Ministry of Science and ICT Enhances Effectiveness of ICT Regulatory Sandbox...Amends Law to Prevent Business Suspension

Amendment to the Information and Communications Convergence Act Approved at Cabinet Meeting on the 7th
Request for Regulatory Revisions and Temporary Approval Now Possible

[Asia Economy Reporter Minyoung Cha] The Ministry of Science and ICT announced that the amendment to the "Special Act on the Promotion of Information and Communications and Convergence," which passed the National Assembly on the 29th of last month, was approved at the Cabinet meeting on the 7th. The amendment will take effect six months after its promulgation.

This amendment aims to support businesses that have received ICT regulatory sandbox demonstration exceptions so that they do not have to suspend operations even after the expiration of the exception period. The existing validity period was generally two years, extendable up to four years.

Going forward, businesses that have received demonstration exceptions can request regulatory adjustments, and if the need for regulatory revision is recognized, the demonstration exception can be converted into a temporary permit to allow continuous operation.

The regulatory authorities will ▲ review the necessity of legal revisions based on the results of the exception application, ▲ report to the ICT Regulatory Sandbox Deliberation Committee, ▲ and if safety and other factors are proven and the committee determines that legal revisions are necessary, ▲ the regulatory authorities will immediately begin legal revisions. In case of disagreements, the matter will be reviewed by the Regulatory Reform Committee.

The amendment also includes grounds for converting demonstration exception businesses into temporary permits if it is not clearly prohibited by other laws when legal revisions have begun.

When converted to a temporary permit, the validity period is considered extended until the completion of legal revisions, except in cases where it is explicitly prohibited by law.

The Ministry of Science and ICT stated, "This amendment will alleviate concerns about business suspension for companies approved for demonstration exceptions, enabling stable business operations," and added, "It will also align the operation of the regulatory sandbox system with other ministries operating the same system, thereby enhancing convenience for companies using the regulatory sandbox system."