KCCI Proposes 'Regulatory Reform Tasks for Improving Corporate Environment' to Government

Prolonged COVID-19 Pandemic Weakens Industrial Competitiveness... "Need to Boost Corporate Vitality"
63 Measures Including Fostering Key Strategic and New Industries, Supporting Carbon Neutrality, and Improving Analog Regulations

[Asia Economy Reporter Ki-min Lee] The Korea Employers Federation announced on the 6th that it has proposed to the government the '2021 Regulatory Reform Tasks for Improving the Business Environment' discovered on-site to strengthen the industrial competitiveness weakened by the prolonged COVID-19 pandemic and to revitalize corporate activities.

The Federation presented a total of 63 regulatory reform tasks by sector, including fostering core strategic industries and new industries, support for carbon neutrality, COVID-19 response, rationalization of information protection systems, and improvement of outdated analog-style regulations that do not fit the changing times.

First, to enhance the competitiveness of core strategic industries, it proposed 'relaxation of explosion-proof regulations for semiconductor production facilities,' 'simplification of final inspection for semiconductor combustors,' and 'relaxation of standards for installing electric vehicle chargers at gas stations' to commercialize future cars. It also requested that domestically produced solar inverter products be recognized with international certificates like foreign products.

Additionally, it proposed exempting value-added tax (VAT) on trading emission permits for total quantity management pollutants such as nitrogen oxides, sulfur oxides, and dust, similar to greenhouse gas emission permits. It also requested support necessary for on-site response to carbon neutrality, such as easing administrative sanctions on combustion emission towers in cases of force majeure like natural disasters, and relaxing the self-measurement cycle for air pollutants.

For COVID-19 response, it proposed easing restrictions on land disposal within industrial complexes during worsening business conditions, relaxing post-management requirements for qualified merger tax benefits, extending employment retention subsidies, extending non-face-to-face and alternative education in the aviation industry, and expanding VAT deductions for restaurants. To address the surge in delivery volumes after the COVID-19 pandemic, it requested raising the weight limit for new delivery vehicles from under 1.5 tons to up to 2.5 tons and expanding the foreign worker employment permit system in the delivery industry.

To stabilize prices, it proposed applying a 0% tariff quota on crude oil for naphtha production and expanding the upper limits of general management costs and indirect labor costs for construction projects reflecting high inflation. It also requested easing restrictions on manufacturers' access to vehicle registration information for personal information protection reasons and lowering the information security chief position from executive to department head level in holding companies.

Furthermore, it requested improvements in labor-related laws and systems, including flexible working hours, regulations on fixed-term and dispatched workers, unfair labor practices, and prohibition of replacement labor during strikes.

Kim Jae-hyun, head of the Federation's Regulatory Reform Team, said, "As the COVID-19 pandemic prolongs, industrial dynamism is declining and potential growth rates are on a downward trend, making it urgent to improve the business environment." He added, "Since there are limits to reviving the economy through fiscal expansion alone, bold regulatory reforms are necessary to quickly restore economic vitality." He emphasized, "Regulatory reform is especially important to surpass a per capita national income of $30,000 and continue sustainable growth."