Ministry of SMEs and Startups Collaborates with Special Zone Companies to Achieve 4 Years of Regulatory Sandbox Success

The 1st Regulatory Free Zone Participating Companies Council Meeting Held

On the 25th, the Ministry of SMEs and Startups held a Regulatory Free Zone Participating Companies Council at the Korea Chamber of Commerce and Industry to review the progress of the third Regulatory Free Zone demonstration project, whose special zone period ends this year, and to discuss measures to resolve related regulations and enhance commercialization outcomes.

The Regulatory Free Zone system was introduced in 2019 to support innovation and strategic industries that are difficult to promote due to regulations by providing demonstration exceptions and temporary permits, thereby reorganizing regulations. It aims to foster new industries and new technologies through regulatory innovation and promote balanced regional development.

The third Regulatory Free Zone, designated in August 2020, consists of special zones in fields such as infectious disease response enhancement triggered by COVID-19, medical and non-face-to-face industries related to future environmental changes adaptation, and new industries related to hydrogen, automation, and mobility. The seven special zones include ▲Ulsan Genome Service Industry ▲Gyeongbuk Industrial Hemp ▲Gangwon Liquefied Hydrogen Industry ▲Chungnam Hydrogen Energy Transition ▲Daegu Mobile Collaborative Robots ▲Busan Marine Mobility ▲Jeonbuk Carbon Convergence Industry.

At this council, the progress of regulatory improvements and achievements for each demonstration project of the third Regulatory Free Zone, which ends its period at the end of this year, were reviewed to ensure fruitful results. Participating companies shared difficulties experienced on-site, as well as know-how for successful commercialization such as investment attraction, market development, and follow-up projects. They also discussed ways to create and spread tangible outcomes of the special zone projects, including improving safety verification procedures for demonstration projects, enhancing the utilization of demonstration infrastructure, and activating cooperation networks among special zones.

Kim Hong-ju, Head of the Special Zone Innovation Planning Group, stated, “Through the Regulatory Free Zone Participating Companies Council, we will strengthen close communication and cooperation between the Ministry of SMEs and Startups and special zone companies, becoming one team to focus government support capabilities more intensively on resolving regulations and leveraging the achievements of the special zones to create opportunities for regional growth.” He added, “We will continue to regularize councils for participating companies in all Regulatory Free Zones, visit the field to listen to the voices of special zone companies, and spare no policy support to ensure that the special zone projects become a catalyst for regional innovation growth.”