This study aims at evaluating the effect of the introduction of negative regulatory method. For this purpose, we developed a model and indicators based on theoretical foundation, and quantitatively evaluated the effect of negative regulatory method on corporate regulations in Saemangeum Special Economic Zone in Korea.

The main results are as follows. First of all, the investment attraction, the start-up of new firms, the creation of added value, the sales and the job creation in Semangeum area would increase, and the regulatory burden would decrease. Also, the investment attraction and productivity improvement of firms in Saemangeum area were expected to generate production induced effect, added value induced effect, employment and labor induced effect across the country. However, if we considered the introduction of negative regulatory method not only to corporate activities sector but to other sectors, such as education, healthcare, tourism, etc, the effect would be much larger.