BORN2GLOBAL

  • banner
  • banner
  • banner

H > News

  • Regulatory sandbox spurs growth of innovative businesses

  • Banban (half-half) Taxi, an app that connects passengers whose routes overlap to cabs, will be launched this month in select parts of Seoul. (iclickart)

    Banban (half-half) Taxi, an app that connects passengers whose routes overlap to cabs, will be launched this month in select parts of Seoul. (iclickart)


    By Jung Joo-ri and Lee Jihae 
    Seoul | July 18, 2019 

    A regulatory sandbox is a mechanism for exempting or suspending regulations to provide goods and services formerly unavailable due to such rules. To foster new industries and technology, the sandbox took effect from January 17 this year for a two-year period. This article explores a few of the resulting changes since this policy was implemented six months ago.



    Gangnam Station and vicinity and the main sections of the downtown Seoul road Jongno have one thing in common: high difficulty of grabbing a taxi late at night. Many people in either area are seen gathering by the roadside to hail taxis around midnight. 

    A game-changing app has emerged to resolve this situation. Banban (Half-Half) Taxi offers rides between 10 p.m. and 4 a.m. to passengers whose routes overlap by at least 70% and who want to ride together to find a taxi faster and split the bill. The cabbie receives payments from both passengers, so the app benefits everyone. 

    Current law prohibits a taxi from allowing multiple passengers to share a ride in the same cab. Yet as part of its regulatory sandbox, the Ministry of Science and ICT on July 11 permitted the startup platform Kornatus to launch the app. The service will start this month in the Seoul districts of Gangnam-gu, Seocho-gu, Jongno-gu, Jung-gu, Mapo-gu, Yongsan-gu, Yeongdeungpo-gu, Guro-gu, Seongdong-gu, Gwangjin-gu, Dongjak-gu and Gwanak-gu. 

    This is the interior of Wecook, a mutual kitchen in Seoul's downtown Jongno-gu District. Under this business model, several licensees can produce goods in one place. (Simple Project Company)

    This is the interior of Wecook, a mutual kitchen in Seoul's downtown Jongno-gu District. Under this business model, several licensees can produce goods in one place. (Simple Project Company)


    A "mutual kitchen" shared by two or more chefs has also been launched after gaining regulatory approval. While one venue is limited to one business licensee operating in it under current law, the sandbox allows several business licensees to share a space -- the mutual kitchen -- and offer a variety of food and services. 

    Multiple businesses can now also sell food at the same venue. Seoul Hope Night Cafe, which opened on June 20, runs at the Seoul Underground Rendezvous Service Area until 8 p.m. Afterwards, another business sells snacks and drinks until midnight. 

    The regulatory sandbox has also led to the emergence of virtual reality (VR) theme parks, which offer simulations that feel extremely real. Kong VR on July 5 opened two branches, one near Gangnam Station in Seoul and the other by Haeundae Beach in Busan. The operation of VR motion simulation used to be difficult due to regulations on electricity and electromagnetic waves but the lifting of the latter has jumpstarted this up-and-coming industry. 

    A Kong VR source said, "We can now spend less time and money on certifications for VR facilities and content." 

    Since sandbox regulations took effect six months ago, 81 business establishments have received regulatory approval. A host of industries such as financial technology (fintech), transportation and health care have benefited from the sandbox. 

    The ministry and other government offices said they will expedite relevant patent processes by formulating standards for certification and technology as well as set up an institutional strategy to more effectively manage businesses. 



    A branch of Kong VR Theme Park, equipped with virtual reality simulators, was opened on July 5 near Gangnam Station in Seoul. (Motion Device)

    A branch of Kong VR Theme Park, equipped with virtual reality simulators, was opened on July 5 near Gangnam Station in Seoul. (Motion Device)


    etoilejr@korea.kr




    Comments

STARTUPS OF THE WEEK

    • 1 Riiid
      Headquarters

      29, Teheran-ro 87-gil, Gangnam-gu, Seoul, Republic of Korea

      Description

      Riiid is bring creative disruption to education market through AI technology.

    • 2 SendBird
      Headquarters

      541 Jefferson Ave. Suite 100 SendBird, Redwood City, CA 94063

      Description

      The Simplest Solution for Chat and Messaging

    • 3 NEOFECT
      Headquarters

      West Building #401, Dankook Uni., 152, Jukjeon-ro, Suji-gu, Yongin-si, Gyeonggi-do, 16890

      Description

      Smart Glove Speeds Rehabilitation of Stroke Patients

    • 4 SMART STUDY
      Headquarters

      5F, 94, Myeongdal-ro Seocho-gu, Seoul, 06668

      Description

      Sing, Play and Learn with PINKFONG

    • 5 SketchOn
      Headquarters

      Corporate Collaboration Center #85313, 2066, Seobu-ro, Jangan-gu, Suwon-si, Gyeonggi-do, 16419

      Description

      Harmless, Easy-to-Erase Printed Tattoos

    • 6 linkflow
      Headquarters

      Yugi tower 13F, Teheran-ro 69gil 5, Gangnam-gu, Seoul Korea

      Description

      Wearable 360 degree camera company

    • 7 MOIN
      Headquarters

      B2F, Google Campus, 417, Yeongdong-daero, Gangnam-gu, Seoul, 06182

      Description

    • 8 Exosystems, Inc.
      Headquarters

      #804, 815, Daewangpangyo-ro, Sujeong-gu, Seongnam-si, Gyeonggi-do, Republic of Korea

      Description

      Exosystems provides a new paradigm of rehabilitation with the slogan-“Fun @Home, Data Driven Rehab!”

    • 9 Dable
      Headquarters

      #301, 22, Nonhyeon-ro 79-gil, Gangnam-gu, Seoul, 06237

      Description

      Explain Your Business in One Line

    • 10 Visual Camp
      Headquarters

      Startup Campus #325, 289beon-gil 20, Pangyo-ro Bundang-gu, Gyeonggi-do, 13488

      Description

      Eye Tracking Technologies for Mobile VR Devices

    • 11 4DREPLAY KOREA
      Headquarters

      3003 NORTH 1ST ST. SUITE#221 SAN JOSE, CA, 95134

      Description

      Creating Experience ─ Highly Advanced 4D Video Solution

    • 12 MOPIC
      Headquarters

      85307, corporate collaboration center, 2066 Seobu-ro, Jangan-gu, Suwon-si Gyeonggi-do, Korea 16419

      Description

      Your Breathtaking Mobile 3D Theater

    • 13 NEWRATEK
      Headquarters

      2~4F, Iksung Building, 6, Bongeunsa-ro 112-gil, Gangnam-gu, Seoul, 06170

      Description

      New Radio Communications for a New Era

    • 14 ZOYI Corporation
      Headquarters

      15F, KR Tower, 141, Teheran-ro Gangnam-gu, Seoul, 06132

      Description

      Growth Hacking for O2O Commerce

    • 15 Salted Venture
      Headquarters

      340 Nonhyeon-ro, Gangnam-gu, Seoul, 06227

      Description

      Fixing Golf Swings and Squats from the Feet

    • 16 REDTABLE
      Headquarters

      410, Startup Campus Building #3, 20, Pangyo-ro 289 beon-gil, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea

      Description

    • 17 eyedea
      Headquarters

      5F, 98, Seongmisan-ro, Mapo-gu, Seoul, 03986

      Description

      Autonomous Flying Selfie Drone

    • 18 Innomdle Lab
      Headquarters

      2F, 3, Eonnam 1-gil, Seocho-gu, Seoul, 06778

      Description

      Touch Your Sound

startups_left startups_right