The Container Deposit System Management Organization

◦ Information on whether a disposable cup deposit is included for various beverage menus

- All beverages except ice cream and shaved ice products are subject to the disposable cup deposit.

※ Coffee, beverages (subject to deposit) – shakes – yogurts – ice cream + coffee/drinks // ice cream, shaved ice (exempt)

- Shake and slushie drinks: included in the disposable cup deposit program
- Yogurt (including yogurt drinks with granola, cereal, etc.): included in the disposable cup deposit program
- Drinks with ice cream (such as affogato - coffee with ice cream): included in the disposable cup deposit program
- Other types (such as sikhye and misutgaru): included in the disposable cup deposit program
- Ice cream and shaved ice products: not included in the program

◦ Refund to the consumer’s account using POS or the container deposit-seller app

- ①Scan the barcode (consumer serial number) of the consumer app using POS or the container deposit-seller app ⇒ ②Scan the barcode of the label on the disposable cup

※ The refund is immediately processed in the consumer app (consumers can transfer the money to their personal account registered in the app)

◦ Cash refunds

- ①Select the POS cash refund function (headquarters’ guide) or the [Refund in cash?] option in the seller app ⇒ ② Scan the barcode of the label on the disposable cup ⇒ ③Refund the consumer in cash

※ Deposits returned in cash at the store are transferred the next day to the store account registered in the “Disposable Cup Deposit Payment Management System.

◦ Return locations outside of stores will be installed to alleviate the burden of returns on businesses and improve convenience for consumers.

ㅇ (Cup return centers, etc.) Disposable cup return stations and collection points will be installed in densely populated areas to encourage consumers to return items.

※ All products can be returned, regardless of brand, and there is not a limit on the return quantity.

ㅇ Automated return kiosks that pass performance evaluations will be installed in public spaces.(device price TBD, currently advocating for 95% of the cost to be supported).

※ During the initial implementation of the system, we will prioritize the installation of incentivized return locations and evaluate the return performance before transitioning to automated return kiosks.

ㅇ (Retrieval support machine) Qualifying businesses (franchisee) will purchase and support it at the retrieval support machine center using a tablet PC, etc.

※ The return support devices recognize barcode information and only refund the deposit, while cup storage and other tasks are performed manually.

◦ A service center (1522-0082) is currently operating for inquiries regarding the disposable cup deposit system. The center is open on weekdays and weekends from 09:00 to 21:00 (from Nov 19th, 2022, onwards)

◦ Returns are currently only possible through the consumer app when using the automated return kiosk.

◦ Cash return is not applicable because there are difficulties in its operation, along with securing coins. However, an additional method of cash return in the future is under review.

◦ Deposits are monetary receipts received under the condition of return and therefore are not subject to taxation.
- Refer to Value-Added Tax Act, Written-20220, Regulation [Laws and Regulations Section-1943], June 28, 2022 and Article 29 of Value-Added Tax Act.

◦ Handling subsidies are obligatory expenses and are not subject to taxation. They are verified by the invoice issued by COSMO.
- Refer to Article 15-2 (4) of Act on the Promotion of Saving and Recycling of Resources.

◦ Automated return kiosks will be operated for the purpose of improving the convenience of returns by supporting the return process of products subject to a deposit.

- An automated return kiosk is a device that performs tasks related to deposit returns without the help of a separate supervisor, such as checking whether the disposable cup is eligible to be returned so that the consumer can get the deposit refund and prevent the loss of a disposable cup that has been returned.

◦ ①Remove any attachments from the cup before inserting it into the machine (consumer responsibility). ② Scan the consumer code using the consumer app. ③ Scan the cup barcode (deposit label). ④ Verify the validity of the deposit label. ⑤ Receive the deposit refund (can be checked on the consumer app).

◦ The kiosk locations can be searched on the COSMO website and consumer app.

Most empty bottles produced before the increase (hereinafter referred to as “old bottles”) have been collected, but some are still being distributed. Therefore, manufacturers shall confirm the appropriate return of empty bottles after the increase in deposit (hereinafter referred to as “new bottles”) on the return list of empty containers.
-Those returning empty containers (such as wholesale industries, bottle collectors, etc.) shall distinguish between old and new bottles.
① The manufacturer shall confirm the return list of empty containers distinguishing between old and new bottles.
② If the old and new bottles are not distinguished or the reuse mark is damaged, it can be accepted as an old bottle return.
- It is necessary to confirm whether returned empty containers are distinguished by old and new bottles. * Selection and verification of deposit are mandatory in accordance with the “Compliance Requirements in attached Table 5 of Enforcement Rule of Act on the Promotion of Saving and Recycling of Resources” and “Role Allocation by Entity in Article 6 of the Guidelines.”

After the final verification, the details should be reflected on the receiving statement of the Payment Management System written by the manufacturer.