The Container Deposit System Management Organization

The retailer should process a refund if the customer returns the same type of empty container as the product with the container deposit on sale.
- However, if the customer returns a beer bottle with a deposit to a retail store that only sells PET beer, the retailer does not need to refund.
- In the case of soju, even if the store sells only glass bottle products of the “C” brand that include the deposit, it shall not refuse to refund for a different brand’s soju bottle (with the deposit).

When a store sells the same type of product as the ones with the container deposit, it shall refund regardless of the manufacturer and the seller.
- The same type of product with the container deposit indicates fermented liquor, distilled liquor, beverages, and drinking water defined in Article 17 of the Enforcement Decree of Act on the Promotion of Saving And Recycling of Resources.
- Accordingly, the criteria for determining the “same type” to be collected by each retail store based on the current product status vary depending on the type of deposit-including the products sold, such as soju, beer, and carbonated drinks.

The deposit should be refunded, regardless of the seller, if the returned container is the same type as the product with the deposit on sale.
- According to the attached Table 5 of Enforcement Rule of Act on the Promotion of Saving and Recycling of Resources, for containers of the same type as those on sale, the deposit should be refunded in full regardless of the seller.

Q. Shall a retail store refund deposits for containers used in restaurants?

A. Retail stores do not need to refund deposits for containers used in restaurants.

For products with the deposit sold to restaurants:
- The wholesaler who supplied the products to the restaurant has an obligation to collect the containers.
- The handling fee for the containers collected from restaurants differs from those collected through retail stores.
- If containers used in restaurants are returned to retail stores, there is a risk of unfairly overpaid handling fees.

You shall not restrict a specific time of day or week for returning containers.

According to the Act on the Promotion of Saving And Recycling of Resources, the container deposit must be refunded during business hours, regardless of the seller.
- Under Article 12-4 and Table 5 of the enforcement rule of the same act, retailers shall refund the full deposit fee during business hours.
- Retailers refusing to refund due to the reason that it is not the return time may be subject to a penalty of up to 3 million KRW.

The full deposit must be refunded in accordance with Article 15-2 (3) of the Act on the Promotion of Saving and Recycling of Resources.

Refunding only a portion of the deposit or exchanging it for goods may result in penalties.
However, it is possible to exchange for goods equivalent to the deposit amount with the consumer’s consent.

Q. Are broken containers and/or contaminated containers with foreign substances such as sesame oil or cigarette ash subject to be refunded?

A. Deposit is refunded in the same condition as it was used so refunds may be refused if the container is not reusable by visual inspection.

Deposit refunds are based on the premise that the container is “reusable.”
- When the container is broken or contaminated by substances like cigarette ash or sesame oil and cannot be reused, it can be considered “unusable.”

Even if the container is washed, residual substances of cigarette ash or sesame oil may remain, affecting the safety and hygiene of the product.

If there is no valid reason, refusing to refund container deposit fee results in a penalty.
- However, according to attached Table 5 of Enforcement Rule of Act on the Promotion of Saving And Recycling of Resources, refusal is allowed for containers exceeding 30 due to insufficient storage space, etc.
- If it can be confirmed that the containers were purchased at the relevant store by a receipt, etc., they shall be accepted regardless of the quantity, and the deposit shall be returned.

If the container's label is damaged and it is difficult to identify the deposit amount, the payment can be made based on the deposit amount before the increase.
-However, if it can be confirmed that the container was purchased at the relevant retail store with a receipt, the corresponding deposit can be paid.

Based on Article 22 of the Guidelines for the Management of Return of Container Deposit and Payment of Handling Fees (Principles of Returning Empty Containers)
(1) When the deposit amount is changed, wholesalers and retailers shall distinguish containers before and after the change to collect and return them. Wholesalers and manufacturers may request it if the containers are not clearly separated.
(2) As described in paragraph (2), when the deposit is changed and the deposit mark is damaged to the point where the deposit amount cannot be identified, payment should be made based on the deposit amount before the change.
However, if the purchase history is verified, this does not apply.

The wholesalers shall promptly retrieve the empty containers stored by the retail stores whom they are dealing with so the containers are not damaged. (Table 5, Article 12-4 of Enforcement Rule of Act on the Promotion of Saving And Recycling of Resources)
- The retail stores shall collect containers of the same type as the deposit products on sale (fermented liquor, distilled liquor, beverages, and drinking water) and, accordingly, empty containers of products not handled by them as well.
※ For example, even if the retail store sells only HITEJINRO’s “C” soju, since it is selling distilled liquor, it shall also collect Hallasan’s “H” soju, which is a type of distilled liquor.
- Therefore, wholesalers shall collect empty containers, including ones of unhandled products, from the retail store, distinguish old from new, and return them to manufacturers
- The manufacturer who collected other manufacturers’ products shall exchange containers with the corresponding manufacturer.

Since January 1, 2017, the “statistical management system for new and old bottle classification” has been applied to most wholesale companies handling empty containers for business use per Article 35 (5) of the Payment Management Guidelines, and new and old bottles have been registered.
-Companies not applying statistical management systems submit each category of new and old bottles based on first-hand classification. (There are no limits on the number of old bottles remaining and new bottles purchased).
Companies applying a statistical management system may request to cancel the application if they have only a low number of old bottles handled or encounter difficulties in returning new bottles.
- The Deposit Management Organization is receiving requests from the Korean General Liquor Wholesale Association to disable the system and is conducting cancellations after monthly consideration.
- However, after disabling the system, the wholesaler shall submit each category of new and old bottles based on the first-hand classification. (If necessary, on-site inspections will be conducted)