"Regulatory Sandbox Must Be Made More Effective"... SME Ombudsman Visits Young Entrepreneurs On Site

On-site Visit to the Gwangju Youth Startup Academy of Korea SMEs and Startups Agency
Young Entrepreneurs Voice Concerns Over Delays in Legal Revisions After Regulatory Sandbox Demonstrations

Young entrepreneurs have expressed concerns that the institutionalization process through regulatory sandboxes is making little progress. Some on-site even remarked, "It is more advantageous not to be selected for the regulatory sandbox." Reflecting such opinions, the Ombudsman for Small and Medium Enterprises has decided to consult with government ministries to enhance the effectiveness of the regulatory sandbox system.

The Ombudsman for Small and Medium Enterprises announced that on the 28th, he visited the Gwangju Youth Startup Academy of the Small and Medium Venture Business Corporation in Buk-gu, Gwangju to listen to opinions related to regulations and difficulties. This meeting was organized to hear about the administrative barriers that young entrepreneurs face in the early stages of starting a business and to seek solutions.

Ombudsman Choi Seungjae toured the studio and prototype production room within the Youth Startup Academy and met with young entrepreneurs to share their challenges. He listened to various opinions on difficulties in entering the market and securing sales channels after starting a business, the need to extend the validity period of startup verification certificates, and the scope of corporate tax reductions for young entrepreneurs, among other issues that startup companies may face.

Choi Seungjae, Small and Medium Business Ombudsman, is listening to the difficulties of young entrepreneurs on the 28th at the Youth Startup Academy of the Small and Medium Venture Business Corporation in Buk-gu, Gwangju. Small and Medium Business Ombudsman

The CEO of Company A, which operates an artificial intelligence (AI)-based brokerage platform, stated, "After regulatory sandbox demonstrations, there is a 'death valley' because the relevant laws and regulations are not being updated," and added, "If inter-ministerial consultations drag on, it may actually be more advantageous not to use the regulatory sandbox." The CEO further suggested, "If the demonstration period ends but the relevant laws have not been revised, it would be helpful to have a legal basis to extend the validity period until the regulations are complete, so that companies do not have to suspend their business."

In response, Ombudsman Choi pointed out, "Contrary to expectations, most demonstration projects approved under the regulatory sandbox system have not led to institutionalization," and added, "In reality, avoidance of responsibility, disagreements between ministries, legislative shortcomings, and failures to coordinate stakeholder interests are causing delays or cancellations in institutionalization, so the sandbox is not fulfilling its role as an incubator for innovation." He continued, "I will consult with government ministries so that the regulatory sandbox can work more effectively, whether by making the application of exemptions more flexible or by extending the period for updating regulations."

Ombudsman Choi also visited SOSLAB, a manufacturer of LiDAR sensors, which are core components for autonomous driving. After touring the R&D center and product demonstration area, he listened to requests from the field for increased opportunities to participate in R&D support programs. At this event, Jo Hankyo, Director of Human Resources Development at the Small and Medium Venture Business Corporation, said, "We will continue to work as a bridge in the field, cooperating with the Ombudsman, so that the difficulties faced by small and medium venture businesses can be reflected in policy."

Ombudsman Choi stated, "Technology-based startups that create high added value with their original ideas and technological capabilities are a key driving force for the nation's economic growth," and added, "I will work with relevant ministries to bring about institutional improvements so that entrepreneurs do not miss out on opportunities for innovation due to administrative procedures or accounting figures."

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