The government has revised the laws related to the "regulatory sandbox," which temporarily and conditionally exempts new products and services from regulations. Through this, corporations will be able to use the regulatory sandbox more stably and quickly.
The Ministry of Trade and Industry (MOTI) said on the 25th that a partial amendment to the Act on the Promotion of Industrial Convergence, which includes provisions on the regulatory sandbox, was approved at a Cabinet meeting.
The amendment strengthens the government's obligation to revise relevant regulations before the validity period of corporations' regulatory sandbox pilot exemptions expires. Previously, the law only said that authorities "should begin revisions if there is a need," which led to cases where regulations were not revised before the pilot exemption period ended.
The amendment also ensures that corporations' regulatory exemptions remain in effect even if the implementation of revised regulations by the government is delayed. The aim is to prevent unnecessary business gaps for corporations.
The previous maximum exemption period of 2+2 years will also change. Pilot exemptions will be four years with a possible two-year extension, and temporary permits will be three years with a possible two-year extension, granting terms suited to the nature of each business.
For projects that are the same as or similar to previously approved regulatory exemptions, the review process will be streamlined so that exemption applications are processed quickly.
The amendment will take effect in May next year. The Ministry of Trade and Industry (MOTI) said it expects that "innovative corporations with creative ideas will be able to use the industrial convergence regulatory sandbox quickly and stably."
☞Regulatory sandbox
A system that defers or exempts current regulations for corporations offering new products and services using new technologies. It consists of pilot exemptions that test and verify only for a set period and in designated locations, and temporary permits that allow priority market release.