MAJOR ENVIRONMENTAL LAWS, POLICIES, AND REGULATORY

UNCLAS SEOUL 000398

SIPDIS

SIPDIS

PASS USTR FOR CUTLER
STATE FOR OES/ETC, OES/ENV, OES/PCI
STATE ALSO FOR EB/TPP/BTA AND EAP/K
EPA FOR OIA
USDOC FOR 4431/ITA/MAC/OPB/EAP/MORGAN
WHITE HOUSE FOR CEQ

E.O. 12958: N/A
TAGS: SENV ETRD KS
SUBJECT: MAJOR ENVIRONMENTAL LAWS, POLICIES, AND REGULATORY
SYSTEMS IN KOREA


Summary
--------------

1. Korea has made significant progress in addressing the
need for environmental protection since the early 1990's.
In preparation for upcoming trade negotiations, this report
provides background information on Korea's environmental
laws, policies and regulatory systems, and provides
indicators regarding the impact of these government
measures. The report covers the following topics:

-- Major Environmental Legislation;
-- Environmental Policies and Regulatory Systems;
-- Nature and Ecosystem Conservation;
-- Air Quality Management;
-- Water Quality Management;
-- Waste Management and Recycling;
-- Public Health Protection and Toxic Chemicals Control
-- Key Environmental Performance Indicators; and
-- Korea's Participation in International Environmental
Conventions.
End summary.

Major Environmental Legislation
--------------

2. Most of the major environment-related laws currently in
effect have been adopted since the early 1990s. They have
been frequently amended over the past decade, in response to
newly arising domestic and international environmental
issues.


3. Currently, the Republic of Korea (ROK) has 38 principal
environmental statutes in effect, and more than 80 draft
bills on environmental issues are pending at the National
Assembly for approval as of year-end 2005. The vast
majority of the latter are draft amendments to existing laws
designed to cope with domestic environmental issues. Major
environmental acts in force are listed below:

-- Environmental Policy Framework Act of 1990
-- Natural Environment Conservation Act of 1991
-- Water Quality Conservation Act of 1990
-- Clean Air Conservation Act of 1990
-- Wastes Control Act of 1986
-- Noise and Vibration Control Act of 1990
-- Toxic Chemicals Control Act of 1990
-- Control of Transboundary Movement of Hazardous Waste and
Their Disposal Act of 1992
-- Natural Park Act of 1980
-- Sewerage Act of 1966
-- Environmental Dispute Adjustment Act of 1990
-- Drinking Water Management Act of 1995
-- Soil Environment Conservation Act of 1995
-- Environmental Impact Assessment (EIA) Act of 1999
-- Wetland Conservation Act of 1999
-- Foul Odor Prevention Act of 2004
-- Wildlife Protection Act of 2004
-- Antarctic Activities and Environmental Protection Act of
2004
-- Special Act on Metropolitan Air Quality Improvement of
2003
-- Indoor Air Quality Management Act of 2003
-- Environmental Improvement Expenses Liability Act of 1991
-- Disposal of Sewage, Excreta & Livestock Wastewater Act of
1991
-- Promotion of Saving and Recycling of Resources Act of
1992
-- Promotion of Construction Waste Recycling Act of 2003


4. Since becoming a member of the OECD in 1996, the ROKG
has adopted new legislation or revised existing statutes in
order to bring Korea up to OECD-level standards. Several of
the bills pending before the National Assembly or under
preparation have been crafted by the ROKG to create the
legal basis for implementation of multilateral environmental
treaties or agreements. They include a draft bill on Dioxin
and Persistent Organic Pollutants (POPs). A draft bill
revising the Marine Pollution Prevention Act to address
marine pollution from both ships and land-based sources is
under review at the Ministry of Legislature.

Environmental Policies & Regulatory Systems
--------------

5. As outlined in the 1997 OECD report on the
"Environmental Performance of Korea," Korea has worked to
address environmental problems neglected in the early
decades of its remarkable economic development.
Implementation of environmental policies is proceeding
progressively. Pollution abatement and control expenditures
have been holding steady at 1.5 percent of Korea's GDP. The
country is being equipped with environmental infrastructure,
and both regulatory and economic instruments are in use.
Local government plays an increasing role in implementing
environmental policies as envisioned in the "Local Agenda
21" program.


6. The Green Vision 21 Program (1995-2005) recognized the
considerable efforts needed to rehabilitate Korea's
environment, and provided an ambitious schedule for
reinforced environmental protection in an expected context
of high economic growth and pressures on the environment.


7. Korea's regulatory system is characterized by a
combination of generally-applicable rules and a "place-
based" approach where necessitated by intense development
pressures or a vulnerable environment. The main instruments
are emission/discharge permits, ambient environmental
standards, and the designation of zones where special
conditions apply. A formal enforcement program is in place,
with inspections, fines and indictments. A number of
standards and limits have been tightened gradually over
recent years.


8. The ROKG has been creative in adding an array of
economic instruments to its set of regulatory instruments.
These include: emission charges; environmental quality
improvement charges; traffic congestion charges; energy
taxes; a deposit-refund system, which was recently changed
into the Extended Producer Responsibility (EPR) system; and
a waste management charge.


9. Korea has a tradition of strong central government.
Local government, however, spends 83 percent of overall
public environmental expenditures (including pollution
abatement and control expenditures),and recently greater
environmental decision-making power has been delegated to
the local level. This process is not yet functioning as
well as it should; local governments need to build up
expertise in implementing and enforcing environmental
protection measures to tackle, for example, compliance
problems involving smaller factories and enterprises.


10. Korean industry has benefited from the government's
export-oriented policies, including relatively lenient
environmental constraints, which are now gradually being
tightened. The more progressive exporting industries are
adopting environmental management systems and applying them
to their subsidiaries worldwide.


11. The two main strategic environmental policy documents,
the "Presidential Vision for Environmental Welfare" and
"Green Korea 2004," the annual publication of the Korean
Ministry of Environment (MOE),provide clear and ambitious
perspectives on a number of environmental objectives. Main
elements of environmental policies and regulatory systems
envisioned in the documents follow:

Nature Conservation
--------------

12. Historically, the environmental statutes and regulatory
systems in Korea have focused primarily on water pollution,
air pollution, and waste management. A turning point away
from that traditional approach was the passage of two
important laws in early 1990s. One was the Nature
Environment Conservation Act (1991) and the other the
Environmental Impact Assessment (EIA) Act, passed in 1993
and amended in 1997. As recommended by the OECD, Korea has
been implementing a mandatory EIA process for the nation's
major development projects in an effort to balance the
interests of development and environmental protection.


13. A key ROKG conservation initiative aims at the creation
of an eco-network on the Korean Peninsula, conserving the

notably biodiverse ecosystems of the Demilitarized Zone
(DMZ),the Baekdu mountain chain (down the spine of South
Korea),and various small islands and coastal regions.
Korea aims to conserve areas with outstanding ecosystems and
high biodiversity through designations of ecosystem
conservation areas, wetland protection areas, and specially-
designated islands. Currently, there are 22 ecosystem
conservation areas, 14 wetland protection areas, and 20
national parks.


14. A Master Plan for Biological Resources Conservation is
being established by MOE to strengthen wildlife protection
measures. It will include surveys of indigenous species and
controls on their export. The Wildlife Protection Act,
passed in 2004, takes effect in February 2005.

Air Quality Management
--------------

15. Korea has been actively enforcing legally-binding
emission standards on six major air pollutants, including
carbon dioxide, sulfur dioxide, nitrogen oxide, ozone, and
particulate matter, in industrial complexes throughout the
country. The Special Act on Metropolitan Air Quality
Management (passed in December 2003, and effective as of
January 1, 2005) stipulates stricter emission standards. It
calls for the introduction of a "total air pollution load
management system," an emissions trading system, and tighter
vehicle emission controls.


16. Since February 2002, Korea has required the
installation of the telemonitoring system (TMS) on
smokestacks with high discharge volumes, and imposes charges
on those which exceed emission standards. As of January
2004, TMS has been installed in 1,841 stacks at 317
industrial sites.


17. To reduce pollution from vehicle exhaust, the ROKG has
set emission standards on newly-manufactured vehicles and in-
use vehicles. Starting in 2006, emission standards on newly-
manufactured gasoline and natural gas vehicles will be
strengthened to the level of ULEV (ultra low emission
vehicle),and diesel vehicles to the level of EURO-4.


18. The ROKG promotes the use of natural gas vehicles
(NGVs) to replace diesel-fueled buses. As of May 2004,
4,876 diesel vehicles had been replaced with NGVs and 20,000
diesel buses, which will account for 48 percent of the total
diesel buses nationwide, are to be replaced with NGVs by

2007.

Water Quality Management
--------------

19. Korean government water management policies are focused
on conserving the water resources of the nation's four major
rivers - the Han, Nakdong, Geum, and Yeongsan Rivers, which
are drinking water sources for more than 40 million out of
Korea's total population of 48 million. Major policies
include the "total water pollution load management system,"
riparian buffer zones, land purchases to prevent water
pollution from non-point sources, and charges for water use.


20. In the field of industrial wastewater, the ROKG
established the Sector-based Environmental Action plan in
January 2004. Its contents include: allowable emission
standards, an increase in the number of controlled water
pollutants, introduction of testing and management of
biotoxins, and improvements in monitoring systems.


21. In March 2004, Korea also introduced a scheme to manage
water pollution from non-point sources, including livestock
waste. This set of measures reflects MOE's growing focus on
non-point source water pollution, shifting from point-source
pollution, which is being largely contained through the
increased use of sewage systems and water treatment
facilities.

Waste Management & Recycling
--------------

22. Korea implemented a comprehensive waste management
policy during the early 1990s, with ambitious targets for
disposal and recycling. Generation of household waste has


substantially declined after the inception of the Volume-
based Waste Fee System in 1995. The daily amount of waste
generation per capita has been reduced from 1.3 Kg in 1994
to 1.03 Kg in 2004. In 2002, for the first time, the rate
of recycling exceeded the rate of additions to landfills.
Between 1997 and 2004, the recycling rate of household waste
increased from 29.1 percent to 49.2 percent, while the rate
of landfills decreased from 63.83 percent to 36.4 percent.


23. Generation of industrial waste is growing more rapidly
than GDP. A growing number of incinerators are put into
operation each year, and many more are planned, to confront
an ever-increasing amount of hazardous waste. Transboundary
movement of waste is now carefully checked, pursuant to the
Control of Transboundary Movement of Hazardous Waste and
Their Disposal Act, which was passed in 1992.


24. In 2003, Korea introduced the Extended Producer
Responsibility (EPR) system, in place of the previous
Deposit-Refund System. The EPR system, which holds
producers responsible for meeting recycling targets, is
being successfully implemented and applies to more than 15
products, including glass bottles, packing film, fluorescent
light bulbs, electronics products like TVs, and computers.

Public Health Protection and Toxic Chemicals Control
-------------- --------------

25. Since Korea became an OECD member, the ROKG has
introduced an advanced management system for chemical
substances (as recommended by the OECD),including a risk
assessment system and a chemicals accident response system.


26. In 1999, the ROKG implemented the Toxic Release
Inventory (TRI),a system that requires companies to report
to the government the amount of chemicals released to the
environment during the process of production or use, as well
as the amount transferred to other places for the purpose of
recycling or disposal. Over the years, the range of
companies subject to the TRI system has been extended to 28
industries for companies with more than 50 employees. The
number of chemical substances subject to the TRI report
swelled to 240 in 2002, up from 80 in 1999.


27. Korea is participating in OECD programs related to
chemical substances such as the Screening Information Data
Set (SIDS) and the Chemical Product Policy (CPP),as well as
in other international efforts, including the Strategic
Approach to International Chemicals Management (SAICM) and
the Intergovernmental Forum on Chemical Safety (IFCS).

Key Environmental Performance Indicators of Korea
-------------- --------------

28. Following are key environmental performance indicators
for 2004, with data for 1997 for comparison:
-------------- --------------
Key Environmental Indicators 1997 2004
-------------- --------------
Air Quality:
Level of Sulfur Dioxide (PPM, Seoul) 0.017 0.005
Level of Nitrogen Oxide (PPM, Seoul) 0.032 0.037
-------------- --------------
Water Quality: (percent of Level II Quality and Better)
Water Quality 86 91
Han River Quality (BOD, PPM) 1.5 1.3
-------------- --------------
Water Supply and Sanitation:
Water Supply Connection Rate 84.7 pct 90.1 pct
Sanitation Connection Rate 60.9 pct 81.4 pct
-------------- --------------
Waste Management:
Per Capita Generation 1.05 Kg 1.03 kg
Household Waste Management
-- Landfill 63.8 pct 36.4 pct
-- Recycling 29.1 pct 49.2 pct
-- Incineration 7.1 pct 14.4 pct
Industrial Waste Management
-- Recycling 63.8 pc 81.2 pct
-- Incineration, landfill, and others 36.2 pc 18.8 pct
-------------- --------------
Source: 2005 Environmental Annual Report to be published by
MOE in January 2006



Participation in International Environmental Conventions
-------------- --------------

29. The ROKG is a member of the international environmental
conventions listed below. They are grouped into six areas,
including atmosphere and climate change, maritime affairs
and fisheries, hazardous waste management, nature and
species conservation, nuclear safety, and others. The first
date for each refers to the date Korea signed, and the
second refers to the date that the convention entered into
force with regard to Korea.

A) Atmosphere/Climate Change
--------------
- United Nations Framework Convention on Climate Change
(UNFCCC)
December 14, 1993; March 21, 1994
- Vienna Convention for the Protection of the Ozone Layer
February 27, 1992; May 27, 1992
- Montreal Protocol on Substances that Deplete the Ozone
Layer
February 27, 1992; May 27, 1992
- The London Amendment to the Montreal Protocol
December 10, 1992; March 10, 1993
- The Copenhagen Amendment of the Montreal Protocol
December 2, 1994; March 2, 1995
- The Montreal Amendment to the Montreal Protocol
August 19, 1998; November 10, 1999

B) Maritime Affairs and Fisheries
--------------
- International Convention for the Regulation of Whaling
(ICRW)
December 29, 1978; December 29, 1978
- International Convention for the Conservation of Atlantic
Tunas (ICCAT)
August 28, 1970; August 28, 1970
- Convention of the Conservation of the Living Resources of
the Southeast Atlantic
January 19, 1981; February 19, 1981
- Convention on the Conservation of Antarctic Marine Living
Resources (CCAMLR)
March 28, 1985; Mar.28, 1985
- International Convention for the Prevention of Pollution
of the Sea by Oil, 1954 (as amended in 1962 and 1969)
July 31, 1978; October 31, 1978
- Convention on the Prevention of Marine Pollution by
Dumping of Wastes and Other Matter (London Convention)
December 21, 1993; January 20, 1994
- International Convention on Civil Liability for Oil
Pollution Damage (CLC)
December 18, 1978; March 18, 1979
- Protocol to the International Convention of Civil
Liability for Oil Pollution Damage, 1969
December 8, 1992; March 8, 1993
- International Convention on the Establishment of an
International Fund for Compensation for Oil Pollution
Damage, 1971 (Fund Convention)
December 8, 1992; March 8, 1993
- International Convention for the Prevention of Pollution
from Ships, 1973 as Modified by the Protocol of 1978
relating thereto (MARPOL 73/78)
July 23, 1984; October 23, 1984
- Convention on Future Multilateral Cooperation in the
Northwest Atlantic Fisheries
December 21, 1993; December 21, 1993
- United Nations Convention on the Law of the Sea
January 29, 1996; February 28, 1996
- Agreement Relating to the Implementation of the Part XI of
the United Nations Convention on the Law of the Sea of 10
December 1982
January 29, 1996; July 28, 1996

C) Waste Management
--------------
- Basel Convention on the Control of Transboundary Movements
of Hazardous Wastes and their Disposal (Basel Convention)
February 28, 1994; May 29, 1994

D) Nature and Species Conservation
--------------
- Convention on International Trade in Endangered Species of
Wild Fauna and Flora
July 9, 1993; October 7, 1993
- Convention on Biological Diversity (CBD)
Oct0ber 3, 1994; January 1, 1995
- Convention on Wetlands of International Importance
Especially as Waterfowl Habitat (as amended in 1982 and
1987) (RAMSAR)
March 28, 1997; July 28, 1997
- International Plant Protection Convention (IPPC)
December 8, 1953; December 8, 1953
- Plant Protection Agreement for the South East Asia and
Pacific Region
November 4, 1981; November 4, 1981
- International Tropical Timber Agreement, 1983 (ITTA)
July 25, 1985; July 25, 1985
- International Tropical Timber Agreement 1994
September 12, 1995; January 1, 1997

E) Nuclear Safety
--------------
- Treaty Banning Nuclear Weapons Tests in the Atmosphere, in
Outer Space and Underwater
July 24, 1964; July 24, 1964
- Convention of the Physical Protection of Nuclear Material
February 7, 1982; February 8, 1987
- Convention on Early Notification of a Nuclear Accident
(Notification Convention)
June 8, 1990; July 9, 1990
- Convention on Assistance in the Case of a Nuclear Accident
or Radiological Emergency (Assistance Convention)
June 8, 1990; July 9, 1990
- Convention on Nuclear Safety
September 19, 1995; October 24, 1996
- Treaty on the Prohibition of the Emplacement of the
Nuclear Weapons and Other Weapons of Mass Destruction on the
Sea Bed and the Ocean Floor and in the Subsoil Thereof
June 25, 1987; June 25, 1987

F) Others
--------------
- The Antarctic Treaty
November 28, 1986; November 28, 1986
- Protocol to the Antarctic Treaty on Environmental
Protection
January 2, 1996; January 14, 1998
- United Nations Convention to Combat Desertification in
Those Countries Experiencing Serious Drought and /or
Desertification, Particularly in Africa
August 17, 1999; November 15, 1999
- Convention for the Protection of the World Cultural and
Natural Heritage (World Heritage Convention)
September 14, 1988; December 14, 1988
- Treaty on Principles Governing the Activities of States in
the Exploration and Use of Outer Space, including the Moon
and Other Celestial Bodies
October 31, 1967; October 31, 1967
- Convention on the Prohibition of Military or Any other
Hostile Use of Environmental Modification Techniques
December 2, 1986; December 2, 1986
- Convention on the Prohibition of the Development,
Production and Stockpiling of the Bacteriological
(Biological) and Toxic Weapons, and on their Destruction
June 25, 1987; June 25, 1987

For Additional Information
--------------

30. The websites of the Ministry of Environment (MOE) and
the Korea Environment Institute (KEI) have additional useful
information. There is a comprehensive study of the use of
Environmental Impact Assessments in Korea on the KEI
website, at www.kei.re.kr/04_publ/pdf/others/KEBP2004. A
comprehensive description of the policies in the "Green
Vision 21" is at the MOE English-language website, at
http://eng.me.go.kr.

VERSHBOW