The Korean economy grew 0.9 percent in the first quarter of 2013 from the final quarter of last year. Was the high quarterly growth rate an aberration, as claimed by President Park Geun-hye’s administration, or an unmistakable sign of recovery, as argued by the Bank of Korea? Neither the administration nor the central bank will be able to present a convincing answer at least until after more data comes in for the performance of the second quarter.

Growth had been anemic until the first quarter of this year ― 0.3 percent in the second quarter last year, no growth in the third quarter and 0.3 percent in the final quarter. But growth in the first quarter of this year topped the administration’s earlier forecast by 0.4 point. Yet, the administration is worried that the nation’s economic conditions are worsening.

The economy may have bottomed out, as the central bank claims. Still, it would not mean much if the central bank was not far off the mark when it revised this year’s growth projection downward earlier this month, from 2.8 percent to 2.6 percent. The central bank’s growth projection is not much more optimistic than that of the administration, which expects growth to be at 2.3 percent.

Given the gloomy outlook, it is understandable why the administration is desperate to boost growth. It has waived capital gains and other taxes on small apartments and written a new bill for 17.3 trillion won in additional spending. It has even called on the central bank to lower its benchmark rate, only to hear that a rate cut would do more harm than good.

Now the administration is working on deregulation with economic think tanks and five leading business organizations to boost growth by encouraging corporate investments. The administration, which says it will make the plan public in the near future, believes large corporations, in particular those affiliated with the 10 largest business groups in the nation, can afford to invest much more as their coffers are bulging with retained earnings.

The administration has high hopes for deregulation, with corporations awash with cash and other liquid assets ― 52 trillion won, according to one estimate. President Park said recently it would make a big difference if just 10 percent of that amount were to be invested.

The administration believes that huge amounts of corporate funds that are earmarked for investments are held up because of regulations. Cited as a case in point is the regulation that prohibits the expansion of hotels and the construction of new ones when they are within 200 meters from a school.

Under this regulation, Korean Air is denied a permit to build a deluxe hotel in downtown Seoul. Some other corporations are also denied building permits because of the same regulation. Otherwise, as much as 700 billion won could reportedly be sunk into hotel construction and expansion.

Officials also say that up to 14.4 trillion won would be additionally invested in Gyeonggi Province alone if regulations were to be lifted as demanded by corporations. But regulations on investment in the province and in Seoul are stricter than elsewhere in the nation.

Deregulation, however, is easier said than done. A new administration never fails to commit itself to deregulation, but it does not take long before it starts to write its own regulations into law. In justifying the new regulations, it offers convincing reasons. Its successor invariably follows suit.

Some regulations outlive their purpose, but others are enduring. Among them are the regulations designed to ease population density, improve water quality and promote ecological protection in Seoul’s metropolitan area. An attempt to ease or remove any of the regulations will encounter public resistance, no matter what amount of money each deregulation measure promises to bring in as an additional investment.

Of course, this does not mean there is little room for deregulation. On the contrary, there are many areas in which the administration may encourage investments by easing regulations.

For instance, the administration may help shorten the period of time required for factory construction by removing bureaucratic red tape. As deregulation advocates propose, school zones would still be protected if hotels with no casino or entertainment facility were to be allowed to be built or expanded within 200 meters of schools.