KIAT to support tech firms with regulatory sandbox

Korea Institute for Advancement of Technology is collaborating with the Ministry of Trade, Industry and Energy to bolster financial and direct investment support for companies approved under their collaborative regulatory sandbox.

On Wednesday, KIAT hosted the first Investor Relations Day event for companies joining the regulatory sandbox initiative in Seoul. The event featured business presentations and one-on-one funding consultations.

The regulatory sandbox permits the government to temporarily relax regulations, facilitating the swift market entry of new products and services. Currently, a total of eight programs are in operation.

The KIAT-MOTIE program, launched in 2019, has granted over 500 regulatory exemptions so far.

Seven companies benefiting from regulatory exemptions participated in Wednesday’s event, seeking investment from 20 venture capital firms. To expand the program's reach, the two organizations announced plans to hold three additional IR Day events this year, scheduled for September, October and November.

A newly established fund will offer financial leverage, which amounts to 17.5 billion won ($12.6 million), adding to commercialization efforts. The investment will prioritize companies from sectors such as robotics, mobility, health care, artificial intelligence and climate technology -- areas expected to benefit significantly from regulatory improvements.

Further support initiatives include training programs to enhance investment attraction capabilities and consulting services.

"As we enter the sixth year of operating the regulatory sandbox, we will actively support the commercialization of approved companies to amplify economic performance and employment effects,” said KIAT President Min Byung-joo.