Government Implements Dispute Resolution System for Chemical Registration Delays

As disputes over costs between companies have led to delays in chemical substance registrations, the government is taking formal steps to mediate these conflicts. The aim is to maintain the principle of shared use of testing data for the same substances while reducing registration delays and the burdens of production and export.

The Ministry of Environment and Energy announced on May 10 that a system to resolve disputes arising during the chemical registration process will be officially implemented starting May 12.

Under the current Chemical Registration and Evaluation Act, companies seeking to register existing chemical substances must form a consortium with other companies using the same substances to jointly secure and submit the necessary testing data. If a later company wishes to utilize already registered substances, it must also obtain consent from the existing data owner to share the data.

In practice, delays in chemical registrations have occurred due to disagreements over data usage fees and cost-sharing arrangements.

The Ministry has established principles for cost-sharing and accounting applicable to the production and use of registration application data in relevant laws, allowing the government to step in for official mediation in case of disputes.

When a company applies for mediation through the chemical substance information processing system, the government will review legal principles, similar cases, and the opinions of related companies to prepare a mediation proposal, which will then be recommended to the parties involved in the dispute.

If mediation fails, the later registering company can apply to the government for a submission deferment regarding the relevant data. If approved, the company can proceed with the registration process without submitting the data and continue discussions afterward.

The government expects that addressing cost disputes will reduce delays in registration and disruptions to business operations.

Jo Hyun-soo, Director of the Environmental Health Bureau at the Ministry, stated, "The government will continue to support the industry in implementing the system with reasonable costs and procedures while ensuring comprehensive information on the harmfulness of chemical substances is secured."