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STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 CONTENTS 02 Greetings 04 History & Vision 06 Organization & Organizational Chart and Main Duties 08 Monthly Issue 10 Major Events & Projects 52 Statistics & Performance KATS ANNUAL REPORT 2016 STANDARDS BUILD TRUST

STANDARDS BUILD TRUST

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STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016

CONTENTS

02 Greetings

04 History & Vision

06 Organization & Organizational Chart and Main Duties

08 Monthly Issue

10 Major Events & Projects

52 Statistics & Performance

KATS ANNUAL REPORT 2016

STANDARDSBUILD TRUST

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 0302

Ⅰ. INTRO

Standards Build TrustWorld Standards Cooperation (WSC) unveiled its slogan for the 2016 World Standards Day: ‘Standards to Build Trust.’ In South Korea, standards are mutual promises that guarantee the quality of products and the safety of consumers. Furthermore, the chairperson of the 2016 World Economic Forum in Davos said that the 4th Industrial Revolution will lead to future of ultra-connectivity, in which communication and unity will be established not only among people, but also between people and things and among things. In the wake of such technological advancement, standards will go beyond promoting international trade and grow into a powerful tool that connects the whole world with trust.

Using such standards, the Korean Agency for Technology and Standards (KATS) performs tasks related to standardization, product safety, adequacy assessment, and technical barriers to trade. First, Over the last year, KATS has developed brisk international standards activities, such as implementing standards policy locally according to Smart Standards Korea 2020 and holding international events globally such as the International Conference on Electric Vehicles, Smart Grids, and Information Technology (ICESI) and the International Standards Olympiad. Second, KATS worked to realize a safer society by strengthening the operation of its safety management systems through full-time monitoring of products with potential hazards, such as toys, children's wear, and bags for students, and by fundamentally blocking their distribution. Thirdly, by creating Fast-Track Certification Procedures that support the early release of new fusion products through opening the New Fusion Product Adequacy Certification Center, KATS is preparing to actively usher in the 4th Industrial Revolution. Lastly, KATS put in efforts to facilitate trade according to the international standards by attending the meetings such as WTO and TBT (Technical Barriers to Trade) and pointing out member countries’ norms that are detrimental to international trade as specific trade issues. This brochure summarizes major projects and events that KATS engaged in over the last year.

Looking ahead, KATS promises to faithfully perform its duties as the nation's control tower for standards and certification. Furthermore, KATS will work harder to build trust with corporations, industries, and the society, to promote innovation and support to enhance Korean citizens' quality of life as well as to establish trust with the international community by sharing our standards' expertise and capability with many other nations.

July 2017

Jung Dong-heeAdministrator

KATSMinistry of Trade, Industry & Energy

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 0504

Ⅰ. INTRO

▶ Korean Agency for Technology and Standards was first established as the Analysis and Testing Laboratory under the auspices of the Mint Office producing coinage in 1883, and it has served as an organization that manages all regulatory policies regarding national standards, product safety, testing and certification, and technical regulatory frameworks for the past 130 years. We will make our utmost effort to play a core role in moving our industry forward to compete in global business on equal terms with developed countries.

History & Vision

VisionBy collaboraing with other governmental bodies, supporting enterprises,

gaining citizens' trust, we will grow into the global technical standarad authority.

Establishment of standard system for the 4th industrial revolution

Strengthening of consumer safety through

better product safety management

Strengthening of testing and certification capability and support of early commercialization

new convergent products

Strengthening of export competitiveness by

improving capability to cope with technical

regulation

• Joint operation of national standard system by public and private sectors

• Establishment of standard platform to support creation of future growth engine

• Expansion of standardization to improve citizens’quality of life

• Strengthening of consumer safety through better product safety management

• Strengthening of market monitoring to prevent safety accidents

• Regulatory reformation for systematic product safety management

• Strengthening of global capability and operation of testing and certification

• Support of field and user centered resolution certification difficulties

• Implementation of measurement administration trusted by citizens

• Identification and resolution of unknown foreign regulation and strengthening of support for SME

• Resolution of TBT with China, FTA TBT negotiation and cooperation with developing countries

• Improvement of irrational domestic technical regulation and service of integrated technical regulation information

Implementation Strategy and Programs

Objective

Reactive technical regulation

Proactive technical regulationTechnical Regulation

Domestic markets and manufacturing industries

World markets and service industries

Test Accreditation

Led by government centered on KATS

Led by private sector with participation by government bodies

Standard

Focus on safety certification

Strengthening of safety management throughout product life cycle

Product Safety

Historyof KATS

since 1883

1883-1912

Analysis and Testing Laboratory (Mint Office)

Producing and analyzing coinage

1912-1945

Central Research Laboratory (Colonail Korea)

Industrial testing, analysis, and valuation

1996-1999

National Institution of Technology and Quality

(Small and Medium Business Administration)

SME technology support and quality control

1999-2013

Agency for Technology and Standards

(Department of Commerce and Industry)

National standards, product safety, and certificate policy institution

2013-Present

Korean Agency for Technology and Standards

(Department of Commerce Industry)General institution for managing

national standards, product safety, certificates and technical regulations

1973-1996

National Industrial Testing Laboratory(Industrial Advancement Administration)

Center of industrial testing and analysis during period of economic growth

1945-1973

National Industry Research Laboratory(Ministry of Commerce and Industry)

Outcome of industrial Technology research after liberation

KATS has accompanied an economic revolution in Korea over the past 130 years.

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 0706

Ⅰ. INTRO

Organization Organizational Chart and Main Duties

KATS

General Service

Division

Bureau of TechnicalBarriers to Trade (TBT)

Affairs

WTO TBT Division

FTA TBT Division

Technical RegulatoryReform Division

Technical RegulatoryCooperation Division

Bureau of ConformityPolicy

Conformity PolicyDivision

Conformity AssessmentDivision

Certification IndustryPromotion Division

Metrology &Measurement Division

Bureau of ProductSafety Policy

Product Safety PolicyDivision

Product SafetySurveillance Division

Product SafetyInformation Division

Electrical &Telecommunications

Product Safety Division

Consumer ProductSafety Division

Bureau of StandardsPolicy

StandardsPolicy Division

International StandardsDivision

Standards Coordination Divison

Electrics & Electronics Standards Division

Machinery & Materials Standards Division

Chemistry & Service Standards Division

Standard Policy

National standard authority and

representative to international standardization organizations

(ISO/IEC)

• Overseeing and coordination of standard policies and management of national standard (KS) system

• Interchange and cooperation with international organizations for early leadership in international standardization

Overseeing of safety policies related to household items,

electrical products and children’s goods

• Operation of product safety management system such as safety certification before a product is introduced in the market

• Operation of post market surveillance and monitoring system such as safety inspection and recall

Product Safety

Operation of confirmity

assessment system and legal metrology

• Improvement of certification and accreditation system to cultivate the national testing and certification industries and mitigate burden on business

• Operation of testing and certification related confirmity assessment system

• Operation of legal weight and measure for fair trade and protection of consumer rights

Testing and Certification

Coping with international trade technical barrier

and advancement of domestic technical

Regulation

• Negotiation for and coping with WTO and FTA TBT agreements

• Coordination and management of technical regulation such as technical regulation impact assessment and standard certification portal

Technical Regulation

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 0908

Ⅱ. Monthly Issue

Monthly Issue

01 Education/Training of Meister High School Students … p.10

02 Product Safety Inspection … p.121

January

14 Counseling by 1381 Certification and Standard Call Center Surpassing 100,000 Cases … p.307

July

03 Annual Visitors to Product Safety Portal Surpassing 5 Million … p.14

04 Conference of 2016 Emerging Product T est and Certification Services … p.152

February

15 11th International Standards Olympiad … p.32

16 Expansion of Education and Implementation of Standard … p.348

August

05 Survey and Distribution of Human Body Size of Koreans … p.16

06 First Electric Vehicle International Standard Forum … p.18

07 Opening of New Convergence Product Suitability Certification Center … p.19

08 Establishment of the Fourth Basic Plan for National Standard … p.20

17 NET Certificates Surpassing 1,000 … p.36

9

September

09 International Standards Infrastructure Cooperation Program (ISCP) with Developing Countries … p.22

10 Development and Dissemination of Standardization for Citizens’ Happiness … p.244

April18 The day of metrology and measurement … p.37

19 Building of Foundation for Advancement of Legal metrology … p.38

20 Ceremony for 2016 World Standards Day … p.4010

October

11 APLAC Peer Evaluation … p.26

5

May 21 Ceremony for 9th Product Safety Day … p.42

22 3rd Technical Regulation Policy Forum … p.43

23 Measures to Cope with TBT … p.44

24 1st Standard Leadership Conference … p.46

25 42nd National Quality Management Convention … p.4811

November

12 Ceremony for 2016 World Accreditation Day … p.27

13 Building of Technical Regulation Reformation and Advancement System … p.286

June

26 2016 Product Safety Innovation Forum … p.50

12

December

3

March

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 1110

Finding lifetime job through customized education on testing and certification

Education/Training of Meister High School Students

01* Meister High School : High school that operates the customized

curriculums that are directly linked to industrial needs for vocational education

* Testing and Certification manpower cultivation project:

The project includes Meister High School Testing and Certification Customized Class to secure the world’s first class manpower, the university science and engineering programs, and the global human interchange cooperation programs.

<Table1> Customized Education Program for Meister High School

TaskJuniors Seniors

Introductory Course (8 days) Qualification Course (8 days) Practical Course (6 days)

During Vacation

CollectiveEducation

Duty • Suitability and standard• Introduction of testing and

certification industry

• ISO/IEC17025·17020 operation practice

(testing and inspection personnel)• Statistical analysis and uncertainty

estimation

• Understanding of quality system

• Generation of test report• Management of test result

quality

Field • Field trip to special test centers and industrial sites • OJT at research institutes

After School • Excel and computer program for quality management

<Table2> Meister High School Customized Program Phase 1 and Employment Statu

Agency KTR KCL KTC FITI KATRI KOTITI KTL Total

Persons 25 15 10 3 3 2 2 60

KATS is carrying out the manpower development projects such as educational program specialized for testing and certification and special lecture for university students to train the specialized manpower and create jobs for youth. The educational programs specialized for testing and certification is the program to select and train about 200 Meister High School students for three years (2015 ~ 2017) to train the basic manpower required by bodies. The selected students will be trained by e-learning, cluster education and OJT and will be hired by the bodies upon completion after graduation. The e-learning education conducted during a semester teaches the computer programs mostly used in quality management and statistical analysis. The students are systematically educated of theories and exercises for testing and certification including understanding of testing and certification industry and acquisition of practical qualification through 1st - 3rd collective education programs during the vacation. The first phase of Meister High School Testing and Certification Customized Class graduated 60 students in February 2016 completed the ‘Testing and Certification Customized Education’ program run by Government and were hired by 7 domestic bodies including Korea Testing & Research Institute (KTR) and Korea Conformity Laboratories (KCL). Moreover, 137 graduates of phase 2 and phase 3 of Testing and Certification Customized Class are realizing their dreams of being young maestro through the phased education.

The 200 Meister High School students will be trained by e-learning, cluster education and OJT and will be hired by the testing and certification bodies upon completion after graduation.

Hired OJT at research institutes

Duty education Field trip

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 1312

Post-Recall Management of 10 Key Items

02Product Safety Inspection

KATS conducted the safety inspection of 4,915 household and electrical products including children’s goods in 2016. In particular, it strengthened the recall measures to ensure that the vulnerable products were not distributed in the market. In addition, KATS selected 10 items including toys, infant and children’s clothes, student bags, DC power supply, stabilizer for fluorescent lamps and LED lighting as the key managed items for quarterly inspection since they showed repeated violations in the previous 5 years. KATS strengthened the administrative disposition by ordering recall of violating products without exception. It mobilized the review team of product recall compliance for post-recall management and is cooperating with Korea Product Safety Association (KPSA) and NGOs to monitor the products to improve the effectiveness of recall programs. The detailed information of recalled products is disclosed in KPSA’s homepage (www.safetykorea.kr).

KATS strengthened the administrative disposition by ordering recall of violating products without exception.

<Table> Recall Rate of 10 Key Managed Items (Unit: %)

Type 2015 2016

Household Items

Toys 1.6 3.1

Infant and children’s clothes 9.0 16.9

Student bags 23.3 13.2

Skateboards 15.8 6.3

PVC pipes 26.0 10.8

Electrical Appliances

DC power supplies 21.2 8.4

Stabilizers for fluorescent lamps 45.2 75.9

LED lighting 40.0 31.1

Multi-tabs 1.6 0.0

Electrical wires 0.0 8.8

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 1514

03

04Increased demand for information on recall and safety certification

Testing and certification of wireless charging, 3D printing, etc. to help cultivating them as high value added industries

Annual Visitors to Product Safety Portal Surpassing 5 Million

Conference of 2016

Emerging Product Test and

Certification Services

The number of visitors to the product safety information portal (www.safetykorea.kr) operated by KATS in 2015 surpassed 5.7 million. It is more than 8 times increase from 870,000 million visitors in 2014 and indicates that the product safety information portal has firmly established as the medium to present consumer information related to product safety. The great increase of visitors is attributed to the rapid increase of interest by school parents and enterprises on safety after enactment of the Special Act on Products for Children's Use in 2015, the increased consumer product imports from China following recent signing of Korea-China FTA, and the increased consumers’ demand on information related to recall and others as the government has strengthened the product safety policy. KATS provides the recall and certification information, receives the reports of product accident, and carries out PR campaign of product safety policy through the product safety information portal. It automatically collects the latest product certification data from 7 domestic product safety certification bodies and provides the information to citizens. A visitor to the portal can search for a certification number to check the product safety information and detailed product information before purchase. KATS plans to strengthen the collaboration with other authorities to broaden its collection and disclosure of product safety information such as risk information and certification information.

KATS has selected wireless charging and 3D printing as the subjects for future emerging test and certification services to help early commercialization. For that, KATS held ‘2016 Emerging Testing and Certification Service Conference’ and presented the road map at KTL on February 24. 2016 emergency testing and certification services include ▲ testing and assessment of functional safety of national infrastructure industry, ▲ assessment of inhalation safety of industrial products, ▲ testing and certification of wireless charging for each capacity level, ▲ testing and certification of smart eco-friendly

building, ▲ safety testing of large capacity energy storage unit, ▲ testing of interoperability of IoT, ▲ testing and a s s e s s m e n t o f 3 D p r i n t i n g , ▲ assessment of safety of packaged freight, ▲ testing and certification of wearable smart device, and ▲ assessment of reliability of railway parts. The government plans to bring up the market launch of new industries and new products such as wireless recharger, 3D printer and smart wearable device through emerging testing and certification services and cultivate testing and certification as the high value added service industry.

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 1716

05

KATS supports industrial utilization and commercialization of human body size information.

Survey and Distribution of Human Body Size of Koreans

The body size and shape data are essential information needed for convenient product manufacturing and living space design. Korea has conducted survey of human body size 4 times since 1979. Named ‘Size Korea’ in 2003, it has been conducted every 5 - 7 years. In 2016, KATS jointly conducted the ‘Dynamic Range of the Disabled Measurement’ project with National Rehabilitation Center and the ‘Walking Pattern Measurement and Analysis’ project to track criminals with the National Forensic Service. The collaboration with other bodies expands the development of body size data of Koreans where as the production

of utilization guide expands application of human body data by small and medium enterprises.Moreover, KATS installed the viewer program to view the 3D body shapes in its homepage as the use of 3D data has increased. The scanner for whole body, hand and foot of Koreans is also installed to quickly reflect the demand by industries. In addition, KATS has held the human body size utilization contest (idea development, product development and webtoon production) and providing consulting to help utilization and business startup related to Korean body size data.

<Table> 2016 Size Korea Projects

Type Project Description

1Dynamic range of the

disabled measurement (collaboration with NRC)

• Brain-disabled (cerebral palsy, etc.) children and youth: To be used for design of aids for the disabled

2

Walking pattern measurement and

analysis (collaboration with NFS)

(collaboration with NFS)

• Analysis of walking pattern of 300 men and women: Deduction of Koreans’ walking patterns through the analysis of walking variables to be used for identifying the criminals and suspects by comparing the patterns

3Utilization guide

development and distribution

• Head-face interface of 5 devices (glasses, helmet, goggles, face mask and hat) and human body: Guideline for product design and portfolio segmentation according head size

• Tables and chairs specific for the students in the lower grades in elementary schools: Optimizations guidelines based on body size of lower grade students

• Wheelchair for the disabled: Wheelchair design guideline using the body size data generated by Size Korea

4Development of

3D Body Shape Utilizing Systems

• Upgrade of 3D shape search service: Integrated data and shape search service

• Shape service: Web-based 3D shape viewer and editing

• Upgrade of 3D shape search service: Web-base file transfer and multidimensional history of service to citizens

5 Human Body Size Contest

• Development of artificial respirator using the Korean human body sizes such as facial, hand and finger sizes (Grand Award in Product), etc.

KATS installed the viewer program to view the 3D body shapes in its homepage as the use of 3D data has increased.

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 1918

Leadership of international standards of electric vehicles

The new convergence products will be introduced to the markets faster.

First Electric Vehicle International Standard Forum

Opening of New Convergence Product Suitability Certification Center

The electric vehicle has become the leading future industry with annual growth of more than 30% and expanding markets. The First Electric Vehicle International Standard Forum was held in Jeju on March 22 2016 to share the information on international standardization trend with electric vehicle experts in Korea and other countries and to promote distribution and dispersement of electric vehicles. The Forum was participated by global automobile manufacturers such as Hyundai-KIA and GM to share the standardization issues and international standardization trend for distribution of electric vehicles. The participants discussed the detailed trend and responses on recharging infrastructure, wireless recharging and battery through topic presentation and session presentation in each area. In commemoration of the event, KATS signed the MOU to promote International Standard Based Electric Vehicle Infrastructure Industry with International Electrotechnical Commission and Jeju Special Self-Governing Province. KATS and IEC will provide the standard and certification data related to electric vehicles where as Jeju will cooperate in distribution such as operation of electric vehicle infrastructure operation based on international standard. In addition, KATS announced the ‘Action Plan for Electric Vehicle Standardization’ to strengthen, distribute and disseminate the electric vehicle technical competitiveness and plans to actively support the industries by establishing the national standard for recharging infrastructure needed for dissemination of electric vehicles.

Since the new convergence products are likely to lack or fail to conform to the certification standard and it takes a long time to establish the new certification standard, it has been difficult to introduce them to the markets. There is now a way for such new convergence products to be introduced in the market faster. KATS held the opening ceremony of ‘New Convergence Project Suitabili ty Certification Center’ on March 24 2016. The New Convergence Project Suitability Certification Center is the result of government’s effort to support quick market launch of new convergence products in preparation of the 4th industrial revolution. The suitability certification scheme is the

system to resolve the difficulties of new products for market launch because there is no approval or permit standard or it is not clear which agency is in charge. The qualified products will receive the certification (KC, KS, collective standard, etc.) within 6 months in fast-track. The New Convergence Project Suitability Certification Center will be the window of easy access for the enterprises to receive the comprehensive services on suitability certification system. KATS plans to cont inue i t s e ffor t s to p romote marke t l aunch of new convergence products so that the introduction of new products to the market is delayed because of difficulties of certification.

06

07

Ⅲ. Major Events & Projects

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08

Smart Standards Korea 2020

Establishment of the Fourth Basic Plan for National Standard

The national standard scheme will be overhauled to focus on strengthening competitiveness of enterprises. KATS announced the 4th Basic Plan for National Standard. KATS announced 4 implementation directions and 12 key implementation programs with the goal of “realization of advanced economy with enhancement of national standard system”. The government has been announcing the Basic Plan for national Standard every 5 years according to the national standard basis beginning in 2001. Establishment of foundation for national standard system (1st), Conformation to national standard (2nd), and Leadership in international standardization of Korean technologies (3rd) have been implemented as the key programs. The key to the 4th Basic Plan (2016~2020) is to break away from passive role of standard on improving the people’s living and resolving the difficulties of business and assure that the standard plays the

active role for supporting of business growth, creation of global markets and enriching citizens’ quality of life. To implement the 4th Basic Plan for National Standard, the government will invest total of KRW 1.141 trillion (KRW 228.3 billion in average annually). In particular, it will heavily invest (KRW 752.3 billion or 65.9%) on “expansion of standard foundation to support business growth” to support Korean economy to enter the growth orbit. The government will also invest on “creation of global markets” (KRW 198.0 billion or 17.3%) and “enriching citizens’ quality of life” (KRW 108.4 billion or 9.5%) to timely develop the standard to lead the international standardization. In addition, it will invest on “expansion of standard eco-system” (KRW 82.7 billion or 7.2%) to cultivate the standardization bodies and specialized manpower in the private sector and innovate the communicative and open standard system.

<Figure 2> Governmental Investment Budget

MSIP

7,455

MOTIE

2,551

DAPA

371

ME

304

MOI

179

MOHW

136

MCST

99

MFDS

94

MAFRA

72

MOEL

46

MOLIT

46

KFS

33

MOF

29

10,000

1,000

100

10

1

<Figure 1> Vision and Key Implementation of 4th Basic Plan for National Standard

Building of advanced economy through advancement of national standard system

12 Key Programs

Objective

• Leading of economic growth through creation of global markets

• Strengthening of corporate competitiveness through expansion of standard platform

• Realization of citizens’ happiness through pleasant and safe living

• Establishment of sustainable standard eco-system led by private sector

Direction

Individual technology center standard development

Development of standard for new convergence industries

Passive participation of business in international standardization

activities

Active participation of business in international standardization activities

Standardization focused on industrial sectors

Expansion of standardization to social and service sectors

Realization of private-public cooperative standard administration Building of private sector led standard system

2. Expansion of standard foundation for business growth

① Establishment of business-friendly standard suitability system ② Strengthening of support system for overseas market entry of

enterprises ③ Advancement of measurement standard quality of industry

1. Development of standards for creating global markets

① Expansion of standardization of new smart and convergence industries

② Implementation of standardization of manufacturing-based service industry

③ Strengthening of early leadership in market-driven international standard

3. Standardization to enrich citizens’ quality of life

① Dissemination of standardization for pleasant living② Expansion of standardization for convenient and healthy living③ Strengthening of standardization for safe living

4. Expansion of standard eco-system led by private sector

① Strengthening of voluntary standard activities in the private sector

② Systematic cultivation of manpower specializing on standard ③ Innovation of communicative and open standard system

2020Smart

Standards Korea

(Unit: 100 million won)

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 2322

09

The Korean standards system is transferred to developing countries to support industrial development.

International Standards Infrastructure Cooperation Program (ISCP) with Developing Countries

KATS has been transferring Korean standards and certification infrastructure to emerging countries in SE Asia, Central Asia and Central and Latin America as part of Official Development Assistance (ODA) and International Standards Infrastructure Cooperation Program (ISCP) since 2012. In particular, we developed National Standards Capability Analysis Framework (NSCAF) in 2012 to correctly understand and analyze legislation, system and infrastructure of the standards, conformity assessment, legal metrology in the cooperating countries in order to identify the cooperating projects. In 2016, KATS provided consulting for national standard capability analysis in Myanmar, Bangladesh and Uganda and deduced around 12 cooperating projects in each country as the result of consulting. KATS plans to continue its cooperating projects with Asian region (Myanmar, Bangladesh, Cambodia, etc.), CIS region (Kyrgyzstan, etc.) and South America (Paraguay, etc.) also in 2017.

<Table> ISCP Projects (2012~2016)

Country Cooperation

PeruConsulting for diagnosis of national standard capability, technical support including development of Industrial Safety Act (draft) to introduce the product safety management scheme, and development of master plan for advancement of LEGAL measurement system (Peruvian Ministry of Production)

Vietnam

Consulting for assessment of national standard capability, holding of Korea-Vietnam Standard Cooperation Forum, support for advancement of legal metrology scheme and actual amount labeling certification scheme, and support for enactment of measurement instrument certification criteria (Vietnamese Ministry of Science and Technology)

Mongolia Comparative research of standards in construction in Korea and Mongolia and support of development of Mongolian national standard in construction (10 drafts)

Ecuador Consulting for diagnosis of national standard capability, and development of master plan for legal metrology scheme (Ecuadoran Ministry of Industry and Productivity)

Bolivia Consulting for diagnosis of national standard capability and establishment of measuring test center and specialized manpower training center (Bolivian Ministry of Development Planning)

Cambodia Consulting for diagnosis of national standard capability and support of advancement of national accreditation scheme and legal metrology scheme (Cambodian Ministry of Industry and Handicraft)

Laos Consulting for diagnosis of national standard capability and support of advancement of national accreditation scheme and legal metrology scheme (Laotian Ministry of Science and Technology)

Myanmar

Consulting for diagnosis of national standard capability, groundbreaking for construction of Joint Testing Center for textile product testing and certification between KATRI (Korean) and Ministry of Industry (Myanmar) (November 2016), and support for training of testing manpower (Myanmar Ministry of Inducstry)

Paraguay

Invited training of Paraguayan officials including the director of national technology standard metrology center, establishment of action plan for advancement of product safety test center, establishment of amendment of electrical product safety act and technical standard (draft), and cooperation with KOICA for establishment of metrology and electrical part safety test center (Paraguayan Ministry of Industry and Commerce)

Bangladesh Consulting for diagnosis of national standard capability and support of advancement of electrical product safety and legal metrology scheme (Bangladesh Ministry of Industry)

Kyrgyzstan Consulting for diagnosis of national standard capability and support of advancement of test inspection scheme in textile and metrology (Kyrgyzstan Ministry of Economy)

Brazil Opening of Korea-Brazil Technical Cooperation Center (Brazil INMETRO)

ARSO(African Organization for

Standardization)

Holding of Korea-Africa Standard Cooperation Forum and support of amendment of standard scheme in African region (97 subjects in 3 areas of electric/electronics, mechanical/chemical, and construction/environment)

ISO Holding of ISO-KATS Standard Education Regional Joint Workshop (participated by 177 people from SE Asia, Latin and South America, Africa and CIS in four meetings)

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 2524

10KATS invites citizens to participate in standardization of living proposed by citizens.

Development and Dissemination of Standardization for Citizens’ Happiness

The recent standardization policy is changing from industry centered to citizen centered to create “the society for citizens’ happiness” in which the members of community can manage the happy and comfortable living. Since 2013, KATS has been implementing ‘the Citizens Happiness Standardization Project’ by proposing standardization of products and services that can cause inconvenience in citizens’ living with the objective of ‘creating the comfortable society, sharing society and enriched society’ and developing and distributing the standards through cooperation with NGOs, social welfare organizations, consumer organization, and relevant organizations and departments. The citizens can propose the standardization programs through the citizen happiness standard homepage (www.lifestandard.or.kr) and Facebook, and the received proposals are reviewed by the experts, Citizen Happiness Standard Development Committee, and Citizen Happiness Standard Council. The final candidate programs are deduced after checking the technical feasibility, redundancy

with other standards and technical criteria, and standardization suitability. The standards of selected candidate programs are developed in the following year. For 2016, KATS cooperated with relevant bodies to develop the standards to strengthen citizen happiness standardization activities in household products, goods for the elderly and the disabled, and the social welfare services and continued PR to the citizens. KATS plans to analyze the outcomes such s convenience to citizens, economic benefits and social ripple effects of the citizen happiness standard development programs in order to realize substantial growth beyond quantitative growth.

<Figure> Procedure of Developing Citizen Happiness Standardization

KATS

KSA

• Business PR and discovery channel operation

• Standard Development Committee operation

• Citizen Happiness Standard Council meeting

Citizen Happiness Standard Council

Around 20 representatives from KATS, consumer

organizations and NGOs

KATS

Implementation and review of opinions

Standard Development Committee

Around 15 standard experts from industry, academy and

research institutes

Citizen Proposal Channel

Other Standard Enactment Agency

Relevant bodies and collective standard bodies

Standard Development Support Agency

COSD and collective standard bodies

KSA

NGOs for the disabled

Consumer Protection Agency

Other relevant bodies

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 2726

11 12One test accepted by other countries all over the world and expansion of recognition scope in medical testing

The accreditation is the support tool for public policies.

APLAC Peer Evaluation Ceremony for 2016 World Accreditation Day

The APLAC-MRA Peer Evaluation was conducted between May 30 and June 3 2016 to maintain the Mutual Recognition Arrangement (MRA) status of KOLAS testing and calibration report. KATS’ KOLAS is evaluated by the Asia-Pacific Laboratory Accreditation Cooperation (APLAC) of ILAC for mutual accreditation every 4 years. The Peer Evaluation in 2016 included updating of exiting testing and calibration and extension of accreditation to medical test area. The evaluation group organized of 5 international assessors including Himori Murata in Japan evaluated the operation and performance of quality system of KOLAS in accordance with ISO/IEC 17011 and ILAC/APLAC regulatory document. Moreover, the group conducted the evaluation of renewal of Conformity assessment bodies of KOLAS (testing, calibration and medical) and follow-up management process. The examination result of Peer Evaluation was submitted as the agenda for the 38th APLAC MRA Board Meeting held in November 2016, and the renewal of existing testing and calibration and expansion of accreditation scope of medical testing were finally approved.

ILAC/IAF designated ‘Accreditation, Support Tool for Public Policies’ as the theme for the World Accreditation Day, and KATS held the ceremony. At the m e e t i n g , t h e i n d i v i d u a l s a n d organizations were recognized and awarded for their contribution to KOLAS (testing, inspection and calibration), KAS (product certification), and KAB (ISO management system certification). Moreover, the seminar to review the meaning of them of the World Accreditation Day, to inform the importance of accreditation programs, and to disseminate the international trend was held at the same time as the event. Three accreditation bodies (KOLAS, KAS, and KAB) operating in Korea have signed the multilateral ILAC-MRA and IAF-MLA of ILAC-

IAF. The fact that the test report issued by tthe conformity assessment body accredited by KOLAS (or Korea's accreditation body) is accepted as the same one issued by another country for an international trade has greatly contributed to overcoming the technical barrier to trade (TBT). Since the world markets have been unified following the establishment of WTO, the international accreditation system has become more important. Meanwhile, KATS began i t s work on mutual recogni t ion arrangements (MRA) of medical test to support globalization of domestic medical industry and established the foundation for the medical test report issued by the conformity assessment body of KOLAS to be accepted internationally beginning in 2017.

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 2928

13The impact of the technical regulation is assessed to reduce the burden of technical regulation on business.

Building of Technical Regulation Reformation and Advancement System

KATS assesses the impact of technical regulation when laws related to technical regulation are enacted or amended in order to assure that the businesses are not negatively affected unnecessarily. For rational impact assessment of technical regulation in particular, KATS is operating the ‘Technical Regulation Relevancy Review’ procedure to review whether the technical regulation is included in a law that is enacted or amended. The procedure facilitates rational operation of the technical regulation impact assessment scheme by inducing an enacted or amended law that include the technical regulation to be assessed of impact and a law not including the technical regulation to be excluded in advance to reduce the burden on the department in charge. In 2015, the rate of opinions raised through the impact assessment increased by 6.5%p to 23.4% while the rate of opinions reflected increased by 6.0%p to 58%. Moreover, the review opinions such as similarity, overlapping and efficacy in relation to existing certifications are presented for the certification schemes that are enacted with legislation by Assembly members. In 2016, 4,135 cases of legislation by Assembly members were reviewed, and the opinions were presented on 25 cases. KATS is continuously seeking the measures to resolve the difficulties the business sectors face by new technical regulations and plans to contribute to establishing the technical regulation adequate for Korea and other countries through these activities.

<Figure> Impact Assessment of Technical Regulation Scheme

Notification New Bill by LeadAgency

PreliminaryAdministration(Deliberations with

Related Offices)

RegulatoryReview by Officefor Government

Coordination

Notification/Enforcement by

Lead Agency

Technical Regulatory Coordination Division Review of Conformity with Global Standards & Duplication

Review of Relevancy to Technical Regulation Advance Review of Inclusion of Technical Regulation

Request Reply

Request Notify

Request Reply

Request Notify

Regulatory Impact Assessment of TechnicalStandards & Related Legislation

Regulatory Impact Assessment of TechnicalStandards & Related Legislation

Decree New Bill by LeadAgency

Deliberations withRelated Offices& Preliminary

Legislation

RegulatoryReview by Officefor Government

Coordination

Legislation Reviewby Government

Legislation Agency

Bill underConsideration at

National Assembly

KATS assesses the impact of technical regulation when

laws related to technical regulation are enacted or

amended in order to assure that the businesses are not

negatively affected unnecessarily.

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 3130

14

‘1381 Call Center’ provides the joy of getting answer to question on certification standard.

Counseling by 1381 Certification and Standard Call Center Surpassing 100,000 Cases

KATS has operated the 1381 Certification and Standard Call Center since 2014 to provide the counseling service on certification and standard in Korea and other countries for small and medium enterprises. The counseling cases of the call center have been steadily increasing since it was opened, and the accumulated number of counseling cases surpassed 100,000 in 28 months. The average daily counseling cases (230 in average) are 2.2 times the first year. For counseling, 55% were related to domestic certification, 15% were related to certification, 12% were related to overseas

certification, and 18% were related to other subjects. The electrical/electronics industry took the highest rate at 40%.The 1381 Certification and Standard Call Center has played the role of reliable guide to solve the difficulties the business faces in relation to certification and standard in Korea and other countries that are regarded as the complex and difficult areas. By providing the information such as the type, procedure and method of mandatory certification required in a foreign country in particular, it is providing the practical

assistance for the technology development and marketing activities of small companies leading to actual exports. Since the certification and standard scheme are becoming more diverse in many countries in the world, it is important for small and medium enterprises to actively utilize the Call Center from the initial step of negotiation for export with overseas buyers. With the counseling cases exceeding 100,000 cases, KATS plans to actively upgrade its services to the small companies in need for the counseling.

<Table> Year-by-Year Counseling by 1381 Certification and Standard Call Center

Type 2014(191 days)

2015 2016(253 days) Annual Increase

Rate(247 days) Annual Increase

Rate

CounselingCases

Total 19,752 48,45184%

54,45515%

Daily Average 104 192 220

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 3332

15

The youths are cultivated to become leaders in the global stage.

11th International Standards Olympiad

The International Standards Olympiad that provides the opportunity for the youths to establish the concept of s tandard and exper ience the importance of standard while solving the task on standard with other youths from the world was held on August 4 2016. This was the 11th year of the Standards Olympiad since it was first held as a competitive exhibition of middle school and h igh school students in 2006. It was expanded to become an international competition t h r o u g h t h e c o o p e r a t i o n w i t h i n t e r n a t i o n a l s t a n d a r d i z a t i o n organizations by adding the IEC Secretary General Award in 2015. In 2016, the experts from IEC and US NIST participated for development of t a s k s a n d j u d g i n g f o r m a i n competition in order to develop the tasks related to the world standard

technology issues. The task for preliminary in this contest was the s tandardiza t ion idea to pursui t convenient living and eliminate social waste factors to encourage the youths to think about the impact of standard on the nat ion and in ternat ional societies. “We received many ideas that were creative and practical at the same t ime. I t was a meaningful competition that presented wide ranging ideas that were good and easy to implement,” Prof. Kwon Yeong-bin of Chung-Ang University who chaired the judging committee said. KATS is t ry ing to improve the s ta tus of Standards Olympiad by cooperating with foreign organizations to expand part icipat ion of youths in other countries and expects the international contest in 2017 will be participated by youths from 9 countries.

KATS is trying to improve the status of Standards Olympiad by cooperating with foreign organizations to expand participation of youths in other countries.

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 3534

16

Standards in the lives of children and adults

Expansion of Education and Implementation of Standard

In 2016, KATS launched ‘visiting education on standard’ and designated ‘research school’ to increase awareness of standard and carried out programs to train teachers for establishing the internal eco-system of education on standard. The

‘visiting education on standard’ is the program in which an expert on standard visits an elementary school for one day to provide guidance on standard and safety in daily living in the form of extracurricular activity. In 2016, the program carried out the education on standard and safety to more than 5,000 students in 60 schools. The education programs included wide range of activities such as viewing of animation, experiential activities, and quiz specifically designed for children so that they can naturally understand standards. The students became more aware of

‘elevator safety standard’, ‘protective gear standard’, and ‘toy standard’.The ‘research school’ is jointly designed with the Ministry of Education to

be operated as a mid- to long-term education program to raise the knowledge and awareness of standard by a level through correct recognition, experience and practice. The program was attemded by more than 2,700 students from 4 schools including Euiryeong Elementary School in Gyeongnam and Gwanmun Elementary School in Daegu. The ‘training of teachers’ program targeted to teachers at elementary schools, middle schools and high schools nationwide consisted of lecture, exercise and field trip

related to standard. The program trained the principals and vice-principals, who were the managers, once and the teachers three times. As the result of the programs to increase awareness of standard in daily living, the survey of teachers and students on ‘understanding of standard’ indicated twice higher understanding. KATS plans to expand its programs of educating various groups on standard which is the most fundamental social pledge not only to make living more convenient but also to ensure safety.

5minutes 5minutes 20minutes 20minutes

Explanation of standards concepts

Easy explanation on concepts of standards

Video viewing

Stimulating students’ interest in standards by watching ‘Standards Warrior’

Lecture and hands-on activities

Increasing understanding by using presentation and teaching materials

Challenge, Standards Golden Bell

Selection of ‘Dr. Standards’through quiz show on standardization

● Standards Education in Elementary School

The ‘visiting education on standard’ is the program in which an expert on standard visits an elementary school for one day to provide guidance on standard and safety in daily living in the form of extracurricular activity.

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 3736

1718NET’s go for

the future with new technologies!

The standard and testing industries represent the new growth.

NET Certificates Surpassing

1,000

The day of metrology and measurement

The accumulated number of NET (New Excellent Technology) certificates surpassed 1,000 after 10 years since it was introduced. KATS held the ceremony to commemorate it and to issue the certificate in attendance of the certified company and evaluation committee members on September 7. The NET certification is the scheme of discovering the unique technology or the technology that can improve domestic competitiveness and recognizing outstanding nature of the developed technology. Its purpose is to improve the product reliability using new technologies that have high ripple effect technically and economically and establish the market base through creation of purchasing power. It was launched in 2006 to promote development and commercialization of cutting-edge technologies, and eight departments are currently issuing the certification in 9 areas. With 20 new certificates issued by KATS on the day, the accumulated number of NET certificates issued surpassed 1,000. Of 3,864 applications for NET certification in the past 10 years, 1,017 cases received the certificate. The average certification rate was 26.3%, and an average of 93 cases received the certification each year. In terms of enterprise size, 73.7% of total applications were submitted by the small and medium enterprises (2,848 applications by SME out of 3,864 total applications), and 57.7% (587 cases) of total NET certifications were received by SMEs. The large enterprises took up 13.7% all applications for certification and 23.5% of NET certificates issued.

The ceremony for 2016 Standard and Testing Day was held at KATS on October 26 to ruminate the importance of standard and testing that are closely intertwined with citizens’ daily living and to pledge the new leap forward of standard and testing industry. The Standard and Testing Day has been held since 1970 in commemoration of the day Sejong the Great established the measurement system, and this is the 46th year. The event was attended by more than 300 dignitaries and officials to congratulate 58 people receiving awards. The event also included awarding of the winners of contest for children’s posters and videos to

encourage use of correct unit such as ‘㎡’ instead of ‘pyeong’ and the outstanding cases that proves the importance of standard and testing in industrial sites and daily living. Jeh Dae-shik, the former Director of KATS, praised the employees in the standard and testing sectors and encourage them to “help Korea’s standard and testing technology to advance to the world’s best level” and emphasized the need for “the government, businesses and consumers to follow the inspiration of Sejong the Great for measurement system and establish the proper standard for Korea.”

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 3938

19Establishment of fair trade order protects citizens’ living.

Building of Foundation for Advancement of Legal metrology

KATS is committed to establishment of fair trade order and p ro t ec t ion o f c i t i zens ’ l i v ing . The LEGAL measurement units, instruments and prepackaged products (27 types including sanitary products and household products) are strictly managed under the provisions of the Measures Act. It has continuously carried out PR, guidance and administrative control to use the correct unit such as ‘㎡’ instead of ‘pyeong’ in the press and real estate transaction. As the result, the legal unit usage rate has greatly increased (69.0% in 2009 → 83.6% in 2016). Moreover, it has strengthened the pre-shipment inspection

and post-shipment management of 12 types of legal measuring instrument to assure reliability. It also carried out 9 technology development programs including

‘development of secure hook-on type power saving electricity meter’ to support advancement of instrument measurement technology and industry development. KATS plans to build the legislative scheme for voluntary management o f ins t ruments and s t r eng then the adminis t ra t ive control to s top use of i l legal and unauthorized instruments to lay the foundation for measurement administration trusted by the citizens.

<Table> Establishing of Legal Unit (㎡) (Unit : %)

Year TVBroadcasting

Newspaper (Article)NewspaperAdvertising Average

Daily Newspaper Business Newspaper

2016 83.2 76.7 87.9 84.0 83.6

2015 93.6 78.4 88.2 84.8 85.7

2014 91.4 71.2 87.0 87.9 85.0

2013 92.9 69.9 85.7 82.4 82.9

2012 92.1 69.4 84.4 82.9 80.9

After market entryBefore market entry

Designated testing laboratory

Type-approval body

• Design assessment• Environmental test• Performance test• Electronic device

test

(Initial) Verification

• Error examination• Structure inspection

Verification body/self-verification

manufacturer

Re-verification

Verification body

• Error examination• Structure inspection

Calibration

Private calibration agency

• Calibration of measuring instruments for commercial transactions and certification

Inspection

Mayor, provincial/Regular self-inspection

agency

• Regular inspection (every 2 years)

• Irregular inspection

Survey on products

(measuring instruments and prepackaged

products)

Recall of bad measuring

instruments

Operating a consumer monitoring system

Newly establishing penalty surcharges/

Toughening up penalties

Rewards for report of bad measuring instruments/

Announcement of violation

Supplementing the existing laws and expanding private voluntary management

Reinforcement of follow-up management

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 4140

20

The value of ‘standard’ that bonds the world with reliability is shared.

Ceremony for 2016 World Standards Day

The standard is a cooperative system that interconnects people with reliable communication means for mutual benefit. The standard is the reference and the pledge to move the world and systematizes the conduct to assure the quality, safety and compatibility. The message for World Standards Day by the world’s three international standardization organizations (ISO, IEC, and ITU) is

‘standards build trust’. It emphasizes that the trust of global trade markets interconnected like a spider web is originated from the international standard that guarantees the product quality and safety. KATS, which represents Korea in the international standardization organizations, held the ceremony for 2016 World Standards Day to share

the value of standard. Attended by 300 or so officials, the event also praised the individuals and organizations that led the standardization activities. The government award was given to 48 individuals and organizations that greatly contributed to strengthening of national standard competitiveness and the ‘IEC 1906 Award’ was also given. The event also included the presentation of outstanding standardization cases, viewing of PR video and a themed performance. Korea is the world’s sixth large exporting country, and its remarkable growth is in line with the history of standard. KATS plans to provide full support for the experts to participate in international standardizations activities.

KATS, which represents Korea in the international

standardization organizations, held the

ceremony for 2016 World Standards Day to share the

value of standard.

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 4342

21Product safety is for everyone in Korea.

The private-public joint forum to identify and resolve the technical difficulties was held.

Ceremony for 9th Product Safety Day 3rd Technical Regulation Policy Forum

KATS held the ‘2016 Product Safety Day’ to prevent product safety accident and disseminate the culture of product safety. Held at KOEX in Seoul on November 3 2016, the event was held to recognize and praise the individuals and organizations that contributed to safety of products that are used in daily living. KATS awarded 46 individuals and organizations that contributed to product safety. The s ide events included a sand art performance with the theme of product safety and the

‘electric mattress donation with care’

for the socially neglected such as the disabled to protect the vulnerable groups and disseminate the culture of product safety. “Producing and using safe products provide the opportunity to secure consumer safety and improve the competitiveness of business and thus are very important. The business, gove rnmen t and c i t i z ens mus t cooperate to create the environment in which the consumers can use the product with peace of mind,” Jeh Dae-shik, the former Director of KATS, emphasized.

The technical regulation imposes the requirement to characteristics and manufacturing method of products and services and includes the standard, technology standard, and testing and certification. The technical regulations that are rapidly increasing as the result of convergence of industries can sometimes be the burden on business. KATS held the 3rd Technology Regulatory Policy Forum in Seoul on November 16 2016 to discuss in depth the measures to resolve the difficulties the business face due to the technical regulation. Participated by more than 100 people including the Director of KATS, regulatory coordination director, and representatives from the research institutes in economy, industry and science/technology, enterprises and organization, the event shared the outstanding cases of improvement of technical regulation in 2016 and measures to rationalize the technical regulation following the dissemination of smart manufacturing environment. Moreover, there were the active discussions of the direction for technology regulatory policy in the era of industrial convergence and the measures for rationalization of technical regulation with consideration to user safety. Jeh Dae-shik, the former Director of KATS, emphasized the need for the public institutes to focus their competency on regulatory reform toward cost saving and efficiency increase and encouraged the active opinions on regulatory improvement and proposal for policies. KATS plans to continue its effort of identifying the difficulties through the Technology Regulatory Policy Forum and cooperate with authorities to improve the regulations.

22

KATS plans to continue its effort of identifying the difficulties through the Technology Regulatory Policy Forum and cooperate with authorities to improve the regulations.

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 4544

23

Resolving the technical barrier to trade (TBT) increases the competitiveness of exporting enterprises.

Measures to Cope with TBT

The countries all over the world are actively using the non-tariff barriers such as TBT as the way to protect and cultivate the domestic companies. Where as the notifications to WTO TBT are continuously increase, the specific trade concerns (STC) to discuss the specific cases raised by the member countries to the WTO TBT Committee are also increasing each year. Such trend is particularly notable in Asia, Latin and South America, Africa and the Middle East which are the emerging export markets. KATS has established the ‘TBT Central Secretariat’ to mitigate the difficulties of Korean exporters due to technical regulations in foreign countries and is conducting the ‘TBT response support project’ to investigate and analyze the technical regulations in other countries and report it to domestic companies. Beginning in 2015, it formed the ‘TBT response consortium’ to effectively cope with TBT. The cooperative system of private sector and public sector has been strengthening the support system for exporting companies.

In 2016, 2,601 cases of WTO TBT notified and not notified technical regulations were collected and reviewed, and the information was provided to the businesses. It also analyzed in depth 635 cases that greatly affect export or applied to the items manufactured by small companies to identify the difficulties. Moreover, KATS attended the WTO TBT general meeting to officially raise objections of technical regulations that led to difficulties of businesses. It raised 81 TBT issues through the bilateral discussions and removed 42 cases that

caused the burden from technical regulation. Moreover, it also tries the local response through the interview with the regulators attended by the local unit of exporter, diplomatic office and KOTRA to resolve the difficulties. KATS plans to build the customized support system with consideration to the competency of SMEs and s t rengthen the expor t competitiveness of Korean companies by better responding to foreign technical regulations.

<Figure> Procedure of Response to Technical Regulation in Other Countries

Investigation and AnalysisStep 2

General Analysis

• Translation of Notification by WTO TBT

• Overview of Regulatory Subject

• Industrial categorization➡ Opening of TBT Portal

and Information to Business

In-depth Analysis

• Comparison of Regulations in Korea and Other Countries

• Survey of Companies to Be Affected

• Economic Benefit of Overcoming the Regulation

• Analysis of Possibility of Utilizing the Regulation➡ Response Strategy

after Selecting Main Regulations

ResponseStep 4

Diplomatic Response

• WTO TBT Committee Activities

• FTA TBT Committee and Bilateral

• Multilateral Negotiations

Building of Mutual Cooperative System

• MRA, MOU, etc. Technology and System Transfer to Developing Countries

Consulting, Forum and PR

• Customized Consulting for Each Industry

• TBT Forum and Workshop

Feedback

Step 3

Establishment of Strategy

• Response Strategy for Each Regulating Country

• Response Strategy for Each Industry

• Response Strategy for Each Regulatory Type

Collection of Industry Opinions

• Size of Damage from Regulation

• Industry Request for Response

It also tries the local response through the interview with the regulators attended by the local unit of exporter, diplomatic office and KOTRA to resolve the difficulties.

Information CollectionStep 1

Notification to WTO TBT

Notification to FTA TBT

Overseas Diplomatic Offices and Associations

Enterprise (Overseas Units)

Establishment of Strategy

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 4746

24

Stage for building the industry-academy-research network of cooperation on standard and sharing of information

1st Standard Leadership Conference

The stage to share the importance of strategic management of standard, expand the participation of Korean companies in national and international standardization, and build the cooperative network for development of standard in Korea was established. KATS held the 1st Standard Leadership Conference participated by more than 200 people from KS certifying companies and experts from industry, academy and research in Jeju from November 17 to 19. The purpose of the Conference was to share the information on policies on standard, technology trend and international standardization activities in Korea and other countries and to discuss the advancement of standard eco-system in Korea. The program organized of special lectures, academic sessions and field trips was the stage for the conference participants to network and interchange opinions and share the standardization cases among businesses. In the special lectures, SK Telecom presented the strategy for international standard development while Jeju Special

Self-Governing Province presented the strategy to utilize standards for success of electric vehicle programs. The international standard participatory cases by business and utilization of standard for business management were presented in academic sessions and panel discussions. Encouraged by the success of the first Conference, KATS plans to regularly hold the conference to establish the channel for interchange and cooperation among the industry, academy and research and improve the awareness on national standard.

Encouraged by the success of the first Conference, KATS plans to regularly hold the conference to establish the channel for interchange and cooperation among the industry, academy and research and improve the awareness on national standard.

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 4948

125The quality is the driving force for great Korean economic leap forward.

42nd National

Quality Management

Convention

The quality is the basis the benefit the companies and customers and thus the key and life of product. The companies can expect the sustainable future only when they can guarantee the quality. KATS held the National Quality Management Convention at KOEX in Seoul on November 23 2016 to share the value of ‘quality’ which increases the competitiveness of Korean products and drives exports. The purpose of the festival of quality professionals was to identify and award the companies, businessmen and employees who have shown outstanding outcome through the quality management innovative activities in manufacturing and service industries.

Total of 437 awards were given to individuals and organizations that have regarded quality improvement as the utmost value and practiced it over the years. The awards recognized the dedication of SMEs in quality innovation in particular as almost half of awards were given to the employees of SMEs.

“We must stick to the fundamental that is quality competitiveness particularly during the uncertain time. Government is committed to achieving its goal of 10,000 smart factories by 2020 to leap forward the quality power house in the era of 4th industrial revolution,” Jung Man-gi, the Vice-Minister of Industry, Trade and Energy said.

*Quality Control Circle (QCC): A small group leading quality improvement activities for solutions to problems, formed by voluntary participation of workers at industrial sites. Currently 560,000 people in 50,000 teams around the country are participating in QCCs.

*National Quality Master: Exemplary workers who have devoted themselves to product management activities with craftsmanship by performing the role of a leader in product innovation activities and creating a sound working environment

The quality is the basis the benefit the companies and customers and thus the key and life of product.

Ⅲ. Major Events & Projects

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 5150

26The innovative product safety policies were discussed to cope with the era of technology advancement.

2016 Product Safety Innovation Forum

The product safety policy according to technology and environment changes is the foundation to build the sound product safety eco-system. KATS held the “Product Safety Innovation Forum’ as the stage for citizen participation and discussion to develop the product safety policy in Seoul on December 16 2016. Participated by 150 product safety professionals, the event focused on discussion of improving the product safety scheme and standard to reflect the social interest on product safety. The Forum was organized in two sessions of ‘Scheme’ and ‘Technology’ as the seminar on product safety. The Scheme session covered the product safety collaboration system and improvement of safety management scheme where as the Technology session covered the strategy of establishing the criteria for safety management of new products through theme presentations and panel discussions. The Operating Committee discussed the future forum operation and improvement based on main outcome and problems of product safety management in 2016. “I hope more professionals and consumers actively participate in the Product Safety Innovation Forum, and KATS plans to utilize the Forum as the center point for product policy development and safety scheme improvement,” the Director of KATS Jung Dong-hee said. The Product Safety Innovation Forum is expected to be the foundation for creating the community safe from products through the ideas presented in the Forum.

Participated by 150 product safety professionals, the event focused on discussion of improving the product safety scheme and standard to reflect the social interest on product safety.

Ⅳ. Statistics & Performance

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 5352

2) Harmonization with International Standards

3) Number of KS per Year

1. KS Standardization Program

1) Number of KS by Sector

17.3%

(3,492)

15.6% (3,152)

15.5% (3,111)8.2% (1,662)

6.0% (1,200)

4.4% (884)

4.0% (808)

3.8% (770)

3.6% (735)

3.4% (689)

18.2% (3,646)

TOTAL

20,1492016

Electrical & electronic engineering

Chemistry

Mechanical engineering

Information

Metals

Textile

Medical

Construction

Transporting machine

Environment

Others

TOTAL

20,3922015

16.8% (3,433)

15.3% (3,127)

15.4% (3,132)

7.8% (1,581)

6.0% (1,216)

4.4%(863)

4.6% (944)

29.9%(6,096)

16.8%

(3,433)

15.5% (3,171)

15.4% (3,154)

7.8% (1,609)

6.1% (1,243)

4.3%(876)

4.5% (925)

29.7%(6,099)

TOTAL

20,5202014

Int’l Standards Subject to Conformity

Modified (MOD)

Identical (IDT)

Not Equivalent (NEQ)

14,476

12,8251,219

4322016

Harmonization Rate97%

12,303

13,847

12,2661,168

4132015

Harmonization Rate97%

▶ Number of Retained Standards

170

311

1,510

1,689

1,482

1,964

298

554

Enacted Revised Confirmed Abolished

2015

2016

2015

20,392 2016

20,149

Ⅳ. Statistics & Performance

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 5554

4347

3912

4033

4419

5224

508389

563413

615457

680485

750515

1511

1612

1211

219

186

2. Conformation to International Standards

1) Ratio of affiliation with ISO/IEC JTC 1

3) South Korea’s newly proposed international standards (including revised new proposals for ISO/IEC)

▶ Proposal

▶ Publication

2) Current chairperson, secretary, and convener of ISO/IEC technical committee

Chairperson Secretary

Convener TotalTotal

ISO IEC Total

ISO IEC Total

15

22

24 24 24

27

89

126

16 16

17

18

103

143

128

168

131

172

138

183

2012

2012

20122013

2013

20132014

2014

20142015

2015

20152016

2016

2016

ISO IECTotal rate of

affiliation

616 143 17674882.4% 81.3%

619 143 17874383.3% 82.3%

549 132 18772476.5% 70.6%

55475973.0% 131 190 68.9%

55175572.9% 135 203 66.5%

2012

82.1%2013

82.7%2014

74.6%2015

72.2%2016

71.6%

No. of ISO members No. of P-member affiliation

Ⅳ. Statistics & Performance

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 5756

5) Participation in International Conference on Standardization and Innovation4) International Conference on Standardization and Innovation held in South Korea

- KATS budget covers TC/SC general assemblies only

-TC/SC/WG included for South Korea’s participation-

▶ No. of conferences held

World W

ide Web conference

ISO general assembly

▶ Budget

▶ No. of participants ▶ No. of conferences

▶ No. of participants

2012 20122013 20132014 20142015 20152016 2016

33

1,797

3,122

2,817

1,703 1,545

34

27 26 23

2012

2012

2012

3.41

2013

2013

2013

3.87

2014

2014

2014

6.48

2016

2016

2016

8.36

2015

2015

2015

5.81

231 196 197225 200

1,328 1,382 1,3871,153 1,199

(Unit: Number) (Unit: Number)

(Unit: 100 million won)

(Unit: Number)

(Unit: Number)

Ⅳ. Statistics & Performance

STANDARDS BUILD TRUST KATS ANNUAL REPORT 2016 5958

② Items subject to safety management (Unit: Cases)

Safety Certification Voluntary Safety Confirmation

Supplier's Confirmation of Conformity Total

Industrial Products 11 33 43 87

Electrical Appliances 39 63 71 173

Children’s Products 4 17 15 36

* As of December 31 2016

2) Product safety inspection and Recall Status

① Product Safety Survey (Unit: Cases)

2012 2013 2014 2015 2016

IndustrialProducts

ElectricProducts Total Industrial

ProductsElectric

Products Total IndustrialProducts

ElectricProducts Total Industrial

ProductsElectric

ProductsChildren’sProducts Total Industrial

ProductsElectric

ProductsChildren’sProducts Total

SurveyedProducts 2,086 1,160 3,246 3,270 1,272 4,542 3,099 1,434 4,533 1,827 1,560 1,477 4,864 1,214 1640 2,061 4,915

② Recall (Unit: Cases)

2012 2013 2014 2015 2016

IndustrialProducts

ElectricProducts Total Industrial

ProductsElectric

Products Total IndustrialProducts

ElectricProducts Total Industrial

ProductsElectric

ProductsChildren’sProducts Total Industrial

ProductsElectric

ProductsChildren’sProducts Total

Recall orders 19 16 35 87 40 127 94 137 231 116 219 61 396 52 140 136 328

Recall Recommended 79 43 122 68 13 81 179 53 232 18 5 1 24 27 0 0 27

Voluntary Recall 20 5 25 5 3 8 35 17 52 13 27 9 49 22 57 11 90

Total 118 64 182 160 56 216 308 207 515 147 251 71 469 101 196 145 445

* 2015.6.4 The number of product recalls for children 13 years old or younger after the enactment of the Special Act on Safety of Children's product

③ Crackdown of illegal and defect products (Unit: Cases, %)

구 분2012 2013 2014 2015 2016

IndustrialProducts

ElectricProducts Total Industrial

ProductsElectric

Products Total IndustrialProducts

ElectricProducts Total Industrial

ProductsElectric

ProductsChildren’sProducts Total Industrial

ProductsElectric

ProductsChildren’sProducts Total

Investigated Enterprises 2,125 2,631 4,756 1,812 2,802 4,614 1,880 2,632 4,512 1,129 2,668 511 4,308 772 2,288 1,152 4,212

Violating Enterprises 237 380 617 226 469 695 404 581 985 309 788 43 1,140 199 769 318 1,286

Rate of Violating Cases to

Investigated Cases

13.0% 15.1% 21.8% 26.5% 30.5%

3. 2016 Product Safety Management

1) Product Safety Certification

① New registration in each year (Unit: Cases)

2012 2013 2014 2015 2016

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

IndustrialProducts 3,633 11,465 15,098 4,005 9,688 13,693 5453 11,138 16,591 2,834 5,915 8,749 229 1,773 2,002

Electricproducts 4,835 4,785 9,620 4,904 7,108 12,012 5598 7,173 12,771 5,889 7,828 13,717 5,447 8,855 14,302

Children’sProducts 2,510 5,390 7,900 4,364 9,931 14,295

Total 8,468 16,250 24,718 8,909 16,796 25,705 11051 18,311 29,362 11,233 19,131 30,366 10,040 20,559 30,599

* December 31, 2016

- New Registrations of Industrial Products (Unit: Cases)

2012 2013 2014 2015 2016

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

SafetyCertification 877 482 1,359 1,176 349 1,525 1,285 689 1,974 626 535 1,161 32 513 545

SafetyConfirmation 2,756 10,983 13,739 2,829 9,339 12,168 4,168 10,449 14,617 2,208 5,380 7,588 197 1,260 1,457

Total 3,633 11,465 15,098 4,005 9,688 13,693 5,453 11,138 16,591 2,834 5,915 8,749 229 1,773 2,002

- New Registrations of Electric Products (Unit: Cases)

2012 2013 2014 2015 2016

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

SafetyCertification 4,002 2,960 6,962 3,732 3,197 6,929 4,120 3,401 7,521 4,534 3,912 8,446 4,227 4,653 8,880

SafetyConfirmation 833 1,825 2,658 1,172 3,911 5,083 1,478 3,772 5,250 1,355 3,916 5,271 1,220 4,202 5,422

Total 4,835 4,785 9,620 4,904 7,108 12,012 5,598 7,173 12,771 5,889 7,828 13,717 5,447 8,855 14,302

- New Registrations of Children’s Products (Unit: Cases)

2012 2013 2014 2015 2016

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

Domesticmanufac-

turingImport Total

SafetyCertification 696 110 806 1,161 272 1,433

SafetyConfirmation 1,814 5,280 7,094 3,203 9,659 12,862

Total 2,510 5,390 7,900 4,364 9,931 14,295

Ⅳ. Statistics & Performance

STANDARDS BUILD TRUST 60

4. Status of KOLAS/KAS/KAB Surveys

Calibrationbodies

Testingbodies

Inspectionbodies

Medical testlabatories

Proficiencytest

laboratories

Standardreferencematerialbodies

Total

KOLAS 212 496 58 6 9 12 793

KAS-certified organizations : 20 organizations

KAB-certified organizations : 51 organizations

※If you have any questions, please contact KATS’s International Standards Department. Tel : +82-43-870-5353 e-Mail : [email protected]