1.

Self-Confirmation of Conformity System
 
The self-confirmation of conformity system is a relaxation of the existing self-testing conformity registration system. Specifically, the Amendment allows a person who intends to manufacture, sell, or import equipment prescribed by Presidential Decree (e.g., equipment with low risk of causing harm to the radio wave environment, broadcasting and communications networks, etc.) to be exempt from registration obligations by (i) self-testing the equipment, or (ii) testing with a designated institution, etc., confirming conformity to the relevant standards, and managing/disclosing the information in writing (Article 58-2 (4)). In the past, it was necessary to register the test results with the Minister of Science and ICT (“MSIT”) when intending to manufacture, sell, or import broadcasting and communications equipment, etc., even for low risk products which were not subject to conformity certification – the Amendment simplifies this process by allowing for self-confirmation and disclosure of test results without going through the registration process.

The equipment subject to the self-confirmation of conformity system is being discussed (e.g., lighting equipment, USBs, and equipment operating on batteries), with specific details to be reflected in subordinate legislation in the future, such as the Enforcement Decree and Notices. The relaxation of regulations is expected to allow for a quicker market entry of products, but post-management will be strengthened (e.g., requesting submission of relevant documents).

Persons who manufacture, import, and/or sell equipment without self-confirmation of conformity may be subject to an administrative fine of up to KRW 5 million (Article 89-3 (3)), and persons who fail to preserve documents related to self-confirmation of conformity may be subject to an administrative fine of up to KRW 3 million (Article 90 (5) 2).
 

2.

Obligation to Report Non-Conforming Equipment
 
The Amendment obligates those who have received a conformity assessment to report immediately to the MSIT if they become aware that the equipment has a material defect or is non-conforming with conformity assessment standards, and to take necessary measures such as voluntary correction or recall (Article 58-11 (1)). In other words, the Amendment newly imposes a self-disclosure and voluntary correction obligation, which will require prompt and appropriate action in the event that non-conformity is discovered.

Violation of the reporting obligation may be subject to an administrative fine of up to KRW 3 million (Article 90 (5) 7), and violation of the voluntary correction obligation may result in the MSIT disclosing information about the non-conforming equipment (Article 58-11 (2)).
 

3.

Obligation to Designate a Local Agent
 
The Amendment introduces a local agent system. Under this system, a person who intends to undergo conformity assessment but does not have a domicile or business place in Korea must designate a local agent (i.e., person who has a domicile or business place in Korea) in writing. If a person falsely designates a local agent, then measures such as the cancellation of conformity assessment may be taken. In addition, violations by the local agent are considered to have been conducted by the person receiving the conformity assessment (Articles 58-4 and 58-13).

This is intended to enhance the management of overseas manufacturers through local agents. Thus, it is necessary to carefully consider the capabilities of local agents, since their violations could be attributed to the overseas manufacturer.