South Korea Revamps Regulatory Framework After 28 Years

Seoul, South Korea - The government held the inaugural meeting of the newly restructured Regulatory Rationalization Committee on April 15, chaired by the President, marking the first major overhaul of the country's regulatory framework in 28 years.

The committee, formerly known as the Regulatory Reform Committee, operates under the amended Basic Act on Administrative Regulations, which took effect on February 19, 2026.

The restructuring elevates the chairmanship from the Prime Minister to the President and increases the membership limit from a maximum of 25 to 50.

Three civilian vice-chair positions were established to oversee newly designated subcommittees focused on growth, livelihood, and regional affairs.

During the meeting, the committee introduced a structural reform plan aimed at shifting to a negative regulation system, which would permit corporate activities by default and manage necessary restrictions retroactively.

The plan includes deploying an AI-based regulatory navigator to consolidate data and issuing a directive to reduce administrative paperwork for early-stage startups by more than 50 percent.

Officials also outlined a Mega Special Zone initiative intended to support regional development and national strategic industries.

The designated regions would operate under three tiers of regulatory exemptions: pre-approved exemptions, regulatory suspensions initiated at the corporate or local government level, and regulatory sandboxes for large-scale technology testing.

The zones would be supported by a seven-part policy package covering finance, taxes, infrastructure, and institutional support.

The government detailed initial Mega Special Zone frameworks for four sectors: robotics, renewable energy, biotechnology, and autonomous vehicles powered by artificial intelligence.

To formalize the initiative and its regulatory exemptions, the administration plans to enact the Mega Special Zone Special Act in the National Assembly by the end of 2026.