'Root-Crushing Nail' Ratio 3 Times Higher Compared to Moon Administration... Yoon Launches Deregulation Efforts

Starting Next Year, 'Setting Deadlines for Economic Regulation Reviews' Will Also Be Fully Implemented

[Asia Economy Reporter Koo Chae-eun] The number of tasks selected as ‘important regulations’ that impose excessive burdens on corporate activities under the Yoon Seok-yeol administration has increased more than threefold compared to the Moon Jae-in administration. This is due to the expansion of the criteria for judging important regulations, as President Yoon has directly emphasized regulatory reform to eliminate the ‘sandbags’ that companies carry and to enhance private sector efficiency.

On the 29th, the Presidential Regulatory Reform Committee announced that the average ratio of important regulations during the Moon administration from 2017 to 2021 was 3.7%, but under the Yoon administration (since inauguration on May 10) it has expanded to 12.1% as of the 23rd of this month. This represents an increase of more than three times. The proportion of important regulations recommended for improvement or repeal also rose by 15 percentage points compared to the Moon administration average (from 61.9% to 77%).

[Image source=Yonhap News]

According to the Framework Act on Administrative Regulations, important regulations refer to those with annual regulatory costs exceeding 10 billion won, more than one million regulated entities, sharply conflicting stakeholder opinions, and significant socio-economic side effects.

A representative example is the Financial Services Commission’s withdrawal of the obligation to prohibit unfair business practices and explanation regulations applied to prepaid and debit cards, which were previously treated the same as credit cards, considering fairness and on-site burdens. Another case is the Ministry of Agriculture, Food and Rural Affairs’ recommendation to ease strengthened licensing and registration requirements for livestock farming, taking into account the burden on farmers. The Ministry of Land, Infrastructure and Transport’s strengthened registration requirements for traffic impact assessment agents were also recommended for relaxation, viewing them as an infringement on market autonomy. Kim Jong-seok, chairman of the Regulatory Reform Committee, stated, "Under the principle that there are no sacred cows in regulatory reform, we will strengthen our role in dismantling regulations that hinder private creativity and diversity, thereby blocking economic revitalization and job creation."

The Regulatory Reform Committee plans to set a review deadline for ‘economic regulations’ closely related to citizens’ lives starting January next year. This aims to timely adjust the validity of regulations in accordance with changes in the macroeconomic environment. Within next year, they will introduce and promote a ‘post-regulatory impact assessment’ that analyzes existing regulations and proposes alternatives.

Meanwhile, the Regulatory Reform Committee is a presidential statutory committee under the Office for Government Policy Coordination that deliberates and coordinates regulatory policies. Since the new government’s launch, it has reviewed a total of 502 newly established or strengthened regulations and recommended improvement or repeal for 47 out of 61 important regulations (77%).

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