Attorney, could you tell me about the method and procedure for applying for the regulatory sandbox?

An application for the regulatory sandbox consists of the stages of preliminary consulting, application, and deliberation, and it is important to accurately understand the procedure for each stage.

At the application stage, a business operator who has completed the consulting applies for a special exception to the relevant ministry through the dedicated agency for each field.

Even if the field of application is unclear, the receiving agency transfers it to the appropriate ministry, so the procedural burden is not significant.

As a rule, a received matter is submitted to the special exception deliberation committee within 90 days, and an extension is possible once if necessary.

At the deliberation stage, after the specialized subcommittee coordinates the issues among the relevant ministries, the regulatory special exception deliberation committee, in which private experts participate, comprehensively reviews the innovativeness of the business, user benefits, and risks, and decides whether to grant the special exception.

Identical or similar tasks are processed quickly through a fast track, and you should also note that, even if an application is rejected, a request for re-deliberation is possible within a certain period.

As such, the issues to be reviewed may vary depending on whether the regulation applies and on the business structure, so it is advisable to carry out a legal review together with a capital markets attorney.

Please review in advance, through a consultation with a capital markets attorney, whether a detailed application is possible and how to establish a strategy.