[Counsel] Legal counsel provided to Joins Auto on ICT regulatory sandbox
Article posted in 2019-10-02 14:55:27 | VEAT
VEAT Law Firm lawyers Do-yeong Song, Seong-ho Choi, Seung-cheol Baek, and Eun-byeol Cho provided legal consulting services to Joins Auto Co., Ltd. on the application for a regulatory sandbox for verification of its service of comparing estimates for scrapping vehicles.
Joins Auto began its service in 2015 to provide information to car owners on the scrapping of vehicles and reasonable estimates for scrapping vehicles. Joins Auto experienced various difficulties, including sharply decreasing sales and criminal indictment, as it had suddenly become an illegal business operator when Article 57-2 was newly inserted into the Motor Vehicle Management Act in February of 2016. At the time, the company had discussed plans to induce investment as its sales were growing. It made efforts to continue its business rather than going into liquidation. Article 57-2 of the Motor Vehicle Management Act states, "Anyone who is not a motor vehicle scrapping business operator shall not collect or purchase motor vehicles to be scrapped, nor shall he/she engage in any acts of intermediation for a motor vehicle scrapping business operator in his/her pursuit of profit." Thus, any acts of intermediation by anyone who is not registered as a motor vehicle scrapping business operator are subject to criminal punishment, as this constitutes a breach of the Act.
VEAT lawyers helped the company to file the correct application for a regulatory sandbox within a short period by supplementing them with more supporting information through an interview with their representative director on the history of the case. On March 6, 2019, the company was successfully designated by the 2nd ICT Regulatory Sandbox Review Committee as a case exempted from regulation for verification.
By the current designation for ICT regulatory sandbox, Joins Auto is now permitted to provide services for two years and up to 35,000 units (2% of the total number of 880,000 vehicles scrapped per year in Korea).
VEAT Law Firm provides legal counseling concerning the relevant legislation and the ICT, industrial convergence, and financial regulatory sandbox. Those in need of legal counseling on the preparation and review of application documents for regulatory sandbox are invited to contact the VEAT Law Firm.