Deposit System for Disposable Cups to be Implemented from June 2022

Amendment to the Resource Recycling Act Approved at Cabinet Meeting on the 2nd
66% Reduction in Greenhouse Gas Emissions... Annual Benefits of 44.5 Billion Won
Mandatory Installation of Waste Treatment Facilities in Residential Site Development

On the 1st, a coffee shop in downtown Seoul has both mugs and disposable cups placed together. The Ministry of Environment plans to enforce a ban on the use of disposable cups inside stores starting from the 1st. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Kim Bo-kyung] The deposit system for disposable cups will be fully implemented starting June 2022.

According to the Ministry of Environment, the "Act on the Promotion of Saving and Recycling of Resources (Resource Recycling Act)" including the introduction plan for the disposable cup deposit system was approved at the Cabinet meeting on the 2nd.

The amendment to the Resource Recycling Act centers on imposing a certain deposit fee on disposable cups when ordering beverages at coffee shops and the like, and refunding the deposit when the cup is returned. This law is scheduled to take effect from June 2022.

This establishes a legal basis for the first time in 14 years since the voluntary agreement with related industries was promoted in 2002 and abolished in 2008.

The number of coffee shops, bakeries, and fast-food outlets that mainly use disposable cups surged from about 3,500 in 2008 to 30,549 in 2018. The usage of disposable cups also increased from approximately 420 million in 2007 to 2.5 billion in 2018.

The collection rate of disposable cups dropped from 37% in 2009 to 5% in 2018. The deposit system is being reintroduced to solve the problem of recyclable cups being left as street litter.

Additionally, to enhance transparency in managing unreturned deposits, the "Resource Circulation Deposit Management Committee" and the "Resource Circulation Deposit Management Center" will be established and operated.

If the cup collection rate increases and recycling is promoted, greenhouse gas emissions can be reduced by more than 66% compared to the previous incineration of disposable cups, and annual benefits exceeding 44.5 billion KRW are expected.

Furthermore, the amendment to the "Act on Promotion of Installation of Waste Treatment Facilities and Support for Surrounding Areas (Waste Facility Promotion Act)" approved at the Cabinet meeting mandates, in principle, the installation of waste treatment facilities when developing housing sites or apartment complexes. It is scheduled to be enforced six months after promulgation.

In addition, in special cases such as proximity to residential areas, waste treatment facilities can be installed underground, and developers can install community convenience facilities in consultation with the heads of local governments.

Until now, most developers of housing sites have not installed waste treatment facilities but have paid installation fees to the relevant local governments. Due to this, problems such as shortages of waste treatment facilities and ongoing legal disputes over the calculation of installation costs have arisen, leading to this amendment.

Once the system is implemented, it is expected to enable more stable installation of essential facilities or waste treatment facilities that are difficult to install due to local opposition, and to increase residents' acceptance.

The Ministry of Environment plans to fully gather opinions from related industries, stakeholders, and the public through various means such as nationwide surveys and public hearings during the detailed system design process including the preparation of subordinate statutes for the two laws.

Lee Young-gi, Director of Resource Circulation Policy at the Ministry of Environment, stated, "The amendment of these two laws has laid the social foundation for more stable waste management," and added, "We will thoroughly prepare to ensure the new system is smoothly implemented in the field."

This content was produced with the assistance of AI translation services.