South Korea's Ministry of Economy and Finance released a joint package to rationalise 251 “hidden regulations” embedded in public institutions’ internal rules and guidance that can operate as de facto regulation for companies, particularly small and medium-sized enterprises. Developed with public institutions and the Small and Medium Enterprises Ombudsman, the plan covers 109 participating institutions and targets four areas: entry and location requirements, technology development support, procurement and bidding practices, and business-related administrative procedures. The package comprises 44 measures on entry and siting restrictions, 39 on reducing technology development burdens and expanding support, 123 on procurement-related frictions, and 45 on simplifying corporate-facing procedures. Illustrative changes include easing siting standards for liquid hydrogen charging facilities by relaxing vent outlet and boundary distance requirements, removing a “bankruptcy/workout” demerit item in qualification screening for power-generation equipment suppliers, expanding discounted fees for water-industry testing and inspection to all SMEs and mid-sized firms with discounts of 40% and 20% respectively, and using public institutions’ cooperation funds to support SMEs’ artificial intelligence transition costs. Procurement-related steps include widening support for contract price indexation arrangements and lowering defect-repair warranty deposit rates for manufactured and purchased goods from 5% to 3%, while process changes include shortening payment timelines for businesses operating on public-institution premises from settlement closing plus 10 days to plus 2 days and loosening prior approval requirements for changes in port hinterland tenants’ equity stakes from 5% to 10%. The government expects each public institution to complete internal procedures and implement the measures as quickly as possible, with an implementation check planned for the second half of 2026. It also plans to expand the Business Growth Response Center as a channel to identify and address additional hidden regulations.
Ministry of Economy & Finance (South Korea) 2026-04-02
South Korea's Ministry of Economy and Finance finalises plan to rationalise 251 hidden public-institution rules affecting businesses
South Korea’s Ministry of Economy and Finance announced a joint package to rationalise 251 “hidden regulations” in internal rules of 109 public institutions that act as de facto regulation for companies, especially SMEs. Measures cover entry and location requirements, technology support, procurement and bidding, and administrative procedures, including easing siting standards for liquid hydrogen charging facilities, expanding fee discounts and AI transition support for SMEs, and reducing procurement frictions. The government will monitor implementation and expand the Business Growth Response Center.