24 th Meeting of the PCNC

1. 1 24th Meeting of the PCNC Presidential Council on National Competitiveness 2011Annual Work Plan January 19, 2011

2. 2 CONTENTS Ⅰ Key Activities in 2010 Ⅱ Policy Directions in 2011

3. 3 Ⅰ Key Activities in 2010

4. 4 PCNC meetings and follow-up measures ( 2010) 4meetings 11agendas 289tasks (‘08~’10) Follow-up measures: completed 65% of 1,430 Member proposals: completed 68% of 370 PCNC tasks : 1,430 Member proposals: 370 7 (289 in ’10) (55 in ’10) Reform PR Key tasks Bill on regulatory equity (Nov. ’10) Permission-in-principle licensing system Development of engineering industry 465 on-site business difficulties resolved Follow-up measures for traffic system advancement • PR on reform achievements • Article on Joongang Daily (Dec 10) • Ads on subways and papers (Nov-Dec) • Policy bulletin(2), leaflets (340 thousand) • Lectures to opinion leaders (26) • Operation of policy blog (Oct 26) • Reform Satisfaction Survery (KCCI): 26.8% (08) 38.9% (09) 41.6%(10) 3 3

5. 4 1. PCNC meetings and follow-up measures • 4 meetings in 2010, with 11 agendas and 289 tasks • * 23 meetings, 63 agendas, 1,430tasks since the establishment of PCNC • 370 (55 in 2010) policy proposals from PCNC members Member proposals PCNC Tasks • Completed 51 out of 55 proposals in ’10 • ( Completed 253 of 370 proposals in 08~10) • Completed 79 of 289 tasks in ’10 • (Completed 924 of 1,430 tasks in 08~10) 27% 38% 68% 65% Completed In progress Completed In progress

6. 6 2. Key activity areas (1) Regulatory reform to improve the business environment • Resolving business difficulties due to lack of discretion(reform equity) • -Submission of ‘Bill for resolving difficulties due to administrative regulations • and ensuring equity’ to the National Assembly (Nov ’10) • Introducing licensing system based on permission in principle • - Revision of 340+ laws including permit for private wholesale markets , mandatory permits for LPG sales, etc • Reforming entry regulations that limit competition • - Implement 21 entry regulation reform tasks including deregulation of registration for importing pesticides • Resolving on-site business difficulties • - Resolve 456 out of 559 tasks identified through 98 on-site visits

7. 7 (2) New growth engines and social capital • Promoting the engineering industry • - Increase export guarantee ceilings and lower fees (May ’10), establish engineering • graduate schools • Enhancing the efficiency of national road projects • - Strengthen traffic demand projection capacity (Jun ’10),revise national key transportation • network plans (roads↓, railroads↑) , etc • Promoting DMZ eco-tours • - Reduce restrictions regarding the civilian control line, form the Korea DMZ Council , formulate a • consolidated brand and PR materials , etc • Implementing follow-up measures for the traffic system advancement • - Ensure right-of-way principles, expand unprotected left turns, introduce turnabouts, etc

8. 8 <Case: traffic system advancement> • 3.5% increase in speed, 21.2%drop in traffic accident fatalities Measures Results • 11.3%reduction in traffic delays on 83 • key roads in Seoul and 6 major cities • 21.2%drop in traffic accident fatalities at • intersections • Right-of-way at intersections • - 72.4% complete as of Nov. 10 • Adjustment of designated lanes for trucks • *less than 1.5tons (lane 2→3), 1.5+ tons (lane 3→4) • Unprotected left turns: • * (Jul ’09) 5,402 (9.8%) → (Nov ’10) 16,284(29.4%) • PR: • * Brochures(100 thousand) and leaflets (3.3 million), • Info booths at public places incl. airports /stations (km/h) (sec/km) Jun ’09 Jun ’10

9. 9 • Development of the engineering industry Background Results • Promote mutual growth of related • industries through the development of • engineering capacity • - Ensure competitiveness from planning to • procurement and implementation • Establish engineering graduate schools • - Select 2 graduate schools during the first half • of ’11 • Establish R&D strategy for key areas • (Oct ’10) • - Secure key technologies for 15 strategic areas • Expand export financing and support system • - Increase export guarantee ceilings, establish • overseas contract support centers Measures • Secure key value-added core capacity • Foster an environment for the promotion • of the engineering industry • Expand foundation for export industry • Promote global engineering companies • - Foster an environment for domestic companies such as • Hyundai/Daewoo to become global engineering companies

10. (3) PR activities to increase public awareness • Customized PR for businesses and citizens • Joonang Dailyarticle‘Regulatory reform for competitiveness’(Dec 10), BBS Morning Journal interview (Dec 3) • Info booths at 12 major facilities including Seoul Station and IncheonAirport(Jul) • Ads on subways (lines 2~5), ads on free newspapers and webtoons(Nov~Dec) • Policy briefs (2), Activities of the PCNC(7,000 copies), PR leaflet(340 thousand) • Lectures on PCNC activities for opinion leaders(26) • * Key lectures - Businesses: Hyundai Motors(May 18), POSCO(Dec 1), - Regions: Busan CCI(Sep 3), • Incheon Management Forum (Nov 26) 등 • Internet PR and communications through a policy blog (Oct ’10) 10

11. < Case: On-site info booths> • Info booths on traffic system at 12 key facilities (Jul) Busan St. ICN airport • Info on licensing system added (Dec ’10),update of PR info (’11) 11

12. 3. Evaluation of year 2010 Activities • Increased visibility of regulatory reform • Continued improvement of business evaluations on regulatory reform Positive reply Negative reply Feb ’09 Feb ’10 Oct ’09 Nov ’10 Feb ’08 < Survey on regulatory reform: KCCI> < Survey on regulatory reform performance: FKI> • Need for more follow-up measures such as legislation • Only 3 out of 24 legislation tasks completed in ’10(13%) • *Extend temporary tax exemptions for unsold local housing, etc • Insufficient implementation of administrative measures incl. notices and standards (27%) 12

13. Ⅱ Policy Directions in 2011 13

14. “Advanced Global Nation" Future-oriented tasks and implementation Key reform tasks On-site PR activities Regulatory reform • Regular monitoring of the • implementation status of tasks • Monitor implementation status • Operation of an implementation • system for key tasks • - Steering group on negative regulations • * PCNC-Ministry of Gov. Legislation • Monthly monitoring of on-site • business difficulties • Improve the business environment • through regulatory reform • Revision of laws to achieve 5% growth • New growth engines/strengthen • economic capacity • Vocational education programs, • improve the value of forests • Secure social capital • *Advance basic administrative • infrastructure • Focus capacity on PR activities • Identify key reform achievements • Strengthen citizen-oriented PR • activities • Newspapers, subway ads, blogs, etc • On-site PR activities • * Expand on-site info booth contents 14

15. 1. Deregulation and reform tasks Improving the business environment through regulatory reform Revise laws to achieve 5% growth • Rapid implementation of institutional reform tasks to achieve growth and job creation • Prioritize identification and implementation of tasks that require revision of laws • Adopt a consolidated approach that encompasses similar tasks • - Complete revision by March and revise tasks that require consultations by June 3rd reform of entry regulations • Reform entry regulations that are closely linked with the citizens incl. health, medical services, broadcasting, and communications • Deregulate tourism industry registration standards, abolish conditional requirements for approval • and registration of communication business • * 1st and 2nd reform of entry regulations: reform LPG import registration standards, open credit • card delivery business to the private sector 15

16. On-site business difficulties • Diversify channels for identifying on-site business difficulties • Local CCICollaboration with industrial complexes, local associations • Monthly monitoring of implementation status for rapid improvements Improve land utilization • Prevent unplanned development near major cities to ensure proper land supply • Promote complexes for small and medium factories, and warehouses • Expand land for development by re-evaluating agricultural land based on • surrounding environment • - Utilize agricultural land for conservation to achieve multiple purposes incl. food supply and • absorbing greenhouse gases 16

17. New growth engines and strengthening economic capacity Vocational education system • Strengthen vocational education & training and improve work and study environment • Employment of intern contract programs for specialized high school students, employment-contract academic departments, etc • Establish a ‘VE strengthening steering group’ for promoting VET Attract global talents • Revise laws and regulations for attracting and supporting talented foreign students • Devise measures for attracting global talents incl. revision of visa systems • Formulate measures for minimizing brain drain and promoting repatriation 17

18. Collaborate with oversea Koreans Support the development of oversea Koreans as global citizens - Develop next generation oversea Korean leaders, support the growth of Korean businesses Strengthen oversea networks by sectors (trade, finance, science, etc) and expand interaction with Korea Improve the value of forests • Improve the value of forests, and expand user-oriented forest welfare and recreation services • Plant specialized trees to deal with climate change and promote forest healing programs by building forest convalescence facilities • Improve the competitiveness of the forestry industry incl. eco-friendly lumber and natural medicine 18

19. Securing social capital Revise administrative infrastructure • Introduce basic administrative zones that consolidate administrative districts • Improve the social acceptability of a new address system • Harmonize convenience and regional uniqueness of street-based address system, improve the • Romanization of addresses, etc • Enhancing the readability of road signs • -Revise road and facility oriented signs to a reflect the new address system Improving the competitiveness of Hangul • Promote the simplification of administrative terminology • Provide the ‘quick revision’ service for administrative terminology (Apr), expand support for the • simplification of terminology at administrative institutions • Implement the revision of the Romanization system of Korean and the Foreign Letters Spelling of Hangul • Romanization incl. romanization of last names, foreign letters spelling of Hangul (3 languages incl. Arabic) • Expand King Sejong Institutes (increase 10~20), and provide standardized education programs 19

20. 2. Implementation of key reform tasks Strengthen monitoring • Strengthen year-round implementation status monitoring system • Designate task implementation officers to monitor sectoraltasks’ implementation status • Hold quarterly task implementation review meetings for rapid implementation • Establish and operate an implementation monitoring system for key reform tasks • - Select key tasks incl. negative regulations, and resolving on-site business difficulties Implementation of key tasks • Establish and operate a Steering Group on Negative Regulations • Headed by PCNC-Ministry of Gov. Legislation, made up of Deputy Ministers from gov. ministries • * Monthly review of implementation status, public hearings on negative regulations, etc • Monitor the progress in resolving on-site business difficulties • - Conduct monthly reviews on the implementation status of resolving on-site business difficulties • by the Joint Public-Private Taskforce on Regulatory Reform 20

21. 3. On-site PR activities Focus capacity on PR activities • Focus on PR capacity to support the on-site implementation of key reform tasks • Foster an environment for the successful implementation of permission-in-principle licensing • * Identify cases and effects from negative regulations and provide information through webtoons • and policy briefs Strengthen citizen-oriented PR • Strengthen citizen-oriented PR efforts to inform the beneficiaries of reform • Newspaper articles, ads on subways and free newspapers, information leaflets, etc • Inform the public on PCNC activities and achievements through the internet incl. blogs On-site PR activities • Hold regional lectures and hearings to inform the public on regulatory reform • Hold lectures by PCNC Steering Group officials for regional opinion leaders • Strengthen on-site PR activities incl. the provision of information through info booths 21

22. Thank you