US-UK Style Electric Vehicle Conversion Now Allowed in Korea... KCCI Sandbox

Industry Convergence Sandbox Deliberation Committee Meeting on the 5th
"Active Support for Carbon Reduction and Circular Economy Revitalization Projects"

In South Korea, it has become possible to convert internal combustion engine vehicles into electric vehicles or to produce petroleum products by pyrolyzing waste tires.

The Korea Chamber of Commerce and Industry (KCCI) Sandbox Support Center announced on the 5th that it held the 'Industrial Convergence Regulatory Sandbox Deliberation Committee' with the Ministry of Trade, Industry and Energy and approved a total of 49 cases.

The project to manufacture internal combustion engine trucks into electric trucks (JM Wave), which received a demonstration exemption, involves dismantling the internal combustion engine parts of old 1-ton trucks and installing components such as electric motors and batteries to convert them into electric trucks. JM Wave, an electric vehicle conversion company, independently developed electric vehicle conversion technology using modules and platform methods used in global markets such as the United States and the United Kingdom. JM Wave also secured overseas investments and orders. Although it established customized facilities, equipment, and personnel to convert internal combustion engine vehicles into electric vehicles, it was unable to operate the business because it could not meet the facility and equipment requirements under current domestic laws.

[Image source=JM Wave]

The Ministry of Trade, Industry and Energy and KCCI requested a regulatory exemption from the Ministry of Land, Infrastructure and Transport, asking to allow electric vehicle tuning work under certain conditions. The Ministry of Land, Infrastructure and Transport accepted the exemption on the condition that instead of having automobile repair facilities and equipment, the company meets the tuning work requirements as a vehicle manufacturer and secures facilities and personnel capable of handling high-voltage electrical devices. The deliberation committee also approved the demonstration exemption, stating that "upcycling 1-ton internal combustion engine trucks, which have low scrappage rates and high emission pollution, can contribute to reducing environmental pollution and emissions." JM Wave plans to convert 300 internal combustion engine trucks into electric vehicles and supply them to logistics companies.

The waste tire pyrolysis refined oil utilization petroleum product production project (SK Incheon Petrochem) also received a demonstration exemption. This project involves crushing and pyrolyzing waste tires to obtain pyrolysis refined oil, which is then used as feedstock in petroleum refining processes to produce petroleum products. Current law (Article 2 of the Petroleum Business Act) only allows petroleum and petroleum products as raw materials in petroleum refining processes, making it impossible to use waste tire pyrolysis oil as feedstock. The Ministry of Trade, Industry and Energy accepted the production of petroleum products using waste tire pyrolysis oil as feedstock on the condition of quality assurance, and the deliberation committee designated the demonstration exemption with conditions such as quality inspections by specialized institutions. SK Incheon Petrochem plans to produce petroleum products such as naphtha, aviation fuel, and diesel by inputting up to 22,500 tons of pyrolysis oil annually.

On March 3rd, at the SK Incheon Petrochem headquarters in Seo-gu, Incheon, (from left) Park Young-sang, Head of KDB Industrial Bank Central Region, Choi Yoon-seok, President of SK Incheon Petrochem, and Hwang Yong-kyung, CEO of LD Carbon, signed an investment contract for LD Carbon's eco-friendly recycling using waste tires with SK Incheon Petrochem.
[Photo by SK Innovation]

The electric special ambulance demonstration project (Hyundai Motor Company and the Fire Department) is a project to manufacture special ambulances based on electric vehicles and demonstrate their safety and efficiency. Under current law (Article 44-2 of the Emergency Medical Service Act), operating an ambulance requires submitting documents such as the vehicle registration certificate, but electric special ambulances with temporary operation permits cannot obtain vehicle registration certificates, making operation registration impossible.

The Ministry of Trade, Industry and Energy and KCCI requested an exemption from the Ministry of Health and Welfare, asking to allow operation registration for ambulances temporarily operated before official vehicle registration. The Ministry of Health and Welfare permitted the operation of electric special ambulances without vehicle registration certificates on the condition that the vehicles are manufactured according to ambulance standards and undergo safety inspections equivalent to officially released vehicles. The deliberation committee designated the demonstration exemption with conditions such as securing vehicle safety, stating that "compared to existing ambulances, the medical space is expanded and the ambulance process is digitized, which can further enhance public safety."

Special Ambulance Made by Hyundai Motor Company
Photo by Hyundai Motor Company

Kang Myung-su, Head of the Public Projects Division at KCCI, said, "New resource circulation business models that regenerate or recycle used products were approved at this regulatory sandbox deliberation committee," and added, "KCCI will continue to actively support businesses that contribute to carbon reduction and promote the circular economy to pass through the sandbox."

The KCCI Sandbox Support Center is the first private sandbox organization in South Korea. Companies that cannot commercialize their businesses due to the absence of laws or outdated laws can receive consulting through the KCCI sandbox. The service is free of charge.

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