Items Issues Recommendations
Respect of Intellectual Property in Construction Industry

There were 2 cases of European companies sending samples to Korean laboratory for pre-testing on the market and samples of those products been given to local competitors which have then developed an equivalent product they try to patent.

 A better respect of Intellectual Property by Korean Standard Institute.
Chemicals for Construction There are various regulations to control chemicals in Korea. They encompass regulatory aspects as diverse as hazardous chemicals control and workplace safety. Basic regulatory requirements for industrial chemicals are both the Toxic Chemicals Control Act (TCCA) implemented in 1991 by Ministry of Environment (MOE) and the Industrial Safety & Health Act (ISHA) implemented by Ministry of Labor (MOL).

TCCA addresses new chemical notification, designation of Toxic Chemicals and Observational Chemicals, ban or restriction of certain chemicals on marketing and use, provisions on GLP, test guidelines and confidentiality etc. TCCA also introduced the legal systems for survey of amounts of chemicals in circulation and Pollutant Release and Transfer Registers (PRTRs), which were recently reshaped to provide more detailed regulation and requirements.
The purpose of ISHA is to prevent the accidents at workplace and to protect the workers health by ensuring the occupational safety and agreeable working conditions. This legislation regulates the permission of prohibition of some carcinogens or chronic toxicants, MSDS, warning labels and periodic measurements of working conditions.

Most of the chemicals approved according to ETAG 001 are patent protected. Lowering the trade barrier for this range results in better protection and avoids in addition double costs.
 Lower the trade barrier for chemicals, which are approved according to European Technical Approval Guideline (ETAG) 001, Part 5 (reference : www.eota.be ). Those Chemicals can be approved only if they meet the following requirement of ETAG 001, Part 5. :

4.3 Hygiene, health and the environment
4.3.1Release of dangerous substances

The product kit must be such that, when installed according to the appropriate provisions of the Member States, it allows for the satisfaction of the ER3 of the CPD as expressed by the national provisions of the Member States and in particular does not cause harmful emission of toxic gases, dangerous particles or radiation to the indoor
environment nor contamination of the outdoor environment ( air, soil or water ).

The requirement is equivalent to the Korean requirement below :
The Confirmation Certificate of Chemical Substance is a system that enables the distributors to be aware of chemical substance in the products that they distribute through importing and other channels, so that any unknown chemical substance or severely toxic chemical may be identified and managed properly. This information is given to the distributor for the purpose of notifying its clients and users of the chemical products. (see KCMA http://www.kcma.or.kr)
Aerosol Cans-Polyurethane Foam, Others

Those products are under pressure. Therefore safety rules have to be considered. The manufacturer has to use can material according to EN 10202 and has to prove that the can meets the requirements of the directives 75/324/EEC and 94/1/EC (TRG300 in Germany)

The requirements of The Korean Gas Safety Institute are exactly the same, but all importers are asked to test the cans in Korea before distributing again. In addition a special labeling procedure is required.

 We ask to accept the European Guidelines and allow to print the Korean safety label already in the European country of production. This would lower drastically the trade barriers and the double costs.

Korean Standards are driven by American Standards

 This refers to the trade issue of 2005 and the given answer. The answer does not solve the question, as it was not meant how the services and products are classified, but which e.g. technical requirements the products have to meet in order to be accepted in Korea. As long the most Korean standards for the construction sector are derived from American Standards. As a consequence, European Manufacturers are faced with trade barriers even their products meet e.g. the technical requirements of European Codes. The European Chamber wishes a clear statement about European approved construction material.

Example : The following text of CPC is giving an information on classification of products, but no information on technical requirements :
  • Group: 421 - Structural metal products and parts thereof
  • Class: 4219 - Other structures ( except prefabricated buildings ) and parts of structures, of iron, steel or aluminium; plates, rods, angles, shapes, sections, profiles, tubes and the like, prepared for use in structures, of iron, steel or aluminium, props and similar equipment for scaffolding, shuttering or pit propping.
    		•  Korea could lower the trade barrier when giving a clear statement which Eurocodes and related European Technical Approval Guidelines are accepted. C&M Committee members would like the Korean Government to harmonize their standards with the European ones. Government officials know European standards very well but additional efforts are required to enforce them effectively in Korea.
    Elevators In most countries the authorities require that elevators are designed and manufactured according to relevant safety standards. The most common standard in the world is based on European EN 81 code. This code is becoming also the basis for Korean safety code in coming years. Anyway Korea is planning to keep / implement its own country specific rules in the local code.
    The code ( also EN 81 ) requires testing and certification certain components like :
  • Speed governor,
  • Safety gear,
  • Buffers,
  • Landing door locks,
  • Upward over speed protection system
  • Electro-Magnetic Compatibility

    • The companies selling and installing elevators in Europe need to comply with these requirements and must have the safety components tested and certified by authorized testing laboratory ( CE certificate ).

    The request from European elevator industry is that these CE tests and certificates should be accepted by Korean authorities without any additional local testing.

    The basic documents needed for local test applications are as follows:
    a. Product descriptions with operation manual
    b. Technical documents - Mechanical drawings and electrical schematic drawings for manufacturing

    This testing is very time consuming and costly. Requests for manufacturing drawings are often related also for Company's patents and competitive know how. European makers are very worried about the possibility of losing technical know how to competition.
    Import Tax for Building Materials An existing 8% import tax on all building materials is a real barrier and disadvantage to all European companies engaged in this sector on the Korean market.  
    Standards of Lighting Equipment Since EU standards are not yet recognized on the Korean market for most European lighting products, imported lighting products must be dismantled and “rewired” in Korea with local components while keeping the foreign external design, thus affecting the quality of the imported product, just because of difference in standards.  

    “Black List” on Public Projects in Korea

    		 Projects of the public sector require import substitution for all items that can be manufactured in Korea. As a consequence of this requirement, foreign produced items to be used on public projects cannot be promoted and brand names must be kept secret.  
    Sick House Syndrome Requirements Implementation Requirements are very unevenly enforced : requirements for the composition of gypsum products are extremely stringent on one side when asbestos, which is banned almost everywhere in Europe, is still allowed in Korea.
    Certification Procedure for Solar Modules. From 2009 onwards, each installed solar module must receive a Korean certificate.In the case of Korea the certification procedure is very strange. The authorities want to have very detailed list of used materials, perform an audit in the production facilities and taking photographs over several days. This method is not needed for certifying but a clear measure of technology transfer to Korea.

    Due to above, European company has decided not to sell modules from this year onwards to the Korean market. 
    Building Technologies Small & medium companies’ protection law effective in 2007 limits large company’s bidding for government led projects. As the large companies active in Korea are all foreign companies, actually it is clear that the protection promotes the trade barrier. Allow large sized companies to bid for the government led projects too.