ID :
49933
Tue, 03/10/2009 - 21:12
Auther :
Shortlink :
https://www.oananews.org//node/49933
The shortlink copeid
(LEAD) Gov't to ease service sector regulations: official
SEOUL, March 10 (Yonhap) -- The government will take positive steps to ease unnecessary administrative regulations in the service sector to fuel economic growth and increase jobs, a finance ministry official said Tuesday.
Koo Bon-jin, head of policy coordination at the Ministry of Strategy and Finance,
said in a Korea Chamber of Commerce and Industry (KCCI) meeting that Seoul will
adjust tax and other rules governing the service sector to be on par with
benefits given to the manufacturing businesses.
"In the past, the government had been oriented to help manufacturers, but in the
future, changes will be made that can meet the demands of service sector
companies," he told businessmen.
The official said that in particular, efforts will be made to ease red tape in
education and medical services to help create new jobs in sectors that can become
new growth engines for the country.
"Both these areas have been looked at exclusively in terms of providing public
services that have effectively hindered growth, although this will change with
the government implementing sweeping changes," Koo said.
He added that there has been little foreign investment in these fields because of
such limitations, despite some efforts by Seoul to relax oversight and control in
the country's free economic zones and on Jeju Island.
In the medical service area, the official said changes can be implemented to
allow hospitals and clinics to operate as "profit organizations," crucial to
attracting investment.
Under existing laws, all medical facilities are classified as non-profit
organizations.
On education, he said measures are being worked out to permit repatriation of
earnings that have been stalled by debate in parliament.
South Korea is expected to post negative 2 percent growth this year in the face
of the global economic slump that is sapping business investment, consumption and
exports.
The service sector is important because it has created most of the new jobs
following the 1997-98 Asian financial crisis and can also help reduce the
country's dependence on overseas trade for economic growth.
Roughly 70 percent of South Korea's gross domestic product is related to trade,
with exports making up 40 percent.
The official, meanwhile, said that the government is looking to build up MICE
businesses that are fast becoming a new source of growth in the service sector.
MICE refers to package services connecting meetings, incentive travel,
conventions and exhibitions.
Related to the government's latest efforts to deregulate restrictions, businesses
executives, academics and business umbrella groups called for clear policy
directives.
"Existing red tape has effectively hurt the country's competitiveness in the
service sector," said a researcher at KCCI. He stressed that just as the
government helped manufacturers in the 1980s, similar measures are needed now.
Others said that if Seoul shows clear commitment to make changes, there may be
little need for state funds since the private sector would be able to take the
lead in building value-added businesses.
yonngong@yna.co.kr
(END)
Koo Bon-jin, head of policy coordination at the Ministry of Strategy and Finance,
said in a Korea Chamber of Commerce and Industry (KCCI) meeting that Seoul will
adjust tax and other rules governing the service sector to be on par with
benefits given to the manufacturing businesses.
"In the past, the government had been oriented to help manufacturers, but in the
future, changes will be made that can meet the demands of service sector
companies," he told businessmen.
The official said that in particular, efforts will be made to ease red tape in
education and medical services to help create new jobs in sectors that can become
new growth engines for the country.
"Both these areas have been looked at exclusively in terms of providing public
services that have effectively hindered growth, although this will change with
the government implementing sweeping changes," Koo said.
He added that there has been little foreign investment in these fields because of
such limitations, despite some efforts by Seoul to relax oversight and control in
the country's free economic zones and on Jeju Island.
In the medical service area, the official said changes can be implemented to
allow hospitals and clinics to operate as "profit organizations," crucial to
attracting investment.
Under existing laws, all medical facilities are classified as non-profit
organizations.
On education, he said measures are being worked out to permit repatriation of
earnings that have been stalled by debate in parliament.
South Korea is expected to post negative 2 percent growth this year in the face
of the global economic slump that is sapping business investment, consumption and
exports.
The service sector is important because it has created most of the new jobs
following the 1997-98 Asian financial crisis and can also help reduce the
country's dependence on overseas trade for economic growth.
Roughly 70 percent of South Korea's gross domestic product is related to trade,
with exports making up 40 percent.
The official, meanwhile, said that the government is looking to build up MICE
businesses that are fast becoming a new source of growth in the service sector.
MICE refers to package services connecting meetings, incentive travel,
conventions and exhibitions.
Related to the government's latest efforts to deregulate restrictions, businesses
executives, academics and business umbrella groups called for clear policy
directives.
"Existing red tape has effectively hurt the country's competitiveness in the
service sector," said a researcher at KCCI. He stressed that just as the
government helped manufacturers in the 1980s, similar measures are needed now.
Others said that if Seoul shows clear commitment to make changes, there may be
little need for state funds since the private sector would be able to take the
lead in building value-added businesses.
yonngong@yna.co.kr
(END)
