Single-Unit Lifestyle Accommodations Now Eligible for Legal Operation... Regulatory Sandbox Approved

Ministry of Land Approves Two Regulatory Sandbox Demonstration Projects

The government has decided to temporarily ease regulations to allow the operation of lodging businesses with even a single unit in lifestyle accommodation facilities.

The Ministry of Land, Infrastructure and Transport announced on January 5 that, at the 31st National Smart City Committee meeting held recently, it decided to grant regulatory exemptions for the application submitted by Mr. Mansion. This issue was recommended for adjustment by the Office for Government Policy Coordination's New Industry Regulatory Innovation Committee. As a demonstration project for an online platform to allow operation of a single-unit lifestyle accommodation, a special exemption under the Public Health Act will be granted so that individual unit owners can directly operate lodging businesses using an online platform.

Previously, to register a lifestyle accommodation business, the property had to be a standalone building or a part of a building with at least 30 units, or meet standards set by local government ordinances. Operating on a single-unit basis was considered unregistered and illegal, subject to penalties. There was also a requirement to install a reception desk for user verification, but this obligation will be temporarily waived if an alternative system is implemented using mobile applications or similar technologies.

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The government expects that this measure will provide small-scale lifestyle accommodation owners, who were previously unable to register their businesses, with an opportunity to operate legally. Detailed conditions such as region, scale, and operation method will be determined through consultation with relevant ministries, taking into account existing stakeholders.

A regulatory exemption was also granted for a service that allows recording of conversations between individuals in certain areas, such as walking trails or public restrooms, to prevent crime in high-risk zones. When a QR code is scanned or a web auto-connect number is called, the mobile phone acts as a mobile CCTV or emergency bell, transmitting real-time video, audio, and location information to the city integrated operation center.

Meanwhile, since its introduction in February 2020, the Smart City Regulatory Sandbox has approved 63 demonstration projects. According to the Ministry of Land, 94 organizations have participated, resulting in a 4.78 billion won increase in sales and the creation of 535 new jobs. Jung Woojin, Director of Urban Policy at the Ministry, stated, "We will expand channels for regulatory discovery, such as regular public contest projects and local government matching days, to gather a wider range of opinions so that more citizens can experience the tangible results of the Smart City Regulatory Sandbox."