The South Korean government announced to promote further deregulation in the nation's broadcasting, telecom and service industry in a bid to spur economic growth and enhance corporate competitiveness, the Korea Herald reported Friday.
"We will complete consultations with concerned ministries and submit related bills to the National Assembly for approval by the end of this year," said Koo Bon-jin, director general of the Finance Ministry's Policy Coordination Bureau.
"By deregulating the service industry, we aim to facilitate corporate investment and improve services for people," he added.
During the meeting convened by South Korean president Lee Myung-bak on Thursday, the Ministry of Strategy and Finance confirmed its plan to permit large businesses, newspaper publishers and foreign investors having greater ownership of satellite, digital and cable broadcasters.
The government said that it is also in favor of easing regulation regarding building and expanding factories in Seoul andsatellite cites.
Moreover, the government said those without certificate will beable to run specialty service businesses such as hospitals, pharmacies, law firms and accountancy firms by employing professionals in those fields, after the approval.
The government added that it will allow corporations more leeway in overseas bond transaction and remove restriction on the amount of overseas funds raised by their foreign branches.
It also announced that telecom operators will not be required to contribute to a government fund for research and development by2013, and a market-dominating operator will be free from government restriction on setting service charges.
However, some experts expressed skepticism about the government's announcement for the service sectors.
Some experts expressed skepticism about the government's plans for the service sector.
Samsung Economic Research Institute, the country's major think tank, said it will be difficult to solve the chronic problem of nation's service account deficit through the deregulation plan because it excludes measures on education and tourism, which are the two most important factors of the service shortfall.
Korea Development Institute, another major think tank, said the government's plans are pretty much clouded by negative developments, as the global economy is slowing with the global credit crunch and the U.
sub prime mortgage crisis.