Trying Again With the Failed Disposable Cup Deposit System

The government plans to revive the disposable cup deposit system starting in June 2022. This system was abolished 14 years ago after various problems emerged when it was previously implemented. It is astonishing that, instead of reflecting on a failed policy, the authorities have chosen to bring it back with added burdens on consumers and businesses.

The deposit system was in effect from 2002 to 2008, but it was abolished amid public criticism that it offered little benefit and caused great inconvenience. The reasons for its failure were clear. Not only did it do little to bring about meaningful environmental improvement, but it also imposed significant harm on both consumers and businesses. The return rate was only 37%, while the remaining 63% gave up on getting their deposits back. Consumers suffered financial losses, and businesses had to bear the brunt of consumer complaints.

The authorities seem to believe that if they can somehow force the return rate higher, the system will be judged a success. That is why the newly introduced version of the deposit system mandates that cups from one store must be returnable at another business’s store. In other words, without any concern for why the policy failed in the first place, they are pushing ahead with a stubborn policy that makes life difficult for both consumers and business owners alike.

The government says it has reintroduced the system out of a perceived need to reduce waste and strengthen resource circulation. But this is merely showmanship. A scientific analysis should first determine whether returning disposable cups is actually environmentally friendly.

Consumers will once again have to pay 300 won per disposable cup as a resource circulation deposit. Businesses, meanwhile, will be required to accept disposable cups discarded elsewhere if they are brought in. If stores become flooded with trash brought in from outside, that is not only unsanitary but also threatens consumers’ health and safety. The environmental authorities seem obsessed with administrative convenience while endangering public hygiene and safety.

Public hygiene must come first. It is wrong to sacrifice the public’s hygiene for the sake of environmental slogans. Stores must not be turned into garbage processing sites. Environmental protection requires both science and practical feasibility in daily life. Rather than enforcing regulations that sacrifice the public’s health and hygiene under the banner of environmentalism, the environmental authorities should refer to the rational systems of advanced countries.

Germany created the Pfand system, a plastic return policy, to promote recycling. Under the Pfand system, consumers receive a refund based on the number of containers they return by placing various containers—such as glass bottles, PET bottles, and cans—into automated collection machines. However, refunds are not available if the Pfand certification mark is damaged or if the empty container has been deformed to the point that it can no longer be recycled. Even so, Germany’s empty container collection system itself is also regarded as imposing burdens on the public.

If the government truly wants to collect disposable cups, it would be more reasonable to learn from Germany and install machines for returning disposable cups and similar items in public places. Unlike Germany, relying not on automated machines but on store employees is misguided. That is because those stores are not public facilities, and the government does not bear the labor and related costs involved.

Business owners now face a daunting situation. Allowing the return of disposable cups not sold in their own stores would interfere with their operations. If they must hire additional staff to handle trash returns and disposal inside the store, that would be a major burden. If the deposit system is introduced, stores will need to wash cups from other businesses when they accept them. It is also unclear how they are supposed to bear the costs of water, detergent, and labor for cleaning and managing disposable cups.

It is wrong for consumers and businesses alone to be forced to sacrifice as a result of desk-bound administration. Forcing through regulation without considering hidden costs runs counter to environmental protection. Even now, implementation of the deposit system should be halted.

Sung-no Choi

President, Center for Free Enterprise (CFE)

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Original title: 실패한 일회용 컵 보증금제 다시 실험하겠다니

Author: Sung-no Choi

Date: 2022-03-01

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=press&idx=24576