1. April 29 2008 Amman, Jordan DoHoon KIM Senior Research Fellow Korea Institute for Industrial Economics and Trade

2. I Historical Review of Regulatory Reform Committee Major Vocations of RRC Reviews of Regulations Composition of the RRC II III IV Major Achievements Made by RRC V

3. I. Historical Review of Regulatory Reform Committee Korea was suffering from Asian Financial Crisis Korea was forced to undertake tough reform packages recommended by IMF and others such as financial sector reform, corporate restructuring, labor market reform and public sector reform Regulatory reform was regarded as an important part of those reform packages Enabled the RRC to continue to play its full-scale role under three different governments since its establishment 1 Established in 1998 Established in 1998 Based upon the Basic Act on Administrative Regulations Based upon the Basic Act on Administrative Regulations

4. As a result, from 1998 to 2002, the number of regulations was reduced by more than 50% (out of 11,125, 5,998 were removed and 2,981 were rationalized) I. Historical Review of Regulatory Reform Committee At its start, the RRC put its full effort into reducing the existing At its start, the RRC put its full effort into reducing the existing number of regulations number of regulations At its start, the RRC put its full effort into reducing the existing At its start, the RRC put its full effort into reducing the existing number of regulations number of regulations Since 2002, the RRC re-oriented its policy focus towards Since 2002, the RRC re-oriented its policy focus towards improving regulatory environments improving regulatory environments Since 2002, the RRC re-oriented its policy focus towards Since 2002, the RRC re-oriented its policy focus towards improving regulatory environments improving regulatory environments 2

5. Setting the basic direction of regulatory policy Evaluating existing regulations, drafting and executing regulatory reform plan Obtaining and responding to public opinions on regulatory improvement Reviewing new and amended (strengthened) regulations Monitoring and evaluating the regulatory improvement efforts of regulatory bodies Promoting and advocating regulatory reform to government bodies as well as to the public II. Major Vocations of RRC 3

6. Regulatory bodies should provide following elements to the RRC -necessity of introducing new regulations or of amending existing ones -examining alternatives to regulatory proposals -consultation with other relevant administrative bodies -publicizing regulatory impact analysis Collecting opinions of affected interested parties Collecting opinions of other relevant administrative bodies III. How are Reviews of Regulations Undergone through RRC? Phase 1 : Introduction of Regulations Phase 1 : Introduction of Regulations Phase 2 : RRC's First Action Phase 2 : RRC's First Action 4

7. appropriateness of regulatory objectives regulatory impact on citizens and business Regulatory bodies are forced to reflect the results of RRC's review before submitting the final draft to the parliament Regulatory bodies should register regulations to the RRC within 30 days after their proclamation III. Reviews of Regulations: continued Phase 3 : Review by RRC Phase 3 : Review by RRC Phase 4 : Legislative Procedure Phase 4 : Legislative Procedure Phase 5 : Registration of Regulations Phase 5 : Registration of Regulations 5

8. 6 ministers: Minister of Strategy and Finance, Minister of Public Administrations and Security, Minister of Knowledge Economy, Minister of the Office of Prime Minister, Chairman of Korea Fair Trade Commission, Minister of Government Legislation 8 professors 4 business representatives 4 representatives of the press and NGOs 1 lawyer IV. Composition of the RRC Co-chaired by the prime minister and a private-sector expert Co-chaired by the prime minister and a private-sector expert Members : 23 persons Members : 23 persons 6

9. Sub-committee on economy 1: to review regulatory proposals from 12 regulatory bodies including the ministry of strategy and finance Sub-committee on economy 2: to review regulatory proposals from 8 regulatory bodies including the ministry for food, agriculture, forest and fisheries Sub-committee on administrative and social affairs: to review regulatory proposals from 20 regulatory bodies including the ministry of education, science and technology IV. Composition of the RRC: continued 3 Sub-committees for intensive review meetings 3 Sub-committees for intensive review meetings 7

10. Conducted a Comprehensive Regulatory Reform through a Quantitative Approach under Kim Dai Jung Government Continues to Review New and Amended Regulations Promotes and Advocates the Importance of Regulatory Reform Introduced the Regulatory Impact Analysis Participated in International Regulatory Meetings Actively V. Major Achievements Made by RRC 8