Sejong, September 27 - On September 22, the Ministry of Environment announced its implementation plan for a disposable cups deposit scheme and a plan to support small business owners. 

First of all, the Ministry of Environment will implement a deposit scheme for disposable cups at cafes and fast-food chains starting December 2, as scheduled. However, Jeju-do and the city of Sejong will take the lead in implementing a deposit scheme. Jeju Special Self-Governing Province will implement the deposit scheme for disposable cups as a part of its plastic phase-out policy to make the island a place without single-use plastic products. Since Jeju island is suffering from plastic pollution problems caused by tourism, the deposit scheme is expected to solve the island's deep-seated problem. Sejong Special Self-Governing City is occupied by many public institutions, including ministries. It plans to become a "resource circulation city" by the public body's taking the lead in reducing disposable cups and promoting the return of plastic cups for recycling. The ministry will recommend the public institutions in the city of Sejong not use disposable cups to which the deposit scheme is not applied and for which the reverse returning machine is unavailable.   

The Ministry of Environment will incentivize customers and participating stores in those two regions. The ministry will give additional points for the 'carbon neutrality action point' system. The 'carbon neutrality action point' is an incentive system where cash or credit card points are given to individuals based on their participation to help reach the net-zero emission goal. If consumers use reusable cups for takeout beverages, the ministry will give additional 'carbon neutrality action points', comparable to the discount. The Ministry of Environment will provide financial assistance for labels (KRW 6.99/piece), credit card fees for a cup deposit (KRW 3/cup), and processing fees for returning cups (KRW 4/cup). The ministry will provide label dispensers and reverse vending machines. The ministry will also install reverse vending machines in public places so consumers can easily return the used cups. The ministry will financially support those who wish to install unmanned reverse vending machines. The ministry will also increase places where consumers can return disposable cups in cooperation with local governments. 

The details of the deposit scheme for disposable cups will be institutionalized. The Ministry of Environment will make a pre-announcement of legislation on the revision of the Enforcement Decree of the Act on the Promotion of Saving and Recycling of Resources for forty days from September 26. In the revision, the amount of deposit will be set to KRW300 per cup, and consumers can return the cups to any participating stores regardless of brand names. In the initial phase of the implementation, however, consumers can return the cups only to the same brand stores where they purchase the beverages. In January 2022, the Ministry of Environment made a pre-announcement of legislation on whether the deposit amount of KRW 300 is suitable. Different stakeholders discussed the issue, and they concluded as follows. The deposit amount will be set to KRW 300, considering a survey of consumers on their willingness to pay and experience in a deposit scheme through previous voluntary agreements. In addition, consumers will be able to return the used cups to stores designated by the Ministry of Environment with their respective brands regardless of the seller. It was decided according to the following suggestions. It should be easy for consumers to know where to return the cups in the initial phase, where there are limited numbers of brands to which the deposit scheme is applied. It is desirable to share the burden of handling disposable cups as much as participating stores sell disposable cups. It is expected to relieve the stores' psychological burden on collecting other brands' disposable cups. 

The Ministry of Environment and the Container Deposit System Management Organization (COSMO) plan to carefully prepare to implement the deposit scheme for disposable cups successfully in the two regions. The ministry will establish a system to provide incentives. The ministry will also provide technical support for returning deposits or responding to on-site complaints. The ministry will expand the call center to process consumers' inquiries or difficulties. The ministry regularly monitors the "point of sale" system of participating stores to separate the accounting of deposits. The ministry will distribute notices and promotional materials and hold briefing sessions in each region.

Under the deposit scheme for disposable cups, an additional payment for single-use cups for beverages will be charged at the point of sale and is refundable to consumers when they return the used cups. The implementation of the deposit scheme was postponed to December 1 to grant small businesses more time to recover from the COVID-19 pandemic. Since May, the Ministry of Environment has continuously communicated with civil society, including small businesses such as franchises, franchise head offices, and environmental and consumer organizations, to find measures to implement the system while lessening the burden on stores.

Jung Seon-hwa, Director-General of the Resources Circulation Bureau, said, "We expect a deposit scheme for disposable cups to serve as a lever to expand the use of reusable cups and reduce disposable cups." She added, "The Ministry of Environment will establish the implementation roadmap to expand the deposit scheme nationwide, considering the outcome of the deposit scheme in those two regions."

Contact: Song Gwan-seong, Deputy Director

Resource Circulation Policy Division / +82-(0)44-201-7352

Foreign Media Contact: Chun Minjo(Rachel)

+82-(0)44-201-6055 / rachelmchun@korea.kr