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What is
the Korea EPR System?
EPR is short for
Extended Producer Responsibility
Act No. 6653
The Republic of Korea
(South Korea) established the Extended Producer Responsibility System
through amendments to the Act on the Promotion of Saving and Recycling
Resources.
Effective since
January 2003, the EPR system applies to a specified
list of products and packaging materials. The initial list of EPR
products included TVs, refrigerators, air conditioners, laundry machines,
personal computers, tires, lubricating oil,
metal cans, glass bottles, paper packs and plastic packaging materials (such
as PET bottles). The list of EPR products has expanded in phases, including fluorescent light bulbs and
packaging film in 2004, audio products and cellular phones in 2005, and
printers, copiers and fax machines in 2006. Legislation is pending to expand the EPR
system to include automobiles and all electrical and electronic products by
July 2007
(read more).
The EPR system is a
systematic effort to hold producers accountable for
the entire life cycle of their products by creating economic
incentives to do so. Producers pay the costs for recycling their products
and receive mandatory recycling targets that must be met. This gives
producers the incentive to design easy-to-recycle products and to reduce the
amount of waste through innovations in product design and materials use.
Under the EPR system,
producers and importers must pay for the
mandatory recycling of their products. Domestic producers with a yearly
output of less than approximately $870K (USD) and importers with imports of
less than $260K are exempt from EPR.
In September of each year,
the Ministry of Environment (MOE)
publishes the "total mandatory recycling quantity" for each EPR product,
based upon the quantity of goods or packaging materials produced, the
quantity previously recycled, and the capacity of the recycling
infrastructure.
The MOE assigns each
producer a mandatory recycling quantity
based upon market share and amount of packaging materials used. Producers
can meet their obligations by directly recycling products or by joining a
Recycling Business Mutual Aid Association.
Producers who fail to meet
their full mandatory recycling quantity must pay recycling dues to the MOE. Recycling dues reflect the actual cost
of recycling the unmet portion plus a 30% surcharge. A 5% penalty is added
if the recycling dues are not paid within 30 days of notice. Producers must
submit annual recycling plans in November and annual progress reports in
March.
Retailers
of EPR products must collect the consumer's used
products and the packaging material for the consumer's new purchase
free of charge.
EPR packaging materials,
such as metal cans, glass bottles, paper cartons and plastic, must be
clearly marked as to the material content,
whether it is plastic (PET, HDPE, LDPE, PP, PS, PVC or other), metal (steel
or aluminum), paper or glass.
This summary is intended to give you an easy-to-understand overview and does
not constitute legal advice. The actual standard in the original language
should be reviewed and used for all business, legal, and product compliance
purposes.
Should you need assistance
in assessing how South Korea's EPR system will affect your company, we stand ready
to help you. Just
email
us or give us a call at 972-679-8996 for a timely and personalized response.
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RSJ
Technical Consulting
PO Box 867705, Plano, Texas 75086
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