Request a Demo
Who needs an OR?
The Act on Registration, Evaluation and etc. of Chemicals (a.k.a “K-REACH”) requires companies manufacturing or importing a substance in South Korea to register that substance. For legal reasons, only companies with a legal entity in South Korea are allowed to submit a registration. Non-Korean manufacturers or formulators are not able to directly register their substances. Instead, they have two options
(1) Let the downstream Korean importers be responsible for K-REACH registration
(2) Appoint a Korea-based Only Representative (OR) to fulfil the obligation on behalf of the non-Korean manufacturer or formulator.
In case (2), their importers will be regarded as downstream users and do not need to do the registration. However, importers need to confirm if they have been listed in the inventory of importers and their tonnage and uses are covered in the registration.
Advantages of Appointing an OR
In the short term, the non-Korean manufacturer/formulator needs to invest a lot of time and money, but in the long term, he can:
Have control over the registration process for substances
Keep business and technical information confidential without disclosing it to the importer
Take the initiative in trade and be free to sell the substance to new importers
Relieve importers from their obligations to register substances
Gain advantages over other non-Korean suppliers who haven’t registered the substance via OR
Who Can be Appointed as OR under K-REACH?
For K-REACH, the OR has to be a natural person or legal entity based in South Korea. There is no other restrictions on qualifications. Compared with China’s requirements on OR-like agent, which requires capital over 3 million Yuan, no penalty records within 3 years for violations of MEP Order 7(China’s new chemical notification system), sufficient knowledge in the practical handling of the substances, etc., the OR qualification requirement in South Korea is much lower. A low entrance threshold for ORs poses risks for enterprise engaging their services relating to competency in handling substances and during the registration process and negative outcomes may require change to a new OR in the future. It is therefore important to appoint a reliable and qualified OR at the beginning to prevent future delays and unnecessary financial losses.
Influences on OR transfer
It should be noted that the designation of a new OR is necessary before the original OR can be dismissed as previously registered substances must always have a place. Failure to designate a new OR prior to the dismissal of the old OR will invalidate previous registrations.
The new OR will need to re-submit the registration dossier for the non-Korean company it represents. The new OR has to pay the administrative fee again and the registration dossier will be re-examined by the authority. Take pre-registration for example, although the new OR will need to re-submit the pre-registration application, it will not affect the buffer period obtained previously. For registration, it is recommended to firstly obtain new approval and then to abolish the previous registration submitted by the original OR so as to avoid any gaps in smooth trade.
How to Change an OR?
The process of changing OR and the required materials are stipulated in the Enforcement Rules of K-REACH. The practicalities of doing so will depend on the agreements between the non-Korean company and the original OR. Legally there are no restrictions on terminating the services of the existing OR and selecting a new OR to ensure you get the required services.
In general, the new OR is recommended to undertake the OR transfer issues. The dismissal of the original OR and appointment of a new OR can be undertaken simultaneously by uploading both the dismissal letter and the new appointment letter on the IT system at the same time. The letter of dismissal shall be signed by both the non-Korean company and the original OR, and the letter of appointment shall be signed by both the non-Korean company and the new OR. The materials listed below are required, including:
company name, business license number, legal person, contact person and contact information of the original OR
company name, country of the company located, name and contact information of the person in charge, location, etc. of the non-Korean manufacturer/formulator
company name, country of the company located, name and contact information of the person in charge and location of the overseas direct exporter (only when it is not the manufacturer/formulator)
Chemical name, CAS number, product name, etc.
Company name, business license number, legal person, contact person and contact information of the newly appointed OR.
The authority will verify the authenticity of the materials and issue a notice to the applicant within 7 days after receiving the OR transfer application.
