"During the COVID Emergency, Let's Ease Corporate Regulations"…Opposition Lawmakers Take Steps to 'Remove Shackles'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Amid concerns over worsening corporate performance due to the novel coronavirus infection (COVID-19), lawmakers from the United Future Party have taken steps to ease corporate regulations.

On the 26th, United Future Party lawmaker Jeong Jin-seok announced that he had introduced a bill to amend the "Freight Motor Vehicle Transportation Business Act" to relax regulations related to courier vehicle permits.

The Ministry of Land, Infrastructure and Transport switched the freight transportation business from a registration system to a permit system in 2004 and restricted new permits to control the supply and demand of freight vehicles. However, courier-only license plates have been issued without restrictions. Since courier-only license plates are only issued to small vehicles with a maximum load capacity of less than 1.5 tons, there have been criticisms that it is difficult to handle the volume of goods.

The amendment bill introduced by Representative Jeong directly stipulates in the law that new permits and change permits involving an increase in the number of courier vehicles can be granted, and includes provisions to relax the maximum load capacity standard to 2.5 tons. Representative Jeong said, "Since this is an emergency situation, policy measures must be significantly different from before, including greatly easing tangled regulations."

A bill to avoid "excessive regulation" was also introduced. On the same day, United Future Party lawmaker Song Eon-seok introduced a bill to amend the Framework Act on Administrative Regulations to legalize the "Regulatory Cost Total Volume System" to manage regulatory costs arising from government administrative regulations, and a bill to amend the Government Organization Act to elevate the Regulatory Reform Committee to a ministerial-level collegiate central administrative agency.

The Regulatory Cost Total Volume System is a system that abolishes unnecessary existing regulations equivalent to the costs incurred when creating or strengthening regulations. However, the current regulatory cost management system is stipulated by a Prime Minister’s directive, raising concerns that it may not be observed depending on the government’s will, and it lacks legal enforceability, leading to calls for it to be stipulated by law.

Representative Song said, "Excessive administrative regulations are increasing the burden on the private sector and shrinking economic activities. We must promptly introduce the Regulatory Cost Total Volume System to promote economic activities in the private sector and enhance national competitiveness."

This content was produced with the assistance of AI translation services.