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Promulgation of Amendments to Reform the Chemical Substance Management System

2024.04.23

On January 9, 2024, the National Assembly passed the Amendments to the Act on Registration and Evaluation of Chemical Substances (the “K-REACH”) and the Chemical Substances Control Act (the “CSCA”), which were promulgated on February 6, 2024 (the “Amendments”).

As part of its innovation in environmental regulations, the Ministry of Environment (the “MOE”) has continuously reformed the chemical substance management system by gathering opinions from stakeholders, such as the industry and civic groups, via the “Chemical Safety Policy Forum,” a public-private partnership. Although the Amendments will take effect one and a half years from the official publication (to be determined), some provisions will separately take effect on a designated date (as described below).
 

1.

Improved Registration and Declaration of Chemical Substances
 

  • The registration threshold for non-phase-in chemical substances will be adjusted from the current value of 0.1 tons per year to 1 ton per year. The new threshold, which reflects international standards such as the EU’s standards, will take effect on January 1, 2025.

  • The Minister of Environment will be able to review the appropriateness of the classification and labeling of reported chemical substances.

  • Information on the registered or declared chemical substances, such as the name and hazards, will be disclosed to the public and anyone may request the correction or supplementation of the disclosed information.
     

2.

Revised Designation and Management System of Toxic Substances
 

  • The designation and management system for toxic substances will be amended so that toxic substances will be further classified based on the nature of toxicity as follows: (i) acute hazardous substances (causing effects from short-term exposure), (ii) chronic hazardous substances (causing effects from repeated exposure or after a long-term latency period), and (iii) ecologically hazardous substances (causing effects to the environment, including aquatic organisms). In addition, “permitted substances,” “restricted substances,” and “prohibited substances” will be excluded from the definition of “hazardous chemical substances.”

  • The obligation to inspect and diagnose handling facilities will be differentiated based on the risk of accidents and quantities of chemical substances handled. Further, the responsibility to report inspection results for hazardous chemical substance-handling facilities will shift from facility operators to inspection agencies conducting the inspections. The differentiated obligations to inspect and diagnose handling facilities are as follows:

Facilities that only handle chronic hazardous substances will be exempt from regular inspections.

Facilities that handle hazardous chemical substances below certain standards (to be determined through the MOE Ordinance) based on factors such as hazards and the quantities of chemical substances handled, will be exempt from installation inspections and regular inspections.

Facilities with little to no risk of hazardous chemical substance leakage (to be determined through the MOE Notification), such as those with a hazardous chemical substance(s) built into a machine, will be exempt from installation inspections, regular inspections, and ad hoc inspections.

  • Hazardous chemical substance businesses that operate under a permit will be able to operate simply by reporting if (i) the risk of an accident is low, or (ii) the quantities of hazardous chemical substances to be handled are small. Further, anyone who files a report for a hazardous chemical substance business and a reagent sales business will be included in the scope of hazardous chemical substance business operators in addition to business operators with a permit for operating a hazardous chemical substance business. Such business operators will be subject to (i) the obligation to file a report on outsourcing, (ii) the obligation to appoint a hazardous chemical substance supervisor, and (iii) the obligation to conduct safety trainings.
     

3.

Other Amendments
 

  • Designated wastes under the Wastes Control Act (the “WCA”) are excluded from the scope of the CSCA, which will take effect upon the promulgation of the Amendments. Accordingly, the disposal, collection, and transportation of designated wastes, including hazardous chemical substances, will be managed uniformly under the WCA.

  • Substances without any information on hazards will be presumed to be hazardous until confirmed otherwise and business operators are now required to take appropriate measures to prevent any harm to human health or the environment.

  • If anyone becomes aware of a data leakage, such as the leakage of protected data (e.g., the composition of chemical substances) under Article 45, Paragraph 1 of the K-REACH, or of damages to the data storage facilities/equipment, such person must notify the Minister of Environment without delay. Anyone who fails to do so may be subject to an administrative fine of up to KRW 3 million.
     

The Amendments introduced a chemical substance management system based on the characteristics of hazards, and relaxed many of the regulations while introducing new obligations. Since the Amendments are expected to have a significant impact on businesses, we recommend assessing the potential risks and business opportunities by analyzing the Amendments and the related regulations that are expected to be promulgated in the near future.

 

[Korean Version]

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