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2015, Vol.24, No.

  • 1.

    Spears of the Regulatory Reform - Maintenance of the Implement System

    HYUKWOO LEE | JINGUK KIM | 2015, 24() | pp.3~43 | number of Cited : 9
    Abstract PDF
    Regulatory reform is an important nation-wide tasks that have been promoted by every government in Korea. Park Geun-Hye government is pursuing an aggressive regulatory reform since the second year in power. Government tries to establish more effective regulatory reform tools such as ‘Cost-in, Cost-out’, Red tape Report, negative-style regulation design, etc. in Amendments of Regulatory Reform Act. Regulatory Reform System has not been functioned as expected due to a lack of professional man power and other resources which are essential materials for proper regulatory reform. There are also loopholes that have been excluded from the reform for a long time such as Assembly-introduced Bills, regulations on metropolitan area, services industry regulations. It is a ubiquitous phenomenon like misunderstanding of regulatory reform, existing unreasonable regulations and a conflict of interest on regulation reform. At this situation, the most immediate tasks are stable settlement of new-introduced advanced regulatory reform tools through Amendments of Regulatory Reform Act which can provide each government department an incentive to pursue a regulatory reform initiative. Government should review the real effects of so-called economic-democratization at the origin in cold manners.
  • 2.

    Local Governments Regulation Reform: Does Competition Work?

    Lee, Min-chang | Juchan Kim | 2015, 24() | pp.45~81 | number of Cited : 5
    Abstract PDF
    Regulation reform is one of the most important policy agenda of the Park Geun-hye administration. President Park gives a strong emphasis on the implementation of regulatory reform by hosting Minister’s Meeting on Regulatory Reform. In fact, some regulations to be eliminated are discovered and enforced to be abolished during the consecutive meetings. Local governments regulations are not an exception. Local regulations reform is undergoing by the Ministry of Government Administration and Home Affairs under the title of “Let the local government can reform regulations competitively.” It gives emphasis on the problem solving such as i)finding and abolishing local ordinances or local by-laws which are violating laws and ministerial decrees, ii)finding and abolishing local ordinances or local by-laws which are not based on the laws or ministerial decrees, iii)reform the attitudes and behavioral practices embedded in the regulatory bodies. Even though it shows some positive results, local governments regulations reform seems that it does not actualize the original principle of regulatory reform that orienting economic revival of local area. The “competition between local governments” undergoing by the Ministry of Government Administration and Home Affairs became a “goal oriented directive competition” which is far from ensuring and increasing economic competitiveness. In this sense, “competition between local governments” needs to be guided to a “voluntary regulation reform competition” in accordance with each local governments industrial conditions. Voluntary regulation reform can yield a ‘virtuous circle’ consist of intensive regulation reform on strategical industrial area, high rate of employment, growth of population in local area, and income increase. To achieve it, rehabilitation on local governments regulation reform system needs to be done relentlessly.
  • 3.

    The Performance of Service Industries' Regulatory Reforms and Its Future

    Park, Jung-Soo | 2015, 24() | pp.83~122 | number of Cited : 1
    Abstract PDF
    The current Korean government intends to create a competitive business environment, boost companies’ investments and start-ups, and provide incentives for service industries to create jobs, especially actively pushing forward promising regulatory reforms of service industries. A recent study examined the regulatory reforms implemented by the current administration and what have been the results of those actions through regulatory information portal and data published by the Office for Government Policy Coordination. After 2014, the regulation of the service industries decreased by 38(151 reforms, 113 laws) in volume. However, the current administration is pushing forward to boost investment, so regulatory reforms of tourism and other industries have not been fully adopted. In conclusion, the number of regulatory reforms increased, but the issue of evaluating its implementation and effectiveness still need to be resolved.
  • 4.

    Is Deregulating Capital Region Regulation Impossible? A need for a Practical Approach

    Sung-Ho Choi | Jungsoo Park | Moosang Cho | 2015, 24() | pp.123~169 | number of Cited : 1
    Abstract PDF
    This study proposes a set of policies based on practical approach to deregulate Capital Region (CR) Regulation. In general, there should be no exceptions in reforming regulations. However, since weakening CR Regulation is subject to strong political controversy, we propose a practical approach with an enhanced political feasibility. Empirical results on locality in this study suggest that benefits from CR regulation is concentrated only in non-CR regions which are closer to CR. In terms of quantity aspects such as number of firms, employment, and value-added, non-CR area has surpassed CR area. Even in terms of labor productivity, near and non-CR area is better than CR area. However, in terms of total factor productivity, CR area is superior to non-CR area, probably reflecting the competitiveness due to locational benefits. In regards to empirical results on industrial sectors on different technological levels, the gap between the CR and non-CR area are shown to be significant. Especially, CR area seems to have locational advantage in high-tech industries, technology-intensive ventures, or small-medium sized enterprises. Therefore, if an all-at-once or overall deregulation of the CR Regulation is politically not feasible, we suggest that it is better to take a realistic approach by setting priorities for gradual deregulation and breaking bottlenecks of individual investment project through administrative legislation. Furthermore, we suggest policies including support for local government-led regional development and tax transfers to non-CR area of a portion of consumption tax in CR as well as increases in tax revenues resulting from CR deregulation.