Requirements for establishing holding companies to be eased

A holding company will be required to possess more than 30 percent of the stakes in its subsidiaries no matter when they were established, as long as the companies are listed on the Korea Stock Exchange (KSE) or Kosdaq. Currently, this standard applies only to listed companies established before Apr. 1 last year. In the other cases, the requirement for a minimum equity holding is 50 percent.

In a bid to facilitate corporate restructuring, the committee also decided to abolish the present restriction on the disposal of lots and factories within industrial complexes and allow companies to sell off the assets at will.

The ceiling for insurance companies' investments in stocks will also be expanded from the current 30 percent to 40 percent of their total assets.

The Regulatory Reform Committee said Tuesday that it examined 22 regulatory reform proposals recommended by five economic organizations last month and decided to accept 18 of them. The committee plans to revise related laws for the reforms during the first half of next year.

But the committee rejected a request for reforms in the remaining four areas, including a proposed increase of exceptions in the employment quota for the handicapped and the establishment of large discount stores in green-belt areas. As reasons for the rejection, the committee said that they were not in line with international standards.

The committee also decided to gradually decrease the number of items subject to government approval for export to or import from North Korea. The deadline for approval will be shortened from the present 20 days to two weeks. The screening method on items processed on commission in North Korea will also be changed from the current whole-lot examination to a sample test.

In addition, the committee decided to abolish the restriction on extra working hours by female workers currently set at two hours a day or six hours a week. The contract period for non-regular workers will also be expanded from the present one year to three years.