Korea Economic Association Submits 71 Regulatory Reform Proposals to Government: "Outdated Business Regulations Must Be Revised"

Easing Regulations on Factory Sites Established Before Greenbelt Designation
Need to Ease Criteria for Greenhouse Gas Emissions Permit Cancellation
Amendment Needed for Laws Restricting Newspaper and Broadcasting Ownership

Economic organizations have called on the government to ease regulations on businesses across various sectors of society, including expanding factory facilities within greenbelt zones and greenhouse gas emissions at workplaces.

The Korea Economic Association announced on the 23rd that, after gathering opinions from its member companies, it submitted 71 items for the "2025 Comprehensive Regulatory Improvement Agenda" to the Office for Government Policy Coordination. By ministry, these included 12 items for the Ministry of Employment and Labor, 11 for the Fair Trade Commission, 8 for the Ministry of Land, Infrastructure and Transport, 8 for the Ministry of Environment, 5 for the Financial Services Commission, and 4 each for the Ministry of Economy and Finance and the Public Procurement Service.

The Association requested that the greenbelt designation be lifted for factory sites established before the designation of development-restricted zones (greenbelts), in order to guarantee free business activities and promote regional development. Currently, even factories established before the greenbelt designation are subject to regulations such as total floor area limits and building coverage ratios, and must obtain approval from the head of the local government if they wish to expand or add facilities.

The Association also urged regulatory revisions to the "Greenhouse Gas Emissions Trading Act," under which the government allocates emission permits to workplaces and restricts emissions within those limits. It argued that emission reductions resulting from unavoidable shutdowns due to regular maintenance are also included in the cancellation of emission permits, which imposes a burden on companies. In particular, the Association pointed out that, starting this year, if emissions are reduced by more than 15% compared to the allocated amount, the system has been revised to differentially cancel emission permits for the shortfall, further increasing the burden on companies.

Exterior view of the Korea Economic Association building, provided by Yonhap News Agency

The Association also stated that amendments to the current Newspaper Act and Broadcasting Act, which restrict media ownership, are necessary. Under current law, companies and their affiliates belonging to large business groups subject to mutual investment restrictions and possessing assets above a certain threshold are prohibited from owning more than 50% of the shares or equity in a general daily newspaper. The Association pointed out that "these regulations fail to reflect economic growth and the expansion of corporate scale, and the emergence of new media such as OTT (online video services) and SNS (social networking services) has significantly diminished the influence of newspapers and terrestrial broadcasters on public opinion, undermining the validity of these regulations." The Association recommended that, in the short term, the asset threshold be raised, and in the long term, the abolition of related ownership restrictions be considered.

The Association also suggested that the criteria for selecting successful bidders in public procurement evaluations under the National Contract Act should be revised. Currently, in public procurement evaluations, companies are awarded or deducted points based on the difference between their accidental death rate over the past three years and the industry average. The accidental death rate refers to the number of occupational accident deaths per 10,000 workers covered by industrial accident insurance. However, the Association argued that the broad scope of accidents included in the calculation of the accidental death rate means that companies that have faithfully implemented safety management may still be disadvantaged. Currently, for a fatal accident to be excluded from the accidental death rate, there must be no violation of laws such as the Occupational Safety and Health Act, and the accident must be unrelated to work. The Association requested that, in cases where the employer has not violated the law, such accidents should be excluded from the calculation of the accidental death rate.

Lee Sangho, head of the Economic and Industrial Division at the Korea Economic Association, emphasized, "As of 2023, Korea's Product Market Regulation (PMR) index ranks 20th out of 38 OECD countries, placing us in the lower tier. In order for domestic companies to gain global competitiveness and restore economic vitality, outdated and unreasonable regulations must be boldly reformed."