The eco-friendly certification authority is a company which certifies agricultural and marine products by being entrusted by the National Agricultural Products Quality Management Service according to the Act on Environment-Friendly Agriculture and Fisheries. In 2017, due to the scandal on eggs contaminated with pesticides, the National Agricultural Products Quality Management Service initiated a severe inspection of eco-friendly certification authorities and ordered penalties such as operation suspension to about half of all certification authorities.

Certification authority A which DR & AJU represented (i) didn’t revoke the eco-friendly certification of farm B despite the fact that pesticide residue was detected from its agricultural products (the “First Cause”) and (ii) didn’t remove the eco-friendly certification mark from the relevant agricultural product despite the fact that pesticide residue was discovered from farm B’s agricultural product (the “Second Cause”). The National Agricultural Products Quality Management Service ordered a 6-month operation suspension to certification authority A based on those two causes.

There was no established legal interpretation and precedent where the interpretation of the Act on Environment-Friendly Agriculture and Fisheries was discussed before this case. Regarding the First Cause, DR & AJU argued that it was possible not to revoke the license in case there is a legitimate cause notwithstanding the fact that pesticide residue exceeding the standard was detected, suggesting the grounds for the possibility of pesticide scattering and quoting the concept of negligence of the Civil Act regarding the existence of a legitimate cause. For the Second Cause, DR & AJU argued that the certification authority does not have a duty to remove the eco-friendly certification mark because such removal is premised on the fact that there was a violation; if a legitimate cause exists, the mark does not have to be removed even if pesticide residue exceeding the standard has been uncovered

The competent court accepted DR & AJU’s argument and determined that the First and Second Causes were illegal. This is regarded as the first case to establish the interpretation of the Act on Environment-Friendly Agriculture and Fisheries when the interest on environments and foods is increasing. The National Agricultural Products Quality Management Service is proceeding with readjustment of the relevant legislation according to the purpose of the judgment.