South Korea Expands K-REACH: Enhanced SME Support and New Roles for Environmental Agencies

On August 20, 2025, South Korea’s government adopted amendments to the Enforcement Decree of the K-REACH Act (the “Act on the Registration and Evaluation of Chemical Substances”), following the revision of the Act itself (Law No. 20860), which was promulgated March 25, 2025 and becomes effective September 26, 2025.

These changes reflect a shift toward greater institutional involvement and improved support mechanisms—especially for small and medium enterprises (SMEs)—as the country seeks stronger chemical management and regulatory compliance. For multinational and domestic companies working in or with South Korea, these revisions warrant careful attention.

In this blog we breakdown the changes and implications for regulated entities and recommend next steps for compliance teams.

What’s Changing: Key Amendments in the Enforcement Decree

Expanded SME Support (Article 29-2, new Subparagraph 7)

• The scope of assistance available to SMEs is broadened to explicitly include initiatives aimed at reducing the use of highly hazardous chemicals.

• Legal authority is now established for providing financial and technical support to SMEs in these reduction efforts.

• These enhancements aim to lower the barrier for SMEs to participate in safer chemical practices, compliance activities, and substitution strategies.

  
  

New Duties for KEPI (Korea Environmental Preservation Institute) (Article 31, new Paragraph 7)

• KEPI is now designated as an entity eligible to be entrusted with select governmental responsibilities under K-REACH.

• Among its roles, KEPI may:

  • Operate and support the Information Review Committee (Article 7-1-4)

  • Conduct preliminary research and reviews for that committee

  • Support SME chemical reduction efforts under the newly added Article 29-2-7

    
    

Task Allocation Among Agencies & Institutions (Article 31, new Paragraph 8)

• KEPI, along with the Korea Environment Corporation and the Korea Chemical Management Association, may be entrusted with responsibilities including:

  • Training professionals in chemical management (per Article 42-2-5)

  • Executing legal compliance programs, educational outreach, and public awareness under Article 29-2-1 of the Enforcement Decree

• The specific assignments among these entities will be determined by subsequent official notices.

  
  

Public Comment Period

• Interested persons, institutions, and organizations may submit comments on the proposed amendment to the Ministry of Environment (MoE).

• The deadline for comment submission is September 29, 2025.

  
  

Implications for Compliance, Regulation, and Industry

These enhancements in Korea’s chemical regulatory framework carry several ramifications for companies operating within or exporting into Korea, particularly for SMEs and organizations involved in chemical manufacture, import, formulation, or downstream use.

1. Greater Institutional Capacity & Oversight

By involving KEPI and more clearly allocating tasks to multiple environmental organizations, Korea is reinforcing the institutional infrastructure for chemical regulation. This could result in more rigorous reviews, broader enforcement efforts, and faster responsiveness to emerging chemical risks.

Compliance teams should anticipate that oversight and support mechanisms may scale up in sophistication, reach, and inter-agency coordination.

2. Support but Also Scrutiny for SMEs

The expansion of SME support is a positive development: small and medium enterprises may gain more access to technical assistance and financial incentives for reducing use of high-hazard substances.

At the same time, enhanced support might be accompanied by more stringent monitoring, reporting expectations, or conditional obligations tied to receiving assistance. SMEs seeking to avail themselves of assistance should ensure their internal systems, data collection, and compliance readiness are robust.

3. Need to Monitor Enabling Regulations & Notices

Because the new roles and task divisions across KEPI, the Korea Environment Corporation, and the Korea Chemical Management Association are to be specified by future notices, companies must actively monitor MoE announcements, official gazettes, and public consultations.

Notices may define which tasks (e.g. reviews, training, compliance enforcement, outreach) each institution handles and that may influence how you interface with regulatory bodies in Korea.

4. Potential Incentives & Strategic Opportunities

• If financial or technical support is meaningfully deployed, some companies could leverage these programs to accelerate safer-substance transition or reformulation strategies.

• Early engagement (e.g. via public comment) could allow industry stakeholders to shape implementing rules in a way favorable to practical compliance burdens and timelines.

  
  

5. Prepare for Elevated Expectations in Chemical Management

With enhanced institutional capacity and regulatory infrastructure, Korea is likely to demand higher standards of chemical hazard assessment, substitution justification, exposure control, documentation, and transparency.

Companies working in Korea should ensure their chemical compliance systems, supply chain chemical data, hazard assessments, and internal auditing are ready to satisfy deeper scrutiny.

Recommended Actions for Compliance Teams

To stay ahead of these changes and maximize the strategic benefit of them, here’s what compliance teams should do now:

Conduct a Regulatory Impact Scan

• Examine your Korea-specific chemical usage, import, processing, and downstream applications to assess which products or substances might come under greater focus.

• Flag high-hazard chemicals or challenging use cases for early review and risk assessment.

  
  

Engage in the Public Comment Process

• Draft comments (alone or via trade associations) on the Enforcement Decree amendments. Focus on clarity, implementation feasibility, burden of new tasks, and consistency across stakeholders.

• Collect data, operational constraints, or case studies that support your position.

  
  

Monitor Announcements & Implementing Rules

• Track MoE, KEPI, and other institutional directives or notices that assign specific tasks or establish criteria for SME support, technical assistance, or enforcement approaches.

• Subscribe to legal/regulatory update services, Korean government gazettes, or industry consortia that share Korean chemical regulation developments.

  
  

Align Internal Systems & Capacity

• Prepare or upgrade internal systems for chemical inventory tracking, hazard communication, substitution planning, and compliance audit trail.

• Evaluate whether your organization is eligible to tap into future financial/technical support, and identify steps to qualify.

• Train or ready your environmental, regulatory, and quality staff to engage with new Korean processes, KEPI interface, or compliance obligations.

  
  

Collaborate & Share Intelligence

• Work with local counsel, regulatory advisors, or industry partners in Korea to understand implementation nuances, translation of notices, and procedural expectations.

• Consider collaboration through industry associations or consortia to consolidate comment drafting, horizon scanning, or technical position development.

  
  

Conclusion: Turning Reform into Opportunity

South Korea’s amendment to the K-REACH Enforcement Decree marks a strategic strengthening of its chemical governance architecture. While compliance demands may become more intensive, the expanded support framework for SMEs offers a meaningful lever to drive safer chemistry adoption, particularly for smaller players who might otherwise face resource constraints.

From a compliance perspective, the shift underscores the need to be proactive: monitor the evolving institutional roles, engage in the comment period, and ensure your Korean operations or supply chains are positioned to adapt.