The Container Deposit System Management Organization

◦ The cost of purchasing disposable cups is determined autonomously after negotiations between the collection/transportation and recycling businesses.

◦ A return collection center is a facility that enhances the convenience of returning products subject to deposit (i.e., empty containers, disposable cups) and allows them to be returned in large quantities.

◦ The purpose of operating return collection centers includes improving the convenience of the consumer’s refund process for things such as bulk returns. Therefore, there is no limit on the number of disposable cups that can be returned, and returns are allowed regardless of their brand.

◦ Due to changes in consumption patterns and deregulation, disposable cups have rapidly increased, but the cup collection and recycling rate is very low.

- Due to the various materials of disposable cups and the absence of mandatory disposal, the number of cups collected and recycled is extremely small, and the rest is disposed of by incineration or landfill.

※ About 2.8 billion disposable cups are used yearly at franchise stores, but the recovery rate is estimated to be around 5%, and the remaining 95% is incinerated or landfilled.

- In particular, plastic cups cause an environmental pollution issue where huge amounts of carbon are emitted during the production and disposal process, as well as soil and marine pollution.

◦ The disposable cup deposit system was introduced to internalize external effects such as getting rid of disposable cups and to save and recycle valuable resources.

- The deposit system encourages consumers to actively return disposable cups and makes businesses that use and sell many disposable cups bear the cost of collecting and recycling disposable cups.

◦ From 2003 to 2008, around 3,500 coffee shops and 39 fast-food restaurant brands voluntarily signed an agreement with the Ministry of Environment and operated a deposit system.

- During that time, disposable cups were sold with a deposit fee of 50 to 100 KRW, and the deposit was refunded when the cups were returned. This reduced the use of disposable products, promoted the collection and recycling of disposable cups, and reduced city cleaning costs that were ultimately passed on to citizens. However, the system was abolished in March 2008 due to problems such as low deposit fees, not allowing returns from different brands, and a lack of a legal basis for the system.

◦Per [Table 5] Subparagraph 2 (a) (iii) c of the ‘Enforcement Rule of the Act on The Promotion of Saving and Recycling of Resources’, there is a limit of 20 cups per person per day

*Unlimited returns are possible if confirmed that the cup was purchased at the same store.

◦ In accordance with the ‘Enforcement Rule of the Act on the Promotion of Saving and Recycling of Resources’, [Table 5] Subparagraph 2 (a) (iii), the entire container deposit must be returned without delay to anyone who returns a disposable cup during business hours, regardless of the seller. However, in any of the following cases, the acceptance of disposable cups and the return of the container deposit may be refused.

A) Returning a disposable cup with no container deposit sign or a damaged barcode, etc., makes the cup’s information related to the container deposit non-verifiable.
B) Returning only the container deposit label without the physical cup.
C) The same person returning more than 20 items per day (limited to denying the excess amount). However, if it is confirmed that the purchase was made at the same store, the store must accept the disposable cups and return the container deposit.
D) Returning a disposable cup with remaining contents inside or add-ons (e.g., lid, straw, cup holder, etc.)
E) If the store does not sell beverages using disposable cups
F) Returning disposable cups not from the same brand at a store designated by the Minister of Environment as a store that only accepts disposable cups with the same business mark (brand).

◦ The return date and time of disposable cups cannot be specified, and the resource circulation deposit must be returned during business hours in accordance with the principle of returning disposable cups.

◦Stores that do not use disposable cups are exempt from the obligation disposable cup deposit system.

◦ Selling the product.

- An act of handing over or providing goods for a price, and disposable cups provided at such opportunity are subject to a deposit.

※ (Example) Transferring the remaining beverage to a disposable cup, providing additional disposable cups, etc.

- In the case of free transfer, it does not qualify as a sale and is not subject to deposit.

※ (Example) Free drinks provided during tasting events, additional drinks provided for promotional purposes, etc.

【Case 1】 Requesting a disposable cup to pack remaining drinks from a mug in the store:

▶ Considering its purpose or temporal accessibility, changing a mug to a disposable cup to drink the beverage sold to a customer is regarded as 'providing a beverage sales opportunity,' and is subject to a deposit.


【Case 2】 Requesting additional disposable cups to share drinks:

▶ For the purpose of drinking a beverage purchased by the customer, ① dividing the drink into several cups or ② providing an additional disposable cup is provided at the opportunity to sell the beverage, and therefore all of the cups provided are subject to a deposit.


【Case 3】 Providing free drinks for tasting in the occasion of new store openings, new product launches, etc.

▶ Under the circumstance that the drink is offered for free, it is exempt from a deposit.