we understand it as one of many proposals," and "we are discussing the adjustment of roles and functions in the financial sector."
Regarding the Ministry of Strategy and Finance's review of the tax law amendment and the expectation that dividend income will be prioritized for separate taxation, Spokesperson Cho said, "Nothing has been decided at the current stage," and "we are considering various factors."
Meanwhile, the National Planning Committee is reviewing various scenarios related to stablecoins, including the issuer and licensing standards, centered on the first economic division.

coddy@fnnews.com Byeong-jeong Ye, Reporter