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August 28, 2008

August 28, 2008. 1. Overview of Regulatory Reform. Regulatory Reform Tasks & Progress. Regulatory Reform for Civilian Life. Road Ahead. Overview of Regulatory Reform. Overview. Task and Progress. Reform Report. Road Ahead. For Improved Convenience of Civilian Life and

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August 28, 2008

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  1. August 28, 2008 1

  2. Overview of Regulatory Reform Regulatory Reform Tasks & Progress Regulatory Reform for Civilian Life Road Ahead

  3. Overview of Regulatory Reform

  4. Overview Task and Progress Reform Report Road Ahead For ImprovedConvenience of Civilian Life and Enhancement of Growth Potential Rely on Market Function Enhance Regulation Quality Infrastructure building for regulatorysystem improvement Proactive review before regulation creation Support abolition and easing of unnecessary regulations

  5. Regulatory Reform Tasks & Progress

  6. By area By action type Tasks and Progress Overview Reform Report Road Ahead 1. Current Status of Identifying Regulatory Reform Tasks Identify regulatory reform tasks from the demand perspective Identify tasks through various channels such as suggestions from economic groups and local autonomies, public suggestions, and on-site inspection Identified1,517 regulatory reform tasks by Aug.’08 5%[65 items] 57%[865 items] 3% Education Budget actions and etc. 13% Others 22%[328 items] Finance Revision of enforcement decree/lower-level statutes 19% [295 items] Investment promotion for business start-up and improvement of corporate environment 6% Health care 7% Environment 17% [261 items] Public convenience enhancement 38% [587 items] Statutory revision 13% [190 items] Land utilization and construction & dev.

  7. Tasks and Progress Overview Reform Report Road Ahead 2. Implementation Status of Regulatory Reform Tasks Completed 377 out of 1,517 tasks identified Performance As of Aug. ’08 1517 1500 100% 1146 1000 50% 377 500 0% 0 Aug Dec. 2008 Dec. 2009 • Some tasks are on hold due to delayed legislation in the National Assembly and resistance of interest groups • Some time is needed for completed regulatory reform tasks to take effect, and proactive PR efforts are important for the public to feel the change

  8. Regulatory Reform for Civilian Life

  9. Reform Report Tasks and Progress Overview Road Ahead 1 Supporting economic activities of the self-employed and farmers & fishermen • Abolish mandatory purchase of National Housing Bonds for small- • scale, self subsistence-oriented restaurants • (Ministry of Land, Transport, and Maritime Affairs) • Ease economic burdens on subsistence business owners • (In Sep.’08, the revision process will be initiated for Enforcement Decree of • Housing Act) - Allow discretion for places with low necessity or with difficulty in installation (Ex: emergency broadcasting facilities) - Exclude silkworm farms, apiaries and fish farms from the scope of application Expect to ease economic burdens of small/medium-sized farming businesses (In Dec.’08, Enactment Decree of Installation, Maintenance, and Safety Control of Fire-Fighting System Act will be revised) • Relax duty of installation of fire-fighting equipment in cattle sheds (National Emergency Management Agency)

  10. Reform Report Tasks and Progress Overview Road Ahead 2 Less burdens on civilian life Increase cap on preferential repayment of housing rent deposit money (Ministry of Justice) -Expand the scope of tenants qualified for preferential repayment of housing rent deposit money and raise the cap on preferential repayment amount(In Aug,’08, Enactment Decree of Housing Lease Protection Act was revised) At lease 3.41 million households (250 thousand in Seoul) are expected to benefit from the change Unlock USIM locks on mobile phones to allow the change of service provider with changing the mobile phone (Korea Communications Commission) Offering consumers more choices and encouraging to reduce household communication expenditure (In June ’08, interconnection standards for telecommunications equipment were notified and legislated.

  11. Reform Report Tasks and Progress Overview Road Ahead Stronger social safety net and more education opportunities 3 - Grant basic income deduction by defining foster children as dependent families eligible for income deduction Promote foster care by easing economic burden on child care of a foster family (In Oct.’08, Revised Income Tax Act is to be presented to National Assembly) Allow income deduction for children under foster care(Ministry of Strategy and Finance) Expand life-long education opportunities for the disabled(Ministry of Education, Science, and Technology) - Allow extra quota for those in need of special education in life-long education facilities Expand education opportunities for those marginalized from education including the disabled (June ’08, Enforcement Decree of Life-Long Education Act was revised)

  12. Reform Report Tasks and Progress Overview Road Ahead 4 Resolveinconvenienceinimmigrationcontrolandoverseas travel Abolish mandatory reporting of country departure for those with uncompleted military service (Ministry of Justice and Military Manpower Administration) - Related system interface is supported to allow real-time list transmission Ease time pressure on those who are duty-bound for military service (In July ’08, Enforcement Decree of Immigration Control Act was revised. In Dec. ’08, revised Military Service act will be submitted to the National Assembly) Transfer emigration reporting civil affairs to local governments (Ministry of Foreign Affairs and Trade) Local residents can report their emigration in their domicile (In July ’08, the revised Emigration Act was submitted to the National Assembly]

  13. Reform Report Tasks and Progress Overview Road Ahead 5 Vehicle management system improvement and simplification of civil request affairs • Improve the current universal vehicle exhaust inspection system • (Ministry of Environment) • - Shift to intensive management targeting vehicles with excessive exhausts • Save 68 billion won a year (Dec. ’08, revised Clean Air Conservation Act is to • be submitted to the National Assembly) • Reduce paperwork through information sharing • (Ministry of Public Administration and Security) • - Increase the range of information and organizations • to share administrative information • Reduce 29 million paper documents • a year (app. 50%), saving 1.8 trillion won • (Administrative information sharing system in pilot operation) 66types 66 Org. 42types 45Org. Current Current Improvement Improvement Target info. Target Org.

  14. Road Ahead

  15. Road Ahead Tasks and Progress Overview Reform Report 1. Accelerating Regulatory Reform Support passage of bills for regulatory reform in the N.A Speed up the legislative process for 149 regulatory reform bills to be submitted to the National Assembly by the end of this year Facilitate efforts for bill passage through government-political parties consultation Place priority on legislation and revision of lower-level statutes Place priority on regulatory reform tasks that the government can implement at its discretion, such as legislation and revision of lower-level statutes

  16. Road Ahead Tasks and Progress Overview Reform Report 1. Accelerating Regulatory Reform Drive regulatory reform of local autonomies for more effective results of regulatory reform Identify and revise unnecessary regulations based on ordinances Spread best practices to other local governments and organizations (Planning to publish the best practice booklet containing examples of Paju, Kunsan, Ahnsan) Conduct reviews and assessments to ensure exhaustive implementation of regulatory reform Check monthly implementation progress, analyze causes for underperformance, and encourage effective reform implementation Conduct interim (Sep.) and final (Dec.) assessment on performance - Reward excellent performers (organizations and people) Conduct regulatory reform satisfaction surveys of the general public, the regulated, and experts(November)

  17. Road Ahead Tasks and Progress Overview Reform Report 2. Thorough Regulatory Review Strengthen the gate-keeper’s role of the Regulatory Reform Committee for regulation creation and intensification Shift from universal restriction and control to non-regulative measures such as economic incentives Apply sunset clauses to regulations to prevent permanent effects from new regulations Strengthen RIA capacity to improve the quality of regulation Strengthen the check-up for the implementation status of regulatory review results

  18. Road Ahead Tasks and Progress Overview Reform Report 3. Establishment of infrastructure including regulatory system improvement Expand application of negative approach based regulation Strengthen regulation approaches in compliance with market principles and global standard Clean up administrative inspection to reduce corporate burden Plan to abolish or clean up 88 out of 446 cases of administrative inspection Apply Information technology for transparent and systematic regulation information management Set up strategic plan this year, and complete system establishment by next year

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