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4. Regulation for new biz in China VS what about Korea?

➢One unicorn company is created every ▪ "More than 800 of the 1,500 corporate laws

3.5 days in China, the cradle of proposed by the 20th National Assembly are
unicorn companies.
of regulatory nature." (Park Yong-man, Chairman of
➢There are 162 unicorn companies in Korea Chamber of Commerce and Industry)

China. (KOTRA, as of June 2018)
▪ The international standard for EV battery
➢Baidu, Alibaba, Xiaomi, Tencent, etc.
have heavily invested in promising pack drop test is 1.2 to 2m, while Korea’s is
unicorns, which is creating a virtuous 4.9m. It is unnecessarily high.

cycle structure that unicorns foster ▪ It causes 'cost increase and
other unicorns.
uncompetitiveness‘. (further restriction by
➢The principle of ‘first permit and

then supplement’ is being applied. ‘KS R 1204’ standard)
▪ Due to the self-certification regulation,

st
Chinese unicorn companies’ biz area in the 1 quarter, 2018 which qualifies companies with 2,500 units’
문제가 생기면 이를 보완하는 법을 만들어 산
▪ Internet service
업은 산업대로 키문제가 생기면 이를 보완하는
e-commerce production or more than 500 units p.a. for
Internet financing the same type of cars, unqualified small car
법을 만들어 산업은 산업대로 키우고 문제는
Entertainment
문제대로 해결우고 문제는 문제대로 해결
Medical health makers face the difficulty to go through the
Logistics
certification process for even one additional
battery pack.

BUSINESS CONFIDENTIAL 5