The Container Deposit System Management Organization

◦ Despite the changes in consumption patterns and its deregulation causing a rapid increase in the use of disposable cups, the rate of disposable cup collection and recycling 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 production and disposal, 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 saving and recycling valuable resources.

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

◦ In accordance with [Table 5] Subparagraph 2 (a) (iii) a in the 'Enforcement Rule of the Act on the Promotion of Saving and Recycling of Resources', if the information related to the container deposit cannot be verified because there is no container deposit mark or the barcode is damaged, the business subject to the deposit may refuse the return.

◦ If it is difficult to recognize the barcode because the label is damaged, you can manually enter the 14-digit barcode number into the POS system to recognize the deposit label.

◦ This certain method requested for review can be applied in a structure where it is possible to manage the production of all disposable cups, but because the center does not have the authority to control the disposable cup production process (e.g., assigning a unique code), it is difficult to apply the deposit mark at the production stage.

◦ 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.

◦ 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 a 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 that are 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).

◦ Disposable cup return days and times must not be specified, and the container deposit must be returned during business hours according to its return policy.

◦ Installing out-of-store return centers to reduce the burden of returns on businesses subject to deposit and improve convenience for consumers.

◦ (Cup return centers, etc.) Install disposable cup return points and return collection centers in densely populated areas to encourage consumers to return disposable cups.

※ All products can be returned regardless of brand, with no limit on the return quantity

◦ (Automated return kiosks) Promote installation in public spaces for devices that have passed the performance evaluation for kiosks (device price TBD, currently advocating for 95% of the cost to be supported).

※ In the beginning of the system implementation, a manned return center will be installed first, and after an evaluation of its cup return rate performance, etc., it will be converted to an automated return kiosk.

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

※ Retrieval support machine: Recognizes barcode information and only performs deposit refunds; storing cups must be done manually.

◦ From 2003 to 2008, about 3,500 coffee shops and 39 fast-food restaurant brands signed a voluntary agreement with the Ministry of Environment and operated the 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, thereby suppressing the use of disposable products, promoting the collection and recycling of disposable cups, and reducing 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, lack of legal basis for the system, etc.

◦ Pursuant to the disposable cup deposit system in Article 17 (3) in the ‘Enforcement Rule of the Act on the Promotion of Saving and Recycling of Resources’, businesses are subject to deposit regardless of the location and type of store, if the business type fits the criteria and exceeds the size stated in the relevant statutes.

◦ However, on December 2, 2022, Jeju-do and Sejong-si (located in the same region) took the lead, and in accordance with the ‘Designation of businesses subject to deposit for disposable cups and notification of the unit price for handling subsidies, ① stores subject to deposit with an area of less than 10m2 ② stores operating only through automated kiosks ③ stores in airport/port bonded areas ④ stores located in township areas or islands under Article 2 of the 「Island Development Promotion Act」 are excluded from the deposit system.

◦ The disposable cup deposit system applies to disposable cups only, and add-ons, such as straws and holders, are not eligible for return.

◦ In accordance with [Table 5] Subparagraph 2 (a) (iii) d in ‘Enforcement Rule of the Act on the Promotion of Saving and Recycling of Resources’, if disposable cups are returned with its lid, straw, holder, etc., the deposit subjected store may refuse to refund the consumer.