(1) Reasons for Proposal

As a follow-up measure to implement the Comprehensive Measure on Management of Recycling Waste which was announced as a joint measure of relevant Ministries, this Amendment aims to include vinyl types for which recycling business support funds are not provided on the ground that they are not subject to Extended Producer Responsibility (EPR) (even though they have been discharged and recycled along with EPR vinyl) in the list of vinyl types subject to EPR and to provide a basis for making notice of change to mandatory recycling ratio within the year, thereby improving and supplementing certain shortcomings that have surfaced in operation of the current system.

(2) Major Provisions

A. Delete the exemption provision as to regulation on the use of disposable products for the recycling of a small-scale business site (Article 8 (4) 2, deleted)

Prioritize reducing the amount of waste generated at the source level over waste collection and recycling by controlling use in the first place to fundamentally solve the waste problem and delete the relevant exemption criteria since the said provision is no longer effective with no benefit of maintaining it

B. Provide a basis for designating medical device items subject to exemption from waste charges via notice (Article 10 (2))

Amend the Enforcement Decree to resolve the problem of a lengthy time period required in adding a medical device item to those subject to exemption from waste charges by providing a basis for taking such action through a notice

C. Improve the system for granting exemptions from waste charges (Article 13)

Make amendment due to the fact that: i) under the current system, the amount of waste charges are reduced according to recycling performance results, and when the recycling ratio is over 80%, the entire amount of the waste charges is exempted, which enables certain easy-to-recycle items to exempt waste charges of other non-recyclable items; and that ii) even though products produced from recycled raw materials are discharged as waste, they are excluded from those subject to recycling and submission of plans to fulfill recycling obligations, such that factual survey is impossible, etc.

D. Clarify the standard for packing materials subject to Extended Producer Responsibility (EPR) (Article 18, subparagraph 1)

Prescribe that packing materials subject to EPR are those ‘discharged as waste’ to clarify that packing materials for business to business transactions are also subject to EPR, given the fact that the current law prescribes only packing materials of ‘final stage products’ as those subject to EPR, causing confusion over whether packing materials for business to business transactions are also subject to EPR

E. Expand the scope of vinyl type items subject to Extended Producer Responsibility (EPR) (Article 18, subparagraph 3-2, newly inserted; Article 19, attached Table 4 and attached Table 6)

Change five (5) vinyl types (air caps, clothing vinyl in laundries, etc.) collected and recycled along with vinyl packing materials subject to EPR as items subject to Extended Producer Responsibility (EPR) to address the issue that the amount eligible for subsidies for vinyl of the recycling business are less than the actual recycled amount

F. Provide a basis for notifying a change to the recycling ratio (Article 22)

Provide a basis for notifying a change to the recycling ratio to respond to a situation where waste is generated in excess of the recycling ratio due to an unexpected change in recycling conditions so that recycling businesses refuse collection due to the depletion of EPR subsidies

G. Change the standard for imposing administrative fines (attached Table 8)

Raise the administrative fines imposed on wholesale and retail businesses because the amounts imposed on wholesale and retail businesses such as supermarkets, etc., that violate the regulation on control of disposable products are lower than those imposed on other businesses such as food service businesses, spot-sale food manufacturing and processing business, etc., thereby improving fairness among industries