1.

An Environment for Public Safety: Strengthening the Foundation for Environmental Safety

Atmosphere: During the period when the level of fine dust is high (i.e., between December and March), the MOE has operated a system called “seasonal fine dust management system” to implement stronger measures for reducing and managing fine dust. This year, the MOE will allow the period for the seasonal fine dust management system to be extended depending on the circumstances of each region (e.g., the concentration level of fine dust). In addition, the MOE will push for establishing a system that imposes an obligation to reduce the emission of fine dust (starting from December 2024) on large-scale emission sites, which have been managed on a voluntary basis.
 
Chemical substances/products: In order to ensure that the safety of raw materials used in household chemical products can be easily identifiable, the MOE will classify the safety of such materials according to the following categories: (i) safe, (ii) good, (iii) moderate, and (iv) concerning. The pilot project for the voluntary safety information system is expected to take place in the second half of 2024. Furthermore, the MOE will expand safety inspections on products purchased overseas through agencies and will also work to strengthen the monitoring of illegal online products via monitoring agencies.
 

2.

An Environment as a Future Growth Engine: Regarding Carbon Free Green Growth

Greenhouse gases: In order to support the reduction of greenhouse gas (“GHG”) emissions by companies, the MOE will implement projects that support the installation and replacement of GHG reduction facilities such as fuel conversion facilities. In addition, to lay the foundation for the MOE’s introduction of the Carbon Contracts for Difference (“CCfD”), which guarantees carbon prices in cases where a company implements low-carbon innovative technologies, the MOE plans to review applied technologies with the aim of launching a pilot project in 2025. Meanwhile, with respect to the GHG Emissions Trading Scheme, the MOE plans to increase paid allocation and BM allocation and also launch emission-related financial products for the first time. The detailed plans are expected to be announced through the Fourth Basic Plan for the Emissions Trading Scheme and the Fourth National Emission Permit Allocation Plan.
 
Waste: In line with the implementation of the Act on Promotion of Conversion into a Circular Economic Society on January 1, 2024, the Notification on Designation of Waste Circular Resources – which separately designates and announces the wastes that secured safety and economic feasibility as circulation resources – was also implemented on January 1, 2024. The MOE will prepare for the collection and recycling business by (i) introducing a special regulatory system (the so-called “regulatory sandbox”) to increase the utilization of high value added waste resources, and (ii) establishing recycling standards for key resources (including waste batteries, waste cooking oil, and by-products from processing of electric vehicles).
 
Trade barriers: The transition period stipulated under the EU Carbon Border Adjustment Mechanism (“CBAM”) began on October 1, 2023, and the deadline for the submission of the first quarterly report was due January 31, 2024 (it was afterwards extended for another 30 days). Accordingly, the MOE will provide support measures for companies – for example, providing consulting services, distributing explanatory notes, and operating a helpdesk. In addition, for the purposes of enhancing the consistency with global ESG disclosure standards, the MOE plans to implement measures such as revising the disclosure items under the environmental information disclosure system (pursuant to the Environmental Technology and Industry Support Act) and adjusting the timing of disclosure.
 
Support for the green industry: The MOE will expand the size of green investment and its scope to cover various fields such as water and the circular economy. In this regard, the MOE plans to start creating a green convergence cluster to foster regional specialized industries with green investment (a development plan for three locations – Gumi, Haenam, and Boryeong – will begin to be established in 2024). Moreover, the MOE will create funds to support the export of green infrastructure. The MOE will also customize and diversify plans to encourage the export of green industries (including the designation of a green specialized trading company).

Environmental regulation innovations: The MOE will rationalize environmental regulations so that they are in line with global standards. In January 2024, the proposed amendments to the Act on Registration and Evaluation of Chemical Substances (the “K-Reach”) and the Chemicals Control Act passed the plenary session of the National Assembly. The proposed amendment to the K-Reach will change the standards for registration of non-phase-in chemical substances to “at least 1 ton per year” so as to align with global standards (such as the EU’s standards). The proposed amendment to the Chemicals Control Act intends to classify toxic substances based on their toxicity characteristics and also implement classification-based management for such substances. These amendments will go into effect on January 1, 2025 and August 7, 2025, respectively. Furthermore, the MOE is considering (i) rationalizing the standards for fluorine in soil in consideration of global standards and risks to the human body, and (ii) introducing a mechanism that allows companies to borrow allowed emissions from next year (i.e., using the permissible emission amount from the next year) or offset emissions (for reduction activities occurring outside a company’s places of business).
 

3.

An Environment for Public Welfare: Expansion of Environmental Services

Environmental conservation and utilization: The MOE will promote the designation of excellent natural environment assets as “protected areas” or “natural coexistence areas.” In 2024, the MOE plans to designate an additional area of 245km² as “protected area” or “natural coexistence area” in order to promote harmony between environmental conservation and utilization.