Operating Profits from Public Waste Resource Management Facilities to Be Shared Up to 20% with Local Residents

Enforcement Decree of the 'Gonggong Pyejawon Gwanri Siseol Beop' Approved at Cabinet Meeting on the 1st... Effective from the 10th

Up to 40% of Operating Profits Allocated to Resident Welfare Support Projects

[Sejong=Asia Economy Reporter Joo Sang-don] In the future, residents in areas where public waste resource management facilities are installed will receive up to 20% of the facility's operating profits.

On the 1st, the Ministry of Environment announced that the Enforcement Decree of the "Special Act on the Installation, Operation, and Resident Support of Public Waste Resource Management Facilities," which includes these details, was approved at the Cabinet meeting and will be enforced starting from the 10th.

The Public Waste Resource Management Facilities Act was enacted and promulgated in June last year to supplement the limitations of the current waste treatment facility system, such as the shortage of private waste treatment facilities and avoidance of hazardous waste treatment, and to support residents in areas where public waste resource management facilities are installed.

This enforcement decree specifies matters delegated by the law, such as the scope of fund beneficiary areas, methods of resident investment, and distribution of operating profits, as well as necessary details for the installation and operation of public waste resource management facilities.

First, the scope of fund beneficiary areas is defined as areas within 2 km from the boundary of landfill sites, within 300 m from the boundary of incineration sites, and other areas recognized as necessary to be included as fund beneficiary areas through consultation between the Minister of Environment and the installation and operation agency based on environmental impact survey results.

In addition to the 'eup, myeon, and dong of the city, county, or district that has jurisdiction over the facility location,' 'eup, myeon, and dong of the city, county, or district that includes the fund beneficiary area' and 'areas within 5 km from the facility site boundary' have been added to the investment participation areas. However, if resident investment is low, the scope of investment participation areas can be expanded.

The installation and operation agency may raise resident investment funds for the installation project by issuing stocks or bonds or by other methods recognized by the Minister of Environment, within 10% of the facility installation cost, with a maximum amount of 30 million KRW per household, targeting residents living in the investment participation areas. The installation and operation agency is required to distribute 10% of the operating profits?calculated as 'total revenue' (including delivery fees and other income) minus 'total costs' (including labor and maintenance costs)?to residents living in the fund beneficiary areas, and up to 10% of the operating profits to resident investors.

Furthermore, up to 40% of the operating profits will be allocated to support resident welfare projects such as the installation of resident convenience facilities and income improvement by the relevant local governments, resident health checkup support by the installation and operation agency, and supply of surplus energy such as hot water. Additionally, a reserve fund within 20% of the operating profits will be accumulated for the repayment of resident investment principal and post-management of public waste resource management landfill facilities, and the remaining operating profits will be recovered to the national treasury.

Minister of Environment Han Jeong-ae stated, "Public waste resource management facilities represent a new model where local residents invest in waste treatment facility installation and share operating profits, making sustainable resident support possible. This is highly meaningful." She added, "We will apply strengthened environmental standards to install and operate facilities in an eco-friendly manner, and transparently disclose operational status to residents to create facilities that residents can trust and feel secure about."

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