CONFIDENTIAL KOREA CONCLUSIONS & RECOMMENDATIONS
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environmental performance in the context of sustainable development.
1. Environmental Management
Strengthening the implementation of environmental policies
Achievements since the previous OECD environmental performance review (1997) include
striking progress with air management (major cuts in SOx, particulate pollution), water infrastructure
(massive investment in sanitation, totalling about USD 20 billion since 1997), water management
(establishment of river basin management), waste management (recycling, incineration and sanitary
landfill infrastructure), and nature/biodiversity protection. New environmental legislation was adopted
(18 new acts) and more bills are pending in the National Assembly. Korea is gradually changing its
approach to environmental management. New legislation has been enacted to foster the use of economic
instruments in environmental protection (e.g. Special Act on Metropolitan Air Quality Improvement for the
capital region) and to introduce mandatory public green procurement (as part of the Act on Promoting the
Purchase of Environmentally-Friendly Products). To improve environmental management at the territorial
level, river basin environmental offices and a metropolitan air quality management office were established
under the supervision of the Ministry of Environment. Public-private partnership platforms with business
and environmental non-governmental organisations (NGOs) have contributed to addressing many
environmental issues. Many firms have adopted environmental management systems and industry is
actively engaged in voluntary approaches, notably in the areas of oil spill remediation, chemical
management and energy saving. NGOs have been allowed to participate in environmental inspections.
Continuous monitoring systems have been introduced, and monitoring by civilian groups has increased.
Environmental impact assessment (EIA) of projects has been strengthened and reinforced to be more
preventive through development of the prior environmental review system (PERS) in 1999; the
effectiveness and enforcement of both EIA and PERS requires further attention. Integration of
environmental concerns in land-use planning improved with a land-use reform and adoption of the
principle “plan first, develop later” supported by two new acts. Pollution abatement and control
expenditure increased in volume and remained at a robust rate of 1.6 to 1.9% of GDP. Environmental
expenditure (including also expenditure on water supply and nature protection) is well over 2% of GDP.
Overall, Korea has thus taken a range of actions to pursue environmental protection together with
economic development and institutional decentralisation.
However, the sharing of environmental responsibilities (e.g. Ministry of Environment; Ministry
of Construction and Transportation; Ministry of Commerce, Industry and Energy; Ministry of Maritime
Affairs and Fisheries; Korean Forest Service) could be usefully reviewed and revised. In addition,
important challenges remain concerning water, nature and air management. There are very high pressures
associated with CO2 emissions and with use of water, pesticides and fertilisers. The permitting and
enforcement systems have been weakened in recent years. Following the 2002 transfer of all enforcement
duties in the areas of air, water quality and municipal waste management to local authorities, the number of
inspections and the proportions leading to violations and prosecutions have decreased. The permitting
system is still single-media in approach, and lacks regular renewal procedures. Integrated permits for large
stationary sources should be considered. The OECD recommendation in 1997 to foster local capacity
building has not been fully implemented. There is a risk of environmental concerns being too often
superseded by development interests in local decision-making. The integration of pollution and nature
protection concerns in land-use plans varies greatly among municipalities. Economic instruments should be
reviewed to enhance their effectiveness and efficiency (e.g. streamlining, increased rates to induce changes
in behaviour and to internalise externalities). The Framework Act on Environmental Policy of 1990
requires all levels of government to prepare five- and ten-year environmental management plans.