The Ministry of Environment (Minister Han Wha-jin) announced that the regulatory sandbox system for a circular economy will be implemented from January 1. This system promotes the establishment of innovative new industries to efficiently utilize resources and promote the circulation of waste.

This system supports technology demonstration projects and temporary market launches to ensure that new technologies and services are not obstructed by ambiguous or unreasonable regulations, especially in rapidly changing industrial situations.

Currently, regulatory sandbox systems are being implemented in five departments and seven fields*, including industrial convergence, information and communication convergence, and financial innovation. The circular economy field of the Ministry has been newly added to the system. 

* New products and services in the field of industrial convergence (Ministry of Trade, Industry and Energy), technology and services in information and communication and information and communication convergence (Ministry of Science and ICT), innovative financial services (Financial Services Commission), regional innovation growth and strategic industries (Ministry of SMEs and Startups), smart innovation technology and services (Ministry of Land, Infrastructure and Transport), research and development special zones (Ministry of Science and ICT), and innovative technology and services in mobility (Ministry of Land, Infrastructure and Transport)

The newly established ‘Circular Economy Regulatory Sandbox System’ is targeted at projects that aim to increase the sustainability of products, such as waste reduction, recycling and reuse, and waste resource management, and establish a circular network for discarded resources.

For instance, in cases where ideas, such as using fly ash generated from paper mill incineration facilities to manufacture cardboard or utilizing wastewater treatment sludge generated during the cleaning of semiconductor wafers as raw material for steel mills, faced difficulties in timely market release due to various procedures such as hazardousness verification, this system allows for regulatory exemptions or deferments.

This system is introduced in accordance with the revised ‘Act on the Promotion of Transition to a Circular Economy and Society,’ enacted entirely on December 31, 2022, and effective from January 1, 2024. It operates in conjunction with the Circular Resource Designation and Notification System, designating and announcing low-hazard or economically viable waste as circular resources, thereby exempting them from waste regulations. 

This system supports demonstration projects or temporary permits for up to a maximum of four years (initially two years, with a one-time extension). It is designed to provide support for mid-sized and small businesses, offering a maximum of KRW 140 million for demonstration project expenses and liability insurance premiums. 

Applications for participation will be accepted continuously from January 2 via email (*******************). Detailed information, including announcements and application s, can be found on the Korea Environmental Industry & Technology Institute (KEITI) website (www.keiti.re.kr), which is an agency under the Ministry of Environment. The KEITI provides legal and technical advice and operates telephone consultations* for guidance on application s to assist companies interested in applying.

* Circular Economy Regulatory Sandbox Inquiries: 02-2284-1790, 1791

The Ministry plans to consolidate efforts based on these systems to facilitate the establishment of our society as a circular economy society. If the results of projects applied under the related systems demonstrate safety and necessity through verification, there are plans to revise relevant laws and regulations.

Cho Hyeon-su, Director General of the Resource Circulation Bureau at the Ministry of Environment, stated, “The Ministry will promote innovation in the circular economy new industries and technologies throughout the entire life cycle, from production to reuse and recycling.” He added, “We will do our best to establish a foundation for policies and systems that facilitate the transition to a circular economy society, including the Regulatory Sandbox System, so that they can take root in the field.”

For further information, please contact the Public Relations Division. 

Contact person: Gina Lee, foreign media spokesperson

Phone: +82-44-201-6055

Email: gcjgina @gmail.com