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Regulatory Reform Achievement

Regulatory Reform Achievement in 2013

Park Geun-hye Administration established 4 national keynotes and 104 national projects as the roadmap for government operation and adopted regulatory reform as the core means to support them. Park Administration accessed differently from existing simple deregulation by adopting the 2 track approach of reinforcing regulation that should be reinforced and radically relaxing regulation that should be relaxed.
As suffering of vulnerable working class people and difficulties in management of companies were expected due to shrinking of domestic market and unclear business outlook, the government focused more efforts of regulatory reform on stabilization of public economy and economic activities and reinforced more efforts for promotion and examination of achievements on the field to raise the degree of regulatory improvement felt by people.
1) Establish Integrated Regulatory Arrangement Plan for Implementation of National Project
In line with national keynote, 5 focus areas were selected and a total of 852 projects were launched with focus on creation of ecosystem for creative economy and expansion of growth engine, stabilization of public economy and establishment of market economic order, customized employment, welfare and creativity education, safety of people and prosperity of culture, and completed 765 projects.
In particular, the government pursued two-track regulation arrangement that abolished the regulation hindering creative economy and activation of investment while supplementing and reinforcing regulation for safety, environment and consumer protection. In addition, various methods were utilized including analysis of press report and complaints, operation of in-house regulatory improvement committee of department, public contest for identification of demander-oriented projects.
2) Expand Negative Regulation Type
To drastically lower the access threshold that acted as obstacle for business creation and investment, so called 'negative regulation type' was introduced. Negative regulation type is to freely allow any kinds of business activities, while indicating actions prohibited exceptionally. Negative regulation type was applied for company related regulation, and negative level of deregulation and review deadline were established.
In addition, regulation improvement plan was prepared for activation of venture company focusing on activation of private investment, relieving establishment requirement of investment union and encouraging business creation by young generation.
3) Measures for Regulatory Improvement like Vexing Problems
We prepared improvement measures for small and medium companies for identification and improvement of field-oriented projects regarding inconvenience of people and difficulties of company from the viewpoint of demanders. A total of 335 vexing problem improvement projects were identified over 3 times, using civilian networks such as ombudsmen per area (small and medium sized company, foreign investment and industrial fusion) or Korea Federation of Small and Medium-sized Business.
In addition, <Public-Private Joint Regulatory Improvement Board> was launched under the Prime Minister, constructed regular opinion collection system on difficulties of corporation including opening of hotline for vexing problems (02 -6050-3366), held regulatory improvement field meeting (talk talk), directly visited area of industry, spread status on regulatory improvement, listened to suggestions and prepared improvement measures.
4) Promotion on Demander-Oriented Regulatory Reform Achievement and Quality Management of Regulation
Regulatory reform projects were registered and managed through regulatory information system, project situation was opened to people. Regulatory reform achievement and status were inspected per quarter, year-end final evaluation was conducted per department for systematic management of regulatory reform project and encouragement of regulatory reform per department.
As the strategic promotion for main achievements was launched on people, company or opinion leaders, we have made efforts to raise degree of regulatory reform felt by people. In particular, 'Regulatory Improvement Talk Talk (Issue 1) was published through ministerial cooperation and integrated regulatory portal was constructed to allow easy and fast checking of regulatory information that people want to know.





Regulatory Reform Achievement in 2012

Regulation Improvement Measures for Revitalizing the Economy
The Second Crisis, a Quick Response
After overcoming the first crisis, the Korean economy again faced severe difficulty with the global economic downturn in 2012. To overcome this crisis, the government announced 236 regulatory reform measures in September 2012. In addition to permanent deregulations, the measures included 26 cases of temporary regulatory relief, reflecting the cases from 2009. To generate an economic turnaround as quickly as possible, the government completed the process by identifying problems, developing policy measures, coordinating interdepartmental communications, and the public announcement of new policies within one month, showing the government's initiative and determination to create economic recovery.
Investment Stimulation is the First and Foremost Key to Economic Recovery
The government focused on three main fields in selecting the regulation improvement tasks. First, to stimulate investment and drive business establishment, fees and regulations related to industrial complexes were suspended. The development burden charge was temporarily reduced for one year, and tourist accommodations benefited from a fee reduction for fees related to tourism-induced traffic. The waste burden charge on small and medium plastic manufacturing firms was also reduced. In addition, the due date for the payment of various burden charges was delayed and the term of installment payments was also extended. The regulations governing parking lots within industrial complexes were relaxed to promote construction of additional factory buildings and also strengthen the link between industry and academics.
Alleviating Obstacles to Business Activities through reforming Duplicated Trainings and Commission Burdens
Secondly, to reduce barriers to businesses' activities, burdens such as duplicated trainings and a commission charge were seriously reformed. In the past, if a food sanitation business manager had been operating more than two similar businesses, he or she had to undergo redundant sanitation trainings. Now, managers may participate in one training. In addition, many economic burdens were alleviated, including the elimination of commission approval related to underground water and stream water usage., Similarly, reforms eliminated the commission charge for the private use of stream water for six months, and the reduced payments for the private use of roads. In the past, offences such as violating the management standard in processing facilities resulted in both a penalty and business suspension. However, the administrative system has been improved so that violations result in a business suspension only. Minor violators receive a fine only. In addition, unnecessary paperwork was also abolished through online processing of tasks such as: acquiring a seal certificate when transferring a health-food business; applying for waste licenses; and reporting of recycling , all of which, make the procedure much simpler.
Alleviating Hardships of SMEs and the Working Class, the Majority of the National Economy
Lastly, to alleviate hardships for SMEs, the membership fee for the chamber of commerce and business was temporarily lowered. Also, to ease hardship on the working class, financially burdened families were exempted from the college application fee. Furthermore, insignificant building facilities for public houses can be freely replaced and demolished without the permission or reporting to the related government office. In the past, wedding ceremonies could not be held within park facilities due to regulations. However, weddings in city parks are now encouraged for the spread of a sound wedding culture.
Regulatory Reform: Groundwork for Economic Growth
Of 236 tasks of regulatory reform, 42 major tasks were completed all at once under the supervision of the Prime Minister's Office to swiftly show the effect of improvement. Other regulatory reforms are currently underway in related government offices. Recently the OECD has highlighted Korea's 2009 Temporary Regulatory Relief programs and the deregulatory responses as representative cases for economic stimulus.
Major Regulatory Reform Tasks for Economic Revitalization
AreaDetails
Accelerating Investment and Business Origination Temporary reduction/exemption of charges for development in the planned zone (1 year at 50% for the Seoul metropolitan area, and 100% for other regions)
Reducing the Burden on Business Activity Temporary suspension of various usage fees and charges, such as underground water development charge, stream water usage fee, etc.
Abolition of requirements for submitting redundant documents
Reducing the Burden on SMEs and Low Incomers Easing requirements for the establishment of SME-affiliated research institutes
Reduction/exemption of the college application fee for the beneficiaries of the national basic living security program





Regulatory Reform Achievement in 2011

Meaning of Regulatory Reform
Regulatory reform can be defined as the ‘efforts to reestablish roles of government and private sector’ in this rapidly-changing modern society or as the process of finding out areas where government and private sector can do better while adopting to social and economic changes. According to this definition, regulatory reform is a continuous and necessary social phenomenon, but despite such necessity, it may cause resistance and opposition of the person with vested interest due to the attribute of reorganizing long established order of interest. In this regard, regulatory reform should be pursued through social agreement and adjustment of conflict rather than solutions like cutting the Gordian knot and should have the directional feature as shown below.
(1) Reinforce national competitiveness through facilitation of fair competition Drastic reform of unnecessary administrative regulation is essential to enhance national competitiveness in the era of unlimited competition in the world by guaranteeing free economic activities and facilitating competition.

(2) Maximize creativity and private autonomy Regulatory reform is essential to secure legitimacy of fair economic activities through transparent regulation system and to create social atmosphere where diversity and creativity are highly recognized.

(3) Improve quality of life of people Regulatory reform is essential to improve quality of life of people by creating and reinforcing regulations in the area of health, environment and safety and to break unreasonable regulations causing inconvenience to people.

(4) Banish corruption and graft Various kinds of corruption and graft should be prevented in principle by improving uncertain regulations recognizing discretion and ambiguous regulations.

(5) Internationalize regulation system It is necessary to lay the foundation for joining the ranks of advanced countries by pursuing regulatory reform with benchmarking of regulatory reform technique and new regulatory technique of advanced countries.
Regulatory Reform for 2011


Lee Myeong Bak administration has pushed ahead with regulatory reform as the top-priority agenda and has focused on creating systematic framework so that the private sector and market can express diversity and creativity, focusing on the works that government can do well and should do.

As the economic depression and distress of people had been aggravated with unprecedented economic crisis starting from the end of 2008, the government has made various efforts for early recovery of economy through temporary deregulation and regulatory reform of new growth engine along with financial input in 2009. As a result of this effort, Korean economy has shown the fastest recovery in the world.

In 2010, Regulatory Reform Office of Prime Minister’s Office has focused government-wide capacity so that such trend of economic recovery can result in creating jobs and stabilizing ordinary people’s living, and overhauled the regulatory management system, pursuing innovative regulatory reform, differentiated from existing one.

In 2011, as economic recovery was expected to slow down gradually and uncertainty of economy to expand, regulation reform had been actively pursued, removing uncertainty and factory of obstacle to investment. Unregistered regulations in administration rule of each department were all examined and registered (690 cases), regulation information per type (7,000 cases in 43 types) was provided, expanding regulatory reform infrastructure.
(1) Promptly Pursue Regulatory Reform Project In 2011, the Korean government selected 1,355 regulatory reform projects with focus on creation of jobs, activation of investment, implementation of fair society and activation of investment. By completing 615(46.1%) regulatory reform projects by the first half, the government tried to carry out regulatory reform projects at the earliest possible.

(2) Improve Application Felt through Systematic Management and Promotion of Performance While registering and managing regulatory reform project per department through regulatory information system, and disclosing the project progress situation to people, the government examined the performance and situation of regulatory reform per department per quarter and encouraged regulatory reform per department.

In addition, 3 year white paper on regulatory reform was published to share performance of reform, summarizing major performance of regulatory reform for 3 years since inauguration of government, and to carry out promotion in the field including distribution of promotion materials and policy explanation on regulatory reform projects.

Strategic promotion on main performances was conducted per people, company or opinion leader type.

(3) Maintain Engine of Reform with Continuous Discovery of Project The areas related to many departments or directly related to national policy projects such as ‘creation of job’ and ‘implementation of fair society’ were improved intensively around Prime Minister’s Office. In particular, 773 regulations in 13 cases were identified and rearranged including review of temporary deregulation, rationalization of regulation related to subcontract, whole-scale rearrangement of unfair administration regulation of public institution which remained at blind spot of regulation examination.

Performance of regulatory reform efforts for 2011 received positive evaluation inside and outside. According to examination of Prime Minister’s Office, regulatory reform satisfaction of 2011 was 67.2 points, 0.8 point increase from last year, In Doing Business 2011 of the World Bank, indicating good environment for business, it was ranked 8th place, 8 steps up from the previous year.





Regulatory Reform Achievement in 2010

Meaning of Regulatory Reform
Regulatory reform can be defined as the ‘efforts to reestablish roles of government and private sector’ in this rapidly-changing modern society or as the process of finding out areas where government and private sector can do better while adopting to social and economic changes.

According to this definition, regulatory reform is a continuous and necessary social phenomenon, but despite such necessity, it may cause resistance and opposition of the person with vested interest due to the attribute of reorganizing long established order of interest. In this regard, regulatory reform should be pursued through social agreement and adjustment of conflict rather than solutions like cutting the Gordian knot and should have the directional feature as shown below.

(1) Reinforce national competitiveness through facilitation of fair competition Drastic reform of unnecessary administrative regulation is essential to enhance national competitiveness in the era of unlimited competition in the world by guaranteeing free economic activities and facilitating competition.

(2) Maximize creativity and private autonomy Regulatory reform is essential to secure legitimacy of fair economic activities through transparent regulation system and to create social atmosphere where diversity and creativity are highly recognized.

(3) Improve quality of life of people Regulatory reform is essential to improve quality of life of people by creating and reinforcing regulations in the area of health, environment and safety and to break unreasonable regulations causing inconvenience to people.

(4) Banish corruption and graft Various kinds of corruption and graft should be prevented in principle by improving uncertain regulations recognizing discretion and ambiguous regulations.

(5) Internationalize regulation system It is necessary to lay the foundation for joining the ranks of advanced countries by pursuing regulatory reform with benchmarking of regulatory reform technique and new regulatory technique of advanced countries.
Regulatory Reform for 2010
Lee Myeong Bak administration has pushed ahead with regulatory reform as the top-priority agenda and has focused on creating systematic framework so that the private sector and market can express diversity and creativity, focusing on the works that government can do well and should do.

As the economic depression and distress of people had been aggravated with unprecedented economic crisis starting from the end of 2008, the government has made various efforts for early recovery of economy through temporary deregulation and regulatory reform of new growth engine along with financial input in 2009. As a result of this effort, Korean economy has shown the fastest recovery in the world.

In 2010, Regulatory Reform Office of Prime Minister’s Office has focused government-wide capacity so that such trend of economic recovery can result in creating jobs and stabilizing ordinary people’s living, and overhauled the regulatory management system, pursuing innovative regulatory reform, differentiated from existing one.

(1) Overhaul Existing Regulation In 2010, “Overhaul Regulation’ was introduced and pursued in full scale to complement the limitation of Individual and Partial Approach for existing regulation. That is, rearrangement of core regulation has been attempted through zero-base regulatory reform that reexamines the regulation with poor performance. According to annual guide of regulatory reform, 1,409 projects were identified in 2010 in case of regulatory reform by each department, and among them, 1,037 cases were rearranged.

(2) Reform Regulation for Creation of Job and Stability of Ordinary People’s Living Regulatory reform was actively pursued for support of ordinary people and activation of investment so that trend of economic recovery can result in stabilization of ordinary life. In particular, multilateral efforts have been put forth in the area of regulatory reform including holding of regulatory reform meeting under the supervision of prime minister in the field in order to reduce burden and to remove obstacle of investment to the field including small and medium company, farming and fishing village.

In addition, various efforts have been made to improve life regulation close to life of people by identifying and rearranging regulation causing inconvenience to foreigners and life of people such as small merchants, and by removing unreasonable discrimination of academic ability in terms of promotion and employment at government and public organization.

(3) Construct Foundation for Advanced Regulatory Reform including Arrangement of Unregistered Regulation “Unregistered regulation’ of all departments were examined and registered to remove unnecessary one. In addition, flexibility and suitability into reality of regulation were enhanced by creating and operating “review type sunset’ that examines and redesigns the contents of regulation according to changed circumstance at certain interval (3 year in principle) in addition to ‘invalidity sunset”. In addition, homepage of regulation committee was reorganized for easy and prompt provision of various kinds of regulation information.

(4) Examine Performance of Regulatory Reform and Reinforce Consumer-oriented Regulatory Reform With comprehensive examination on performance of various regulatory reform and their application in the field 2 and a half year from the inauguration of government, direction and growth engine for future regulatory reform was obtained in 2010. While guaranteeing participation of companies and interested parties in the process of carrying out strategic projects of regulatory reform, opinions of ordinary people on regulation suggestions were collected and reviewed.

In addition, incentives on public officers of local government such as education and award were reinforced to improve actual effects and degree felt in the field and by ordinary people. To prevent wrong interpretation of laws at local government, resulting in failure to issue permit or license, or other case of delay in administration process, execution status of regulatory reform in the local government was examined.

Performance of regulatory reform efforts for 2010 received positive evaluation inside and outside. As a result of examination by the Korea Chamber of Commerce in Nov. 2010, satisfaction of performance of regulatory reform increased 2.7% compared to last year. In Doing Business 2011 of the World Bank, indicating good environment for business, it was ranked 16th place, 3 steps up from the previous year.





Regulatory Reform Achievement in 2009

Temporary Regulatory Relief (TRR)
The recent global economic crisis in 2009 provided a renewed impetus to implementing reform activities within Korea. The government took active response to the economic crisis by introducing new type of regulatory reform.

Temporary Regulatory Relief (TRR) is a mechanism to waiver or mitigates the implementation of some burdensome regulations for a certain period of time (1-2 years). This waiver aims at suspending the implementation of selective and burdensome regulations until the economic recovery.

The implementation of TRR focuses on three main areas: increasing investment in the creation of new business / reducing business burden / reducing hardships for SMEs and citizens. For example, as a result of TRR, the existing factories and plants located in a so-called 'preservation zone' will be allowed to construct additional facilities up to 40% (currently 20%) of their current business building coverage without requiring a separate building permit. Various forms of administrative investigations such as factory inspections will also be performed far less often. In addition, the rental rate applied to leasing governmental properties for small business will be reduced from 5% to 3 %.

The research carried out by the Federation of Korean Industries in 2009 revealed that business' entities are highly satisfied with the implementation of TRR on regulations. This waiver contributed to the enhancement of business investment and employment level.
Regulatory Reform for Promoting New Growth Engine Industries
Korea has been making a strong effort to find out and promote 17 new growth engines in 3 areas, namely green technology, advanced convergence and high-value-added service sectors to present a new economic vision for the post-crisis era. To that end, for the successful promotion of the new growth engines, the Korean government simultaneously pursued Regulatory Reform for Promoting New Growth Engine Industries.

Major targets of regulatory reform are as follows. First, newly growing industries that suffer from a disadvantageous market position because of outdated regulatory institutions. Second, areas that need a preemptive regulatory reform to prepare for changes in our future society and technology. Following 8 industries are on the top of the reform agenda as a main target of regulatory reform; new and renewable energy, green transportation system, broadcasting and communications convergence, global education, biotechnology & medical devices, MICE (Meeting, Incentive, Convention and Exhibition) & tourism and global health care.

For example, as a result of reform, power plants are allowed to add facilities for new and renewable energy without a separate permit. Solar power systems are also allowed to be installed on existing buildings located in farming promotion zones and city parks. In addition, old palaces and museums opened for banquets for international events.
Regulatory Information System (RIS)
In 2009, more systematic supports have been provided with the adoption of the Regulatory Information System (RIS). It is an online system that covers the entire process of regulatory reform, ranging from regulatory review to registration, reform task management and access to regulatory information.

Through this new system, the whole process of regulatory review - from initial review request by each ministry, preparation of review report to notification of results by RRC - has been moved to on-line. Also, with the function that notifies unregistered regulations and termination date of sunset laws, the system offers a concrete management of regulations. Furthermore, for the regulatory reform management across the different administrative bodies, the system provides monitoring service on the current status of each ministry's regulatory reform process. In 2010, by linking the regulation register database of RIS to the current website of Regulatory Reform Committee (www.rrc.go.kr), more upgraded and specified regulatory information search service and related statistics will be provided to citizens.

Since RIS is an integrated and comprehensive management of regulation from its introduction to termination, it has definitely contributed to the enhancement of transparency and quality of regulatory information with increased user satisfaction, effective reviews on regulation, and the implementation of the regulatory reform projects.
Expansion of Sunset Clause Legislation
The Korean government has expanded sunset clause legislation since 2009. The original sunset mechanism established in 1997 makes a regulation invalid after a certain period, which can be called "Sunset for Termination." While this system was applied only to newly established or enforced regulations, the new sunset system is applied to existing regulations. The new sunset clause mechanism is called "Sunset for Review." Under this system, about 20% of the existing regulation is to be reviewed on a regular basis (about every 3 to 5 years) and become invalid once they are found to lack feasibility. It is likely that this mechanism will enhance the transparency and effectiveness of regulations and reduce unnecessary burdensome regulations.
Overhaul of Unregistered Regulations
According to the Basic Act on Administrative Regulations, the head of the central administrative agency shall register regulations with the Regulatory Reform Committee and the committee shall make the list of regulations public. However, there were some regulatory provisions which were not registered.

In 2009, the Committee registered 5,487 provisions as regulations out of 12,486 which Korea Economic Research Institute assumed as regulations. As a result, the transparency of regulations has been increased.





Regulatory Reform Achievement in 2008

Regulatory reform - the most effective method to refine business environment and economic growth potential
The Lee administration, launched in 2008, has been aware of the fact that regulatory reform can be one of the most effective means to improve business environment and improve economic growth potential at little cost, and embarked on massive and unprecedented regulatory reform initiatives. As a way to strengthen structure of driving regulatory reform, the government established the Presidential Council for National Competitiveness in March 2008 and has decisively undertaken bold reform initiatives for intractable regulations, which the business community had continuously pointed out to past governments, based on opinions from businesses and people affected.

The Lee administration began decisive regulatory reform because it has strong faith in self-control function of market. Believing that conventional government-led growth and concomitant over-intervention with market under the principle of equity critically undermined economic efficiency and growth potential, the Lee government is transferring some of the government authority to market boldly in the form of market-oriented regulatory reform.
Regulatory reform placed high on agenda
Regulatory reform goes with coordination of differing interest in parallel. Especially reforming key regulations increasingly tends to face opposition of various interest groups. In such cases, determination at the government level and strong policy initiatives are a must to carry it through.

In order to maintain the high administrative priority given to regulatory reform, the Lee government established the Presidential Council for National Competitiveness, an advisor group to the President, and discusses major regulatory reform tasks in monthly Presidential meetings. In doing so, the government can firmly carry out various regulatory improvement tasks such as for the rationalization of metropolitan area regulations and streamlining of industrial complex procedures that previous governments could not touch for reforming. The PCNC discussed major regulatory reform tasks in 10 Presidential meetings convened from March 2008 to January 2009.

In addition to tasks tabled in the PCNC, all ministries drive forward all-out reform on regulations under their respective jurisdiction. A total of 1,795 regulatory reform tasks were found in 2008 government-wide after opinion collection from economic organizations and on-site confirmation process, and 908 out of 1,249 tasks that were subject to completion before the end of 2008 were reformed. The tasks included improvement of corporate ownership structure, enhancement of financial market competitiveness, efficient use of land and so on (details of each task are stated in Section 3).
Regulatory reform with focus on the demand-side and user experience
Instead of concentrating on quantitative reduction, the Lee government focuses on actual improvement of regulations that have substantially pressured companies and people. Against this backdrop, the government invites broad participation from companies and stakeholders in the process of finding out reform subjects, identifying improvement ideas, and evaluating outcome of regulatory reform. Recommendations that the government receives regularly from economic organizations are incorporated into reform tasks. The government-private joint regulatory reform task force was established within the Korea Chamber of Commerce & Industries to address on-site problems of businesses.

When formulating regulation improvement plans, the government does more than revamping related acts and laws. It takes into account budget, human resources, organization, and institutions for the sake of fundamental regulatory improvement.

To bring regulatory reform more closer to businesses and people in their day-to-day operations, the government reinforced incentives including training opportunities and rewards grant for public servants of municipalities. It also intensified check and audit for regulatory reform activities of municipalities as measures to prevent their misinterpretation of laws and acts, thus failing to issue permits or licences unwittingly or causing delay in administrative procedure.
System and institution improvement to enhance regulation quality and performance
To ensure discretion and independent judgement of companies and people as much as possible, the Lee government adopted a negative approach to regulation of, for example, the finance sector, that most of activities are allowed in principle but a few exceptions. And the government revised the manual for writing a Regulatory Impact Assessment(RIA) report in easy terms enabling civil servant to perform RIA thoroughly before creating a new regulation. The newly introduced RIA system for SMEs was designed to establish actionable regulations that place less burden on them.

The government already begun building a regulation information system in July 2008 for transparent and systemic management of regulation data and to facilitate efficient regulatory operations. When the system is completed in August 2009, companies will be able to obtain detailed regulation information easily from the RRC website.
In compliance with global standard
The Lee government has been trying to improve regulations to meet global standard. It leads improvement of excessive regulations measured by international standard based on overseas case study and research when reviewing regulation improvement plans. In an effort to incorporate the global perspective in driving forwards regulatory reform, the government invited foreigners to the PCNC as civilian members.

Besides, the Ministry of Government Legislation is expanding the English translation project for Korean laws and acts to benefit foreigners and foreign-invested companies residing in Korea.
Regulatory reform tasks for 2009
As global economic crisis would continuously affect the Korean economy, accelerating economic difficulties of ordinary people and SMEs in 2009, there will be more demand and higher expectations for regulatory reform from various sectors.

In response, the government is going to carry out regulatory reform in the direction towards overcoming economic crisis and easing people's burden first and foremost, while making careful efforts to create an regulatory environment in preparation for the post-economic crisis times.

Aiming at overcoming economic crisis and creating jobs, key regulations are to be reformed in areas such as the labor and management relation, environment, housing, construction, and service sectors, while regulations creating heavy burdens on people will also be reformed carefully. In addition, regulatory reform that would promote development of new growth businesses such as energy, environment, and bio-science will continue.

Continuous maintenance and development of institutions and infrastructure will be implemented for further facilitated and structured regulatory reform. The sunset law will be applied to not only new and reinforced regulations but also existing regulations so that the government will regularly review the feasibility of existence of a certain regulation. Upon completing the regulation information system establishment, the government is going to provide regulation information in a transparent manner.





Regulatory Reform Achievement in 2007

Regulatory review strengthened to ensure higher regulatory quality
o Regulations newly introduced were subjected to regulatory impact analysis to ensure their rationality.
o Regulations were subjected to more stringent review of their contents and validity, and as a result, those proposals deemed irrational were withdrawn or improved.

* In the period Jan. ~ Nov. 2007, a total of 1,035 proposals were reviewed, of which 207 proposals were improved or withdrawn.
Regulatory amendments developed jointly with users
o Private-sector experts from businesses and research institutes led the operation of the Regulatory Reform Taskforce in identifying and amending the bundled regulations that create inconvenience for business activities.
o Over the entire course of regulatory reform process, ranging from issue identification to development of countermeasures, public consultation was conducted and the public's view was reflected through meetings with related parties and expert roundtables.
* In Jan. ~ Dec. 2007, measures were developed designed to improve a total of 17 strategic tasks (295 specific tasks), including those related to staring up a business and constructing a factory.
Regulatory complaints resolved to meet the needs of the field
o A channel of cooperation was set up with the five business groups, including the KCCI, in order to directly collect suggestions from the business circles and develop improvement measures from the businesses' viewpoint.

* In 2007, a total of 170 suggestions were received from the five business groups, of which 31 were improved and 100 are pending.
* In Oct. 2007, the FKI submitted 1,664 proposals for regulatory improvement.

o The "Regulatory Report Center" receives regulatory complaints and conduct business site visits in order to actively discover and resolve regulatory difficulties experienced by individual businesses.

* In Jan. ~ Nov. 2007, a total of 332 complaints were received, of which 217 were resolved.
Systems improved to raise the perceived impact of regulatory reform
o Survey of public satisfaction with regulatory reform was conducted on experts and users to find out their assessment of regulatory reform progress in key areas, including construction, healthcare and public life. The survey result provided a basis for selecting regulatory reform areas to be improved and evaluating regulatory reform performance.

* In 2007, one satisfaction survey and two monitoring surveys were conducted.

o To ensure the public easy access to complicated regulatory information, activity-based registration of regulations was transformed to a business unit-based system (Feb. 2007).

* (Example) There are four separate regulations pertaining to petroleum sale business, including business registration and fee payment. After the transformation, those individual regulations are registered as subordinate regulations under a head regulation governing the business unit (petroleum sale business in this case).

- To present a simplified view of complicated regulations involving multiple ministries, such as regulations on construction of factories and apartment houses, regulatory maps were drawn and disseminated which show the contents, procedures and relationships of regulations in a diagram.

* In Feb. 2007, two regulatory maps (construction of factories, construction of apartment houses) were completed; an additional 10 regulatory maps (automobile purchase and management, waste treatment, etc.) were drawn thereafter.

o The "Basic Act on Administrative Investigation" was enacted (May 2007) with the aim of reducing procedural burdens imposed by regulations, as exemplified by arbitrary or overlapping administrative research.
o A plan is under way to introduce the "Administrative Burden Reduction Program for Businesses" designed to reduce the workload of businesses incurred by information provision requirements, such as reporting, filing and testing.





Regulatory Reform Achievement in 2006

Strengthening Regulatory Impact Analysis
To enhance transparency in the process of regulation legislation, the RRC mandated the disclosure of RIA via Internet or other medium at a time of pre-announcement of legislation. Such an act is expected to lead to the enhanced representation of opinions of regulated community and stakeholders. It also developed "RIA Preparation Manual" and "Manual on Regulatory Alternative" to be distributed to front-line officials. Coupled with this, the RRC has raised the number of private sector members within itself from 65 percent to 72 percent as part of efforts to strengthen expertise and transparency of review process.
Enacting the Basic Act on Administrative Investigation
To reduce burdens on businesses from red tape administrative investigations and safeguard the rights of the public, the legislation of "the Basic Act on Administrative Investigation" is underway. The Act stipulates the principles, methods, and procedures of administrative investigation.
Improvement of regulation registration system
To provide citizen and businesses with diverse and organized regulatory information, the RRCis overhauling regulation registration process to be more agreeable to the convenience of users.
Monitoring of regulatory reform
Starting from 2006, the RRC has formed monitoring groups for 10 sectors including construction/transportation, finance, public welfare, etc. Those groups are monitoring regulatory reform performance, reform issue identifying process, and positive or adverse effects of reform actions,
Overhaul of regulations lagging behind market changes (RRC within each ministry)
The Regulatory Reform Committees set up within each ministry, at the outset of 2006, submitted to the RRC an overhaul plan on the regulations lagging behind market changes found among its existing regulations and has since taken autonomous steps for overhauling such regulations.
Continuous overhaul of bundle regulations (RRTF)
From 2004, the RRTF has prepared improvement proposals on 48 bundle regulations in 7 sectors including business establishment and logistics as of July 2006. It will keep on its task of identifying and overhauling bundle regulations until February 2008, a term extended by the request of economic circles
One-stop-trouble shooting service (BDRC)
The BDRC receives regulatory proposals and complaints from businesses and provides one-stop-service. Out of a total 1,017 proposals it accepted, 987 proposals were addressed and 596 (61%) resolved. In the survey, 77 percent of respondents express their satisfaction with the service they had experienced.
Regulatory reform of local governments and extensive regulatory training
The office of the Prime Minister published and distributed "Regulatory Reform Manual for local governments"and provided training for regulatory reform to local government officials. From February to August 2006, a total 44 rounds of training reached 5,326 officials.





Regulatory Reform Achievement in 2005

The Korean government has made an incessant effort to reform regulations by improving bulk/bundled regulations and strengthening self-regulatory reform capacity of Ministries. To improve feedback, the OPC has strengthened consultations with stakeholders, especially, foreign businesses and launched the on-line monitoring system which will check each Ministry's regulatory reform implementation progress. Regulatory Reform Task Force Team
- Until now, based on suggestions made by businesses, 65 strategic tasks have been selected and among them, 29 tasks have been completed as of November 2005. Quarterly implementation plans are established and reported concerning the selected strategic tasks.
- Especially, regulations related to reviving the economy and creating jobs will be improved before all else. Emphasis is placed on solving problems that are felt in the field, through field fact-finding surveys, and gathering of opinions of businesses and other stakeholders.
- Based on the attached plan, improvement measures for major strategic tasks will be identified.
Strategic Task Achievement and plans
NamePosition
' 04. 3/4 Startup and Factory Establishment Procedure
Golf Course Construction Regulation
' 04. 4/4Large Distribution-store Establishment and Operation Regulation
Administrative Investigation System
Logistics Industry New Investment related Regulation
University Administration Regulation
Traditional Market Vitalization
Self-governing Body Regulation
' 05. 1/4 Construction Industry Regulation (inclusive of Bidding/Supervision)
Private SOC Investment Vitalization
Air Transportation Regulation
Cultural/Artistic Creativity Enhancement
An Apartment House/Small Scale Construction Regulation
Ground Transportation Regulation
Oversea Transportation Regulation
Job Training System
' 05. 2/4 Traffic Related System (inclusive of Driver's Licence System)
Startup and Establishment of Incorporation Improvement Measures
Personal Information Protection
Public Information Use Regulation
E-commerce Vitalization
Similar-Administrative Regulation
Administration Internal Regulation
Tourism/Leisure Industry Vitalization
New Technology/New Product Development
Medical Supplies/Food Industry Development Comprehensive Measure
Medical Service Regulation
05.3/4Industrialized Zone Regulation
Housing/Real-estate Finance
Various Business Actor Education Improvement
Agricultural and Maritime Product Distribution Improvement
Various Indication System Improvement
Outdoor Advertisement System Improvement
Broadcasting Advertisement Regulation Improvement
' 05. 4/4 Various Mandatory Employment System Improvement
Various Statutory Expense(Quasi-Tax) Regulation Improvement
Financial Industry Entry/Operation Regulation Improvement
Financial Supervision and Depositor Protection System Improvement
Network Industry Equipment Related Regulation Improvement
National/Public Owned Property Management System Improvement
IT Business Entry/Operation Regulation Improvement
Broadcasting Business Entry/Operation Regulation Improvement
E-Government Vitalization
Water Quality Preservation Area related Regulation Rationalization
' 06. 1/4 New Distribution Sector Regulation Improvement
Public Financial System Improvement
Private Insurance Vitalization
Software Industry Regulation Improvement
Various Heavy Taxation System Improvement
IPO/Market System Improvement
Elementary/Middle School Administrative Report Improvement
Higher Education Institution Establishment Regulation Improvement
' 06. 2/4 Private Educational Institution Establishment Regulation Improvement
Lifelong Education Regulation Improvement
Foreigner Related Regulation Improvement
Industrial Accident related Regulation Improvement
Safety/Health related Regulation Improvement
Social Business/Job Creation Support Measures
Large Enterprise Discrimination Regulation Improvement
Business Organization Admission/Activity Regulation Improvement
Employment Security System Improvement
' 06. 3/4 Various Impact Analysis System Improvement
Environment Related Various Permit/Reporting Procedure Improvement
Waste Treatment/Recycling Regulation Improvement
Various Union Activity Regulation Improvement
Ministry's Self Regulatory Reform
- Each Ministry, based on tasks suggested and proposed by businesses reviews regulations for self-reform among all regulations under his responsibility. Overall, 1,076 cases have been selected for improvement, and as of end of November 2005, the number of completed cases set up by the Ministry reaches 776 cases. (72% completion rate)
** Example
< Finance/Tax System >
o Expansion of Securities Company Business (allow trust business)
o Extend term for Tariff Drawback (from 2 years -> 3 years) etc.

- Also, especially this year, 28 administrative bodies are to reform 46 core regulations by themselves such as waste disposal and medical system.
** Examples of core regulations reform
* Improving agricultural product distribution system
* Improving inspection & authorization system of safety equipment
Improving Quasi-Administrative Regulations
- Background 1. Amid increasing regulations imposed by quasi-public organizations that have real impact on the public due to increased administrative operations commissioned.
2. Regulations that give inconvenience to public life or unfairly burden to members in the operation process of quasi-public organization have been reviewed and improved.

- Major Activities Pursued and Future Plans
1. Of the various regulations such as the article of incorporation of organizations, all regulations with external effects were reviewed.
2. Major object for reform :
a. restraint on members and unclear commissioned regulations etc.
b. regulations for administrative convenience, excessive regulation imposed on the public etc.
3. In 2005, 512 quasi-public organization's quasi-administrative regulations were identified, and 269 cases were abolished and 763 cases were improved. For example, free withdrawal of members have been allowed and approval system that was required by competent Ministry for election of executive at association were abolished, etc.
Operation of a Business Difficulties Resolution Center
- From April 2004 to November 2005, 849 cases were received and 514 cases have been resolved.
* Revision of regulations: 284 cases (55%)
* Change of implementation measures:105 cases (20%)
* Simple questions: 125 cases (25%)
- Through the operation of this Center, business satisfaction has been enhanced, and it has also been assessed to have contributed to encouraging active handling of civil applications by ministries and local governments.
Consultations with Foreign Businesses
- High-level Meeting was held chaired by the Deputy Minister for Regulatory Reform of OPC with foreign businesses, including the American, EU and Japanese Chamber of Commerce in Korea.
- Quarterly working-level meeting has been launched with the American Chamber of Commerce in September 2005.
- The consultations or suggestions will be delivered to the relevant ministries and agencies to be resolved.
Establishment of the On-line Monitoring System
In order to secure transparency and accountability, regulatory reform implementation progress of the Ministry will be checked with the on-line monitoring system, launched at the website of Regulatory Reform Committee (www.rrc.go.kr) on December 5, 2005, and the results will undergo comprehensive assessment at the year-end. Through such efforts regulatory reform will be carried out thoroughly.





Regulatory Reform Achievement in 2004

The Regulatory Reform Task Force Team (TFT) was established within the OPC under the Prime Minister's Office in August 2004. Headed by the Deputy Minister for Regulatory Reform, the TFT is focusing on reforming existing bundled regulations that reach several Ministries. It is scheduled to operate for two years with members from the private (24) and public (26) sector. The Prime Minister will chair the discussions held and decisions made at the Ministerial Meetings.
Improving Bulk/Bundled Regulations by th TFT
- Bulk/Bundle regulations that reach across many ministries, laws and ordinances were selected and improved focusing on reducing regulatory compliance cost and time
* Improved startup and factory establishment procedures : Time taken for administrative procedure (179 days -> 100 days), and administrative cost (\150 million -> \15 million) were reduced
* Improved golf course construction regulation : Time taken for administrative procedure (3~4 years -> 1~2 years), and administrative cost (₩8.4 billion -> \4.7 billion) were reduced
- Improved unnecessary regulations that exert administrative burden on businesses and universities
* Improved Business Administrative Investigation System : Constructed business self-reporting system, improved similar or overlapping research, and research conditions and procedures
* Improved University Administrative Regulations : Ensured self-regulation of educational matters, school rules and budget management, and improved redundant research of university statistics and constructed database
- Prepared regulatory improvement measures for economic revitalization and job creation * Measures to vitalize traditional market
* Measures to improve regulations concerning large distribution store, establishment and operation
* Measures to improve regulations concerning logistics facility investment
* Measures to reform regulations concerning local authorities
Improving Unreasonable Existing Regulations by Each ministry
- Improvements made on 659 cases (26.4%) of 2,628 review target of 2004
TOP - Prepared detailed improvement plans for selected tasks to be improved from zero-base(23 cases), such as farmland system and gas business authorization standard
- Prepared improvement measures through suggested tasks received from economic organizations and the results of joint private- public business fact-finding survey (75 cases were accepted from a total of 165 cases, and 29 cases were suspended for future examination)
User-Oriented Regulatory Reform
- Strengthened promotion of user-oriented regulatory reform through establishment of a joint public-private Regulatory Reform Task Force (August, 04)
- Established and Operated the Business Difficulties Resolution Center in order to resolve difficulties faced by businesses due to unreasonable regulations in a one-stop manner
- Pursued regulatory reform through the participation of the people, by selecting tasks through regulatory reform public suggestions (563 suggestions were received)
- Collected difficulties related to regulation felt by the people and businesses through joint public-private regulatory reform workshops (3 rounds), and regulatory reform advisory meetings etc.
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