Abstract
In June 2003, the Local Autonomy Law was partially revised with the aim of helping local governments rein in fiscal expenditures. Accordingly, the system for managing and operating public facilities owned by a local government was revised from the Management Outsourcing System (MOS) to the Designated Manager System (DMS). It was expected that public facilities would be managed and operated more effectively by managers with appropriate expertise and close connections to the local communities. To date, numerous studies have taken place regarding the DMS. However, most of the research and studies have been limited to the clarification of the DMS launch status and the challenges confronting the DMS. I think it is necessary to clarify how the original objective of the DMS launch is being achieved, that is, the economic benefits being generated annually through the DMS. This study is to clarify the benefits and challenges as a result of the DMS launch implemented by local governments.
