By Kang Seung-woo
Amid intensifying drive toward regulatory reform here, Korea is set to follow in the footsteps of Australia.
“While many countries are pushing for deregulation to revive the economy, Australia is referred to as a leading nation in such a move,” said Kang Young-cheol, deputy minister for Regulatory Reform at the Office of Government Policy Coordination.
“In 2013, Korean government officials visited Australia to learn its regulatory system and in April 2014, President Park Geun-hye and Australian Prime Minister Tony Abbott also discussed the regulatory reform,” he said at the Best Practice Regulation Workshop, hosted by the Australian Embassy in Korea, in Seoul.
In the summit, Park and Abbott agreed to work closely together to improve regulatory quality and promote deregulation across our economies, including exchanges of experts and business delegations.
“By eliminating unnecessary corporate regulation, we will ensure businesses get the most out of our free trade agreement,” said a statement, adopted after the meeting.
“Services and investment are important parts of KAFTA, but they cannot reach their full potential unless the regulatory environment improves,” said Australian Ambassador Bill Paterson.
“Predictability, transparency, consultation, consistent application, and cutting red-tape are essential and both our governments are committed to achieving a more business friendly regulatory environment.”
Korea and Australia signed their free trade agreement in April, which was ratified in December.
The one-day forum came as President Park, who sees regulations as “cancerous bodies” hampering national growth, has driven to lift or ease all but core regulations to help reinvigorate the national economy.
Deregulation is a significant part of her three-year plan to boost the economy that focuses on high-tech convergence and the service industries, which are crucial to underpinning domestic consumption.
Since taking office in February 2013, Park has held round table discussions twice at Cheong Wa Dae about her administration’s efforts toward regulatory reform.
According to Kang, the government improved some 3,000 regulations last year and it is set to begin another round of regulatory reform in wider areas.
Foreign companies investing here have been complaining of various regulations and restriction hampering their businesses including the double taxation and labor dispute.