Significant Revisions Planned for 'Legal Certification System' That Hinders Businesses

Simplification of Procedures for Merging 257 Certification Systems
Reduction of Corporate Cost Burden by 150 Billion KRW
Allowing Entry of Private Institutions...Fostering Certification Industry

Prime Minister Han Duck-soo. Photo by Yongjun Cho jun21@

The government has decided to overhaul the 257 domestic statutory certification systems from scratch. Certifications that overlap with international certifications or have low effectiveness will be largely consolidated or abolished, and the costs and procedures required for certification will also be simplified. The government expects that this regulatory reform on certifications will reduce the burden on companies by approximately 152.7 billion KRW.

On the morning of the 27th, Prime Minister Han Duck-soo approved the 'Certification Regulation Reform Plan,' prepared jointly by the Regulatory Innovation Promotion Team of the Office for Government Policy Coordination and related ministries, at the 35th National Policy Agenda Ministerial Meeting.

Certifications increased by 100 over 10 years... Increasing burden on companies

According to the government, South Korea currently has 257 statutory certifications. This is excessively high compared to the United States (93), the European Union (EU, 40), China (18), and Japan (14). While major overseas countries mainly limit statutory certifications to safety, medical, and health sectors, South Korea has a broader scope and many overlapping certifications.

Lee Jung-won, Deputy Minister of the Office for Government Policy Coordination, explained, "Japan has only 14 certification systems. We have increased by about 100 over the past 10 years. Since the government has created far more certifications than the demand from companies, resulting in a significant increase in the number and cost of certifications companies must obtain, we intend to curb the certification system."

First, the government plans to abolish 24 certifications that overlap with international certifications or have low effectiveness. For example, currently, a cosmetics company must obtain the international COSMOS certification to export overseas, and separate domestic certifications such as natural cosmetics certification or organic cosmetics certification to sell domestically. Going forward, domestic certifications will be abolished to reduce the burden on companies.

Additionally, eight certification systems with similar certification targets, test items, and procedures will be integrated. For instance, the Zero Energy Building certification and the Building Energy Efficiency Grade certification operated by the Ministry of Land, Infrastructure and Transport will be consolidated into the 'Zero Energy Building Certification' since their targets and evaluation methods are essentially similar.

Sixty-six certifications will be improved by simplifying costs and procedures. Currently, water and gas meters require full inspection, but a sampling inspection method will be introduced. For companies with automated production lines and fewer quality issues, this will reduce product costs and thus consumer burden. For the Information Security Management System certification operated by the Ministry of Science and ICT, the eligibility criteria will be relaxed from companies with sales of 10 billion KRW to 30 billion KRW, and the audit period will be shortened to reduce the burden on small internet shopping malls and others.

Allowing private institutions to enter... Growing the certification industry

Furthermore, the government plans to introduce the 'Declaration of Conformity' used in the United States, Japan, and the EU into the domestic certification system. This is a system where manufacturers declare quality conformity themselves or through confirmation by testing and inspection agencies, representing a post-management approach where companies take direct responsibility for product safety. It will be first introduced to KS certification, Broadcasting and Communication Equipment certification (KC certification), and eco-friendly ship certification.

In particular, the government has set a policy to allow private institutions to enter certification systems currently monopolized by public institutions. The designation criteria for electrical product certification bodies will be expanded to include for-profit corporations, and broadcasting and communication equipment certification will be transferred to private certification bodies. Multiple certification bodies will be allowed for fire equipment performance certification and type certification.

Deputy Minister Lee said, "Government-led certifications have many monopolistic systems, so general companies had to visit and wait at those places to obtain certifications, which was inconvenient. We will dismantle the monopoly system and allow private institutions to enter the certification market to foster competition." This is expected to enhance the international competitiveness of the domestic certification industry.

The government estimates that this system improvement will reduce the burden on companies by about 152.7 billion KRW. Deputy Minister Lee added, "Beyond reducing the burden on companies, the economic benefits expected through self-declaration of conformity and other measures will be much greater. We will monitor whether statutory certification systems are fully revised and immediately proceed with improvements under enforcement ordinances or lower-level regulations to alleviate corporate inconveniences."

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