2012, Vol.21, No.2

Journal of Regulation Studies 2023 KCI Impact Factor : 0.78

pISSN : 1738-7132
https://journal.kci.go.kr/ksrs2002

Regulatory Reform was one of the core agenda of Lee Myung-bak Government. In this tendency, there were lots of programs to improve Regulatory Reform System and quality of regulations like enlarging Regulatory sunset Program, repairing Regulatory Register System and improving the quality of Quasi-Regulation. In spite of these efforts, we cannot conclude the regulatory reform of Lee Myung-bak Government as success or at least positive to citizen. First, People were often misunderstood that the characteristic of regulatory reform were Chaebol-friendly because lots of regulatory reform to improve citizen’s lives like simplicating administrative burden were not informed properly to citizen. The idea of shared growth which was the main philosophy in the latter half of Government has some limit from raising the transaction cost in society. Second, the trial to dividing regulatory reform with regulatory review produced high performance like lots of irrational regulation can be improved in a short time. but these system did not reach the constant and stable state which did not affected by the rise and demise of political power. Assembly-introduced Bill still are not reviewed in enacting process. Third, Regulatory review has lot of improving rooms like unsatisfactory RIA(Regulatory Impact Analysis). These analysis might help to design next government’s regulatory reform system.

The housing finance market of Korea is deemed to be vulnerable to external risks. Combined with high burden of household debts, it may jeopardize the whole financial system. This study, based on this perception, identifies major determinants of loan delinquency from individual lending data. Compared with the existing empirical research on the same issue, the paper distinguishes itself by including loan characteristics as well as DTI and LTV for explanatory variables. The loan characteristics are proxied by maturity, payment, and the level and the variability of interest. Empirical results confirm that high levels of LTV and DTI both raise the probability of delinquency whereas a long-term amortizing mortgage tends to lower the probability. These results provides support that the government programs taken since 2000s, such as setting DTI ceilings and propagating long-term amortizing mortgage programs, should be pursued in the same direction.

For increasing welfare expenditure under the condition of fiscal sustainability we need more tax revenue. Before increasing tax rate we must better think about the another way of tax revenue increase. In this study we handle this alternatives: reducing tax-exemption, tax avoidance, tax evasion and shadow economy. Our total national tax expenditure for the year 2009 was about 28.3 trillion won, 15% of total national tax revenue of the same year. Some parts of these exemptions must be called off: tax aid for savings, exemption of capital gain tax for 8-year-self-cultivated land and for art, special excise tax exemption for golfing in Jeju Island. But the increasing revenue amount financed by this way can not be more than about 1 trillion won. By way of reducing tax avoidance and evasion we may have about 5 trillion won revenue more in the areas of income tax and value added tax. But this way of state financing generally leads to high tax administration costs and 100% eliminating the tax evasion is not realistic. So we may not overestimate the possibility of revenue creation by way of reducing tax-exemption, tax avoidance, tax evasion and shadow economy.