South Korea's Ministry of Science and ICT said on Monday that a bill to partially revise the Special Act on Fostering Research and Development Special Zones, including improvements to the regulatory sandbox system for R&D special zones, was finalised by the cabinet after approval by the National Assembly.

The regulatory sandbox system for R&D special zones allows all or part of existing regulations to be waived so that new products and services using new technologies can be tested and verified.

The revision clarifies the right to claim compensation for personal harm resulting from regulatory-exemption projects. It also bans the transfer and seizure of compensation deposited into designated accounts. The bill is expected to take effect six months after promulgation following presidential approval.

The ministry has designated a total of 37 new technologies as regulatory-exemption projects since introducing the demonstration-based special exemption system in 2021. In 2023, it introduced a fast-track confirmation system that allows checks on whether regulations apply within 30 days, resolving regulatory uncertainty for 59 new technologies.

Through a temporary permit introduced alongside the fast-track confirmation system, the ministry supported the timely manufacture and supply of explosives needed to launch private space launch vehicles. It also produced results that led to revisions of related laws and regulations.

Eun-young Lee (이은영), director general for R&D performance and innovation at the ministry, said the rules to protect the public in regulatory-exemption projects further strengthened the regulatory sandbox system for R&D special zones that was introduced to improve regulations on new technologies. She said the ministry would continue promotion and support so that many companies can use the system to demonstrate and commercialise new technologies.