2. CONTENTS

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

4. Improved Customer Service Innovated Manufacturing Technology Reliable Trade between Customers and Manufacturers Upgraded Product Quality Increased Productive Efficiency Boosted Reasonable Consumption Enhanced Industrial Competitiveness

5. 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) 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. Producer Consumer Enhanced work efficiency due to easier mechanization of the product Lower price, increased sales and enhanced quality due to the manufacturing cost reduction Purchase quality products at a reasonable price Safe purchase of quality products

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

8. The manufacturer who wishes to obtain KS Certification shall submit an application INITIATIVE CERTIFICATION AUDIT Type of Certification Audit : Initiative audit, Item-added audit, Class-added audit Audit Fees 2 days for an item 3 days for more than 2 items (~4 items) 4 days for more than 5 items Audit Days Application Fee : 0.5 million KRW (Basic fee) 0.25 million KRW added when an item is added 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 Audit Fees

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

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

11. 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 LARGE CLASSIFICATION Food Products H Household Goods G Civil Engineering F Mining E Metals D Electrical & Electronic Engineering C Mechanical Engineering B Basic Standard A Information Industry X Aircraft & Aviation W Shipbuilding V Transportation Machinery R Medical Equipment P Chemical Engineering M Ceramics L AREALARGE CLASSIFICATION AREA Textiles K Service S Quality Management Q