South Korea Introduces K-REACH Grace Period Policy: Voluntary Reporting Grants Exemption from Penalties

On February 27, 2025, South Korea’s Ministry of Environment (MOE) and Ministry of Justice (MOJ) jointly announced at a press conference that a compliance grace period program under the Act on the Registration and Evaluation of Chemicals (K-REACH) will take effect starting February 28. The policy aims to provide companies that have failed to fulfill chemical management obligations with a rectification window, allowing them to avoid criminal and financial penalties through voluntary reporting.

Under the policy, companies that have neglected duties such as chemical registration, notification changes, or pre-notification may be exempted from penalties – including up to five years imprisonment, fines of 100 million KRW (approx $69,000/€63,000/£53,000), and additional penalties of 5% of annual revenue – if they voluntarily notify and rectify violations within eight months (by October 27).

Policy Background: Regulatory Challenges under Strict Rules

Under K-REACH, all companies manufacturing or importing chemicals in South Korea must complete substance registration, submit safety data, and notification changes. Violators face criminal liability (see above), however, surveys reveal frequent non-compliance due to internal management oversights or insufficient awareness of regulations.

Key Provisions of the Grace Period Policy

The program covers two categories:

• Non-compliant entities: Companies that produced/imported chemicals before February 27, 2025, but failed to complete registration, notification changes, or pre-notification.
• Companies with inaccurate information: Companies that have discrepancies between registered/notified data and actual production/import activities.

Applicants must submit the following via the Chemical Information Processing System (kreach.me.go.kr):

• Explanation of violations;
• Production/import records; and
• Standardized notification forms.

Categorized Review Process

The MOE clarified the review framework:

Chemical registration/changes: Evaluated directly by the Korea Chemicals Management Agency (KCMA).

Pre-notification items: Technically reviewed by the Korea Environment Corporation (KECO).

The MOE emphasized that companies already under administrative investigation may receive reduced penalties or case closures based on voluntary notification.

Post-Grace Period Regulatory Intensification

After the voluntary notification window closes, the MOE will collaborate with local authorities to conduct high-intensity on-site inspections targeting non-compliant chemical enterprises. Violations uncovered post-deadline will be strictly penalized under original K-REACH rules.

About CIRS

CIRS Group is a leading provider of comprehensive regulatory compliance services and solutions for chemicals, cosmetics, food and food-related products, agrochemicals, and medical devices. Its chemical team consists of experts with extensive knowledge in chemistry, toxicology, environmental science, and related fields. They are well-versed in various international regulations, including but not limited to CSCL, EU REACH, CLP, GHS, TSCA, and K-REACH. 

CIRS operates a subsidiary in South Korea. By leveraging the expertise of CIRS Korea and the international team, CIRS can provide enterprise various South Korean chemical services, including but not limited to:

• K-REACH resigstration;
• K-BPR compliance; and
• KOSHA SDS submission.

If you need any assistance or have any questions, please get in touch with us via service@cirs-group.com.

Further Information

MOE