[Yoon Administration Economy] Introducing 'Cause-Two-Out Rule' to Reduce Regulatory Costs, One-Shot Solution for Bulk Regulations

[Asia Economy Sejong=Reporter Kim Hyewon] The government will introduce a regulatory cost reduction system to prevent excessive new regulations. It will also promote a 'One-Shot Regulatory Resolution' to identify large-scale regulations and revise related systems and laws. The 'Economic Regulatory Innovation Task Force (TF),' led by the Deputy Prime Minister for Economy, will take the lead in regulatory reform in the economic sector.

The government announced the new administration's economic policy direction containing these details on the 16th.

The government decided to introduce the so-called 'One In, Two Out' rule, which requires abolishing or easing existing regulations equivalent to twice the expected net cost of newly introduced or strengthened regulations. Additionally, when analyzing the impact of new or strengthened regulations, it will be mandatory to simultaneously review regulations to be abolished or eased. Reduction targets for each ministry will be set flexibly to encourage voluntary regulatory reduction, but considering trends in new regulations, the reduction target rate will be adjusted to around 200%.

To enhance the effectiveness of the regulatory sunset system, it will be mandatory to set a review deadline for newly introduced or strengthened economic and job-related regulations. For legislative bills, the government aims to improve the quality of regulatory impact analysis by consulting with the National Assembly to ensure that the Assembly conducts its own regulatory impact analysis before enacting or revising laws.

To remove obstacles to regulatory reform, the government plans to identify regulations under central government authority, such as various permits and approvals, that can be transferred to local governments and promote the delegation of authority. The government will also introduce the One-Shot Regulatory Resolution to identify large-scale regulations involving multiple ministries and local governments and comprehensively revise related systems and laws. The improvement plan will be finalized through selection, review, and confirmation stages.

To support the resolution of social conflicts during the regulatory innovation process, the government is considering establishing a 'Win-Win Innovation Fund' involving public and private participation. Referring to similar overseas cases, detailed plans including legal grounds and funding arrangements will be prepared. A conflict-resolution type regulatory sandbox will be newly established, involving stakeholders and experts in the demonstration and regulatory improvement processes. It will also mandate regulatory review deadlines (within 90 days after task submission) and the establishment and notification of plans for legal amendments.

Regulations and systems that have been operated as long-standing practices will be reorganized to align with current times. Customized improvement plans will be prepared to ensure that various location regulations do not become obstacles when companies pursue facility investment or startups. Through ministry-specific regulatory innovation TFs, the government will investigate discriminatory regulations based on company size and seek rationalization. The criteria for market-dominant operators will be raised, and the urban zoning system will be restructured.

Bang Gi-seon, First Vice Minister of the Ministry of Economy and Finance, said in a pre-briefing, "We will create regulatory reform achievements that have not been realized so far through bold measures that break the existing framework and create conditions to revitalize private and corporate investment." He added, "By operating the economy centered on the private sector, companies, and markets, we will enhance economic vitality and lay the foundation to overcome low growth."