Tourism Regulation Innovation and Regulatory Sandbox
Authors:   Korean Administrative Law Association, Park Jong Joon 
Published: October 2023

As the government intensifies its efforts to foster the substantial growth of the tourism industry by innovating and reforming unnecessary regulations hindering its development, it is essential to pay attention to the increasing application of regulatory sandboxes in addressing key regulatory issues in the tourism sector. Notable examples include home-sharing services for both domestic and foreign travelers, mobile virtual reality (VR) experience services, platform services for taxi intermediation in the tourism sector, On-Off international traveler insurance services, and blockchain-based smart tour platform services. Recognizing the need for legal evaluation at the regulatory level, primarily focused on the Framework Act On Tourism and the Tourism Promotion Act, in support of the advancement of tourism regulation sandbox initiatives, this analysis delves into the legal framework of what is commonly referred to as the “Korean-style regulatory sandbox.” In light of these findings, several reasons necessitating improvements in the tourism regulation sandbox system are presented. Firstly, it emphasizes the need for specialized regulatory sandbox operations that consider the unique characteristics of the tourism sector. Secondly, considering that the Ministry of Culture, Sports, and Tourism, as the responsible authority, exercises significant regulatory authority in key areas such as the Tourism Promotion Act and the Game Industry Act, it suggests the consolidation of regulatory authorities to maximize the outcomes of the tourism regulation sandbox in the tourism sector. Thirdly, given the increasing number of legislative enactments for individual sectors under the regulatory sandbox, it highlights the significance of having dedicated organizations with expertise to systematically execute regulatory sandbox tasks in the tourism sector. Lastly, for effective responses to issues marked by regulatory conflicts, such as those seen in cases of ICT-based home-sharing services for both domestic and foreign travelers, it calls for an expansion of participation opportunities for stakeholders in the tourism sector. Considering these factors, it is not unreasonable to assert the need for the introduction of a regulatory sandbox system specifically applicable to the tourism sector to promote tourism regulation innovation. However, the establishment of a separate law for securing the legal basis of the tourism regulation sandbox may not be the most suitable approach, given the current regulatory landscape related to regulatory sandboxes. This is because there is not a high quantitative demand for regulations related to the sandbox. Therefore, considering these aspects, the most rational approach may involve partial revisions to the Tourism Promotion Act, which is closely associated with the regulations in the tourism sector, to introduce the necessary provisions for the implementation of the tourism regulation sandbox. If the essence of the sandbox is ultimately rooted in legislative feedback based on retrospective regulatory evaluations, it is quite reasonable to request the Ministry of Culture, Sports, and Tourism, which must take the lead in advancing tourism administration, to actively play a central role in the operation of the tourism regulation sandbox, based on the Tourism Promotion Act. Furthermore, the establishment and operation of the tourism regulation sandbox system for tourism regulation innovation should fundamentally be oriented toward fulfilling the diverse desires and expectations of the general public, the consumers of tourism services. This approach should cater to the needs and preferences of the general population in their enjoyment of tourism experiences.