[Editorial] One Door, Push or Pull? A Ridiculous Web of Regulations

The 139 cases included in the KCCI's Regulatory Rationalization Tasks submitted to the government reveal the reality of Korea's regulatory front lines. A prime example is the entrance door to a high-pressure gas storage facility. Companies are struggling over whether the door should open by pulling or pushing. To comply with safety rules, the door should be a pull door so that gas can be contained in the event of a leak.
But industrial safety regulations say the opposite. To help workers evacuate quickly in an emergency, the door must be a push door. Companies that installed pull doors to comply with high-pressure gas rules reportedly faced criticism during industrial safety inspections and were told they would have to replace dozens of doors. Will the government simply stand by while businesses are punished for following one law only to be found in violation of another? There are plenty of other absurd regulations like this on the ground.
Warehouse leasing rules inside industrial parks are just as baffling. One company in a local industrial park saw orders rise and ran out of space to store products, so it tried to lease an idle factory inside the park as a warehouse. But it was blocked by a rule requiring manufacturing facilities to be expanded if warehouse space is increased. As a result, it could not use vacant space within the park and had no choice but to rely on an external logistics facility. It is astonishing that such contradictory rules are still in force. Companies are asking for temporary leasing to be allowed at least during peak seasons or when export volumes surge.
Outdated regulations are also found everywhere. Under the Commercial Act, notices for a General Meeting of Shareholders must, in principle, be sent in writing by mail, and electronic notice is allowed only with prior shareholder consent. But because it is difficult to obtain consent from each shareholder, most notices are still sent by mail. As a result, listed companies in Korea are said to send 100 million sheets of paper notices for annual shareholder meetings every year. Is it really that difficult to record email addresses in shareholder registers and allow electronic notices as a rule?
If institutions fail to keep up with reality, industrial productivity will fall, and so will economic vitality and overall national efficiency. Calls to improve these backward, outdated regulations have been endless. Yet the authorities have not moved fast enough, even though they should have fought these out-of-date rules as if at war. The system has even been designed to pile on more regulatory shackles as companies grow larger, sapping their willingness to expand. Over the past 20 years, nine out of 10 leading U.S. companies have changed. In Korea, the same companies have remained in place for 20 years. Many see this as the result of size-based discrimination and progressive regulation, which have weakened corporate dynamism.
President Lee Jae-myung has said he will shift toward negative regulation and completely overhaul the regulatory reform system. The launch of the Regulatory Rationalization Committee also signaled a major policy shift. The key is speed and implementation. The 139 issues raised by the KCCI must also be reviewed carefully and handled quickly. Conflicting rules should be unified without bureaucratic silos, and common standards should be established promptly. Complacent administration creates unnecessary regulations and increases costs and burdens for companies. Change is also urgently needed on the front lines of government. Bold reform is necessary so that businesses can feel the difference on the ground.