Regulation reform is one of the most important policy agenda of the Park Geun-hye administration. President Park gives a strong emphasis on the implementation of regulatory reform by hosting Minister’s Meeting on Regulatory Reform. In fact, some regulations to be eliminated are discovered and enforced to be abolished during the consecutive meetings. Local governments regulations are not an exception. Local regulations reform is undergoing by the Ministry of Government Administration and Home Affairs under the title of “Let the local government can reform regulations competitively.” It gives emphasis on the problem solving such as i)finding and abolishing local ordinances or local by-laws which are violating laws and ministerial decrees, ii)finding and abolishing local ordinances or local by-laws which are not based on the laws or ministerial decrees, iii)reform the attitudes and behavioral practices embedded in the regulatory bodies. Even though it shows some positive results, local governments regulations r form seems that it does not actualize the original principle of regulatory reform that orienting economic revival of local area. The “competition between local governments” undergoing by the Ministry of Government Administration and Home Affairs became a “goal oriented directive competition” which is far from ensuring and increasing economic competitiveness. In this sense, “competition between local governments” needs to be guided to a “voluntary regulation reform competition” in accordance with each local governments industrial conditions. Voluntary regulation reform can yield a ‘virtuous circle’ consist of intensive regulation reform on strategical industrial area, high rate of employment, growth of population in local area, and income increase. To achieve it, rehabilitation on local governments regulation reform system needs to be done relentlessly.