From Plastic Cup Ban to Disposable Cup Deposit System... Controversy Over Effectiveness [Reversing Distribution Regulations]

⑥Double Hardship for the Food Service Industry Hit Hard by Social Distancing

At Least 2.3 Billion Plastic Cups Annually Subject to Deposit System
Industry: "Cleaning and Additional Costs Incurred but Sacrificed Without Compensation"
"Requesting Postponement Considering Pandemic Like Advanced Countries Abroad"

A coffee shop located in a government office building in Seoul has a large stack of plastic cups inside the store. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Moon Hyewon] As various types of waste, including plastic, increase exponentially, environmental regulations are being implemented one after another. Household waste, which amounts to tens of millions of tons annually, is emerging as a major cause of global warming and environmental destruction, becoming a target for regulation. While companies, consumers, and the government all agree on the need for some level of regulation, their views differ on the specific details and measures. In particular, the food service industry, which has been hit hard in sales over the past two years due to social distancing guidelines, is strongly opposed as the cost burden increases in response to the flood of environmental regulations.

According to the Ministry of Environment and the food service industry on the 17th, starting from the 10th of next month, cafes, coffee shops, fast food outlets, ice cream and bingsu stores, and other food and beverage franchises with more than 100 stores will have to pay a resource circulation deposit of 300 KRW per plastic or paper disposable cup used in their stores. If consumers return the cup to the store where they purchased it, the store must refund the deposit in full.

The Ministry of Environment estimates that 2.8 billion disposable cups are used and discarded annually in Korea, of which at least 2.3 billion will be subject to the deposit system. By implementing the deposit system and recovering more than 1.8 billion cups (80%), recycling them for medical manufacturing and other uses, incineration costs can be reduced, greenhouse gas emissions cut by 66%, and an annual benefit of 44.5 billion KRW is expected.

However, a controversial aspect of this system is that “disposable cups can be returned to places other than the store that sold the product.” From the business owners’ perspective, allowing the return of disposable cups not sold at their own store could interfere with their operations. Another issue pointed out by the industry is that there is no separate compensation for self-employed business owners who incur additional costs such as water bills, detergent expenses, and labor costs for washing the cups after collection.

Ultimately, there are self-deprecating voices saying that stores located in areas with high foot traffic could become dumping grounds for deposit-return cups. Their criticism is that there is no compensation for self-employed participants in the system, only demands for sacrifice.

Due to the prolonged COVID-19 pandemic, the use of disposable products has surged, and recently, some delivery-focused restaurants and cafes have become problematic. Applying regulations indiscriminately to all stores regardless of their target raises issues of fairness.

Looking at overseas cases, even though there is social consensus on the necessity of environmental issues similar to Korea, practical problems often lead to postponement of regulations.

In the United States, major cities such as Washington D.C., Seattle, and San Francisco enacted laws banning vinyl and plastic straws around the end of 2019, but implementation was temporarily delayed due to the worsening COVID-19 situation to reduce virus transmission and infection risks. Italy planned to implement a plastic tax introduced in 2020 last July but postponed it due to COVID-19. The UK also delayed the ban on disposable plastic items such as straws and cotton swabs, originally scheduled for April 2020, by six months and reduced the scale of implementation compared to the initial plan.

A franchise industry official stated, “Pushing the regulation without including support for water bills, detergent costs, and labor expenses for washing and management in the amendment is nothing but ‘desk administration.’ Since advanced countries overseas are easing or adjusting the pace of environmental regulations in response to the unprecedented pandemic and changes in the industry environment, it would be good if the government listens to the difficulties of self-employed business owners and carefully supplements the system.”