On Jan.13, 2004, 6 Major paint manufacturers of Korea - Kunsul Chemical Co., LTD., KumGang Korea Chemical Co., LTD., Dongju Industrial Co., LTD., DPI Co., LTD., Samhwa Paints Industrial Co., Ltd., ChoKwang Paint LTD. - reached a voluntary agreement to attain 20% reduction of organic solvent in their paint products by the end of 2005. This agreement marks a significant environmental movement as these companies account for 70% market-share in Korea's paint industry.

* Reducing organic solvent in industrial paints would significantly drop VOC (Volatile Organic Compound) emission, one of major ozone depleting substances.

VOC majorly generates from vehicle repairing and construction paints. Thereby the agreement sets a 2005 target of reducing organic solvent in construction paints by 20% compared to that of 2003. Once the target is attained, 10,000 ton. of VOC reduction is expected, which will in turn markedly contribute to Korea's air quality improvement.

Upon the agreement, the companies are now bound to undertake various programs with the Ministry to promote environment-friendly paint consumption patterns while expanding the market for low-VOC paints. More concretely, the Special Act on Air Quality Improvement in Seoul Metropolitan Area, which will go into force in 2005, will mandate supply of low VOC paints in the respective region. MOE is to further expedite reduction of VOC by providing economic incentives like subsidiaries for low-VOC paint development.