Outdated and unreasonable regulations that are disconnected from the realities of the field not only threaten the survival of individual companies but also undermine the growth potential of the national economy. Conversely, when long-standing regulatory knots are decisively untangled, the economic ripple effects for the market can be unexpectedly broad and immediate. In particular, removing the 'shadow regulations' that hundreds of large public institutions have traditionally kept hidden can dramatically transform the industrial ecosystem and reinvigorate the economy.
The regulations imposed by public institutions operate under a frightening 'multiplication law.' Imagine our small businesses have tirelessly researched and created the fastest and most impressive 'high-end sports car (innovative technology)' and successfully filled it with 'premium fuel (investment capital).' Now, if they are ready to speed down the highway but find the tollgate firmly closed, what happens? As long as the barrier is at '0,' no matter how high-performing the car and fuel are, the distance they can travel remains '0.'
In the additive world we live in, a slight deficiency can be compensated for by other advantages. However, the harsh business ecosystem operates under a multiplicative framework. Even if innovative ideas, outstanding technology, and hard-earned capital score a perfect 100, receiving a score of 0 at the single gate of 'unreasonable regulation' results in a final outcome of nothing.
This structure has been a wall of despair that has led many small businesses to give up on new challenges. However, through this extensive regulatory overhaul, we have finally opened that closed barrier. By turning the constant of despair represented by regulation into a positive, the long-stalled innovation engine of small businesses has begun to roar back to life.
The Korea Gas Safety Corporation boldly abolished stringent outlet location regulations that were strictly applied to liquefied hydrogen charging stations. As a result, related companies immediately saved over 10 million won in unnecessary additional inspection costs and significantly shortened the previously delayed deployment period for hydrogen charging stations.
The Korea Environmental Corporation expanded the testing and inspection cost reductions previously granted only to companies in the Daegu Water Industry Cluster to all small businesses nationwide. This alleviated the financial burden of environmental research and development (R&D) costs for approximately 3,800 projects, greatly lowering the threshold for technology development.
Many institutions, including the Korea Gas Corporation, broke the practice of demanding defect repair guarantees of 5-10%, which exceeded the legal standard of 3%, and reduced it to 3%. Just this one action by the gas corporation allowed partner small businesses to secure 2.2 billion won in cash flow, easing their financial pressures.
The Busan Port Authority adjusted its guidelines, which required prior approval if a resident company received external investment that changed its equity stake by just 5%, raising the threshold to 10%. This measure significantly enhances the funding flexibility for venture and startup companies in a rapidly changing investment environment.
When the pathways for companies blocked by regulatory barriers are opened, the benefits do not remain confined to a single business. The costs and time saved through regulatory relief directly lead to the development of new innovative technologies and the hiring of young talent. This becomes a powerful driving force for a dynamic 'fountain effect' that lifts the entire nation, going beyond the simple 'trickle-down effect' that waits for large corporations to act. The collaboration between the public and private sectors to dismantle outdated regulations is essential for regaining lost economic vitality.
Identifying and reforming the tangled regulations of large public institutions is no easy task. I extend my gratitude to the Ministry of Economy and Finance and various public institutions for willingly relinquishing their administrative conveniences and extending a hand of 'coexistence' to small businesses. The discovery of hidden regulations should not be a one-time event. The Ombudsman will continuously spread this successful model to other institutions and government departments. I am committed to being at the forefront of regulatory innovation so that our businesses can truly thrive and the heart of South Korea can beat once again.
* This article has been translated by AI.
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