Vice Chair Park Yong-jin of the Regulatory Rationalization Committee is a former two-term lawmaker. During his time in the Assembly, he was sometimes called a "Samsung sniper." That was thanks to proposing the so-called "Samsung Life Insurance law," which would value Samsung affiliates' shares held by Samsung Life Insurance at market price instead of acquisition price to cap holdings. He has now returned as a helper to unwind regulations that shackle corporations.
Park was interviewed by ChosunBiz at the Government Complex Seoul on the 17th. He said, "The Samsung Life Insurance law was not to shackle corporations but to call out chaebol heads and owners who don't play by the rules," adding, "Owners may dislike me, but shareholders, investors, and workers at corporations have no reason at all to worry about me."
Park went on, "I keep asking the question, 'Other countries allow it, so why can't Korea?,'" and said, "Korea is not a country without technology, so we are looking for things that aren't done properly because of regulation."
◇ "We need to scrap Autonomous Driving regulations to nurture startups and create unicorns"
Park flagged the "T+2" issue—trade proceeds arriving two business days later—as a "regulation found only in Korea." In the domestic stock market, payments are settled two business days (T+2) after the trade date (T). It takes two days from selling a stock to receiving actual cash. Recently, many overseas markets have shortened the period to "T+1." Park said, "Why do we still keep a system built for paper-based settlement when we now solve problems at the speed of light?" and added, "The United States is doing it, and there's no reason we can't. We can listen to the securities industry and find a way."
Park also said the abortion pill "Mifegyn" is a "regulation found only in Korea." He said, "More than 100 countries, including OECD members, allow it, but we don't," adding, "The Ministry of Food and Drug Safety says legislation should come first, but it is not for the ministry to leave victims or drug misuse unaddressed due to gaps in the law." He continued, "The drug's safety has already been verified, so the ministry should either lift what is bound by administrative regulation or find a way."
Park stressed that regulatory reform should open the way for innovative industries to grow. He said, "If you go to China, you see thousands of Autonomous Driving cars moving around and even in marketplaces they run without any problems, but in Korea they are confined to designated routes and only late at night when there are no people." He added, "If we don't lay the groundwork for Autonomous Driving now, we may have to shut the door in two to three years. We need to help startups grow further and become unicorn corporations."
◇ "Regulations like traffic lights that keep people safe are necessary… We will mediate conflicts on the ground"
The Regulatory Rationalization Committee is the former Regulatory Reform Committee, renamed under the Lee Jae-myung administration with its chair elevated from the prime minister to the president. It officially launched on Feb. 19.
Park said, "Unnecessary regulations should be eliminated, but reasonable regulations that, like traffic lights, keep everyone safe are necessary," adding, "To protect market stability and help corporate growth, regulation must be simple and clear." He added, "That is why we put the word 'rationalization' in the committee's name."
Park appeared busy preparing to fully activate the Regulatory Rationalization Committee. He said, "We will soon announce the appointment of civilian members, and there will be a public meeting presided over by President Lee Jae-myung," adding, "We will operate in three subcommittees—growth, livelihoods, and regions."
As a politician tasked with regulatory reform, Park said he would focus on visiting the field to mediate conflicts. He said, "In the past (as a lawmaker), the three kindergarten bills were pushed through by meeting private kindergarten stakeholders and compromising, compromising, and compromising," adding, "Even if criticized, producing results is the role of politics and administration, so we will ensure innovative industries are not brought down by turf wars."