Easing administrative red tape is for nation's economic future
Japan's economic retaliation against Korea is re-emphasizing the need for regulatory reform in all industrial fields, beginning with parts and materials. The renovation of regulations has always been a national task, but calls are growing anew for the country to achieve technological self-reliance and promote related sectors.
The ruling Democratic Party of Korea (DPK) also stressed the need for reducing administrative red tape during a meeting with the government on Thursday. "Now is the time to change regulatory mindsets fundamentally," Rep. Choi Un-yeol said while proposing to shift to a comprehensive regulatory system as in many industrial countries. Instead of drastically relaxing regulations, the nation can plug the loophole by introducing a punitive compensation system to punish violators, Choi added.
For businesses to cope proactively with a rapidly changing external environment, the government should not excessively meddle in corporate moves. Even if the government eases regulations, it would be useless if bureaucrats do so after the "golden time" is over. That also explains why the government began to implement the "deregulation sandbox" and designate "regulation-free zones" earlier the year, opening the way for businesses to move ahead.
The governing party's forward-looking views on regulatory reform are welcome at a time like now when bad economic news is pouring in both from home and abroad. The government needs to adjust unnecessary or excessive regulations, such as those on chemical material management and the 52-hour workweek. Regrettably, however, there were dissenting views within the ruling party to the calls for deregulation. Rep. Han Cheong-ae, for example, said, "There are concerns about the government's going too far in easing regulations related to people's safety, health and the environment."
Relaxing all regulations cannot, of course, be an eventual solution. Nor can the nation do so. The government has only to ease unnecessary rules within a reasonable range. If some businesses use the deregulation as opportunities to pursue self-interests, the government can sternly punish them after the fact. The punitive compensation system, as proposed by Rep. Choi, also can be a way to keep selfish businesses in check. Regulatory reform is a goal that needs to be attained by all means for the nation's economic future.
Japan's economic retaliation against Korea is re-emphasizing the need for regulatory reform in all industrial fields, beginning with parts and materials. The renovation of regulations has always been a national task, but calls are growing anew for the country to achieve technological self-reliance and promote related sectors.
The ruling Democratic Party of Korea (DPK) also stressed the need for reducing administrative red tape during a meeting with the government on Thursday. "Now is the time to change regulatory mindsets fundamentally," Rep. Choi Un-yeol said while proposing to shift to a comprehensive regulatory system as in many industrial countries. Instead of drastically relaxing regulations, the nation can plug the loophole by introducing a punitive compensation system to punish violators, Choi added.
For businesses to cope proactively with a rapidly changing external environment, the government should not excessively meddle in corporate moves. Even if the government eases regulations, it would be useless if bureaucrats do so after the "golden time" is over. That also explains why the government began to implement the "deregulation sandbox" and designate "regulation-free zones" earlier the year, opening the way for businesses to move ahead.
The governing party's forward-looking views on regulatory reform are welcome at a time like now when bad economic news is pouring in both from home and abroad. The government needs to adjust unnecessary or excessive regulations, such as those on chemical material management and the 52-hour workweek. Regrettably, however, there were dissenting views within the ruling party to the calls for deregulation. Rep. Han Cheong-ae, for example, said, "There are concerns about the government's going too far in easing regulations related to people's safety, health and the environment."
Relaxing all regulations cannot, of course, be an eventual solution. Nor can the nation do so. The government has only to ease unnecessary rules within a reasonable range. If some businesses use the deregulation as opportunities to pursue self-interests, the government can sternly punish them after the fact. The punitive compensation system, as proposed by Rep. Choi, also can be a way to keep selfish businesses in check. Regulatory reform is a goal that needs to be attained by all means for the nation's economic future.
