Voluntary Reporting for AREC Violations Offers Compliance Opportunity

The Act on Registration and Evaluation of Chemicals (AREC), also known as Korea REACH, mandates that manufacturers and importers in Korea must register or report chemical substances they manufacture or import. Non-compliance with this regulation can result in severe penalties, including:

• Imprisonment: Up to 5 years
• Fines: Up to 1 billion KRW
• Penalties: Up to 5% of total sales

Many businesses unknowingly violate AREC regulations due to lack of awareness or poor management of electronic records. To address this, the Ministry of Environment, in collaboration with the Ministry of Justice, has introduced a voluntary reporting period to allow businesses to come forward and rectify any past violations.

Key Details of the Voluntary Reporting Period

• Reporting Period: February 28 – October 27, 2025
• Who Should Report: Manufacturers or importers who have violated the registration, reporting, or modification requirements under AREC.
• Penalty Exemptions: Companies that report their violations and correct them within this period will be exempt from legal penalties.
• Leniency for Ongoing Cases: Investigations and prosecutions may receive consideration for leniency, encouraging businesses to come forward and resolve any issues.

How to Report Violations?

To take advantage of this voluntary reporting opportunity, businesses must submit the following documents to the designated reporting institution:

• Violation report form
• Production and import records
• AREC compliance form

Common AREC Violations

Here are some common violations businesses may face under AREC:

1. Unregistered Manufacturing or Importing: Operating without registration or outside the registered details (Article 10, Paragraph 1).
2. Failure to Report: Not reporting existing substances or discrepancies in the reported details (Article 10, Paragraph 3).
3. Unregistered Changes: Manufacturing or importing without registering necessary updates (Article 12, Paragraph 1).

Post-Deadline Enforcement

After October 27, 2025, the government will intensify inspections and enforce strict penalties for any newly discovered violations. Companies that fail to take action during the voluntary reporting period will face the full legal consequences.

This voluntary reporting period offers a valuable opportunity for businesses to rectify past violations of the AREC regulations without facing penalties. By ensuring compliance, companies not only avoid significant fines and imprisonment but also contribute to safer environmental and public health standards.

For more information, visit Ministry of Environment's official announcement.