Only 6 out of 146 regulatory reform bills passed by legislature

In a recent analysis of the 146 innovative bills aimed at ensuring public stability and economic vitality through regulatory reforms, only six bills have successfully passed the National Assembly. The analysis found that nine out of ten bills have been stuck in the legislature for an average 333 days after proposal. Despite President Yoon Seok Yeol's four-month-long drive for "killer regulation reform," a significant number of crucial reform bills are languishing in the legislature, raising concerns about the adverse impact on businesses and citizens.

According to findings obtained by The Dong-A Ilbo on the comprehensive review of the "Regulatory Innovation Legislative Tasks" from the government policy coordination office, under the Prime Minister's Office, only a meager 4.1% or six bills out of the proposed 146 have made it through the National Assembly's plenary session. The average duration these bills spent in the legislature before they were passed was 499 days, with the longest-delayed bill, aimed at simplifying claims for personal health insurance, taking a staggering 1,162 days from initial proposal to passage. Despite the policy coordination office’s efforts to expedite key regulatory reform bills through separate management, even those bills are struggling to overcome parliamentary hurdles in a timely manner.

Even the flagship initiative of the Yoon Seok Yeol administration, the amendment to the Distribution Industry Development Act, labeled as "Regulatory Reform Task No. 1," has been stalled at the standing committee stage for over 1,200 days due to a lack of consensus between ruling and opposition parties. Out of the 140 bills that failed to pass the National Assembly, only 15 have been submitted to the Legislation and Judiciary Committee. Approximately 80%, or 125 bills, remain stalled at the standing committee level, casting doubt on their chances of approval by year-end.

Notably, many bills designed to lay the foundation for new industries and encourage innovation by dismantling regulatory barriers are still stagnant. Even seemingly non-controversial bills such as the "Partial Amendment Act on the International Movement of Genetically Modified Organisms," which addresses the technology of editing genetic sequences for the production of seeds or therapeutics, and laws related to the metaverse and artificial intelligence, face sluggish discussions despite marginal partisan conflicts.

Crucial bills concerning people's livelihoods, such as the amendment to the Housing Act that centers around abolishing the obligation for actual residence in pre-sale housing announced in August last year, are also stuck at the standing committee stage. "To secure growth momentum in such circumstances in the current situation of intertwined inflation and economic downturn, regulatory reform is essential," said Professor Seong Tae-yoon at Yonsei University's Department of Economics, urging both ruling and opposition parties to engage more actively in negotiations.


Lee Sae Saem iamsam@donga.com