Hazardous Chemical Business Permit in Korea

What is a hazardous chemical business, and which businesses need a permit?

Hazardous chemical businesses fall into five types: manufacturing (for sale), sales (commercial sale), storage, transport (excluding transport by aircraft, ship or rail) and use (using the chemicals to make products or in work processes such as cleaning or painting). Not all businesses are treated the same way: those required to submit a chemical accident prevention plan, among others, need a permit, while those handling smaller quantities (installing or operating handling facilities at or above the lowest threshold quantity but below the lower threshold quantity) file a report instead. Which applies depends on the substances and quantity thresholds, so confirm this first at the planning stage.

What are the permit requirements?

(1) Who needs a permit: a person who intends to install or operate facilities handling the lower threshold quantity or more for each hazardous chemical, or to transport more than 1 tonne of hazardous chemicals at a time, must submit a permit application.

(2) Facilities, equipment and staff: to obtain a permit, you must meet the handling-facility, equipment and technical-staff standards for each hazardous chemical. The Enforcement Rule sets facility and equipment standards such as changing rooms, personal protective equipment, fire-fighting and alarm equipment and detection/alarm devices, and a standard of at least 1 technical staff member holding a national technical qualification (such as Chemical Engineer) or a relevant degree and experience. Transport businesses also need a parking area and a vehicle-washing facility.

(3) Prior documents: the permit application must include a chemical accident prevention plan that has received a notice of suitability and a handling-facility inspection result that has passed.

(4) Disqualifications: adults under full or limited guardianship, bankrupts who have not been reinstated, persons sentenced to imprisonment without labour or heavier for violating this Act where 2 years have not passed since the sentence was served, persons for whom 2 years have not passed since their permit was revoked (limited to the revoked business), and corporations with such officers cannot run the business.

Which documents are needed?

Attach the following to the permit application. The basics are the chemical accident prevention plan with a notice of suitability and the passed inspection result, data on the planned annual handling quantity of hazardous chemicals, a statement of handling facilities (area, capacity, number, location map and layout plan for each facility), and a statement of equipment and technical staff. A transport business also needs a copy of its freight trucking business permit or construction machinery rental business registration, and if the applicant (including officers of a corporation) is a foreign national, documents such as those issued by an authority of the relevant country proving that no disqualification applies are required. The corporate register and business registration certificate are checked by the official through shared administrative information. For a report, only some of these documents are attached to the report form.

What is the procedure?

(1) Check the substances and quantities handled (permit or report) → (2) prepare and submit the chemical accident prevention plan and receive the notice of suitability → (3) install the handling facilities and pass the inspection → (4) secure equipment and technical staff → (5) submit the permit application and attachments to the head of the regional environmental office → (6) receive the permit and permit certificate → (7) appoint a hazardous chemical manager before starting business and report the appointment. Preparing the chemical accident prevention plan and inspecting or safety-diagnosing handling facilities are the domain of designated specialist institutions, and our office does not do this work.

How long does it take?

The Enforcement Rule provides that a person who has submitted a permit application must obtain the permit within 15 days, and the application form also states a processing period of 15 days. This assumes an application that meets all requirements; time for the plan's notice of suitability and the facility inspection is separate.

Which authority receives the application?

Submit the permit application to the head of the regional environmental office (regional environmental office, etc.) with jurisdiction over the workplace location. By law, the permitting authority is the Minister of Climate, Energy and Environment, and the permit or acceptance of a report is also notified to the head of the fire authority with jurisdiction over the handling facility.

Why is a permit refused or revoked?

Typical reasons confirmed in the law: the handling facility, equipment or technical staff standards are not met, the plan's notice of suitability or the inspection pass has not been obtained, or a disqualification applies. After the permit, obtaining it by false or fraudulent means, failing to obtain a change permit, or not starting business within 2 years of the permit or suspending it for 2 years or more without justifiable reason are among the grounds for revocation or business suspension. Running a business with or handling hazardous chemicals without a permit can lead to imprisonment of up to 5 years or a fine of up to KRW 100 million.

What can an administrative agent help with?

YouSun Administrative Agency prepares permit, change and report applications and attachments, reviews requirements and submits them to the authority on your authorization. Preparing the chemical accident prevention plan, inspecting or safety-diagnosing handling facilities, and testing or measurement are the domain of specialist institutions and qualified professionals and are not handled. Work restricted by other laws cannot be handled, and litigation or court representation is outside the scope of an administrative agent and is not offered. Whether a permit is granted and the outcome are decided by the competent authority.