Ministry of Government Legislation Establishes Fast-Track System for 'Regulatory Sandbox'

Regulatory Sandbox Approval Period Expected to Be Significantly Shortened to 2 Months

The approval period will be significantly shortened with the establishment of the fast-track procedure for the regulatory sandbox to revitalize new industries. The regulatory sandbox refers to a system that exempts or defers existing regulations for a certain period when new products or services are launched.

Ministry of Government Legislation. / Photo by Hyunmin Kim kimhyun81@

On the 1st, the Ministry of Government Legislation announced that it will prepare a fast-track procedure for the regulatory sandbox and introduce exemption provisions for proactive administration, and will publicly announce a batch amendment bill for six related regulatory sandbox laws, including the “Industrial Convergence Promotion Act,” for 41 days from the 2nd of this month to the 12th of next month.

With the establishment of the fast-track procedure, the approval period for the regulatory sandbox is expected to be drastically shortened from an average of 4 to 5 months to 2 months in cases where similar precedents exist.

The Ministry of Government Legislation, the Office for Government Policy Coordination, and other related ministries have continuously identified areas for improvement in the current system through special task forces (TF) in related ministries and the “Regulatory Sandbox Innovation Companies Meeting” chaired by the Prime Minister, aiming to establish the regulatory sandbox as a core regulatory innovation platform driving new industries in Korea. The current amendment bill reflects the discussions held so far.

This amendment will be promoted through a batch amendment approach led by the Ministry of Government Legislation to allow innovative companies to quickly experience the effects of the amendments to the six laws at once.

Accordingly, if new products or services that have previously received regulatory sandbox approval are similar or identical in content or method, the approval process will be boldly simplified to enable rapid commercialization.

Additionally, exemption provisions will be introduced so that no liability is imposed in cases where there is no intentional or gross negligence in actively handling tasks related to regulatory sandbox approval, management, and supervision. Furthermore, a system to reward those who contribute to the introduction of new technologies or the revitalization of new industries will be established, providing a foundation for public officials to perform their duties creatively and proactively.

Lee Wankyu, head of the Ministry of Government Legislation, stated, “The regulatory sandbox has greatly contributed to providing opportunities for new products or services, which were previously hindered by existing regulations, to quickly enter the market.” He added, “We will continue to collaborate with related ministries such as the Office for Government Policy Coordination to actively identify and improve systems or regulations that hinder the activation of innovative products or services.”

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