South Korea to further deregulate service industry
19/9/2008 16:47
The South Korean government announced to promote further deregulation in
the nation's broadcasting, telecom and service industry in a bid to spur
economic growth and enhance corporate competitiveness, the Korea Herald reported
today.
"We will complete consultations with concerned ministries and submit
related bills to the National Assembly for approval by the end of this year,"
said Koo Bon-jin, director general of the Finance Ministry's Policy Coordination
Bureau.
"By deregulating the service industry, we aim to facilitate corporate
investment and improve services for people," he added.
During the meeting
convened by South Korean president Lee Myung- bak yesterday, the Ministry of
Strategy and Finance confirmed its plan to permit large businesses, newspaper
publishers and foreign investors having greater ownership of satellite, digital
and cable broadcasters.
The government said that it is also in favor of
easing regulation regarding building and expanding factories in Seoul and
satellite cites.
Moreover, the government said those without certificate will
be able to run specialty service businesses such as hospitals, pharmacies, law
firms and accountancy firms by employing professionals in those fields, after
the approval.
The government added that it will allow corporations more
leeway in overseas bond transaction and remove restriction on the amount of
overseas funds raised by their foreign branches.
It also announced that
telecom operators will not be required to contribute to a government fund for
research and development by 2013, and a market-dominating operator will be free
from government restriction on setting service charges.
However, some experts
expressed skepticism about the government 's announcement for the service
sectors.
Some experts expressed skepticism about the government's plans for
the service sector.
Samsung Economic Research Institute, the country's major
think tank, said it will be difficult to solve the chronic problem of nation's
service account deficit through the deregulation plan because it excludes
measures on education and tourism, which are the two most important factors of
the service shortfall.
Korea Development Institute, another major think tank,
said the government's plans are pretty much clouded by negative developments, as
the global economy is slowing with the global credit crunch and the US subprime
mortgage crisis.
Xinhua
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