Questions/Answers

○ The quality of regulations(systems) is crucial to the degree that it can determine national competitiveness and the quality of people’s everyday lives. The Korean government has tirelessly implemented regulatory reform for over 20 years. However, the general public, a stakeholder in regulations weakening the visibility of reform outcomes and the public’s evaluation of regulatory reform. The “performance of regulatory reforms” recognized by the public and the “public perceptions” towards reforms therefore became major talking points within the government. ○ The Korean government concluded that the voice of the people should lead the direction of regulatory reforms to effectively address policy tasks. The policy authorities accordingly set out to create a public participation platform to engage the public in regulatory reform. They eventually devised a sustainable and practical policy program requiring only a small budget by shifting the regulatory reform governance framework from a top-down to a bottom-up approach. ○ That program is the Regulatory Reform Sinmungo where any citizen can air regulatory complaints and grievances, recommend improvements, and receive answers from the government via its official website (www.sinmungo.go.kr). The initiative aims at resolving public inconveniences caused by unreasonable and inequitable regulations by rendering highly accessible, transparent, effective, and equitable administrative services. ○ The initiative focused its function primarily on making the voices of the socially disadvantaged such as women and workers and the economically marginalized such as farmers and small business owners heard by the government and thereby resolving regulatory bottlenecks. ○ The efforts to achieve these objectives helped the initiative receive the Korea Policy of the Year Award for Serving the People(2018) and positive recognition by the OECD and other foreign entities as a successful policy. It is of great significance in that the system is an outcome of reforms carried out by the public through public participation.

The Regulatory Reform Sinmungo has contributed to “establishing effective and accountable public institutions.” First, it enhances accessibility to information. Physically, the Regulatory Reform Sinmungo website was developed to be accessed anytime, anywhere. The content, suggestions, status, and answers can be read by everyone. Second, it encourages public participation. The initiative is operated exclusively based on people’s suggestions (19,760 suggestions submitted and handled from 2014 to October 2019). Third, it improves accountability of public institutions. Unreasonable regulations, once identified, undergo a phased resolution process through collaboration among the government agencies concerned, the Prime Minister’s Office (PMO), and expert groups.

○ The initiative is aligned with all SDGs because it is intended to rectify unreasonable regulations in all areas. For instance, regulatory improvement for gender equality is associated with Goal 5; and tightening regulations on the environment relates to Goal 13. The following primarily concern Goal 8 and 16. ○ Goal 8 aims at sustainable economic growth. These are traditional goals of regulatory reform. The initiative has strived to create new opportunities for subsistence farmers and small business owners. Regulations have recently been improved to allow floricultural distribution centers to be set up in four regions. This deregulation is expected to increase the incomes of 2,000 floricultural farmers by four times and to create quality farm jobs. ○ Goal 16 aims at ensuring access to justice and building accountable, inclusive institutions at all levels. While Goal 8 is the primary objective of our regulatory reform, Goal 16 represents the unique characteristics and ultimate goals of the initiative: public participation, transparent and responsive decision-making processes. To that end, the avenue for public participation was expanded to include the Internet while requesting answers from the government has become an explicit right. 4,125 regulations were improved(as of October 2019) through such engagement.

(1) The initiative established socially meaningful governance. The stakeholder-driven policymaking and communication efforts led to a positive response from the public, the most powerful driving force. (2)It brings massive economic benefits with only a small investment. The annual system operating costs stand at KRW 100 million while the aforementioned floricultural centers, for example, are expected to generate transactions worth about KRW 50 billion by 2030. (3)Transformational leadership was instrumental in an environmental context. Regulatory governance took a bottom-up approach, and the vision of regulatory reform through public participation has become an organizational value. Awareness training and legislation have been conducted.

○ The initiative maximized accessibility to public suggestion. Residents in remote areas and women or the elderly who were easily excluded from policies can now communicate with the government through the Sinmungo by their mobile phones and computers anytime, anywhere. Offline suggestions are also available by phone, postal mail, or facsimile. ○ This type of public participation enables the resolution of inconveniences that affect everyday lives but may have been overlooked. For instance, in Korea, pediatric patients with blood cancer had to resort to chemotherapy or transplant surgery only because no drug was available for them. However, a suggestion filed in the Sinmungo enabled a drug for adult to be used for pediatric patients after safety testing, so that 354 pediatric patients with blood cancer could use the drug. The initiative provides the government with opportunities to address public inconveniences that would otherwise remain ignored. ○ The system links 40 central government agencies and 243 local governments with one system to enable multilateral regulatory impact analyses. For example, if land development likely causes irrevocable environmental problems, the need for maintenance of the related regulations is acknowledged. Presenting reasonable grounds for rejection of suggestions enhances public acceptance of policies.

Korea ranked 10th among 189 countries on the UNDP's Gender Inequality Index in 2018, which is relatively high. However, qualitative improvement is still needed given the childbirth/childcare support and quality jobs. The initiative seeks to empower women to have their say in policymaking and remedy gender inequality. The support period for home childcare allowances was extended to relieve households from childbirth/childcare burdens. The government is also striving to expand systems for women by, for instance, increasing the number of test items for embryo-fetal genetic disorder tests from 102 to 130 to support healthy childbirth.

The initiative is for all people but focused particularly on the socially marginalized. (1) Economically, the initiative bolstered the support for the lower-income bracket and small business owners. For instance, the establishment of home-based daycares within affordable public apartment complexes has now been deregulated. As of now, 18 home-based daycares have been established, making childcare easier. The financially marginalized are now allowed to take out bank loans. (2) Socially, the initiative helps resolve inconveniences faced by the socially disadvantaged including women, children, and the disabled. Disabled parking spaces are now available for use by disabled patriots and veterans, thereby improving travel convenience for about 5,300 disabled patriots and veterans. If a family member of a single parent household has a disability or disease, the residence period in welfare facilities can be extended. (3) Environmentally, reasonable regulations were tightened in the interests of the environmentally marginalized. The initiative seeks to build a sustainable resource-recycling society by providing guidelines on the reduction of usage of disposable packaging. Safety supervision was also bolstered by making the installation of emergency exits aboard large buses mandatory. ⇒Of a total of 19,760 suggestions addressed, those relating to people's livelihoods and the disadvantaged accounted for 70 percent.

Key developments of the initiative are as follows : (1) Planning and launching (2014) : Plans were made for a participatory regulatory reform program with reference to advanced nations including the United Kingdom. The requirements for ongoing operation of the program included a low operating burden, wide-ranging public participation, and simple interface. The Regulatory Reform Sinmungo website was accordingly developed and went live. (2) Quantitative development (2015 - 2016) : The system was widely publicized via online and offline channels including the Internet and broadcast media. Opinions from all walks of life, especially the self-employed and small business owners, were collected, which enhanced the perception of the initiative among the public and policy specialists. (3) Consolidation of legal basis (2017) : Legal basis* was established to bolster the foundation for the system’s ongoing operation and development. (*Framework Act On Administrative Regulations) In the process of establishing the legal basis for the Regulatory Reform Sinmungo, public hearings were held under the supervision of the government and the National Assembly (the Prime Minister's Office, July 2014 / the National Assembly , September 2014). We received various opinions from private experts to the general public. With the support of central administrative agencies, the Sinmungo website could be linked to their respective websites. (4) Qualitative development and roll-out (2018 - Present) : The Sinmungo website can now be linked to local government websites. Its ongoing operation and seamless performance earned it a reputation as a successful policy program from the OECD and the press at home and abroad. Since it was introduced at international conferences, other countries have continued to show an interest in and make inquiries about the system for benchmarking purposes.

(1) Collaboration between the central government responsible for planning and enacting systems and local governments responsible for enforcing them ⇒(Resolution) Providing vision and institutionalizing it through creation of consensus based on the firm commitment of the senior leadership were crucial. ("transformational leadership of the chief officer for policy") (2) Voluntary participation of the general public, who were excluded from policymaking processes and had little interest in regulatory issues, at the initial implementation stage ⇒(Resolution) The initiative was continuously publicized through channels familiar to the public such as the Internet by releasing its tangible improvements in the press. ("ongoing communication with the public")

The system is the first initiative to take a bottom-up regulatory reform approach. People no longer need to visit 283 central and local governments. Once a suggestion is submitted, no matter how complicated the regulation is, the system renders one-stop service whereby competent agencies are assigned and a reply is provided after inter-agency coordination. In 2018, public relations included 18 local briefings, 9 on-site fact findings, 1,034 radio campaign ads, and the provision of posters to 500 institutions. The paradigm shift led this initiative to win the Korea Policy of the Year Award for Serving the People(Maekyung Media Group, 2018).

The initiative was inspired by the Red Tape Challenge, a British program, whereby companies and tax payers suggest their opinions on regulatory burdens and government agencies review the regulations concerned. The program was temporarily run from 2011 to 2013 through the website (www.redtapechallenge.cabinetoffice.gov.uk). The UK government proposed a total of 29 themes including agriculture, retail, and the environment, received opinions by preset deadlines, and identified regulatory improvement projects. Unlike the Red Tape Challenge, however, the Regulatory Reform Sinmungo is run as a permanent system mandated by legislation, applied to all areas, and interfaced with all government agencies' websites.

○ In 2017, the Korean government intended to establish a channel, where the public could make direct policy suggestions to the new administration, and benchmarked the well-evaluated Regulatory Reform Sinmungo system. The government then established a public forum called "Gwanghwamun 1st Street" based on the main characteristics of the Sinmungo system: (i) the public's direct suggestions; (ii) higher accessibility thanks to an online system; (iii) a government-wide integrated system; and (iv) responsible answers from competent agencies. Run offline initially, upon launch of the online system, the forum was restructured as the Online Gwanghwamun 1st Street. ○ While the Regulatory Reform Sinmungo specialized in regulations so that suggestions are specific and individual, Gwanghwamun 1st Street is a comprehensive platform for people to propose policies or policy directions. This benchmarking consolidated the public's positive recognition of the initiative and lent an impetus for legislation related to the initiative in 2018. ○ The initiative has also drawn keen interest from other countries. It has been introduced as a good regulatory practice at many international bodies including OECD and APEC and as one of Korea's major successful policy reforms during visits to Korea by delegations from East Asian countries drawing considerable attention.

The Regulatory Reform Sinmungo can be easily transferred to other countries in both physical and content-based contexts. (1) Technologically, the initiative advocates a simple system. Once people make a suggestion on the website, the person in charge of the Regulatory Reform Sinmungo assigns it to a competent agency, which posts answers. The annual system operating costs are as low as KRW 100 million. Suggestions can be received both online and offline flexibly. The simple system configuration also enables anyone to use the system. (2) With respect to its adaptability, the bottom-up communication approach is also in keeping with universal social values. Although regulations differ depending on countries and regions, all indeed share a common concern over effective approaches to regulatory improvement. (3) The system’s format can be not only used for regulatory reform but also adapted to various fields including budget allocation and welfare benefits. (4) The Regulatory Reform Sinmungo has been continuously enhanced and improved over 6 years of implementation through improvements, legislation, and provision of concrete work manuals. These tangible assets attained after its full-scale execution, will greatly help other countries or regions implement their Regulatory Reform Sinmungo system that meets their specific needs.

The operation of the computer system for the initiative has been outsourced to external agencies. Apart from its computer system, ten people (as of 2019) manage the entire process from suggestion receipt to coordination and regulatory improvement. The initiative is operated by one division consisting of one manager and nine staffs, of whom two persons belong to the PMO and eight were dispatched from other institutions. No personnel were additionally hired for the initiative. The dispatched staff members promptly address suggestions based on their area of expertise. The annual system operating costs total about KRW 100 million, including labor costs.

(1) Financially, once implemented, the system can be operated on a minimum budget primarily allocated to cover labor costs, thereby imposing a minimal financial burden. (2) Institutionally, its legal basis has been laid down in the Framework Act on Administrative Regulations(2018) to ensure stable operation. (3) Public perception, a factor in the operation of the system, is quite positive. The six-year efforts to generate tangible outcomes raised the public's interest and support. A perception survey for regulatory policies conducted of the general public(71.4%) and SMEs(65.0%) in 2015 showed the initiative ranked 1st, just one year after its implementation.

Yes

The Regulatory Policy Committee (RPC) of the OECD assesses regulatory policies of member states every three years starting from 2015 and evaluated Korea's regulatory policies, including the Regulatory Reform Sinmungo, in 2017. The RPC conducted the assessment through, primarily, documentary reviews and, secondarily, site visits. The Korean government submitted answers and supporting documents on 53 high-level questions under four parts formulated based on research methodologies that OECD members have jointly developed over the last 20 years. Afterwards, an OECD delegation visited Korea four times (May 2016, June 2016, September 2016, and February 2017) to verify documents and collect additional data.

○ Using the 2x3 matrix indicators, (1) stakeholder engagement, (2) regulatory impact assessment, and (3) ex post evaluation of regulations were evaluated for (ⅰ) primary laws and (ⅱ) subordinate statutes. ○ Evaluation tools included documentary reviews and site visits. Documentary reviews were conducted by verifying answers to the questions categorized into four parts: content of policies, stakeholder engagement and transparency, regulatory impact assessment, and ex post evaluation. The initiative was evaluated principally under the stakeholder engagement and transparency sections. During site visits, interviews with the PMO, the Korea Institute for Public Administration, and the National Assembly were conducted.

○ The OECD defined the initiative as an innovative and efficient policy tool that provides feedback on regulatory administration. Korean regulatory policy ranked 4th to 6th, a significant rise from its previous ranking of 9th to 15th in 2015, in the OECD regulatory policy assessment because of high appreciation for the Regulatory Reform Sinmungo that allows online public suggestion for regulatory improvement. ○ According to the OECD Reviews of Regulatory Reform in Korea(2017), demand-driven regulatory quality assurance and wide-ranging regulatory oversight platforms are used to increase public participation and stakeholder engagement. The planning, execution, and feedback procedures for the initiative are considered people-centric. The OECD found that proactive improvement of regulatory quality at the initial phase would provide critical opportunities to improve regulatory control. The OECD also expressed predictions that Korea's regulatory procedures would grow into a more forward-looking and strategic reform system through the initiative. In terms of infrastructure, training programs provided by online and offline to strengthen regulatory reform capability were highly regarded. ○ The OECD's selection of the initiative as a global best practice principle regarding stakeholder engagement in regulatory policy in 2017 demonstrates that its objectives, effectiveness, and sustainability were highly appreciated.

○ The initiative is dynamically structured so that collaboration between the central and local governments and between the government and the private sector enables improvement suggestions to be seamlessly addressed through a one-stop channel. ○ An organization in charge of the initiative has been set up within the PMO. The PMO, responsible for coordinating cross-functional tasks, settles inter-ministerial differences over regulations. The PMO manages the entire process from submissions receipt to delivery of final answers. ○ Horizontally, the PMO closely works with the central and local governments ("competent agencies"). The PMO assigns submissions to appropriate departments under the competent agencies, which in turn review them and provide answers in the form of either 'accepted' or 'rejected.' Afterwards, the responsible department within the PMO conducts a second review on the validity of the answers. ○ Vertically, in-depth reviews are conducted by the Regulatory Reform Committee that is under direct presidential control and composed of co-chairs (Prime Minister, and an expert from the private sector), and 25 members from the public and private sectors. If the reasons for rejection are insufficient during the second review, the committee may make recommendations for regulatory improvements to the competent agencies after a third review.

○ The initiative is a program where the government (central and local governments) participates as the supplier of systems (regulations) and the public participates as the customer. It is an idealistic program that aims to minimize the gap (difference) between policies and fields through public participation. The government has continued its efforts to upgrade the program by understanding and collating the needs of the central and local governments and the general public from the very planning phase to the present. The initiative is characterized by high accessibility, openness, and transparency, thereby enhancing the scalability of the foundation for stakeholder engagement. ○ Briefing sessions and debates for the National Assembly and the government were held in the process of legislation related to the initiative. Furthermore, opinions of the stakeholders from the private sector were gathered during the period of pre-announcement of legislation. ○ Performance of the initiative reported to the Regulatory Reform Committee (composed of the public and private sectors), twice a year. Also, The government makes ongoing efforts to publicize the initiative to organizations, associations, and NGOs from various fields every year and gather their opinions.

○ The key lessons learned are as follows : (1) First, we could realize a virtuous circle where public participation generated regulatory reform outcomes readily perceived by the general public, which cemented a foundation for sustainable and developmental operation of the initiative. (2) Second, success stories of regulatory reform empirically demonstrated that it is possible to provide various benefits for the socially marginalized such as small business owners, women, and farmers. (3) Third, the government’s tireless commitment and patient approach to strongly pushing for regulatory reform were critical success factors. ○ Our next improvement plans include : (1) First, PMO will expand the collaboration between central and local governments into public institutions and public corporation. (2) Second, since the initiative is highly likely to be transferred to similar administrative services at home and other countries, we will strive to disseminate success cases of the initiative. (3) Finally, PMO will explore the development model of the public participation platform for regulatory reform, going beyond the internet-based petition system. PMO will make multilateral efforts to establish this initiative as a new success story of public services in terms of inclusiveness, transformation and innovation.