Administrative and regulatory reform of Korea in a time of national crisis

Abstract

Korea has undertaken all-out efforts to reform its economy and government to be ready for the new era of global competition and overcome the current economic crisis. Public sector reform seeks to liberalize the market economy by removing unnecessary government interventions in the private sector. The realization of the “four S's” - a small but strong government with the smarts to manage future uncertainties and a sensitivity to the people's needs - is the ultimate vision for the public sector reform. Regulatory reform calls for at least fifty percent of all government regulations eliminated by the end of 1998 and the rest of the regulations improved based on a set of rational principles. One key aspect of regulatory reform is focused on removing barriers to foreign direct investment. Epochal changes in the public sector including governmental regulations are expected to bring Korea up to global standards for business competition and government performance.