Go to Contents Go to Navigation

Moon says regulatory sandbox must make everything possible

Politics 11:51 February 12, 2019

SEOUL, Feb. 12 (Yonhap) -- President Moon Jae-in on Tuesday told the government to allow everything and anything for new businesses unless they pose serious and clear threats to public safety, a move aimed at fostering new businesses that will create more jobs.

The call came one day after the government approved the installation of hydrogen charging stations for fuel cell vehicles under its new regulatory sandbox.

"Regulatory sandbox is a test bed for innovative economy. Its key point is to first allow (new business models) unless they pose a threat to the lives, safety and health of the people and then regulate, so as to leave open the chance for companies to make any new challenges and attempts," the president said in a weekly Cabinet meeting held at his office Cheong Wa Dae.

President Moon Jae-in (third from L) speaks in a weekly Cabinet meeting held at his office Cheong Wa Dae in Seoul on Feb. 12, 2019. (Yonhap)

A regulatory sandbox is a term mostly used in the fintech industry, and refers to a mechanism for developing regulation that keeps up with the fast pace of innovation.

Moon says it will lead to various new business models when applied in other industries, including the manufacturing sector.

"It may allow commercial tests (of a new product) by exempting it from regulations for a set period of time or even allow its market launch by offering a temporary license," the president said, according to Cheong Wa Dae pool reports.

Moon noted there may be problems, especially when different interests clash.

"But we will not be able to take a single step forward by being stuck in debates," he said.

"In fact, I felt sad when looking at the items approved under the regulatory sandbox because they showed that we needed the special system called the regulatory sandbox because our country did not even allow such businesses or products," the president added.

Moon called on government ministries to actively promote and assist new business models, also urging them to realign and get rid of any of their 16,000 instructions, directives and guidelines that are excessive or unnecessary.

bdk@yna.co.kr
(END)

HOME TOP
Send Feedback
How can we improve?
Thanks for your feedback!