One Month Since Implementation of the 'Disposable Cup Deposit System'... Controversy Over 'Fairness' Remains

In December Last Year, Jeju and Sejong Implemented, One-Third of Stores Refused to Participate
"300 Won Price Increase Effect" Backlash

Inside a franchise coffee shop in Seoul using disposable cups. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Jong-hwa] The "Disposable Cup Deposit System (Resource Circulation Deposit System)" implemented to promote the collection, reuse, and recycling of disposable cups is struggling to gain traction.

The disposable cup deposit system requires customers ordering beverages in disposable cups at coffee shops and similar establishments to pay an additional resource circulation deposit of 300 won along with the beverage price, which is refunded upon returning the used cup.

According to the Ministry of Environment on the 2nd, about one-third of the approximately 520 stores subject to the disposable cup deposit system in Sejong and Jeju are not participating in the system. Furthermore, among the stores that are participating, there is a growing number expressing dissatisfaction due to sales declines. Accordingly, the Ministry of Environment is expected to announce on the 5th the participation status of self-employed business owners one month after the system's implementation and plans for system improvements.

The Ministry of Environment intended to implement this system nationwide at about 38,000 franchise stores starting June 10 last year. However, due to opposition from self-employed franchise owners of small and medium food and beverage businesses primarily engaged in takeout sales and the authorities' lack of preparation, the system was only partially implemented in Sejong (excluding towns and townships) and Jeju from December 2 last year. The stores subject to the deposit system are franchise stores with more than 100 locations nationwide operating in the Sejong and Jeju regions.

The problem is that even after a month since the system's implementation, opposition from franchise store owners remains, and the authorities have yet to prepare improvement measures, resulting in the system not being properly established.

Mr. Kim (41), who runs a coffee shop near the Government Sejong Complex, said, "There are two coffee shops in this shopping area, but the other one is not subject to the disposable cup deposit system. What can I say to customers who go to the other place because they find it cumbersome and annoying?" He added, "I started my business trusting the brand franchise, but it has become a hindrance. If it is to be implemented, it should be implemented together by all."

Mr. Ko (50), who operates a cafe in Seogwipo, Jeju, and refuses to participate in the disposable cup deposit system, said, "Coffee shops around here compete fiercely on price, so what do you think would happen if only our store raised the price of a cup of coffee by 300 won?" He lamented, "A sales decline is a matter of survival for self-employed business owners. Forcing participation when it causes losses is an even bigger problem."

An official from the Ministry of Environment's Disposable Products Countermeasure Promotion Team stated, "Currently, the Resource Circulation Deposit Management Center is conducting research to verify the policy effects by investigating the collection and usage amounts of disposable cups, tumbler usage, and changes in consumer behavior before and after the system's implementation. We are reviewing whether to expand the system," adding, "We expect improvement measures to be prepared in the second half of the year, and as originally announced, the system will be implemented nationwide within three years."