[Yeouido Interview] Hong Seok-jun① "Regulatory Reform Should Be Viewed Based on Citizen Benefits"

Interview with Hong Seok-jun, People Power Party Lawmaker
Proposed and Leads Party's 'Regulatory Reform Promotion Team'
"Will Implement Regulatory Reforms to Benefit the People"

"In some groups, when we talk about regulatory reform, they ask 'why are you helping a specific company?' I believe that in regulatory reform, we should not look at individual companies, but rather at how many citizens benefit from the services those companies provide."

Hong Seok-jun, a member of the People Power Party and head of the Regulatory Reform Promotion Team, stated this in an interview with Asia Economy on the 14th. Hong cited 'Tada' as a representative example. He said, "In 2019, Tada was operating, but the previous government amended the Passenger Transport Service Act and grounded it because some taxi drivers opposed it. Not only did the company suffer damage, but countless citizens of Seoul and Gyeonggi Province who used the service were also harmed."

Interview with Hong Seok-jun, member of the People Power Party. Photo by Kim Hyun-min kimhyun81@

To break away from such issues at the political level, Hong started the 'Regulatory Reform Promotion Team' within the People Power Party in August last year. Hong proposed the establishment of a regulatory-related organization within the ruling party rather than at the ministry level and took on the role of head. He said, "I am not doing this because someone told me to, but with a sense of duty as a member of the National Assembly."

In fact, Hong is achieving goals through the activities of the Regulatory Reform Promotion Team. He has produced concrete results, such as passing legislation to improve regulations in industrial complexes. He has also helped emerging companies struggling under current regulations, such as the legal service platform 'LawTalk' and the tax accounting platform 'SamzzumSam.'

The following is a Q&A with Representative Hong.

- What is the most memorable achievement of the Regulatory Reform Promotion Team?

▲ Earlier this month, the regulatory reform law to strengthen the competitiveness of industrial complexes passed the plenary session of the National Assembly. Most companies in South Korea are located within industrial complexes, but there were many factors blocking investment. Representative examples include industry-specific regulations and zoning regulations by usage area. These were largely removed to allow more flexible changes in business types and to enable convenience facilities for workers within industrial complexes. The significance lies in correcting and passing parts that could not be handled administratively through enforcement ordinances into law.

- There must be difficulties in pushing forward regulatory reform.

▲ The key is persuading stakeholders. Stakeholders have their own economic issues, scientific and technological concerns, religious issues, and various positions. Some may be reasonable, while others may be collective selfishness, making it quite difficult. Organized groups can be very intimidating. They sometimes approach as if there is a connection, questioning why a specific company is being helped. When this enters the political realm and directly connects to votes, it becomes burdensome.

However, regulatory reform should be viewed based on how many citizens benefit. For example, the tax accounting platform 'SamzzumSam' has millions of small business members. When they pay a small fee to report value-added tax, the amount to be reported is quickly calculated. Eliminating such fast and affordable services that help small business owners is not suitable for the country as a whole. Therefore, I focus on persuading others to see it from the citizens' perspective, not individual companies. When communicating with ministries, I invited practical officials such as department heads and directors, not ministers or vice ministers, to persuade them.

- Have you always been interested in regulatory reform?

▲ I have experience from when I worked as a public official. When I was the director of the Medical Affairs Bureau, in 2017, a hospital in Daegu successfully performed the country's first 'arm transplant.' However, arm transplants were only legalized in 2018. Until then, only five organs?cornea, kidney, heart, liver, and lung?were included as transplantable organs, and limbs were not included. However, it was included in the Ministry of Health and Welfare's new medical technology list, a kind of gray area. Since I experienced many things that could not be done due to regulations while working as a public official, I am well aware of the realities in related fields.

- Why is regulatory reform necessary in South Korea now?

▲ One of South Korea's serious structural problems is low birth rates. As the population, the source of labor, rapidly decreases, one of the main factors affecting national income shrinks, and demand decreases. The reason restaurants are struggling these days is because the population is declining and there are fewer customers. Therefore, the potential growth rate inevitably falls. Ultimately, we need to create a playground where individuals and companies can maximize their creativity. The most important thing for that is the regulatory reform agenda.

- Among the regulatory reform bills stalled in the National Assembly, what is the most urgent task?

▲ It is the amendment to the National Assembly Act to introduce regulatory impact assessments when lawmakers legislate. Currently, when one regulation is removed, ten new regulations are created through lawmakers' legislation. Therefore, we must block the creation of regulations from the legislative entry point. The amendment was proposed to establish a mechanism to control legislation that includes excessive regulations by having the Legislative Research Office conduct regulatory impact assessments on lawmakers' bills. A somewhat positive sign is that Speaker Kim Jin-pyo is proactive about regulatory impact assessments. However, the ruling and opposition parties are sharply divided, so I worry whether it will pass this year.