Businesses Carry out Their Projects after Relevant Regulations Are Lifted up through Regulatory Sandbox System

Apr 26, 2019

Rscare Service, which specializes in sports equipment for handicapped people, was not able to put its manual wheelchair that is equipped with an electric assistance device on the market even though it developed such product because it could not obtain a certification as there is no standard for electric assistance kits. However, it was able to prepare a groundwork that would allow it to release its product after receiving an exception from a regulatory exception committee. Since then, there have been many requests for its wheelchair from various organizations and businesses.
Hyundai Motor Company requested an installation of hydrogen charging stations in cities after hearing that South Korean Government is carrying out regulatory sandbox system. Because hydrogen charging station is categorized as a high-pressure facility, it was not able to be installed within 200 meters radius from residential areas and schools. South Korean Government decided to provide an exception and allowed Hyundai Motor Company to install charging stations at four locations. Through this opportunity, Hyundai Motor Company is working on expanding hydrogen charging stations on full-scale.
As it has been 100 days since South Korean Government implemented regulatory sandbox system, many businesses are busy with carrying out their projects that were blocked off by regulations. Regulatory sandbox system that is promoted by Ministry of Trade, Industry and Energy (MOTIE) have lifted regulations or given exceptions to businesses that are working on new industries such as future car, bio-health, IoT (Internet of Things), and energy.
◊Businesses carry out their projects that were blocked off by regulations
After receiving an exception, Rscare Service registered its wheelchair to Korea Employment Agency for the Disabled (KEAD). It is planning to supply this wheelchair sometime by end of this month and join a corresponding insurance for the wheelchair. It is currently working on additional tasks such as formulation of a safety manual and education to release its product.
“After receiving an exception, we received a call back from KEAD again.” said CEO Kim Dong-min of Rscare Service. “We are currently receiving support nationally through KEAD and there have been many individual inquiries regarding our product.”
Hyundai Motor Company is currently working on follow-up work to install hydrogen charging stations in cities. It is working on a process that will minimize administrative procedures to install a hydrogen charging station within The National Assembly and it will be screened by two committees for its charging station near Gyedong. Its charging station in Yangjae will go through restructuring and it will be operated starting from second half of this year for certain amount of fee.
Korea Electric Power Corporation (KEPCO), which received approvals for electricity data sharing center and energy market place, is busy with working on follow-up process. KEPCO opened ‘Electricity Big Data Convergence Center’ within KEPCO Art Center on the 16th. It is going to join a liability insurance and push for automation in various procedures such as application for using its sharing center and bringing in and out of data. In addition, it is planning to report its energy marketplace as a telemarketing business. Energy marketplace is expected to be available sometime during first half of this year.
In addition to these businesses, other businesses such as Charzin, JG Industry, JungLAB Cosmetic, and NF are also working on follow-up processes after receiving approvals for their respective projects.

Rscare Service’s manual wheelchair equipped with an electric assistance kit <Rscare Service’s manual wheelchair equipped with an electric assistance kit>

◊Ministry of Trade, Industry and Energy to prepare follow-up management plans for regulatory sandbox system
MOTIE is planning to expand regulatory sandbox system as it has been somewhat established and it is planning to enhance cooperation with other departments to have consistent screening process. It decided to work with Ministry of Science and ICT (MSIT) to vitalize regulatory sandbox system. They are going to hold a joint briefing session for regulatory sandbox system and look for additional items on the agenda and mutually share results from managing and screening regulatory sandbox system to screen similar items in an uniform manner. In addition, they are planning to prepare ‘regulatory sandbox follow-up management plans’.
Industries believe that regulatory sandbox system has contributed to abolishing regulations within new industries. Unlike British Government and Japanese Government that operate their respective regulatory sandbox systems centered on financial industries, South Korean Government’s regulatory sandbox system includes entire industries. It seems that businesses are beginning to be aware of regulatory sandbox system as there have been successful cases within new industries.
However, follow-up process by relevant departments can take a while even if a regulation is lifted up by MOTIE. Some say that screening process after applying for regulatory sandbox is taking long time. They propose that there needs to be additional measures such as an increase in number of personnel for regulatory sandbox system to be maintained in a consistent manner.
“Although there is thoughtful consideration such as consulting by experts during a regulatory sandbox consulting process, it takes quite a while for an approval process and follow-up measures.” said a representative for a business that received an approval. “There needs to be faster processing and follow-up measure since each day is important for small and medium businesses for them to release their products.”
Staff Reporter Byun, Sanggeun | sgbyun@etnews.com

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