Disposable cup deposit system to be implemented next month, delayed by 6 months

Let the ruling party pressure the industry backlash
Ministry of Environment, implementation postponed to December 2

On the followingnoon of the 6th, an employee attaches a deposit return barcode at a demonstration of the disposable cup deposit system held at the Ediya Coffee IBK headquarters in Jung-gu, Seoul. The disposable cup deposit system will come into effect from the 10th of next month, and you can return the disposable cup directly to the store and return the deposit to the consumer app. In addition to cash, consumers can get their deposit back and transfer it to their account through the consumer app, reducing the inconvenience of carrying cash. (Joint coverage) 2022.5.6/News 1

The government has decided to postpone the introduction of the ‘disposable cup deposit system’, which was scheduled to be implemented from the 10th of next month, by six months. The franchising industry’s backlash and pressure from the politicians were unusually delayed, as the enforcement date set by the law was delayed.

The Ministry of Environment held a meeting with businesses such as franchise cafe owners on the 20th and decided to postpone the full implementation of the disposable cup deposit system until December 1. The Ministry of Environment decided to change the implementation period by starting the system on a trial basis in a small number of stores from the 10th of next month and implementing the system collectively on December 2nd for the rest of the stores through a ministerial notice.

The disposable cup deposit system is a system where you pay a deposit of 300 won when you buy a drink in a paper cup or plastic cup, and get it back when you return the cup. According to the supplementary provisions of the ‘Resource Saving and Recycling Promotion Act’ (Resource Recycling Act) amended in June 2020, it was originally scheduled to take effect on June 10. About 38,000 stores nationwide, including Starbucks, Ediya Coffee, and Lotteria, are targeted.

Ahead of the implementation of the system, franchise owners protested that the burden was too high, including the cost of purchasing the return label and additional manpower for the return operation. When the ruling party, even the people, requested a delay in the implementation of the system, the government delayed the implementation. An official from the Ministry of Environment said, “If you run a pilot operation, you can check in advance what kind of problems will occur and come up with countermeasures, so the concerns of store owners will be lessened.” The Ministry of Environment also decided to announce support measures such as label purchase costs and labor costs next week.

This measure gave franchise owners a sigh of relief. However, critics point out that it is difficult to avoid criticism that the government did not prepare properly for two years following the law was amended, and then postponed the implementation of the system due to public opposition.

Reporter Joo Ae-jin jaj@donga.com

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