Democratic Party to Push for Passage of Law Recognizing Domestic Helpers as Workers This Month

Priority Promotion of Five Regulatory Sandbox Laws and Non-Face-to-Face SME Venture Act
"We Have Leveled the Playing Field, Now Let Them Run Freely"

[Asia Economy Reporter Park Cheol-eung] The Democratic Party of Korea has decided to pass regulatory innovation bills this month, including recognizing domestic workers as employees and fostering non-face-to-face small and medium venture businesses through policy support. The bills also include some requested by the business community, such as the five regulatory sandbox laws and legislation related to direct purchases of renewable energy.

The Basic Act on Service Industry Development, which has been debated for over a decade due to controversy over allowing remote medical consultations, will be a key topic in the National Assembly next month. While the Democratic Party has focused on correcting the "tilted playing field" until now, the aim is now to create an environment where companies can thrive freely.

On the 19th, Representative Yoo Dong-soo, Senior Deputy Chairman of the Democratic Party’s Policy Committee, said in a phone interview with Asia Economy, "Through consultations on the 17th with Floor Leader Kim Tae-nyeon, who heads the Regulatory Innovation Promotion Team within the Democratic Party, we have selected bills to prioritize in the February National Assembly session among the business community’s requested innovation proposals," adding, "These include the five regulatory sandbox laws, the Domestic Workers Employment Improvement Act, the Non-Face-to-Face Small and Medium Venture Business Promotion Act, the Electricity Business Act, and a total of eight bills."

He continued, "The Basic Act on Service Industry Development and other regulatory innovation bills will be intensively discussed in the National Assembly next month. The plan is to innovate regulations that hinder companies from freely operating as much as possible." This also serves as a catalyst for private job creation to improve the severe employment crisis.

The Korea Chamber of Commerce and Industry held a policy meeting on the 28th of last month with Floor Leader Kim Tae-nyeon, Policy Committee Chairman Hong Ik-pyo, Representative Yoo, and ruling party secretaries of relevant standing committees, where they delivered 32 innovative legislative tasks.

The regulatory sandbox system exempts certain existing regulations for a limited period on new products or services, but as the special exemption period is nearing expiration, the Democratic Party is emphasizing urgent processing. The laws involved include the Information and Communications Convergence Act, Industrial Convergence Promotion Act, Regional Special Zone Act, Financial Innovation Act, and Basic Administrative Regulation Act.

At last month’s meeting, Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry, said, "We hope that the laws will be amended to permanently allow the business or, if further demonstration is needed, that the temporary exemption period can be automatically extended."

The Chamber also urged the passage of the Domestic Workers Act, which has been pending for a long time. They stressed the urgent need to legalize the market and establish a foundation for new industries such as intermediary platforms. According to the government proposal submitted last year, domestic service providers would be certified, and when domestic workers enter into employment contracts, written documents specifying wages, minimum working hours, paid holidays, and annual paid leave must be issued. This aims to extend protection under the Labor Standards Act to those providing household services such as cleaning, laundry, and childcare.

The Non-Face-to-Face Small and Medium Venture Business Promotion Act, proposed last year by Democratic Party Representative Jung Tae-ho, aims to systematically foster the related industry, which has become increasingly important due to COVID-19, at the government level. It includes establishing a basic promotion plan every three years, creating an organization to oversee and coordinate policies, selecting leading companies, special provisions, and tax support.

The Electricity Business Act amendment was proposed by Representative Kim Seong-hwan, head of the Green New Deal subcommittee of the Democratic Party’s K-New Deal Committee. It aims to facilitate the use of renewable energy by allowing companies to procure electricity directly from renewable energy power suppliers. Currently, power producers can only trade electricity in the power market or contract with Korea Electric Power Corporation (KEPCO), and direct sales are not permitted.

The Basic Act on Service Industry Development has been stalled for over ten years due to controversy over the commercialization of medical services, but its passage is also being pursued in the National Assembly next month. The Chamber of Commerce and Industry has also proposed amending the Medical Service Act to allow remote medical care. Representative Yoo said, "The key issue with the Basic Act on Service Industry Development is how to handle the medical sector, and we plan to actively discuss this next month."

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