Cafes and restaurant across Korea will become free to add seats outdoors if there are no complaints from their neighborhood, according to a set of deregulation measures to vitalize domestic demand.

According to measures released by the Ministry of Economy and Finance on Wednesday, the government will allow operations of businesses with outdoor seating which had been restricted to locations approved by local governments, special tourist zones, and hotels.

Under the country’s negative regulatory system, the Ministry of Food and Drug Safety and local governments will be able to tie up areas that are banned from operating outdoor businesses if deemed to raise issues such as public complaints and those related to sanitation and safety.

The easing of regulation comes as self-owned restaurant operators have continuously demanded the government allow open-air operations and it included the agenda in a set of measures last year aimed at supporting small and individual businesses.

The government plans to hand out a guideline for outdoor operations next month so that businesses can begin right away even before regulatory revision.

The economy and finance ministry also will allow flexible renting of petroleum storing facilities upon demand by the petrochemical industry.

Currently, oil refiners that own petroleum storing facilities or exclusively rented them for one year or more are able to register as business operators. They are only allowed to store oil equivalent to 40 days of planned sales volume.

There have been criticisms, however, that oil refiners are unable to rent short-term facilities for additional storage to prepare for fluctuating oil prices due to regulatory barriers. Reflecting such concerns, the government will allow registered oil refiners to rent storage facilities for short-term period when needed.

As part of efforts to boost the economy, the government has also decided to simplify approval procedures for businesses that build new factories or expand them.

Currently, businesses need to receive separate approval from the government when amending facilities within 20 percent of total manufacturing area. A revised law would require them to apply for approval but if they do not hear back from the licensing authority for up to 20 days, it would be considered a “go ahead” sign. The government expected this will allow more investment flexibility when businesses replace facilities and carry out maintenance and repair work.

By Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]