Korea Federation of SMEs Proposes "Top 30 Regulatory Rationalization Measures for SMEs"

Proposals Submitted to the Public-Private Regulatory Rationalization Task Force

Requests Extend Beyond Deregulation to Include Clarification and Strengthening of Regulatory Provisions

The Korea Federation of SMEs announced on April 29 that it has identified 30 key regulatory issues classified into three main areas—deregulation, clarification, and strengthening of regulations—and submitted them to the Public-Private Regulatory Rationalization Task Force to promote regulatory reform.

Of the 30 issues, 21 are related to deregulation, 5 concern clarification, and 4 address regulatory strengthening. Companies in the hydrogen vehicle industry and businesses located in aging industrial complexes requested regulatory easing. Although electric vehicles and hydrogen electric vehicles are classified as low-emission vehicles, hybrid hydrogen vehicles that can be charged externally are not recognized as such and are therefore excluded from subsidies and tax benefits. Industry stakeholders on the ground argue that in order to expand the adoption of eco-friendly vehicles, the criteria for recognizing hydrogen vehicles should be broadened. In addition, companies based in industrial complexes suggested that the criteria for admitting relevant industries should be applied more flexibly to revitalize aging complexes.

The medical device and digital asset industries requested clarification of regulatory provisions. Industry representatives claimed that even after obtaining approval from the Ministry of Food and Drug Safety, newly developed medical devices take an average of three to five years to be evaluated before entering the market. Although there is a grace period system for new medical technology evaluations, unclear evaluation standards and supplement requirements result in repeated reapplications. Therefore, they requested that the criteria for the grace period be clarified to prevent market entry delays. The digital asset industry pointed out that although the stablecoin market is growing rapidly, the absence of relevant legislation makes it difficult for companies to even design their business models.

The construction industry called for stronger regulations to enhance safety. They argued that using mobile phones during work at construction sites significantly increases the risk of accidents. Just as drivers and railroad control personnel are prohibited from using mobile phones, construction workers should also face restrictions on mobile phone use during work to strengthen on-site safety.

Kim Kimoon, Chairman of the Korea Federation of SMEs, stated, "The government has recently been making efforts in various directions to rationalize regulations," adding, "Now that the new Public-Private Regulatory Rationalization Task Force has been established, I hope that active reviews will be conducted from the perspective of on-site stakeholders and that communication on the results of submitted proposals will also proceed smoothly."

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