2024-05-01 11:36:36
‘Regulatory innovation’ is just lip service to the government and politicians
Local government regulations, 39,487 → 40,164 cases
Among 226 cities, counties and districts, there was a decrease in regulations in ‘0 places.’
Central ministries also increased by 4.2% to 47,640 cases.
Although regulatory innovation is a key national task of the current government, it was found that among the 226 basic local governments across the country, not a single one has seen a decrease in regulations since the launch of the current government. The total amount of regulation not only by local governments but also by the central government increased by more than 4%. Although the government and politicians are calling for regulatory innovation, it is still limited to slogans, and it is pointed out that the ruling and opposition parties should actively participate in regulatory innovation in the new National Assembly formed after the general election.
As a result of a joint analysis by Dong-A Ilbo on the 30th with Yonsei University Professor Jeong-wook Lee and Soon-man Hong, a joint research team, and CG Inside, an artificial intelligence (AI)-based data solution company, the total number of regulations by local governments was counted at 40,164 at the end of last year. It increased by 1.7% from the end of May 2022 (39,487 cases) immediately after the inauguration of this government. In particular, among the 226 local governments nationwide, the total number of ordinances and rules has not decreased since the launch of this government. There were 21 local governments where the total number of ordinances and rules increased by more than 5%. This amounts to approximately 10% of all local governments.
The number of regulations in 43 central ministries, including government ministries and committees, also increased by 4.2% from 45,720 to 47,640 over the same period. The Ministry of Land, Infrastructure and Transport saw the largest increase in the number of regulations under its jurisdiction, increasing by 189 (2.8%) to 6,966. Regulations by the Ministry of Employment and Labor (7.2%), the Financial Services Commission (4.4%), and the Ministry of Agriculture, Food and Rural Affairs (3.8%) also increased significantly.
The ‘regulatory age’, which refers to the period of time maintained after the introduction of regulations, was nearly twice that of central local governments in local governments. The regulatory age of central ministries was 6.9 years, and that of basic local governments was 13.2 years. As the policy environment changes, regulations must continue to change, but local governments are relatively lacking in efforts to achieve this compared to central ministries, and sometimes even revisions to laws are not properly reflected in local regulations.
Lee Jeong-wook, professor of public administration at Yonsei University (director of the National Management Research Institute at Yonsei University), said, “Both the government and politicians outwardly call for regulatory innovation, but the ability and effort to make it a reality are greatly lacking,” adding, “The ruling party’s pledge to ‘advance regulatory management’ in this general election is also lacking. “It shows the perception that regulatory reform so far has not been sufficient,” he said. Even at the first meeting between President Yoon Seok-yeol and Democratic Party leader Lee Jae-myung on the 29th of last month, regulatory innovation was not included in the agenda. There are voices saying that going forward, the ruling and opposition parties need to actively discuss resolving regulations that hinder companies and citizens.
40,164 local government regulations… I don’t even know they have the authority to lift regulations on ‘early morning delivery’
[정부-지자체 규제 다 늘었다]
Basic organizations “banned by Gangwon-do ordinance”
Gangwon-do: “It’s not possible because of government regulations”… Government “authority to release regulations to basic organizations”
Local governments are passive in easing even if laws are revised… ‘Shadow regulation’ through notices and ordinances is also produced.
“I understand that it is not possible due to Gangwon-do ordinance.” An official from a basic local government in the Gangwon region recently responded as follows to a question from a Dong-A Ilbo reporter asking why early morning delivery from large supermarkets is not possible in the region. I checked with Gangwon-do, but a provincial official said, “There is no such ordinance. “I understand that early morning delivery is not possible due to government regulations,” he said. But the central government’s words were different. An official from the Ministry of Trade, Industry and Energy said, “There is a provision in the law that says ‘heads of local governments can regulate,’ so in reality, it is the authority of heads of local governments.”
This is a clear example of why local government regulatory reform is difficult. In reality, local governments have quite a few regulations, but they do not recognize them as their authority in the field, and as a result, they inevitably lack the will to improve excessive regulations. Even if the central government improves upper-level laws, there are many cases where it is not reflected in the lower-level regulations actually applied in local areas, and local governments often create confusion for businesses and residents with their own regulations. It is pointed out that in order for regulatory reform to be felt, improvement work must be carried out simultaneously not only at the central government level but also at the local government level.
● Even if higher-level laws change, local governments continue to regulate
Domestic retailers have continuously requested that early morning delivery regulations be lifted for offline stores across the country. They want to launch an early morning delivery service in small and medium-sized cities by using offline stores operating throughout the country as logistics centers, but they are hindered by regulations that prohibit large supermarkets from conducting business or conducting distribution and logistics work during the early morning hours.
Under current laws, local governments must step forward to resolve this problem. The Distribution Industry Development Act only stipulates that “mayors, county governors, district heads, etc. may restrict the business hours of large supermarkets from 0:00 to 10:00 a.m.” but does not enforce restrictions on business hours. Regulations can be relaxed as much as necessary at the discretion of the heads of local governments. However, currently, there is not a single local government that has enabled early morning delivery service. An official in the distribution industry pointed out, “Early morning delivery service is possible as soon as the local government decides, but the field is not even aware of this.”
Even though the higher-level laws that form the basis for local regulations have changed, there are many cases where local governments are passive in easing regulations. A small business in Gangwon-do paid 5.48 million won in exchange for permission to occupy land in a small river area in 2022. As land prices soared, occupancy fees increased by 8.3% compared to a year ago. However, this did not reflect the amendment to the law that stipulated that small river occupancy fees should not be increased by more than 5% from the previous year. Local governments have recently begun to relax regulations only after receiving such criticism from the central government. An official from the Ministry of SMEs and Startups explained, “Because occupancy fees are levied every year, the cost burden on small and medium-sized businesses and small business owners is considerable, but many local governments did not properly reflect revisions to higher-level laws in their ordinances, so we have corrected this.”
● Mass production of various ‘shadow regulations’ such as notices and ordinances
Confusion sometimes arises in the field due to ordinances made by local governments themselves rather than based on the laws of the central government. Recently, the Gyeonggi Provincial Council passed an ordinance related to ‘Creating a school without disposable products’, mandating that all schools in the region investigate and disclose the use of disposable products every year. Then, protests erupted from kindergartens, elementary, middle and high schools in the area, asking, “Do we have to record the purchase details every time we buy a paper cup?” Then, the Gyeonggi Provincial Office of Education came up with a compromise plan to greatly simplify the submission of disposable product purchase details and re-announced it.
In the field, there are complaints that various ordinances of local governments that are not based on laws or notices that are divorced from the purpose of the laws, or ‘shadow regulations’, are making it more difficult for companies. Because these hidden regulations are not covered by the central government, local government regulations often do not disappear even when government departments improve their laws.
Hong Soon-man, a professor of public administration at Yonsei University, said, “As in the case of the business hours of large supermarkets, the regulatory authority of local governments is quite large, and there are also a lot of ‘shadow regulations’ held by local governments, such as directives and regulations, etc.” “We need to reduce regulations that cause inconvenience to businesses and residents, even by using regulatory guidance,” he said. Kim Tae-yoon, a professor of public administration at Hanyang University, pointed out, “Some local governments are creating confusion by creating regulations without a sense of balance. We also need to look into whether some regulations are excessive regulations that undermine the purpose of higher-level laws.” .
Sejong = Reporter Kim Do-hyung [email protected]
Sejong = Reporter Lee Ho [email protected]
2024-05-01 11:36:36