Choo Kyung-ho: "We Will Prevent the Foreign Exchange Market from Becoming a Playground for Foreign Capital"

Government Seoul Office 'Economic Regulation Innovation TF Meeting'
Choo Kyung-ho "Various Regulations to be Radically Improved"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is delivering opening remarks at the Economic 'Regulatory Innovation TF Meeting' held at the Government Seoul Office in Jongno-gu, Seoul on the 10th.

[Asia Economy Sejong=Reporter Song Seung-seop] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated, "We will drastically improve various regulations to align with global standards and resolve difficulties faced by businesses on the ground." Regarding concerns about rampant currency speculation raised by successive foreign exchange market liberalization policies, he announced support to enable domestic financial institutions to take the lead.

On the 10th, Deputy Prime Minister Choo attended the 'Economic Regulation Innovation TF Meeting' at the Government Seoul Office and said, "To achieve a swift economic rebound and enhance economic vitality, we will manage the macroeconomy stably and solidify a sound fiscal stance." This was the fourth TF meeting, where the 'Direction for Foreign Exchange System Reform,' the '1st Procurement Field Regulation Innovation Promotion Plan,' and the 'Construction Industry Field Difficulty Improvement Plan' were discussed.

Deputy Prime Minister Choo announced, "In the first phase of the foreign exchange system reform, we will prioritize tasks that can be addressed within the current foreign exchange system framework, focusing on citizen-friendly and corporate investment-friendly measures." He added, "Structural reform tasks that change the framework of the foreign exchange system, such as switching the foreign exchange transaction reporting system to a negative regulation and abolishing business regulations by sector, will be pursued considering the economic situation." He explained, "Considering the need for a comprehensive improvement of practices formed over decades, we will proceed cautiously and step-by-step without rushing."

He continued, "We will ensure that concerns voiced by some that the implementation of the foreign exchange market structural improvement plan announced on the 7th will turn the market into a playground for foreign capital do not materialize," and added, "We will actively support domestic financial institutions to maintain market leadership and enhance global competitiveness."

Regarding the procurement field regulation innovation promotion plan, he pointed out, "Public procurement is a large-scale market worth 184 trillion won annually, contributing to opening sales channels for small and medium enterprises and reducing purchasing costs for demand institutions," but also noted, "There are aspects where standards and requirements to enhance fairness and equity in contracts act as regulations for participating procurement companies."

Deputy Prime Minister Choo said, "Accordingly, the government has identified 138 regulatory innovation tasks and prepared improvement plans in four areas: supporting innovative growth, revitalizing the procurement field, reducing time, cost, and paperwork burdens, and enhancing the convenience of the procurement system." According to the plan, products without delivery records will be allowed to register in the comprehensive shopping mall for innovative products, and excellent safety equipment in the fire and police sectors will be actively discovered and promoted. The delivery prices will also be adjusted to ensure fair compensation.

Regulatory improvement measures to revitalize construction projects facing difficulties due to real estate market contraction or financing challenges were also introduced. Construction and safety standards for smart construction technologies and cost estimation standards will be promptly established and quickly applied and spread at construction sites. Redundant documents submitted during construction work will be eliminated, and a star rating savings system will be introduced to provide incentives to companies excelling in safety management.