Objectives:To test out new technologies and services in the real market.To allow the government to improve related regulations based on real-life data.
Name in original language
규제 샌드박스
Initiative overview
The Regulatory Sandbox initiative in Korea was launched to address challenges posed by the rapid development of new technologies and innovative business models that often outpace existing regulatory frameworks. Traditional regulations can sometimes hinder innovation by imposing strict compliance requirements that are not tailored to emerging technologies, leading to delays in market entry and reduced competitiveness. The sandbox provides a controlled environment where companies can test new products, services, or business models under relaxed regulatory conditions while ensuring consumer protection and safety.The primary objective of the Regulatory Sandbox is to foster innovation and support the growth of emerging industries, particularly in fields such as fintech, AI, data services, and digital health. By allowing controlled experimentation without the immediate burden of full regulatory compliance, the initiative encourages startups and established firms to develop and refine their offerings. This approach helps regulators gather evidence-based insights on new technologies, enabling more informed policy-making and the gradual adaptation of regulatory frameworks to keep pace with technological advancements.Looking ahead, the Regulatory Sandbox is expected to become more institutionalized within Korea's innovation ecosystem. The government plans to expand the scope of eligible sectors and participants, streamline application and monitoring processes, and strengthen collaboration between regulators, industry stakeholders, and consumers. Over time, successful sandbox trials may lead to the formal adoption of new regulatory rules or exemptions, effectively scaling innovative solutions more broadly across the market. This adaptive regulatory approach aims to balance the dual goals of fostering innovation and maintaining public trust.Since its inception, the initiative has evolved by broadening its sectoral focus and enhancing support mechanisms for participants, including guidance and technical assistance. Periodic evaluations help identify areas for improvement, ensuring that the sandbox remains responsive to technological trends and market needs. This dynamic evolution reflects Korea's commitment to creating a flexible regulatory environment that drives economic growth while safeguarding public interests in the digital age.
Name of responsible organisation (in English)
Ministry of Science and ICT |Ministry of Trade, Industry and Energy |Ministry of SMEs and Startups
