Regulatory Sandbox Attracts 600 Billion KRW Investment Over 2 Years

364 Cases Approved Including Mobile Electronic Notices and Shared Beauty Salons
166 Cases Market Launched or Tested
Investment 621.3 Billion KRW, Sales 39.6 Billion KRW... Employment Increased by 1,742
Future Expansion of Research and Development Zones and Mobility Planned

At the launch ceremony of the Regulatory Sandbox Private Reception Organization held on May 12 in the Korea Chamber of Commerce and Industry, Jung Se-kyun, Prime Minister, Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry, and other attendees pose for a commemorative photo. From the left: Byeon Chang-hwan, CEO of Quara; Lee Ryeon-ju, Director of the Regulatory Coordination Office, Office for Government Policy Coordination; Kim Sung-soo, Chief Secretary to the Prime Minister; Son Byung-doo, Vice Chairman of the Financial Services Commission; Jung Seung-il, Vice Minister of Trade, Industry and Energy; Jang Seok-young, 2nd Vice Minister of Science and ICT; Prime Minister Jung; Chairman Park; Lee In-yong, President of Samsung Electronics; Gong Young-woon, President of Hyundai Motor Company; Kim Ki-woong, CEO of Wecook; Lee Seok-woo, CEO of Dunamu. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Moon Chaeseok] The government announced that it has attracted investments totaling 621.3 billion KRW while operating the regulatory sandbox system for nearly two years. A total of 364 cases, including mobile electronic notices and shared beauty salons, have been approved. In addition to the existing five fields such as information and communication technology (ICT) convergence, efforts will be focused on expanding the sandbox to research and development special zones and the mobility sector.

According to the Office for Government Policy Coordination on the 26th, since the system was introduced on January 17 last year, 364 projects have been approved up to this month. Among them, 166 cases (46%) have been launched in the market or are undergoing demonstration tests. A representative example is a mobile service that delivers administrative and public institution notices via text message (MMS). It is expected that about 20 more cases will be approved by the end of this year.

Over 22 months, investments of 621.3 billion KRW have been made in sandbox-related projects. According to the Office for Government Policy Coordination, investments have been evenly distributed across all fields without concentrating on specific sectors. The office evaluated that "the regulatory sandbox is demonstrating its role in driving the development of new technologies in various fields."

Sales in the ICT and industrial convergence sectors from January to October recorded 39.6 billion KRW as of last month, which is 2.8 times higher than in January. Among all approved companies, 74% are small and medium-sized enterprises.

There has been a net employment increase of 1,742 people among the approved companies. In particular, employment growth was most significant in the financial innovation and regulatory free zone sectors. The Office for Government Policy Coordination explained, "It can be seen that the sandbox is contributing to the development of fintech and the creation of regional jobs."

The Office for Government Policy Coordination and related ministries prepared development plans for the sandbox system three times: in January and July last year, and January this year. They supported demonstration exemption expenses amounting to 142.1 billion KRW (144 cases).

Starting next year, efforts will be actively promoted to improve regulations such as laws based on demonstration project results and to generate outcomes.

In addition to the existing five fields of ICT convergence, industrial convergence, financial innovation, regulatory free zones, and smart cities, research and development special zones and the mobility sector will be added. The research and development special zones are scheduled to be added from next month. Mobility is expected to take some time as related bills are pending in the National Assembly. Also, if there are no safety issues, related legal amendments will be pursued to ensure that projects do not stop even after the demonstration exemption period expires. The related laws are currently pending in the National Assembly.

Lee Jungwon, Director of the Regulatory Coordination Office at the Office for Government Policy Coordination, said, "Next year marks the third year since the system's implementation, so we will focus our efforts on regulatory improvements based on verifying the safety and effectiveness of approved projects to ensure that companies related to new industries can enjoy more opportunities."

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