President Lee’s Shift Toward “Negative Regulation” Could Propel Korea to Global Innovation Leadership
SEOUL—Following President Lee Jae-myung’s remarks calling for a shift from a “positive” to a “negative” regulatory framework, the Information Technology and Innovation Foundation (ITIF), the leading think tank for science and technology policy, released the following statement from Sejin Kim, associate director of ITIF’s Center for Korean Innovation and Competitiveness:
President Lee’s initiative to adopt a negative regulatory system marks a bold, forward-looking step toward transforming South Korea into a true innovation-driven economy. By challenging outdated, permission-based rules, the administration is signaling a clear commitment to fostering creativity, entrepreneurship, and technological progress.
Korea’s dual-constraint regulatory framework proved instrumental during the manufacturing era, but today it stifles innovation and creates uncertainty and barriers for businesses seeking to enter new markets or develop new services—all while Chinese and U.S. tech firms race ahead.
A genuine negative regulatory system, in which only explicitly prohibited activities are restricted, would empower Korean innovators to experiment, iterate, and compete globally with greater agility. This reform reflects the president’s broader vision of building a more open and dynamic economy capable of leading in AI, digital transformation, and next-generation industries.
To ensure success, ministries must pair deregulation with accountability and coordination, embedding this principle across government policy discourse and in day-to-day regulatory practice. If implemented faithfully, this initiative could become one of the most consequential reforms in Korea’s evolution from a fast follower to a global innovation leader.
For more on this issue, see Sejin Kim, From Fast Follower to Innovation Leader: Restructuring South Korea’s Technology Regulation, ITIF, March 3, 2025.
Contact: Sydney Mack, [email protected]
###
The Information Technology and Innovation Foundation (ITIF) is an independent, nonprofit, nonpartisan research and educational institute focusing on the intersection of technological innovation and public policy. Recognized by its peers in the think tank community as the global center of excellence for science and technology policy, ITIF’s mission is to formulate and promote policy solutions that accelerate innovation and boost productivity to spur growth, opportunity, and progress.
