16 hours Ago By Korea Bizwire
More than half of South Korean companies in cutting-edge sectors, including biotechnology, batteries, and semiconductors, view the country’s regulatory environment as excessively stringent compared to international competitors. (Image courtesy of Samsung Electronics) SEOUL, Dec. 26 (Korea Bizwire) – As global competition in advanced industries intensifies, more than half of South Korean companies in cutting-edge sectors, including biotechnology, batteries, and semiconductors, view the country’s regulatory environment as excessively stringent compared to international competitors.
A survey conducted by the Korea Chamber of Commerce and Industry (KCCI) among 433 companies revealed that 53.7% of respondents believe South Korea’s regulations are overly strict compared to rival nations. Only 22.
6% viewed the regulatory framework as lenient, while 72.9% reported facing significant challenges in regulatory compliance. Regulatory Burdens Across Key Industries The biotech sector reported the highest regulatory burden, with 83.
6% of companies citing compliance difficulties. Battery manufacturers (73.6%) and semiconductor firms (67.
3%) followed closely. Companies cited excessive regulations (32.8%), high standards (23.
1%), and onerous documentation requirements (21.8%) as the primary obstacles. Despite ongoing discussions about easing regulatory barriers, 42.
7% of respondents said the environment has not improved since last year. Looking ahead, 46.5% expressed skepticism about meaningful changes in regulatory policy.
Sector-Specific Challenges Biotech companies highlighted overlapping certification processes for hybrid products like AI-powered medical devices, leading to delays and increased costs. Meanwhile, semiconductor companies underscored the limitations posed by South Korea’s 52-hour workweek, contrasting it with Taiwan’s more flexible labor practices. The inability to adjust working hours for key projects has hampered workforce efficiency and technical innovation, the industry argued.
Efforts to exempt advanced industries from the 52-hour workweek have faced political hurdles. A proposed semiconductor law aimed at boosting the sector remains stalled in the National Assembly due to disagreements over labor provisions. Calls for Financial and Environmental Support Industry leaders also called for enhanced financial support tailored to the unique needs of R&D-intensive sectors.
The KCCI plans to work closely with government agencies to address environmental regulations and establish continuous dialogue through the Corporate Environmental Policy Council. The chamber intends to institutionalize an annual survey to quantify regulatory burdens and benchmark South Korea’s policies against global standards. The findings will be used to advocate for targeted reforms.
Urgency for Legislative Action KCCI emphasized the importance of expediting key legislative measures, including the Advanced Strategic Industries Fund Act and the Semiconductor Special Act, which remain pending in the National Assembly. “The advanced industries are the backbone of our economic future,” said Kang Seok-gu, head of KCCI’s Research Division. “We will collaborate closely with the government to implement effective regulatory reforms that enhance competitiveness in strategic sectors.
” As the global race for technological dominance accelerates, South Korea’s advanced industries are pressing for swift and meaningful regulatory changes to ensure their competitiveness on the world stage. M. H.
Lee ( [email protected] ).
