South Korea’s regulatory reform offers lessons for DOGE and government efficiency
The Department of Government Efficiency (DOGE) holds the potential to transform how governments operate, but its success depends on adopting well-tested strategies. A compelling example comes from South Korea’s bold regulatory reforms in the late 1990s which not only addressed regulatory inefficiencies but also helped the country recover from the Asian financial crisis. The purpose of this article is to provide actionable insights from South Korea’s experiences in implementing transformative reforms.
In 1998, amidst the Asian financial crisis, South Korea’s Regulatory Reform Committee (RRC), akin to a Korean version of DOGE, implemented a series of sweeping changes that reduced over 50% of the country’s regulations within one year. This achievement was not accidental but the result of deliberate, structured strategies. Among these, three approaches stand out as essential recommendations for DOGE to consider: 1) mandatory regulatory registration, 2) the principle of regulatory total quantity management, and 3) the implementation of sunset provisions.
1. Mandatory regulatory registration with clear reduction targets
One of the RRC’s most effective tools was the establishment of a mandatory regulatory registration system. Every regulation, without exception, had to be officially recorded and assigned a unique regulatory code. Unregistered regulations were declared null and void, thereby eliminating hidden and outdated rules. This system ensured transparency, prevented regulatory duplication, and provided a clear inventory of all active regulations. Building upon this system, South Korea also set clear and ambitious reduction targets. Agencies were ordered to critically assess their regulations and eliminate 50% of them within a year. This bold target drove rapid and focused reform efforts, compelling agencies to prioritize essential regulations while discarding outdated or unnecessary ones.
The approach aligns with similar efforts in the U.S., such as the regulatory reviews conducted during the Clinton and Obama administrations. For example, Executive Order 12866 under the Clinton administration introduced cost-benefit analyses for significant regulations to ensure their economic efficiency and justify their necessity, while Executive Order 13563 under the Obama administration emphasized the retrospective review of existing regulations, leading to the elimination of outdated and burdensome rules. For DOGE, combining mandatory registration with clear reduction deadlines would create a powerful framework for achieving regulatory efficiency.
2. Regulatory total quantity management
The RRC’s adoption of the “regulatory total quantity” principle was revolutionary. Under this system, new regulations could only be introduced if an equivalent number of existing regulations were repealed. This “one in, one out” or even “one in, two out” policy created strong incentives for government agencies to prioritize essential regulations and avoid unnecessary additions.
DOGE could apply this principle to maintain a lean and efficient regulatory environment. This approach not only prevents regulatory bloat but also encourages innovation and strategic problem-solving by requiring careful consideration before introducing new regulations. Notably, DOGE leadership has acknowledged the importance of establishing numerical targets for regulatory reduction, underscoring their commitment to streamlining and reducing the overall regulatory burden.
3. Sunset provisions for regulations
The RRC introduced sunset provisions to ensure that regulations remained relevant in a rapidly changing society. Most regulations were assigned an expiration date, typically five years, after which they would automatically lapse unless explicitly renewed following a thorough review. This mechanism fostered periodic reassessment and discouraged the accumulation of outdated regulations.
For DOGE, implementing sunset provisions would prevent regulatory stagnation and ensure that policies evolve alongside societal needs. By institutionalizing regular reviews, sunset provisions also create an opportunity to engage stakeholders and evaluate the real-world impact of regulations.
4. Beyond “hardware” reforms: A focus on “Software” innovations
Efforts focused solely on reducing the number of government agencies and employees—so-called “hardware” or quantitative reforms—may encounter significant resistance, potentially complicating DOGE’s broader objectives. More crucial are “software” or qualitative reforms that address the root causes of inefficiencies, such as large, unnecessary, and burdensome regulations. These reforms emphasize smarter, streamlined administrative practices rather than merely shrinking government structures. By focusing on how to effectively streamline and simplify traditional administrative practices, DOGE can achieve more impactful and sustainable improvements in administrative efficiency.
5. Embracing AI and algorithm-driven governance
The next generation of government bureaucracy must actively develop, adopt, and implement AI and algorithm-driven governance to enhance the efficiency and effectiveness of policymaking and implementation. AI technologies can analyze complex datasets, predict policy outcomes, and offer evidence-based insights, thereby assisting human agents in making better decisions.
To realize this vision, DOGE should establish a dedicated agency focused on AI and data governance and oversight. This agency would ensure that AI technologies are deployed ethically, transparently, and effectively across all levels of government. Such oversight would help prevent misuse and facilitate public trust in AI-driven governance.
AI-driven governance could also play a critical role in regulatory reform. By using AI tools to evaluate the impact of existing regulations, identify redundancies, and simulate policy outcomes, governments can make more informed decisions about which regulations to keep, amend, or eliminate. Additionally, AI could enable proactive and anticipatory governance, such as detecting emerging challenges and addressing them before they escalate.
Why these strategies matter
The South Korean experience demonstrates that regulatory reform is not just about cutting red tape but about fostering a culture of accountability, adaptability, and transparency. By adopting these strategies and integrating “software” innovations and AI-driven governance, DOGE could significantly enhance government efficiency and build public trust. These measures would streamline administrative processes, reduce compliance costs, and create a more dynamic and responsive public sector.
The path forward
To implement these recommendations, DOGE should consider the following steps:
- Establish a centralized regulatory registration system, supported by digital platforms, to ensure transparency and accessibility.
- Combine mandatory regulatory registration with explicit reduction goals, such as a 50% decrease in existing regulations, within a defined timeline to drive focused and measurable reform efforts.
- Develop clear guidelines for regulatory total quantity management, setting ambitious but achievable reduction targets.
- Institutionalize sunset provisions through legislative or executive action, ensuring periodic review and renewal of all regulations.
- Invest in the development of AI and algorithm-driven governance, supported by a dedicated agency for AI and data oversight.
By learning from South Korea’s success and embracing modern technologies, DOGE can position itself as a catalyst for transformative governance. The challenges are significant, but the rewards—a more efficient, innovative, and trustworthy government—are well worth the effort.