More new businesses allowed under KCCI's 'Sandbox' initiatives
KCCI office in Seoul / Korea Times file
By Kim Hyun-bin
The Korea Chamber of Commerce and Industry's (KCCI) “Sandbox Support Center” is starting to expand its presence, helping more innovative startups get on their feet, through efforts to change “outdated” laws and policies.
“Although many innovations are possible with the Sandbox, it is essential to improve the legal system in order for the benefits to spread throughout the industry,” the KCCI said.
The Sandbox is known to be an “innovation bypass” which grants a “2+2” year-long test period for innovative startups that have been blocked by existing laws and systems. Since May 2020, the Sandbox Support Center has been aiding 137 innovative projects including a shared kitchen, electric vehicle (EV) battery recycling business, automotive over-the-air (OTA) services and shared salon facilities.
The Sandbox initiatives was first launched under previous KCCI Chairman Park Yong-maan.
The shared kitchen was the first of the projects passed by the National Assembly initiated by KCCI's Sandbox Support Center. The shared kitchen opens up one facility for several businesses to share in order to reduce startup costs, but before Sandbox it was deemed illegal here due to the Food Sanitation Act and worries of possible cross-contamination.
The number of companies with experience using shared kitchens has increased steadily to about 214 as of the end of last year. The initial investment costs saved so far through shared kitchens is estimated to add up to 19.3 billion won ($16.1 million).
In December 2020, an amendment bill for the Food Sanitation Act to introduce the concept of a shared kitchen, passed the plenary session of the National Assembly, laying the foundation for legislative action.
The same goes for the EV battery recycling business. Previously, used batteries for EVs had to be returned to the local government, so recycling them through the private sector was impossible.
With the amendment of the Air Environment Act in December 2020, the obligation to return the product to local governments ended, allowing startups to take part in recycling the batteries.