TITLE : FAQ on FDI in Korea 2023 (Q176~Q181)
페이지 정보
본문
■ FAQ on FDI in Korea 2023 (Q176~Q181)
Environment
Q176 | What rules apply to the collection, transport, storage and recycling of waste that is subject to restrictions on cross-border transfer? |
In regard to the collection, transport and recycling of waste that is exported or imported, the Wastes Control Act or theAct on the Promotion of Saving and Recycling of Resources is applied.
- herefore, when intending to collect, transfer and export wastes, a permissionfor waste collection and transfer pursuant to Article 25 of the WastesControl Act should be obtained. Where interim waste treatment is required,a permission for interim waste treatment business should be acquired.
- In addition, where a permission to import wastes is obtained, theimported wastes should be treated by the importer or commissioned toa legitimate treatment entity in accordance with Article 18-3 of the Acton the Control of Transboundary Movements of Hazardous Wastes.
※ Refer to the Notice on the Items of Waste Subject to the Act on the TransboundaryMovement of Hazardous Wastes and Their Disposal on whether an item is awaste subject to control (Notice of the Ministry of Environment, no. 2020-292).
Q177 | What is the scope of application of Korea’s GHG emission trading scheme and its operation process? |
Korea has been operating the GHG emission trading schemesince Jan. 1, 2015 pursuant to the Act on the Allocation andTrading of Greenhouse-gas Emission Permits legislated in 2012.
Businesses emitting large amounts of GHG belonging to the sectors of transition, transport, industry, building and other public areas are subject to the GHG emission trading scheme and are allocated emission permits. More specifically, a business whose total annual average GHG emission for a certain period is 125,000 tons, or businesses emitting large amounts of GHG owning a place of business with total annual average GHG emission of 25,000 tons or moreare designated as businesses subject to allocation and are subject to the GHG emission trading scheme.
Under Korea‘s GHG emission trading scheme, emission rights are allocated to GHG emitting businesses every five years, and the outcomes of compliance shall be managed. The five years which are the unit of allocation and management are referred to as “commitment period“. Before the beginning of each commitment period, the master plans for emissions trading scheme and the plans to allocate national emission allowances are established. When the master plan and the allocation plan of emissions trading scheme are established, the businesses subject to allocation are designation and GHG emission permits are allocated. If a business subject to allocation requests allocation permits to the government before the beginning of each commitment period,
※ It is currently the third commitment period (2021-2025).
"Compliance year" is each year during a commitment period set to allocate emission permits to business entities producing GHG and to manage their outcomes of compliance every five years to achieve national GHG reduction targets. Businesses subject to allocation should submit GHG emission permits matching their GHG emission amount to the government at the end of each compliance year, and the GHG emission report shows the amount of GHG emissions by companies eligible for allocation. When a business receives confirmation of a confirmation agency and submits
the GHG emission report and the confirmation report, the government can check the business’s emission amount and notify the business. Then, the business can submit their GHG emission permits that match their final certified GHG emission amount to the government.
(Reference: GHG emission trading, a key to carbon neutrality (Ministry of Environment, August 2021)
Q178 | What projects are subject to environmental impact assessment, and what is the procedure? |
- In accordance with the Environmental Impact Assessment Act,environmental impact assessment means the provision of a plan toavoid, eliminate or reduce damaging environmental impact by makingan advance investigation, prediction and evaluation of the impact aproject or business can have on the environment. This is conductedwhen providing a permit, approval, license or decision (“approval, etc.”) ofexecution plans that can have an impact on the environment.
- The projects subject to environmental impact assessment are classifiedinto 81 subcategories in 17 categories such as urban development, andare prescribed in Article 22 of the Environmental Impact Assessment Actand attached Table 3 of the Enforcement Decree of the same Act.
- The environmental impact assessment procedure is as follows:
- Prepare a draft environment impact assessment report
– The project implementer must prepare a draft of the environmentalimpact assessment report and collect the opinions of the residents. - Prepare the environmental impact assessment report and requestlaunch of consultation
– A project implementer that should receive an approval, etc. shallprepare an environmental impact assessment report and submit itto the head of the approving authority. The head of the approvingauthority must request consultation with the Minister of Environment.
– A project implementer that does not require approval shall preparean environmental impact assessment report and submit it to theMinistry of Environment. - Notification and implementation of matters of consultation
– The Minister of Environment must notify the head of the approvalauthority or project implementer (“head of the approval authority,etc.") within 45 days from the date of receiving a request forconsultation (for unavoidable cases, the period can be extended to60 days) of the details of the consultation that was conducted. - Implementation and report of consultation matters that were notified
– The head of the approving authority, etc. shall take the necessarymeasures to reflect the consultation matters that were reported intothe relevant business plan. When an approval or confirmation hasbeen made for a business plan, the results shall be reported to theMinister of Environment.
- Prepare a draft environment impact assessment report
Q179 | What plans are subject to strategic environmental impact assessment, and what is the procedure? |
- "Strategic environmental impact assessment" means an assessmentconducted to determine the feasibility of a plan, the appropriateness of asite location, etc. from an environmental perspective by verifying whetherthe plan conforms to the relevant environmental conservation planand by developing and analyzing alternatives to promote sustainabledevelopment of national land when it is intended to formulate a plan thathas an environmental impact.
- The plans subject to strategic environmental impact assessment areclassified into 'government plan' and 'master development plan', and areprescribed under Article 9 of the Environmental Impact Assessment Actand Table 2 of the Enforcement Decree of the same Act.
※ Government plan: A plan that generally indicates the basic direction-setting for, orguidelines for, the development and conservation of all or some national land (33plans in 9 fields)
※ Master development plan: A plan for the designation of a particular developmentzone or a plan that is required to be formulated by a specific statute or regulationbefore formulating an implementation plan to form the basis for a standard for animplementation plan (84 plans in 16 fields) - The strategic environmental impact assessment procedure is as follows:
- Prepare a strategic environment impact assessment report andrequest consultation
- The head of the administrative agency who intends to formulate agovernment plan shall draw up a strategic environmental impactassessment report and request a consultation with the Minister ofEnvironment. When requesting a consultation, he/she shall givepreliminary administrative notice pursuant to the AdministrativeProcedures Act.
- The head of the administrative agency who intends to formulatea master development plan shall draw up a draft and gatherconsensus from the head of the relevant administrative agencyand residents of the assessed area and draw up a strategicenvironmental impact assessment report reflecting the consensusand request a consultation with the Minister of Environment.※ However, in the case of a master development plan formulated througha suggestion of a person other than an administrative agency, the personwho made the suggestion shall draw up a draft and submit it to the headof the administrative agency formulating the master development plan.
- The head of the administrative agency formulating the governmentplan or master development plan that requires approval shalldraw up a strategic environmental impact assessment report andsubmit it to the head of the approving authority, and the head of theapproving authority shall request a consultation with the Minister ofEnvironment before approving the plan.
- Notification and implementation of matters of consultation
- The Minister of Environment shall, within 30 days of receiving arequest for consultation (40 days where the period is extended forunavoidable reasons), inform the details of the consultation thatwas conducted to the head of the relevant administrative agency.
- Implementation of consultation matters that were notified
- The head of the relevant administrative agency shall take thenecessary measures to reflect the consultation matters that werereported into the relevant business plan, and report the Minister ofEnvironment of the results.[Related law: Environmental Impact Assessment Act]
- Prepare a strategic environment impact assessment report andrequest consultation
Q180 | A company in Korea represented by a foreigner who owns a 100% stake in the company has an environment-related patent. Is this company eligible for receiving policy funding or other funding? |
The Ministry of Environment has secured funds to nurtureenvironmental companies and offers such companies fundsin the form of long-term, low-interest loans, so that suchfunds can be invested for the promotion of green businesses,green facilities and green management in the field of greenindustries that contribute to solving environment andclimate problems and create jobs.
[Environmental policy funds: support of future environmental industry (loans)]
Long-term low-interest loans are provided to SMEs and middle-standingenvironmental companies to fund facility installation and providemanagement stability funds
[Environmental policy funds: investment in eco-friendly facilities (loans)]
Long-tertm low interest installing facilities for reduction of GHG in SMEsand middle-standing companies’ places of business
[Green policy fund, eco-friendly facility investment (loans)]
For businesses emitting large amounts of GHG such as businessessubject to the Emissions Trading Scheme and Target Management System,lower interest rates and interest rate subsidies are applied for loans fromfinancial institutions for expansion or establishment of GHG reductionfacilities in their place of business.
[Loans for facilities for clean air]
For facilities emitting large amounts of fine dust such as cement kilns,support is provided for establishment and installation of high-efficiency airpollution prevention facilities.
Q181 | Can a foreigner or a foreign company operate a business specializing in environmental construction? |
A business specializing in environmental construction isa business that specializes in construction work relatedto the design and construction of air pollution preventionfacilities, water quality pollution prevention facilities andnoise/vibration prevention facilities. In order to engagein this business, a registration must be made at the citymayor or provincial governor's office. Foreigners or foreigncorporations must also register its business specializing inenvironmental construction in order to conduct this business.