[Consulting] Law firm Veat provides legal consulting for Gyeonggi Province Regulatory Sandbox Support Project

Law firm Veat’s Songdo-young, Choi Sung-ho, Baek Seung-cheol, and Jo Eun-byeol attorneys have recently agreed to conduct legal consulting on application form preparation for companies applying for regulatory sandbox through the Gyeonggi Province and companies within the province.

Gyeonggi Province announced its support plan for companies applying for the regulatory sandbox on April 4, 2019, at the Provincial Office. Gyeonggi Province plans to support not only application form preparation for the regulatory sandbox but also costs related to the verification for participating companies.

Specifically, Gyeonggi Province plans to support up to 1/2, or a maximum of 100 million won, for the cost of prototype production, testing/verification data analysis, and test evaluation standard preparation, which are necessary for verification, for companies that have applied for a regulatory sandbox for the activation of personal mobility devices upon receiving a verification approval. It also plans to support up to 1/2, or a maximum of 10 million won, for the insurance premiums that companies must join for user protection and a maximum of 5 million won as consulting fees for shortening the verification period and early market launch. It also announced that it would reduce the burden on companies applying for the regulatory sandbox. Furthermore, Gyeonggi Province announced that it would provide 5 billion won (previously 4 billion won) in support (loan) to innovative startups that are confirmed as regulatory sandbox applicants under the government's regulations from May 2, 2019.

Prior to this, a survey conducted by Gyeonggi Research Institute on 159 startups in Pangyo Techno Valley showed that 42.1% of companies experienced difficulties due to the regulatory environment. Of these difficulties, 'loss of sales' (30.3%) was the most significant, followed by 'delayed/suspended market launch' (27.3%) and 'abandoned/postponed business' (24.2%).

Veat, at the request of Gyeonggi Province, provided legal advice on A Company’s regulatory sandbox application. In particular, Veat’s attorneys not only examined the legal issues presented by A Company but also carefully reviewed the regulatory sandbox application form based on the format prepared under the "Industrial Synergy Promotion Act" or the "Act on Promotion of Information and Communications Technology and Convergence," to identify any omissions or ambiguities or whether any content differed from the requirements and whether the verification plan was appropriate. They then revised and supplemented the application, receiving high praise from the applicant company.

Veat successfully completed the "ICT·Convergence Regulatory Improvement Consulting Service" commissioned by the Korea Information and Communication Technology Promotion Agency (NIPA) in 2018, and from January 2019, it has been providing legal advice for the "ICT Regulatory Sandbox Consulting Center" of the Ministry of Science and ICT and the Korea Information and Communication Technology Promotion Agency. It has also agreed to provide regulatory sandbox consulting advice to Gyeonggi Province, the first local government to do so.

If you need legal advice or consulting regarding legislative consulting, ICT/industrial convergence/financial regulatory sandbox, please contact Veat through the following channels.

Thank you.

Law firm Veat