Ministry of SMEs and Startups Invites Candidate Projects for 2027 Regulatory Free Zones

Recruiting Approximately 11 Candidate Projects Across Three Categories

The Ministry of SMEs and Startups announced on the 20th that it is inviting submissions from non-capital region local governments for candidate projects to be newly designated as Regulatory Free Zones, Global Innovation Regulatory Free Zones (Global Free Zones), and Regional Collaboration Regulatory Free Zones (Regional Collaboration Free Zones) for 2027.

The candidate projects being solicited fall into three categories: ▲ Regulatory Free Zones, which aim to improve regulations related to new technologies and new industries; ▲ Global Free Zones, which support demonstration projects for product development tailored to overseas demand and overseas market entry; and ▲ Regional Collaboration Free Zones, which involve demonstration projects in the form of packages through inter-regional cooperation and coordination. The total recruitment volume is approximately 11, with up to 4 Regulatory Free Zones, up to 4 Global Free Zones, and up to 3 Regional Collaboration Free Zones.

The Regulatory Free Zone is a regulatory sandbox system (regulatory exemption system) operated at the regional level. When a local government submits a Free Zone plan, regulatory exemptions are granted for a certain period to participating operators of new technologies and services within the zone following consultations with the relevant regulatory ministries. Once safety and other factors are confirmed through demonstrations, related regulations can be rationalized, creating a more innovation-friendly environment.

Since the introduction of the system in 2019, a total of 57 Regulatory Free Zones have been designated. Of the 77 laws and regulations for which regulatory revision was requested upon the completion of demonstrations, 63 have already been revised, establishing the zones as a representative, region-led regulatory innovation policy. In addition, the system supports demonstration R&D linked to regional strategic industries and ensures that the outcomes of these demonstrations are connected to actual commercialization, contributing as a core growth engine for vitalizing regional economies.

The Ministry of SMEs and Startups will evaluate the submitted plans based on the potential impact of regulatory improvement, contribution to the development of the regional economy, and the feasibility of regulatory improvement and commercialization. It plans to select approximately 11 candidate projects. Especially for Global Free Zones, the need for overseas demonstration and certification will be considered; for Regional Collaboration Free Zones, additional emphasis will be placed on the potential for expanding the effects of regulatory improvement through cooperation at the regional level. In this way, candidate projects that fit the intent of each Free Zone designation will be selected.

For the selected candidate Free Zone projects, the government will support the advancement of the Free Zone plans through consulting by regulatory and technology experts, as well as consultations with relevant ministries, before reviewing the possibility of newly designating the zones. In the first half of 2027, following reviews by the Regulatory Free Zone committees and relevant deliberation committees regarding regulatory exemptions, the Minister of SMEs and Startups will make the final designation.

This content was produced with the assistance of AI translation services.