ENFORCEMENT DECREE OF THE ACT ON THE PROMOTION OF SAVING AND RECYCLING OF RESOURCES

ENFORCEMENT DECREE OF THE ACT ON THE PROMOTION OF SAVING AND RECYCLING OF RESOURCES

Reproduced from statutes of Republic of Korea Copyright 1997 by the Korea Legislation Research Institute, Seoul, Korea ENFORCEMENT DECREE OF THE ACT ON THE PROMOTION OF SAVING AND RECYCLING OF RESOURCES Wholly Amended by Presidential Decree No. 17808, Dec. 18, 2002 Amended by Presidential Decree No. 18039, Jun. 30, 2003 Presidential Decree No. 18267, Jan. 29, 2004 Presidential Decree No. 18312, Mar. 17, 2004 Presidential Decree No. 18428, Jun. 11, 2004 Presidential Decree No. 18442, Jun. 25, 2004 Presidential Decree No. 18593, Nov. 30, 2004 Presidential Decree No. 18611, Dec. 30, 2004 Presidential Decree No. 18863, Jun. 13, 2005 Presidential Decree No. 19006, Aug. 17, 2005 Presidential Decree No. 19204, Dec. 28, 2005 Presidential Decree No. 19487, May 25, 2006 Presidential Decree No. 19494, May 30. 2006 Presidential Decree No. 19572, Jun. 29, 2006 Presidential Decree No. 19971, Mar. 27, 2007 Presidential Decree No. 20088, Jun. 11, 2007 Presidential Decree No. 20244, Sep. 6, 2007 Presidential Decree No. 20290, Sep. 27, 2007 Presidential Decree No. 20479, Dec. 28, 2007 Presidential Decree No. 20905, Jul. 3, 2008 Article 1 (Purpose) The purpose of this Decree is to provide for the matters delegated under the Act on the Promotion of Saving and Recycling of Resources and other matters needed to implement such delegated matters. <Amended by Presidential Decree No. 19006, Aug. 17, 2005> Article 2 Deleted. <by Presidential Decree No. 20479, Dec. 28, 2007> Article 3 (Designated By-Products) The designated by-products provided for in subparagraph 4 of Article 2 of the Act on the Promotion of Saving and Recycling of Resources (hereinafter referred to as the Act ) shall be as follows: <Amended by Presidential Decree No. 20479, Dec. 28, 2007> 1. Steel slag; 2. Coal cinders; and 3. Deleted. <by Presidential Decree No. 20479, Dec. 28, 2007> Article 4 (Recycling Industry) The recycling industry provided for in subparagraph 7 of Article 2 of the Act shall be as follows: 1. The type of business run to manufacture recycled goods under subparagraph 5 of Article 2 of the Act; 2. The type of business that falls under Article 31 (1) 2, 4, and 5 of the Act; 3. The type of business run to collect and transport recyclable resources for the purpose of recycling them or supply recyclable resources to recyclers after going through the intermediate process of compressing, crushing and melting, etc.; and 4. Other type of business that falls under the type of business run for the purpose of recycling recyclable resources, which the Minister of Environment deems necessary and publishes after consulting with the heads of relevant central administrative agencies thereabout. Article 4-2 (Kinds of Bulky Wastes) 780

Ⅵ. Waste Management 7. Enforcement Decree of the Act on the Promotion of Saving and Recycling of Resources The bulky wastes provided for in the provisions of subparagraph 8-2 of Article 2 of the Act mean household electric appliances, furniture, living supplies, machinery and materials used for clerical services, air conditioners, etc. which are wastes dumped from houses and business places and possible to weigh individually and identify the name of goods, and other wastes that are difficult to be contained in waste bags, and the specific subjects thereof shall be determined by the Municipal Ordinance of the Si/Gun/Gu. [This Article Newly Inserted by Presidential Decree No. 19572, Jun. 29, 2006] Article 5 (Disposable Goods) The disposable goods provided for in subparagraph 10 of Article 2 of the Act shall be as shown in the attached Table 1. Article 6 (Development of Basic Plan for Recycling Resources) (1) Matters to be contained in the basic plan for recycling resources (hereinafter referred to as the basic plan ) provided for in Article 7 (2) 4 of the Act shall be as follows: 1. Matters concerning phased measures and business projects for facilitating the recycling of resources; and 2. Other matters that are deemed necessary for facilitating the recycling of resources by the Minister of Environment. (2) The heads of relevant central administrative agencies, the Special Metropolitan City Mayor, the Metropolitan City Mayor or the Do governor (hereinafter referred to as the Mayor/Do governor ) shall each develop an annual implementation schedule (hereinafter referred to as an implementation schedule ) for the basic plan for recycling resources in accordance with Article 7 (3) of the Act and notify the Minister of Environment of such implementation schedule by the end of March each year. <Amended by Presidential Decree No. 18442, Jun. 25, 2004> (3) The implementation schedule shall contain matters falling under each of the following subparagraphs: <Amended by Presidential Decree No. 18442, Jun. 25, 2004> 1. A detailed implementation schedule of the relevant year with respect to implementation matters by agency, which is specified in the basic plan; 2. Record and analysis of the recycling of resources during the previous year; 3. Recycling conditions, such as the occurrence of wastes and the state of their recycling, etc. by jurisdictional field or jurisdictional area during the previous year; and 4. Raising of funds and investment plan for realizing the target for the recycling of resources by jurisdictional field or jurisdictional area. (4) The Minister of Environment shall, when he deems it necessary to develop the implementation schedule, establish a basic guideline for developing such implementation schedule and notify the heads of central administrative agencies and the Mayor/Do governor of such basic guideline. (5) The head of Si/Gun/Gu (referring to an autonomous Gu; hereinafter the same shall apply) shall establish a plan for recycling resources under Article 7 (4) of the Act and submit it to the Mayor/Do governor by the end of February each year. <Newly Inserted by Presidential Decree No. 18442, Jun. 25, 2004> (6) A plan for recycling resources shall include the following: <Newly Inserted by Presidential Decree No. 18442, Jun. 25, 2004> 1. A detailed implementation schedule of the relevant year for the recycling of resources; 2. Record and analysis of the recycling of resources during the previous year; 3. Recycling conditions, such as the occurrence of wastes and the state of their recycling, etc. within the jurisdictional area concerned during the previous year; and 4. Raising of funds and investment plan for realizing the target for the recycling of resources within 781

Reproduced from statutes of Republic of Korea Copyright 1997 by the Korea Legislation Research Institute, Seoul, Korea the jurisdictional area concerned. (7) The Mayor/Do governor shall, when he deems it necessary to develop a plan for recycling resources, establish a basic guideline for developing such a plan and notify the head of Si/Gun/Gu of such basic guideline. <Newly Inserted by Presidential Decree No. 18442, Jun. 25, 2004> Article 7 (Goods Required to Be in Conformity with Standards for Quality of Packaging Materials and Packaging Methods, etc.) (1) Goods required to be in conformity with standards for the quality of packaging materials provided for in Article 9 (1) 1 of the Act shall be all goods which use packaging materials. (2) Goods required to be in conformity with standards for packaging methods provided for in Article 9 (1) 1 of the Act shall be as follows: <Amended by Presidential Decree No. 18593, Nov. 30, 2004; Presidential Decree No. 19006, Aug. 17, 2005> 1. Foodstuffs: Processed foods, beverages, liquors, confectionery and functional foods for health (referring to functional foods for health as referred to in subparagraph 1 of Article 3 of the Functional Foods for Health Act; hereinafter the same shall apply); 2. Cosmetics (including air freshener); 3. Detergents; 4. Sundry articles: Toys, dolls, stationary and personal miscellaneous articles (limited to wallets and belts); 5. Non-pharmaceutical products; 6. Garments: Shirts and underwear; and 7. Integrated goods (referring to those packaged together with the goods of minimum sale unit which are packaged not less than once, and the goods of the same kind or different kind of goods which are packaged not less than once): Primary foods, processed foods, beverages, liquors, confectionery, functional foods for health, cosmetics, detergents and personal miscellaneous articles. (3) Goods required to be in conformity with standards for the annual reduction of packaging materials made of synthetic resins provided for in Article 9 (1) 2 of the Act shall be as follows: <Amended by Presidential Decree No. 19006, Aug. 17, 2005; Presidential Decree No. 20290, Sep. 27, 2007; Presidential Decree No. 20479, Dec. 28, 2007> 1. Eggs produced at a poultry farm required to file a report in accordance with Article 8 of the Enforcement Decree of the Act on the Management and Use of Livestock Excreta; 2. Apples and pears which are traded at any agricultural and fishery products wholesale market, any agricultural and fishery products joint market, any private agricultural and fishery products wholesale market and any integrated distribution center of agricultural and fishery products provided for in Article 2 of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products; 3. Vegitables and fruits, livestock products and marine products which are sold at any store whose area of sales room is not less than 165 square meters; 4. Noodles which are made and processed by any food manufacturing and processing factory provided for in Article 7 of the Enforcement Decree of the Food Sanitation Act; and 5. Electric appliances, audio-video appliances and information office appliances from among electric goods for which safety certifications are required to be obtained in accordance with Article 2 (3) of the Electric Appliances Safety Control Act. Article 8 (Types of Business Required to Restrain Use of Disposable Goods and Matters to be Abided by) (1) The term restaurants, public baths, department stores or other types of business prescribed by Presidential Decree in Article 10 (1) of the Act means the types of business falling under each of the following subparagraphs: <Amended by Presidential Decree No. 18267, Jan. 29, 2004; Presidential Decree 782

Ⅵ. Waste Management 7. Enforcement Decree of the Act on the Promotion of Saving and Recycling of Resources No. 18593, Nov. 30, 2004; Presidential Decree No. 19006, Aug. 17, 2005> 1. The business of institutional food service provided for in subparagraph 9 of Article 2 of the Food Sanitation Act; 2. The business of food service provided for in Article 21 (1) 3 of the Food Sanitation Act; 3. The business of manufacturing and processing food and the business of manufacturing and processing food for instant sales provided for in subparagraphs 1 and 2 of Article 7 of the Enforcement Decree of the Food Sanitation Act; 4. The business of public baths and the business of lodging with not less than 7 rooms provided for in Article 2 (1) of the Public Health Control Act; 5. Large-scale stores provided for in subparagraph 3 of Article 2 of the Distribution Industry Development Act; 6. Wholesale and retail businesses (excluding the types of businesses falling under subparagraph 5 and those publicly announced by the Minister of Environment in consideration of the quantity of disposable goods and the inevitability of the use of disposable goods) provided for in the Korean Standard Industrial Classification (hereinafter referred to as the Standard Industrial Classification ) published by the Commissioner of the Korea National Statistical Office under the Statistics Act; 7. The financial business, the insurance and pension business, the securities and futures brokerage business, the real estate rental and supply business, the advertisement agency business, other educational institutions from among the education service business, the movie industry and the performance industry provided for in the Standard Industrial Classification; and 8. Stadiums, gymnasiums and integrated sports facilities provided for in Article 2 of the Enforcement Decree of the Installation and Utilization of Sports Facilities Act. (2) Disposable goods, which operators of the types of business referred to in paragraph (1) are required to restrain their use or not to supply them free of charge, and the detailed matters to be abided by shall be prescribed by the Ordinance of the Ministry of Environment by business type. Article 9 Deleted. <by Presidential Decree No. 19971, Mar. 27, 2007> Article 10 (Items Subject to Waste Charge Imposition, Reduction or Exemption) (1) Goods, materials and containers which are subject to the imposition of costs needed to dispose of wastes therefrom (hereinafter referred to as waste charges ) which manufacturers or importers are liable to pay in accordance with Article 12 (1) of the Act, shall be as follows: <Amended by Presidential Decree No. 19006, Aug. 17, 2005; Presidential Decree No. 19572, Jun. 29, 2006; Presidential Decree No. 19971, Mar. 27, 2007> 1. Insecticides using bottles and plastic containers (excluding agrochemicals provided for in Article 2 of the Agrochemicals Control Act) and poisonous goods using metal cans, bottles and plastic containers; 2. Deleted; <by Presidential Decree No. 19572, Jun. 29, 2006> 3. Antifreeze solutions (limited to antifreeze solutions used for automobiles provided for in subparagraph 1 of Article 2 of the Automobile Management Act, vehicles provided for in the Act on the Management of Military Supplies, construction machinery provided for in Article 2 (1) 1 of the Construction Machinery Management Act and agricultural machinery provided for in subparagraph 1 of Article 2 of the Agricultural Mechanization Promotion Act); 4. Chewing gums; 5. Disposable diapers; 6. Cigarettes (excluding any cigarette which is sold at the price of not more than 200 won for a pack and any other cigarette which is exempted from the cigarette consumption tax or for which the cigarette consumption tax is refunded under Articles 231, 232 and 233-9 of the Local Tax 783

Reproduced from statutes of Republic of Korea Copyright 1997 by the Korea Legislation Research Institute, Seoul, Korea Act); and 7. Goods and packing materials thereof (refers to those in the final phase of distribution in market for sale to consumers) falling under any of the following items, which have used plastics as material: Provided, That the textile products of synthetic resin and plastic containers referred to in subparagraph 1 shall be excluded: (a) Goods and packing materials thereof manufactured by a person who runs a manufacturing business referred to in Table 1-2; (b) Packing materials of the goods manufactured by a person who runs a manufacturing business other than those referred to in Table 1-2; or (c) Goods and packing materials thereof imported by a wholesaler and retailer. (2) Goods, materials and containers falling under any of the following subparagraphs shall be excluded from the imposition of waste charges, notwithstanding paragraph (1): <Amended by Presidential Decree No. 19006, Aug. 17, 2005; Presidential Decree No. 19971, Mar. 27, 2007; Presidential Decree No. 20479, Dec. 28, 2007> 1. Goods, materials and containers that are made or imported by any manufacturer or any importer for the purpose of exporting them; 2. Samples of goods, materials and containers that are imported by any research institution or any organization provided for in Article 7 (1) of the Technology Development Promotion Act for the purpose of research; or 3. Plastic goods and packing materials thereof that are provided for in paragraph (1) 7 and fall under any of the following items: (a) Goods made by a manufacturer whose annual sales are less than 1 billion won; (b) Goods imported by an importer at less than $9,000; (c) Goods and packing materials thereof manufactured by a manufacturer whose plastic usage is 10,000 kilograms or less a year; (d) Imported goods and packing materials thereof that contain 100 kilograms or less of plastics; (e) Goods falling under any of the followings by which the owner is put under an obligation as he/she acquires, keeps, utilizes and discards the goods: (ⅰ) Automobiles (excluding two-wheeled vehicles) pursuant to subparagraph 1 of Article 2 of the Automobile Management Act; (ⅱ) Automobiles obtained pursuant to Article 11 of the Act on the Management of Military Supplies; (ⅲ) Construction machinery pursuant to Article 2 (1) 1 of the Construction Machinery Management Act; (ⅳ) Korean ships pursuant to Article 2 of the Ship Act; (ⅴ) Fishing vessels pursuant to Article 2 (1) of the Fishing Vessels Act; (ⅵ) Aircraft registered pursuant to Article 3 of the Aviation Act; or (ⅶ) Railroad cars managed by a business operator who has obtained authorization pursuant to Article 5 of the Railroad Enterprise Act; or (f) Goods and packing materials thereof manufactured by a manufacturer or importer (including organizations of business operators) who has performed a voluntary agreement, defining the method of performance pursuant to Articles 17 through 19 of the Act on the collection and recycling of wastes, with the Minister of Environment. 784

Ⅵ. Waste Management 7. Enforcement Decree of the Act on the Promotion of Saving and Recycling of Resources (3) When the importer or manufacturer does not fall under any of items (a) through (d) of paragraph (2) 3, he/she may get reduction and exemption of an amount corresponding to any of the following subparagraphs: <Newly Inserted by Presidential Decree No. 19971, Mar. 27, 2007> 1. Waste charge corresponding to the input of plastics for 1 billion won of annual sales or for U$ 9,000 of annual import. In this case, the input of plastics shall be calculated in accordance with the formula stipulated by Ordinance of the Ministry of Environment; or 2. Waste charge corresponding to 10,000 kilograms of annual quantity consumed or 100 kilograms of plastics contained in the imported goods. Article 11 (Standards for Calculating Waste Charges) The standards for calculating waste charges that manufacturers or importers are liable to pay in accordance with Article 12 of the Act shall be as shown in the attached Table 2. Article 12 (Calculation and Imposition, etc. of Waste Charges Paid by Manufacturers) (1) Manufacturers who are liable to pay waste charges in accordance with Article 12 (1) of the Act shall submit materials pertaining to the delivery record of goods during the previous year to the Minister of Environment by the end of March each year under the conditions as prescribed by Ordinance of the Ministry of Environment. (2) The Minister of Environment shall calculate the amount of waste charges by multiplying the amount obtained from applying the standards for calculation in Table 2 to the record of shipments received pursuant to paragraph (1) by the charge calculation index. <Amended by Presidential Decree No. 19971, Mar. 27, 2007> (3) The charge calculation index under paragraph (2) shall be obtained by setting the first year applied as 1, and then every year, the charge calculation index of the previous year shall be multiplied by the price fluctuation index announced by the Minister of Environment in consideration of inflation rate, etc. of the previous year: Provided, That for the case of Article 10 (1) 4, the charge calculation index shall be 1. <Newly Inserted by Presidential Decree No. 19971, Mar. 27, 2007> (4) The Minister of Environment shall serve a written notice demanding the payment of waste charges calculated in accordance with paragraph (2) to each of the relevant manufacturers by the end of April each year under the conditions as prescribed by Ordinance of the Ministry of Environment. In this case, the waste charges may be allowed to be paid quarterly in installments under the conditions as prescribed by Ordinance of the Ministry of Environment. (5) Any manufacturer who receives the written notice demanding the payment of waste charges referred to in paragraph (3) shall pay the waste charges by May 20 of the current year: Provided, That a manufacturer who pays the waste charges in installments under the latter part of paragraph (3) shall pay the waste charges quarterly by the time limit prescribed by Ordinance of the Ministry of Environment. Article 13 (Calculation and Imposition, etc. of Waste Charges Paid by Importers) (1) Waste charges that an importer is liable to pay pursuant to Article 12 (1) of the Act shall be calculated by multiplying the amount, obtained by applying the calculation standards in Table 2, by the charge calculation index in Article 12 (3). <Amended by Presidential Decree No. 19971, Mar. 27, 2007> (2) When any importer intends to import goods, materials and containers subject to the payment of waste charges, he shall pay the waste charges after getting confirmation from the Minister of Environment about whether they are subject to the payment of waste charges under the conditions as prescribed by Ordinance of the Ministry of Environment: Provided, That where Ordinance of the Ministry of Environment prescribes, the waste charges may be paid after getting confirmation from the Minister of Environment about whether such goods, materials and containers are subject to the 785

Reproduced from statutes of Republic of Korea Copyright 1997 by the Korea Legislation Research Institute, Seoul, Korea payment of waste charges each month. Article 14 (Procedures for Settlement of Waste Charges Paid by Importers) When any importer fails to import goods, materials and containers in whole or in part which are subject to the payment of waste charges on the unavoidable grounds after getting the confirmation provided for in Article 13 (2) or he exports them, the Minister of Environment shall refund the relevant waste charges to the relevant importer at the latter s request within 14 days from the date of request under the conditions as prescribed by Ordinance of the Ministry of Environment. Article 14-2 (Delivery of Collection Expenses) (1) Where the Minister of Environment commissions the work of collecting waste charges or additional charges to the Korea Environment and Resources Corporation prescribed by the Korea Environment and Resources Corporation Act (hereinafter referred to as the Korea Environment and Resources Corporation ) pursuant to the provisions of Article 12 (6) of the Act, the Minister of Environment shall deliver the amount equivalent to 10/100 of the waste charges and additional charges collected by the Korea Environment and Resources Corporation to the said corporation as its collection expenses. (2) The Minister of Environment shall calculate the collection expenses referred to in the provisions of paragraph (1) every month from among the waste charges and additional charges paid into the special account for the environmental improvement prescribed by the Act on Special Accounts for Environmental Improvement and pay the collection expenses to the Korea Environment and Resources Corporation by the end of the next month. [This Article Newly Inserted by Presidential Decree No. 19572, Jun. 29, 2006] Article 15 (Check of Delivery Records of Goods, etc.) (1) In the case falling under any of the following subparagraphs, the Minister of Environment may have the public officials under his control check and ascertain the delivery records of goods by manufacturers and the import records by importers, etc. in accordance with Article 36 of the Act: 1. Where any manufacturer fails to submit the material pertaining to the delivery record of his goods under Article 12 (1); 2. Where any importer fails to pay the waste charges, or to get confirmation about whether his imported goods are subject to the payment of waste charges under Article 13 (2); and 3. Where the amount of paid waste charges is different from the amount of waste charges that has to be paid or the Minister of Environment deems it necessary to check and ascertain the delivery records of goods. (2) Where a manufacturer or importer has yet to pay the waste charges or the amount of the waste charges paid falls short of the amount of the waste charges that the manufacturer or importer is liable to paid as a result of the check and ascertainment referred to in paragraph (1), the Minister of Environment shall serve a notice to the manufacturer or importer that the latter shall pay the unpaid waste charges or the difference. In this case, the unpaid waste charges and the difference shall be calculated by applying mutatis mutandis the provisions of Article 12 (2) or 13 (1) and their payment period shall be a period of 20 days from the date on which the payment notice is served. Article 15-2 (Establishment of Recycling Centers and Facility Standards) Where the head of Si/Gun/Gu sets up a recycling center pursuant to the provisions of Article 13-2 (6) of the Act, he shall set up such center according to the standards falling under each of the following subparagraphs: Provided, That in the case of the Gun that does not have a city of not less than 30,000 population, such Gun may not abide by the said standards: 1. The total area of the floor of the recycling center for displaying used goods shall be not less than 150 square meters; 786

Ⅵ. Waste Management 7. Enforcement Decree of the Act on the Promotion of Saving and Recycling of Resources 2. The work space shall be secured for repairing used goods, etc.; 3. Not less than one warehouse shall be separately built in order to keep used goods in custody, which are not displayed; 4. The resting space shall be secured for persons in charge of the operation and management of the recycling center or visitors in the space where used goods are displayed; 5. Nor less than one vehicle shall be operated to transport and remove used goods; and 6. Persons in charge of exchanging and selling used goods, persons in charge of repairing used goods and persons in charge of removing and transporting used goods shall each be employed. [This Article Newly Inserted by Presidential Decree No. 19572, Jun. 29, 2006] Article 16 (Goods and Packaging Materials Marked with Separation and Discharge Sign) The term goods and packaging materials prescribed by Presidential Decree in Article 14 of the Act means the goods and packaging materials falling under each of the following subparagraphs: 1. Packaging materials provided for in subparagraphs 1 and 2 of Article 18: Provided, That containers of goods that include security deposit on empty container under Article 22 of the Act shall be excluded; and 2. Other goods and packaging materials that are manufactured using papers, metals, glass and plastic materials, and designated by the Minister of Environment under the conditions as prescribed by Ordinance of the Ministry of Environment. Article 17 (Scope of Waste Dischargers) (1) The term person prescribed by Presidential Decree in Article 15 (1) of the Act means the person who discharges wastes while carrying out business activities (excluding the designated wastes; hereinafter the same shall apply) and falls under any of the following subparagraphs: 1. The owner, occupant or manager of a building whose total floor area of each story is not less than 1,000 square meters; and 2. The owner, occupant or manager of a land that discharges an average of not less than 300 kilograms of wastes per day or discharges not less than 5 tons of wastes due to a series of construction works and other works, etc. (2) In applying paragraph (1), two or more neighboring buildings owned by the same person shall be deemed the same building. Article 18 (Goods and Packaging Materials Subject to Mandatory Recycling) The term goods and packaging materials prescribed by Presidential Decree in Article 16 (1) of the Act means such goods and packaging materials falling under each of the following subparagraphs: Provided, That goods and packaging materials manufactured or imported by manufacturers or importers for the purpose of exporting them, and samples of goods and packaging materials for research and those returned and disposed as waste, imported by research institutions or organizations provided for in Article 7 (1) of the Technology Development Promotion Act for the purpose of research shall be excluded: <Amended by Presidential Decree No. 18593, Nov. 30, 2004; Presidential Decree No. 19006, Aug. 17, 2005; Presidential Decree No. 19204, Dec. 28, 2005; Presidential Decree No. 19572, Jun. 29, 2006; Presidential Decree No. 20479, Dec. 28, 2007> 1. Paper packs (limited to paper packs that are coated and pasted with synthetic resins or aluminium leaves), glass bottles, metal cans and packaging materials made of synthetic resins (including containers, packaging materials with the type of film or sheet, and tray) which are all used to package the goods falling under each of the following items: (a) Food stuffs (referring to the food on the code of food, etc. provided for in Article 12 of the Food Sanitation Act, the functional foods for health on the code of functional foods for health provided for in Article 19 of the Functional Foods for Health Act, the processed meat, processed 787

Reproduced from statutes of Republic of Korea Copyright 1997 by the Korea Legislation Research Institute, Seoul, Korea milk products and processed egg products provided for in subparagraphs 7 through 9 of Article 2 of the Processing of Livestock Products Act, and drinking spring water provided for in subparagraph 3 of Article 3 of the Management of Drinking Water Act); (b) Agricultural, fishery and livestock products (limited to the primary products except the foodstuffs of item (a)); (c) Detergents (referring to toothpaste and soaps under the Standard Industrial Classification, and soaps and detergents that are made by other detergent manufacturing industry); (d) Cosmetics prescribed by the Cosmetics Act and shampoo and rinse used for pet animals; (e) Medicines and non-pharmaceutical products under the Pharmaceutical Affairs Act (excluding vial-, ampoule-, Press Through Package (PTP)-packaged goods whose content quantity is not more than 30 milliliters or 30 grams, goods which are not in bottle shape and whose content quantity is not more than 30 millimeters or 30 grams, and medical supplies for external diagnoses and those disposed as medical waste); (f) Butane gas goods; and (g) Insecticides and germicides (referring to the insecticides and germicides that are made by the manufacturing industry of insecticides and germicides for home under the Standard Industrial Classification, but excluding agrochemicals prescribed by Article 2 of the Agrochemicals Control Act); 2. Packaging materials made from foam synthetic resin used as cushioning materials for electrical equipments, audio-and video-applied equipments, information and office equipments and personal computers (including monitors and keyboards) from among the electric appliances subject to safety certification under Article 2 (3) of the Electric Appliances Safety Control Act; 3. Batteries falling under each of the following items (including batteries which are installed inside or are used as parts of the goods in the attached Table 3): (a) Mercury batteries; (b) Oxidizing silver batteries; (c) Nickel-cadmium batteries; (d) Lithium batteries (limited to primary batteries); (e) Manganese batteries and alkaline manganese batteries; and (f) Nickel-hydrogen batteries; 4. Tires used for the equipment falling under each of the following items: (a) Automobiles provided for in subparagraph 1 of Article 2 of the Automobile Management Act; (b) Vehicles provided for in the Act on the Management of Military Supplies; (c) Construction machinery provided for in Article 2 (1) 1 of the Construction Machinery Management Act; and (d) Agricultural machinery provided for in subparagraph 1 of Article 2 of the Agricultural Mechanization Promotion Act; 5. Lubricating oil used for the equipment falling under each of the following items: (a) Automobiles provided for in the provisions of subparagraph 1 of Article 2 of the Automobile Management Act (excluding any two-wheeled automobile installed with an engine that is functioned by one stroke of crank shaft instead of 4 strokes of inhalation, compression, explosion and exhaustion); (b) Vehicles provided for in the Act on the Management of Military Supplies; (c) Construction machinery provided for in Article 2 (1) 1 of the Construction Machinery Management Act; 788

Ⅵ. Waste Management 7. Enforcement Decree of the Act on the Promotion of Saving and Recycling of Resources (d) Agricultural machinery provided for in subparagraph 1 of Article 2 of the Agricultural Mechanization Promotion Act; (e) Korean ships (excluding ships for overseas service) prescribed by Article 2 of the Ship Act; and (f) Fishing vessels (excluding deep-sea fishing vessels) prescribed by Article 2 (1) of the Fishing Vessels Act; 6. Deleted; <by Presidential Decree No. 20479, Dec. 28, 2007> 7. Fluorescent lamps (including half-finished lamps used to make mercurial fluorescent lamps); and 8. Other goods and packaging materials which producers intend to recycle through a producers organization and the Minister of Environment approves. Article 19 (Producer Liable to Recycle Packaging Materials) Any producer liable to recycle packaging materials under Article 16 (1) of the Act shall be the person who runs the place of business, the type and scale of which are specified in the attached Table 4. Article 20 (Entrustment of Recycling) Producers liable to recycle wastes, or any recycling business mutual aid associations under Article 27 of the Act (hereinafter referred to as mutual aid association ) may entrust such trustees falling under any of the following subparagraphs with recycling goods and packaging materials as prescribed by Article 16 (2): 1. Companies producing recycled products; 2. Designated recycling business operators under Article 23 (1) of the Act (hereinafter referred to as a designated recycling business operators); 3. Those who has a permission of partial or general treatment of waste under Article 25 (5) 2 or 4 of the Wastes Control Act; or 4. Others notified by the Minster of Environment form among those in recycling business. [This Article Newly Inserted by Presidential Decree No. 20479, Dec. 28, 2007] Article 21 (Protection of Person Entrusted with Recycling Wastes) In the event that producers liable to recycle wastes or mutual aid associations entrusts a trustee with recycling goods and packaging materials, such trustor shall work to prevent any infringement of the business sphere of small-and medium-sized enterprises protected under the Act on the Promotion of Collaborative Cooperation between Large Enterprises and Small-Medium Enterprises, properly compensate for costs required for recycling and enter into a contract by which the right and interest of the trustee with recycling the relevant goods and packaging materials are protected. <Amended by Presidential Decree No. 19006, Aug. 17, 2005; Presidential Decree No. 19494, May 30, 2006; Presidential Decree No. 20479, Dec. 28, 2007> Article 22 (Calculation, Publication, etc. of Mandatory Recycling Rate) (1) The Minister of Environment shall calculate the rate at which each producer liable to recycle wastes is required to recycle (hereinafter referred to as the mandatory recycling rate ) by goods and packaging materials in accordance with the calculation standards specified in the attached Table 5 from among the delivery quantities of goods and packaging materials (referring to import quantity in case for an importer and sales quantity in case for a distributor; hereinafter the same shall apply) as provided for in Article 17 (1) of the Act, and publish it prior to the commencement of the relevant year each year after consulting with the ministers of competent ministries. <Amended by Presidential Decree No. 18593, Nov. 30, 2004; Presidential Decree No. 19572, Jun. 29, 2006> (2) Every producer liable to recycle wastes shall submit the data on delivery quantities of goods and packaging materials from the previous year to the Minister of Environment by April 15 each year, as prescribed by Ordinance of the Ministry of Environment: Provided, That the same shall not apply 789

Reproduced from statutes of Republic of Korea Copyright 1997 by the Korea Legislation Research Institute, Seoul, Korea to a producer liable to recycle wastes who includes security deposit on empty container in the prices of goods under Article 22 of the Act. <Amended by Presidential Decree No. 18593, Nov. 30, 2004; Presidential Decree No. 20479, Dec. 28, 2007> (3) The Minister of Environment shall announce a long-term target recycling rate every 5 years and reflect it in the mandatory recycling rate under paragraph (1) for a producer liable to recycle wastes to promote collection and recycling through a collection system in the process of production or distribution of goods and packaging materials. <Newly Inserted by Presidential Decree No. 20479, Dec. 28, 2007> (4) Where a long-term target recycling rate under paragraph (3) needs to be adjusted due to changes in recycling conditions, the Minister of Environment may change such long-term target recycling rate and announce it. <Newly Inserted by Presidential Decree No. 20479, Dec. 28, 2007> Article 23 (Mandatory Recycling Quantity by Producer Liable to Recycle Wastes) (1) The mandatory recycling quantity by a producer liable to recycle wastes (hereinafter referred to as the mandatory recycling quantity ) under Article 17 (2) of the Act shall be a quantity calculated according to the following formula: <Amended by Presidential Decree No. 18593, Nov. 30, 2004> Mandatory recycling rate by goods and packaging materials under Article 22 (1) Delivery quantity of goods and packaging materials of the producer liable to recycle wastes in the relevant year. (2) With respect to any empty container on which a security deposit on empty container is included in the prices of goods in accordance with Article 22 of the Act from among goods and packaging materials subject to the mandatory recycling under Article 18, notwithstanding paragraph (1), the producer liable to recycle wastes shall make a quantity equivalent to 80 percent of the container capacity used for the goods during the relevant year a mandatory recycling quantity. Article 24 (Submission of Plan for Meeting Recycling Obligations) (1) Every producer liable to recycle wastes or mutual aid association shall submit a plan for meeting recycling obligations, accompanied by documents as prescribed by Ordinance of the Ministry of Environment, to the Minister of Environment by the end of January of the relevant year in accordance with Article 18 (1) or 29 (2) of the Act: Provided, That a producer liable to recycle wastes may submit such plan within 30 days (by December 31 in case for a delivery or an import made for the first time after December 1) from the delivery date or the import declaration date (referring to the date of import declaration made for the first time under Articles 241 and 244 of the Customs Act) of goods and packaging materials made for the first time in the relevant year. <Amended by Presidential Decree No. 18593, Nov. 30, 2004; Presidential Decree No. 19006, Aug. 17, 2005> (2) Deleted. <by Presidential Decree No. 20479, Dec. 28, 2007> Article 25 (Approval of Plan for Meeting Recycling Obligations) (1) The Minister of Environment shall, upon receiving the plan for meeting recycling obligations submitted in accordance with Article 24, determine whether to approve such plan within 30 days from the date of receipt. The Minister of Environment shall, if he approves the plan, deliver a written approval statement and if he disapproves, notify the relevant producer liable to recycle wastes or the mutual aid association of his intention of not to grant approval therefor and the grounds thereof. (2) The producer liable to recycle wastes or the mutual aid association shall, upon receiving notice from the Minister of Environment that the Minister disapproves his or its plan for meeting recycling obligations submitted under paragraph (1), supplement the plan and submit the supplemented plan again to the Minister of Environment within 20 days from the date of receipt. (3) In the event that the producer liable to recycle wastes or the mutual aid association alters any important matter prescribed by Ordinance of the Ministry of Environment from among the contents of the approved plan for meeting recycling obligations, the producer liable to recycle wastes or 790

Ⅵ. Waste Management 7. Enforcement Decree of the Act on the Promotion of Saving and Recycling of Resources the mutual aid association shall submit an altered plan for meeting recycling obligations, accompanied by an evidential document, to the Minister of Environment within 30 days from the date of alteration. Article 26 (Submission of Report on Record of Meeting Recycling Obligations) Any producer liable to recycle wastes or the mutual aid association that obtains approval for the plan for meeting recycling obligations under Article 25 shall submit a report on the record of meeting recycling obligations, accompanied by documents prescribed by Ordinance of the Ministry of Environment, to the Minister of Environment by April 30 next year under Article 18 (2) or 29 (2) of the Act. <Amended by Presidential Decree No. 20479, Dec. 28, 2007> Article 27 (Recycling Cost) (1) The cost needed to recycle wastes (hereinafter referred to as the recycling unit cost ) that is the basis for calculating the recycling dues provided for in Article 19 of the Act shall be an amount obtained by multiplying the recycling cost calculation index published by the Minister of Environment by the recycling standard cost as shown in the attached Table 6. (2) The recycling cost calculation index referred to in paragraph (1) shall be an amount obtained, every year, by multiplying the price fluctuation index, which is set taking into account the inflation rate of the previous year, by the recycling cost calculation index of the previous year. Article 28 (Calculation and Imposition of Recycling Dues) (1) The recycling dues prescribed by Article 19 of the Act shall be an amount obtained by adding the additional charge calculated according to the attached Table 7 to the amount calculated by multiplying the recycling unit cost by the unrecycled quantity from among the mandatory recycling quantity. (2) In the event that any producer liable to recycle wastes or the mutual aid association recycles wastes in excess of the mandatory recycling quantity, he or it may include such excess recycling quantity in the recycling record of the next year or the year after the next year. (3) In the event that any producer liable to recycle wastes and the mutual aid association fails to recycle the mandatory recycling quantity, the Minister of Environment shall put the producer and the mutual aid association on a notice that he and it should pay recycling dues calculated according to paragraph (1) by June 30 each year under the conditions as prescribed by Ordinance of the Ministry of Environment. <Amended by Presidential Decree No. 20479, Dec. 28, 2007> (4) Any person who receives a notice demanding the payment of recycling dues under paragraph (3) shall pay such recycling dues by July 20 of the relevant year. <Amended by Presidential Decree No. 20479, Dec. 28, 2007> Article 28-2 (Delivery of Expenses Necessary for Collection) (1) Where the Minister of Environment commissions the work of collecting recycling dues or additional dues to the Korea Environment and Resources Corporation in accordance with Article 19 (6) of the Act, he shall deliver the amount equivalent to 10/100 of the recycling charges and additional dues that are collected by the Korea Environment and Resources Corporation to the Korea Environment and Resources Corporation as expenses necessary to collect such charges and dues. <Amended by Presidential Decree No. 20479, Dec. 28, 2007> (2) The Minister of Environment shall calculate collection expenses referred to in the provisions of paragraph (1) every month and pay them to the Korea Environment and Resources Corporation by the end of the next month from among the recycling charges and the additional dues that are paid to the special account for environmental improvement pursuant to the Act on Special Accounts for Environmental Improvement. [This Article Newly Inserted by Presidential Decree No. 19572, Jun. 29, 2006] Article 29 (Check of Recycling Records, etc.) 791

Reproduced from statutes of Republic of Korea Copyright 1997 by the Korea Legislation Research Institute, Seoul, Korea (1) In the case falling under any of the following subparagraphs, the Minister of Environment may have his public officials in charge check and ascertain the records of delivery quantity and recycling, etc., which have been compiled by any producer liable to recycle wastes, the mutual aid association or any person entrusted with recycling, in accordance with Article 36 of the Act: 1. Where the producer liable to recycle wastes fails to submit the delivery quantity by goods and packaging materials required by Article 22 (2); 2. Where the producer liable to recycle wastes or the mutual aid association fails to submit the report on the results of the implementation of mandatory recycling; and 3. Where the recycling records submitted by the producer liable to recycle wastes or the mutual aid association in accordance with Article 26 are different from the actual recycling records or the Minister of Environment deems it necessary to check and ascertain such records. (2) In the event that any recycling dues exist that the relevant producer liable to recycle wastes or the mutual aid association has to pay or the paid amount falls short of the amount that has to be paid as a result of the check and ascertainment referred to in paragraph (1), the Minister of Environment shall put the producer liable to recycle wastes or the mutual aid association on a notice that he or it shall pay unpaid recycling dues or the difference. In this case, the unpaid recycling dues and the difference shall be calculated by applying mutatis mutandis the provisions of Article 28 (1) and the payment period thereof shall be 20 days from the date on which payment notice is served. Articles 30 and 30-2 Deleted. <by Presidential Decree No. 20479, Dec. 28, 2007> Article 31 (Containers Subject to Imposition of Security Deposit on Empty Container) The term goods prescribed by Presidential Decree in Article 22 (1) of the Act means the goods falling under each of the following subparagraphs, which use glass containers that may be repeatedly used: <Amended by Presidential Decree No. 19006, Aug. 17, 2005> 1. Liquors falling under each of the following items: (a) Fermented liquors provided for in subparagraph 2 of Article 4 of the Liquor Tax Act; and (b) Distilled liquors provided for in subparagraph 3 of Article 4 of the Liquor Tax Act; and 2. Soft drinks. Article 32 (Type of Business Involving Designated Recycling Business Operator) The term type of business prescribed by Presidential Decree in Article 23 (1) of the Act means the type of business falling under each of the following subparagraphs: 1. The business of making papers; 2. The business of making glass containers; and 3. The business of making steel and iron. Article 33 (Basic Policy, etc. on Designated Recycling Business Operators) (1) The basic policy on designated recycling business operators shall be as follows: <Amended by Presidential Decree No. 20479, Dec. 28, 2007> 1. The designated recycling business operators falling under each of the following items from among the designated recycling business operators shall be encouraged to put their business focus on the recycling plan and other designated recycling business operators than the person prescribed in the following items shall be encouraged to implement the recycling plan on a phased basis taking into account the scale of business, current recycling facilities, technical capability, recycling potential, etc.: (a) The business of making papers: Person who produces not less than 10,000 tons of papers 792

Ⅵ. Waste Management 7. Enforcement Decree of the Act on the Promotion of Saving and Recycling of Resources a year; (b) The business of making glass containers: Person who produces not less than 20,000 tons of glass containers a year; and (c) The business of making steel and iron: Person who produces not less than 100,000 tons of crude steel or pig iron; 2. Every designated recycling business operator shall comply with the utilization target rate for recyclable resources that is set in a guideline established under Article 23 (1) of the Act, efficient recycling methods and procedures, etc. taking into account the occurrence of recyclable resources, the quantity of collected recyclable resources, the domestic recycling technical levels and the characteristics of goods; 3. Every designated recycling business operator shall develop a utilization schedule to attain the utilization target rate, and compile and keep the records thereof; and 4. Every designated recycling business operator shall, in the event that he uses imported recyclable resources, work to substitute domestic recyclable resources for such imported recyclable resources. (2) The Minister of Environment and the ministers of competent ministries shall, when they set the utilization target rate of recyclable resources referred to in paragraph (1) 2, hear opinions of business organizations concerned. Article 34 Deleted. <by Presidential Decree No. 20479, Dec. 28, 2007> Article 35 (Basic Policy on Operator of Business Discharging Designated By-Products) The basic policy on the operator of business discharging designated by-products (hereinafter referred to as the operator of business discharging designated by-products ) under Article 25 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 20479, Dec. 28, 2007> 1. The person falling under each of the following items from among the operators of the business discharging by-products shall be encouraged to focus his business on recycling and any person other than the person falling under each of the following items shall also be encouraged to recycle wastes on a phased basis in a manner compatible with circumstances taking into account the scale of business, current recycling facilities, technical capability and recycling potential, etc.: (a) Steel slags: Person who produces not less than 100,000 tons of crude steel or pig iron; (b) Coal cinders: Person who supplies not less than 100 million kw of power a year; and (c) Deleted; <by Presidential Decree No. 20479, Dec. 28, 2007> 2. Every operator of business discharging designated by-products shall install and operate facilities capable of separating, crushing, screening and recycling by-products to facilitate the recycling of designated by-products and comply with the recycling plan prescribed by the guideline provided for in Article 25 (1) of the Act taking into account the character and state of designated by-products, the characteristics of discharge and domestic technical levels; 3. Every operator of business discharging designated by-products shall endeavor to facilitate the recycling of by-products by developing technology needed to recycle by-products and urging other type of business and other place of business to recycle such by-products; and 4. Every operator of business discharging designated by-products shall develop a plan for recycling designated by-products and compile and keep the records of recycling such by-products. Article 36 (Business Subject to Development of Recycling Industry) The term business designated by the Presidential Decree in Article 31 (1) 6 of the Act means the business falling under each of the following subparagraphs: 1. The recycling business falling under subparagraphs 2 through 4 of Article 4; 2. The business of selling recycled goods; and 3. The business of designing and manufacturing machinery or equipment used to manufacture goods 793