Korean Industrial Standards Certification System Overview

1. KS Marking Certification System

2. CONTENTS 1 Introduction of KS Certification System 2 Agencies for KS Certification 3 KS Audits KS Marking System 4 Classification of Korean Industrial Standards 5 Certification Procedure

3. KS Marking Certification 1. Outline of KS Marking Certification 1. Outline of KS Marking Certification 1. Introduction of KS Certification System Definition Definition The comprehensive activity to protect consumers, to satisfy diversified needs of customers, and to maximize the economic efficiency Certification by a voluntary application KS Marking System Comprehensive System Certification Arbitrary System Applicant Certification Body Auditing Site Audit Product Audit

4. 2. Purposes 2. Purposes Reliable Trade between Customers and Manufacturers Increased Productive Efficiency Improved Customer Service Boosted Reasonable Consumption Enhanced Industrial Competitiveness Upgraded Product Quality Innovated Manufacturing Technology 1. Introduction of KS Certification System KS Marking System

5. 3. History of Establishing KS Certification System 3. History of Establishing KS Certification System 1961 : Establishing the Industrial Standardization Act ☞ Government-initiative 1982 : Granting KS Certification to Overseas Production Sites ☞ Mainly in Southeast Asia and China 1998 : Entrusting KS Certification Service to Private Organizations ☞ Korean Standards Association Designated ☞ Korean Food Research Institute (Food Products Field) 1. Introduction of KS Certification System 3. History of Establishing KS Certification System KS Marking System • Joint Audit performed together by the Certification Body and a Designated Audit Organization ☞ To enforce follow-up surveillance • Periodic Audit Every 5 Years : All certified product • Periodic Audit Every 1 Year : Designated product (’07 : 151 products designated)

6. 4. Effectiveness of KS Certification 4. Effectiveness of KS Certification Enhanced work efficiency due to easier mechanization of the product Purchase quality products at a reasonable price Safe purchase of quality products 1. Introduction of KS Certification System Consumer Producer KS Marking System Lower price, increased sales and enhanced quality due to the manufacturing cost reduction

7. Enacting/Operating the Acts, Enforcement Decree • & Enforcement Regulations (Implementing the Industrial Standardization) Designated Audit Organizations Quality Control Org. for Products Designated Audit Organizations Agency for Technology and Standards Certification Bodies Ministry of Knowledge Economy Ministry of Knowledge Economy Quality Control Org. for Products Certification Bodies Agency for Technology and Standards • Establishing/Revising/Confirming/Repealing • Korean Standards and the Certification Audit Criteria • Designating/Supervising Certification bodies/ • Designated Audit Org. ( Operating Industrial Standardization Policy) • Granting and Withdrawing KS Certification • Surveillance of KS-Certified companies • Handling various reports on succession to status/ • relocation of manufacturing site and business place (Performing Initiative Certification and Periodical Audits) • 14 organizations such as Korea Inspection & Testing • Institute for General Merchandise etc. (Supporting for Technical Matters) • 8 organizations including Korea Paint/Ink industry • Cooperative Association etc. (Supporting the 1-Year Product Audit) 2. Agencies for KS Certification KS Marking System

8. 3. KS Audits INITIATIVE CERTIFICATION AUDIT The manufacturer who wishes to obtain KS Certification shall submit an application Type of Certification Audit : Initiative audit, Item-added audit, Class-added audit Audit Fees KS Marking System Audit Fees Audit Days • Application Fee : 0.5 million KRW (Basic fee) • 0.25 million KRW added when an item is added • 2 days for an item • 3 days for more than 2 items (~4 items) • 4 days for more than 5 items Auditor Allowance : 0.29 million KRW / Day Traveling Allowance for auditors : Same as that of government officials Surveillance Audit Fees : Same as the initial audit fees Fee for Re-issuing Certificate : 30,000 KRW

9. 3. KS Audits Periodic Audit Yearly Product Testing Good-managed company : Every 4 years Poor-managed company : Every 3 years (According to success/failure in previous regular audit) Only for designated items in order to keep public safety KS Marking System Verification Audit Inspection of Goods on Market In Case management conditions change. ex) CEO changed, Plant sites moved, etc. The government performs inspection on goods on the market unexpectedly.

10. Certification Body (KSA) APPLICANT Designated Audit Org. Submit Receipt Providing Auditors Reviewing Application Set- up Auditing plan Site (Factory) Audit Application Form Review Committee Product Audit Getting Ready For Audit Reviewing Audit Report Issuing Certificate Requesting Auditor Notifying Auditor Re-application Notification Payment completed Reporting Request for testing Corrective Action Notification Of Failure Sending Testing Report All Procedures finished within 40 days 5. Certification Procedure KS Marking System

11. Classification of KS Classification of KS 4. Classification of Korean Industrial Standards ① Product Standard : Indicates form, size, and quality of products ② Method Standard : Indicates testing, analysis, sampling & measurement, and working standards ③ Communication Standard : Indicates terms, technology, unit, and numerical progression CERTIFICATION AREAS AREA LARGE CLASSIFICATION AREA LARGE CLASSIFICATION A Basic Standard L Ceramics KS Marking System Mechanical Engineering B M Chemical Engineering Electrical & Electronic Engineering C P Medical Equipment Metals D Q Quality Management R Transportation Machinery Mining E S Service Civil Engineering F Shipbuilding V Household Goods G Aircraft & Aviation Food Products W H X Information Industry K Textiles