Support in Words Only, Frustrated Companies

"Urgent Need to Shorten Pre-Approval Process for Diversifying Import Sources"

Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Economy and Finance, is delivering opening remarks at the 2020 Economic Policy Direction Business Leaders Meeting held at the Korea Chamber of Commerce and Industry Building in Jung-gu, Seoul on the 27th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Dongwoo Lee] Domestic petrochemical company A recently began considering diversifying its import sources due to the spread of the novel coronavirus infection (COVID-19), but has yet to make a final decision. This is because the Ministry of Environment's document review period for importing new chemical substances takes at least about a month. This contrasts with the government's swift import approval support measures for chemical intermediate materials during Japan's export restrictions last year.

Although the government has announced various measures to actively support companies affected by COVID-19, the sentiment on the industrial front remains cold. Unexpected difficulties are arising one after another due to the spread of COVID-19, but government support measures are reportedly delayed by various procedures and are not progressing quickly.

According to the business community on the 17th, domestic petrochemical companies including company A recently requested the government through the Korea Chamber of Commerce and Industry to shorten the registration and approval period for new chemical intermediate substances under the Chemical Substances Control Act (Chemicals Control Act). They are asking for a fast track to be applied to the document and toxicity review conducted by the National Institute of Environmental Research under the Ministry of Environment for new approvals. If applied, the review period, which previously took more than two months, could be shortened to two weeks.

The Ministry of Environment has, in principle, agreed and formed a consensus with the companies' demands. However, time is being delayed as the ministry requests companies to provide a list of chemical substances for which fast track applications will be made, along with the companies expected to be affected.

A business community official said, "Companies are requesting to shorten the pre-approval procedures in preparation for inevitable difficulties in securing intermediates if the COVID-19 spread continues," adding, "The government is asking companies for anticipated damages as if there is no immediate problem."

The Fair Trade Commission's investigations into companies' financial status and working conditions are also still a burden. Although the Fair Trade Commission announced a passive administrative policy to minimize on-site and document investigations of companies for the time being due to the COVID-19 situation, the business community claims that preparing documents for actual investigations is rather increasing their workload.

A representative from company B said, "We are coming to the office even during telecommuting to prepare essential documents," adding, "Parts that could be conducted face-to-face have to be replaced with written submissions, so the volume of documents has increased, lengthening the preparation period."

In response, the Fair Trade Commission stated that while minimizing on-site and document investigations, there are limits to uniformly controlling each team regarding parts where essential investigations are required.

A Fair Trade Commission official said, "We understand the difficulties companies face in preparing documents under unfamiliar situations such as telecommuting due to the COVID-19 spread, but it does not mean they cannot prepare or submit them," adding, "We are minimizing face-to-face investigations with the person in charge and conducting document investigations only for parts that inevitably must proceed."

This content was produced with the assistance of AI translation services.