1 26 th Meeting held by PCNC MOSF MOPAS MCST KME MW ME MLTM KCC FTC KCS PPS KOSTAT SMBA KIPO KMA...

1

26th Meeting held by PCNC

MOSF MOPAS MCST KME MW ME MLTM KCC

FTC KCS PPS KOSTAT SMBA KIPO KMA PCNC

3

Increased investment and employment through deregulation of industrial complexes

Relaxing entry regulations in the manufacturing sector resulted in increased investment. However, as the focus was mainly placed on the manufacturing sector, the service sector did not enjoy revitalization

PCNC focused its efforts on discovering and improving key regulations PCNC focused its efforts on discovering and improving key regulations having a great economical and social effect over the past 3 yrshaving a great economical and social effect over the past 3 yrs

An emphasis on revitalization of the service industry, promotion of convergence and development of new industries

Finding and resolving problems through on-site inspection, public meetings, consultation with business associations and relevant government agencies

The 26th meeting reflected various voices of the field in finding tasks The 26th meeting reflected various voices of the field in finding tasks with active participation of other government agencies with active participation of other government agencies

4

Focusing on easing entry and business regulations in the manufacturing sector

More and more businesses feel the regulatory reform take effect

The WB BEI went up 7 places,Particular improvement in processes of starting a business

Positive impact on the real economy evidenced by facilitated incorporation and increased business investment

Negative responsePositive response

Sentiment indicator for regulatory reformFKI Satisfaction rate on regulatory reformKORCHAM

23th

16th

Start-ups

Facility Investment

Number of start-ups recorded 60,000(60,312) for the first time since 2000Investment in facilities by 600 large companies posted an annual average of KRW 82.8 trillion for 3 years from 2008 to 2010 with an increase of 13.9% compared to the previous period

614 tasks have been found, 483 completed, 131 in progress

5

A review showed 76 tasks were not properly implemented due to delayed legislation, backlash from stakeholders and slow progress at the local governmental level

Giving permission to running a profit hospital in EFZ, allowing a company in Nature Preservation Region to build additional factories

Enforce legislation efforts and formulate subordinate statutes for immediate implementation after the passage of the law

[e.g.] Though the Ministry of Knowledge Economy allowed companies that met the standards on emitting pollution to build additional factories, the local government is reluctant to give permission due to a backlash from related civil groups

Delayed legislation in National Assembly : 43 casesDelayed legislation in National Assembly : 43 cases

Backlash from stakeholders, slow progress : 33 casesBacklash from stakeholders, slow progress : 33 cases

PCNC, Prime Minister’s Office and relevant ministries join forces to implement the tasks to the fullest extent through visiting and active PR.

6

Outdoor Restaurant

Foreigners-Only Downtown Duty Free Shop

Bigger Room for Local Animated Films

Private Participation in Public Sewerage System

Provision of Public Information ·DB to the Private Sector

Eased Requirements for WIG Craft License

Combination Products and Medicines

Data Processing Facilities and Cloud Service

R&D and Mentoring Support for one-person creative business

Promotion of Promotion of Service industry(18cases)Service industry(18cases)

Promotion of Promotion of Service industry(18cases)Service industry(18cases)

7

1.Promotion of Service Industry

Boost local economy and create jobs by attracting tourists

Give permission to restaurants in “Food Culture Road*” to run outdoor tables and other restaurants in a region designated by regional heads

Running a restaurant on the street is prohibited in Korea with an exception in hotels and Special Tourism Districts*

* 27 Special Tourism Districts in Itaewon, Jeju island, etc. as of Dec 2010

Induce tourists, create local jobs, secure markets for competitive SME products

Growing need for more downtown duty-free shops as the number of foreign tourists increases backed by Korean Wave

* Downtown duty-free shops in Korea(10): 6 in Seoul, 2 in Busan, 2 in Jeju Island

Introduce Foreigners-Only Downtown Duty Free Shop and make mandatory installment of a department for Korean products by SMEs

ExpectedExpectedEffectEffect

CurrentCurrent

Improve-Improve-mentment


CurrentCurrent


8

Only four terrestrial broadcasters such as KBS are required to provide spots for newly produced local animations

More PPs, including general PP and animation-specialized PP are required to provide spots for local animated films

A new demand for animations (of up to 315), creating 250 or more relevant jobs

Only broadcasters are allowed to have PPL in their programs

Adding to the existing broadcasters, outsourcing producers are allowed to have PPL in their programs

The market for PPL is expanded, and accordingly, the number of relevant jobs will increase

*As of the end of 2010, 44.5% of programs aired by terrestrial broadcasters are made by outsourcing producers; and the number of outsourcing producers is 1574

*It is estimated the market will grow to be worth 44 billion won in 2014



CurrentCurrent



CurrentCurrent


9

Inland logistics centers are allowed to accommodate assembly·processing facilities as much as 25% of the total area, excluding the area dedicated to logistics facilities, whereas manufacturing·sales facilities are prohibited from being located within the center. As a result, logistics centers located in non-metropolitan area are not fully utilized.

Inland logistics centers are allowed to house manufacturing·sales facilities and the proportion of the area permitted to accommodate other facilities than logistics facilities increases from 25% to 50%

More businesses related to manufacturing facilities are accommodated, creating jobs and enhancing utility rate of the centers

*As of the end of 2010, only 26%, 62% and 30% of area within inland logistics centers located in Chilgok,Jangseongand, Cheongwon are rented out respectively

*As of the end of 2010, each of seven inland logistics centers hires 750 employees on average

Port logistics complexes in four cities including Busan and Pyungtaek are allowed to house distribution·manufacturing facilities, but no residential·business facilities. Such regulations prohibit the complex from being fully utilized.

Port logistics complexes are allowed to accommodate residential(for employees)·business(finance, R&D, tourism) facilities

A business cluster formed within port logistics complexes leads to job creation

*As of the end of 2010, each of four port logistics complexes hires 650 employees on average



CurrentCurrent



CurrentCurrent


10

The government partly lifted regulations in the car rental industry by allowing the establishment of rental stations. However, such deregulatory measures were not successful in bringing about expected results

Allow car rental companies to establish branches

With the establishment of branches, the market will be expanded; and new services such as a one-way rental will be provided ,leading to job creation.

The public/private joint stockpiling project was introduced to commodity stockpiling business to deal with financial and efficiency issues of the public sector in August, 2010. However, no private investment has been made because of tariffs burden.

Reserve of Public Procurement Service located in Busan is designated as bonded area, withholding tariffs payment before clearance and encouraging participation from the private sector

balance supply and demand; stabilize price; create a new demand for logistics; and create jobs

*As of the end of 2010, 757 car rental companies are registered, hiring 15,000 people

*There will be a three-year grace period where existing small and medium-sized rental companies can establish electronic systems and set business standards.

*The public/private joint stockpiling project: Raw materials are purchased through private funds and stockpiled in reserves operated by Public Procurement



CurrentCurrent



CurrentCurrent


11

A foreign investor* is considering Marina development in coastal areas of the southern sea. However, a private contract** is banned for the state-owned land designated under the Fishing Villages and Fishery Harbor Act.

A private contract is allowed even for the state-owned land created under the Fishing Villages and Fishery Harbor Act

The improvement measure can attract foreign investment of up to $130 billion and create 300 or more jobs

*Florida Marina Development, an American company is discussing with Geoje city a development plan of marina at Port of Jisepo

Public sewerage system consists of treatment plant and pipe network. Only treatment system has been partially operated in trust since 1995.

Allow contracting out for the overall process of sewerage system

Reduce operation cost utilizing cutting-edge technology and high skilled manpower, create new jobs and advance into the global arena

*According to Foreign Investment Promotion Act, a private contract is allowed even for the state-owned land if the land was created under the five legislations including the State Property Act and the Urban Development Act



CurrentCurrent



CurrentCurrent


12

A dental technician has to get designation from a dentist to open a laboratory and it is acting as an entry barrier in the industry

Abolish the current regulation on dentist’s designation as professionally trained dental technicians are turned out in great numbers

Opening new laboratories will provide more job opportunities for graduates from Dental Laboratory Schools and delivery service providers of dental products

* Among 26,000 dental technician licensees, 15,000 are working in the dental technology field(about 58%)



CurrentCurrent


13

CurrentCurrent ImprovementImprovement

Geospatial Geospatial informationinformation

By 2013, the size of relevant market is expected to grow by 700 billion won, By 2013, the size of relevant market is expected to grow by 700 billion won, creating 5,000 new jobscreating 5,000 new jobs

2D-based geospatial information

Relevant organizations decide whether to provide information at the individual request

provide high resolution 3D-based map service

Immediate access to information via web (end of 2011)

*The map of Seoul city and areas surrounding four major rivers will be provided in 2012; and the map of the whole nation will be available by 2015.

Public information is provided at the individual request, leading to limited access from industries in the private sector

Make more public information available; and offer one-stop information service by setting up a database

Up until 2013, the size of relevant market will grow by 1.3 trillion won, including weather information service market, creating 13000 new jobs


Real estate Real estate informationinformation

By 2013, the size of relevant market will grow by 300 million won, By 2013, the size of relevant market will grow by 300 million won, creating 5,700 new jobscreating 5,700 new jobs

18 types of information are available in the form of certificate, including cadastral map and Registered building data, etc

Collective information is available in the form of database and provided to the public



CurrentCurrent


14


Weather Weather Information Information

By 2013, the size of relevant market is expected to grow by 100 billion won, By 2013, the size of relevant market is expected to grow by 100 billion won, creating 360 new jobscreating 360 new jobs

Only observation data of KMAis availableRelevant organizations and some of private businesses have access to the data

Information gathered by 26 organizations, including the MLTM and the ME is made available by 2012All private businesses and the public have access to the data

Patent Patent InformationInformation

By 2013, the size of relevant market is expected to grow by 55 billion won, By 2013, the size of relevant market is expected to grow by 55 billion won, creating 460 new jobscreating 460 new jobs

Among 357 types of patent information, 85 are commercializable

Provide 20 types more information that are commercializable* 6 types in 2011, 14 types in 2012

Statistics Statistics InformationInformation

By 2013, the size of relevant market is expected to grow by 110 billion won, By 2013, the size of relevant market is expected to grow by 110 billion won, creating 1,700 new jobscreating 1,700 new jobs

Provide 38 types of microdata

Additional provision of 155 kindsmicrodata* 61 types by 2013, 94 tyeps by 2014

** Provide analysis service

* Simple download only

Provide 9 types of SGIC

Offer addition 9 types of SGIS by 2013


15

It is hard for domestic WIG craft manufacturers to satisfy requirements of the domestic passenger shipping license because ,to obtain the license, the gross tonnage of vessels of a manufacturer has to be more than 100 ton.

Considering the passenger capacity of a WIG craft which is three times the capacity of a vessel, the requirements on the gross tonnage will be reasonably adjusted[e.g. 30 ton]

WIG craft industry will grow and create new jobs

In case of developing and producing combination products, medical device manufacturers will be able to purchase medicines

Increased investment in combination product will create new jobs and promote the medical device industry

Medical device manufacturers are not allowed to buy medicines from pharmaceutical companies, having difficulties in producing medical device combination products

* As of the end of 2010, the volume of medical device industry stands at 3.6 trillion won with 2,168 companies** [e.g.] antibiotics-loaded antibacterial bone cement for artificial joints

2.Convergence and New Industry


CurrentCurrent



CurrentCurrent


16

When such entities as retail payment companies, consumer groups, etc. use cloud service, they are exempted from the duty stipulated in individual legislations with respect to equipment of data processing facilities

The cost for purchase and maintenance of data processing facilities is reduced by 50%

A business operator’s responsibility to equip the place of business with data processing facilities under the individual statutes such as the Information and Communications Network Act does not reflect the current computing environment of cloud service

* 10 legislations include Information and Communications Network Act, Framework Act on Consumers



CurrentCurrent


17

It is unclear whether a joint venture is one-person creative business

Clearly state that a joint venture is in the category of one-person creative business

One-person creative businessOne-person creative business

One-person creative business has a difficulty in directly receiving R&D funds

One-person creative business will be subject to R&D funds of about 2 billion won in 2012

Mentoring programs utilizing retirees in the field of technology and management is provided to a business with five or more employees, excluding one-person creative business

Provide mentoring programs to one-person creative business to help them to focus on core values

The number of one-person creative business in 2010 was 240,000 and it will increase to 300,000 by 2013


CurrentCurrent


CurrentCurrent


CurrentCurrent



18

Amendment to the law should take place within this year and enforcement decree ∙ enforcement ruleshould be prepared in advance before the passage of the law

Take follow up measures such as improving related laws Take follow up measures such as improving related laws to maximize the effect of regulatory reformto maximize the effect of regulatory reform

Reinforce legislation efforts to pass the pending law

Take active actions Take active actions to see the tasks to see the tasks fully implementedfully implemented

Make sure that the tasks take firm root in the field through active promotion and site visiting

Reflect voices from the field such as local governments, state-owned companies, private enterprises when developing regulatory reform tasks

Make Make semestral semestral Report on ways to deal with issues that involve multiple Report on ways to deal with issues that involve multiple government departments government departments with with a great economic effecta great economic effect

Focus on the areas conducive to job creation and administrative convergence

19

Detailed tasksDetailed tasks Ministry Ministry In ChargeIn Charge ScheduleSchedule

Promotion of Service IndustryPromotion of Service Industry

Permit operation of outdoor restaurant

Expand broadcasting of local animations

Introduce Foreigners-Only Downtown Duty Free Shop

Allow PPL to outsourcing producers

Inland logistics center to accommodate manufacturing · sales facilities

Port logistics complex to accommodate housing·business facilities

Allow car rental companies to run the franchise

Encourage private participation in commodity stockpiling business

Allow rrivate contract for state-owned land for Marina development

Encourage private participation in public sewerage system

Lift regulation on dental laboratory and designation from dentists

MW

KCC

KCS

KCC

MLTM

MLTM

MLTM

PPS

MKE

ME

MW

’11. Nov

’11. Oct

’11. Dec

’11. Oct

’11. Dec

’11. Oct

’11. Dec

’11. Nov

’12. Jun

’11. Oct

’11. Dec

20

Detailed tasksDetailed tasks Ministry Ministry in Chargein Charge ScheduleSchedule

Convergence and New IndustryConvergence and New Industry

Provision of Public Informationand DB to the Private Sector

Geospatial information : High resolution 3D map

Weather information : collective information from 26 agencies

Real estate information : 18 types of information in one DB

Patent information : 20 types of patent information which can be utilized by the private sector

Statistics information : statistics microdata

MLTM

KMA

MLTM

KIPO

KOSTAT

’12. Dec

’12. Dec

’12. Dec

’12. Dec

’12. Dec

Ease requirements on gross tonnage when licensing a WIG craft

Cloud service and data processing facilities

Allow Purchase of medicines when producing combination products

Acknowledge a joint venture as one-person creative business

More opportunity for state-run R&D

Mentoring program for one-person creative business

MLTM

KCC

MW

MKE

SMBA

SMBA

’11. Nov

’12. Dec

’12. Dec

‘11. Sep

’12. Dec

’11. Dec

21

Regulation Reform is Regulation Reform is a driving force for Job Creation!a driving force for Job Creation!

1 26 th Meeting held by PCNC MOSF MOPAS MCST KME MW ME MLTM KCC FTC KCS PPS KOSTAT SMBA KIPO KMA...

Documents

Transcript of 1 26 th Meeting held by PCNC MOSF MOPAS MCST KME MW ME MLTM KCC FTC KCS PPS KOSTAT SMBA KIPO KMA...