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`Tangled regulations` for auto and shipbuilding industries to be lifted

`Tangled regulations` for auto and shipbuilding industries to be lifted

Posted February. 07, 2014 00:22,   


The government has decided to categorize the inefficient regulations that affect both large companies and SMEs in the same field of business as “tangled regulations” and eliminate all of them. First, regulations obstructing automobile and shipbuilding businesses will be screened and brought to the ministerial meeting on regulation reforms chaired by President Park Geun-hye next month. It has been confirmed on Thursday that the public and private joint deregulation task force under the Prime Minister’s Office is proceeding with a plan to improve such regulations.

The Prime Minister’s Office has named the complex sets of regulations that affect all businesses in the same industry regardless of their sizes as “tangled regulations.” The concept refers to those regulations that are bigger than the “thorny individual regulations” affecting only SMEs and small business owners and smaller than the “comprehensive regulations” generally affecting every industry, such as regulations on the Seoul metropolitan area and those on business start-up. So far, easing thorny individual regulations has not been powerful enough to make people actually feel the change. On the other hand, fixing comprehensive regulations has often failed to reach a consensus due to sharp disagreement among stakeholders.

The task force has decided to eliminate “tangled regulations” in the automobile and shipbuilding industries. For instance, under the current law, businesses have to meet different criteria required by three different organizations to change the structure of an automobile. While the overall structural change is authorized by the Ministry of Land, Infrastructure and Transport according to the Automobile Management Act, car exhaust emissions and noises are regulated by the Ministry of Environment and the National Police Agency in accordance with the Clean Air Conservation Act and the Road Traffic Act, respectively. The task force intends to increase convenience for businesses by integrating or easing such regulations. The team plans to select unnecessary regulations related to the two industries, bring them to the ministerial meeting and embark on amendment procedures within the first half of this year.