[Falling Elevators]③ Losing Both Safety and Industry Due to Regulations... Only 'Minimal' Relaxation

Certification and Inspection Costs Account for 10% of SME Sales
Industry Claims "Too Many and Expensive Certification Targets"
Ministry of the Interior and Safety States "Safety Certification Targets Not More Than Europe"
Experts Warn "Excessive Regulations Pose Safety Threat"

The domestic elevator industry has contracted, ultimately leading to situations that threaten public safety, due to excessive regulations. These regulations have paradoxically resulted in a decline in corporate competitiveness, causing both safety and the industry to be compromised instead of enhancing safety.

Elevator experts are inspecting the electrical systems and error conditions during an external elevator safety check at a subway station in Seoul. Photo by Jo Yong-jun

Regulations on the elevator industry began in earnest in 2009. The Elevator Facility Safety Management Act was enforced, and the main government department overseeing the elevator industry was transferred from the then Ministry of Knowledge Economy to the Ministry of the Interior and Safety. Lee Seon-soon, Executive Director of the Korea Elevator Management Industry Cooperative, explained, "Instead of fostering the industry, the approach focused on regulation and management of each company, causing small and medium-sized enterprises to struggle, and a monopoly structure centered on large corporations became entrenched." A common criticism in the industry is the Elevator Safety Certification System. This system mandates certification for 20 types of parts. Certification is required not only at installation but also during maintenance, with inspections every three years. The inspection tasks are carried out exclusively by the Korea Elevator Safety Agency. Park Gap-yong, CEO of Hanjin Elevator, said, "Compared to Europe and other regions, the number of items requiring certification is too many, and it costs a lot of money and takes a long time," adding, "We hope the three-year cycle can be extended to five years." In response, the government and industry formed a 'Working TF on Elevator Safety Certification Reform (Certification TF)' from August 2022 to June this year to exchange opinions. Although the two-year consultation has concluded, the industry expects regulatory easing to be minimal.

On the 13th, Hyun Byung-il, Head of Certification at the Korea Elevator Safety Agency, stated, "The Certification TF operated until June this year, reaching some consensus on policies, and based on that, we are currently preparing legislation," adding, "We believe the certification system should be maintained as is, but safety reviews will be supplemented for some parts." He further explained that the current certification inspection process consists of three stages, and some will be relaxed while others maintained.

South Korea is the Only Country with Safety Certification for 20 Types of Parts

This is far from what the industry initially requested when participating in the TF. According to the revised Elevator Safety Management Act of 2018, domestic elevators must obtain mandatory certification for 14 types of elevator parts and 6 types of escalator parts, totaling 20 parts. Certification is also required for finished products assembled on-site from produced parts. Furthermore, every three years from the date of safety certification, even without design changes, regular inspections must be conducted for all models, including design review, factory inspection, and safety testing, identical to the initial inspection.

The industry claims that South Korea is the only country mandating certification for 20 types of parts and requests that seven of these parts be downgraded from certification to a lower level called 'confirmation.' The large number of parts requiring mandatory certification means high costs for elevator installation and maintenance. For example, according to data from the Ministry of the Interior and Safety, the safety certification costs for elevator parts such as the fall prevention safety device, overspeed governor, and door lock device are 4.33 million KRW, 4.77 million KRW, and 5.98 million KRW respectively. The Korea Elevator Industry Cooperative estimates that for small and medium-sized enterprises, certification and inspection costs can amount to 10% of total sales. Moreover, due to backlog in inspection tasks at the Elevator Safety Agency, the processing time for certification and inspections has lengthened, causing many companies to miss delivery deadlines and pay delay penalties. According to the Elevator Safety Agency, there are currently 52 personnel handling certification tasks, processing about 6,000 certification inspections annually.

However, the Ministry of the Interior and Safety holds a different view from the industry. A ministry official said, "In Europe, virtually all parts should be considered subject to safety certification," and "Domestic certification fees are only 18-54% of those charged by 'TUV-NORD,' a representative certification body in Europe." According to the Ministry, Europe requires third-party certification bodies to certify nine types of elevator safety parts through conformity assessment procedures. Other parts are also subject to optional third-party certification or self-certification to prove conformity. Violations can result in penalties, so most parts are effectively subject to safety certification.

Paradoxical 'Safety Regulations' Threatening 'Safety'

Experts agree that the current domestic certification system was introduced for safety reasons but has actually increased the burden on companies, thereby inducing situations that threaten safety. Kang In-gu, professor at Korea Elevator University, said, "The elevator industry is bound by mandatory certification, but advanced countries do not bind everything and certify only to the minimum standards," adding, "Certified products do not guarantee that accidents or defects will not occur."

Excessive regulations that do not align with reality cause industry contraction, which in turn leads to a situation where basic investments in safety cannot be made. Kim Yoon-yong, Executive Director of the Korea Elevator Industry Cooperative, pointed out, "Certification ultimately involves costs and increases on-site work time," and "Excessive certification regulations limit the investment in elevator installation and maintenance personnel, increasing the risk of poor management and safety accidents."

Experts argue that regulations should be improved to an appropriate level that ensures safety while fitting the circumstances of the elevator industry. Kim said, "In Europe, only the most critical parts for elevator safety require certification, and regulations should guarantee necessary safety at this level," adding, "Regulations should be eased to grow the industry and encourage investment in safety."