[News Terms] ‘Gwabulhwa Hwahapmul’ Emerging as Trade Friction Issue with the EU

Perfluoroalkyl substances (PFAS), which the European Chemicals Agency (ECHA) of the European Union (EU) has proposed for a complete usage ban, are organic chemicals composed of carbon (C) and fluorine (F). They are hydrocarbons in which hydrogen atoms are replaced by fluorine, consisting of chemicals such as perfluorooctanoic acid (PFOA) and perfluorooctane sulfonate (PFOS).

The U.S. Environmental Protection Agency center is conducting tests to detect perfluorinated compounds.
[Photo by AP Yonhap News]

They have heat resistance and characteristics that prevent water, oil, and other substances from easily penetrating or contaminating surfaces, and have been used in various industries since the 1950s. They are mainly used in outdoor products, disposable paper cups, frying pan coatings, pesticides, and leather surface treatments. Raw materials or coatings containing perfluoroalkyl substances are also used to enhance the safety, flame retardancy, and durability of automotive batteries and electronic components. They are utilized as refrigerants or cleaning agents in etching and chemical vapor deposition processes during semiconductor manufacturing.

However, perfluoroalkyl substances are known as “forever chemicals” because they do not decompose easily, and are widely found in the human body and the environment, posing harmful effects. Continuous accumulation in the human body can increase the risk of cancer and immune system diseases. For these reasons, international research institutes classify perfluoroalkyl substances as carcinogens, and the U.S. Environmental Protection Agency also categorizes them as substances with evidence of potential carcinogenicity to humans.

The EU’s consideration of an extreme measure to completely ban the use of perfluoroalkyl substances is based on these concerns. The EU released related reports twice in February and March this year to review the complete ban proposed by five countries?Netherlands, Germany, Denmark, Sweden, and Norway?based on the “high persistence criteria.” The usage restriction options presented in the reports include two plans: one that imposes a complete ban without exceptions after an 18-month transition period following enforcement, and another that also allows an 18-month transition period but permits exceptional use for 5 years (for industrial machinery where alternative substances are under development or require time to develop) or 12 years (for implantable medical devices like pacemakers where no alternatives exist or development takes a long time) before a complete ban. Based on these reports, the EU plans to finalize evaluation opinions through the Risk Assessment Committee (RAC) and the Socio-Economic Analysis Committee (SEAC) after 2024, have the European Commission adopt the agenda in 2025, and apply usage restrictions as early as 2026.

The domestic industry is in a state of emergency. Since it is difficult to find substitute materials for perfluoroalkyl substances immediately, a complete ban would inevitably cause significant disruption and shock to the supply chain. Problems could arise in battery and semiconductor production and used battery recycling, delaying the spread of electric vehicles and hindering carbon neutrality and circular economy implementation. Exports of Korean-made home appliances, automobiles, and semiconductors would also be adversely affected.