The Korea Local Administration Review

The positive effects of contracting out the welfare service are rarelyexpected in Korea since there has not been real competitive bidding in theprocess. This study focuses on the community social welfare centers in K cityof GyeogGi Province. The analysis applying the principal-agent theory is basedmainly on the government data and interviews conducted on some publicemployees and managers of the welfare facilities. The results of the analysisreconfirm that the problems of contracting out the welfare service pointed outin many previous studies.