Government Dismantle Corporate and Land Regulations Next Year

The government decided to dismantle regulations on land development starting next year including lifting the development ban on much of the greenbelt area and farmland.

A major objective in administering economic policies next year would be more job creation by encouraging investment. To achieve this objective the government will aggressively foster the service industry, which has a big potential to create jobs.

At the Government Complex in Gwacheon on December 30 the government held a joint session of the fourth national economy and public welfare meeting and the 13th economic advisory committee meeting, presided over by President Roh Moo-hyun, and set the above policy guidelines for the 2004 economic administration policy.

At the meeting cabinet members agreed to loosen various corporate regulations by a large margin to encourage investment. These regulations have been big hurdles for companies.

Especially when it comes to land regulations, the government will review them from the starting point and announce a roadmap of land regulation reform in the early half of next year.

The plan to transfer as much land as possible designated a “preservation and reproduction management area” to a “planned managing area” that is subject to development would be contained on the roadmap.

And, to bolster the service industry, a decision to eradicate the discriminatory system of financing, taxation, and allotment on the industry as compared to manufacturing industry was made.

Deputy Prime Minister and Finance-Economy Minister Kim Jin-pyo reported, “It is truly understandable that the five percent range for economic growth the government is aiming for next year is not satisfactory, and for the time being the basic macro economic policies for economic recovery will be sustained.”

Following the report President Roh presented the 2004 tasks for economic policies including regulation relief, market reformation, development of the service industry, and technology and regional renovation, and ordered each ministry to “keep more transparency in handling reviews of corporate regulations.”

Cho Sun, Na Woong-bae and Lee Hyun-jae, economic advisory committee members, said at the meeting, “To increase domestic and foreign investment, improving the environment is an important prior task.”

Kwang-Hyun Kim kkh@donga.com