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President Yoon once again orders the swift removal of “killer regulations” in the industrial, environmental, and employment sectors. The government plans to ease restrictions on industrial complexes and revise standards for chemical substances.
President Yoon stressed the importance of swift regulatory reform. During the fourth regulatory innovation strategy meeting held on August 24, President Yoon stated, “Global cooperation is required to develop technology, which is why we must reshape regulations to align with global standards.”
This meeting marked President Yoon’s second time presiding over the regulatory innovation strategy meeting, following the inaugural meeting in August of last year. The meeting was convened to review the progress made in eliminating “killer regulations,” a directive he had issued during the “Economic Policy Directions for the Second Half of 2023” meeting.
Key subjects raised during the meeting by private sector participants included regulations on industrial water and electricity usage in industrial complexes, environmental regulations related to the Chemical Substances Control Act and the Act on Registration and Evaluation of Chemical Substances, and employment regulations on foreign workers.
In the course of the meeting, the government unveiled six improvement plans across three regulatory fields: entry regulations to industrial complexes, environmental regulations such as the management of chemical substances, and employment regulations including the employment of foreign workers.
Regarding the regulations on entering industrial complexes, the government will broaden the scope of permissible businesses, enabling businesses of cutting-edge and emerging industries to enter the existing industrial complexes. For environmental regulations, adjustments will be made to the threshold for chemical substances under the Chemical Substance Control Act and the Act on Registration and Evaluation of Chemical Substances that are subject to mandatory advance registration. The threshold will be adjusted to conform to EU standards, shifting the requirement from “businesses intending to manufacture or import at least 0.1 ton of chemical substance” to “at least 1 ton of chemical substance.” Furthermore, the government plans to alleviate regulations on foreign workers by increasing the E-7-4 visa quota granted to skilled foreign workers from 2,000 to 35,000 and raise the E-9 quota from 110,000 to 120,000 in 2023. Alongside these announcements, President Yoon underscored the pivotal role of swift administrative implementation by the relevant departments for the regulatory reform to succeed. He emphasized, “Economic competition is a battle without bullets. Assisting businesses in their operations is of paramount importance.” He further stated, “We must channel our administrative resources towards the reform of ‘regulations that must be removed,’ which have a direct impact on people’s livelihoods.”
Business circles welcomed the government’s regulatory reform plan, urging reforms to regulations that conflict with global standards, such as entry regulation for emerging industries and discriminatory regulation based on business size. Meanwhile, environmental advocacy groups voiced concerns over potential environmental destruction or accidents involving hazardous substances that excessive deregulation may trigger.
As the first-ever Korean law firm to issue specialized legislative journals, DR & AJU LLC has been publishing the monthly Policy & Business Report since August 2019. The August 2023 issue of the P&B Report conducted a full inspection of legislation proposed to the National Assembly Subcommittee, Standing Committee, and Plenary Session from July 15, 2023, to August 14, 2023, and selected and analyzed legislation with a significant impact on corporate activities. In the case of major legislation, key mentions of legislators, members of the Standing Committee, and government officials are included.
*DR & AJU Legislation & Government Relations Consulting Center provides P&B Report subscription service. Please contact us at Ic@draju.com for further inquiries.
