President Lee Declares "Regulatory Transformation"... "Restoring Growth Potential Through Rationalization"

First Plenary Session of the Regulatory Rationalization Committee Held on April 15

Lee: "Unnecessary Regulations Must Be Aligned with Global Standards"

In Response to Civilian Member's Concerns over 'Proactive Administration'

"Even as President, I've Struggled with This My Whole Life"

On April 15, President Lee Jaemyung emphasized, "We must rationalize regulations by strengthening those that are necessary while easing or abolishing those that are unnecessary or lack effectiveness." He particularly stressed that through regulatory rationalization, South Korea must restore its growth potential, which drops by one percentage point with each change of administration, and stated that advanced technology sectors should transition to a "negative regulation" system.

At the first plenary meeting of the Regulatory Rationalization Committee, held at the presidential office under the theme "Smart Regulation, a More Advanced Republic of Korea," President Lee said, "Although the government has moved away from guiding social trends in a particular direction as it did in the past, it still seems that regulations are often based more on the needs of regulatory authorities than on the needs of the field." He also pointed out that as times have changed, regulations have become a tool that hinders businesses and other economic entities.

Yonhap News Agency

President Lee specifically identified regulatory rationalization as one of the core means for restoring growth potential. He asserted, "We must restore South Korea's growth potential," and analyzed, "Growth potential continues to decline, and it is a very serious issue, to the extent that it is said to fall by one percentage point with every change in administration." He continued, "International competitiveness ultimately depends on strengthening capabilities at the industry, corporate, and individual levels. To achieve this, it is necessary to eliminate unnecessary or inefficient regulations and align our regulatory framework with global standards."

Regarding advanced technology and industrial sectors, President Lee mentioned the need to shift to a "negative regulation" system. Negative regulation refers to a regulatory approach where all actions are permitted except those explicitly prohibited by law or policy. He explained, "Until now, the government has used a 'positive' approach, listing only what is allowed," and diagnosed, "As industries and technologies develop and social progress accelerates, the public sector can no longer keep pace with the private sector." He added, "In advanced fields, everything should be allowed except for explicitly prohibited actions, and if a problem arises, it should be immediately banned or controlled. Shouldn't we shift to such a system?"

He also linked the issues of concentration in the Seoul metropolitan area and balanced regional development to regulatory rationalization. President Lee criticized, "The biggest problem in South Korea right now is the concentration in the metropolitan area. The inefficiency in resource allocation is undermining national competitiveness, and land prices are excessively high." He continued, "Balanced regional development and the prevention of local extinction are not acts of benevolence or consideration, but essential strategies for the nation's long-term sustainable growth and survival. I believe we should also consider creating large-scale regional special zones."

Lee Responds to Concerns about Proactive Administration: "I've Struggled with It My Whole Life"

There was also discussion regarding proactive administration. When Professor Lee Jongwon of Hoseo University's Big Data & AI Department suggested that "there are too many institutional aspects of proactive administration that need to be revised," President Lee replied, "That's a good point." President Lee responded, "The current public service sector operates in a highly oppressive culture, where the prevailing attitude is to avoid anything that might cause trouble. This is a very serious problem." He added, "Even I, who reached this position thanks to proactive administration and public evaluation, have also struggled with it my whole life."

This meeting was the first plenary session to be held after the Regulatory Reform Committee was expanded and reorganized into the Presidential Regulatory Rationalization Committee for the first time in 28 years. According to the presidential office, regulatory rationalization is a concept President Lee has emphasized, signifying not just simple deregulation but the creation of a foundation for economic advancement through 'smart regulation' that preserves what is necessary and eliminates what is not.

Accordingly, President Lee selected the vice chairpersons of the Regulatory Rationalization Committee with an emphasis on "integration and practicality." He appointed Namgung Beom, advisor to S-1 Corporation; Park Yongjin, former lawmaker of the Democratic Party of Korea; and Lee Byungtae, honorary professor at KAIST, as vice chairpersons. By appointing figures with backgrounds in corporate management and finance, a politician known for his non-Lee affiliation within the Democratic Party, and a scholar with conservative views, President Lee established a regulatory reform framework that bridges both the ruling and opposition parties as well as the business community. This combination is also seen as reflecting the presidential office's intention to treat regulatory reform as a practical task based on expertise, rather than as a partisan issue.

Unlike other committees, the Regulatory Rationalization Committee holds actual decision-making authority. Vice Chairperson Park will be responsible for "public livelihood," Vice Chairperson Namgung for "growth," and Vice Chairperson Lee for "regional" matters, each carrying out their respective duties.

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