KCCI Proposes 'Mega Sandbox' to Lee Administration... Regulatory Reform Gains Momentum

KCCI Proposes Comprehensive Regulatory Exceptions to National Planning Committee
"Granting Autonomy to Local Governments for Regulatory Sandboxes Will Accelerate Progress"

Jo Seungrae, spokesperson for the National Planning Committee, is giving a briefing on current issues at the Changseongdong Annex of the Seoul Government Complex in Jongno-gu, Seoul on the 23rd. 2025.6.23 Photo by Jo Yongjun

The Korea Chamber of Commerce and Industry (KCCI) has requested the Lee Jaemyung administration to introduce a "mega sandbox" as a tool for regulatory innovation. The National Planning Committee, which is responsible for shaping the current administration's policy framework, is reviewing more comprehensive and regionally tailored regulatory reform measures based on the KCCI's proposal.

On the 9th, Jo Seungrae, spokesperson for the National Planning Committee, stated during a briefing, "Today, we received a proposal for a 'mega sandbox' from the Korea Chamber of Commerce and Industry," and added, "We are discussing a comprehensive regulatory exception system to promote regional growth and innovation." The mega sandbox is a system that bundles and relaxes multiple regulations at once, rather than targeting specific issues. This allows for a much broader overhaul of existing regulations.

Jo explained, "The current regulatory sandbox is operated mainly by the central government, which has revealed limitations in terms of speed and specificity." He continued, "There was a proposal to grant autonomy to local governments and design regulatory sandboxes at the regional level, which would enable faster and more effective policy implementation." The National Planning Committee is currently considering a plan to grant a certain level of authority to local government heads, allowing for the operation of regionally centered regulatory sandboxes.

The government has also begun designing systems to establish a proactive administrative culture within the civil service. Jo stated, "We are receiving reports from the Ministry of Personnel Management and the Board of Audit and Inspection on administrative innovation measures for public officials," and added, "We also plan to completely review the audit system to ensure that proactive administration is implemented in practice."

In particular, considering that the "policy audit" system promoted by the Board of Audit and Inspection has had an excessively discouraging effect on public officials, the government is reviewing ways to shift toward an incentive-based administrative culture.

The National Planning Committee is also in the process of shaping the current administration's regulatory reform philosophy. Jo stated, "In an era of complex crises, regulatory design is needed to enhance national competitiveness," and added, "We will develop customized regulatory models that take into account structural challenges such as low growth, regional extinction, and AI."