The Lee Jae-myung government will comprehensively improve regulations that obstruct the transformation to artificial intelligence (AI). The government plans to switch to a 'negative regulation' approach, allowing everything except prohibited actions, and to simplify the procedures for utilizing and analyzing public data. At the same time, it will lower the severity of economic penalties to alleviate corporations' criminal liabilities.
On the 22nd, the Ministry of Economy and Finance announced the 'New Government Economic Growth Strategy' containing this information. Deputy Minister Yoon In-dae noted, "We will improve all regulations related to AI transformation and leading projects in the super-innovation economy," adding that "we will thoroughly review regulations based on the size of corporations and rationalize excessive economic penalties."
◇ Multi-layered regulatory easing... Boosting corporate innovation
The government plans to transition existing laws to negative regulations focusing on the nation's core new industries. Currently, our law allows only what is explicitly stated in legislation, which limits corporations' innovation, so it will shift to a negative mechanism where only prohibited actions are restricted. The government plans to conduct a future investigation into laws to make this transition to negative legislation and establish post-management measures.
Specific regulatory easing measures mention improving procedures for new industries such as data, autonomous driving, and biohealth when utilizing and analyzing public data. Currently, private corporations must use closed networks in privacy assurance zones to access de-identified personal data held by public institutions. The government plans to increase the number of privacy assurance zones, which currently exist in only five locations nationwide, and to change the closed networks to a cloud-based system.
Additionally, it will mandate that legal adjustments be completed before the expiration of temporary permits for approved regulatory sandbox projects. Shadow regulations (regulations that hinder corporate activities without clear legal grounds, often implemented through local government ordinances) will also be eliminated.
The introduction of 'mega special zones' that broadly loosen regulations is being pursued. The aim is to provide incentives to foster regional specialized strategic industries. However, details regarding which regions will be designated as mega special zones and whether the regulation easing period will be temporary or permanent have not yet been finalized.
Moreover, to resolve conflicts between new and old industries, such as that of the mobility platform 'Tada' and the taxi industry, the role of the Regulatory Reform Committee will be expanded. It will mediate disagreements arising throughout the regulatory sandbox process and resolve conflicts related to entry regulations. A cooperation system will be established between the central and local governments to prevent double regulations and share information.
◇ Easing penalties to prevent economic activity decline
In addition to easing regulations, the government will also lower economic penalties themselves. It will alleviate criminal liabilities for well-meaning business owners while strengthening civil and monetary liabilities. Plans are also in place to improve the embezzlement law that has hindered corporations.
This month, the government formed a task force (TF) led by the Ministry of Economy and Finance and the Ministry of Justice to rationalize economic penalties. The TF is discussing which legal violations' penalties should be changed from existing imprisonment and fines to penalty surcharges and fines. The government plans to prioritize announcing practical lead projects by early next month and submit them to the regular National Assembly session. The second phase of projects is to be selected by the end of the year, aiming for passage in the first half of next year.
The penalty provisions for economic crimes that small and medium-sized enterprises, small business owners, and citizens may commit will also be targets for improvement by the TF. The government plans to change 30% of economic penalty regulations across all ministries from imprisonment and fines to penalty surcharges and fines within one year.
However, serious crimes that may jeopardize life and safety or malicious unfair transactions such as stock manipulation will be exceptions. Kim Gi-ryong, Director of Policy Coordination at the Ministry of Finance, said, "We will swiftly roll out tasks related to the improvement of embezzlement law and rationalization of penalties."