Approval of Regulatory Sandbox for Customized Pet Cosmetics and More

KCCI-Ministry of Industry
Industry Convergence Sandbox Deliberation Committee Held
12 Out of 22 Cases Jointly Approved

The Korea Chamber of Commerce and Industry in Jung-gu, Seoul, where the Commerce Day ceremony was held on the 31st. Photo by Kang Jin-hyung aymsdream@

The Korea Chamber of Commerce and Industry Sandbox Support Center and the Ministry of Trade, Industry and Energy held the 'Industrial Convergence Regulatory Sandbox Deliberation Committee' on the 27th. On this day, the committee approved a total of 22 cases, including 12 cases such as 'customized animal quasi-drug sales' and 'new electricity services to expand consumer choice,' which were submitted through the KCCI Sandbox Support Center.

Launch of Customized Pet Cosmetics, Expansion of Pet-Friendly Transportation and Dining... Enhancing Convenience for Ten Million Pet Owners

On this day, Cosmax Pet's application for 'customized animal quasi-drug sales' received approval for a demonstration exemption. This business manufactures and supplies various products using a modular method that combines functional ingredients and fragrances with the main ingredients (base products such as shampoo and rinse) of animal quasi-drugs that have completed product approval (notification).

By blending functional ingredients that help with oil control, moisturizing, and volume enhancement, effective coat management can be achieved, such as improving skin texture, preventing skin diseases, and enhancing moisturizing functions tailored to individual coat (skin and fur) conditions that vary by age and breed. It is possible to quickly manufacture customized products upon order by combining functional ingredients in a modular form with base products.

However, according to Article 5 of the current Animal Quasi-Drug Handling Regulations, safety tests and data submission are required for product approval (notification) of animal quasi-drugs. Even when combining functional ingredients with main ingredients that have already received product approval, a safety test taking at least six months must be conducted again, making it impossible to quickly manufacture various types of customized new products.

The applicant company requested an exemption from safety tests at the product approval stage for modular products, arguing that functional ingredients also use internationally registered raw materials and apply cosmetic safety standards for hazardous substances, thereby ensuring safety.

The Deliberation Committee granted a special exemption from submitting safety test data required for product approval for about 60 product combinations, stating, "Consumer choice will be expanded, and the pet industry ecosystem is expected to grow." However, conditions such as prior safety confirmation of target animals for each functional ingredient module, demonstration monitoring, and recall and disposal of problematic products were added.

Cosmax Pet plans to conduct demonstrations by securing more than 20 customized animal quasi-drug client companies.

Demonstration exemptions were also approved for pet transportation services using rental cars (Psychic) and pet-friendly restaurants (Bite Me and three other companies). This is a special exemption for the current restrictions under the Animal Protection Act, which only allows animal transportation businesses using vehicles owned by drivers, and the Food Sanitation Act, which prohibits pets from entering food service establishments.

With this approval, pet transportation services using rental cars will enable travel between adjacent cities and provinces centered on Goyang-si and Paju-si in Gyeonggi Province, and pet-friendly restaurants will be available in areas such as Gangnam and Sinsa in Seoul, Yeongtong in Suwon, and Goyang in Gyeonggi. This is expected to improve convenience by expanding mobility and dining options for pet owners and their pets.

The Korea Chamber of Commerce and Industry stated, "We expect the pet industry to be further revitalized through the expansion of new pet products and services via the regulatory sandbox." They added, "In the era of ten million pet owners, we will contribute to establishing standards for harmonious coexistence among pet owners, pets, and non-pet owners, and to spreading a pet-friendly culture."

Demonstration of New Electricity Services Including Seasonal and Time-Based, and EV Charging Combined Tariffs... Opening the Way for Electricity Rate Choices

The 'New Electricity Service to Expand Consumer Choice (Busan Jeonggwan Energy)' will also enter demonstration. This service allows electricity users to directly select new electricity services composed of various tariffs to save on electricity bills.

Electricity users will be able to choose tariffs such as seasonal and time-based rates and electric vehicle charging combined tariffs. By linking household electricity meters, communication equipment servers, and service websites with an intelligent remote metering system and smart plugs, users can check real-time electricity prices and consumption and adjust their electricity usage to reduce bills. Households owning electric vehicles can also receive discounts on electricity bills when meeting specific conditions such as monthly charging amounts.

To provide this service, Busan Jeonggwan Energy, a district electricity business operator, had to change and obtain approval for the electricity supply terms and conditions under Article 16 of the current Electricity Business Act. However, since new electricity services require data collection through testing first to design and provide sophisticated and diverse customized electricity tariffs, it was unreasonable to require prior approval of terms and conditions changes.

The Deliberation Committee approved a special exemption to allow demonstration of new electricity services without changing the terms and conditions first, stating, "Customized tariffs for electricity users will not only reduce electricity bills but also enable load reduction according to power demand response, leading to efficient and stable power grid operation." However, conditions such as prohibiting tariffs less favorable than KEPCO's 'Basic Electricity Supply Terms and Conditions' and undergoing Electricity Committee review for terms and conditions changes when implementing the main project after the demonstration must be observed.

Busan Jeonggwan Energy plans to demonstrate the new electricity service in 2,105 households across three apartment complexes and 1,023 commercial stores in Jeonggwan New Town, Gijang-gun, Busan.

Kang Myung-soo, Head of the Public Projects Division at the Korea Chamber of Commerce and Industry, said, "Approvals for sandbox projects for innovative products and services in pet services and energy/electricity sectors are coming one after another." He added, "We hope that through the sandbox, not only will innovative industries be revitalized, but consumer choice and benefits will also be further expanded."