Contents

I. Introduction 1

II. Korean Industrial Environmental Laws and Regulations 4
1. Industrial Environmental Protection Policies 4
1.1 Command and Control 4
1.2 Economic Incentives 8
1.3 Commentary 13
2. Industrial Environment Management Incentives 14
2.1 Incentives Given for Investing in Environment Facilities 14
2.2 Environmental Technology Support 16
2.3 Limitations 18

III. Environmental Management Precedents in Korea 19
1. Voluntary Environmental Management 19
1.1 Government Driven Environmental Programs 19
1.2 Regional Government Driven Environmental Programs 24
1.3 Regional Environmental Agreement 24
1.4 Industry Lead Private Sector Initiatives 25
1.5 Regional Private Sector Initiatives 28
1.6 Supply Chain Environmental Management 28
1.7 Voluntary Environmental Management Related to Energy 29
2. The Limitations of Voluntary Environmental Management Systems 31
Supply Chain Management of Large Firms 32

IV. SMEs in Korea and Environmental Management 35
1. Definition and Status of the SMEs 35
1.1 Definition 35
1.2 Importance of SMEs 36
1.3 Status Change of SMEs 37
2. Environmental Management and SMEs 41
2.1 Changes in the International Setting 41
2.2 Domestic Situations and SME Capacity 41
2.3 SMEs’ Environmental Management Status 46
Structure of Laws Relevant to SMEs 49
Major Supporting System for SMEs 50

V. International Environmental Management Precedents 54
1. Government Programs 56
1.1 United States Environmental Protection Agency 56
1.2 The Netherlands 60
1.3 Taiwan Industrial Development Bureau 63
2. SCEM 68
2.1 The Interest in Supply Chains 68
2.2 Link between SCEM and Government Agenda 70
2.3 Motivations for SCEM Type I Programs 71
2.4 Strategies 72
2.5 Lessons Learned from SCEM 73
3. Government Industry Synergy Programs (GISP) 74
3.1 Taiwan Responsible Care Association (TRCA) 75
3.2 Guadalajara Environmental Management Pilot 83
Case Study: Standardized Industry Questionnaire CIQC 86
Case Study: NIKE’s MESH Program 88
Computer Industry and Quality Conference - STD 0014 90

VI. Conceptual Framework of EM and EMS 93
1. Environmental Management 94
1.1 Definition of Environmental Management 94
1.2 Reasons to Undertake Environmental Management 94
1.3 SME Environmental Management 97
1.4 Process of Environmental Change 104
1.5 Environmental Management Tools 106
2. Environmental Management System 109
2.1 Definition of Environmental Management System 109
2.2 The Reason to Implement an Environmental Management System 110
2.3 Conceptual Framework for Small and Medium Sized Enterprises Voluntary
Environmental Management System (SME-VEMS) 112
2.4 EMS Adoption of SMEs 115

VII. Environmental Management of Korean SMEs: Survey 121
1. Environmental Management in General 121
2. Organizational Commitment to Eenvironmental Management 123
3. Environmental Ddepartment 126
4. Environmental Management 128
5. Environmental Subsidies and Assistance Programs 135
6. Quality Management and the Eenvironment 137

VIII. Best Practices: Case Studies 139
1. Changwoon Co. (Taegu Factory) 139
1.1 General 139
1.1 Environmental Situation 142
1.2 Environmental Management 144
1.3 Implications and Key Conclusions 148
2. Daeduck Global Digital Solution Co. 149
2.1 General 149
2.2 Environmental Situation 156
2.3 Environmental Management 160
2.4 Implications and Key Conclusions 165
3. Korea Omyang Co. 166
3.1 General 166
3.2 Environmental Situation 169
3.3 Environmental Management 174
3.4 Implications and Key Conclusions 185
4. Samjin Chemical Co. 186
4.1 General 186
4.2 Production Processes and Environmental Aspects 187
4.3 Environmental Management System 187
4.4 Implications and Key Conclusions 192
5. Tongyang Confectionery Co. (Iksan Factory) 193
5.1 General 193
5.2 Environmental Situation 197
5.3 Environmental Management 200
5.4 Implication and Key Lessons 207
Criteria for Case Study 210

IX. Environment Management Guidelines for SMEs 232
1. Incentives for Implementing EM 232
1.1 Market 235
1.2 Regulation 237
1.3 Internal Factors 237
2. Overcoming Difficulties when Implementing EM(S) 238
2.1 Internal 238
2.2 External Barriers and Help 241
3. Overcoming Difficulties during EM(S) Adoption and Entering a Routine 244
3.1 Goals and Targets 244
3.2 Management Systems 245
3.3 Organization 247
4. Environmental Management Programs 250
4.1 Pollution Prevention 250
4.2 Waste Minimization 251
4.3 Recycling 251
4.4 Pollution Control 251
4.5 Waste Disposal Programs 252
4.6 Auditing 252
4.7 Performance Management 253
4.8 Suggestion Programs 253
4.9 Product Development 254
5. Maintaining Performance, Feedback and Learning 255
6. Information/Consultancy/Source of Government Support and Its Application 256
6.1 Information /Government Support 256
6.2 Training Support 258
< Appendix > List of Company Case Studies 260

X. Policy Recommendations for Government 261
1. Regulatory Policies 261
1.1 Regulatory Policies and Corporate Environmental Management 261
1.2 Implication and Direction of Regulatory Policies 263
1.3 Policy Recommendations 269
2. Market based Environmental Management Promotion Policy 270
2.1 Promotional Policy 270
2.2 Current Issues and Improvement Directions 271
2.3 Recommendations 273
3. Government’s Support to Facilitate SMEs’ Environmental Management 274
3.1 Policies for Supply Chain Environmental Management 275
3.2 Government Supporting System 281

XI. Summary and Conclusion 286

Reference 292

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