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Foreword
Regulatory reform has been a top priority in Korea for several successive administrations. Reforms have included the Sinmungo, which alerts the government to unnecessary burdens on business and citizens, and a "Cost-in, Cost-out" system that restricts the cost increase of new or amended regulations by abolishing or relaxing regulations that produce equal or greater costs. Korea also created a Regulatory Reform Committee, composed of government and public sector representatives, to scrutinise laws and regulations. Maintaining momentum for reform in Korea will be essential for producing tangible results and supporting sustainable inclusive growth, raise productivity and encourage innovation.
This Regulatory Reform Review of Korea applies a methodology developed over two decades of peer learning, and builds on two previous Regulatory Reform Reviews of Korea completed in 2000 and 2007. It identifies critical factors that can strengthen the impact of regulatory reform and enhance the government's capacity to improve the design and delivery of regulations. The review finds that, since the late 1990s, the necessary institutions, processes and tools to support good regulatory practices have been well established. The time has come to consolidate these considerable reform efforts and take them to the next level, making regulatory processes more proactive and strategic.
The review identifies a number of areas where improvements could help Korea reap the full benefits of the reforms introduced so far. In particular, the review stresses the need for a clear strategy for the regulatory policy in order to make better use of the resources deployed. The review also recommends better targeting reforms toward simplifying and improving the regulations and policies that are most burdensome for business and citizens. To support this effort, the regulatory system should promote a more proactive attitude to identifying and implementing regulatory improvements across the central administration. In a similar way, the private sector should share ownership of regulatory improvements and shiftfrom focusing on complaints to finding solutions. The review also highlights the importance of a more inclusive regulatory system, which can be achieved by opening up all institutions and processes, including the National Assembly, to public scrutiny and including a wider range of stakeholders.
This review is carried out as part of the OECD work programme on regulatory policy led by the OECD Regulatory Policy Committee (RPC),...