논문

Generally, the activities of local governments are divided into general
administration (police, fire service, etc) and entrepreneurial

administration(water and sewage, subway, medicare, etc). There is a common
cause between these two types of administrative services for achieving local
welfare, but there are methodological differences for accomplishing the goals. In
other words, whereas general administration with the nature of non-exclusion
and non-competitiveness is operated by local tax(occasionally grants from
central government), entrepreneurial administration is managed by user charge.
Therefore, entrepreneurial administration of local governments is said to be local
public enterprise. The service delivering structure of local public enterprises are
divided into direct management type by local governments and indirect
management style by public corporation with the operating independence from
local governments.

This study analyzed the trend financial ratio(especially focused on turnover ratio)
of local public enterprises. From the theoretical analysis, three variables are
extracted, total assets turnover, current assets turnover, fixed assets turnover.
The main finding of this research is the decrease of turnover ratio among all the
entrepreneurial administration of local governments except for the facility
management project. Second, an analysis of business operations management
by its type raises more issues in direct than indirect type. The finding that in the
direct type, more problems are raised from the management of total assets, fixed
assets, current assets related to the lack of efficient business management.
Third, in the project of sewage, local and urban development, it is necessary to
manage the current assets whereas in the project of water, medicare, parking,
subway, public-private invested enterprises, it is important to manage the fixed
assets. It is finally recommended to establish a firm foundation on which an
independent business could be existed, apart from direct bureaucratic control of
local government executives. And at the same time, the public spirit and business
management sense of projects should be interrelated with systemic financial
management.