Familiarizing with the new deposit system for disposable cups

The deposit system for disposable cups begins June 2022.

The purpose of the deposit system for disposable cups is to encourage recycling and resource circulation by applying fees for the use of disposable cups and those fees will be paid back once the used disposable cups are returned.  Since 2019, the Ministry of Environment has been planning a roadmap that aims to reduce 35% of the use of single use products by 2022.

Although this system has already been effected in 2003 to 2008, it was abolished due to less than 30% participation rate and unclear use of unrefunded fees that caused growing concerns and inconveniences to consumers.  Subsequently, the government continuously worked on improving regulations and structures to supplement resource circulation, which will begin to take effect in June 2022.

 The deposit system for disposable cups at a glance

Beginning June 10th, 2022, there will be an additional 300 won fee, which is a resource circulation deposit, when you order a drink in a disposable cup and you will get the 300 won fee back once you return the used cup.

This was implemented in May 2020 after the National Assembly passed the revision of the Act on the Promotion of Resource Saving and Recycling (hereinafter referred to as the Resource Recycling Act )

However, it will not be implemented in all stores, but to 79 businesses and 105 brands, which will be subject to higher legal standards. Also, the disposable cups must have a recycling label on them when returned to get the deposit fee back.

The relevant food and beverage businesses are popular stores that we are familiar with, and for those who are subject to detailed application, refer to the link below.

<Refer to List No. 476 of the Ministry of Environment's legislative and administrative notice>

※ The deposit system is applied to 38,000 stores nationwide in the franchises of coffee, beverage, bakery, and fast food industries that operate more than 100 stores

Now, how does the system work?

The initial deposit system for disposal cups had many complications such as the uncertainty of primary management and where the deposits are being used, but the newly revised system is designed to be more systematic.

The operation management of this system will be conducted by the Container Deposit System Management Organization (COSMO) as follows:

<image:  COSMO>

 

※ The amount of support funds for processing are calculated according to costs such as collection, transportation, storage, labor costs, fuel costs, rent, etc., and paid to collection and transportation business operators based on the cases voluntarily conducted by the Seoul Metropolitan Government.

Then, on what basis will the deposit be returned?

First of all, the Korea Minting, Security Printing & ID Card Operating Corp (KOMSCO) will supply special barcode stickers to the stores. Therefore, it ensures the pay back. The stores will sell drinks with barcode stickers on the cups, and consumers will be able to get the deposit by cash or account transfer through the app if they return the paper cups to the stores after using it.

The collected paper cups will be picked up by recycling companies, and the companies will be managed and paid for through the COSMO payment management system.

  

So, what is the standard container?

As the purpose of the deposit system for disposable cups is to reduce waste and circulate resources, certain standards and categorization is needed. The government has established some criteria of recycling standard containers according to its recycling yield, material, color and specifications of cups so that disposable cups can be collected and recycled without any issues.

  

<image: labelling example of KOMSCO >

There are two labels given by KOMSCO: standard containers and non-standard containers. In other words, standard paper containers must be able to recycle at least 90%, and non-standard containers are not able to recycle.

The Ministry of Environment plans to collect both of these products for resource circulation and waste reduction. The funds supported for standard containers are 4 won and non-standard containers are 10 won, which are paid by the food and beverage cafes and paid to recycling collectors through the COSMO payment management system.

The Ministry of Environment expects the food and beverage cafes to prefer standard containers with high resource circulation to reduce costs.

 

To accomplish the goal 

The deposit system has been improved to induce the participation of consumers and the subject of specific operations, based on the previous failure.

However, there are some concerns about the purpose of the system, that is, whether it will satisfy the resource circulation.

First, the feasibility of the recyclable yield of 90% for the resource circulation of standard containers.

When recycling paper cups, the higher the amount of impurities during the repulping process, the less efficient the recycling is. The 90% of recycling yield shows the possibility of greenwash, but the remaining question is whether it is an actual percentage of industrial resource circulation. Furthermore, 90% could be adjusted by the rate of the base paper which could lead to decreasing the rate of actual recyclability. And this will result in obscuring the purpose of the system.

Second, product verification for standard containers.

Yet, there is no clarity on the existence of suitable test standards and methods, as well as the verification agency to certify the 90% resource circulation. Meanwhile, rePAPER has already been certified for recycling more than 99.5% by PTS and UL. In spite of the new system taking effect in June, 2022, there are raising concerns of the practicality of the system since there are no guidelines to the standards in Korea.

Third, we need to consider who is responsible for the cost and the inconvenience.

It seems that the structure needs to be simplified so that not just one subject is burdened with the cost but that the responsibilities can be shared.  The potential frustrations are: purchasing and attaching labels, securing space for collecting cups, conflicts in paying back deposits, and managing contactless machines for collecting cups.

<image: ntoday>

 

Korea has the highest rate of plastic usage in the world, which is 132.7kg per person annually.

The hygiene and convenience of disposable products that have already seeped deep into our lifestyles cannot be ignored. Also, the structure of the disposable industry and the dynamics of the market cannot be changed overnight. Nevertheless, we are all aware that transition into the ban-plastic era is not an option any more, but a must.  Thus, the success of the deposit system is crucial with constant improvement and persuasion to accomplish the goal of resource circulation and waste reduction.

 

So let’s remind ourselves of the meaning of the 300 won deposit fees in a cup of coffee to help resources to circulate!