The Ministry of Environment (“MOE”), in consultation with the Ministry of Justice, has been running a leniency program for certain violations of the Act on Registration and Evaluation of Chemical Substances (“K-REACH”) from February 28, 2025 to October 27, 2025 for a total of eight months (“Period”). This leniency program is a temporary measure intended to encourage companies to fully comply with their legal obligations to register and/or declare chemical substances pursuant to the K-REACH. The leniency program covers the following types of violations that occurred prior to February 27, 2025:
 

• Violation of the obligation to register pursuant to Article 10, Paragraph (1) of the K-REACH

• Violation of the obligation to pre-register existing chemical substances pursuant to Article 10, Paragraph (3) of the K-REACH

• Violation of the obligation to amend the registration pursuant to Article 12, Paragraph (1) of the K-REACH (including cases where chemical substances were manufactured or imported in a manner different from the registered, pre-registered, or amended details)
   

The MOE explained that the companies, which have voluntarily reported their violations and have taken necessary measures within the Period, will be exempt from criminal penalties and administrative sanctions (including administrative surcharges). Even in the case of ongoing investigations, leniency will still be considered if they report violations during the Period. However, the MOE also made it clear that it will impose strict penalties and administrative sanctions for violations discovered after the Period.

Until recently, we understand that a number companies have voluntarily reported their violations under the leniency program. As the Period can serve as a significant opportunity for companies to address potential legal risks and strengthen their compliance with the requirements for chemical substance management, it is advisable to proactively consider the need for voluntary reporting. If a company has not examined either its list of chemical substances handled at the company or its status of compliance with the registration/declaration obligations under the K-REACH, it is advised to ensure that a thorough examination is completed before the expiration of the Period on October 27, 2025. If any omissions or non-compliant items are identified during the examination, it should consider voluntarily reporting the violations within the Period, thereby mitigating the risks associated with past violations.

[Korean Version]