"Used Car Performance and Condition Now Checkable via App"...KCCI and Ministry of Science and ICT Approve Electronic Signature Service

ICT Sandbox Review Committee Convenes
Pilot Project for Veterinary Hospital Pharmaceutical Management Platform

A new pathway has opened for checking used car performance and condition inspection records conveniently via an app during used car transactions. Previously, these records could only be verified in paper form, but now, with the introduction of electronic document verification, the prevention of forgery and alteration is also expected.

The Korea Chamber of Commerce and Industry and the Ministry of Science and ICT held the "ICT (Information and Communication Technology) Sandbox Review Committee" meeting on the 11th and approved a total of eight projects, including two submitted by the Sandbox Support Center of the Korea Chamber of Commerce and Industry.

During the meeting, the "Electronic Signature Service for Used Car Performance and Condition Inspection Records," submitted by A Motors, was approved through an active interpretation. This service allows used car dealers to provide the performance and condition inspection records, which were previously delivered to buyers in paper form, as electronic documents via a mobile app, with consent obtained through electronic signatures.

Korea Chamber of Commerce and Industry building. Photo by Yonhap News.

The used car performance and condition inspection record is a document detailing the inspection results of key components such as the vehicle’s frame, engine, transmission, and braking system. The current Automobile Management Act requires used car dealers to provide this information in writing, making the possibility of electronic notification unclear. As a result, there have been significant concerns about the loss, forgery, alteration, and proxy signing of paper documents during transactions.

The Ministry of Land, Infrastructure and Transport actively interpreted the law, stating that if the requirements of the Electronic Documents Act are met, electronic documents can be regarded as written notifications. The Review Committee also approved this active interpretation, noting, "Electronic document verification and storage can prevent forgery, alteration, and loss, and are expected to reduce the costs of printing and sending paper documents."

In practice, a prospective used car buyer, Mr. A, said, "I used to wonder whether the price I was paying for a used car was reasonable, but now that I can check the performance and condition inspection records and even sign electronically, I feel somewhat reassured." Song Daeil, CEO of A Motors, stated, "Consumers will be able to thoroughly review the performance and inspection history of the used cars they wish to purchase remotely. We hope to contribute to revitalizing the market by enhancing the transparency and reliability of used car transactions."

At the same meeting, the "Exclusive Pharmaceutical Purchase and Management Service for Veterinary Hospitals," submitted by Vetec Korea Co., Ltd., was also approved as a regulatory sandbox pilot project. This service enables pharmaceutical wholesalers to supply both human and veterinary medicines directly to veterinarians through an online platform dedicated to veterinary hospitals, with purchase and usage data managed electronically.

Because veterinary medicines are limited for treating companion animals, human medicines are frequently used. However, under the Pharmaceutical Affairs Act, veterinarians have had to visit pharmacies in person to purchase human medicines, and concerns have been raised about contamination and deterioration during distribution. According to the 2020 report by the Pharmaceutical Policy Research Institute, of the approximately 380 human medicine ingredients used in animal hospitals, only about 60 have been approved as veterinary medicines.

During the approval process, the Korea Chamber of Commerce and Industry and the Ministry of Science and ICT consulted with the Ministry of Health and Welfare, and a recommendation was formulated through discussions among relevant ministries, veterinary associations, and private experts at the Office for Government Policy Coordination’s New Industry Regulatory Innovation Committee.

The Review Committee explained, "Through this pilot, reducing the distribution stages of medicines for veterinary hospitals can lower purchasing costs, and accumulating data on the use of human medicines will help establish future policies and post-management systems." However, conditions were also attached, such as establishing a system for managing and reporting pharmaceutical sales records and prohibiting the supply of human medicines that are identical in ingredients and formulation to veterinary medicines.

Lee Seungyun, CEO of Vetec Korea Co., Ltd., said, "With a specialized delivery system, we can prevent contamination and deterioration, and the platform will also improve inventory management efficiency at animal hospitals. We will do our best to contribute to enhancing the transparency and safety of pharmaceutical distribution for veterinary hospitals."

Lee Jongmyung, Head of the Industrial Innovation Division at the Korea Chamber of Commerce and Industry, emphasized, "This Review Committee achieved meaningful results, such as approving an online platform project that had been delayed for a long time through coordination and agreement among stakeholders. We will continue to actively support the demonstration of new technologies and services based on field demand, so that the sandbox can become established as a platform for promoting innovation."

Since the introduction of the regulatory sandbox system in January 2019, a total of 290 ICT sandbox exemptions have been granted to date. Since May 2020, the Korea Chamber of Commerce and Industry has operated the Regulatory Sandbox Support Center and has supported the approval of 123 of these projects.