As convergent services and products beyond the scope of existing laws and systems are emerging with accelerating convergence based on innovative technologies such as AI, big data, and IoT, the regulatory sandbox, which mainly provides “regulatory exceptions for demonstration” and “temporary permission” for new industrial convergence products and services, was introduced (Industrial Convergence Promotion Act partially revised on October 16, 2018; enforced on January 17, 2019).

However, even though the business entity granted any regulatory exception for demonstration proves safety through demonstration, there is still a concern that the business may be interrupted if statutes and regulations are not improved within the validity period of the regulatory exception. In this regard, this Act aims to prepare the basis to request the improvement of statutes and regulations and shift to temporary permission for the regulatory exception business whose safety has been demonstrated to allow the business to proceed without interruption.

In addition, considering that regulatory exceptions for demonstration and temporary permission are operated by the competent ministry, this Act aims to allow a public official in the Ministry of Trade, Industry and Energy as designated by the Minister of Trade, Industry and Energy to serve as a secretary of the Deliberative Committee on Regulatory Exceptions for only matters related to regulatory exceptions for demonstration and temporary permission.

Details

A. Allow the business entity granted any regulatory exception for demonstration to request the improvement of statutes and regulations related to the regulatory exception from the Minister of Trade, Industry and Energy and heads of related administrative agencies no later than the end of the regulatory exception, and shift to temporary permission under Article 10-6 if it is not clear to prohibit the business under other applicable laws as safety has been demonstrated by specifying a procedure that determines legal necessary based on safety and efforts to improve statutes and regulations are under way (Article 10-5 newly inserted)

B. Allow a public official in the Ministry of Trade, Industry and Energy as designated by the Minister of Trade, Industry and Energy to serve as a secretary of the Deliberative Committee on Regulatory Exceptions for only matters related to regulatory exceptions for demonstration and temporary permission (Article 8 paragraph 4)

Article 10-5