[ED] Unprecedented experiment

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[ED] Unprecedented experiment

First cases of 'regulatory sandbox' will be basis for innovative growth

The Moon Jae-in administration gave the go-ahead to regulatory exemption applications from four businesses Monday. The companies are the first to be allowed into the government's "regulatory sandbox" ― an initiative to induce more firms to innovate their businesses free from administrative red tape.

Under the new policy, Hyundai Motor will install hydrogen charging stations in four locations in Seoul, including one at the National Assembly complex. The other three companies are Macrogen's expanded gene testing service to predict diseases, JG Industry's installation of LCD and LED advertising panels on buses, and Charzin's electric charging stations using ordinary 220-volt outlets.

What the four businesses have in common is they would be unimaginable under the current laws and regulations because of environmental, safety and other concerns. Therefore, the authorities concerned will have to change their way of thinking in screening future applications.

There are of course systems and values that require protection. The officials should be careful not to violate them. At the same time, however, businesses will no longer have to bury their hard-developed products and services without having any opportunity to put them on the market. The introduction of the regulatory sandbox is significant in this regard.

Local industrialists, who have looked for investment opportunities in the country, are also reportedly expressing high expectations for the new system. On Monday alone, the first day of implementing the sandbox rule, the Ministry of Trade, Industry and Energy received 19 applications for exemptions from regulations.

To boost economic growth in a downward business cycle, there is no other way but to create new opportunities through regulatory reform. "I hope you will manage the system in ways to approve in principle all applications, as long as they do no harm to life, safety and health," President Moon said.

We can hardly agree more. Moon's economic team ought to keep this in mind when screening the applications. Only then will innovation start in industrial fields and new businesses be launched. It is also where the creation of more jobs, the most significant economic issue in Korea, can begin.



First cases of 'regulatory sandbox' will be basis for innovative growth

The Moon Jae-in administration gave the go-ahead to regulatory exemption applications from four businesses Monday. The companies are the first to be allowed into the government's "regulatory sandbox" ― an initiative to induce more firms to innovate their businesses free from administrative red tape.

Under the new policy, Hyundai Motor will install hydrogen charging stations in four locations in Seoul, including one at the National Assembly complex. The other three companies are Macrogen's expanded gene testing service to predict diseases, JG Industry's installation of LCD and LED advertising panels on buses, and Charzin's electric charging stations using ordinary 220-volt outlets.

What the four businesses have in common is they would be unimaginable under the current laws and regulations because of environmental, safety and other concerns. Therefore, the authorities concerned will have to change their way of thinking in screening future applications.

There are of course systems and values that require protection. The officials should be careful not to violate them. At the same time, however, businesses will no longer have to bury their hard-developed products and services without having any opportunity to put them on the market. The introduction of the regulatory sandbox is significant in this regard.

Local industrialists, who have looked for investment opportunities in the country, are also reportedly expressing high expectations for the new system. On Monday alone, the first day of implementing the sandbox rule, the Ministry of Trade, Industry and Energy received 19 applications for exemptions from regulations.

To boost economic growth in a downward business cycle, there is no other way but to create new opportunities through regulatory reform. "I hope you will manage the system in ways to approve in principle all applications, as long as they do no harm to life, safety and health," President Moon said.

We can hardly agree more. Moon's economic team ought to keep this in mind when screening the applications. Only then will innovation start in industrial fields and new businesses be launched. It is also where the creation of more jobs, the most significant economic issue in Korea, can begin.





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