지방자치단체의 채무지급유예와 공익처분의 문제점과 개선방안

There are various disputes between local governments and companies. This article focuses on the supervision order under the PPP Act (”Private Investment Act”), which enables changing the contract through administrative dispositions and local governments' right of the moratorium. What are the problem, the cause, and the improvement plan? First, paragraph 4 of the Local Autonomy Act can be seen as a requirement for simple internal legal acts of local governments that don't take judicial effect if interpreted constitutionally. The moratorium declaration may be viewed as an administrative disposition with disposition through the local government. If that happens, it becomes a rule that changes the existing concession agreement out of contract and causes various problems. It is possible that such actions by local governments could even generate the possibility of becoming a contingent liability of the state. Next, the public interest disposition under the PPP Act still needs to be clarified, although there is a guideline from the Ministry of Strategy and Finance. A public interest disposition for revocation of the designation of a concessionaire by a local government is a public act that can deprive a concession right, extinguish management and operation rights under a concession agreement, and unilaterally and legally terminate the concession agreement. According to the IMF report, such actions by local governments can raise government bond interest rates and increase the state's contingent liabilities. A significant portion of the finances of local governments comes from the national finances. So, if you compare state and local governments to companies, they can be seen as parent company and its subsidiaries. If the subsidiary's actions can damage the parent company's credit rating, the parent company should monitor the subsidiary's activities carefully. For projects with a total project cost of less than KRW 200 billion, local governments can unilaterally take a public interest disposition of revoking the concession agreement, and it is difficult for the state to control. Therefore, the state must check and monitor the public interest disposition that can damage the national credit in any way. It is challenging to achieve trust in the state, but it can collapse instantly. Even if grassroots democracy, local autonomy, and pluralism are pursued, checks and monitoring devices are necessary.