[Regulatory Republic] Diright "Proactive Regulatory Improvement Needed to Keep Up with Advanced Industry Changes"

Startup 'Gochungsangdamso' Delight
Long-term Perspective, Inter-Ministerial Consultation Needed
CEO Jo Wonhee "Resolving Contradictions and Dual Regulations"

Jowonhee, CEO of Delight

"The government must closely monitor the direction in which advanced industries are developing and proactively improve regulations with a long-term perspective."

Established in 2017, the law firm Delight serves as a 'consultation center' for startups. It provides solutions and advisory services for various legal issues encountered during business operations. The firm consists of about 20 lawyers and has more than 140 regular corporate clients. Among the various obstacles faced in business, government regulations are one of the most common concerns that startup CEOs share with Delight.

On the 10th, Jo Wonhee, CEO of Delight (pictured), said in an interview with Asia Economy, "Among startups, especially companies in the pharmaceutical & bio, blockchain, and fintech (finance + technology) sectors, we receive numerous complaints related to regulations," emphasizing, "To resolve these issues, proactive and leading government administration is essential." Jo pointed out, "The government tends to hold the licensing authority and view matters only from a regulatory perspective rather than discovering necessary improvements for the industry."

He cited the digital therapeutics market, which is expected to grow rapidly in the post-COVID era, as an example. Digital therapeutics refer to software medical devices provided to patients to prevent, manage, and treat diseases. Due to the spread of COVID-19, situations have arisen where chronic patients cannot receive proper hospital treatment or the number of depression patients has surged, increasing demand for digital healthcare overall.

Advanced countries such as the United States and the United Kingdom acted swiftly during last year's COVID-19 pandemic by significantly relaxing regulations on digital therapeutics related to mental illnesses or even starting to cover them under national health insurance. However, South Korea only published guidelines related to approval and licensing procedures defining and setting criteria for digital therapeutic devices in August last year. To date, no digital therapeutics have been officially approved domestically. Even if they are sold in the market, there are concerns about future controversies over telemedicine and the lack of conditions such as health insurance fee schedules. Jo stated, "If the government moves quickly in line with changes in society and the industrial environment, excellent technologies and services can be rapidly established in the market."

There is also dual regulation caused by compartmentalization between ministries. To register as a virtual asset business operator, one must obtain Information Security Management System (ISMS) certification, but to get this certification, there is a regulation requiring at least two months of providing virtual asset-related services. ISMS certification falls under the Ministry of Science and ICT, while virtual asset business registration is under the Financial Services Commission. This regulation, reminiscent of the 'chicken or the egg' debate, is reportedly causing actual harm to some companies.

Jo said, "In Singapore, guidelines are issued after understanding the perspectives of business leaders, and the industry moves accordingly, so unnecessary businesses are not conducted," adding, "Contradictory regulations must be resolved one by one through close consultation between government ministries."

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