Government: "Over 90% of Participants Satisfied with Regulatory Sandbox"... 'Concerns Over Business Continuity Remain'

Office for Government Policy Coordination Announces Satisfaction Survey Results for the 2nd Year of the Regulatory Sandbox

Prime Minister Chung Sye-kyun speaking at the launch ceremony of the Regulatory Sandbox Private Reception Organization held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul on May 12. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Moon Chaeseok] The government announced that more than nine out of ten companies participating in the regulatory sandbox responded that they are satisfied with the system. Regarding companies' concerns that they may not be able to continue their business due to pending legislation in the National Assembly after the demonstration exemption, the government only stated that "the law is pending in the National Assembly."

The Office for Government Policy Coordination (OGPC) announced the results of a survey on the awareness and satisfaction of sandbox companies on the 23rd. About 400 companies were surveyed, divided into general companies, approved companies, and applicant companies.

Among 150 general companies, 70.7% (106 companies) responded that they are aware of the sandbox system. This is a 27.4 percentage point increase compared to the same period last year.

92% (138 companies) of general companies answered that "the sandbox will help revitalize the economy," which is an 11.4 percentage point increase from last year.

Among 229 sandbox approved companies, 91.7% (210 companies) responded that they are "satisfied" with the overall system, a 1.5 percentage point increase from last year.

However, concerns such as business continuity anxiety (6.56 points) and difficulties in commercialization (6.31 points) were cited as challenges.

Among 25 applicant companies, 92% (23 companies) responded that they are "satisfied" with the system.

However, difficulties such as choosing the appropriate ministry or agency before sandbox approval (5.72 points) and excessive application documents (5.56 points) were reported as challenges.

The OGPC conducted in-depth interviews with 10 companies in five sectors among the sandbox approved companies: Information and Communication Technology (ICT) convergence, industrial convergence, innovative finance, regional special zones, and smart cities.

The 10 companies stated that it is difficult to find insurance companies to develop liability insurance for new business models and that they do not receive information on regulatory improvements from ministries or agencies.

The OGPC emphasized the significance of the increase in awareness among general companies from 43.3% last year to 70.7%, and satisfaction from 90.2% to 91.7%.

The OGPC stated, "Based on the high awareness and satisfaction, the OGPC and related ministries plan to focus on the stable and effective operation of the system starting next year, which will be the third year since its implementation."

The issue remains that after receiving approval for the sandbox demonstration exemption and proving the validity and safety of the business through demonstration tests, companies cannot continue their business after the maximum four-year demonstration test period ends due to pending legislation in the National Assembly.

Regarding this, the OGPC said, "A bill to convert the demonstration exemption into a temporary permit or to consider the demonstration exemption period as not expired has been submitted to the National Assembly." No further comments were made beyond stating that the bill has already been submitted.

Lee Jungwon, Director of the Regulatory Coordination Office at the OGPC, said, "We will reflect the survey results in the development plan for the sandbox so that more companies can enjoy opportunities for innovative attempts next year, and efforts will be made to expand the achievements of the sandbox."

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