Korea Needs Exit Reports When Policies End

By Kim Ho-kyun, Professor Emeritus at Chonnam National University Ending a policy without evaluation hides why it failed Results, side effects and lessons should be disclosed Recorded experience would curb repeated trial and error

Opinion|
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By Seoul Economic Daily (Commentary)
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null - Seoul Economic Daily Opinion News from South Korea

Ambitious government policies in South Korea get elaborate launch ceremonies but rarely a proper exit report. When a new policy is announced, its expected benefits are trumpeted. When it is scrapped or overhauled, no one explains why it is ending. Even when a policy declared sound until yesterday reappears today under a different name, it is hard to learn what the earlier version achieved or where it ran into limits.

Policies must change as conditions shift and technology advances. Keeping an ineffective policy alive out of inertia is the bigger problem. But when a policy ends without evaluation, the causes of its failure remain unknown. Even the parts proven to work are not carried forward, and the new policy repeats the same trial and error. That is why similar policies resurface with each change of government.

The Korean government already has various mechanisms, including evaluation of fiscal programs, audits and reviews of existing regulations. Many of them, however, focus on checking performance while a program is under way or on tidying up regulations. Subsidy programs are sometimes assessed for their effectiveness and continued need for fiscal support when their designated term expires, to decide whether to extend them. The problem is that these processes stop short of comparing original goals with actual outcomes when a policy is terminated or converted, and of passing on the reasons for ending it and the lessons learned to successor policies.

Other countries run systems for looking back at policies after they take effect. In Britain, certain categories of regulation must be reviewed for their effects after implementation, and if no post-implementation review clause is included, the reason must be disclosed. Australia likewise evaluates and publishes the effects and costs of high-impact policies after they have been put in place.

South Korea needs to introduce a "policy termination report." Such a report would set out the original purpose, the budget committed, performance against targets, unanticipated side effects, and the reasons for ending or changing the policy along with the lessons drawn, all made public. Rather than creating a new body, the report could be attached to procedures that already judge whether a program should continue, such as the extension review for subsidy programs. If a youth employment support policy is being wound down, for example, it should state how many people found stable jobs and whether the subsidies actually translated into sustained employment. If the targets were missed, it should identify whether the cause lay in economic conditions, in the design of the policy or in the way it was carried out. Only then can the government avoid recycling failed policies under new names.

Two principles are needed for a policy termination report to take hold. First, evaluation must be distinguished from auditing. Audits also address performance and institutional improvement, but their core function is to determine whether rules were broken or authority misused, and to assign responsibility. Evaluation should focus on whether a policy produced results and why outcomes diverged from expectations. It should not be left to self-assessment alone, but should be verified by existing evaluation bodies with the requisite expertise and independence.

Second, honest failure should be treated as a learning asset. Illegality, concealment and negligence must carry consequences. But when targets are missed because of changing circumstances or variables that were hard to predict, the causes of failure should be recorded candidly. There is an immunity system that shields officials from liability when they act in good faith to advance policy goals, but immunity only reduces an individual's liability; it is not a mechanism for preserving the causes of failure and the lessons learned as policy assets. Only by drawing a fair line between honest failure and irresponsible failure can the government learn from failure at all.

Policy is not the property of any administration or ministry. Experience accumulated with taxpayers' money and administrative effort is a public asset to be handed on to the next government and to the public. A capable government is not one that never fails. It is one that explains why it is ending a policy, records what it learned and does not repeat its errors. That is why policy, too, needs a responsible exit report.

Original reporting by Seoul Economic Daily (Commentary) for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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