Gov't to ease service-sector regulation for better competitiveness

SEOUL, May 8 (Yonhap) -- The South Korean government said Friday that it will
ease regulations and expand support for the service sector as part of efforts to
enhance its competitiveness and fuel overall economic growth.

In an earlier meeting chaired by President Lee Myung-bak, the government selected
a total of nine areas in the service sector where efforts will be focused to lift
unnecessary red tap and bolster competition. Medical care, education,
broadcasting, design and logistical service are among the selected ones.
"We have come to a consensus that the service industry is a key sector that will
help us get over the current crisis and strengthen our growth fundamentals for
the post-crisis era," the government said in a statement.
Medical and education service areas are among the top priorities.
On the medical service sector, the government said that it will ease rules to
accelerate the entry of foreign hospitals in free economic zones in a bid to
attract overseas investment and bolster competition by bringing in advanced
medical technologies.
Separately, the government added it plans to allow non-profit entities running
medical institutes to raise capital by issuing bonds, helping them diversify
their borrowing sources and securing money at low borrowing costs.
Under the current law, hospitals can tap only into their own capital or bank
loans, making it tough for them to pay for big-ticket equipment and other
expenses. Related bills are pending in parliament and the government aims to pass
them by the end of June.
On education, the government said it will streamline regulations on the
establishment of elementary and middle schools in free economic zones, while
inducing renowned foreign universities to open their doors here through
deregulation.
South Korea is expected to post negative growth for the first time in more than a
decade this year in the face of the global economic slump that is sapping
business investment, consumption and exports.
The service sector is deemed to have been critical in creating new jobs following
the 1997-98 Asian financial crisis and can also help reduce the country's
dependence on overseas trade for economic growth.
"The service sector accounts for most job creation and has the potential to
reduce our excessive external dependence by boosting domestic demand," the
government said. "Despite our efforts to develop the local service sector, its
competitiveness remains still weak??? We will continue efforts to advance the
sector and strengthen our growth potential."
kokobj@yna.co.kr
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