Abstract
Local public enterprises carry out commercial and economic activities contributing to the development of local autonomy and the promotion of the welfare for their residents. There are various problems such as infringement on the private economy and waste of finance due to the expansion of local public enterprises’ business. The business is directly related to Article 2 of LOCAL PUBLIC ENTERPRISES ACT.<BR> Local public corporation or Local public agency may execute the business of the local government in the form of agency system. Here, There is controversy in interpretation, but they must comply with scope of application of Article 2 of LOCAL PUBLIC ENTERPRISES ACT.<BR> Article 2 (1) of LOCAL PUBLIC ENTERPRISES ACT lists an example the business of local public enterprises. Therefore, The Daejeon High Court decided that it could not be interpreted in a limited way that the agency business of a local public corporation could not carry out other business. However, there is a limitation of not reviewing whether it applies to Article 2 (2) 1.<BR> In Article 2 of LOCAL PUBLIC ENTERPRISES ACT, there are interpretation problems such as concept of business, current account ratio, etc. In particular, There is a problem of the Definitude of Law Principle. It causes problems in relation to Contracting-out. Thus, A legislative amendment is needed.
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