TITLE : FAQ on FDI in Korea 2023 (Q170~Q175)
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■ FAQ on FDI in Korea 2023 (Q170~Q175)
Environment
Q170 | When intending to establish a factory, what environment-related laws should be complied with? |
Before establishing a factory, if the manufacturing facilities,etc. that are to be established within the factory fall underthe category of "facilities that discharge environmentalpollutants" as defi ned by environment-related laws, a priorpermit/approval must be acquired regarding establishmentof discharging facilities as prescribed by such laws.
- Environmental pollutant emission facilities and related laws
- Air pollutant emission facilities, fugitive emission discharge facilities,VOC emission facilities, fugitive dust emission facilities: Clean AirConservation Act, Special Act on the Improvement of Air Quality in AirControl Zones
- Wastewater emission facilities, non-point pollution source:
- Noise and vibration emission facilities: Noise and Vibration Control Act
- Malodor emission facilities: Malodor Prevention Act
- Persistent organic pollutant emission facilities: Persistent OrganicPollutants Control Act
- Specified facilities subject to the control of soil contamination: SoilEnvironment Conservation Act
- Waste treatment facilities: Waste Control Act
※ For details regarding permits and approvals for installation of facilities thatdischarge environmental pollutants as prescribed by environmental laws, refer tothe book "Environmental Policies in Korea 2022" available in PDF format on theInvest Korea website (www.investkorea.org)
Q171 | What is the Integrated Environmental Permission System (IEPS)? What are the applicable businesses and what is the permission process? |
The Integrated Environmental Permission System (IEPS) ispermit system under which a single environmental permitis given for each place of business instead of permitting andmanaging wastes by type such as air pollutants, wastewater,waste discharge facilities, etc., so that facilities can bemanaged in an integrated manner.
The system comprehensively analyses the effects thatpollutants have on air, water, and other environments andpeoples’ health, and ensures that the discharge of pollutants canbe minimized using the best available techniques economicallyachievable (BAT) in the place of business as a whole.
The businesses subject to IEPS are those that have a significantinfluence on the environment, such as power generation andpetrochemical. Type 1 and type 2 places of business generatingannual air pollutants of 20 tons or more or discharging dailywaster of 700 ㎥ or more are subject to IEPS.
The basjc process is identical to the current permissionsystem: ① Application for integrated permission→ ② Reviewof integrated permission and decision to grant permission →③ Confirmation of permitted matters → ④ Post-management,and the entire process of permission and managementencompassing application for permission, review anddecision of permission, and post-management are processedone-stop, on-line through the IEPS.
Q172 | What should a company manufacturing (or importing) chemical substances remember in terms of registration and report? |
[Registration of chemical substances]
When intending to manufacture or import 1 t or more of phase-inchemical substances or 100 kg or more of non phase-in substancesper year, a registration should be filed with the President of theNational Institute of Environmental Research (NIER). However, inthe case of phase-in chemical substances of 1 t or more per year,manufacturing or importing is permitted without registration duringthe grace period for registration. To have the grace period applied, areport should be filed to the CEO of Korea Environment Corporation.
[Report of chemical substances/substances subject to intensive control]
Where intending to manufacture and import non phase-insubstances subject to reporting, a report should be filed tothe President of NIER. Where intending to manufacture andimport non phase-in substances contained in a product, areport should be filed to the river basin environmental officeor regional environmental office if reporting is required.
Q173 | matters that should be observed when handling hazardous chemical substances? |
Where operating a business handling hazardous chemicalsubstances (e.g., import, manufacture, use, storage, transport,sale), the jurisdictional environment authority’s salespermission should be obtained.
The company that intends to import or manufacture chemicalsubstances should submit a specification of confirmation ofchemical substances to the Korea Chemicals ManagementAssociation, and all handlers of such substances should prepareand keep a chemical substance management log, and registerstatistical records of chemical substances on the system everytwo years. Also, where a chemical substance accident hasoccurred, a report should be filed to the district environmentaloffice and fire department within 15 minutes.
[Related law: Chemical Substances Control Act]
※ The Chemical Substances Control Act prescribes the various obligations thata person handling chemical substances should comply with in order to preventand adequately manage the risks to people‘s health and the environment due tochemical substances. In particular, if the chemical substances are hazardouschemical substances (i.e., toxic substances, restricted substances, bannedsubstances, substances subject to permission, accident-prone chemicals),stricter regulations apply in consideration of their risks and hazardousness.
Q174 | What are the types of consumer safety products subject to safety verification and what products are subject to reporting and approval? |
"Household chemical products that require safety check" arehousehold chemical products that are recognized as havingrisk as a result of risk evaluation and designated and publiclyannounced as such by the Minister of Environment. As of theend of June 2020, 43 items including cleaners and laundrydetergents have been designated and announced. Also, tomanufacture or import such products of which the safetystandards have been publicly announced, a confirmation ofconformity by a testing or inspection agency is required.When a household chemical product that requires safetycheck received confirmation of conformity with safetystandards, a report should be filed to the President of theKorea Environmental Industry & Technology Institute (KEITI).To manufacture or import household chemical products forwhich safety standards have not been publicly announced,an approval of the President of the National Institute ofEnvironmental Research should be obtained.
< Types of Household Chemical Products that Require Safety Verification >
Classification | Item |
Cleaning products | 1. Cleaner 2. Remover |
Laundry products | 1. Laundry detergent 2. Bleach 3. Fabric softener |
Coating products | 1. Gloss coating product 2. Special purpose coating product 3. Rust preventer 4. Lubricants 5. Ironing auxiliaries 6. Finishing product 7. Stiffening agent |
Adhesive/bondingproducts | 1. Adhesive 2. Bond 3. Hardening accelerator |
Air freshening/deodorant products | 1. Air refreshener 2. Deodorant |
Dyeing andpainting products | 1. Dye 2. Paint |
Automobile products | 1. Washer fluid for automobiles2. Antifreeze for automobiles |
Printing and documentrelated products | 1. Ink and toner for printers 2. Red stamp ink3. Correction fluid and correction tape |
Beauty products | 1. Beauty adhesive 2. Dye for tattoo |
Leisure goodsmaintenance product | 1. Sports goods cleaning and shining products |
Disinfecting products | 1. Disinfectant 2. Algicide3. Antibiotic/disinfectant for humidifiers4. Sterilizer/disinfectant to prevent infectious disease |
Exterminationproducts | 1. Repellant2. Extirpator, inhibitor, attractant insecticide for publichealth3. Repellant for public health4. Disinfectant to prevent infectious disease5. Rodenticide to prevent infectious disease |
Preservative/preservative-treatedproducts | 1. Preservative for wood2. Preservative-treated filter product |
Others | 1. Candle 2. Moisture remover 3. Artificial spray for eyes4. Fog spray for performances5. Household chemical products for humidifiers |
Q175 | What are the types of biocidal substances and products subject to safety verification and what are the standards for reporting and approval? |
Biocides are classified into "biocidal substance" which meansany chemical substance, natural substance, or microbe usedto remove, render harmless, or deter any harmful organism;"biocidal product" which means any product with the mainpurpose of removal, etc. of harmful organisms; and "biocidetreated product" which means any product in which abiocidal product has been used for an ancillary purpose ofremoval, etc. of harmful organisms other than the mainfunction of the product, and are controlled accordingly.
※ Example of biocidal substances: PHMG, PGH, CMT/MIT, lavender oil,insecticides,
※ Example of biocidal products: disinfectants, insect repellents,preservatives, disinfectants for humidifiers, ozone ionizers
A company that intends to manufacture or import biocidalsubstances for use in biocidal products should submitan application for approval of biocidal products to NIERand obtain a safety verification to manufacture, import, ordistribute the products.
[ Related law: Consumer Chemical Products and Biocides Safety Control Act]
< Classification of biocidal products>
Product | Item |
Germicides (disinfectants) |
1. Germicides 2. Algicides |
Exterminators | 3. Rodenticides 4. Other vertebrate pest control 5. Insecticides 6. Other non-vertebrate pest control7. Repellents |
Preservatives | 8. Preservatives for products 9. Preservatives for product surface treatment 10. Preservatives for textile and leather 11. Preservatives for wood 12. Preservatives for construction material 13. Preservatives for materials and equipment 14. Preservatives for cadavers or taxidermy |
Others | 15. Preventatives for contamination of vessels orunderwater facilities |