I have a question for a financial attorney regarding the financial regulatory sandbox.

Hello. A financial attorney will respond.

The financial regulatory sandbox you mentioned is a system that, under the Special Act on Support for Financial Innovation, defers or exempts the application of existing regulations for a certain period so that innovative financial services can be tested in the market without being blocked by regulation.

The eligibility to apply is held by financial companies and companies under the Commercial Act that have a place of business in Korea.

The Financial Services Commission may set and announce the application period for the designation of an innovative financial service by type of financial service or by application round, and a person who intends to apply for the designation of an innovative financial service must apply within the period set in the relevant announcement.

Both a corporation and an individual business operator are eligible, and the service for which the application is made must be recognized as having 'financial innovativeness.' The Financial Services Commission reviews the application based on criteria such as the creativity of the technology, consumer benefit, and its distinction from existing finance.

A person who intends to apply for the designation of an innovative financial service must prepare the application for the designation of an innovative financial service, including information about the applicant, the main content of the applied-for service, and matters concerning the satisfaction of the review requirements, and must submit it to the Financial Services Commission with the relevant supporting materials attached.

Because the financial regulatory sandbox procedure is somewhat complex and involves many parts that require legal and institutional interpretation, it is advisable to prepare with the advice of a financial attorney regarding financial regulation.

A financial attorney provides consulting from the type of sandbox application onward, in line with the preparation of the application according to the type, the criteria for reviewing innovativeness, and the criteria for reviewing the benefit to financial consumers.

This is because, if the Financial Services Commission finds deficiencies as a result of reviewing the application, it may request the applicant to supplement them.

With the assistance of a financial attorney, the completeness of the application can be improved, and the risks during the review process can also be reduced.