'Activate Your Phone via App' KCCI-Ministry of Science and ICT Sandbox Approval

[Asia Economy Reporter Changhwan Lee] Shared kitchens leading delivery services are newly opening, and non-face-to-face telecommunication subscription services using simple authentication applications (apps) to activate mobile phones are expanding.

The Korea Chamber of Commerce and Industry Sandbox Support Center announced that the Ministry of Science and ICT held a 'Sandbox Deliberation Committee' meeting in writing on the 3rd and approved 'delivery-specialized shared kitchens' and 'non-face-to-face telecommunication subscription app services.'

The Korea Chamber explained that this written deliberation applied the 'Fast Track' to enable companies to quickly commercialize and launch products in the market despite difficulties caused by the novel coronavirus infection (COVID-19).

Following the committee's decision, the 'delivery-specialized shared kitchen' (KitchenX) will open. KitchenX is a model where multiple businesses share the same kitchen, similar to previously approved shared kitchens under demonstration exceptions, but it is differentiated by targeting delivery-specialized restaurant startups.

Restaurant entrepreneurs rent and share kitchens and related facilities in the shared kitchen to prepare food, and the prepared food is delivered and sold to consumers through delivery agencies.

According to the current Food Sanitation Act Enforcement Rules, multiple businesses cannot share one kitchen due to the risk of cross-contamination causing food poisoning.

Therefore, the deliberation committee granted a 'demonstration exception' on the condition of compliance with shared kitchen operation guidelines, considering effects such as expanding market entry for new food service startups, reducing initial startup costs, and improving startup success rates.

The demonstration exception is a system that allows innovative products and services to be exempted or deferred from regulations and to conduct market tests in limited areas for a certain period (up to 4 years).

The 'non-face-to-face mobile telecommunication subscription service' (LG Uplus), which allows easy mobile phone activation through simple identity verification apps (PASS) and account verification, was also additionally permitted.

Under the current Telecommunications Business Act, only certified electronic signatures, credit cards, and mobile phone text message authentication are allowed as identity verification methods for non-face-to-face telecommunication subscriptions, making app-based subscriptions unclear.

The committee granted temporary approval for the non-face-to-face mobile telecommunication subscription service, considering benefits such as expanded user convenience through simple identity verification and prevention of illegal customer information leakage and user damage during offline activation. Temporary approval is a system that proactively allows the market launch of innovative products and services until related laws are amended.

Meanwhile, the Ministry of Science and ICT Sandbox Deliberation Committee also granted temporary approval for two mobile driver's license verification services in addition to the two tasks from the Chamber, and approved changes to the designation conditions for the demand-responsive community-type large passenger van taxi, which was previously approved under demonstration exceptions.

This content was produced with the assistance of AI translation services.