Government officials will soon be able to disburse operating expenses for public offices, such as business promotion funds, using a blockchain-based digital currency via a smartphone QR method, without a physical card. The Ministry of Science and ICT (led by Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon) announced that on September 21 it held its 45th ICT Regulatory Sandbox Review Committee for New Technologies and Services in writing, designating nine demonstration exceptions, including this measure.
 [코리안투데이] Designation of regulatory exceptions at the 45th ICT Regulatory Sandbox Review Committee for New Technologies and Services of the Ministry of Science and ICT © 장형임 기자 |
At this session, the Ministry of Science and ICT newly designated a total of nine regulatory exceptions, including the ‘use of blockchain-based digital currency for government funds,’ and converted the ‘mobile-linked open singing booth’ service, currently operating under a demonstration exception, into a temporary permit.
The most notable change concerns the method of disbursing government funds. The committee designated as a demonstration exception a ‘pilot project for disbursing government funds using blockchain-based digital currency,’ in which six banks participate: Kookmin, Nonghyup, Shinhan, Woori, Industrial Bank of Korea, and Hana (in Korean alphabetical order). Under the current Management of the National Funds Act, business promotion funds, which are operating expenses for public offices, may be disbursed only via a government purchase card or account transfer, making the use of digital currency impossible. This exception now allows officials to pay business promotion funds through a smartphone QR method using a common app provided by the Korea Financial Telecommunications and Clearings Institute, instead of a physical card.
If this method takes root, settlement will occur at the same time as payment and payment fees can be minimized, which is expected to reduce the fee burden on small business owners who receive the funds and improve their cash liquidity. In addition, if smart contracts are used to restrict the types of businesses where the funds can be spent and to settle payments automatically, post-audit costs will decline and fraudulent claims can be prevented. This is also meaningful for residents, as it enhances the transparency of disbursing public office operating expenses funded by taxes.
The committee also designated two demonstration exceptions that digitize the procedures for urban redevelopment projects and small-scale housing improvement projects. First, the ‘electronic notification (guidance) and receipt system for improvement projects (EJM Company)’ allows documents that had previously been sent only by registered mail—such as notices convening an inaugural general meeting to establish an association—to be delivered as electronic documents as well. The Act on the Improvement of Urban Areas and Residential Environments and the Special Act on the Improvement of Vacant Houses and Small-Scale Housing require that notices convening an inaugural general meeting be sent by registered mail, making electronic notification impossible; this exception has opened the way. However, additional conditions to protect members’ rights apply together: those who do not consent to electronic notification will still receive registered mail as before, and those who do not check the electronic notification will be notified again.
The ‘electronic voting and online general meeting service for the residents’ general meeting of the association establishment promotion committee for improvement projects,’ applied for by the same company, was also designated as a demonstration exception. Under the current Operating Regulations for Association Establishment Promotion Committees for Improvement Projects, residents’ general meetings could not be held online or conduct electronic voting. This exception now makes it possible to hold general meetings both on-site and online through a mobile platform and to conduct electronic voting. Electronic voting will apply only to those who have consented in advance, while those who have not consented will use the existing written-voting method, and the demonstration will proceed on the premise of safeguards to prevent leaks of personal information and voting results. This draws attention as it reduces the collapse of general meetings, thereby shortening project timelines, and guarantees the substantive voting rights of residents in redevelopment and reconstruction areas.
In addition, the ‘mobile electronic notification service using certified electronic document relay technology (KT)’ was also designated as a demonstration exception. This project is identical or similar to services already designated for Kookmin Bank and Woori Bank (September 2025) and the Korea Postal Service (July 2026). Under the current Framework Act on Electronic Documents and Transactions, a certified electronic document relay agent could distribute only electronic documents created by others, but this exception now allows it to distribute electronic documents it has created itself. Accordingly, KT can now send documents such as billing statements—previously sent by mail—directly as mobile electronic documents, which is expected to reduce postal costs, improve document delivery rates, and cut carbon emissions through reduced paper use.
Meanwhile, the committee converted the ‘mobile-linked open singing booth (MediaScope)’ service, currently operating under a demonstration exception, into a temporary permit. As the competent ministry, the Ministry of Culture, Sports and Tourism, determined that a review of related legislation was needed, the measure was taken so that the demonstration operator can continue its business stably. This service installs small open singing booths in multi-use facilities such as shopping malls, movie theaters, and terminals, and it will now be relieved of the burden that arose because the Music Industry Promotion Act had applied the existing standards for singing rooms as they were.
Deputy Prime Minister Bae Kyung-hoon emphasized, ‘Through the ICT regulatory sandbox—such as the disbursement of government funds in digital currency and the demonstrations of electronic notification and online residents’ general meetings for urban redevelopment projects—the government is expanding the scope of digital technology use to encompass public administration and everyday life as a whole.’ He added, ‘Going forward, we will actively grant demonstration opportunities so that innovative services in the field do not face difficulties entering the market due to existing regulations, and we will actively cooperate with relevant ministries so that demonstration results can lead to reasonable improvements in laws and systems.’
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