In spite of offensive government regulation reform, citizen’s recognition of theeffects of regulation reform seems to be not satisfactory. This study intends toevaluate the policy effects of government regulation reform with empirical data bybuilding up the regulation reform index. According to the results of thisanalysis, earlier 10 years government deregulation policy seems to produce quitepositive effects on the industrial performance. Especially, individual industrieslevel deregulation has exerted much more effects on the profitability and the sizeof incumbent businesses. However, this analysis also indicates that the positiveeffects of the deregulation do not show strong and consistent results which alsodo not last longer than short-term periods.