The Korea Chamber of Commerce and Industry on Wednesday called for reform of government regulations to stimulate industry and help develop the “creative economy” being pushed by the Park Geun-hye government.

The KCCI submitted a report to the government after selecting 100 grievances proposed by about 1,400 industrial organizations and the chamber’s 14,000 member companies nationwide between March and May this year.

At the center of the proposals is the “Patent Box” ― a tax relief policy to significantly reduce corporate income taxes for company earnings derived from R&D projects, patents and intellectual properties.

China and eight European countries have already adopted the policy, owing to the policy’s effectiveness in inducing companies to innovate and invest more into research and development, according to the KCCI report.

GlaxoSmithKline’s 500 million pound ($781.4 million) investment in new manufacturing facilities in the U.K. had the effect of creating some 1,000 new jobs for the country since the policy’s implementation in April, the report said.

The KCCI report also suggested that the National Emergency Management Agency’s belated updating of its regulations and specifications had discouraged manufacturing companies from developing innovative products.

Environmental and energy issues were also brought up. According to the report, developing more facilities where wastewater sludge and industrial wastewater could be recycled or made into fuel was another top concern for the KCCI.

“Right now, the new administration’s inclination for reform measures is high,” said Park Jong-gap, KCCI executive director.

“In order to improve the business environment and stimulate the economy, the current cost burden imposed on companies should be reduced to expand investment and promote new businesses.”

Other reform measures recommended by the KCCI included easing regulations on medical tourism, simplifying the evaluation process of new medical technologies and equipment, and uniform treatment of the service sector and manufacturing industry.

By Kwon Bum-joon (bjkwon@heraldcorp.com)