Firms rushing to apply for regulatory exemption
Companies are rushing to apply for the “regulatory sandbox” program, a new system that went into effect Thursday to enable firms to start new businesses without being subject to existing regulations.
The Ministry of Science and ICT and the Ministry of Trade, Industry and Energy said Thursday 19 companies applied for the sandbox program on its first day of operation.
The firms include big players such as Hyundai Motor, KT and Kakao alongside regular startups.
The word sandbox refers to a sandpit in the playground where children play in a controlled and closed environment with less fear of the consequences. The regulatory sandbox is designed to exempt firms from rules and regulations so they can come up with innovative and convenient products and services.
With the sandbox program, the government will inform companies whether their new businesses are complying with regulations within 30 days.
If the administration doesn’t, the firms can go ahead with their market release of products or services.
Hyundai applied for the program to install hydrogen fuel stations in urban areas.
The carmaker has been making all-out efforts to take the lead in hydrogen technology. By investing $6.7 billion, the company aims to produce 500,000 fuel cell vehicles annually by 2030.
To accomplish its ambitious plan, constructing more hydrogen charg- ing stations in the downtown area is essential.
Hyundai has been requesting approval for the construction of five such stations in the capital, but it is impossible to add stations in urban areas due to regulations.
The Ministry of Trade, Industry and Energy said it will discuss the issue with the Seoul Metropolitan Government and the Ministry of Land, Infrastructure and Transport to see whether they can issue a permit to construct the hydrogen stations in Seoul.
Kakao, the operator of Korea’s popular messaging app KakaoTalk, and telecommunications firm KT also applied for the program to request an approval for launching electricity billing services.
Kakao said the electricity billing service would decrease postage costs by 70 percent.