Lee Young "Need to Introduce 1-Year Demonstration Exemption 'Pre-Sandbox' Exclusively for Startup Companies"

Minister of SMEs Announces at 'Economic Regulation Innovation TF Meeting'
Linking Regulatory Sandbox for Startups
Listening to Field Opinions... Announces 24 Improvement Tasks

Minister Lee Young, Ministry of SMEs and Startups Photo by Yonhap News

[Asia Economy Reporter Kim Bo-kyung] Lee Young, Minister of SMEs and Startups, stated the need to introduce a 'Pre-Sandbox' system that grants short-term demonstration exceptions within one year for startup companies.

Minister Lee made these remarks on the morning of the 17th at the 'Economic Regulatory Innovation TF Meeting' chaired by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho.

He said, "The regulatory sandbox has greatly contributed to improving regulations for new industries, but it is difficult for startup companies to utilize it alone," adding, "This is because the paperwork burden is high and the requirements are strict to receive demonstration exceptions or temporary permits for a total of four years."

He continued, "There is a need to introduce a Pre-Sandbox that grants short-term demonstration exceptions within one year by verifying only the minimum requirements for startup companies."

The purpose is to support companies recognized for business feasibility through the Pre-Sandbox by linking them to the official sandbox, enabling startups to pursue new businesses more conveniently.

He said, "The Ministry of SMEs and Startups will take the lead as a connector between SMEs, venture companies, and regulatory agencies to think ahead and solve problems together."

Additionally, on the same day, the Ministry of SMEs and Startups announced the results of discussions with related ministries over two months regarding regulatory reform tasks for SMEs and venture companies heard from the field.

Minister Lee stated, "So far, we have identified and proposed 224 tasks representing SMEs and venture companies," and added, "This time, we are announcing 24 tasks that can be improved immediately."

He said, "The remaining tasks will also be thoroughly reviewed through the Economic Regulatory Innovation TF and regulatory adjudication to resolve the difficulties of SMEs and venture companies."

He emphasized, "If we have devoted all efforts to breaking down individual regulatory tasks during the five months since the new government took office, now is the time to shift the regulatory innovation paradigm and consider institutional approaches to proactively and fundamentally relieve regulatory burdens on startup companies."

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