[Regulation-Free City, Mega Sandbox] ⑭ Regulatory Reform Chairperson: "New Regulations Flooding In Through Legislation... Safeguards Needed"

Yoo Ilho, Chairperson of the Presidential Regulatory Reform Committee (Private Sector)
"90% of New Regulations Are Created by the National Assembly"
Regulatory Impact Assessments Should Be Attached When Drafting Laws
Regulatory Intensity Must Be

Yoo Ilho, Chairperson of the Private Sector at the Presidential Regulatory Reform Committee (former Deputy Prime Minister), emphasized, "The problem lies in the structure where new regulations continue to be created through legislation, even if the government rationalizes administrative regulations." He stressed, "A safeguard must be established at the legislative stage."

In an interview with The Asia Business Daily on October 21, Yoo stated that efforts at the administrative level alone are not sufficient to enhance the effectiveness of regulatory reform. He said, "The Regulatory Reform Committee can only address about 10 percent of new regulations created by the executive branch, while the remaining 90 percent are enacted through legislation in the National Assembly. There are clear limitations to what the committee can achieve on its own." He expressed regret over the reality that regulations continue to increase through legislation.

Yoo Ilho, Chairperson of the Private Sector at the Presidential Regulatory Reform Committee (former Deputy Prime Minister), is giving an interview to The Asia Business Daily. Photo by Yoon Dongjoo

Yoo also emphasized the need for a mechanism to screen new regulations in advance. He said, "When the National Assembly drafts new laws, a regulatory impact assessment should be attached, and if necessary, a third-party institution could objectively evaluate the impact. There must be a procedure to assess the intensity of regulation from the legislative stage to prevent the influx of unnecessary regulations."

Yoo pointed out issues with the current regulatory system, saying, "There are many regulations in Korea, and even those that have outlived their usefulness remain in place over time." He added, "Even with the introduction of sunset clauses, it is not easy to eliminate outdated regulations decisively. We need a structure that can comprehensively coordinate regulations scattered across different ministries."

Regarding the concept of the mega sandbox-a city-level model that combines industrial experimentation and regulatory easing-he commented, "Ultimately, it is a structure that combines regulatory relaxation and support, but the core lies in regulatory easing." He further mentioned the 'mega special zones' included in the current administration's national agenda, saying, "If industrial experimentation is promoted in a regionally distinctive way, combining regulatory easing and support, the government's 'mega special zones' initiative could yield significant and meaningful results."

He continued, "The larger the issue, the more complex the interests involved, making it difficult to resolve everything at once. However, we cannot simply do nothing." He emphasized that regulatory reform is difficult to achieve in a short period but must be pursued consistently. He advised, "There is no shortcut to regulatory reform. We must continuously rationalize the system within realistic limits while also working to slow the pace at which new regulations are created."

Yoo Ilho, Chairperson of the Private Sector at the Presidential Regulatory Reform Committee (former Deputy Prime Minister), is giving an interview to The Asia Business Daily. Photo by Yoon Dongju

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