[Asia Economy Reporter Changhwan Lee] The Korea Chamber of Commerce and Industry (KCCI) has established the world's first private sector support center for the sandbox system, which exempts regulations that hinder companies' innovative services.
On the 12th, KCCI held an inauguration ceremony for the 'Private Sandbox Support Center' at the Namdaemun Chamber of Commerce building in Seoul, attended by Prime Minister Chung Sye-kyun, KCCI Chairman Park Yong-man, and representatives from large corporations and venture companies.
The sandbox system is designed to suspend or exempt regulations that unreasonably block the market launch of innovative products and services. While the UK, the US, and Japan operate sandboxes mainly through government and financial authorities, Korea is the first to pursue institutional innovation through a new channel in the private sector.
The KCCI Sandbox Support Center was established following the 'Regulatory Sandbox Development Plan' announced in January. The development plan was formally implemented on this day after amendments to the Enforcement Decrees of the Industrial Convergence Promotion Act and the Information and Communications Convergence Promotion Act.
At the inauguration ceremony, KCCI showcased a 110-inch Digital Signage. When Prime Minister Chung and the participating businesspeople pressed a tablet button, the signage played a video titled 'The Road to the Future, Sandbox.'
The video, personally directed by Chairman Park Yong-man, introduced cases such as a shared kitchen company that doubled its growth in one year through the sandbox, a fintech company starting business after six years of dormancy, and a warm-hearted company providing IT technology to people with disabilities.
Chairman Park evaluated, "Although more young people are trying to start businesses despite difficult conditions, many attempts are blocked or business models are 'trimmed' due to systems that preemptively block risks."
He emphasized, "In such situations, the sandbox is regarded as the last stronghold for young people. This is probably because when legislative efforts fail or passive administration blocks business, the sandbox is the last place they turn to."
He added, "We will strive to prioritize 'future potential' over problems to enable business initiatives. I hope the government will work to institutionalize swift review and approval procedures and allow exceptions verified through the sandbox to be permitted on an ongoing basis if there are no significant risks."
Furthermore, he said, "I look forward to the government and private sector cooperating to broaden 'the road to the future' and to find solutions to lower the 'barriers' blocking that path by putting our heads together."
Prime Minister Chung said, "The sandbox is a system to protect the golden time for innovation in new industries where speed is vital. The KCCI Sandbox Support Center was established as Chairman Park Yong-man actively showed his determination to help the sandbox succeed, and the government accepted this positively, creating another innovation in public-private cooperation."
He stated, "When corporate innovation gathers, national innovation is achieved. I hope companies actively utilize KCCI for innovation, and KCCI will work from the companies' standpoint to ensure the system is well utilized."
He continued, "I will emphasize regulatory innovation as a top priority in the post-COVID era. We will also work to resolve regulatory issues that could hinder the Korean New Deal project, which focuses on non-face-to-face industries and digital infrastructure."
Prime Minister Chung said, "The government trusts the capabilities of the private sector. We will do our best to support businesspeople, who are the main actors in economic revitalization, so they can freely develop innovative ideas."
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A KCCI official said, "We are currently handling 57 projects mainly in non-face-to-face medical care and the sharing economy. Although the reviews are ongoing and details cannot be disclosed, there are many surprising business models."
The KCCI Support Center is the only public-private joint support organization based on law in Korea, accepting applications across all industries including the Ministry of Trade, Industry and Energy's Industrial Convergence Sandbox, the Ministry of Science and ICT's ICT Convergence Sandbox, and the Financial Services Commission's Financial Sandbox.
KCCI offers free one-stop support for companies in preparing applications, legal and consulting assistance, and coordination with ministries, aiming to reduce the burden on each ministry as much as possible. Each ministry plans to prioritize private sector projects and resolve them swiftly to achieve unprecedented public-private teamwork.
Following the inauguration, a field meeting chaired by Prime Minister Chung was held, attended by nine companies related to the sandbox. Businesspeople expressed expectations that the establishment of the KCCI Sandbox Support Center would improve convenience and accessibility for companies and urged for legal and institutional innovations to enable more companies to start new ventures.
Samsung Electronics CEO Lee In-yong said, "We appreciate the government and KCCI's efforts for the sandbox. We hope more innovative products and services will emerge, accelerating the transition to a digital economy." Hyundai Motor Company CEO Gong Young-woon (Vice Chairman of Seoul Chamber of Commerce) said, "With the establishment of the private sandbox support center, I hope more companies benefit from improved convenience and accessibility."
Kim Ki-woong, CEO of Wecook, who received sandbox approval last year, said, "The shared kitchen permit opened the door to innovation in the traditional food and beverage industry. After the sandbox exception, annual sales doubled, and food maker startup costs dropped significantly from 100 million won to 4 million won."
Han Jung-hoon, CEO of Home Story Life, who received approval for direct employment of domestic helpers, said, "We continue to create regular jobs for domestic helpers and will serve as a foothold to resolve wages, employment, and stability for platform workers."
Byun Chang-hwan, CEO of Quarasoft, said, "Many new ventures should arise through the sandbox. If startups increase significantly, laws and systems supporting society will change rapidly, creating a virtuous cycle that triggers innovation again."
Woo Tae-hee, Executive Vice Chairman of KCCI, said, "The unique advantage and differentiator of the support center is its deep understanding of companies. From the perspective of understanding companies, we will narrow the communication gap with the government and support the market launch of innovative products and services."
KCCI has officially started operations after the inauguration. Dedicated teams composed of KCCI secretariat staff, consultants, and lawyers provide one-on-one consultations for projects submitted to KCCI. They offer assistance in application preparation, business feasibility, technical consulting, legal advice, coordination with ministries, and follow-up management. Companies approved for the sandbox also receive about 120 million won in demonstration exception funds and 15 million won for liability insurance.
Companies facing difficulties in business due to laws and systems can contact the KCCI Sandbox website or support center for inquiries.
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