Safety First

1. Safety First Korean Agency for Technology and Standard(KATS) Product Safety Management System of Korea

2. Current product safety management system I Present status of major policies including market surveillance II III Future product safety policies

3. Current product safety management system I

4. Product Safety Management System KATS ㅇBefore a product is released : Safety certification system [Quality Management and Safety Control of Industrial Products Act, Electric Appliances Safety Control Act] ㅇAfter a product is released: Recall, Market surveillance system[Framework Act on Product Safety] Product Safety Management System Quality Management and Safety Control of Industrial Products Act Framework Act on Product Safety Recall of defective product Market surveillance Pre-market Certification System Post-market Surveillance System Incident investigation Industrial products other than household electric appliances Mandatory reporting of defect Electric Appliances Safety Control Act Border control cooperation International cooperation Consumer products Household electric appliances

5. PRE-MARKET CERTIFICATION SYSTEM 1. Management System(Non-Electric Appliances) (Quality Management and Safety Control of Industrial Products Act, March 2007) KATS Safety Certification System 시험분석기관 High hazardous items(14 items) Manage products from production stage through product test and factory inspection Supplier's Declaration of Conformity Self-regulatory safety confirmation Mandatory indication of hazard information(30items) Safety and quality labeling after manufacturers or importers do self-confirmation if their products meet safety and quality labeling standard Hazardous items which have concerns to induce safety incidents (47 items) Report to a certification body after manufacturers or importers confirm if their products meet safety standard through authorized testing laboratories Differentiating the safety management system in accordance with the level of hazard 리콜 등 필요조치 *제품사고조사 실적(조사중): 자동차용 재생타이어, 세탁물 회수건조기

6. 2. Management System (Electric Appliances ) (Electric Appliances Safety Control Act, January 2009) KATS Safety Certification System 시험분석기관 High hazardous items(53 items) Manage products from production stage through product test and factory inspection [January 2012) Self-regulatory safety confirmation Supplier's Declaration of Conformity Hazardous items which have concerns to cause safety incidents (93 items) Report to a certification body after manufacturers or importers confirm if their products meet safety standard through authorized testing laboratories Sell products after manufacturers assure their product safety themselves (33items) Indicate safety of products after manufacturers or importers do self-confirmation if their products meet the safety standard. Differentiating the safety management system in accordance with the level of hazard 리콜 등 필요조치 *제품사고조사 실적(조사중): 자동차용 재생타이어, 세탁물 회수건조기

7. Manufacturers (domestic and international ) Importers Certification Body Certification Body Self-regulatory Safety confirmation Safety Certification KATS Pre-market management system – Safety Certification, Self-regulatory Safety Confirmation Operate safety certification and self-regulatory safety confirmation High hazardous products are regulated as items subject to safety certification 시험분석기관 Low hazardous products are regulated as items subject to self-regulatory safety certification. Relevant act: Electrical Appliances Safety Control Act, Quality Control and Safety Management of Industrial Products Act Procedure for safety certification and self-regulatory safety confirmation Application to Certification Factory Inspection Certificate Issuance Product Testing Certification Body 리콜 등 필요조치 *제품사고조사 실적(조사중): 자동차용 재생타이어, 세탁물 회수건조기

8. KATS POST-MARKET SURVEILLANCE SYSTEM (Framework Act on Product safety, February 2011) Brief of the Framework Act on Product Safety 시험분석기관 • The government may conduct safety investigations of the products distributed on the • Korean markets to verify their safety. • The government may analyze product incidents and conduct inspection to prevent recurrence of the incident. • The government may recommend the enterpriser to carry out a recall of the products • which have minor defect. • ④ The government may order the enterpriser to carry out a recall of the products and announce • the case to the press for products having major defects. • ⑤ If enterprisers are aware that their products are unsafe, they should report it to KATS and carry out a voluntary recall. • ⑥ Where enterprisers do not conduct a product recall, the government may conduct a mandatory recall and then claim expenses to the enterpriser. 리콜 등 필요조치 *제품사고조사 실적(조사중): 자동차용 재생타이어, 세탁물 회수건조기

9. Present status of major policies including market surveillance II

10. KATS Infrastructure for Product Safety Management Strengthen safety investigation of products distributed in the market Expand consumer participation for product safety monitoring Conduct safety investigation cooperation with certification bodies, consumer groups and local governments Place safety monitoring observers and safety keepers in the market * Safety keepers: (‘10) 150 people *Safety investigation of products (‘07) 842 cases (‘08)1,003 cases (‘09) 3,049 cases (‘10) 3,035 cases Strengthen safety management of imported products in cooperation with the Korea Customs Service Give support to develop difficult common technologies for weak areas of product safety Enhance control of imported products by expanding scope of the products which should get safety confirmation from a custom director. • Support R&D on advances in safety to solve original problems of product safety accidents • Fund 5 billion won(KR) for 34 projects in 2009 • Fund 3.8 billion won for 30 projects in 2010. * 153 items including 22 child products,129 electric appliances

11. KATS Prohibit distribution of illegal and defective products through safety Investigations An integrated information database for product safety linked to relevant organizations, consumer groups and stores ▶ Establish an integrated DB for analysis of product safety information including product hazards and recalls. ▶Prohibit sales of hazardous products in stores or online shopping by using e-blocking system. KATS Market surveillance Product certification Consumer injury Incident investigation • Integrated • informationDB Product certification Enterprisers’ reports Prohibit distribution of hazardous products Prohibit hazardous imports e-blocking system Wholesale and retail stores Online shopping Large-sized stores

12. III Future product safety policies

13. KATS Change of paradigm for product safety management Expand self-regulatory safety management system Strengthen social responsibility(recalls) (since 2010) Economic Growth (1980~1990) Early industrialization Entry of developed countries (since 2000) 1980 ~1990 1960 ~1970 Since 2000 Since 2010 Model recognition Safety Certification Ensure consumer safety Supplier's Declaration of Conformity Export inspection Enhance product quality Assure minimum quality Enhance consumer safety and autonomy of enterprisers

14. Ways for future product safety policy Strengthen control and supervision after a product is released. ㅇBefore a product is released : Expand self-regulation of enterprisers from Safety Certification System to Self-regulatory Safety Confirmation System and Supplier’s Declaration of Conformity System ㅇAfter a product is released: Encourage enterprisers to take corporate social responsibility by strengthening market surveillance according to the Framework Act on Product Safety After product is released, Market surveillance system (Framework Act on Product Safety) <Recall system> After a product is released, Post-regulation system Before a product is released, Pre-regulation system Before a product is released, Pre-regulation system (Individual acts) <Safety Certification, etc,.> Safety Certification System Self-regulatory Safety Confirmation System Supplier’s Declaration of Conformity System

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