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2010 Work Plan

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< 2nd Regulatory Reform Service Award>

Contents

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Key Key TasksTasksKey Key

TasksTasks

VisionVisionVisionVision

•Improving public sector efficiency

•Establishing a foundation for social trusts

•Establishing socio-economic systems based on honesty

•Establishing Global Korea Network

•Building an Open Korea

•Participating in the M&A market

•Expanding global activities

•Developing new growth engine industries

•Expanding R&D investment

•Expanding job training & sharing

•Promoting the service industry

•Regulatory reform

•Tax cuts

•Limiting asset deflation

•Supporting SMEs and households

•Improving financial soundness

•Improving labor relations

•Ensuring rule of law

•Corporate restructuring

•Fiscal expansion

Strengthening competitiveness for a new economic paradigm

TargetTargetTargetTarget ExpandingDomestic Demand

Maintaining Current Account

Surplus

Strengthening Economic Potential

20092009 Economic Policy DirectionsEconomic Policy Directions

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1. Key Activities of PCNC1. Key Activities of PCNC

Enhancing productivity of agriculture, construction, and traditional liquor industryPromoting franchise, beauty service industryMaintaining high-quality human resources by revising nationality laws and improving the intellectual property system, etc.

Expanding growth enginesExpanding growth engines

Reorganizing traffic signal systemsPromoting Hangeul through Sejong project, encouraging online civil affairs administrationReforming overlapping imposition of fines/surcharges

Expanding social capitalExpanding social capital

Improving business environmentImproving business environment

Improving entry regulations restricting competition, sunset clauses for regulationsImproving efficiency of military facility management & relocation, non-tax payment system improvementImproving technology regulation & resolving on-site business difficulties, etc.

10 council meetings held in 10 council meetings held in ’’09, 25 agendas presented09, 25 agendas presented

25 of 110 tasks completed in ’09

(54% of ’08~’09 legislation tasks completed)

Administrative tasksAdministrative tasks

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672 follow-up measures for ’09 agendas (110 legislative, 529 administrative)

: As of Nov., 25%(168) tasks completed → approx. 42% completion by the end of the year

48% of ‘08~’09 follow-up measures (1,107) completed

→ 62% completed by the end of the year

Legislation tasksLegislation tasks

Overall StatusOverall Status

131 of 529 ’09 tasks completed (48% of

’08~’09 administrative tasks completed)

Follow-up measuresFollow-up measures

Improving satisfaction level on regulatory reforms(Federation of Korean Industry survey,

’09.8)

→ Corporate satisfaction level on regulation reforms 27% (‘09.2) → 49% (‘09.8)

Practical reform for recovery from the economic crisisPractical reform for recovery from the economic crisis

Satisfaction level on current

government’s regulation reform

performance

Satisfaction level on on-site

corporate issues improvement

2. Key Achievements2. Key Achievements

Expanding sunset clauses for regulations Expanding sunset clauses for regulations : reviewing the need for all regulations (4,000 cases)

* Sunset clauses set for 119 private sector proposals, 558 economic regulations, 3,400

administrative regulations

Resolving on-site business difficulties Resolving on-site business difficulties : enhancing adaptability of regulatory reform (559 cases)

* Improving 559 of 785 tasks discovered through 30 local site visits, 59 business meetings

• Improving competition restricting regulationsImproving competition restricting regulations : Improving 26 of 60 entry regulations

in need of quick improvement * Allowing credit card delivery service to private delivery company, establishing housing

guarantee requisites and process (completed in 09)

Improving efficiency in military facility management & relocationImproving efficiency in military facility management & relocation : simplification of military facility relocation process, removal or alleviation of protection area

* Removal of 4.04 mil ㎢ military facility protection area including Camp Page (Chuncheon)

• Revising non-tax payment regulationsRevising non-tax payment regulations : adjusting non-tax payment deduction rate,

promoting abolishment of non-tax payments, etc. * Measures to abolish or adjust non-tax payment regulations (e.g. non-tax payment

exemption for development)

Improving business environmentImproving business environment

Advancing construction industry Advancing construction industry : strengthening competitiveness and productivity of

construction industry * Improving ordering system and pilot projects in progress

Strengthening competitiveness of traditional liquor industryStrengthening competitiveness of traditional liquor industry : promoting

globalization and quality improvements * Selecting 5 major brands such as makgeolli, darae wine, etc.

Advanced nation in intellectual propertyAdvanced nation in intellectual property : strengthening intellectual property creation

& economic/industry use * Revising technology transfer promotion law, academia-industry cooperation promotion law,

etc. for regulation reforms Improving franchise industryImproving franchise industry : supporting small businesses through franchise

establishment * Establishing 「 Franchise Academy 」 (’09.11~), and internet portals

Developing beauty industryDeveloping beauty industry : supporting improvement and advancement of beauty

industry * Reflecting franchise support, public sanitation management law into KRW650 million ’10

budget Improving competitiveness in agricultural sectorImproving competitiveness in agricultural sector : Expanding investment support and

resolving agricultural business difficulties * Enactment of agricultural business support law, establishment of agribusiness service

centers (9 centers)

Expanding growth engineExpanding growth engine

Improving civil affairsImproving civil affairs : reduction of petitions due to online service (<3.6 million cases

yearly) * Expanding 300 cases of online civil affairs

Expanding information collaborative use (71 cases → 81 cases)

Seal impression certificate system reform Seal impression certificate system reform : providing alternative methods and

ultimately system abolishment within five years * Reducing 120 cases of affairs requiring seal impression (57% of 209 cases)

Rationalization of fine/surchargeRationalization of fine/surcharge : improving overlapping punishments and imposition

standards * Providing standards for abolishing unnecessary or overlapping fine/surcharge cases

Promoting use and competitiveness of Hangeul Promoting use and competitiveness of Hangeul : globalization of Hangeul * Establishing Sejong Project Committee (advisory organization), Romanization Assessment

Team, etc.

Advancing traffic signal systemAdvancing traffic signal system : improving traffic flow and reducing accidents

< Ref. : Advancing traffic signal system task results & future plans >

Expanding social capitalExpanding social capital

<<Ref.Ref. :: Advancing traffic signal system Advancing traffic signal system task results &task results & future future

plans>plans>

8.3% reduction of fatal intersection accidents during ‘09.7~10 (Y-on-Y)

Improvement in traveling speed in 8 major cities: 32.5km/h(1Q) →

34.1km/h(3Q)

Allowing holiday parking in 470 sites(244.3km) (palace, religious facility, park area etc.)

Expanding holiday/nighttime flash signal operations (‘09 20,002 sites, +150% increase compared to ‘09.7)

Expanding left turns at your own risk (‘09 11,319 sites, +116% increase compared to ‘09.7)

Installing pedestrian operative signals (‘09 3,607 sites, +180% increase compared to ‘09.7)

Enforcing right-side walking in public facilities (90.6% Improvement in guidance facility ‘09.10)

Solving traffic inconvenience by Installing traffic island, improving intersection, etc,

* Samsung Station, Kangnam, Songpa Gaelong Geunlin Park (Seoul)/ Tangjin, Choongnam / Sunchun Jeonnam

Task results Task results

Ref. : Improvement cases Ref. : Improvement cases

Frequent congestion and accidents due to unique road structure

Installment of

roundabout

Pedestrian inconvenience and congestion due to large intersection roads

Installment of 2 way crosswalk and traffic island

Tangjin, Chungnam

Kangnam, Seoul

Pamphlets (500,000 copies to National Police Agency & 100,000 copies to MLTM), posters, video production/distribution, etc.Operating collaborative PR with private companies (i.e. financial institutions)

* Agricultural Cooperative Federation – PCNC PR MOU contract(‘09. 6)

* Joint production of right-side walking PR poster/banner with BBQ, Shinhan & Busan Savings Bank (’09.9)Promoting PR tour for local government & citizen participation

* 6 Provincial presentation including

Gyeonggi·Chungcheong·Honam·Gangwon·Gyeongbuk·Gyeongnam area (’09.11~12)

Public RelationsPublic Relations

Chungcheong presentation (11.24, Taejon Local Police Agency)

Gyeonggi presentation(12.3, Gyeonggi Local Police Agency)

Focusing on 5 major tasks including establishing straight drive priority principle (’10.1~)

* Left turn at your own risk, roundabouts, designated driveway, etc.Systemic Implementation through divided efforts by central and local government

* Central : ① Budget support → advancing traffic system model city business: ’10~’11, national expense

KRW30 bn ② Enhancing traffic petition handling system → reviewing establishment of separate institution for multiple petition

handling ③ Readjustment of laws → revising road traffic laws * Local : ① Collecting resident opinions → forming public-private collaborative institution & managing local traffic

forum ② Training workforce → expanding employment of traffic experts (traffic signals, road

constructions, etc.) ③ Establishing traffic DB → utilizing for the improvement in areas of frequent

accidentsPromoting traffic culture improvement initiatives through active PR & education

* Producing car stickers (distribute to police cars, commercial/public vehicles first) and

brochures (Local government) * Strengthening youth traffic safety education / driver license education

Future Plans Future Plans

Ref. : Car sticker examples Ref. : Car sticker examples

3. Remaining Tasks and Future 3. Remaining Tasks and Future Implementation PlanImplementation Plan

8 of 21 legislative tasks (livestock law, etc.) passed to the National Assembly pending in ’09

Improvement in completion rate(33%) in internal administrative tasks

Improving business environmentImproving business environment : application of sunset clauses for 2,800 social regulations, adjusting key non-tax payment rates, reforming laws to support civil rights

Expanding growth engineExpanding growth engine: alleviating construction industry regulations, revising liquor tax law to deregulate traditional liquor, abolishing finance restrictions on agricultural businesses, etc.

Expanding social capitalExpanding social capital: introducing alternative methods to seal impression (abolition in long-term), romanization of Hangeul and compiling new Korean dictionary, etc.

Remaining TasksRemaining Tasks

Future Implementation PlanFuture Implementation Plan

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1. Implementation Tasks1. Implementation Tasks

Strengthening competitiveness & expanding growth engines

- Utilizing DMZ as tourism resource, advancing medical/tourism industry - Promoting elderly-care industry, improvement schemes for industry-academia

collaboration, etc.

Improving on-site business difficulties prohibiting investment & minimizing

regulatory harm

- Strengthening private-public regulatory reform working group

- Implementing individual relief system and improving 2nd~3rd entry regulations, etc.

Stepping stone for the advancement to a first class Stepping stone for the advancement to a first class nationnation

Enhancing business environmentEnhancing business environment

Expanding growth engineExpanding growth engine

Expanding social capitalExpanding social capital

Improving trust-based regulations for citizens

- Improving postal codes, address systems, funeral culture, etc. - Advancing life-time education system, improving government organization and personnel

Proposals from council members → reflecting creative ideas on reform tasks

Opportunities for council members to participate and present agenda → implementation in ‘10

* (ex) Council member proposed tasks → assistance from the working group (tuning & consultation)

→ council member proposal draft → report

2. PCNC Operation2. PCNC Operation

Long-term review and presentation of council tasks & status on follow-up measures

* Reporting improvement plans and follow-up measures focusing on tasks that need continuous management (i.e. advancing traffic signal system, improving efficiency in military facility relocation & management, improving entry regulation, etc.)

Establishing evaluation system for council task results and activities

* Measuring national competitiveness and effects of task by survey, expert appraisals, and country comparisons

Encouraging participation of council membersEncouraging participation of council members

Strengthening management including reviews on Strengthening management including reviews on the status of follow-up measuresthe status of follow-up measures

< 2nd< 2nd Regulatory Reform Service Regulatory Reform Service AwardAward >>

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Nomination : Nominations received from 5 economic groups

Review : Selection of candidates through public service history reviews by a private-sector

panel

Selection result : 5 Institution Awards (2 Presidential Awards, 3 Prime Minister Awards)

20 Civil Servant Awards (2 Medal of Honors, 6 Order of Merits, 6 Presidential Awards, 6 Prime Minister

Awards) 5 Economic Group Member Awards (2 President Awards, 3 Prime Minister Awards)

Selection processSelection process

Those who have contributed significantly to on-site regulatory reform for business

Those who have contributed significantly to the improvement of public service

Those who have contributed significantly to the local economy through

investment promotion, etc.

Selection criteriaSelection criteria

1.1. OverviewOverview

Fostering atmosphere to ‘serve citizens’ by improving public servant awareness

5 economic group members (5 awards) included for this year’s award

BackgroundBackground

Overcame shortcomings by aggressively serving companies : on-site resolution of

problems even for small companies - Established private-public regulatory T/F, appointed regulatory reform promoter, etc. - Developed ‘Business love movement’

Strategy/effortStrategy/effort

Key AchievementsKey Achievements

Reluctant corporate investment because of its characteristic (Inland, non-capital

area)

Business environmentBusiness environment

Institution achievement case(1)Institution achievement case(1) : Gyeongsang : Gyeongsang bukdobukdo

Proposing improvements on 335 irrational government regulation (204 cases

reflected)

On-site resolution of 500 civil petition cases → leadership in zeroing business problems

Construction of Kumi LG Display ‘win-win’ bridge - Difficulties in supply transfers because of the separation of factories by 6 lane road in

between → resolved problems by constructing connection bridge with administrative/financial support,

and the company showed appreciation by naming it ‘win-win Bridge’

2. Key outstanding achievements2. Key outstanding achievements

Promoted ‘on-site visiting resolution’ - Managed company SOS team, mandated company experience (175 companies) to city hall

public- servants (609 personnel) - Resolved 1,300 on-site problems (e.g. factory construction support, entry road

improvements, etc.)

Strategy/effortStrategy/effort

Key AchievementsKey Achievements

Business environment centered around small companies - 85% of companies consisting of 10 or less employees (total 2,783 companies)

Business environmentBusiness environment

Institution achievement case(2)Institution achievement case(2) : Pocheon, : Pocheon, GyeonggidoGyeonggido

Resolved factory construction restrictions by adjusting management area - Changed conservation management area to planning management area, expanded building-

to-land ratio within the area → possible factory construction of 31 companies (nation wide)

Improved obsolete infrastructure (e.g. installation of factory entry roads) - Supported road facility improvements for export container car entry(11 sites) → benefited

193 ex/import companies

Busan Chamber of Commerce and Industry EmployeeBusan Chamber of Commerce and Industry Employee

Conducted zero-base study on regulations

→ 30 deregulatory measures for the Seoul Metropolitan Area, 20 temporary deregulation measures

Operated ‘Deregulation On-Site T/F’ → Site visit to Paju LCD factory for resolving environmental, construction, land regulations

→ Deregulations for Gwangmyoung Sohari Kia factory improvement

Gyeonggi Provincial Government EmployeeGyeonggi Provincial Government Employee

Public servant achievement casePublic servant achievement case

Resolved business problems of imported raw materials (KRW 10 bn) caused by the delays in customs

→ Induced customs by explaining the change of China’s import environment → proposed revisions in related laws by taking company opinions into account

Allowed participation of smaller companies during the local administrative institution’s furniture bidding

→ By lowing the standards for participation, resulted in 35% of small furniture companies’ winning

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Thank Thank youyou