[What's Changing Next Year] Regulatory Sandbox Accelerated and Startup Criteria Eased... Lower Barriers for Business Activities

Shortened Regulatory Sandbox Reviews and Extended Validity Periods
Comprehensive Revisions to Startup, Research, and Public Procurement Systems

Starting in 2026, regulatory procedures at industrial sites will be streamlined. In addition, systems supporting business activities for small and medium-sized enterprises and startups-such as those related to entrepreneurship, research and development, and public procurement-will be significantly revised. The aim is to accelerate regulatory response times and reduce administrative burdens, thereby facilitating market entry and growth for businesses.

First, the regulatory response procedures that have hindered the commercialization of new industries will also be expedited. The Industrial Convergence Regulatory Sandbox system will be improved, shortening the review period and enabling faster adjustment of unreasonable regulations. As a result, the time required from demonstration of new technologies and services to commercialization is expected to decrease.

For identical or similar cases, the period for collecting opinions from relevant ministries will be reduced from the current 30 days to 15 days, cutting it in half. Furthermore, reviews and decisions can now be made on an as-needed basis by specialized subcommittees, bypassing the Regulatory Sandbox Special Review Committee. This is expected to significantly shorten the time from application to final decision for the regulatory sandbox.

The validity period for regulatory exemptions will also be granted more flexibly according to the characteristics of each business. Previously, both demonstration exemptions and temporary permits were limited to a maximum of 2+2 years. Going forward, demonstration exemptions can be granted for up to 4+2 years, and temporary permits for up to 3+2 years. This measure reflects the characteristics of new industries that require long-term demonstration periods.

The obligation to revise related laws will also be strengthened. In the past, the process only required initiating legal revisions after granting regulatory exemptions. Now, completion of legal revisions will be mandatory before the exemption period expires. However, even if there are delays in the implementation of laws or in the final approval process, regulations will also be established to ensure that exemptions are not terminated prematurely.

A legal framework will also be established to systematically foster and support corporate research institutes and research and development organizations. Until now, research and development support was provided on a project-by-project basis. Going forward, support will be expanded to the level of corporate research institutes, enabling small and medium-sized enterprises to accumulate research personnel and technology more stably.

Efforts will also be made to reduce administrative burdens in the import and distribution stages. The reporting process for importing measuring instruments will be simplified, reducing the required documents and processing steps. In addition, a new safety management system will be introduced for overseas direct purchase products intended for personal use. This is expected to make it easier for small businesses and startups to utilize overseas products.

Policies to promote entrepreneurship and revitalize local commercial districts will also be strengthened. The criteria for recognizing startup companies will be made more flexible, improving access to relevant systems for early-stage businesses. Through the Startup One-Stop Support Center, integrated administrative, financial, and consulting support will be provided for the startup and growth process. The "Commercial District Renaissance 2.0" project, aimed at reviving declining commercial areas, will also be fully launched.

Systems to protect technology and support entry into public markets will be further enhanced. A reward system will be introduced to prevent the overseas leakage of trade secrets, and public procurement of innovative products will be expanded. In addition, a national technical qualification system for "Public Procurement Managers" will be newly introduced to train specialized personnel in public procurement.

The government stated, "Starting in 2026, the focus of industrial and small business policies will shift from regulatory management to growth support, thereby enhancing the on-the-ground experience for businesses."