[Consulting] ICT Regulatory Sandbox Legal Consultation, Law firm Veat

Law firm Veat’s Song Do-young, Choi Seong-ho, Baek Seung-cheol, and Jo Eun-byeol provided legal consulting services regarding the regulatory exception application for verification of Joinso Auto Co., Ltd.’s car dismantling bid comparison service, which was submitted to the ‘ICT Regulatory Sandbox Consultation Center’.

Joinso Auto started providing services in 2015 to provide car owners with information about car dismantling and offer more reasonable dismantling costs. In February 2016, when Joinso Auto was generating revenue and discussing investment, Article 57-2 of the ‘Automobile Management Act’ was newly added, suddenly making them an illegal business operator, leading to a sharp decline in revenue and facing criminal charges, among other difficulties. Nevertheless, they made efforts to continue operating the business without closing it down. The current Automobile Management Act Article 57-2 stipulates that “A person who is not an automobile dismantling and recycling business operator shall not collect or solicit or arrange for the collection of a car subject to dismantling for business purposes, nor arrange for the collection of such car with an automobile dismantling and recycling business operator.” This means that only those registered as automobile dismantling and recycling business operators can arrange for the collection, and violations are subject to criminal punishment.

Law firm Veat’s lawyers, understanding the circumstances and the representative's situation, supported them by revising and supplementing the application, which lacked substantive content and supporting data, to complete and submit the regulatory sandbox application. They received experimental exception designation from the ‘Second ICT Regulatory Sandbox Deliberation Committee’ on March 6, 2019.

As a result of this experimental exception designation, Joinso Auto received experimental exception designation to provide services for 2 years within a range not exceeding a maximum of 35,000 vehicles (approximately 2% of the annual total car dismantling processing volume in Korea, which is about 880,000 vehicles).

Law firm Veat provides legal consultation services, including legislative consultation and legal advice related to ICT/industrial convergence/financial regulatory sandboxes. If you need help with application drafting and legal review regarding regulatory sandboxes, please contact Law firm Veat.

Thank you.

Sincerely, Law firm Veat