Economic Regulation Reform Assessed

It was confirmed on July 10 that the Board of Audit and Inspection launched an inspection of the government’s reforms on economic regulations. Such an inspection was once carried out four years ago under former President Kim Dae-jung’s watch and is the first time since President Roh took office. The outcome of the audit is worth noting because it is being conducted at a time when the Roh administration is assessing its reforms as successful.

An official of the Board of Audit and Inspection said, “The board began inspection on 20 government ministries and agencies related to reforms on economic regulations including the Office for Government Policy Coordination and the Fair Trade Commission.”

The official added, “The board is carrying out a close inspection and focusing on whether the regulation reforms are being implemented properly because the government is trumpeting its progress, but the general public doesn’t buy it.”

It is known that the Board of Audit and Inspection found in the preliminary probe differences in what the government announced and what is reality to some extent.

An auditing official said a government ministry had once conducted a survey on the public opinion in the regulation reforms but did not disclose the result because it was somewhat negative.

The first phase of the audit expected to be completed in mid-July will make clear whether reform tasks that can have a huge impact on the society are being implemented among the 1,200 reform tasks that the Office of Government Coordination announced as completed.

The second phase of the audit will single out reform tasks that need to be improved and launch a thorough inspection on them.

Auditors are planning to examine alternatives to shareholding cap regulations and policy regulations such as ones on the development of the Seoul metropolitan area, which are being pursued by the Fair Trade Commission. Thirty auditors will carry out the inspection, and the result is expected to be released in October.

Min-Hyuk Park mhpark@donga.com