"Law firm Veat provides a legal guide ‘Intent, Key Contents, and Precautions’ for lawyers participating in establishing the Virtual Convergence Industry Promotion Act."

✅Now we have become "Virtual Convergence Business Entities"!

On August 28, 2024, the Virtual Convergence Industry Promotion Act came into full effect, marking an important turning point for the virtual convergence world (metaverse) and the virtual convergence industry. This law provides a legal basis to promote innovation in virtual convergence technology and support the rapid introduction of new business models into the market.

Since 2020, we will discuss the intent, key content, matters that companies should pay attention to, and expected effects of the Virtual Convergence Industry Promotion Act with Song Do-young, managing partner, who has participated in the process of enacting the Virtual Convergence Industry Promotion Act.

Q: The Virtual Convergence Industry Promotion Act has finally been implemented. It must be more meaningful for you, having participated in the legislative process since 2020!

Song Do-young, managing partner (hereinafter referred to as "Partner Song"): Yes, I have been involved from the initial stages of this bill, starting with the "Virtual Convergence Economy Development Strategy" announced in 2020, so it is personally very meaningful. Especially at a time when the metaverse is converging with various industries and becoming a new economic activity space, I expect the Virtual Convergence Industry Promotion Act to play an important role in promoting the development of virtual convergence technology and services and reducing regulatory uncertainty. I think it’s a major first step in creating an environment where innovative technologies like the metaverse can quickly enter the market without being blocked by regulations.

Above all, I am gratified that through the enactment of the Virtual Convergence Industry Promotion Act, those who are doing virtual convergence-related businesses now have an official status as "Virtual Convergence Business Entities."

Q: What is the intent of the Virtual Convergence Industry Promotion Act?

Partner Song: The primary intent of the Virtual Convergence Industry Promotion Act is to systematically promote the metaverse industry and support innovation through regulatory improvement. To this end, the Virtual Convergence Industry Promotion Act legally defines the virtual convergence world (metaverse) for the first time in the world and introduces various promotion regulations and regulatory improvement systems.

☞ Article 2 Paragraph 1 (1): "Virtual Convergence World (Metaverse)" means a virtual space or a space combining virtual and reality that enables human-digital information interaction based on technology (hereinafter "Virtual Convergence Technology") that extends the five senses of users to a virtual space or mixes it with a real space, and enables various social, economic, and cultural activities.

In particular, we have introduced a "priority permit-post regulation" principle to minimize regulations and allow innovative technologies to be quickly commercialized, and we have introduced the "provisional guidelines" system for the first time to resolve legal uncertainties. Through this, we aim to support the convergence of virtual convergence technology and services with various fields such as medical care, education, and finance, and to improve existing industries.

☞ Article 2 Paragraph 1 (5): "Provisional Guidelines" means a standard temporarily prepared to ensure consistent law enforcement when the content of laws and regulations regarding the release, sale, or use of virtual convergence services is unclear, or when the applicability or scope of application of the laws and regulations is uncertain.

Q: What are the key contents of the Virtual Convergence Industry Promotion Act?

Partner Song: The key contents of the Act can be divided into four main categories. First, the "priority permit-post regulation" principle was introduced to prevent the hindrance of innovation by first allowing new technologies and then regulating them if problems arise. Second, the "provisional guidelines" system was introduced to resolve the legal uncertainties of companies preparing virtual convergence services. Third, a private-centered autonomous regulation system was established as a basis for industry promotion centered on companies. And finally, regulations for user protection were included to protect children and adolescents and create a healthy ecosystem.

Above all, we have tried to avoid the so-called "regulation-only act" that is filled with various regulatory clauses under the name of the "Promotion Act" and focuses on “autonomous regulation."

Key Contents of the Virtual Convergence Industry Promotion Act

1. Priority Permit/Post Regulation
2. Provisional Guidelines System
3. Private-Centered Autonomous Regulation System
4. User Protection Regulations

Q: What are the expected effects of the Virtual Convergence Industry Promotion Act?

Partner Song: As mentioned earlier, the Virtual Convergence Industry Promotion Act legally defines the virtual convergence world (metaverse) for the first time in the world and introduces various promotion regulations and regulatory improvement systems. Through this Act, companies can benefit from two advantages: rapid technology commercialization and minimization of regulatory risks. Companies in the virtual convergence field will have the opportunity to grow even faster with various financial and administrative support from the government and local governments, and new business models will be created through convergence with various industries.

Q: Do you have any final words?

Partner Song: We focused on establishing a basis for virtual convergence industry promotion centered on the "private sector" when enacting the Virtual Convergence Industry Promotion Act. To this end, we introduced an autonomous regulation system and established a new regulatory improvement framework called "provisional guidelines." Above all, we tried to avoid the so-called “regulation-only act” that is filled with various regulatory clauses under the name of the "Promotion Act" and focuses on “autonomous regulation.” The remaining task is to promote the virtual convergence industry and promote convergence with other industries to create new added value.

As related technologies and services develop and the market changes, the law must be amended accordingly. The Ministry of Science and ICT is establishing a specific strategy for the continuous growth of the virtual convergence industry through the basic plan for 2025-2027. The success of this Act will require cooperation and interest from industry, academia, research, and government. We hope that many virtual convergence business entities will actively utilize this Act to achieve innovation and lead positive changes throughout the industry.

If you need legal assistance related to the virtual convergence industry and the metaverse industry, please feel free to contact Law Firm Bit.

Thank you.
Law Firm Bit

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"Law firm Veat provides a legal guide ‘Intent, Key Contents, and Precautions’ for lawyers participating in establishing the Virtual Convergence Industry Promotion Act."

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"Law firm Veat provides a legal guide ‘Intent, Key Contents, and Precautions’ for lawyers participating in establishing the Virtual Convergence Industry Promotion Act."

Contact

Case Studies & News
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