Sharp Increase in Chemical Accidents... National Funding Support Under Review for Facility Improvements

Increase in Leakage Accidents Due to Facility Aging

Ministry of Environment Initiates First National Subsidy Support
70% of Improvement Costs for 300 Small and Medium Enterprises
Total of 8.3 Billion KRW Under Budget Negotiation for Next Year

[Sejong=Asia Economy Reporter Joo Sang-don] As chemical leakage accidents, both large and small, have surged this year, the government is considering injecting national funds into facility improvements. Until now, indirect support such as low-interest loans or consulting was focused on for the safety management of small-scale chemical companies, but with the prolonged COVID-19 pandemic making on-site inspections difficult, the government has decided to take fundamental measures to resolve the root causes.

According to government authorities on the 13th, the Ministry of Environment is pushing for a plan to directly support up to 70% of facility improvement costs with national funds starting next year for financially constrained small and medium chemical handling companies.

An official from the Ministry of Environment said, "This is intended to support small and medium chemical companies that have serious facility aging and high risk of accidents but lack the capacity for facility improvements," adding, "We have decided to reflect 8.3 billion KRW in next year's budget for facility improvements of 300 small and medium enterprises and are currently negotiating with financial authorities."

This was also a proposal made by the small and medium chemical industry during the 'Environmental Policy Committee' meeting held in April with the Korea Federation of SMEs to discuss chemical accident prevention measures.

This is the first time the Ministry of Environment has taken out the national subsidy card to prevent chemical accidents. Until now, authorities have focused on strengthening safety management of small and medium chemical companies by ensuring compliance with chemical substance handling facility standards under the Chemical Substances Control Act, preparing chemical accident prevention management plans, and providing consulting for operator education support. Additionally, costs for environmental facility improvements such as installation of hazardous chemical handling facilities were provided through long-term (3-year grace period, 4-year repayment) low-interest loans.

The Ministry of Environment plans to support equipment improvement costs for containment walls and detection sensors that block hazardous chemical leaks or spills from storage tanks.

The Ministry is considering national subsidy support because chemical accidents, which had been declining, have recently increased again. In particular, accidents due to facility aging are rising sharply. According to the Ministry of Environment, chemical accidents decreased from 87 cases in 2017 to 58 cases in 2019. However, they rebounded to 75 cases last year and increased to 70 cases by July this year. Looking only at chemical accidents occurring in the first half of the year (January to June), the number rose from 34 cases last year to 53 cases this year. A Ministry of Environment official explained, "This is because on-site inspections have been limited due to the spread of COVID-19 while facilities have aged."

Especially, the increase in small-scale accidents is notable. While medium to large-scale accidents involving leakage or spill amounts of 100 kg or liters or more slightly increased from 8 cases last year to 9 cases in the first half of this year, small-scale accidents below that threshold rose 1.8 times from 15 cases to 27 cases. By cause, accidents due to facility aging increased from 6 to 10 cases during the same period. Laboratory and research facility accidents also became more frequent, rising from 2 to 10 cases.

An official from the Ministry of Environment said, "The increase in reported cases is also influenced by the enforcement of the revised 'Regulations on Immediate Reporting of Chemical Accidents,' which imposes reporting obligations even for small-scale accidents, effective since April," adding, "Separately from supporting facility improvements, we are conducting non-face-to-face inspections to verify compliance with management standards at about 1,000 hazardous chemical handling sites with high risk of chemical accidents."

The Ministry of Environment also plans to verify by the end of October this year the following under the Chemical Substances Control Act: △ appropriateness of permits (including change permits and notifications) △ management standards for hazardous chemical handling and accident preparedness substances △ compliance with installation and management standards of handling facilities △ preparedness for resident evacuation in case of accidents. If structural problems are identified, the Ministry plans to undertake institutional improvements accordingly.

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