Announcement of Public Audit Results Requested by Green Alliance
Ministry of Environment Responsible for Single-Use Cup Deposit System Operations
The Board of Audit and Inspection (BAI) has notified the Ministry of Environment that it is responsible for the failure to fully implement the 'Disposable Cup Deposit System,' which is currently applied only in Jeju and Sejong, and has instructed it to prepare measures to expand the system nationwide.
On the 2nd, the BAI released the public audit report on the 'Suspension of the Disposable Cup Deposit System Implementation,' which was requested by the environmental group 'Green Korea United' and conducted since October last year.
While the BAI stated that it is difficult to say that the Ministry of Environment was negligent in handling the disposable cup deposit system, it pointed out that since the COVID-19 situation, which was the initial reason for business operators' opposition, has improved, the Ministry should prepare measures to expand the disposable cup deposit system nationwide in accordance with the purpose of the legal amendment.
The disposable cup deposit system requires coffee shops and other beverage sellers to charge an additional 300 won as a resource circulation deposit on top of the beverage price when selling drinks in disposable cups. The system aims to increase the recycling rate and reduce the usage of disposable cups, which exceed 2.8 billion units annually at franchise stores alone. The deposit is refunded when the cup is returned.
With the passage of the amendment to the Resource Recycling Act in May 2020, the legal basis for the system was established, and after a two-year preparation period, the Ministry of Environment planned to implement the system starting June 10 last year.
However, 21 days before the scheduled implementation, on May 20 last year, the Ministry postponed the introduction of the system to December, six months later, drawing criticism for infringing on the legislative authority of the National Assembly.
BAI Points Out "Ministry of Environment Delayed Necessary Notices for Preparation"
The BAI judged that the Ministry of Environment failed to prepare timely official notices detailing the target businesses, compliance requirements, and specific deposit-related information necessary for on-site implementation, causing difficulties for business operators in preparing for the system.
To implement the deposit system, coffee shops and others needed to reflect the deposit in product prices and prepare sufficient funds to refund the deposit. They also had to attach deposit information labels on cups, secure storage for returned cups, and enter consignment contracts with collection and transportation operators. However, the BAI pointed out that there were no official notices setting these standards.
Due to the lack of such preparations and the opposition from self-employed individuals suffering from sales declines amid COVID-19, the Ministry of Environment ultimately decided to implement the deposit system only in Jeju and Sejong starting December 2 last year.
Jeju was chosen due to severe waste generation from tourists, and Sejong because it is densely populated with public institutions, making it a priority for reducing disposable cup usage.
According to the BAI, as of September last year, out of approximately 30,000 stores nationwide subject to the deposit system, only 587 stores in Jeju and Sejong were implementing it, accounting for just 2%.
The official notice set by the Ministry of Environment in December last year states that regions other than Jeju and Sejong will apply the system on a date determined by the Minister of Environment, considering the implementation results in Jeju and Sejong within a period not exceeding three years from the notice enforcement date.
Regarding this, the BAI pointed out, "According to the current notice, it is uncertain when the disposable cup deposit system will be implemented nationwide."
However, the BAI acknowledged some legitimacy in the concern that the burden on small and medium-sized businesses during the COVID-19 impact in May last year was taken into account. Also, considering that the Ministry of Environment held over 300 sessions to gather stakeholder opinions, it judged that this does not amount to 'negligence in duty.'
Ministry of Environment Accepts BAI Public Audit Results and Prepares Specific Measures
Meanwhile, the Ministry of Environment stated that it accepts the BAI's public audit results and will review specific details.
A Ministry of Environment official told Yonhap News on the 2nd, "We will review the audit results and prepare (plans for nationwide expansion)." He added, "According to the current notice, the system is to be implemented nationwide within three years."
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