'Sandbox' Introduced to Freely Demonstrate Technologies Related to Smart Cities

[Asia Economy Reporter Chunhee Lee] From the 27th, a 'sandbox' (regulatory exemption system) will be introduced in industries related to smart cities.

The Ministry of Land, Infrastructure and Transport announced on the 26th that, following the approval of the amendment to the Enforcement Decree of the 'Smart City Act' at the Cabinet meeting on the 18th, regulatory exemptions and demonstration project funding packages under the Smart City Act will be available from the 27th.

Previously, in September last year, the Ministry selected 18 companies through the 'Smart City National Pilot City Regulatory Sandbox Activation Project' public contest and supported them with approximately 200 to 300 million KRW for one year to establish business plans and design costs. Selected projects include autonomous electric wheelchairs and electric kickboard sharing services capable of riding on bicycle lanes. The Ministry plans to apply regulatory exemptions to the 18 selected projects and particularly support some projects with excellent planning and design with demonstration project funding of around 500 million KRW for one year.

With the introduction of this enforcement decree, a 'Smart Regulation Innovation Zone' where sandbox system exemptions apply will be newly established. Businesses intending to conduct smart innovation projects or demonstration projects within this zone can establish a business plan, receive review from the local government head, and then apply for approval from the Minister of Land, Infrastructure and Transport. The Minister will decide on approval after deliberation by the National Smart City Committee. Approved projects can be implemented for up to six years.

The Ministry has also put safety measures in place to prevent harm during the sandbox introduction process. Approval criteria for business plans will consider impacts on public health, safety, and the environment, and conditional approvals related to environment, safety, and health are also possible. Furthermore, if safety concerns arise during implementation inspections, necessary measures such as approval cancellation can be taken.

Businesses are required to subscribe to liability insurance or prepare compensation plans at least 30 days before project implementation. If actual human or material damages occur, the business must bear compensation responsibility unless it proves no intent or negligence.

Baek Seong-ho, Director of the Urban Economy Division at the Ministry, said, “Through the smart city-type regulatory sandbox system, services that were previously blocked by regulations and could not even start will now be freely attempted, leading to innovative services.” He added, “We will strive to ensure that innovative services within smart cities are created more abundantly by having each ministry’s systems operate complementarily under the coordination of the Office for Government Policy Coordination.”