Korea announces deregulation measures in new business sectors

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok. [Photo by Yonhap]

The South Korean government on Wednesday announced a series of deregulation measures to boost new business sectors, including the designation of additional locations for outdoor advertisements.

The government unveiled measures during a meeting of economy-related ministers as part of the government’s efforts to ease regulations on new industries and resolve on-site challenges.

This is the second set of on-site regulatory improvement measures, following the first one released in March 2024.

Under the plan, the government will designate the third phase of free outdoor advertising zones in 2026 as part of efforts to promote the digital signage industry.

“We will quickly expand the number of free outdoor advertising zones, where digital billboards can be freely installed, from the current four, to create a Korean version of Times Square,” Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok said during the meeting.

Digital signage refers to outdoor advertisements using digital information displays (DID), which can be controlled from a control center via a communication network. These advertisements appear as moving screens on building exteriors.

The first free advertising zone was designated in COEX in southern Seoul in 2016. Myeongdong and Gwanghwamun Square in central Seoul, and Haeundae in Busan were named as the second phase locations in 2023.

The government has not yet determined the location and number of the third-phase zones, but the expansion of these zones is expected to help not only foster display technology but also improve the chronic deficit in the country’s travel balance by promoting outdoor advertising as local landmarks to attract tourists.

The government will also relax the minimum license standards for corporate taxis to alleviate the business difficulties of the taxi industry, which is suffering from a shortage of drivers.

Currently, taxi service operators have their business licenses revoked if they do not meet the minimum standards of 50 units in Seoul and Busan, 30 in metropolitan cities, and 10 in counties.

To protect lodging operators who have exercised sufficient caution, the government will amend the relevant law in the second half of this year to include immunity clauses for administrative penalties.

Currently, there are no immunity clauses for penalties such as fines imposed on hotel operators when underage mixed-gender stays are detected due to fake or stolen IDs.

Furthermore, the government will extend the temporary operation permit period for test and research autonomous vehicles from the current 5 years to a maximum of 9 years to promote new industries.

It plans to improve the production process of precise road maps, which are essential for autonomous driving, and open 2D and 3D road maps to the private sector.

According to the Ministry of Economy and Finance, in the meantime, Korea ranked 20th out of 38 countries in the Organization for Economic Cooperation and Development (OECD) in the 2023 Product Market Regulation (PMR) Index announced by the organization on Wednesday, achieving its highest ranking ever.

The country ranked 33rd in the previous evaluation in 2018.

Korea ranked high in categories such as regulatory impact assessment (3rd) and administrative and regulatory burden (14th), but lower in categories like business activity intervention (36th) and trade and investment barriers (36th).