Under the circumstance of globalization local government units tend to be recognized as a political, administrative, economic, cultural and environmental unit which is self-governing. In the light of this trend this study is designed to evaluate the Local Autonomy Code of 1994. Since local councils were initiated due to the legislation of the Local Autonomy Code of 1991, many studies, including those published by Local Council Research Institute of Dongeui University in 1991 and 1994, by Korean Association for Local Government Studies In 1992, by Center for Local Autonomy of Hanyang University, ets., argued that the Local government Code of 1991 should be amended in order to increase the discretion and flexibility of Local Government units. The researches mentioned above went on discussing specific directions and alternatives as means for enhancing local discretion and flexibility. These discussions are: used as a yardstick for evaluating the Local Government Code of 1994 in my study. Within the scope of discussions mentioned above it turned out that the Local Government Code of 1994 is characterized by the nature that the status and working conditions of local councils are improved. In particular, a sort of compensation given to members of local councils is going to be in issue. In several respects the Local Government Code of 1994 leaves something to be amended for the part of local government units.