Future Plan

To bring about a basic plan and the goal of the special act following the establishment of Jeju Special Selfgoverning Province, continued strong promotion such as the adoption of an advanced decentralization system and system upgrades to meet the global standards is required

Basic Goal and Main Tasks

A support committee and the secretariat of Jeju Special Selfgoverning Province were established to bring about the Special Selfgoverning Province and comprehensive coordination and support for main tasks ahead of schedule (August, 2006)

1. Promotion of Regulatory Reform

• Goal
  • The regulations of the Special Selfgoverning Province are brought up to global standards to nurture core industry
    
    • Exceptions such as a free economic zone are made to evolve into a free international city.
  • The level of deregulation is set to ensure a decent population and inflow of capital as a special selfgoverning province

     

• Direction
  
  • Promotion of strong regulatory reform after sorting out ‘target regulations,’ focused on core industryrelated regulations
    In accordance with Article 345 of the Special Act, each department should classify regulations into Necessary Regulations, Deregulation, and Elimination and submit this list to the Support Committee by December 2006 → The Support Committee shall make out a regulatory reform plan, enact separate laws, and review the need for the regulation ev
    ry 3 years
  • Except for the Necessary Regulations, other regulations shall be lifted or eliminated
    • In consideration of the characteristics of a special selfgoverning province, the regulations whose direction of reform is unclear shall be classified as
      he subject of ‘transfer of regulatory authority.’

    <Direction of Regulatory Reform>

    Direction of Regulatory Reform>

    Direction	Description
    Elimination	Not applied to special selfgoverning province
    Transfer of Regulation Authority	Authority is transferred With regard to the details such as regulatory conditions and standards, ordinance is delegated However, it should be stipulated that the regulation will not be stricter than the national standard.
    Deregulation	A regulation is lifted to meet the level of competing countries
    Necessary	A regulation which is stronger than the national average is applied

  • Regulatory reforms (plan) are enacted and reflected upon individually.
    
    • Depending on the type of reform direction, it shall be classified as Necessary Regulation, Deregulation, or other.
  • Based on performance evaluations of actual results such as population and capital inflow to the Special Selfgoverning Province, the speed and scope of regulatory reform are adjusted.
• Future plan
  
  • Basic direction and promotion schedule (Office of Prime Minister): August 2006
    
    • The regulation list is chosen and submitted (Special selfgoverning province → Office of Prime Minister)
  • Target regulation list (plan) is made out and reported to each division: August ? September 2006
    The reform plan is established and submitted to the Support Committee: By the end of December 2006
  • Opinions from each d vision are reviewed and a plan of reform for each regulation is created: The 1st half of 2007
  • A special selfgoverning province regulatory reform plan is created and submitted to the national assembly: The 2nd half of 2007
    
    • Early implementation is under negotiation in consideration of the 2nd half schedule (2007)
  • The need for the regulation will be reviewed every 3 years and bill revision is to be promoted

three Core Tasks

• Open Sky Policy
  
  • Due to a lack of main direct flights, Jeju has limitation regarding evolution into an international tourist resort
  • In order to create demand for tourism through an expansion of direct flights, ‘fifth freedom’ right should be allowed.
  • The fifth freedom right: An airline can carry passengers and cargo between two countries without being based in either as part of a continuous operation that also serves the airline’s country of origin
• Expansion of Dutyfree Zone
  
  • Even though there currently are domestic dutyfree shops, the province is still lacking as a hub for shopping tourism
  • By designating the whole island as a dutyfree zone, tourism based around shopping will be further promoted
  • Promotion of tax exemption on goods and services
• Reduction of Corporate Income Taxes
  
  • The corporate income tax rate is a basic factor in making an investment. Therefore, the tax rate needs to be reduced to meet the level of main cities in East Asia.
  • Promotion of investment by lowering the current income tax rate (companies with KRW 100 mil. or above in terms of operating income: 25%; those with less than KRW 100 mil.: 13%) to meet the level of main cities in East Asia (Pudong: 15%; Hongkong: 17.5%)
    
    • ⇒ Promotion of a 2phase ystem as core task for improvement
  • Outsourcing of professional organizations is promoted → Reflected in the Special Act through development of persuasive logic and continuous discussion

Revision of Succeeding Laws

• Background
  
  • As part of a plan of action for the enactment of the Special Act on the Special Selfgoverning Province, the related laws and regulations must be revised by the end of 2006.
  • Those actions that require quick adjustment since the establishment of the Special Selfgoverning Province should be quickly reflected apart from the 2phase promotion
• Promotions up to now (Enactment completed)
  
  • Special Selfgoverning Provincerelated laws and regulations (resolved during the end of 2005 through Feb. 2006 by the national assembly)
    
    • Establishment of the Jeju Special Selfgoverning Province and the Special Act for development as a free international city
    • Special act on Jeju administrative systems
    • Revision of local government laws
    • (Abbreviation) Enforcement Ordinance of the Special Act on the Special Selfgoverning Province, NoVisa related guideline
  • Local policerelated succession laws and regulations (Resolved on June 30, 2006 by the national assembly)
    
    • Revision of police laws
    • Revision of road traffic law
    • Revision of minor offense law and laws related to the promotion of bicycle use
    • Revision of judicial police officers and the scope of their dutyrelated laws
• Future plan
  
  • Revision of Special Act for Balanced National Development → Establishment of Jeju account of Special Accounting for Balanced national Development
  • Special Tax Treatment Control Act (Enforcement Ordinance) → Abolition of the regulation on the number of uses of domestic dutyfree shops
  • The revision of the Special Act on the Special Selfgoverning Province at the end of 2006 through negotiations with the central government → The clauses that must be revised quickly are reflected

2. Transfer of Central Authority by Stages

• Background
  
  • Tasks excluding those for national securityrelated duties such as diplomacy, defense, and the administration of justice shall be transferred to the special selfgoverning province by stages
    (Article 12 of Special Act)
    
    • In consideration of local conditions, capacity, and financial capability
  • Transfer of Central Authority (Special Act)
    

    Background

    Total	Transfer of Administrative Authority	Delegation of Ordinance and Rules	Remarks
    1,062	688	374	Including 461 cases which were transferred due to the transfer of Special Local Administrative Agencies

• Direction
  
  • The central authorities, which are related to the welfare of local residents and the development of the special selfgoverning province, are transferred in advance
    
    • Operation based on local characteristics by the Special Selfgoverning Province
  • Transfer of functioncentered authority, not just simple duties
    
    • In consideration of the characteristics of the special selfgoverning province, authority is transferred stage by stage
    • Those requested by the special selfgoverning province are promoted in advance
      However, the subjects of transfer should be chosen in consideration of the necessity of maintaining national standards
  • Regulatory reform and transfer of authority to nurture core industries
• Future plan
  
  • Forum and research outsourcing: Sep. through Dec. 2006
  • Basic plan for transfer of authority and opinions from relevant organizations: Jan. through Apr. 2007
  • Basic plan for transfer of authority and report to the Support Committee: May through Jun. 2007
  • Promotion of a plan of action such as the revision of related laws and regulations: The 2nd half of 2007

3. Establishment of Special Selfgoverning Province Performance Management System

• Background
  
  • Performance management regulations through an agreement between the prime minister and the special selfgoverning province (Article 5 of Special Act)
    
    • The results of the transfer of authority and deregulation are reviewed and complemented if necessary
    • More responsible system according to the high level of autonomy
• Performance agreement
  
  • Based on the plan submitted by the special selfgoverning province, the performance goal and indexes are reviewed by the Support Committee and then confirmed
  • Performance indexes are set at a minimum, focusing on core indexes
  • The evaluation is made by a neutral evaluation team and the result is not disclosed.
  • In connection with performance, administrative and financial incentives are endowed and complemented if necessary.
• Future plan
  
  • Signed performance agreement (special selfgoverning province): August 2006
  • 2007 performance goal and indexes (reviewed by the Support Committee and confirmed): Aug. 2006 through Jan. 2007
  • The first performance evaluation: Mar. through Apr. 2008
    
    • In order to elicit the system improvement tasks for legislation, however, informal evaluations will be conducted along with the “Anniversary of the Establishment of the Special Selfgoverning Province” (July 2007)

4. Development of Sound and Decent Selfgoverning Environment

• Direction
  
  • Strengthens autonomy and responsibility in financial operation
  • Promotes selfgoverning capacity for the success of the special selfgoverning province
• Details
  
  • A financial structure in which financial resources can be secured by local efforts
    
    • Transfer of some of national tax items or incentives by a certain portion if national tax revenue increases are under review
  • Expansion of autonomy in operation of the Jeju account, Special Accounting for Balanced national Development
  • Improvement of selfgoverning capacity and stricter responsibility
    
    • Stricter control system through the attendance of college professors, civil associations, and other organizations
    • Improvement of government employee administrative capability through performance evaluation and development of competence
    • Stricter control of selfgoverning authority through the increase of the role of local councils and audit committees
• Future plan
  
  • Fiscal decentralization TFT for improvement of fiscal system (September 2006), local fiscal autonomy improvement plan (June 2007), and revision of relevant laws and regulations (the 2nd half of 2007)
  • Voluntary selfgoverning capacity improvement plan (October 2006) and support plan from the central government