Local Governments That Reduce Waste Incineration and Landfill Amounts Receive Higher 'Waste Disposal Charges' Refunds

'Resource Circulation Basic Act' Enforcement Decree Amendment Approved at Cabinet Meeting
Maximum 90% Refund Rate if Incineration and Landfill Amounts Decrease; 50% if They Increase

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[Sejong=Asia Economy Reporter Joo Sang-don] From now on, local governments that reduce landfill and incineration amounts compared to the previous year will be able to receive up to a 90% refund of the waste disposal charge. This is intended to encourage waste reduction and promote recycling.

The Ministry of Environment announced that the amendment to the enforcement decree of the 'Resource Circulation Basic Act' containing these provisions was approved at the Cabinet meeting on the 24th and will be enforced starting from the 31st.

The waste disposal charge is imposed at 10 to 30 KRW per kilogram for landfill and 10 KRW for incineration. Last year, 81 billion KRW was collected, and 70% of the actual charges paid by each local government were refunded. For example, a local government that paid 10 billion KRW in waste disposal charges received 7 billion KRW back. Local governments with a special resource circulation account must use the refunded amount for related project budgets. Otherwise, it is reflected in the general account.

However, going forward, the refund rate of the disposal charge will be differentiated. Cities and provinces that reduce incineration and landfill amounts per capita compared to the previous year will receive up to 90% of the collected disposal charges back, but if the incineration and landfill amounts increase, they will receive only 50%, which is lower than before.

An official from the Ministry of Environment explained, "This amendment differentiates the refund rate of the disposal charge to encourage city and provincial governors to reduce the amount of household waste generated, minimize incineration and landfill, and promote recycling. If the amount generated itself is reduced, the burden of the waste disposal charge decreases, and the refund rate, that is, the refund percentage, increases accordingly."

Additionally, the amendment allows local governments that fail to reduce incineration and landfill amounts to have their refund rate adjusted by up to 10 percentage points depending on whether their incineration rate exceeds the national average. For example, a local government with increased incineration and landfill amounts compared to the previous year receives only 50% of the waste disposal charge refunded; however, if its incineration rate is below average, it receives an additional 10 percentage points, totaling 60%. Conversely, if the incineration rate is above average, the refund rate decreases to 40%.