Vice Chairman of the Korea Chamber of Commerce and Industry: "Regulatory Costs Reduced by 30% Annually Through Proactive Public Official Actions"

Jubong Park, Vice Chairman, Delivers 'Morning Special Lecture' at Seoul City Hall
"Regulations Act as Sandbags Tying the Hands and Feet of Businesses"
"Proactive Administration Alone Can Give Wings to Businesses and Save Costs"
Emphasizes the Need to Eliminate 'Red Tape' Bureaucracy

Jubong Park, Vice Chairman of the Korea Chamber of Commerce and Industry (Chairman of the Incheon Chamber of Commerce and Industry), emphasized on the 7th at the 'Future Seoul Morning Lecture' held at Seoul City Hall for Seoul city executives and staff that "regulatory costs can be reduced by 30% annually solely through proactive administration by public officials."

Park Ju-bong, Vice Chairman of the Korea Chamber of Commerce and Industry. Photo by Korea Chamber of Commerce and Industry

Vice Chairman Park cited research results from the Korean Regulatory Society and the Ombudsman Support Group, pointing out that "the regulatory costs for small and medium-sized enterprises in 2022 have nearly quadrupled compared to 2017 over five years," and added, "the increasing regulations over time are acting as sandbags that tie the hands and feet of businesses."

He particularly stated, "Even without amending laws, enforcement ordinances, or notifications, regulatory costs can be reduced by about 30% annually through proactive administration alone," emphasizing, "Proactive administration can give wings to businesses while also saving administrative costs." He referred to red tape (documents tied with red tape in 17th century England containing various procedures or regulations), meaning that simply resolving bureaucracy can reduce regulatory costs.

During his tenure as the Small and Medium Enterprise Ombudsman from 2018 to 2023, known as a 'field-type ombudsman,' Vice Chairman Park introduced cases of regulatory resolution through proactive administration, such as establishing Asia's first large-scale salmon farm by easing import regulations and expanding win-win cooperation with local markets by changing mandatory closure days for large supermarkets.

He said, "If all Seoul city public officials engage in proactive administration with passion, the development of Seoul will directly lead to the development of the Republic of Korea," and also highlighted the importance of utilizing the disciplinary exemption system to spread proactive administration. "By using the proactive administration disciplinary exemption system, we have mitigated the disciplinary actions of seven public officials in three local governments," he said, adding, "If such a system is widely applied, it will help change the passive attitudes of public officials."

Additionally, Vice Chairman Park stressed, "All problems and solutions related to regulatory innovation lie in the field," and said, "To resolve business difficulties, it is necessary to actively respond by going out into the field."

The Future Seoul Morning Lecture is a platform designed to invite experts from various fields to provide insights to Seoul city executives and staff, enabling them to flexibly respond to the rapidly changing administrative environment and strengthen Seoul's urban competitiveness. Lectures have been held on various social issues such as the Fourth Industrial Revolution, spatial innovation, digital transformation, and aging population.

Meanwhile, the Korea Chamber of Commerce and Industry announced on the 4th that it will promote initiatives related to regulatory innovation this year, including the Business Burden Index, Regulatory Map, and Mega Sandbox. They will conduct the 'Business Burden Index (BBI)' survey, which quantifies the burdens felt by businesses, for the first time in 10 years, and also promote the 'Regulatory Map' project to monitor the regulatory environment by region.