The Container Deposit System Management Organization

◦ The container deposit must be included in the product price as a separate amount from the factory, import, or selling price in accordance with Article 15-2 (1) of the ‘Act on The Promotion of Saving and Recycling of Resources’.

◦ In accordance with the Enforcement Rule of the Act on the Promotion of Saving and Recycling of Resources, [Table 5] Subparagraph 2 (a) (iv), businesses subject to deposit must sort and store disposable cups returned by consumers by material, and in accordance with Subparagraph 2 (a) (v), the cups must be consigned and disposed by the designated collectors/carriers.

◦ In the case of a cashless store, you do not have to return the deposit in cash if it is informed and notified in advance that you do not handle cash. However, we advise stores to prepare cash beforehand in case they run out of cash and are unable to return the deposit.

◦ As a deposit is charged when purchasing beverages for drinking purposes, no deposit is charged when selling only empty cups.

◦ In the case of requesting an additional ice cup after purchasing a bottled product, or requesting a disposable cup to pack the remaining beverage after drinking in the store, a deposit must be paid separately by the consumer.

◦ Principally, returns are possible at any store subject to the deposit system, regardless of its business sign (brand) or the store at which the cup was purchased. However, in accordance with the 「Enforcement Rule of the Act on the Promotion of Saving and Recycling of Resources」, to reduce the work of subjecting stores in the beginning of the implementation, if the disposable cups being returned are not of the same brand as the store, the store may refuse the refund.

◦ COSMO is continuing to install out-of-store return facilities in Jeju Island and Sejong City. Out-of-store return locations can be checked on the consumer app and the center website (Disposable Cup Return Support Service - Return Collection Center | Container Deposit System Management Organization (cosmo.or.kr)), and unlimited returns are available for out of store returns.

◦ Considering the timing of collecting the deposit through product sales, the deposit (KRW 300/piece) must be paid within 5 weeks of ordering the label.

※ Additional orders can be placed within 5 weeks of the initial order. However, if the deposit is not paid within the due date, additional orders will be restricted.

※ The plan will be periodically reviewed in consideration of return rate, unreturned deposit, system operation cost, etc.

◦ Support system implementation costs

- Support deposit refund/recycling label fee (KRW 6.99/piece)

- Support card processing fee (KRW 3/piece) for deposit

※ Payment criteria: Amount of labels ordered (fees will be revoked in case of cancellation/return)

※ Provide Label order amount × 3 KRW (paid per store, quarterly)

- Support standard container handling fees (4 KRW/piece)

◦ Reducing store tasks

- Provide label dispenser products

- Provide products to aid recollections

※ Set standards that include the minimum of required functions (app for seller/own software + tablet, etc. + return stand)

- Expand out-of-store disposable cup return locations, such as return collection centers and automated return kiosks for large quantity returns

- Support costs when stores purchase an automated return kiosk

※ After the local government budget is finalized (early 2023), inquiries and information can be requested to the responsible department in the city/county/district office.

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

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

- All beverages are subject to the disposable cup deposit, with ice cream and shaved ice products being an exemption.

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

- Shakes and slush: products subject to disposable cup deposit
- Yogurt (includes yogurt (fermented beverage) that has granola, cereal, etc., in it: products subject to disposable cup deposit)
- Beverage + ice cream (includes all products that mix beverage and ice cream such as affogato (coffee + ice cream)): products subject to disposable cup deposit
- Other types of beverages (e.g., sweet rice wine, misutgaru (grain powder drink), etc.): products subject to disposable cup deposit

- Ice cream and shaved ice products: exempt

◦In accordance with [Table 5] Subparagraph 2 (a) (iii) c of the ‘Enforcement Rule of the Act on The Promotion of Saving and Recycling of Resources’, the number of cups that can be returned per person will be limited to 20* cups per day.

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