[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 by half, from the current 30 days to 15 days. In addition, decisions can now be made at any time by specialized subcommittees without having to go through the Regulatory Sandbox Review Committee, which is expected to significantly shorten the time from application to decision-making for the sandbox.

The validity period for special exemptions will also be granted more flexibly to suit 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 demonstrations.

The obligation to revise relevant laws and regulations will also be strengthened. Previously, only the initiation of legal revisions was required after granting regulatory exemptions. Now, it will be mandatory to complete the revisions before the exemption period ends. However, even if the enforcement of the law is delayed or the final decision on approval takes time, new rules will ensure that the exemption is not terminated midway.

A legal foundation will also be established to systematically foster and support corporate research institutes and research and development organizations. Until now, research and development support has been provided mainly for individual projects, but this will be expanded to the level of corporate research institutes, enabling small and medium-sized enterprises to stably accumulate research personnel and technology.

Administrative burdens at the import and distribution stages will also be eased. The reporting process for importing measuring instruments will be simplified, reducing the required documents and procedures. 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 systems for early-stage businesses. Through the Startup One-Stop Support Center, administrative, financial, and consulting support needed for the startup and growth process will be provided in an integrated manner. The "Commercial District Renaissance 2.0" project to revive declining commercial areas will also be fully implemented.

Systems to protect technology and facilitate entry into the public market will also be 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 new national technical qualification system for "Public Procurement Managers" will be introduced to train specialized personnel for public procurement.

The government stated, "Beginning in 2026, we will shift the focus of industrial and small and medium-sized enterprise policies from regulatory management to growth support to enhance the practical impact felt by businesses."