Gov't to lift 263 regulations, slash administrative fees

President Yoon Suk Yeol, right, serves meals to visitors at a soup kitchen in Myeong-dong, central Seoul, on Wednesday. [PRESIDENTIAL OFFICE]

The government will lift 263 types of regulations for two years and provide financial aid worth 42 trillion won ($31.1 billion) for small businesses, President Yoon Suk Yeol said Wednesday.

Administrative charges levied on services and goods will be slashed significantly, in the first ever major overhaul of the charging system.

The plan was announced during an emergency economic and public livelihood meeting held at the presidential office in Yongsan District, central Seoul.

“The overall economy is showing signs of recovery with the rebound in the semiconductor sector's pushing up exports and the employment rate's hitting record highs for 25 months in a row,” Yoon said in his remarks during the meeting.

The president further added that the government will “do our best to lessen the burden on livelihood and drive incomes by helping the warmth of economic recovery spread faster and therefore bring household economies fully back up.”

The latest reform of administrative charges follows Yoon’s comment on Jan. 16 that “administrative charges that are putting an excessive burden on the free economy should be boldly eliminated.”

The plan is to repeal 18 types of administrative charges, which are levied by the state authorities including local governments, for public purposes, including the 3 percent additional fee levied on movie tickets.

The government also aims to reduce 14 of the additional fees. The departure tax, for example, will be lowered from 11,000 won to 7,000 won, and the age threshold for charge exemption, currently two years old, will be extended to 12 years old.

Fees, in total, will be reduced by around 2 trillion won, the Ministry of Economy and Finance. The government expects to earn 24.6 trillion won from 91 types of administrative charges this year.

Furthermore, 263 regulations, especially those impacting small business and the self-employed, will be temporarily suspended for two years. For one, in cases where foreign workers leave their jobs without permission from the immigration authorities, the government employers will no longer penalize their former employers if they provide evidence that the workers were managed properly.

Yoon also promised financial support worth 42 trillion won to help small- and medium-sized enterprises.

In addition to the current 2.3 trillion won support package aimed at reducing the interest burden, banks will launch another 600 billion won program for small business owners.

Ahead of the meeting in the afternoon that day, Yoon visited a soup kitchen in Myeong-dong, central Seoul, to cook and serve meals for visitors.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]