[Exclusive] Yoon: "Regulations Can't Keep Up with the Market"... Announces Major Overhaul of Metaverse and Other Innovative Technology Systems

Yoon "Speed of Technological Innovation Fails to Keep Up with Industry and Market"
Full Support Expected After Directive to Check 'Regulatory Delay Phenomenon'
Presidential Advisory Council on National Economy Designs New Technology Innovation Regulations

[Asia Economy Reporter Baek Kyunghwan] The Yoon Suk-yeol administration is launching regulatory reforms in new technology sectors such as artificial intelligence (AI), metaverse, and blockchain. Following the deregulation of existing industries like semiconductors and real estate, the government intends to conduct a comprehensive review of future technology markets and begin full-scale support. President Yoon Suk-yeol pointed out the "regulatory lag phenomenon," stating that "while the speed of technological innovation is fast, regulations are not keeping up with industries and markets."

According to the presidential office and government ministries on the 4th, the Presidential Advisory Council on National Economic Policy, which establishes and coordinates national economic policy directions under the direct supervision of the president, began designing "innovation-friendly regulations" addressing regulatory reforms in new technology sectors after holding its first meeting chaired by President Yoon last month. This is a follow-up measure after President Yoon instructed the advisory council and other regulatory reform bodies to examine the "regulatory lag phenomenon." A presidential office official explained, "Previous governments also showed interest in regulatory innovation and pursued it, establishing an external framework, but due to the completely different pace of technological development and regulations, progress has been slow."

[Image source=Yonhap News]

First, the advisory council decided to review regulations within new technology fields such as AI, metaverse, and blockchain. These are all sectors President Yoon identified as new industries and new technologies, and the plan is to undertake legal and institutional improvements related to relevant laws, platform operation regulations, and the autonomy of asset utilization. Unlike the concept of removing regulations tied to existing industries, the emphasis is on designing "friendly regulations." An advisory council official explained, "There are more cases that do not fall under existing laws and regulations, so the ultimate goal is to develop a regulatory system that does not hinder innovation and development."

They also plan to identify cases of regulatory conflicts between new and old industries. For example, unresolved issues between platforms and interest groups like the "Tada incident," and cases like "Toss," where conflicts with existing industries were relatively smoothly resolved, will all be examined. This is interpreted as an effort to create conflict resolution models to prevent side effects in advance.

In the same context, the presidential office and advisory council are also reviewing the 'negative regulation transition method.' Representative cases include the transition of regulations on waste recycling scope and cosmetic ingredients, which created new industrial sectors. This is also an issue President Yoon mentioned, stating, "We will rationalize and redesign regulations by changing the approach."

The advisory council plans to soon propose establishing a "multi-ministry regulatory task force." Since new technology sectors are not confined to specific industries but are developed in connection with a wide range of fields, this task force aims to coordinate among ministries from the regulatory review stage to quickly choose improvements or abolitions.

Additionally, starting with the design of regulations in new technology sectors, the government plans to set medium- to long-term goals this year to discover "unregistered regulations" and "invisible regulations" and conduct detailed reviews. President Yoon himself has pointed out these related regulations as "shadow regulations," emphasizing, "First, we must firmly improve shadow regulations such as administrative guidance unrelated to laws and ordinances, and for issues requiring legal amendments that can be handled by presidential decrees or ministerial ordinances, we must process them swiftly. For difficult and complex regulations, I will personally take charge." A presidential office official stated, "The government's direction is not simply to remove regulations but to provide support tailored to technology, industry, and markets."