Jan. 2024

Contents

Ⅰ. Current State
Ⅱ. Significant Changes
Ⅲ. Future Policy Direction

Ⅰ. Current State

“Persistent PollutantsControl Act” enacted
World Summit on Sustainable Development(WSSD)

National Chemicals
Management Framework
Plan Established- Minimize adverse impacts of chemicals by 2020
2001

Joined the PoPs
Agreement

2002

2006

International Conference on Chemicals
Management
Adopted SAICM (Strategic Approach toInternational Chemicals Management)

Gumi Hydrofluoric Acid
Leak Accident

2007

2011

Damage from the Humidifier
Disinfectant Case2012

“Chemical Substances Control Act”
Complete Revision- Chemical management- Prompt accident response2013“Act on Registration and Evaluation ofChemical Substances”

2018“Consumer ChemicalProducts and Biocides
Safety Control Act”

◇ The Poisons and Extreme Substances Act enacted(1963)- Preventing health and hygiene risks by properly managing poisons and extreme substances◇ The Hazardous Chemical Substance Control Act enacted(1990)- Contributing to public health and environmental preservation by examining the hazards of chemicals and managing hazardous chemicals appropriately◇ Established advanced chemical management system(2006-2014, the Hazardous Chemical Act amended)- Promoting scientific regulatory policies based on risk assessment through restrictions on handling and designation of prohibited substances◇ Strengthened chemical accident management system at stage including prevention, response and recovery (2015, the Chemical Substances Control Act completelyamended)3

Following the 2011 humidifier disinfectant case and the 2012 Gumi hydrofluoric acid leakaccident, the Hazardous Chemical Substances Act was restructured into 3 separate acts toenhance accident prevention and public safety protection, including the Act on Registrationand Evaluation of Chemicals.
Act on Registration andEvaluation of Chemicals(Enacted May 2013, EnforcedJan. 2015)

Poisons and Extreme
Substances Act(Enforced Mar. 1964)

Act on Registration andEvaluation of Chemicals(Revised Mar. 2018.
Enforced Jan. 2019)

Consumer ChemicalProducts and Biocides
Safety Control Act

Hazardous Chemical
Substances Control Act(Enforced Feb. 1991)

Chemical Substances
Control Act(Enacted Mar. 2018,Enforced Jan. 2019)(Fully Amended Jun. 2013,Enforced Jan. 2015)

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Act on Registration and
Evaluation of Chemicals

Identify chemical hazards<Registration/Reporting,& Assessment)

Consumer Chemical Productsand Biocides Safety Control
Act

Chemical Substances Control ActManufacture, Import<Market Entry>

Use (Manufacture),Storage, Transportation,etc.
<Safety Control>

Sale<Distribution Management>

Management of distribution
and safe handling ofdaily consumer chemicalproducts<Product Reporting & Approval>

Registration & reporting ofchemical substances, hazard
assessment
Designation of restricted,prohibited, permitted, and intensecontrol substances
Transmission of hazard information

Chemical distribution management (verification and statistical surveys on chemical substances,etc.)
Management of hazardous chemical handlers (business permits etc.)
Management of hazardous chemicals handling facilities (chemical accident prevention andmanagement plan, handling facility inspection, etc.)
Immediate reporting of chemical accidents and operational shutdown

Risk assessment of daily use
consumer chemical products,
approval of biocidal substances andproducts, safety standards, etc.

Production of Information

Safety and distribution management based on hazard information

Management of consumer
chemical products

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Purpose
Preventing public health and environmental risks from chemicals through systematic chemical management
Protecting people's lives, property, and the environment from chemicals through prompt response to chemicalaccidentsBackgroundA hydrofluoric acid spill in Sep. 2012 and several other small-scale chemical accidents highlighted the need for therevision of law to prevent and respond to accidents more effectively.
* Hydrofluoric acid spill (2012): resulted in 5 deaths, 15 injuries, and 55.4 billion won in property damage

Implications of the 2012 Hydrofluoric Acid Accident
Need to assess the impact of chemical accidents beyond the workplace and implement safety measures

Crucial to establish specific safety management standards for handling facilities, such as the installation of emergency
shut-off devices
Ensure the use of appropriate personal protective equipment

Need to establish an initial response system in the event of a chemical accident

6Establishing a comprehensive accident prevention system, including pre-operation
evaluation of outside impacts on people and the environment, post-installation
inspections, and supervisor appointment when obtaining permits
Review a Chemical Accident
Prevention and Management Plan
(National Institute of Chemical
Safety; NICS)

Createachemical
accidentprevention
andmanagement
planInspect Facilities(Korea Environment Corporation,
Korea Gas Safety Corporation,
Korea Occupational Safety and
Health Agency; KOSHA )Installhandlingfacilities

Applyfora businesspermitBusiness Permit(Ministry of Environment;MOE)

Outbreakofaccident
Start a businessRespondat
accidentsite(MinistryofEnvironment)

Investigatethechemicalaccident
impact(MinistryofEnvironment)<Major Compliances for Business Operators >∙ Compliance with facility standards, contract reporting,and training∙ Regular inspections, safety assessments, and selfinspections

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Establish a handling facility
installation plan

Permit for hazardous chemicalbusiness(local environment office)Self-inspection

Create a chemical
accident prevention andmanagement plan

Review suitability(National Institute of ChemicalSafety)

Install handling facilities

Inspect the facilities(inspection agency)

Run and operate thehandling facilities

Regular Inspection• Performed by respectivebusiness• Workplace requiring
permission: annually• Weekly at minimum• Other facilities : every twoyear• Examine 11 items

Ad-hoc Inspection

Safety Assessment• Upon a chemical accident –within 7 days
• Order from local environment
officer – without delay• (frequency) risk level –A(4years), B(8 years), C(12 years)• (Extraordinary) potential safety
risk – inspection results within
20 daysNon-compliant with handling facility standards or unsuitable as a result ofinspection/assessment
Improvement order or shutdown order8

Provisions

Chapter I

Chapter II

Chapter III

Chapter IV

General Provisions(Article 1-8)

Statistical Surveys, Disclosures ofInformation on Chemicals (Article 9-12)

Safety Control of Hazardous Chemicals(Article 13-26)

Hazardous Chemical Business Operator(Article 27-38)
Preparation for and Response to Chemical

Chapter V

Accidents etc.
(Article 39-47)
Supplementary Provisions and Penal

Chapter VI & VII

Provisions(Article 48-64)

Key Details▪ Purpose, definitions and scope of application▪ Duties of state, local governments, and business operators▪ Basic plans, chemical controls committee, and consultations on major policies, etc.
▪ Verification of chemicals▪ Statistical Surveys on chemicals, investigation of volume of chemical discharges, anddischarge reduction plan

▪ Criteria for handling hazardous chemicals, wearing of personal protection equipment▪ Restrictions on quantity of hazardous chemicals displayed or stored, labeling of hazardous chemicals, etc.
▪ Import and export of hazardous chemicals, safety control on handling facilities▪ Classification of business and business permit, exemption from permit and disqualifications for operators▪ Reporting on awarding of contracts for handling hazardous chemicals▪ Hazardous chemical supervisors and safety education▪ Designation of substances requiring preparation for accidents and their control standards▪ Reporting of accidents, on-site responses▪ Establishment and operation of comprehensive chemical information system▪ Reporting, inspection, delegation of authority, and entrustment of affairs▪ Penalties, fines for negligence and joint penal provisions9Ⅱ. Significant Changes

Actively enhanced regulations by incorporating feedback from the field to ensure
the system operates rationallyHandling
FacilityStandards

Amendment to the Chemical Substances Control
Act (2015): Retrospectively applied stricter
standards to facilities installed prior to the Act,
causing concerns about large-scale relocations
and shut down
Uniform Facility Standards: Applied consistently,
regardless of handling volume or industry

Chemical Accident
Prevention andManagement Plan
Workforce

Enhanced Applicability (2019): Introduced
alternative facility standards, like additional
detectors instead of a distance between adischarge wall and a tank (1.5-meter)

Customized Standards (2018-2022): Tailored tohandling volume and specific industries, e.g.,surface treatment and semiconductors

Outside impact assessment report and hazard
control plan are created respectively, reviewed
and approved by the National Institute ofChemical Safety (NICS)

Streamlined to a chemical accident prevention andmanagement plan (2020)
Simplified submissions by omitting redundant
reports under OSHA Act, or High-pressure Gas
Safety Control Act (2020)

License holders are recognized as technicalpersonnel.

The NICS training completers acknowledged(2018), for businesses with fewer than 30employees.
11Improved handling facility standards to consider site conditions (effective fromJan. 2023)

Expanded piping standards previously only for metallic material to encompass PTFE
(Teflon) lined pipes suitable for handling corrosive substances

Exemptions granted for processes requiring the use of fire for heating or drying facilities(e.g., refining, non-ferrous metal manufacturing)

Recognized sloshing prevention devices (baffle plates) with functions similar topartitions under the High Pressure Gas Safety Control Act, when applicable
Aligned Outside piping protection potential standard at -0.85V or less, based on thecopper sulfate electrode under the High Pressure Gas Safety Control Act
12Established handling facility standards considering the characteristics of thesemiconductor industry (effective from Dec. 2022)
Recognized internationally certified facilities with a manufacturing request form adhering
to Chemical Substances Control Act standards for pipes in finished products and modular
production equipment as compliant with the Act.

Recognized safety devices for advanced equipment as equivalent to those used inexisting manufacturing and use facilities. (e.g., one detection and alarm device per facility, watercollection facilities per facility, etc.)

13

Expanded qualification requirements for hazardous chemical supervisors andtechnical personnel (effective from Oct. 2023)
Expanded the types of hazardous chemical supervisors(Added 12 types including surface treatment professional engineer/master technician/industrial engineer/technician, fine chemicalengineer, environmental hazard management engineer, gunpowder manufacturing engineer/industrial engineer, chemical analyst
engineer/technician, hazardous material master technician, gas master technician)

Extended the validity period and broadened the qualifications for relaxed technical personnel
qualification standards for small businesses with fewer than 30 employees(Validity period: Extended from 2023 to 2028 to recognize technical personnel qualifications for those who have completed NICS'
specialized training for technical personnel)(Qualifications: surface treatment professional engineer/master technician/industrial engineer, environmental hazard management
engineer, etc.)

Adjusted the Timing of Safety Training for Those Handling Hazardous Chemicals (effective from Jan.1,2025)(before) 16 hours of training before handling hazardous chemicals (after) 16 hours of training before handling or 8 hours each before
and after handling (completed within 3 months, and those who handle for less than 6 months are not subject to the improvement)

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Ⅲ. Future Policy Direction

Increasing Societal Burden
Current

The designation of hazardous substances is continued throughhazard reviews under the Chemical Registration and Evaluation Act.
Hazard assessment of existing chemicals
Newly developed chemicals → hazard assessment

Challenges

Need Differentiated Management Approach
One-size-fits-all approach → transition to a system considering various hazards

16Promoting the possibility of transparent policymaking based on stakeholder
participation through the chemical safety policy forum since May 2021
Established a transparent and open public forum planned and operated bystakeholders and the Ministry of Environment※ The public forum is broadcast live on the Ministry of Environment's newsroom (YouTube), and discussion materials andresults are publicly available on the Nurijib website (chemnavi.or.kr/forum).

17

A total of 44 organizations and 201 individual stakeholders are participating (Feb. 2023)
Korea Chamber of Commerce and Industry
Korea Petroleum Association
Korea Air Cleaning Association
The Federation of Korean Industries
The American Chamber of Commerce in Korea
European Chamber of Commerce in Korea
Korea Federation of SMEs
Korea LP Gas Sale Association
Korea Enterprises Federation
Korea Petrochemical Industry Association
Korea Resource Recycling Energy Mutual Aid Association
Korea Electric Wire Industry Cooperative
Korea Iron & Steel Organization
Korea Print & Printing Ink Industry Cooperation
Korea Waste Recycling Mutual Aid Association
Korea Surface Treatment Industry Cooperative
Korea Chemicals Management Association

National Humidifier Disinfectant Incident Network
Gyungnam People Protecting Health and Life
National Council of the Green Consumers Network in Korea
Green Korea United, Daejeon Chungnam Green Korea
Northeast Women’s Environmental Network Choroksangsang
Banolrim, People's Action for Carcinogen-Free Society
Seosan Taean Federation for Environmental Movement
Andong Federation for Environmental Movement
Women’s Environmental Network, Green Korea Incheon
Incheon Federation for Environmental Movement
Work and HealthJeonnam People Protecting Health and Life
Jeonbuk People Protecting Health and Life
Jeonbuk Federation for Environmental Movement
Cheongju Chungbuk Federation for Environmental Movement
Chungnam People Protecting Health and Life
Pyeongtaek People Protecting Health and Life
Korean Federation for Environmental Movement
Environmental Justice18

Discussion highlights from the chemical safety policy forum with public, industry,and government participation<2023><2022>
Establish a mid- to long-term plan forchemical safety management
Prepare a plan to rationalize the management
system for designating hazardous chemicals

Establish a mid- to long-term plan forchemical safety management

Establish operating regulations for public
participation in chemical safety policy

Improve the effectiveness of production,communication and utilization of
hazardous information of chemicals

Effectively produce, communicate, and utilize
hazardous information on small quantities of
new chemicals

Enhance the management system fordesignating hazardous chemicals

Prepare a roadmap for managing chronic
hazardous substances
19Prepared in accordance with the principles of 'securing public safety,' 'rational
application of regulations,' and 'strengthening communication’(Dec. 2022)(Designation) Designation of acute, chronic, and ecologically hazardous
substances according to hazards(Management) Reorganization of the system, considering chemical accident
prevention and response, human and environmental exposure, etc.
<Current>
Toxic Substances(sulfuric acid, lead, copper oxide, etc.)

Apply uniform handling facility
standards, business permits, etc.,
regardless of the substance's levelof hazard<New>
Acute Hazardous
Substances(sulfuric acid, etc.)

Chronic Hazardous
Substances

Ecologically Hazardous
Substances(lead, etc.)(copper oxide, etc.)

Damage to the humans
immediately after exposure

Even low concentrations and small
amounts over time can harm humans

Damage to aquatic life when entering
the water system

Focus on accident
prevention and responseFocus on reducing human
exposure

Focus on minimizing
environmental(water, soil) emissions
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Improving the frequency of regular inspections and safety assessments toaccount for the level of risk, such as handling volume<Periodic Inspection Cycle Linked with Chemical Accident Prevention
and Management Plan (Proposal)>
Classification

UT or above

Less than UT~LT or above
Less than LT~LLT orabove
Less than LLT

Periodic Inspection
Cycle(Proposal)

Chemical Accident Prevention andManagement Plan(Group 1-A)

1 yearChemical Accident Prevention andManagement Plan(Group 1-B, C)

2 yearsChemical Accident Prevention andManagement Plan(Group 2)

3 years

Chemical Accident Prevention andManagement Plan(Exempted)

Shipping/Transportation Facilities(regardless of handling volume and level of risk atrespective workplace)<Safety Assessment(Proposal)>Conducting safety assessment every
fourth regular inspection for workplaces
that have submitted chemical accident
prevention and management plans

4 years
Exempted

3 years※ Based on research findings from the public forum

21Improving business permit management system to account for the level of risk,such as handling volume
Proposal for Improvement to Technical Personnel Appointment
Requirement
Business Permit

Business Notification

No change(Newly added) Environmental risk
management engineering license &Not required to appoint

5-year work experience
Proposal for Improvement to Hazardous Chemical Supervisor
Appointment Requirement
Business Permit

Business Notification

Appointed by businessNo change(include supervisor informationin the notification document)※ Based on research findings from the public forum

22National Assembly passed the proposed amendments to the Act on Registration andEvaluation of Chemicals and the Chemical Substances Control Act in January 2024.
Definition of Toxic Substance- Deleted the term toxic substance and categorized it into acute, chronic and ecologically hazardous substance tohumans

Inspection of Handling Facilities- Exempted facilities handling extremely small quantities (Lower-lower tier) and facilities handling only chronic
substances from regular inspections

Business Permission- Divided into permits and notifications based on the handling volume, exempting businesses handling extremely
small quantities from permits and notifications
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National Assembly passed the proposed amendments to the Act on Registration andEvaluation of Chemicals and the Chemical Substances Control Act in Jan. 2024
Exceptions to handling standards, personal protective equipment, display and storageplan, and labeling standards- Exceptions apply in cases where consumers use hazardous chemicals in their daily lives

Restricted Substances, etc.
- Excluded restricted substances, prohibited substances, and substances subject to permission from the definitionof hazardous substances, and obligations for chemical accident prevention and management plans, handling facility
standards, business permits, etc.
- Restricted substances transitioned to a notification system※ Substances that are classified as human acute, chronic, and ecologically hazardous are required to comply with thecorresponding regulatory obligations.

Establishment of an Overseas Representative System- A person appointed by an overseas manufacturer or producer performs duties on behalf of the importer, such astasks related to verifying chemical substances and obtaining permits for substances subject to permission.
24Thank You for Your
Attention