(1) Reasons for Proposal

Today, the growing convergence of AI, big data, IoT and other innovative technologies has accelerated the emergence of new products and services that transcend existing laws and systems. This has resulted in delayed market launch of new services or products due to a lack of suitable licensing or permit criteria, or difficulties in applying existing criteria or requirements. There are also cases where it is difficult to conduct validation projects to test and verify the safety and user benefits of new products or services. Accordingly, the Industrial Convergence Promotion Act was amended (Act no. 15828; promulgated on October 16, 2018; to be enforced on January 17, 2019) to introduce a “regulatory quick check” to promptly check whether a new convergent product or service requires a permit, etc., and introduce “regulatory exemption for substantiation” and a “temporary permit” scheme to enable innovative business models. This Amendment prescribes matters delegated by the Act and matters necessary for the enforcement thereof.

(2) Major Provisions

A. Organization of the regulatory exemption deliberation committee (Article 8)

Allow experts nominated by a National Assembly standing committee to be included when appointing members to the regulatory exemption deliberation committee, and allow up to two nominees

B. Organization and operation of expert committees (Article 10)

Allow the Minister of Trade, Industry and Energy to organize and operate expert committees to review, coordinate, or handle affairs delegated by the industrial convergence regulatory exemption deliberation committee, or to conduct and support the affairs of the committee in an efficient manner; and allow an expert committee to be organized and operated for each regulatory exemption for validation or temporary permit

C. Organization and operation of a conflict resolution committee (Article 10-2)

Prescribe that the chair of the conflict resolution committee shall be appointed from among the members by mutual vote, and that the members shall be public officials from relevant institutions who have been nominated by the heads of the institutions, persons with extensive expertise and experience in areas associated with the matter of conflict, etc.

D. Regulatory quick check (Article 11-2)

Prescribe procedures, application forms, etc., for regulatory quick checks

E. Regulatory exemption for validation (Article 11-3)

Prescribe procedures and application forms for regulatory exemption for validation, application procedures and methods for extension, etc.

F. Temporary permits (Article 11-5)

Prescribe temporary permit procedures, application forms, application procedures and methods for extension, etc.

G. Method of indemnification (Article 11-3, Article 11-5, Article 20, Article 20-2)

Prescribe compensation limits for liability insurance according to damage type, and require any business operator who is unable to purchase liability insurance to submit an indemnification plan to the Minster of Trade, Industry and Energy; and in such cases, allow the Minister of Trade, Industry and Energy to require the business operator to submit a surety insurance policy issued by an insurer pursuant to the Insurance Business Act, make a deposit of an appropriate amount, or set aside a reserve fund with a third party

H. Entrustment of authority and support institutions (Article 36-2, Article 38)

Authorize the Korea Institute for Advancement of Technology with certain affairs, such as receiving applications for regulatory exemption for validation; and allow industrial convergence support centers and the Korea Institute for Advancement of Technology to provide support for affairs associated with the operation of the regulatory exemption deliberation committee