Regulatory Improvement Through Demonstration, 3 Trillion Won Regional Investment and 3,000 Job Creation Effects

The 9th Regulatory Sandbox Committee Meeting Held

[Asia Economy Reporter Kim Cheol-hyun] It has been reported that the Regulatory Free Zones have achieved regional investments worth over 3 trillion won and created more than 3,000 jobs. On the 24th, the government held the 9th Regulatory Free Zone Committee (hereafter, the Committee) meeting in writing, chaired by Prime Minister Han Deok-soo, to review and approve follow-up plans for special measures in zones where the demonstration period has ended.

According to the Committee, five projects with completed regulatory improvements can be commercialized immediately, thereby promoting rapid market entry, and six projects with verified safety will be granted temporary permits to proceed with full regulatory improvements. Additionally, for 21 projects requiring additional time for safety verification, the demonstration special measures period will be extended to continuously prove the necessity of regulatory improvements without halting the projects.

During this Committee meeting, the operational achievements so far were also shared. Since July 2019, the government has designated 32 zones across 14 metropolitan cities and provinces excluding the Seoul metropolitan area, through seven rounds, allowing regulatory exemptions for 78 detailed projects. These projects have promoted demonstration projects in new industries such as biohealth, hydrogen energy, eco-friendly vehicles, autonomous driving, and ICT.

This has resulted in attracting investments worth 3.0216 trillion won, creating over 3,000 jobs, filing 490 patents, and generating sales of 95 billion won.

Furthermore, qualitative achievements such as establishing new industry testbeds, creating infrastructure for regional strategic industry workforce development and startup activation, and laying the groundwork for global market entry have been added, positioning the Regulatory Free Zones as icons of regional economic revitalization and balanced regional development. Lee Young, Minister of SMEs and Startups and secretary of the Committee, stated, "Through these follow-up special measures for the Regulatory Free Zones, it is expected that new technologies with improved regulations will swiftly enter domestic and international markets," adding, "We will continue to foster Regulatory Free Zones with high potential for overseas market entry as global innovation zones through linkage and development."