Two presidential advisory bodies called for sweeping deregulation to ensure the success of the government's three mega projects, arguing the initiative should go beyond adding semiconductor fabrication plants to deliver a step change in the wider industrial ecosystem, including power grids, water supply and workforce development.
The National Economic Advisory Council and the Regulatory Rationalization Committee, both under the president, co-hosted a forum on the 3rd at Ferrum Tower in Seoul's Jung District, focusing on regulatory reform in advanced industries and mega special zones as well as national economic growth. The event was arranged to discuss policy options such as introducing a comprehensive negative-list regulatory system to strengthen the competitiveness of advanced industries and overhauling rules for mega special zones to promote balanced regional growth.
Kim Sung-sik, vice chairman of the National Economic Advisory Council, said in his opening remarks that "with global competition intensifying over leadership in advanced industries, our economy needs a dramatic change to its regulatory framework to escape the low-growth trap and make a leap forward." He said, "The three mega projects must also systematically build up the full stack of the semiconductor ecosystem — materials, parts, equipment and software — and further, design capabilities," adding that "using this as a springboard, we must significantly broaden the foundation for South Korea's economic revival beyond semiconductors into other advanced and strategic fields." He stressed that "the mega projects must be accompanied by a shift to negative-list regulation that decisively clears bottlenecks on the ground, along with bold regulatory rationalization centered on regional mega special zones."
"There is no time to hesitate. We must open wide the path to creating quality jobs and building an innovation ecosystem," he said. "Regulatory rationalization is a national mission that changes the fundamentals of the economy and secures the vitality of future generations."
Park Yong-jin, vice chairman of the Regulatory Rationalization Committee, said in his welcoming address that "regulatory rationalization is not about eliminating rules unconditionally, but about boldly changing systems that fail to keep pace with the times and administrative regulations that block corporate change." He added, "We will remove unnecessary and outdated speed limits, but where needed we should also build rest areas and drowsy-driving shelters, and install guardrails for safety." He said, "The purpose of mega special zones is to lay new highways across South Korea where innovative companies can run freely."
Experts from industry and academia attended the event. Cho Jae-han, head of the Center for Industrial Future Policy at the Korea Institute for Industrial Economics and Trade, gave a presentation titled "Systematic Identification of Regulatory Bottlenecks in Advanced Industries and Tasks for Shifting to Negative-List Regulation," explaining the need to build a rational regulatory framework. Cho proposed identifying regulations at the industry and statute level rather than by individual complaints or provisions, institutionalizing ex-post assessments of impacts on industrial competitiveness, and designing negative-list regulation by combining the designation of high-risk areas with conditional approvals and follow-up inspections.
Choi Jong-kwon, deputy head of the Construction Law Center at Seoul National University, presented on strategies for promoting mega special zones to achieve balanced regional growth. Choi said, "A mega special zone is not simply a large zone or one with many regulatory exemptions, but a broad, comprehensive implementation platform for actually realizing strategic industries and large-scale corporate investment outside the capital region." He added, "Local governments should lead planning and on-site execution, but the central government must responsibly mediate conflicts over regulations, permits and funding that span multiple ministries and local governments."
