Korea Eco-Label Review Fee & Procurement Payback Calculator

Calculate the official 2026 Korean eco-label review fee, project and extension cost, NPV, and probability-weighted public-procurement payback.

Official-fee defaults reflect the notice effective 2026-04-01 and the 2026 wage rate; other values are a fictional business example.

1. Application type and official review fee

Separately calculates the per-product base fee, review-day charge, travel expense, and VAT.

Application type
products

Used for both the base fee and added document-review days.

KRW/day

The default is the published engineering wage rate applicable in 2026.

KRW pre-VAT

Enter the reviewing agency estimate or actual quote.

KRW pre-VAT

Used when the horizon continues beyond 36 months.

2. Initial business cost and internal effort

Adds testing, consulting, and internal effort; confirmed grants offset external cash cost only.

KRW

Include laboratory quotes, samples, and delivery.

KRW

Enter zero for fully in-house work.

KRW
hours

Data collection, supply-chain checks, filing, and site-review support.

KRW/hour

Use employer cost or a documented opportunity value, not take-home pay.

KRW

Enter only an awarded or contracted amount.

3. Upkeep and 36-month extension cost

If the horizon continues beyond the 36-month default validity, extension review and other costs are scheduled.

KRW/year

Combine label control, periodic testing, evidence updates, and internal upkeep.

KRW/event

Testing, improvement, and filing cost beyond the official extension fee.

4. Procurement opportunity and realization

Because public purchasing duties have exceptions, expected contribution applies a probability to incremental certification-related revenue.

KRW/year

Include only incremental opportunities that may be unavailable without certification.

%

Revenue less directly variable fulfilment cost.

%
%
%

Keep conservative ≤ base ≤ optimistic.

5. Timing and investment appraisal

Payback separates pre-certification preparation from post-certification cash flow, while NPV applies the annual discount rate.

months

Expected time from the decision date to certification.

months

Zero starts expected contribution in the first month after certification.

months

12 to 120 months

%

Use your hurdle rate or cost of capital.

Eco-label review fee and procurement payback results

Initial official review fee

KRW 1,168,917

3 review days · VAT included

Net initial economic cost

KRW 5,668,917

Cash KRW 3,668,917 · includes internal effort

Base sustained payback

51.9 months

Includes 3 preparation months · 48.9 months after certification

Base NPV

KRW 1,146,834

60-month nominal ROI 20.71%

Checks before relying on the result

  • Initial review travel expense is zero. Enter the agency estimate because location and staffing can change it.
  • The horizon extends beyond 36 months but extension travel expense is zero. Confirm an actual extension estimate.
  • Eco-label certification does not guarantee public-procurement awards. Validate revenue with tender rules, purchasing plans, demand, and historical conversion.
  • Recheck the fee notice, wage rate, VAT rate, and validity period on the application date. This is not an official quote or eligibility decision.

Official review-fee breakdown

Initial official eco-label review fee by item
ItemAmount
Per-product base feeKRW 130,000
Small-enterprise reductionKRW 0
Review charge (3 days)KRW 932,652
Travel expenseKRW 0
Supply amountKRW 1,062,652
VAT at 10%KRW 106,265
TotalKRW 1,168,917

Scenario comparison

Eco-label procurement payback by realization probability
ScenarioProbabilityAnnual expected contributionSustained paybackNPV
Conservative25%KRW 1,250,000Not recovered-KRW 4,077,970
Base ★50%KRW 2,500,00051.9 monthsKRW 1,146,834
Optimistic75%KRW 3,750,00026 monthsKRW 6,371,638

Cost and break-even conditions

Initial external cost
KRW 3,668,917
First 36-month economic cost
KRW 6,568,917
Estimated cost per extension
KRW 2,668,917
Total horizon cost
KRW 9,837,834
Potential annual procurement contribution
KRW 5,000,000
Required realization for horizon payback
41.42%
Break-even annual eligible revenue at base probability
KRW 16,568,984
Extension months in horizon
month 36

Base-scenario annual cash flow

Initial cost is placed at certification month 0; extension cost is scheduled every 36 months when the horizon continues.

Base-scenario annual procurement contribution and cost
YearExpected contributionUpkeepExtensionNet cash flowDiscounted net cash flowCumulative net value
Year 1KRW 1,875,000KRW 300,000KRW 0KRW 1,575,000KRW 1,522,889-KRW 4,093,917
Year 2KRW 2,500,000KRW 300,000KRW 0KRW 2,200,000KRW 2,040,791-KRW 1,893,917
Year 3KRW 2,500,000KRW 300,000KRW 2,668,917-KRW 468,917-KRW 361,900-KRW 2,362,834
Year 4KRW 2,500,000KRW 300,000KRW 0KRW 2,200,000KRW 1,851,058-KRW 162,834
Year 5KRW 2,500,000KRW 300,000KRW 0KRW 2,200,000KRW 1,762,912KRW 2,037,166

Related calculators

Value an eco-label through incremental procurement contribution, not the certificate alone

A Korean environmental-label budget is wider than a per-product application fee.
The official review charge depends on the number of products, application type, added document-review days, site-review treatment, the applicable construction high-grade engineer daily rate, travel expense, and VAT.
Testing, samples, consulting, internal preparation, annual label upkeep, and extension work can be larger than the official invoice and therefore belong in the investment case.

This calculator reflects the fee notice effective April 1, 2026, the engineering wage rate applicable in 2026, and 10% VAT as separately traceable assumptions.
It then applies conservative, base, and optimistic realization probabilities to incremental procurement revenue because certification does not guarantee procurement or a contract award.
The result is a planning estimate for budget approval and pipeline review, not an agency quotation, certification decision, or tender forecast.

Official fee basis applicable in 2026

Articles 17 and 25 of the Environmental Technology and Industry Support Act provide the certification and fee framework.
Article 30 of its Enforcement Decree connects the payable amount to review cost and the ministerial notice.
Notice 2026-61 applies the revised application-fee method to applications filed on or after April 1, 2026, so a later application date requires a fresh check for amendments.

Components of the Korean eco-label application review fee in 2026
Component2026 model ruleCheck before filing
Base feeKRW 130,000 per productA qualifying small enterprise may receive a 30% reduction on this component only
Document reviewTwo base daysAdd one day for 4–10 products, two for 11–50, three for 51–100, and four for more than 100
Site reviewOne day for a new application or extensionZero days in the same-product-and-manufacturer route, subject to scope confirmation
Review chargeDaily wage rate multiplied by total review daysThe default is KRW 310,884 per day for a construction high-grade engineer in 2026
TravelActual travel under the public-official travel frameworkObtain an estimate for the review location, schedule, and staffing
VAT10% of the supply amountApplied after adding the reduced base fee, review charge, and travel expense

Four decision layers kept separate

Official review invoice

The model reduces the per-product base fee when eligible, adds a review-day charge based on the application route and product tier, adds travel, and applies 10% VAT. Initial and extension reviews are calculated separately.

Initial cash and economic cost

Testing, consulting, and other direct amounts create initial external cost. A confirmed grant offsets external cash cost only, while staff preparation hours are added as an economic cost for the decision.

Upkeep and extension cost

Annual label control, evidence updates, and periodic testing are spread monthly. When the horizon continues beyond the 36-month default validity, extension review and additional testing costs are scheduled every 36 months.

Expected procurement contribution

Only revenue opportunities that may be unavailable without the label are included. Contribution margin and a realization probability convert the sales pipeline into an expected economic benefit.

How to build a defensible estimate

  1. Confirm the application route and product count.
    Choose a new application, validity extension, or the same-product-and-manufacturer route according to the filing that the reviewing body will accept.
    Product count changes both the base fee and document-review days, so confirm the application unit under the relevant product criteria before entering it.
  2. Evidence the reduction and variable official amounts.
    Apply the small-enterprise reduction only with current evidence and agency confirmation.
    Replace the daily wage default when a newer annual rate applies, and request pre-VAT travel estimates for both the initial and extension reviews instead of assuming zero.
  3. Add costs outside the official fee.
    Map required test items to laboratory quotations and include samples, shipping, and a reasonable retest allowance.
    Enter consulting only when used, then value staff time spent collecting material evidence, completing forms, responding to corrections, and supporting the site review.
  4. Deduct confirmed support conservatively.
    A planned grant application is not a cash receipt.
    Enter only an awarded or contracted amount that can fund these costs, and separately verify co-payment, reimbursement timing, excluded VAT, and clawback conditions.
  5. Budget ongoing compliance and extension.
    Annual upkeep can include label control, material-change review, evidence renewal, periodic testing, and internal administration.
    Certification is commonly valid for three years from the result notice, but an applicable criterion can shorten the period, so the certificate and current criterion take priority over the 36-month planning default.
  6. Narrow benefit to incremental contribution.
    Exclude sales already available without certification, general market size, and opportunities for which the label has no tender relevance.
    Use only supported procurement opportunities, subtract direct variable fulfilment cost through the contribution margin, and apply conservative, base, and optimistic probabilities in ascending order.
  7. Separate preparation from post-certification delay.
    Preparation months run from the investment decision to certification and are added to calendar payback.
    Benefit-delay months cover the later wait for a tender, award, delivery, and acceptance, while the annual discount rate converts future monthly cash flow to present value.

Formula and result guide

Official fee

Base fee before reduction equals product count multiplied by KRW 130,000.
Total review days equal two base document days, added document days from the product tier, and the site-review days for the application type.
Supply amount equals the reduced base fee plus the daily wage multiplied by review days plus travel, and total fee adds rounded 10% VAT.

Net initial economic cost

Initial external cost equals the official fee, testing, consulting, and other direct cost.
Confirmed support is deducted with cash outlay floored at zero, and internal hours multiplied by hourly cost are then added.
Horizon cost adds monthly upkeep and each extension event that occurs while the selected analysis continues.

Expected benefit and sustained payback

Annual expected procurement contribution equals incremental eligible revenue multiplied by contribution margin and scenario probability.
Benefit starts after the selected delay, annual upkeep is deducted monthly, and extension cost is deducted at months 36, 72, and so on when the horizon continues.
Sustained payback is the first crossing after which cumulative value never returns below zero within the horizon.

Break-even and NPV

Required realization divides horizon cost by potential contribution before probability.
Break-even annual eligible revenue divides horizon cost by active benefit years, contribution margin, and the base probability.
NPV places initial cost at certification month zero and discounts later monthly net cash flow at the selected annual rate.

Reproducible fee examples

These examples use the 2026 construction high-grade engineer rate of KRW 310,884 per day.
They verify the formula rather than promise an invoice, and actual travel, application grouping, or reduction eligibility can change the amount.

Reproducible official eco-label fee examples by application and product count
CaseReduced base feeReview daysReview chargeTravelTotal with VAT
New, one product, no reductionKRW 130,0003KRW 932,652KRW 100,000KRW 1,278,917
New, four products, small enterpriseKRW 364,0004KRW 1,243,536KRW 200,000KRW 1,988,290
Same product and manufacturer, 11 productsKRW 1,430,0004KRW 1,243,536KRW 0KRW 2,940,890

Practical uses and decision safeguards

Pre-launch budget approval

Product and quality teams can map test criteria, product count, external quotes, and internal effort. Finance can then separate the official invoice from economic cost and identify when cash is required.

Public-sector sales planning

Use published purchasing plans and tender documents to identify opportunities for which the label matters. Apply evidence-based probabilities that also reflect price, competitors, delivery, and production capacity.

Batch-versus-staged filing

More products increase the base fee and can cross a document-day tier. Compare grouped and staged applications together with duplicate tests, travel, sample work, and internal response time.

Grant downside case

Compare an awarded-support case with a no-support case. This exposes the self-funded cash requirement and prevents uncertain assistance from creating an artificially short payback.

Extension decision

Replace planning defaults with actual procurement contribution and upkeep after certification. Check whether sustained payback survives the extension cost before committing to another validity cycle.

Revenue hurdle setting

Break-even eligible revenue translates certification cost into a pipeline target. If it is unrealistic, revisit price, variable cost, product scope, testing design, and external support.

  • Article 6 of the Green Products Purchasing Promotion Act creates a public-institution purchasing duty but also contains exceptions, including unavailable green products, unstable supply, material quality disadvantages, other statutory priority purchases, and unavoidable urgent demand.
  • Product criteria differ by category and can change.
    Confirm the current eligible product group, test items, restricted substances, production process, and material evidence before ordering laboratory work.
  • A procurement evaluation may give greater weight to price, specifications, delivery, other statutory preference programs, or bidder qualifications.
    Isolate only the incremental effect attributable to the eco-label.
  • If only the optimistic scenario recovers the investment, document approval conditions such as a minimum supported pipeline, target margin, confirmed support, and a staged stop decision.

Frequently asked questions

Does an eco-label guarantee a public-sector purchase?

No. The purchasing framework creates an important opportunity, but exceptions, budget, demand, specifications, price, timing, and bidder qualifications still apply. The model therefore probability-weights incremental revenue rather than booking guaranteed sales.

Is KRW 130,000 the entire certification cost?

No. It is the base fee per product. Review-day charges, travel, and VAT are added, while private tests, samples, consulting, internal effort, upkeep, and extension work can be separate.

Does a small enterprise receive 30% off every cost?

No. The notice applies the reduction to the product-count base fee. Eligibility evidence is required, and the review charge, travel, testing, and consulting do not automatically receive the same reduction.

Why does the review charge increase at four products?

Two document days are the base. Four through ten products add one day, while further thresholds occur at 11, 51, and 101 products.

Is validity always exactly three years?

Three years from the result notice is the normal planning period, but a product criterion or its remaining term can shorten certification. The issued certificate and current criterion take priority.

Why is preparation added to payback?

Post-certification cash flow uses certification as month zero, but management also needs the elapsed time from the original investment decision. Calendar payback therefore adds preparation months to sustained post-certification payback.

What is sustained payback?

First payback is the initial crossing above zero. Sustained payback is the first crossing after which later upkeep or extension cost does not drive cumulative value below zero again within the horizon.

Can I enter a grant that I only plan to apply for?

A pending application is not confirmed cash. Keep it out of the base case and compare it separately so the model does not hide the self-funded downside.

Official sources and review date

Core amounts and legal boundaries were checked against current official material on August 8, 2026.
The source identifiers below make later amendment checks possible without treating this page as a substitute for the reviewing body.

Turn verified quotes and procurement evidence into a realistic hurdle

Start with the application route, product count, current travel and test quotes, and internal effort.
Then compare supported incremental revenue and contribution margin across three probabilities to explain both the certification budget and the sales target needed to recover it.