The Ministry of Environment (“MOE”) recently expressed its commitment to accelerate regulatory innovation by improving the environmental impact assessment system through active administration. “Active administration” refers to public officials’ act of proactively handling matters based on creativity and expertise for the public interest, such as improving unreasonable regulations. Pursuant to Article 4 of the General Act on Public Administration and the Regulations on Active Administration Operation, each central administrative agency, including the MOE, has an Active Administration Committee for handling such matters.
The MOE also announced that it has been seeking measures to rationalize the scope and procedures of environmental impact assessment since the environmental impact assessment system and chemical substance regulations have been considered MOE’s killer regulations. The MOE plans to implement structural reforms to the framework as well as to continuously improve the system through active administration.
Against this backdrop, the MOE’s Active Administration Committee deliberated on and resolved the following three agendas on August 7, 2023.
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Agenda 1: Rationalization of the Assessment Standard for Small-Scale Environmental Impact Assessment (Environment Assessment Policy Division) |
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(Current system) Whether to conduct small-scale environmental impact assessment for additionally approved project areas is determined based on the “initially approved project area” for related developments.
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(Proposed amendment) In case of multiple approvals for related developments, whether to conduct small-scale environmental impact assessment for the additionally approved area is determined based on the “project area immediately before exceeding the minimum area.”
※The proposed amendment is also reflected in the proposed partial amendment to the Enforcement Decree of the Environmental Impact Assessment Act (announced on August 25, 2023).
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Agenda 2: Rationalization of the Assessment Standard for Strategic Environmental Impact Assessment (Environment Assessment Policy Division) |
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(Current system) Whether to collect opinions and negotiate/renegotiate on changes is determined based on the magnitude of increase outside the minimum scope of the affected area only in cases of road and railway construction projects that are conducted as “Government-financed projects.”
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(Proposed amendment) The same shall apply to road and railway construction projects under the Act on Private Participation in Infrastructure.
※The proposed amendment is also reflected in the proposed partial amendment to the Enforcement Decree of the Environmental Impact Assessment Act (announced on August 25, 2023).
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Agenda 3: Active Interpretation of the Provision on Permission to Capture and Collect Endangered Wildlife (Biodiversity Division) |
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(Current system) Issuing permits to capture and collect endangered wildlife “after issuing permits for development activities” causes delays in development projects and economic losses of project owners and local residents.
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(Proposed amendment) In case of public projects for which consultation of environmental impact assessment is complete, the habitats of endangered wildlife can be relocated before the permit for development activities is issued.
Thus, business operators may consider utilizing the “active administrative” system when difficulties arise during project implementations through environmental impact assessment or when legal issues arise due to a gap between law and actual practice in other environmental areas. In particular, when public officials interpret laws and regulations passively due to the absence or lack of clarity of the relevant laws and regulations, business operators may utilize the MOE’s active administrative system to resolve (i) an unreasonable situation that contradicts the purpose of the environmental impact assessment system (Agenda 1), (ii) inequalities between business operators (Agenda 2), or (iii) excessive time, costs, or losses incurred during project implementations (Agenda 3).
The Environmental Impact Assessment Act is a system that requires pre-regulation of various projects by nature and suffers from a gap between law and actual practice. This may lead to unexpected legal challenges for business operators while pursuing development projects. To this end, it is advisable for relevant companies to consider the proactive administrative procedure to resolve such issues.
