[Regulatory Republic] Drones Responsible for On-Site Management... Escaping the Net with 'Sandbox'

'Innovation Lab' Regulatory Sandbox Utilization
Demonstration Without Being Bound by the Clockwise Flight Principle
Meisa "Hopeful Outlook Including Workforce Shortage Resolution"
Cases of Legal and Institutional Improvements Like Shared Kitchens Emerging One After Another

The Aviation Safety Act includes the 'Visual Flight Rules' that drone pilots must follow. This regulation allows drones to be operated only within the range where they can be visually confirmed. Due to these regulations, the startup Meisa had to endure inefficiencies in conducting its business. Meisa is a platform company that provides services to collect and analyze various data by deploying autonomous drones at construction sites. The autonomous drones have the technology to capture wide construction sites in one go along a predetermined route and return. However, due to these regulations, the drones had to be repeatedly flown only up to the visible range and then landed.

Autonomous Flight Without Drone Pilots → Data Analysis

From May to November last year, Meisa conducted demonstrations at one construction site and one civil engineering site each, both projects by Hyundai Construction, through the government's regulatory sandbox program. Argosdyne, a developer of drone unmanned operation systems, also participated in the demonstration alongside Meisa. By utilizing autonomous drones without being constrained by the Aviation Safety Act, they were able to reduce business costs and time.

The construction site management process using drones is as follows. First, a drone with a flight schedule input automatically flies according to the schedule. The advantage is that site shooting data can be acquired without a skilled drone pilot. The drone, having flown an optimized route, autonomously returns to a designated location to recharge its battery and transmit data. The images captured by the drone are reconstructed into a 3D model to assist in construction site management tasks.

Kim Young-hoon, CEO of Meisa, said, "We confirmed that automated remote site management is not a story of the distant future," adding, "Through the regulatory sandbox, which is an 'experimental ground for innovation,' we were able to present hopeful prospects such as alleviating labor shortages and improving productivity at construction sites."

In addition, the regulatory sandbox system provides companies with opportunities for innovation and enhances public convenience. Although non-face-to-face medical consultations between medical personnel and patients are prohibited under the Medical Service Act, temporary permits were granted in June 2020 under conditions such as not violating local laws and prohibiting referrals to specific medical institutions. About a year after the temporary permits were issued, 172 consultations were recorded for overseas nationals worldwide. Also, with conditions to establish systems preventing personal information leakage or forgery, a temporary permit was granted for the mobile driver's license service, resulting in over 2 million subscribers.

Drone stock photo.

Legal Amendment Officially Allows 'Shared Kitchens' Business

Another new business that benefited from the regulatory sandbox is the 'shared kitchen.' According to the Ministry of Food and Drug Safety, the government has been operating the shared kitchen service under the regulatory sandbox since 2019. By having multiple operators share a kitchen equipped with cooking facilities, investment cost burdens were reduced and entry barriers for startups lowered. Twenty-six shared kitchen operators were designated as pilot project targets, and the number of shared kitchen users reached 270.

Until now, under the Food Sanitation Act, it was impossible for multiple businesses to share a single business location (kitchen) for startup purposes. B2B (business-to-business) distribution and sales of food manufactured or processed in shared kitchens to other distribution companies rather than final consumers were also prohibited. However, safety and other factors were proven through the regulatory sandbox, and from December 30 last year, the Food Sanitation Act amendment including the concept of shared kitchens was enforced, officially allowing the shared kitchen business.

Simple Project Company (brand name Wecook) is a startup that first introduced the concept of shared kitchens in Korea and has been conducting pilot projects since August 2019. Kim Hee-hyun, Executive Director of Wecook, said, "This legal amendment is evidence that companies have been able to operate shared kitchens stably and provide practical help to the F&B startup ecosystem over the past two years under the regulatory sandbox." Wecook plans to evolve into a company that provides integrated solutions necessary for those preparing to start food service businesses beyond just the shared kitchen business.

Meanwhile, as of September last year, the government announced that in just two and a half years since implementing the regulatory sandbox system, a total of 509 cases were approved, attracting investments of 1.9 trillion KRW, increasing sales by 83.9 billion KRW, and creating over 3,800 jobs.