2011 Modularization of Korea’s Development Experience:

Volume-based Waste Fee System

in Korea

2012
 2011 Modularization of Korea’s Development Experience:
Volume-based Waste Fee System in Korea
2011 Modularization of Korea’s Development Experience

Volume-based Waste Fee System in Korea

Title Volume-based Waste Fee System in Korea

Supervised by Ministry of Environment (ME), Republic of Korea

Prepared by Korea Environment Institute (KEI)

Author Kwang yim Kim, Senior Research Fellow, Korea Environment

Institute (KEI)
Yoon Jung Kim, Researcher, Korea Environment Institute (KEI)

Advisory Jae-kon Shim, Representative Director, Environment&Human

Forum
Moo-kyung Shim, Director, Ministry of Environment
Mi-hwa Kim, Secretary General, Korea Zero Waste Movement
Network
June Woo Park, Professor, Sangmyung University

Research Management K
 orea Development Institute (KDI) School of Public Policy and
Management

Supported by Ministry of Strategy and Finance (MOSF), Republic of Korea

Government Publications Registration Number 11-1051000-000218-01

ISBN 978-89-93695-71-7 94320

ISBN 978-89-93695-27-4 [SET 40]

Copyright © 2012 by Ministry of Strategy and Finance, Republic of Korea

 Government Publications
Registration Number
11-1051000-000218-01

Knowledge Sharing Program

2011 Modularization of Korea’s Development Experience

Volume-based Waste Fee

System in Korea
Preface
The study of Korea’s economic and social transformation offers a unique opportunity
to better understand the factors that drive development. Within one generation, Korea
had transformed itself from a poor agrarian society to a modern industrial nation, a feat
never seen before. What makes Korea’s experience so unique is that its rapid economic
development was relatively broad-based, meaning that the fruits of Korea’s rapid growth
were shared by many. The challenge of course is unlocking the secrets behind Korea’s
rapid and broad-based development, which can offer invaluable insights and lessons and
knowledge that can be shared with the rest of the international community.
Recognizing this, the Korean Ministry of Strategy and Finance (MOSF) and the Korea
Development Institute (KDI) launched the Knowledge Sharing Program (KSP) in 2004
to share Korea’s development experience and to assist its developing country partners.
The body of work presented in this volume is part of a greater initiative launched in 2007
to systemically research and document Korea’s development experience and to deliver
standardized content as case studies. The goal of this undertaking is to offer a deeper
and wider understanding of Korea’s development experience with the hope that Korea’s
past can offer lessons for developing countries in search of sustainable and broad-based
development. This is a continuation of a multi-year undertaking to study and document
Korea’s development experience, and it builds on the 20 case studies completed in 2010.
Here, we present 40 new studies that explore various development-oriented themes such
as industrialization, energy, human capital development, government administration,
Information and Communication Technology (ICT), agricultural development, land
development and environment.
In presenting these new studies, I would like to take this opportunity to express my
gratitude to all those involved in this great undertaking. It was through their hard work and
commitment that made this possible. Foremost, I would like to thank the Ministry of Strategy
and Finance for their encouragement and full support of this project. I especially would like
to thank the KSP Executive Committee, composed of related ministries/departments, and
the various Korean research institutes, for their involvement and the invaluable role they
played in bringing this project together. I would also like to thank all the former public
officials and senior practitioners for lending their time and keen insights and expertise in
preparation of the case studies.
 Indeed, the successful completion of the case studies was made possible by the dedication
of the researchers from the public sector and academia involved in conducting the studies,
which I believe will go a long way in advancing knowledge on not only Korea’s own
development but also development in general. Lastly, I would like to express my gratitude to
Professor Joon-Kyung Kim for his stewardship of this enterprise, and to his team including
Professor Jin Park at the KDI School of Public Policy and Management, for their hard work
and dedication in successfully managing and completing this project.
As always, the views and opinions expressed by the authors in the body of work presented
here do not necessary represent those of KDI School of Public Policy and Management.

May 2012
Oh-Seok Hyun
President
KDI School of Public Policy and Management
Contents | LIST OF CHAPTERS

Summary···········································································································································17

Chapter 1
Introduction·······································································································································19

1. Volume-based Waste Fee System in Korea··················································································20

2. About Korea and Korean Waste Management·············································································21
2.1 General Information················································································································21
2.2 Economic Development and Environmental Degradation·····················································22
2.3 Waste Management Trend in Korea·······················································································23
3. Contents·········································································································································24

Chapter 2
Background of the Volume-based Waste Fee System·····································································25

1. General Background·····················································································································26
1.1 Environmental Status in 1990s·······························································································26
1.2 Socio-Economic Status in 1990s····························································································27
2. Waste Management until the 1990s·····························································································29
2.1 General Situation····················································································································29
2.2 Main Issues in Waste Problem in 1990s·················································································32
2.3 Paradigm Shift: From Maximum Treatment to Minimum Waste··········································37
3. Waste Management Framework···································································································38
3.1 Waste Law and Policy··············································································································38
3.2 Municipal Waste Management·······························································································40

06 • Volume-based Waste Fee System in Korea

 Chapter 3
Progress of the Volume-based Waste Fee System··········································································45

1. Preparation Stage··························································································································46
1.1 Feasibility Study on the Introduction of the VBWF System····················································46
1.2 Pilot Operation·························································································································47
1.3 Preparation for Nationwide Implementation·········································································50
2. Introduction Stage·························································································································53
2.1 Nationwide Implementation of the VBWF System (January. 1, 1995)···································53
2.2 Assessment of the 100 days of the VBWF System (April. 1995)············································56
2.3 Workshop of the Relevant Civil Servants (November. 1995)··················································57
3. Institutionalization stage···············································································································58
3.1 Analysis on the First Year of the VBWF System (1996)··························································58
3.2 Analysis on the Second year of the VBWF System (1997)······················································59

Contents • 07
Contents | LIST OF CHAPTERS

Chapter 4
Contents of the Volume-based Waste Fee System··········································································61

1. Outline of the Volume-based Waste Fee System·········································································62

1.1 Theoretical Background and Principles·················································································62
1.2 Operation of the Volume-based Waste Fee System·······························································64
2. Legal Base and Related Policies··································································································81
2.1 Waste Management Act··········································································································81
2.2 Waste Management Guideline (1994)·····················································································81
2.3 Supporting Policies of Volume-based Waste Fee system·····················································81
3. Administrative Structure and Sharing Roles of Government······················································84
3.1 Role of the Central Government (Ministry of Environment)··················································84
3.2 Role of Local Governments·····································································································86
3.3 Role of Civic Group··················································································································87

08 • Volume-based Waste Fee System in Korea

 Chapter 5
Performance and Improvement of Volume-based Waste Fee System············································91

1. Decrease in Generated Waste·······································································································92

1.1 Increase in Generated Waste and Increase in Recyclable materials····································94
1.2 Expansion of the Environmental Industry and Improvement of Public Awareness of the
Environment··························································································································· 95
1.3 Improvement of Public Awareness of the Environment························································95
1.4 Other Effects····························································································································95
2. Improvements································································································································96
2.1 Bio-degradable Bags··············································································································96
2.2 Responsibility for Maintaining Cleanliness············································································96
2.3 Re-usable Bags·······················································································································96
2.4 Separate Collection for Disposable Vinyl Bags······································································97
3. Model cases of Volume-based Waste Fee System·······································································98
3.1 [Case 1] Dobong-gu, Seoul·····································································································98
3.2 [Case 2] Namdong-gu, Incheon······························································································99

Contents • 09
Contents | LIST OF CHAPTERS

Chapter 6
Suggestion for Developing Country for Introduction of VBWF System·········································103

1. Suggestion for Developing Country····························································································104

1.1 For Preparation·····················································································································104
1.2 Necessary Element for Early-stage of Implementation······················································105
2. Policies that Support VBWF System in Developing Countries··················································106
2.1 Organic Waste Separation and Recycling·············································································107
2.2 Village-level VBWF System for Rural Areas·········································································108

References·······································································································································113

Appendix··········································································································································114

010 • Volume-based Waste Fee System in Korea

Contents | LIST OF TABLES

Chapter 2

Table 2-1 Main Social Indices of Korea in 1995 · ·············································································28

Table 2-2 Lifestyle of Korean and Consumers’ Awareness in 1990s···············································29
Table 2-3 Waste Generation 1990-1994····························································································32
Table 2-4 Paradigm Shift of Waste Policy as of 1990 ······································································38
Table 2-5 Concept and Classification of Waste················································································41
Table 2-6 Municipal Waste Treatment 1987-1994 ···········································································41
Table 2-7 Waste Management Budget from 1987-1995···································································44

Chapter 3

Table 3-1 Record of Resolution Made in Public Officer’s Workshop···············································57

Table 3-2 Change in Waste Generation 1994-1996··········································································60

Contents • 011
Contents | LIST OF TABLES

Chapter 4

Table 4-1 The Waste Sources and Target of VBWF System·····························································64

Table 4-2 List of Recyclable waste····································································································67
Table 4-3 Composition of VBWF Bags······························································································72
Table 4-4 Calculation of Burden of Residents, Price of Waste Bag and Sale Charge····················73
Table 4-5 Diversification of Waste Bag in 2003················································································73
Table 4-6 Trend in VBWF Bag Prices by Cities (20 Liter Bag Comparison)····································73
Table 4-7 Calculation of Financial Independence············································································76
Table 4-8 Resource Circulation Policy in 1990s···············································································81
Table 4-9 Waste Related Departments in MOE in 1995···································································85

Chapter 5

Table 5-1 Waste Generation 1994-2000····························································································92

Chapter 6

Table 6-1 Village level VBWF System progress··············································································110

Table 6-2 Collection system of Village-level VBWF System··························································111

012 • Volume-based Waste Fee System in Korea

Contents | LIST OF FIGURES

Chapter 1

Figure 1-1 Location of Korea············································································································21

Figure 1-2 GDP Growth /Per Capita GNI from 1970-2010·······························································22
Figure 1-3 Trend in Waste Management in Korea···········································································23

Chapter 2

Figure 2-1 Increase of Budget for Environmental Sector································································27

Figure 2-2 Nanjido Landfill (1990.01.11)··························································································30
Figure 2-3 Landfill Dumping in Nanjido (1990.01.11)······································································30
Figure 2-4 Sudokwon Landfill Dedication Ceremony (1991.11.20)··················································31
Figure 2-5 Kyunghyang daily 1990.5.21 “Waste Flood”····································································31
Figure 2-6 Composition of Household Waste Disposed in 1995······················································33
Figure 2-7 Local People Insists on Moving Waste Incinerator form their Area (Korea)·················34
Figure 2-8 Election of Monument to Show Objection on Building Incinerator (Korea)··················35
Figure 2-9 Kyunghyang daily (1991.6.16)··························································································36
Figure 2-10 Joong Ang Daily (1991.8.7)····························································································36
Figure 2-11 Main Stream of Laws on Waste from 1960 to 2000······················································39
Figure 2-12 Waste Classification Outline in Korea···········································································40
Figure 2-13 Waste Treatment Process·····························································································42
Figure 2-14 Landfill in Daejeon Area in Korea·················································································43
Figure 2-15 Composting Facility·······································································································43

Contents • 013
Contents | LIST OF FIGURES

Chapter 3

Figure 3-1 Promotion in Newspaper································································································51

Figure 3-2 Volume-based Waste Fee System Guideline in Park·····················································52
Figure 3-3 Newspaper Promotion in Starting Day of New System·················································53
Figure 3-4 Newspaper (1994.12.29)··································································································54
Figure 3-5 Newspaper (1995.1.6)······································································································55
Figure 3-6 Prime minster visiting VBWF System headquarter (1995.1.14)····································56

014 • Volume-based Waste Fee System in Korea

 Chapter 4

Figure 4-1 The Waste Hierarchy·······································································································63

Figure 4-2 Discharging Household Waste························································································65
Figure 4-3 Separating Recyclable from Householdwaste·······························································66
Figure 4-4 Separation Mark for Recycling·······················································································66
Figure 4-5 Collection Systems for Recyclable Waste······································································68
Figure 4-6 Bulky Waste Collection···································································································69
Figure 4-7 Signboard for Waste Bag Sales Shop Disposal······························································70
Figure 4-8 Sticker for Bulky Waste···································································································70
Figure 4-9 Types of Bulky Waste (Furniture and Electronics)·························································71
Figure 4-10 Waste bag (Front and Back)··························································································74
Figure 4-11 Food Waste Bag·············································································································75
Figure 4-12 Collected Food Waste Unladed to the Treatment Facility············································76
Figure 4-13 Public Officers Checking the Content of Waste Bags··················································77
Figure 4-14 Illegal Dumping············································································································78
Figure 4-15 Illegal Dumping Captured in Security Camera····························································78
Figure 4-16 Landfill Field Trip and One-day Experience on Waste Separation······························80
Figure 4-17 Control Over Disposable Goods····················································································82
Figure 4-18 Food Waste Reduction Promotion Poster····································································83

Contents • 015
Contents | LIST OF FIGURES

Chapter 5

Figure 5-1 MSW Generation per Capita····························································································93

Figure 5-2 MSW Generation Total·····································································································93
Figure 5-3 Trend of Recycling Rate by Year······················································································94
Figure 5-4 Introduction of Reusable Bag·························································································97
Figure 5-5 Surveillance Camera····································································································101

Chapter 6

Figure 6-1 Processes and Products from Organic Waste······························································107

Figure 6-2 Composition of Municipal Waste in a Typical Developing and industrialized Country······107
Figure 6-3 Composting Facilities····································································································107
Figure 6-4 Compost from Organic Waste·······················································································109

016 • Volume-based Waste Fee System in Korea

 Summary

After 1960s, rapid urbanization, increases in income and consumption inevitably gave
rise to environmental pollution as well as mass generation of waste on an unprecedented
scale. The changes in consumption pattern for most people preferring luxurious goods also
resulted in shortening of product life span and brought about early discard of products, such
as furniture, and home appliances. And use of disposable products, excessive packaging and
excessive food waste were creating greater challenges for waste management authorities.
Moreover, waste treatment facility was necessary but construction of sanitary landfill site
and incinerator caused big social conflict between local communities. To overcome the
problems, government started to shift its focus from “how to treat the waste” to “how to
reduce the waste.” In order to reduce waste and maximize recycling, the Korean government
introduced the Volume-based Waste Fee (VBWF) System in 1995.
In the past, waste collection fee was charged on a fixed rate through property tax or
monthly fee regardless of the amount disposed. However, with the introduction of VBWF
System, households and small sized commercial sectors are required to purchase specified
bags to throw away their garbage, thus waste collection fee is charged in proportion
to the amount thrown away. The main objective of the VBWF System is two-fold: to
impose waste treatment cost on each polluter based on the amount of waste generated,
and to provide free collection service for recyclable wastes, thereby inducing reduction in
generation of wastes at source.
The type of waste subject to the VBWF System is municipal solid waste from
households, commercial sectors, small businesses and office buildings. The wastes from
commercial sectors should be similar to those of household wastes, in that they can be
collected, transported, stored, and treated in the same way as the household wastes. The
emission sources are residential houses, commercial sectors, office buildings, institutions
such as schools and government, and small-sized businesses disposing of less than 300kg
waste per day. Large-scale generators producing more than 300kg per day are not subject

Summary • 017
 to the VBWF System and they are required to treat wastes on their own responsibility.
They can commit waste collection and treatment to private hauler. The system does not
apply to burnt coal briquettes, recyclable wastes and bulky wastes such as discarded
refrigerators and furniture.
The VBWF System had a far-reaching effect on the reduction of waste generation and
recycling in municipal solid waste. The system led to 17.8 percent reduction in municipal
solid waste generation and 26 percent increase in recyclable wastes in the first year 1995
only. During the period of 1994~2004, the system led to 13.96 percent per year average
reduction of generation of municipal solid waste. The system has been evaluated as being
successful even though it has barriers such as illegal dumping and burning in rural area.
It has also changed the pattern of waste generation, awareness of the public toward
waste disposal, as well as, the behavior of consumers and producers. Although the system
still has room for improvement, VBWF System is an excellent example of a market-based
environmental policy.
The developing countries usually have high population in rural area without proper
waste collection system. And organic waste occupies big portion of total waste. In this
regard, Village-level Volume-based Waste Fee System can be one alternative. The Village-
level Volume-base Waste Fee System was conducted to fit the need of rural area with small
population which lacks frequent waste collection system. Also, organic waste recycling
should be considered due to its importance.

018 • Volume-based Waste Fee System in Korea

2011 Modularization of Korea’s Development Experience Chapter 1
Volume-based Waste Fee System in Korea

Introduction

1. Volume-based Waste Fee System in Korea

2. About Korea and Korean waste management

3. Contents
 Introduction

1. Volume-based Waste Fee System in Korea

Environmental civic group Green Korea conducted a survey on “Top ten environmental
news” in last five decade with 100 environmental experts; public officers, professors,
environmental activist etc., in 1999. The phenol release in Nak-dong river1 hold the first
rank and introducing Volume-based Waste Fee System in 1995 ranked the fourth place.
The Volume-based Waste Fee System aims at reducing household wastes by introducing
economic incentive system in waste disposal. The government levies a waste collection
fee based on the volume of waste discharged. The waste generation per capita following
the implementation of the Volume-based Waste Fee System has been reduced to a level
equivalent to the developed world, and the amount of recyclable waste collected has
doubled. It also contributed green consumption patterns ingrained among the general
population.2 According to the OECD’s 2007 “Korea Environmental Performance
Reviews,” Korea is praised for the growth and development of its environmental policy.
Among these, the most notable praise was the initiation of waste management policy.3 A
number of countries are adopting Korean waste management methods as a model, and
many overseas trainees from developing countries have come to Korea to learn. The most
notable aspect of Korean waste management policy is without question the Volume-based
Waste Fee System.

1 In March 1991, 30 tons of phenol spilled into the Nakdong River from a damaged pipe in a Doosan
Electro-Materials factory in Gumi City, causing thousands of residents downstream in Daegu to
become ill.
2 http://eng.me.go.kr/content.do?method=moveContent&menuCode=pol_rec_pol_system
3 OECD Environmental Performance Reviews KOREA, 2006,(http://www.oecd.org/dataoecd/24/4/37436565.pdf)

020 • Volume-based Waste Fee System in Korea

2. About Korea and Korean waste management
2.1 General Information
Korea is located between 33° 06’ 40” N and 43° 00’ 39” N parallels in the northern
hemisphere. Because of its location, Korea has four distinctive seasons. The latitude of
Korea is similar to that of Italy, Spain, Portugal, Greece, Turkey, China, Japan and the U.S.
(See Figure 1-1).

Figure 1-1 | Location of Korea

The combined territories of South and North Korea encompasses approximately

220,000 square kilometers, similar in size to LAOS, Oman, Romania, the United Kingdom,
Belarus, Ghana, Gabon, Guinea, Uganda, Guyana, Ecuador and New Zealand. South Korea
alone(roughly 99000 m2) is similar in size to the United Arab Emirates, Jordan, Austria,
Portugal, Hungary, Azerbaijan, Guatemala, Honduras and Cuba.4
As of 2011, South Korea’s total population was estimated at 49,780,000 with a density of
489 people per square kilometer. The nation’s rapid industrialization and urbanization in the
1960s and 1970s was accompanied by continuing migration of rural residents to the cities,
particularly Seoul, resulting in heavily populated metropolitan areas. Korea’s urbanization
rate is 90.8% by 2009.5

4 Land portal, www.land.go.kr

5 Korea Statistical Information Service, kois.kr

Chapter 1 Introduction • 021

 2.2 Economic Development and Environmental Degradation
Korea gained independence from Japan in 1945 but was in political turmoil and extreme
poverty due to exploitation during colonial period. The devastating Korean War which took
place from 1950-1953 worsened the situation and Korea was one of the poorest countries
in the world with per-capita GNP $67. However, during 1960s~1980s, Korea realized
tremendous economic expansion in a relatively short period, dubbed “the Miracle on the
Han River.” Now Korea has per capita income US$ 20,000 level (See Figure 1-2). Through
properly designed development strategies and effective use of foreign assistance, Korea has
grown into a leading producer of ships, steel, automobiles, and semiconductors.
In 1995, Korea was excluded from foreign assistance recipient country list of World
Bank. In 1996, Korea proudly joined the Organization for Economic Cooperation and
Development (OECD). It has been said that never before has a country developed so
much in so short a period of time. Korea was welcomed as the 24th member of the OECD
Development Assistance Committee (DAC) in November 2009.

Figure 1-2 | GDP Growth /Per Capita GNI from 1970-2010

(Unit: US$ billion) (Unit: US$)

2010 1,014 2010 20,759
2009 834 2009 17,175
2008 931 2008 19,231
2007 1,049 2007 21,695
2000 512 2000 10,841
1990 264 1990 6,147
1980 64 1980 1,645
1970 8 1970 254

Source : The bank of Korea

After rapid industrialization and economic growth, Korea is facing various environmental
problems since environmental concerns were superseded by developing interests. And this
significantly threatened the environmental sustainability of the country’s development.
Furthermore, Korea is a densely populated country with low environmental capacity. To
overcome environmental difficulties and damages, Korea has made an effort to develop
environmental legislations and policy in the late 1970s.

022 • Volume-based Waste Fee System in Korea

 Environment degradation is unavoidable during economic development to a certain
degree. However, developing countries can learn from industrialized countries’ experience
and their adaptation technology. Especially, Korea has overcome many of the adversities
and challenges that developing countries are struggling with today and wants to share
experience to avoid trials and errors.

2.3 Waste Management Trend in Korea

In Korean traditional society, careful recycling and reuse of resources was norm, and the
concept of “wastes” was nonexistent. The most agricultural wastes were all recycled, and
resources underwent a natural process of circulation. Rice straw, for example, was used as
animal feed, as thatching for roofs, and as fuel and then finally as fertilizer. Manure and
leftover food were also reused as compost to restore the fertility of agricultural land. House
items, made primarily of wood or earth, could be also naturally returned to the ground.

Figure 1-3 | Trend in Waste Management in Korea

2000’
Circular
Economy
1990’
Waste
1970’ reduction
1980’ and recycle - Material cycle
- Waste-to-Energy
Waste
treatment
- Landfill and incinerator
- Recycle
- Volume-based Waste Fee system
- Optimum treatment system
- Waste pollution - Safety management
- Waste treatment

Since the 1960s, with the arrival of industrialization and urbanization and the
transformation of living styles, waste generation increased rapidly. In 1981, municipal waste
generation amounted to 37,716 tons per day, 1.77kg per capita. This was comparatively
high, as Germany produced 0.7kg and Japan produced 0.8kg at the time. One of the reasons
for this was the generation of large quantities of ashes that resulted from the use of coal
briquettes as fuel, as well as a Korean food culture that consumed much high moisture
food. In 1985, total waste generation in Korea amounted to 57,518 tons per day, and waste

Chapter 1 Introduction • 023

 generation per person amounted to 1.95 kg per day. Out of this, coal ashes took 27,347 tons
per day, assumed as 47.5%.
In Korea, the goal of waste policy before the introduction of the Volume-based Waste
Fee system is the “proper management of generated waste,” but its introduction added the
“optimum generation and treatment of waste” as an important goal. And now the waste
management trend in Korea is heading to circular economy since waste prevention and
recycling after waste generated are not sufficient to overcome limits of multi-consumption
society [Figure 1-3]. Korea has achieved very high recycling rate during last 10 years
through EPR (Extended-Producer’s Responsibility)6 and Volume based fee system.
Efforts to resolve environmental problems within economic system are rising recently
among many countries. The purpose of this study is to facilitate the introduction of the
Volume-based Waste Fee System and minimize expected trials and errors for other countries
that wish to adopt the system by introducing the progress and performance of the Volume-
based Waste Fee System in Korea.

3. Contents
This study consists of the background, progress and result, detailed information, and
implications of the Volume-based Waste Fee System. The background part reviews the social
conditions and waste management system when the Volume-based Waste Fee System was
introduced. The progress part divides the history of the system into the preparation stage,
introduction stage, and institutionalization stage and reviews its result. The contents and
improvement parts describe the meaning and characteristics of the Volume-based Waste Fee
System, legal basis, contents of the system, administrative structure, and role sharing and
review improved matters. The implication for developing countries part draws some lessons
of this policy and describes matters to be attended to when consulting on the Volume-based
Waste Fee System for partner countries.

6 The EPR is a system for fundamentally reducing waste volume from the planning and production
stages, and expanding recycling by imposing recycling obligations. Recycling charge is imposed
based on recycling expenses to producers of products and packing materials, who were given certain
recycling obligations and do not attain the obligatory recycling rate.

024 • Volume-based Waste Fee System in Korea

2011 Modularization of Korea’s Development Experience Chapter 2
Volume-based Waste Fee System in Korea

Background of the Volume-based

Waste Fee System

1. General Background

2. Waste Management until the 1990s

3. Waste Management Framework

 Background of the Volume-based
Waste Fee System

1. General Background
1.1 Environmental Status in 1990s
Korean government marked year 1990 the year of environment. There was the first earth
day celebration in Seoul and the Environmental Office (founded in 1980) was upgraded as
an Environment Agency. Although environmental rights were stipulated in the Constitution
at the 8th amendment in 1980, and a plan for environment started to be added from 5th
5-year economic development plan (1982~1986), environmental pollution got worse. In
1990s, environmental movement sprung up nationwide and there were constant protest
against environment-unfriendly development. Most industrial complexes of heavy industry
have polluted land, water, and air severely. People who had experienced the damages of
environmental pollution demanded a safe and sound environment. In particular, heavy
industry had a significant impact on the environment.
As a result, in the first half of the 1990s, environmental administrative affairs increased
sharply; Environment Agency was upgraded to Ministry of Environment in 1995
with continuous budget increase (See Figure 2-1). In short, the increased awareness of
environment led the reorganization of the environmental legal system and administrative
organizations. However, it took many years for environmental administration to function
practically since many still thought that environmental protection is subordinated to growth
of economy.

026 • Volume-based Waste Fee System in Korea

 Figure 2-1 | Increase of Budget for Environmental Sector

(Unit: billion KRW)

7400
6400
5400
4400
3400
2400
1400
400
85 86 87 88 89 90 91 92 93 94 95

Source : Fifty years of Korean environment, Ministry of Environment, 1996, 24p

In 1990s, many economic regulations were introduced to build environment-friendly

production and consumption systems and secure finances for environmental investment.
The Korean government introduced several recycling policy such as the Volume-based
Waste Fee System (VBFWS, 1995), Extended Producers Responsibility7 (EPR, 2003),
Deposit Refund System,8 Waste Charge System9 and etc. Most successful recycling polices
are known as VBWF System and EPR up to now.

1.2 Socio-Economic Status in 1990s

With respect to the social and economic indices of Korea when Volume-based Waste Fee
System was first introduced, the gross national income (GNI) had increased sharply in the
from USD 2,229/person in 1985 to USD 5,886/person in 1990. It kept increasing up to USD
7,811/person in 1993 and USD 8,998/person in 1994. Due to the expansion of educational
opportunities, the middle school entrance rate was 99.9%, and the high school entrance rate
was 98.6%. More than half of high school students entered junior college or university,
and living space was expanded thanks to the continuous economic growth and increase in
income (See Table 2-1).

7 Refer footnote 6
8 The ‘Deposit Refund System’ was adopted to promote collection and reuse of used containers by levying a refundable
container deposit on consumers. At present, liquor or soft drink glass bottles are subject to the system
9 The ‘Waste Charge System’ is aimed at curbing waste generation by imposing charges on products
that are hard to recycle or that contain hazardous chemicals. The charge rate is decided based on each
product’s environmental impact.

Chapter 2 Background of the Volume-based Waste Fee System • 027

 Table 2-1 | Main Social Indices of Korea in 1995

Year 1995
Population 44,851,000
Average age 31.2
GDP per capita (1994) 8,483 $
Portion of city population and City residence 74.4%
population density (1990) population density 437
Average income ratio of city and
country/city=99.5
countryside
Women economic participation rate 47.9%
Government budget vs. education budget 22.8%
Education (1990) Elementary graduate (33.4%)
Middle school graduate (19%)
High school (33.5%)
College or higher (14.1%)
GNP vs. R&D investment 2.33% (1993)

Source : 1995 social index of Korea, Statics Korea

Politically, the democracy movement was full-bloom in Korea. There were insistent calls
arose for decentralization, and many citizens eagerly asked for their democratic rights to
elect their own representatives. 1995 is the first year when the local self-governing system
was expanded nationwide and the 4 local elections (head of the metropolitan council, head
of the local government, member of the metropolitan council, and member of the local
council) were held for the first time.
In the mid 1990s. the GDP per person of Korea has reached 10,000 USD and mass
consumption started to emerge in Korea. People stated to pursue individuality, product
differentiation and diversification Thus in 1990s Koreans shifted from quantity-oriented
consumption to quality-oriented consumption in food, clothing and housing10 (See Table
2-2).

10 Nam, Eun yonung (2007),Korean Consumer Culture in 1990s: With focus on consumer consciousness
and behavior, Society and history

028 • Volume-based Waste Fee System in Korea

 Table 2-2 | Lifestyle of Korean and Consumers’ Awareness in 1990s

Consumer’s awareness Living

- Conspicuous and over consumption - Prefer apartment
- Sensitive on trend and aesthetic sense - Younger generation (city) and Older
- Consumer conformity generation (house with garden)
- Design, appearance, brand - Regard on environment
- Prefer wide-space
- Raising concern on house interior
Food Clothes
- Freshness, Brand - Color and design > practical use
- Gourmet dinning - Fashion and style
- Well-being food - Brand consciousness

Source : N
 am, Eun young (2007), Korean Consumer Culture in 1990s: With focus on consumer consciousness and
behavior, Society and history

2. Waste Management until the 1990s

2.1 General Situation
Originally, the waste collection method involved collection of household waste in human
powered wheel barrows on designated days by local governments. Households placed waste in
receptacles installed in front of their residences. Collected wastes were processed by transporting
it to neighboring fields or paddies, and dumping as landfill, or were used in embankments.
Nanjido was a representative landfill site at that time (See Figure 2-2). It was converted
into a landfill in the middle of the rapid urbanization of Seoul in 1978. From that time
to 1993, 92 million tons of garbage including household wastes and construction and
industrial wastes were dumped on the island, resulting in two massive mountains of garbage
measuring over 90 meters in height. At all times, the landfill method was simply open
dumping, and such practices continued until the late 1980s (See Figure 2-3).
From 1970s, the amount of waste kept increasing but landfill sites near big cities
became increasingly scarce. In 1977, 9,300 ton of waste is produced in Seoul daily. In
1981, it increased up to 16,000 tons.11 Mass-media urged the government to find solution
but government could not figure it out (See Figure 2-5). Due to lack of space, landfill
sites in more remote areas were used. Consequently, waste transport vehicles were used
for prompt disposal service. However, landfill sites gradually became exhausted and the
negative implications of simple open dumping for the environment and sanitation also
became increasingly apparent.

11 Article from Dong A ilbo in 1977.8.22, Kyunghyang Daily in 1981 5.7

Chapter 2 Background of the Volume-based Waste Fee System • 029

 Figure 2-2 | Nanjido Landfill (1990.01.11)

Source : http://ehistory.go.kr/

Figure 2-3 | Landfill Dumping in Nanjido (1990.01.11)

030 • Volume-based Waste Fee System in Korea

 Figure 2-4 | Sudokwon Landfill Dedication Ceremony (1991.11.20)

Source : http://ehistory.go.kr/

Figure 2-5 | Kyunghyang daily (1990.5.21) “Waste Flood”

Chapter 2 Background of the Volume-based Waste Fee System • 031

 However, as local residents became increasingly environmentally aware in the 1990s,
opposition movements arose against the construction of waste processing facilities (including
incinerators, landfills, and intermediate processing facilities etc.). In particular, public fear grew
of dioxin emitted from incinerators, which is both a carcinogen and environmental hormone. As
a result, it became necessary to take special measures to pursue construction and operation of
necessary facilities and resolve local opposition to construction of waste processing facilities.
Sudokwon Landfill was built for Seoul and adjacent areas, and landfill work started on Feb. 10,
1992 but it was expected to have a short life span compared to increasing rate of waste (See
Figure 2-7).
To address these needs, the “Promotion of Installation of Waste Disposal Facilities and
Assistance etc. to Adjacent Areas Act” was enacted in 1995. Nevertheless, the many difficulties
in dealing with the NIMBY phenomenon were evident, as shown the fact that the act was
amended some 25 times between the times it was first introduced in 1995 up to 2008.

2.2 Main Issues in Waste Problem in 1990s

2.2.1 Continuous Increase in Waste, Limited Disposal Capacity
To dispose of municipal waste sanitarily, the government planned in 1987 to construct garbage
incineration plants, sanitary landfills, and intermediate treatment plants all over the country;
however, the construction was suspended or the location of landfill cannot be determined due
to lack of huge investment, increase in land value, and civil complaints of residents. The advent
of mass consumption society in the 1990s exacerbated the waste problems.
Discharged municipal waste was 75,096 tons/day at the end of 1992, recording a high
annual increase rate of 7%~10% after 1988 <Table 2-3>. Per person, it was 1.8kg (per
person/day), which was much higher than that of the USA (1.3kg), Japan (1.0kg), UK
(0.9kg), and Germany (0.9kg). Food waste composed large part of household waste [Figure
2-6]. Daily discharged food waste per person was 0.52kg, which was twice that of Japan
(0.37kg), Germany (0.27kg), and UK (0.26kg).12

Table 2-3 | Waste Generation 1990-1994

(unit : tons/day)

Year Total Municipal waste Industrial waste Generation per capita(Kg)/day

1990 145,374 83,963 61,412 2.30
1991 158,376 92,246 66,130 2.30
1992 144,535 75,096 69,439 1.80
1993 141,383 62,940 78,443 1.50
1994 147,049 58,118 88,931 1.30

12 Newspaper Dong A ilbo, 1996.6.3

032 • Volume-based Waste Fee System in Korea

 This was attributed not only to the increase in consumption but also to the traditional
Korean food culture, characteristics of Korean foods and excess amounts of food provided
by restaurants. Korean treats their guest with large meal as a sign of hospitality and the
most common side dish, Kimchi (traditional fermented vegetable with varied seasonings),
generates a lot of vegetable waste when making.

Figure 2-6 | Composition of Household Waste Disposed in 1995

papers metals and glasses coal briquettes

wood food waste etc
etc papers
26% 24%

metals and
glasses
food waste 8%
31%
coal briquettes
7%
wood
4%

2.2.2 Increase in Harmful Waste and Disposable Products

Some wastes produce powerful greenhouse gases and others have significant health
impacts on humans and animals. In the late 1970s, Korea transformed into an industrial
society; as a result, municipal organic waste such as food, paper, and textile as well as waste
containing harmful materials such as battery, bulb, and home appliances increased sharply.
In addition, the westernization of consumption generated new waste such as plastic goods,
textile, and aluminum. Such synthetic resins and metal take a long time to decompose.
Disposable razor, toothbrush, plastic bag, wooden chopsticks, wet paper towel, paper cup,
and paper, Styrofoam amounted to 35,900 tons/day in 1990 and 42,700 tons/day in 1992,
increasing 0.5% annually. These urban municipal wastes incurred the fierce opposition of
local residents and environmental groups on construction waste facility because they do not
decomposed even after a long time when reclaimed, generating harmful gases and powerful
carcinogens such as dioxin when incinerated.

2.2.3 NIMBY Syndrome

Whenever a community is faced with the prospect of a waste facility being located in
its midst, the response is usually, “Not in my back yard!” That response has been dubbed

Chapter 2 Background of the Volume-based Waste Fee System • 033

 the NIMBY syndrome. NYMBY on building waste facility is still very common nowadays
all around the world. In Korea, NIMBY caused from distrust on politics, awareness of
individual right as well as environment, lack of mutual communication which is neglected
under compressed Korean development process.
As in other countries, municipal waste management in Korea is a matter for local
governments. It became a serious social and economic problem due to conflicts between
local residents regarding the construction of a waste treatment facility. However, when
the local autonomy system was introduced in the early 1990s, waste management, waste
reduction and recycling became more difficult and complex.
Usually, local residents to participate regardless of burden for local community. Most
landfills were vulnerable to toxic leachate and gases, with the pollution of underground
water and river, bad smell, harmful insects. And free ride of other communities brings
resentment of residents.
Waste treatment facility construction is difficult process and government should prepare
suitable correspondent strategy. Effective waste management depends upon achieving
informed consensus amongst interested parties. Deficiency of trust in government is caused
by secret administration, one-sided policy making, and unsuitable pollution regulation.
Usually, residents lack unbiased information about waste facility which is to be placed in
local area. These brings question about the security of pollution treatment techniques and
the management of public health. Government should try to bring environmental justice to
all citizens, not just the poor and minorities.13

Figure 2-7 | Local People Insists on Moving Waste Incinerator form their Area (Korea)

13 Huh suk, A Study on the Citizen's Opposition to Public Policy Making : A Case Analysis on the Waste
Treatment Facilities in Korea, Kon-kuk Univ

034 • Volume-based Waste Fee System in Korea

Figure 2-8 | Election of Monument to Show Objection on Building Incinerator (Korea)

2.2.4 Inadequate collection system and inactive separate collection

The necessity of separate collection was raised the end of the 1970s and introduced
locally in the early 1980s, but many difficulties arose such as insufficient infrastructure
to utilize and dispose of separated waste, indefinite standards for separate collection, and
conflicts between garbage haulers. There were many skeptics that the separate collection
of waste only bothers citizens since there was no recycling infrastructure after separation.
[Figure 2-10] shows skeptical public opinion about separate collection of waste.
In 1991, separate collection became compulsory, and penalty of not more than KRW
1,000,000 was charged on those who violate it. However, still separate collection has not
taken root in among citizens (See Figure 2-9).

Chapter 2 Background of the Volume-based Waste Fee System • 035

 Figure 2-9 | Kyunghyang daily (1991.6.16)

Figure 2-10 | Joong Ang Daily (1991.8.7)

2.2.5 Low Waste Fee and Improper Calculation System

In 1994, the cost of waste disposal nationwide was KRW 962 billion, but the collection
fee was KRW 142.8 billion. The fiscal self-reliance of waste fee was only about 15%.
The low waste fee made it difficult to install environment-friendly waste disposal facilities
(sanitary landfills) due to the insufficient budget.

036 • Volume-based Waste Fee System in Korea

 In the flat rate waste fee system, waste fee was calculated by building area for apartment
houses and property tax on building for detached houses. In short, the system assumed that
households paying high property tax discharge more wastes because they were wealthy.
In this system, however, there was no direct relationship between the generated waste and
waste fee, and it failed to encourage waste reduction.

2.3 Paradigm Shift: From Maximum Treatment to Minimum Waste

Before 1990, the primary goal of local governments was how to enhance their capacities
for treating waste generated in their jurisdictions by means of expanding disposal facilities.
Korean society in 1990s was observing ever increasing waste volume in one hand and facing
nation-wide NIMBY (“Not In My Back Yard”) syndrome in the other hand. The waste
with ever increasing volume could not find any place to go. There needed a revolutionary
measure to deal with the severe waste problems. A better alternative proposed was reducing
waste volumes to be treated before the waste was discharged. This idea has been realized
by a paradigm shift in waste policies. The primary focus should be put on how to reduce
waste volumes before generated or discharged rather than how to treat waste efficiently and
in environmentally sound manner which requires more social cost than reduction.
In 1990s, the focus of waste policies shifted to controlling demand for waste services
by concentrating on waste reduction aiming at waste minimization toward a Sustainable
Waste Management. The responsibility for waste management has been changed from
sole responsibility of (local) governments to shared responsibilities among governments,
consumers and producers. This change contributed to enhancing public awareness of the
significance of waste issues and inducing ordinary people to participate in activities for
reducing waste volume. The policy tools had been diversified including various economic
incentives for reducing waste volume and promoting recycling of the waste, from the
downstream to the upstream of the waste flows, from controlling discharge and collection
of waste in post consumption to integrated product polices in the generation phase.
At this time, various waste policies were introduced such as Deposit-Refund System14
(1993), Waste Charge System15 (1993), Packaging Waste Reduction16 (1993), Control over
the use of disposable Goods17 (1994) (See Table 2-4).

14 Refer footnote 8
15 Refer footnote 9
16 The empty space in the packaging container after packing (the ratio of total packing size to the left
space) and the number of packing layers are regulated by law for over packaging control.
17 This is to regulate the use of disposable goods at department stores, restaurants, public baths
and other distribution and consumption sectors to establish a sustainable consumption pattern by
encouraging the use of multiple-use products

Chapter 2 Background of the Volume-based Waste Fee System • 037

 Table 2-4 | Paradigm Shift of Waste Policy as of 1990

Before 1990 1990s

Paradigm Service Supply Demand Control
Goal Expand treatment facility Reduce waste, increase recycling
Tools - Volume-based Waste Fee system
- Deposit-Refund System
- Waste Charge System
Fixed rate waste fee
- Packaging Waste Reduction
- Control over the use of
disposable Goods

3. Waste Management Framework

3.1 Waste Law and Policy
In Korea, waste management became public works in the 1960s; in 1961, the Waste
Cleaning Act was established to treat waste and excreta. In 1963, the management of
industrial waste under the Environmental Pollution Prevention Act was established, with
the overall environmental and sanitation regulations including waste treatment included
in the newly established Environmental Protection Law in 1977. Until the 1980s, our
budget, human resources, and equipment for waste management were concentrated
on waste collection; the collected waste was thrown away around low and swampy
places, empty lots, riverbeds, or house or factory construction sites. After the 1980s,
environmental pollution such as bad smell, gas explosion, and pollution of river and
groundwater due to leachate occurred because urban landfills did not adopt sanitary
landfill but merely loaded waste instead.
Given the increasing importance of waste management, the existing Waste Cleaning
Act and the management of industrial waste under the Environmental Pollution Prevention
Act were integrated as an independent Waste Management Act in 1986 (See Figure 2-11).
The concept of “Recycling” was legally adopted for the first time. With respect to the
amendment of laws related to waste, Act 3 of the Waste Management Act (regulations on
the suppression of waste and recycling) was divided in 1992, becoming an independent law
on the saving of corporate resources and facilitation of recycling. In 1995, The Promotion of
Installation of Waste Disposal Facilities and Assistance, etc., to Adjacent Areas Act which
stipulates support for residents around the waste disposal facilities to decrease NIMBY
was established. Waste Management Act and Act on Promotion of Resources Saving and
Recycling was the major waste law in effect when Volume-based Waste Fee System was
introduced.

038 • Volume-based Waste Fee System in Korea

 Figure 2-11 | Main Stream of Laws on Waste from 1960 to 2000

Waste Cleaning
Act (1961)

Waste
Pollution Included in Management Waste Waste
prevention Act Envirnment Act Management Management
(Industrial waste) Conservation Enact (1986) Act(1991/95) Act
(1963) Act in 1997. Amend Amend (2003)

Act on Act on
Promotion Promotion
of Resources of Resources
Saving and Saving and
Recycling Recycling
Enact (1992) Amend (2002)

Act on
Promotion
of COnstruction
Waste
Recycling
Enact (2003.12)

3.1.1 Waste Managent Act (1986)

The basic legal framework of waste policies is established by the Waste Management
Act. This act promulgates the basic things such as classification of wastes, responsibilities
of central/local governments and citizens, comprehensive waste management plans,
standards and rules for waste discharge and treatment procedures, and certification for
treatment of designated wastes (toxic and hazardous wastes). Regulations on the municipal
waste reduction were added in the Waste Management Act as a basis for the introduction
of the Volume-based Waste Fee System in 1995. According to the Waste Management Act,
government should devise a basic policy for waste management and provide technical and
financial support to the local government, and the metropolitan local governments (cities
and provinces) should mediate and provide financial support to local governments.

3.1.2 Act on the Promotion of Resources Saving and Recycling

(1992)
This act promulgates the basic framework for waste recycling including basic plans for
recycling by government, roles and responsibilities of enterprises and citizens for promoting
waste recycling. It promulgates programs of waste labeling system, separate collection and
discharge of recyclable wastes. It also provides regulations for the reduction of packaging
waste, Waste Charge System.

Chapter 2 Background of the Volume-based Waste Fee System • 039

 3.2 Municipal Waste Management
3.2.1 Concept and Classification
Under the Waste Control Act, the term “wastes” means such materials as garbage,
burnt refuse, sludge, waste oil, waste acid, waste alkali, and carcasses of animals, which
have become no longer useful for human life or business activities (Waste Management
Act, Article 2) and they are divided into municipal wastes and industrial wastes by source
and volume of generation.
Due to the increase in income, change of lifestyle, and diversification of waste in quality
and quantity, the classification of waste had been changed. Before the establishment
of the Waste Management Act in 1986, our waste was divided into general waste and
industrial waste. Hazardous waste was not defined in the act, but in the ordinance of
Waste Management Act, “special industrial waste” was defined. In the 1st amendment
of the Waste Management Act in 1991, they were divided into municipal general waste,
industrial general waste, and designated waste.
In 1995, the waste classification system was reorganized based on harmfulness. Waste
is roughly classified into two categories according to its source of origin: municipal
waste from households and industrial waste from business sites or factories of large
scale (generation of waste above 300kg/day). Industrial waste is further divided into two
categories: ‘general industrial waste’ which consists of non hazardous such as slag, ash,
dust, and construction waste, ‘designated waste’ which consists of toxic wastes such as
waste acid, waste alkali, waste oil, waste organic solvent and so on (See Table 2-5, Figure
2-12). Waste is managed in dual system in terms of responsibility of generator. The local
government is responsible for the final disposal of municipal waste, while the discharger
of industrial waste is responsible for the final disposal of it.

Figure 2-12 | Waste Classification Outline in Korea

MSW, municipal
solid waste
waste
ISW, industrial
solid waste
designated waste

040 • Volume-based Waste Fee System in Korea

 Table 2-5 | Concept and Classification of Waste

Waste
Municipal Solid Wastes Industrial Solid Wastes
Among materials which General Industrial Wastes
became of no use for human Any wastes generated from places of business with
life, any wastes other than discharging facilities installed and managed in accordance
industrial wastes with the Clean Air Conservation Act, the Water Quality and
Ecosystem Conservation Act, or the Noise and Vibration
Control Act or other places of business which discharge
more than 300kg of wastes a day.
Construction Wastes
Construction wastes discharged in excess of 5 tons
Designated Wastes
Waste oil and waste acid, which may cause damage to the
environment, or wastes produced by health and medical
institutes, animal hospitals, research and inspection
agencies that may cause damage to the human body, such
as an extirpated parts of human bodies and the corpses of
laboratory animals.

3.2.2 Waste Treatment Method

During the end of the 1980s to the early 1990s, most municipal waste was reclaimed
in local or metropolitan landfills and very little waste was recycled. In 1991, however,
recyclable waste increased due to the compulsory separate collection (See Table 2-6).
Household waste is separated to recyclable material, food waste and the rest. Proportion
of incineration and recycle kept increased while landfill portion kept decreasing in Korea.
Waste collection, incineration, land filling, and wastewater treatment have become
common practices in industrialized parts of the world. In Korea, the disposal of municipal
waste is divided into landfill, recycling, composting and incineration (See Figure 2-13, Figure
2-14, Figure 2-15).

Table 2-6 | Municipal Waste Treatment 1987-1994

(Unit : ton/day)

Total Landfill Incineration Recycle Etc.

1987 67,031 (100) 63,411 (94.6) 1,508 (2.3) 1,562 (2.3) 550 (0.8)
1988 72,897 (100) 69,248 (95.0) 1,210 (1.7) 1,759 (2.4) 680 (0.9)
1989 78,021 (100) 73.294 (93.9) 1,478 (1.9) 2,275 (2.9) 974 (1.3)
1990 83,962 (100) 78.106 (93.0) 1,493 (1.8) 3,900 (4.6) 463 (0.6)

Chapter 2 Background of the Volume-based Waste Fee System • 041

 Total Landfill Incineration Recycle Etc.
1991 92,246 (100) 82,411 (89.2) 1,497 (1.6) 6,786 (7.4) 1,552 (1.7)
1992 75,096 (100) 66,965 (89.2) 1,132 (1.5) 5,912 (7.9) 1,087 (1.4)
1993 62,940 (100) 54,227 (86.2) 1,480 (2.4) 7,233 (11.4) -
1994 58,118 (100) 47,166 (81.2) 2,025 (3.5) 8,927 (15.3) -

Figure 2-13 | Waste Treatment Process

Waste discharge

Separation

Recycling Organic Inorganic Harmful

possible

Recycling Composting incineration Solidification

Possible

Compost Incinerator
facility

Organic fertilizer Energy Leftover

Landfill

042 • Volume-based Waste Fee System in Korea

Figure 2-14 | Landfill in Daejeon Area in Korea

Figure 2-15 | Composting Facility

Chapter 2 Background of the Volume-based Waste Fee System • 043

 3.2.3 Management Budget
Before the introduction of Volume-based Waste Fee System, waste collection fee had
existed. However, financial viability was very low. Demand in environmental sector
continually increased and the waste management budget had to be drawn from other budget
item which caused unbalanced national finance.
There was not much investment in waste management since it was not the priority of
local government. Since the enforcement of the Waste Management Act in 1986 as the first
independent law on waste, the central and local governments used the budget for waste
management as <Table 2-1>. Around the time of the introduction of the local autonomy
system, the budget for waste management increased dramatically. Up to 1990, the budget
for waste management remained at a level of between 3 billion (US$ 4.2 million) to 7
billion Won (US$ 7.0 million) a year. In 1991, the budget for waste management increased
to 24.5 billion Won (US$ 33.4 million), and in 1995, the budget increased to 145.6 billion
Won (US$ 188.9 million). Nevertheless, increase was not sufficient for improve financial
viability of waste management administration. This was one of the reasons to introduce
Volume-based Waste Fee System.

Table 2-7 | Waste Management Budget 1987-1995

(unit: 1million KRW)

State Local Municipal Fee

year Total Loan Etc
budget budget bond collection
1987 155,726 500 145,590 9,636 - - 16,319
1988 153,041 146,361 3,094 - 2,777 28,118
1989 191,111 1,012 187,131 30 - 2,329 32,726
1990 377,379 119 370,504 6,756 - - 53,182
1991 507,799 5,320 492,673 4,616 200 4,690 71,633
1992 662,127 3,750 606,867 3,565 7,711 40,234 78,790
1993 888,571 9,682 861,442 - 7,833 9,560 97,095
1994 1,049,935 19,818 984,159 - 11,811 34,147 142,800
1995 1,173,971 41,242 1,105,791 - 26,867 71

044 • Volume-based Waste Fee System in Korea

2011 Modularization of Korea’s Development Experience Chapter 3
Volume-based Waste Fee System in Korea

Progress of the Volume-based

Waste Fee System

1. Preparation Stage

2. Introduction Stage

3. Institutionalization Stage
 Progress of the Volume-based
Waste Fee System

Collection and process of the enormous amounts of waste produced in the cities is a
critical part of urban administration. The government set reduction, recycling, sanitary
incineration and landfill as basic waste policies and enforced the Volume-based Waste Fee
System as an economic incentive to resolve the waste problem, based on the “polluter pays”
principle. Although the Volume-based Waste Fee System as a method to reduce waste had
no significant procedural meaning because it is just a “collection” stage in the entire waste
disposal procedure, in practical terms, it wielded huge influence on politics, economy,
society, and culture as an important economic instrument in the environmental sector.

1. Preparation Stage
1.1 Feasibility Study on the Introduction of the VBWF System
1.1.1 R
 esearch for the feasibility study (September 1992~January 1993)
The Korean Society of Waste Management, which conducted the research, submitted a
specific policy report containing introduction of VBWF system. The report included legal
amendment, enforcement plan, expected effect, and ripple effect. Researchers cooperated
with related agencies on the legal amendment, worked as adviser in the negotiation with the
National Assembly, public persuasion, and promotion, and worked closely with government
employees in the trial and actual enforcement of the Volume-based Waste Fee System.

1.1.2 Collecting the Opinions of Various People

(February 1993~August 1993)
The opinions of various people related to the introduction of the Volume-based
Waste Fee System were collected by holding public hearings and meetings with related

046 • Volume-based Waste Fee System in Korea

specialists, private organizations, and cleaning companies (February~July 1993); a
meeting with consumer groups, housewife groups, and waste bag makers was held (July
1993), and the opinions of the heads of local cleaning departments and the subcommittee
of waste were collected (July~August 1993).

1.1.3 Solicited the Opinions of Related Agencies on VBWF Bag

The mark of the local government can be used in the waste bag. As such, the waste bag for the
Volume-based Waste Fee System is like an official document because it contains the mark of the
city hall or borough office. Hence, its fabrication is the fabrication of an official document.

1.2 Pilot Operation

1.2.1 E
 nforcement Policy and Notice of Demonstration Plan
(November 1993)
The National Waste Disposal Plan institutionalized the enforcement policy of the
Volume-based Waste Fee System whose trial was to start in 1994, with the demonstration
plan announced in the Meeting of Local Environmental Directors. As the plan of the
Volume-based Waste Fee System took root, each group showed a different reaction. The
local government, which handled its managerial affairs, was interested mostly in specific
enforcement methods such as fee, method to distribute waste bag, and method to treat
recyclable materials that were expected to increase; it then reviewed how to protect low-
income groups and maintain the existing committed cleaning service system. On the other
hand, social groups in each environmental sector focused on evaluating the problems in
the trial and making public opinion by identifying the problems, reviewing the effects and
drawing improvement schemes.

1.2.2 Trial of the VBWF System (April 1~December 31, 1994)

The Volume-based Waste Fee System was implemented in 1-3 selected regions of 15
cities and provinces (each city and province selected 1 urban area and 1 rural area). With
the trial generating positive effects, other regions participated voluntarily; as a result, it was
expanded from 33 regions to 89 regions in Nov. 1994. With the trial, waste was reduced by
40%, and recyclable materials increased by 100%. The press was pessimistic at first, but
their attitude changed during the trial of the Volume-based Waste Fee System, as can be
seen from following new titles.
1994. 3. 10 Unstable start of Volume-based Waste Fee System (Busan daily)
1994. 3. 12 VBWF System is causing illegal dumping (Daily international)
1994. 3. 31 Volume-based Waste Fee System, will this work? (Daily international)

Chapter 3 Progress of the Volume-based Waste Fee System • 047

 1994. 4. 1 The first day of Volume-based Waste Fee System, citizens are suffering from
War on waste, (Munhwa daily)
1994. 4. 5 VBWF System, continuous occurrences of side-effects (Busan economic)
1994. 4. 9 Volume-based Waste Fee System, predicted side effect became real (Busan daily)
1994. 4. 9 Volume-based Waste Fee System “The green light is on” (Daily international)
1994. 4. 29 Volume-based Waste Fee System, came to effect (Kookmin daily)
1994. 5. 15 There are increase on introduction of Volume-based Waste Fee System
among local government (Chosun daily).
1994. 6. 23 Expansion of VBWF System will bring benefit of 476,821,192 USD
(Chosun daily)

1.2.3 Interim Assessment by Private Sector (August 1994)

Because of the success of the trial, risks were taken by entrusting the most opposed civic
groups with the assessment of the Volume-based Waste Fee System.
The private assessment team was launched on April 27, 1994 with 165 monitoring
agents. Though they were inactive in the assessment at first, civil groups were surprised at
the achievements of the Volume-based Waste Fee System, and they understood its positive
features. As a result, they abandoned their preconceived notion that it is a system that passes
the responsibility of waste reduction to residents and facilitates illegal waste discharge
and viewed it as a positive system to improve environmental awareness related to waste
management, set a new cooperative relationship between the public and private sectors,
reduce the discharged waste, increase the discharged recyclable materials, improve the
financial independence of waste, and decrease the budget.
In addition, attitude of households discharging waste were changed considerably
by using shopping basket, reducing food waste, and removing packing materials when
purchasing products.

<Interview> Communication is the key for the success, Convince the public!

Jae-kon Shim

(Chief of Waste Policy Department,

Minstry of Environment in 1990)

048 • Volume-based Waste Fee System in Korea

Q: How did the VBWF System started at first?

A: At the beginning, Government started the project to find the way for effective
waste separation system. Through the research and study of other country like
Japan, Germany Switzerland, introducing VBWF System was considered as
effective means to activate waste separation for recycling.

Q. What was the difficulty to go forward for implementation of VBWF System?

A: There were many objections from inside out. Concept of VBWF was very new
and most people were skeptical about its success. However, the minster of
environment was supportive and was not afraid of challenge (from the beginning
to the end of VBWF introduction, the minister of environment had changed 3
times). Cooperation from other government department was necessary and it
was very difficult to persuade them.

Q. How did you get support from other department?

A: Waste collection is duty of local government; therefore the cooperation

from local government and ministry of home affair was prerequisite for
the implementation process. I visited administration chief office asking
for their cooperation and support but I did not even have chance to
meet them. However, I did not quit visiting and finally I got a chance to
explain about VBWF to secretary of office, later even to the President.
People asked “Will this work?” and I answered “This will bring huge change to
waste management in a positive way. I will risk my position”

Q. What were the key factors for the successful VBWF System implementation?

A: The strong will and persistence of administration is necessary since

adjustment of conflicting interests is not easy. Therefore, communication
is the most important. If you cannot persuade the public, the policy cannot
be successful no matter how good and well prepared it is. We spent much
time to explain and promote the VBWF System to government officers and
the public. A successful policy is like a hot seller. You have to sell the policy
to the people by convincing them. For that reason we tried to co-work with
NGO’s since they have nation-wide network to communicate with the public.
Secondly, you need a down-to-earth strategy to train public officers who are in
action. We tried to contact a public officer as much as we can. At the beginning
there was hot-line to encourage them.

Chapter 3 Progress of the Volume-based Waste Fee System • 049

 1.2.4 Workshop of the Relevant Civil Servants (June 1994)
With the trial of the Volume-based Waste Fee System, a workshop for the relevant civil
servants was held in June 1994 in Jeju Island, with 330 members of the local government
attending. The interim assessment of the Volume-based Waste Fee System and exemplary
cases were reported, civil servants of related regions, scholars, experts, and journalists were
divided into 20 teams, and 10 issues of problems and improvement of the trial were discussed.

1.3 Preparation for Nationwide Implementation

1.3.1 Establishment of supplementary guidelines (September 8, 1994)
Enforcement guidelines for national implementation that addressed the problems in the
trial were delivered to each of the cities and provinces.

1.3.2 Assessment and Final Inspection

Before expanding the Volume-based Waste Fee System nationwide, the Volume-based
Waste Fee System was assessed and finally inspected. A meeting of related local institutions
was held so that an interim assessment of the Volume-based Waste Fee System can be
conducted by local governments (November 7, 1994). In addition, to assess the preparation
status of local governments, the headquarters and situation room of the Volume-based Waste
Fee System were installed. They were directly connected to 260 local governments, and the
preparation status was checked daily to establish cooperative systems; resolutions were
then for any and all problems identified in the interim assessment (December. 7, 1995).
The resolutions consisted of basic measures to dispose of local recyclable materials that are
expected to increase sharply, emergent year-end transportation period to dispose of massive
wastes that will be discharged before the Volume-based Waste Fee System is implemented,
and methods to supplement human resources for the Volume-based Waste Fee System.
Before the enforcement on January 1, 1995, public promotions such as amendment of related
ordinances, manufacture and management of waste bag, and designation of waste bag seller
were completed. On December 20-23, 1994, 1 week earlier than the nationwide enforcement,
joint inspection was performed by the relevant members in the government and Ministry of
Home Affairs to check the preparation status of local governments and to resolve the problems,
if any.

1.3.3 Public Promotion

The complaints of residents can be summed up as “Why should we pay to dump
our garbage?” To change the old awareness of residents, the most important thing was
a well-planned public promotion. Public promotion through the production and airing of
TV advertisements, newspaper advertisements, and TV discussions were carried out, and

050 • Volume-based Waste Fee System in Korea

promotional materials including VTR tapes, brochures, and posters were manufactured and
distributed. Extensive promotion before the nationwide implementation of the Volume-
based Waste Fee System was inevitable at that time. The government started extensive
promotion using the most popular celebrities, and assessments, public hearings, workshops
of the relevant civil servants, seminars, and symposiums were held continuously.

Figure 3-1 | Promotion in Newspaper

Translation of Figure 3-1

Nature conservation and frugality starts from reducing waste!

“From 95.1.1. Volume-based Waste Fee System will start!”

From coming new year, waste should be disposed in waste bag

Waste will be half, and recycling will be doubled!

Clean environment to our descendent!

Volume-based Waste Fee System, the more you produce, the more you will pay.

Buying waste bag is paying waste treatment fee.

Waste-bag should be used when you discard waste.

Waste-bag is on-sale in designated stores near you.

Environmental Agency

Chapter 3 Progress of the Volume-based Waste Fee System • 051

 Figure 3-2 | Volume-based Waste Fee System Guideline in Park

Translation of Figure 3-2

Guideline on conducting Volume-based Waste Fee System in park

Volume-based Waste Fee System will be in effect from 1995.1.1.

Thanks for the cooperation.

1. Do not throw away or burn waste illegally.

2. Waste should be put in the waste bag and gathered in designated area.

3. Waste bag is on-sale in cafeteria inside the park.

4. Recyclable waste should be separated.

5. There will be a fine under KRW 1,000,000 (about USD 1,000) on violators.

6. Please inform if you find offender who are against the rulse above.

1995. 1.1

Chief manager

052 • Volume-based Waste Fee System in Korea

2. Introduction Stage
2.1 Nationwide Implementation of the VBWF System on January 1, 1995
On January 1, 1995, the Volume-based Waste Fee System was applied to all over
the country; it was the first nationwide Volume-based Waste Fee System in the world.
Germany, Switzerland, and Japan implemented the Volume-based Waste Fee System
earlier, but it was not expended to all over the country. With the Volume-based Waste Fee
System, the existing waste collection fee was substituted with the paid waste bag; the use
of waste bag was limited to the location indicated on the bag. General waste should be
put in a waste bag purchased from the designated seller. The bag should be filled up to the
dotted line, tied, and placed in front of the house. Recyclable materials should be divided
into papers, bottles, cans, and plastics. To dispose of bulky wastes such as refrigerator
and closet, the user should report his/her address, name, type and size of the waste to an
administrative agency and telephone in advance; then, a civil servant visits to collect the
waste and issues a bill.

Figure 3-3 | Newspaper Promotion in Starting Day of New System

Chapter 3 Progress of the Volume-based Waste Fee System • 053

 Translation of Figure 3-3

Waste is result of disorder, laziness and over consumption!

From 95.1.1 VBWF System will be on action in all part of Korea.

In VBWF System, the more you produce, the more you will pay.

Buying waste bag is paying treatment fee.

Waste-bag should be used when you discard waste.

Waste-bag is on-sale in designated stores near you.

Ministry of Environment

Every system has some problems in its early stage, and the Volume-based Waste Fee
System was no exception. In particular, local governments did not have enough time for
preparation because ordinances related to waste fee were passed simultaneously a few days
before the implementation of the Volume-based Waste Fee System, and it was implemented
during the holidays in the beginning of the year when human resources to manage the
System were definitely in shortage. The most important problem was the absence of civil
consciousness. Before the implementation of the Volume-based Waste Fee System, people
dumped waste to dispose of as much waste as possible including bulky wastes such as closet
and refrigerator; as a result, public’s confusion intensified (See Figure 3-4, Figure 3-5).

Figure 3-4 | Newspaper (1994.12.29)

054 • Volume-based Waste Fee System in Korea

 Translation of Figure 3-4

Emergency! Waste is flooding.

Huge amount of waste is discarded before the starting point of Volume-based

Waste Fee System. Especially, Big size electronic waste like refrigerator is stacked up
in nearby hill and vacant lot.

Figure 3-5 | Newspaper (1995.1.6)

Translation of Figure 3-5

Volume-based Waste Fee System need to be informed!

Though Volume-based Waste Fee System is big change in everyday life of citizens,
many people are still in confusion due to lack of promotion and education

Also, There are problems in quality of waste bag and its size.

Chapter 3 Progress of the Volume-based Waste Fee System • 055

 Figure 3-6 | Prime Minster Visiting VBWF System Headquarter (1995.1.14)

2.2 Assessment of the 100 days of the VBWF System (April 1995)
The conference on the 100 days of the Volume-based Waste Fee System held on Apr. 20,
1995 was a forum wherein the Ministry of Environment reported the results and civic groups
and experts evaluated them. Many residents cooperated, and a stable nationwide reduction trend
of the average of 37% (53,546 tons/day→33,841 tons) was recorded. The largest reduction rate
was recorded in big cities, followed by small and medium-sized cities and rural areas.
According to the survey, among 1,000 housewives in various cities 2 months after the
implementation of the Volume-based Waste Fee System, 98.6% said they observed the Volume-
based Waste Fee System thoroughly. The most popular standard waste bag is 10ℓ, followed
by 5ℓ and 20ℓ. They suggested more thorough separate collection and promotion of recyclable
materials and cited the need for more separate collection baskets to institutionalize the system.
The improvement of the waste bag’s standards, establishment of detailed guidelines of
the Volume-based Waste Fee System for public spaces, establishment of waste management
system for sea villages, recycling mark indication system, measures to collect recyclable
materials at the right time and prevent mixing with waste, reinforcement of prevention of
over packing of disposable products, establishment of cleaning system for public spaces,
thorough application of the Volume-based Waste Fee System in public offices, establishment
of guidelines to charge penalty, construction and supplementation of the recycling network,
proper price of waste bag, connection with related institutions including charge and deposit
systems, provision of information on the Volume-based Waste Fee System, and revitalization
of public promotion were suggested as solutions.

056 • Volume-based Waste Fee System in Korea

 2.3 Workshop of the Relevant Civil Servants (November 1995)
In Nov. 1995, a workshop for civil servants related to the Volume-based Waste Fee System
was held to collect their opinions and give commendation to good workers to encourage and
motivate them. In the workshop, various specific guidelines were given based on thorough
advance preparations.

- List of recyclable materials and how to send them out

- Guidelines for the Volume-based Waste Fee System for public spaces
- Guidelines for the Volume-based Waste Fee System for sea villages
- Cases of penalty charge
- Inspection and instruction on workplaces that discharge or treat
massive general wastes
- Thorough management plan for food waste
- Instruction to reduce synthetic resins in the cushioning materials used
to pack home appliances
- Guidelines for works related to the restriction of disposable products
- Considerations when reporting waste recycling (embankment and soil
covering)
- Introduction of the plan to designate waste styrofoam as a recyclable
material.

Table 3-1 | Record of Resolution Made in Public Officer’s Workshop

Our resolution
From 1.1 this year, Volume-based Waste Fee System which was conducted to solve the
waste pollution was successfully conducted with cooperation and active support from
citizens. The result showed dramatic impacts on reducing the wastes disposed of and
increasing the recycling rate.
As public officers who are in charge of implement this system, we want to improve and
develop this system which brought big change in Korean waste management policy to be
one of successful and exemplary case.
1. As we are aware that Volume-based Waste Fee System is a fundamental way to solve
waste pollution in Korea, we will do our best to settle this system as soon as possible.
2. We will be the first to practice Volume-based Waste Fee System knowing the purpose of
this system is to minimize waste generation and maximize recycling.
3. We will disseminate this system as a national lifestyle transformation project that saves
resources.

1995. 11. 9
On behalf of waste management officers

Chapter 3 Progress of the Volume-based Waste Fee System • 057

 3. Institutionalization Stage
3.1 Analysis on the First Year of the VBWF System (1996)
The analysis on the first year of the Volume-based Waste Fee System showed that the total
amount of waste decreased by 27%, and that recyclable materials increased by 35%. Thanks
to the reduced waste and increased recyclable materials, it was possible to save KRW 300
billion as well as save landfills as much as 661,157 m². The foreign press complimented
Volume-based Waste Fee System, with the Japanese media even headlining it. The 1-year
performance of the Volume-based Waste Fee System can be summarized as follows:

3.1.1 Positive Assessment

The implementation of the Volume-based Waste Fee System was an opportunity to
improve people’s awareness of the environment and enabled the environment-friendlier
production, distribution, and consumption of products. Consumers preferred products that
generate less waste and refill products, and companies tried to change their manufacturing
system to produce less waste. As a result, the market share of the recycling industry
increased. In addition, sanitation improved because mice and harmful insects such as roach
were minimized when food wastes are discharged in waste bag.

3.1.2 Negative Assessment

There was a comment that the willingness to observe the Volume-based Waste Fee
System decreased 1 year after its implementation. At the early stage last year, all people,
major media, and private groups participated actively. After 1 year, however, their passion
decreased and discharge of wastes increased again since the fourth quarter.
Secondly, even though people cooperated and participated actively, the support of the
public sector was insufficient, and the recycling infrastructure was inadequate. The problem
of food waste disposal was not resolved due to insufficient technologies to reduce food waste
and process them as animal feed or fertilizer, there was no practical measures to dispose of
workplace waste, which increases more than 10% annually, and recycling treatment was
not good due to inadequate plastic recycling facilities. Moreover, some said that waste
bag sharply increased the use of plastic bag compared to last year and caused secondary
environmental pollution. Plastics used in waste bag should be burned in the incineration
plant or buried in the landfill. When burned, they will cause air pollution; when buried,
however, they will not decay and consequently cause secondary pollution. Other issues
were measures to prevent illegal trash dumping and incineration and insufficient collection
system for harmful municipal waste such as fluorescent light and battery.
On May 7, 1996, the “Conference on the institutionalization of the Volume-based Waste
Fee System” was held in the Grand Theater of the Sejong Center for the Performing Arts to

058 • Volume-based Waste Fee System in Korea

analyze its performance for the first year and discuss improvements. With the sponsorship
of 7 civil groups, experts in the government and civil groups gave presentations, and all
interested parties had a heated discussion.

3.1.3 Supplementary Measures and Improvements

To increase awareness of the Volume-based Waste Fee System, the nationwide
assessment of the first year of the Volume-based Waste Fee System based on private groups,
open performance assessment by the central and local Volume-based Waste Fee System
councils, development of measures and technologies to reduce food waste, nationwide
movement to reduce food waste with religious and private groups, measures to reduce
workplace waste (increase in workplace wastes that should be disposed of by the Volume-
based Waste Fee System, etc.), rationalization of price by increasing the price of waste bag,
and intensive crackdown on illegal waste dumping including ordering the workplace that
discharges harmful wastes more than the standard to set the reduction goal were suggested
as supplementary measures.
In addition, the installation of 9 recycling facilities including facilities to select and crush
plastics in 1996 with KRW 23.1 billion to establish infrastructure of the Volume-based Waste
Fee System, reinforcement of financial support for private recycling companies, development
of decomposable plastic to improve the structure and quality of waste bag, and collection
system for harmful wastes such as fluorescent light and battery were suggested, too.

3.2 Analysis on the Second Years of the VBWF System (1997)

With the Volume-based Waste Fee System, generated waste decreased by 30% and
discharged recyclable materials increased sharply. As a result, it was possible to save KRW
450 billion and landfills of 826,446 m² annually. In the OECD Environmental Performance
Evaluation held in Paris in Apr. 1997, Korea’s Volume-based Waste Fee System had gained
positive attentions and evaluations from various world leaders.

3.2.1 Positive Assessment

The analysis on the 2nd years of the Volume-based Waste Fee System showed that generated
municipal waste decreased by 29.4% and discharged recyclable materials increased by
28.5%. Just after 2nd years of the Volume-based Waste Fee System, our generated waste
per person reached the same level as that of advanced countries. The ratio of recycling
and incineration increased, and reclaimed wastes decreased. Other features did not change
greatly compared to the first year. The implementation of the Volume-based Waste Fee
System caused many positive environmental changes in recycling industries such as the
introduction of the reverse path collection system for packing materials of large products
(home appliances and furniture) manufacturers, replacement of cushioning materials

Chapter 3 Progress of the Volume-based Waste Fee System • 059

 with environment-friendly materials, increased production of slim-type diapers by diaper
manufacturers, use of single packing by baking companies, increased use of environment-
friendly materials by packed lunch companies, reduction of food waste by hotels and large
restaurants, recommendation of shopping basket by department stores, and increased free
gifts for non-packing products.

3.2.2 Negative Assessment

Similar problems in the first year were cited. Some said that, due to the Volume-based
Waste Fee System, no one cleans alleys and neighbor’s houses. Moreover, in 1996, the
waste reduction ratio decreased compared to 1995, the first year of the Volume-based
Waste Fee System.

Table 3-2 | Change in Waste Generation 1994-1996

1994 1995 1996

Total (ton/day) 58,118 47,774 46,194
Recycled (ton/day) 8,927 11,306 11,468
Discarded (ton/day) 49,191 36,468 34,726
Per capita generation (kg/person. day) 1.3 1.05 1.01

3.2.3 Supplementary Measures and Improvements

The supplementary measures and improvements emphasized in the second year were
measures to prevent illegal waste dumping in vulnerable areas such as deteriorated housing
area, hillside housing area, and roadside of shopping district, proper management measures
for harmful municipal wastes such as medicines and fluorescent light, and improvement of
ineffective cleaning affairs of local governments. One municipal waste collector collected
0.96 tons daily and transported 4.5 tons with 1 truck; hence the need to supplement resident
services. Furthermore, the continuous development of technologies to reduce food wastes
and process them as resources such as feed of earthworm was suggested.

060 • Volume-based Waste Fee System in Korea

2011 Modularization of Korea’s Development Experience Chapter 4
Volume-based Waste Fee System in Korea

Contents of the Volume-based Waste Fee System

1. Outline of the Volume-based Waste Fee System

2. Legal Base and Related Policies

3. Administrative Structure and Sharing Roles of Government

 Contents of the Volume-based
Waste Fee System

1. Outline of the Volume-based Waste Fee System

1.1 Theoretical Background and Principles
Solid waste management plan is devised emphasizing the 3R principle of reduce, reuse and
recycle across the life cycle of waste streams and aim to go up the waste hierarchy. Volume-
based Waste Fee System is designed to prevent and minimize generation of waste which
is most favored option in waste hierarchy using economic instrument. In the past, waste
collection fee was charged on a fixed rate through property tax or monthly fee regardless
of the amount disposed. However, with the introduction of VBWF System, households and
small sized commercial sectors are required to purchase specified bags to throw away their
garbage, thus waste collection fee is charged in proportion to the amount thrown away.
Furthermore, by providing free collection service for recyclable waste, incentive is given
for households to separate recyclable items from other solid waste.
Economic instruments make use of market mechanisms and provide important approach
to environmental challenge. They encompass a broad array of policy tools, ranging from
pollution taxes and marketable permits to deposit-refund systems and performance bonds.
Economic instruments are applied across a similarly wide-ranging set of policy sectors,
including land, water and air management, and control or reduction of pollutants. They
either drive up the cost of environmentally harmful activities or increase the returns
from sustainable approaches, thereby creating economic incentives to behave in a more
environmentally responsible and sustainable manner.

062 • Volume-based Waste Fee System in Korea

 Figure 4-1 | The Waste Hierarchy

most prevention
favoured
option
minimisation

reuse

recycling

energy recovery
least
favoured
option disposal

Source : http://en.wikipedia.org/wiki/Image:Waste-hierarchy.phg

The principles which support Volume-based Waste Fee System are as follow.

1.1.1 “Polluter pays” Principle

The “Polluter pays” principle means polluters should compensate for the damages caused
by their destruction of the environment or pollution. As the first environmental principle of
OECD (organization of advanced countries), it is adopted by various countries. OECD’s
recommendation and the Rio Declaration in 1991 stressed that the costs of pollution should
be included in the “polluter pays” principle.

1.1.2. “User pays” Principle

Users who obtain profits from a resource should pay the cost for the loss of resource and
use of such resource and related services.

1.1.3 Principle of Economic Incentive

Charge, fees, and tax are the most popular economic incentives based on the quantity
and quality of discharged waste. The deposit-refund system (receives costs of Waste Fee in
advance and return when collecting wastes) and subsidies are also used.

Chapter 4 Contents of the Volume-based Waste Fee System • 063

 1.1.4 Precautionary Principles
Precautionary Principles (PP) imply that precaution has precedence over healing. With
respect to the Volume-based Waste Fee System, it changes the existing supply-based waste
policy into waste policy based on demand management.

1.2 Operation of the Volume-based Waste Fee System

1.2.1 Target Waste and Method of Discharge

Table 4-1 | The Waste Sources and Target of VBWF System

Use of Cost born

Sources Types of Waste Note
VBWF bag by source
Household waste Yes Yes
Recyclable Waste No No Paper, etc.

Household Urban Bulky Waste No Yes Furniture, etc.

&Small Area Construction/
Commercial No Yes
Demolition Debris
Sector
Food Waste No Yes
Rural Village-level
Agricultural Waste No Yes
Village VBWF
Large Commercial
Manufacture Solid
Sector/Small No Yes 300Kg/day
Waste type
Business

*Note : 1) Although coal ash discarded from households is collected for free, fees are levied for coal ash collection
from business activities at some floriculture and farming houses etc. that still continue to use briquettes
2) Agriculture and fishing villages, other than “eup” and “myeon” located in county areas, are villages
with low population densities.
3) For large-scale retailers etc. that produce more than 300kg of waste per day, worksites are not subject
to obligatory use of the Volume-based Waste Fee System of waste bags. However, application of the
Volume-based Waste Fee System is recommended even for sites that produce more than 300kg per day
for waste that is similar to municipal waste.

On January 1, 1995, the Volume-based Waste Fee System that charges fees for Residential
waste and business waste of small workplace amounting to less than 300kg was expanded
to all over the country. For wastes from work sites with similar characteristics to household
Wastes; the same Volume-based standards and methods used in collecting, transporting,
storing, and processing household waste can also be applied. Note, however, that coal
briquette ashes, bulky wastes, and recyclable materials are excluded.

064 • Volume-based Waste Fee System in Korea

 Under the Volume-based Waste Fee System, wastes should be discharged using a standard
waste bag manufactured and sold by local governments; other wastes should be disposed
of by a third party or manually. Coal briquette ashes should be collected on the designated
regular collection day or based on the ordinances of local governments. Wastes that cannot
be put in a waste bag such as broken glass and styrofoam and wastes discharged plentifully
at once such as construction waste should follow the regulations on the collection, transport,
and disposal of large waste stipulated by local governments.
Waste collection time is set by the local municipality who takes into consideration their
unique conditions. For aesthetic reasons, most municipalities set waste discharging time after
sunset (after 8 p.m) in the evening prior to the day of the waste pick-up. Residents living in
apartments discard their wastes in a collection container within their apartment complex and
regular household residents discard their wastes in front of their home to be collected by
garbage trucks. The discarded wastes are generally picked up between 3 a.m. and 5 a.m.

Figure 4-2 | Discharging Household Waste

For recyclable waste, residents separate the recyclable waste into recyclable item
disposal bins and it is collected regularly at a designated time. With bulky waste such as
home appliances and furniture, residents are required to discard the waste by attaching
appropriate stickers and these stickers can be purchased from local administrative office or
a hauler who collects bulky wastes. For food wastes, apartment residents discard them in
food waste-only container bins and regular household residents discard them in food waste-
only bags. Discarded food wastes are collected by a hauler either everyday or every other
day depending upon municipality’s capability.

Chapter 4 Contents of the Volume-based Waste Fee System • 065

 1.2.2 Discharge of Recyclable Materials
Waste that can be disposed of without waste bags includes recyclables, large-size waste,
and small-scale construction waste etc. Recyclables are separated into 4-5 varieties, including
newspaper and publications etc., separate designated receptacles. Food waste was formerly
disposed of with the general waste, but is now also collected in special receptacles or special
bags, to be composted or otherwise reused.

Figure 4-3 | Separating Recyclable from Householdwaste

Figure 4-4 | Separation Mark for Recycling

(from top-left: paper, carton, glass, metal, aluminum)

066 • Volume-based Waste Fee System in Korea

 In principle, recyclable materials should be collected without cost to reduce generated
waste and revitalize the separation and discharge of recyclable materials. Based on the
equipment and human resources for waste collection in each location, the collection day
of recyclable materials should be set with the independent collection system for recyclable
materials to prevent mixing with municipal waste. In principle, recyclable materials should
be divided into paper, can, bottle, scrap iron, and plastic. If it is difficult due to insufficient
equipment and human resources, they may be divided into 2~3 items. Separated and
discharged recyclable materials should not be mixed with other wastes during transport.
If a private company collects them, the local government should supervise to prevent the
avoidance of uneconomical items.

Table 4-2 | List of Recyclable waste

Categories Items
- Newspaper
- Book, note, paper bag, calendar, packing paper
1. Paper
- Paper cup, pack
- Box (snacks, packaging, others)
- Steel can, aluminum can (drink, food)
2. Cans
- Other cans (butane gas, pesticide container)
3. Bottles - Drinking water bottle, the other bottles
- Scrap iron (engineering utensil, wire, nail, iron board etc)
4. Metal
- Nonferrous metal (nickel silver, styrene, electric wire)
5. Plastics
- Extended - Fruit box, etc.
Polystyrene
- PETE (1) - Drink bottle(coke, soda, juice), water bottle, soy sauce bottle, oil bottle
- Water bottle, shampoo and detergent container, white rice wine
- HDPE (2)
bottle
- LDPE (4) - Milk bottle, rice wine bottle
- PP (5) - Boxes (beer, coke, soju), garbage can, dustpan, water gourd dipper
- PS (6) - Yogurt bottle, shawa bottle
- Cotton
6. Textiles
- Other clothes

7. Waste from - Pesticide bottle

farming village - Waste vinyl for farming
8. Others - Recyclable items depend upon regional situation

Chapter 4 Contents of the Volume-based Waste Fee System • 067

 Separate procedural guideline is set for collecting and treating recyclable waste.
a. Waste Separation
Apartments and other communal residential areas separate recyclable wastes into 5 types,
while typical residential areas separate them into 2-3 types, mainly paper and other recyclable
items. Communal areas are required to designate collection sites and place separate collection
bins for recyclable items in their neighborhood. Residential areas, where placing collection
bins are inconvenient, recyclable waste are collected on a door-to-door basis.
b. Waste Collection
As mentioned above, recyclable wastes are collected either by door-to-door, through
collection bins or at designated areas on a certain date, or by face to face depending upon
the characteristics of the neighborhood and local government’s circumstances. When an
amount of recyclable waste increases, number of collection is adjusted. In communal areas,
5 types of separated recyclable waste are picked up as it is, and in residential areas, it is
collected in 2-3 types of in mixed status.

Figure 4-5 | Collection Systems for Recyclable Waste

Waste disposal & Collection & Purchase &

Separation Separation Treatment
Residents & Local gorvernments Public & private
Commercials & private haulers companies

Final Treatment

Remainder
Apartments, Recycling
house, etc. Separation Plant companies
Commercial (city·gun·gu) valuable
sectors, etc. local government
valuable
valuable

Private collector

068 • Volume-based Waste Fee System in Korea

 1.2.3 Volume-based Waste Fee System for bulky wastes
Bulky wastes mean wastes that can be weighed and identified separately such as home
appliances, furniture, and household items discharged from households and workplace,
including wastes that cannot be put in the waste bag as designated by the head of the local
government. Recyclable bulky waste should be reported to the recycling center operated
by the local government and collected without cost for recycling. Other bulky wastes
should be discharged with a sticker sold by sellers designated by local governments or
reported to the private waste collection company, which charges fees when collecting and
transporting wastes. Nowadays, they are disposed of by the heads of local governments
considering the conditions of the region and convenience of residents. For example, some
local governments announce the discharge of bulky wastes in their homepage, and residents
pay fees for waste collection.
Generated bulky wastes should be collected and transported to storage or a specific place
and stored temporarily. Recyclable materials should be sent to the recycling center or private
recycling agency for repair and recycling. When scrapping, direct landfill should be avoided
as much as possible. They should be disassembled or crushed to reuse recyclable materials.
Other materials should be minimized using various methods including incineration and
burying. Fees for refrigerator, TV set, washing machine, air conditioner, gas oven, spin-
dryer, air cleaner, chest, sofa, desk, table, and piano were determined based on size when
the Volume-based Waste Fee System was introduced. Fees for other bulky wastes are
determined by the heads of local governments considering their type and size.

Figure 4-6 | Bulky Waste Collection

Chapter 4 Contents of the Volume-based Waste Fee System • 069

 Figure 4-7 | Signboard for Waste Bag Sales Shop Disposal

Figure 4-8 | Sticker for Bulky Waste

070 • Volume-based Waste Fee System in Korea

 Figure 4-9 | Types of Bulky Waste (Furniture and Electronics)

1.2.4 Specifications of VBWF Bags

Korea has adapted to using bags over containers for several reasons. In Korea, population
density is high and large number of the population live in apartments and condominiums.
Even regular houses are in close proximity with their neighbors and are adjacent to the road;
thus it is difficult to place large garbage bins in front of the house.
Types of waste collection containers to base rate and billing system are generally cans,
prepaid bags, prepaid tags or stickers. Each system has specific advantages and disadvantages
such as providing economic incentive for waste reduction, assuring stable revenue for waste
agencies simplicity of billing, easy collection of waste, sanitation and budgetary constraints.
For container system, authorities need to set up an inventory and distribution system, which
are expensive to install, and its billing system is more complex. Prepaid bags are more
advantageous since they are relatively inexpensive to implement because residents pay for
the collection and treatment of wastes by purchasing bags and no billing is required. Less
hassle is involved for pre-paid bags because public pays directly for the purchase of the bag
and no billing is required.
Considering Korea-specific housing conditions, budgetary constraints and facilitation of
implementation, Volume-based prepaid bags, instead of containers have been chosen for the
Volume-based Waste Fee System in Korea.
Each municipality can choose the appropriate type, color and materials of the designated
VBWF bags, taking into consideration of their unique situation e.g. treatment facilities
capability, convenience for the residents, environmental suitability, etc. The composition of
VBWF bags are PE (polyethylene), PE with more than 30 per cent of biodegradable resin,
or PE with more than 30 per cent of calcium carbonate. Tension, strength and other specific
standards are set for each bag with different composition. The bag containing calcium
carbonate is primarily used for incineration treatment and biodegradable resin bag is used

Chapter 4 Contents of the Volume-based Waste Fee System • 071

 for food waste compost. The color of the bag for household use should be translucent or
obscure to protect personal privacy. Bags for public use (street cleaning, etc.) are light blue
colored and are not used interchangeably with other VBWF bags. The bags for food waste
disposal should be transparent to avoid mixture of different substances.

Table 4-3 | Composition of VBWF Bags

Composition Primary Usage Note

HDPE Bags for general use
PE
LDPE Bags for general use

AP+starch+LDPE Bags for food waste

Aliphatic polyester
(biodegradable) compost-use only

AP+starch+HDPE Bags for food waste

(biodegradable) compost-use only

Contains more than 30% of

CaCO3+HDPE (LDPE) Bags for incinerator-use
Calcium Carbonate (CaCO3)

notes : There are different quality standards on each composition type, and bags are made in accordance with the
standards.

1.2.5 Price of Standard Waste Bag and Way of Buying

Payment system of the Volume-based Waste Fee in Korea is a direct payment system,
where residents pay for solid waste services by purchasing the standard bags. The cost for
waste treatment is recovered from the sales of VBWF bags. Therefore, the price of a VBWF
bag includes collection, transport, and treatment cost as well as production costs of making
the bag. In principle, the full cost of collection, transport, and treatment should be included
in the price of the VBWF bag. However, the price of bags is gradually increased because
a sudden increase in the waste treatment cost might cause negative side effects. Therefore,
each municipality sets a different rate of burden (resident’s share of the full cost) for the
public depending upon its financial circumstances and treatment cost.
For waste that is difficult to be contained in VBWF bags (i.e. small quantity of demolition
waste debris, bulky wastes, other wastes from business sector), the total treatment cost is
levied on the generator.
The price of waste bag was determined by local councils based on the ordinances
considering the cost of waste disposal, financial status of the local government, and residents’
standard of living. In 1995 when the Volume-based Waste Fee System was introduced,
the burden of residents with regard to waste disposal was 30~40%, which was calculated
by dividing the sales of waste bag by the costs of collection, transport, and disposal of

072 • Volume-based Waste Fee System in Korea

residents’ waste. The price of waste bag was calculated by multiplying the waste disposal
cost perℓ by the capacity of bag and burden of residents, and then adding the production cost
and sales charge of waste bag. The sales charge was calculated by multiplying the waste
disposal cost perℓ by the capacity of bag and burden of residents, adding the production cost
of waste bag, and then multiplying by the ratio of sales charge. Generally, it is around 9%.

Table 4-4 | Calculation of Burden of Residents, Price of Waste Bag and Sale Charge

※ Burden of residents (%)=income from sales of waste bag÷collection, transportation and

treatment cost x100
※ Price of waste bag=waste disposal cost perℓ by the capacity of bagxburden of residents+
production cost of waste bag+sales charge
※ Sales charge=(waste disposal cost perℓ by the capacity of bag)xburden of residents+
production cost of waste bag)xratio of sales charge÷(1-ratio of sales charge)

Waste bag are sold at convenient places designated by local governments such as
management office of apartment and supermarket, with a designation sign installed in
those places. Waste bag is divided into normal bag for households/workplace and public
bag for wastes on roadside streets and alleys. The capacity of a normal bag is divided into
10ℓ, 20ℓ, 50ℓ, and 100ℓ, and that of a public bag, into 50ℓ and 100ℓ. The type of waste bag
diversified later as <table 4-4> .

Table 4-5 | Diversification of Waste Bag in 2003

Usage Capacity
General use 2ℓ, 5ℓ, 10ℓ, 20ℓ, 30ℓ, 50ℓ, 75ℓ, 100ℓ
Public use 30ℓ, 50ℓ, 100ℓ
For Food waste 1ℓ, 2ℓ, 3ℓ, 5ℓ
For plastic bag 3ℓ, 5ℓ

Table 4-6 | Trend in VBWF Bag Prices by Cities (20 Liter Bag Comparison )

(Unit : US$/sheet, %)

95-
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
2004
Seoul 0.27 0.29 0.33 0.34 0.34 0.34 0.34 0.34 0.37 0.35 31.32
Busan 0.28 0.33 0.40 0.58 0.62 0.69 0.75 0.77 0.79 0.81 188.53

Chapter 4 Contents of the Volume-based Waste Fee System • 073

 95-
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
2004
Daegu 0.21 0.31 0.37 0.37 0.42 0.43 0.43 0.43 0.43 0.43 104.76
Inchon 0.21 0.27 0.36 0.37 0.42 0.45 0.58 0.58 0.58 0.58 170.09
Gwangju 0.20 0.24 0.33 0.33 0.33 0.47 0.47 0.47 0.47 0.47 135.00
Daejeon 0.21 0.24 0.30 0.30 0.38 0.44 0.44 0.44 0.44 0.44 105.61
Ulsan 0.25 0.25 0.37 0.37 0.37 0.37 0.37 0.37 0.43 0.43 72.22
Gyeonggi do 0.26 0.29 0.31 0.33 0.33 0.37 0.38 0.38 0.41 0.42 63.67
Gangwon do 0.19 0.22 0.23 0.22 0.26 0.26 0.28 0.29 0.30 0.30 63.44
ChungCheong
0.25 0.26 0.26 0.26 0.26 0.27 0.27 0.27 0.27 0.29 13.83
buk do
ChungCheong
0.19 0.19 0.20 0.20 0.21 0.26 0.31 0.31 0.31 0.31 67.02
nam do
Jeolla buk
0.18 0.19 0.20 0.20 0.20 0.21 0.21 0.22 0.25 0.26 40.66
do
Jeolla nam
0.15 0.16 0.19 0.20 0.22 0.23 0.25 0.25 0.26 0.27 72.08
do
Gyeongsang
0.16 0.17 0.19 0.19 0.20 0.23 0.24 0.25 0.25 0.25 57.50
buk do
Gyeongsang
0.27 0.28 0.31 0.32 0.34 0.38 0.40 0.40 0.41 0.43 56.04
nam do
Jeju do 0.26 0.26 0.28 0.28 0.28 0.28 0.28 0.28 0.32 0.40 54.90
Note : changes are calculated as a percentage change from 1995 to 2004

Figure 4-10 | Waste bag (Front and Back)

074 • Volume-based Waste Fee System in Korea

 1.2.6 Separate Collection of Food Waste
At the time of VBWF System introduction in 1995, food waste was disposed with
other solid wastes through VBWF bags. However, since most food waste is soggy, they
create foul odor, spawns a great amount of leachate in landfills and decreases incineration
efficiency. Since food wastes contain a high degree of organic matters and nutrients, one of
the best solutions is to recycle them in order to obtain value from these organic resources.
Now, food waste is separated in food waste-only collection bins or food waste-only bags,
and collected by municipalities or haulers. Starting in 2005, direct land-filling of food waste
generated in urban areas is completely banned.
Separate collection and recycling obligations for food waste has been enforced since
1997 mainly for large-scale food waste generators such as restaurants and group-meal
facilities in the beginning. However, the system has now been expanded to small-scale
generator and regular households.

Figure 4-11 | Food Waste Bag

Chapter 4 Contents of the Volume-based Waste Fee System • 075

 Figure 4-12 | Collected Food Waste Unladed to the Treatment Facility

1.2.7 Financial Independence

The financial independence of the cleaning budget is calculated by dividing the total
profits from the sales of waste bag and recyclable materials, fees for the disposal of bulky
waste, and penalties by the annual waste disposal cost as shown in the following formula.

Table 4-7 | Calculation of Financial Independence

profits
profits from fees for the
from the
The financial = the sales of + + disposal of + etc(penalty)
recyclable
independence waste bag large waste
materials
the annual waste disposal cost

Generally, total profits such as sales of waste bag and recyclable materials and fees for
the disposal of bulky waste are smaller than the annual waste disposal cost. In addition,
the price of the public waste bag used when cleaning roads and parks as well as the free
waste bag for the low-income group was paid by local governments with tax. Therefore,
the expenditure exceeds profits, and local governments used tax to cover the shortage such
as cost of carrying into the final disposal facilities. As a result, the financial independence
of the cleaning administration was relatively low owing to the fixed fees and commissions
lower than the actual cost of collection. Though the government invested a considerable
budget annually, this problem should be studied and improved continuously.

076 • Volume-based Waste Fee System in Korea

 1.2.8 Crackdown for the VBWF System
a. Preventing Illegal Dumping
In cases when designated VBWF bags are not used and wastes are disposed indiscriminately
in inappropriate places (i.e remote hill areas) or illegally incinerated, a maximum fine of 1
million won (USD 900) is imposed on the violator. Compulsory education for the violator
and delayed collection of waste are also enforcement tools. In order to monitor illegal
behavior, members of local environmental group and citizen’s movement are designated
as monitoring personnel. Supervision-specialists are also employed for longer period
monitoring. Municipalities operate pollution report centers, too.
Crackdown is executed in 2 ways. A surveillant hid in a vulnerable place where non-
standard waste bag is dumped frequently (behind the telephone pole, wall, empty land, etc.)
to find violators and charge penalties (First offense: KRW 10,000, Second offense: KRW
20,000, Third offense: KRW 50,000). With this method, however, the surveillant should
wait for a long time because it is hard to anticipate when the violator would dump waste.
The other way is to leave non-standard waste bags during a certain period and then
form squads (2~3 people in 1 squad) to check waste and find the violator. This method
caused some problems including the displeasure of civil servants when searching waste and
conflicts with the violator when charging the penalty.

Figure 4-13 | Public Officers Checking the Content of Waste Bags

Chapter 4 Contents of the Volume-based Waste Fee System • 077

 Figure 4-14 | Illegal Dumping

Figure 4-15 | Illegal Dumping Captured in Security Camera

Those who dumped garbage illegally were tracked down and penalized according to the
law in order to support the legality of garbage discharge system. All employees in district
and sub- districts were assigned to the morning shift, afternoon shift, and nighttime shift, so
that illegal dumping or disposal of garbage could be detected any time.
The crackdown on illegal dumping of garbage became even more effective as the footage
from a security camera (See Figure 4-15), capable of monitoring illegal dumping activity

078 • Volume-based Waste Fee System in Korea

even during vulnerable hours, was used as evidence. Furthermore, the words about the
positive effect of surveillance camera operation spread to the surrounding regions.
b. Rewards for Reporting Illegal Waste Dumping
Anyone found throwing away garbage without using VBWF bags or illegally burning
waste is imposed with maximum of 1 million won (US$ 1,000) of negligence fine in
accordance with the Waste Management Act.
Since imposition of fines for unlawful activities has its limitations in effectively preventing
such behaviors, the reward system for reporting unlawful activities was introduced in 2000.
Anyone who reports unlawful activities is paid as much as 80 per cent of the fine charged to
the violator. This system contributed to expanding the social awareness on preventing the
indiscriminate dumping of wastes.
Members of citizen’s groups and environmental NGOs are appointed as the voluntary
monitoring group for unlawful dumping. Unlawful activities can be reported through
environmental pollution report center or through the internet.
c. VBWF System for Public Areas
Unlike residential areas, public areas such as public parks, amusement parks, tourist
resorts, mountain paths, stadiums and beaches do not generate waste on a regular basis, and
for this reason, a system different from that of residential areas is needed.
If the entrance fee to the location does not include waste treatment cost, visitors are
required to directly purchase VBWF bags and if the cost for waste treatment is included in
the entrance fee, then VBWF bags can be handed out to visitors or have the garbage cleaned
by the manager of the facility. In particular, for mountain paths and amusement parks, large
waste container bins and recyclable item containers are installed in easily accessible areas.
In public areas where VBWF is not administered, mayors or heads of local governments
can require the visitors to take back the garbage they have generated or, in an inevitable
case, place collection containers for recyclable and regular waste at a convenient location
where it is easily accessible.
d. Incentives for Reducing Waste
Various incentives are provided to the municipalities to further promote separation of
recyclable wastes and reduction in waste generation, because recyclables are often found in
regular trash bags from household and commercial sector. By measuring the changes in the
quantity of wastes transported to landfill/treatment facilities, one can measure the performance
of local municipalities in reducing waste and promoting recycling. The measurements are
usually done by comparing the amount of the waste transported to the landfill in the current
period with data from past periods (i.e, quarterly, half year, annually), while taking into
consideration the changes in the population, occurrence of natural disasters, etc.

Chapter 4 Contents of the Volume-based Waste Fee System • 079

 Incentive schemes are usually overseen by managers of municipal landfills and incinerators in
large municipalities. Rewards include reduction in tipping fee, commendation or other personnel
and career benefit for the local municipality as a whole or the specific official or the citizen.
e. Appointment and education of honorary Volume-based Waste Fee System squads and
public awareness program
Problems in the settlement of the Volume-based Waste Fee System include the
noncooperation of residents (using non-standard waste bag) and limitation of crackdown by
civil servants. As a result, some local governments organized the honorary Volume-based
Waste Fee System squads to make residents supervise illegal waste dumping by themselves.
They had education for 90 minutes daily for 21 days, and borough offices prepared slides as
education materials. These slides contained 130-minute long video showing neglected wastes,
waste collection in front of doors, collection of recyclable materials, and waste landfill. Local
governments also produced and distributed cleaning pamphlets and invited the head and
5 members of an environmental movement organization. These efforts received positive
responses by giving the honorary squad a rare opportunity to experience environmental
education and have a good opportunity to improve their environmental awareness.

Figure 4-16 | Landfill Field Trip and One-day Experience on Waste Separation

080 • Volume-based Waste Fee System in Korea

2. Legal Base and Related Policies
2.1 Waste Management Act
According to Article 13 of the Waste Management Act, matters related to municipal waste
should follow the ordinances of local governments. Therefore, legislation and amendment
were not needed when introducing the Volume-based Waste Fee System. Instead, the
government established a waste management manual containing the details of the Volume-
based Waste Fee System and used it as a standard to enact ordinances of local governments.

2.2 Waste Management Guideline (1994)

In 1994, the Ministry of Environment distributed guidelines for waste fees in the Volume-
based Waste Fee System to help local governments in their legal, administrative, and
financial preparations before the implementation of the nationwide Volume-based Waste
Fee System. The manual describes methods to discharge wastes that should be disposed
of by the Volume-based Waste Fee System, type and size of waste bag, manufacture and
management of waste bag, price of waste bag, application of the Volume-based Waste Fee
System in public spaces, reduction of fees for the low-income group, and matters related
to illegal waste dumping. Matters that should be prepared by local governments before the
introduction of the Volume-based Waste Fee System include the establishment of exclusive
organization, procurement of budget, measures to collect recyclable materials, establishment
of ordinances, manufacture of waste bag, education for civil servants, public promotion, and
operation of the self-initiated surveillance squad (Refer Appendix for main content).

2.3 Supporting Policies of Volume-based Waste Fee System

Table 4-8 | Resource Circulation Policy in 1990s

Classification Policy
- Reducing package
- Volume-base waste fee system
Reduce
- Purchase of disposable plastic bag
- Disposable product restriction
Reuse - Use of recycled material
- Waste Deposit System
Recycle - Waste charge system
- Extended Producers Responsibility System

Source : Korea Foam-styrene Recycling Association

Chapter 4 Contents of the Volume-based Waste Fee System • 081

 As stated before, VBWF policy aims at reducing waste at the source, promoting waste
separation and recycling of waste that are inevitably generated. Thanks to VBWF System,
generation of waste decreased and recycled waste increased. However it is better to say 3R
policy of government in 1990 as a whole contributed to this decrease in waste (Table 4-8).
The Volume-based Waste Fee System was implemented in connection with other recycling
policies. Separate collection, a prerequisite to the Volume-based Waste Fee System, became
compulsory in 1991. Other waste policies implemented in the 1990s to support the Volume-
based Waste Fee System were as follows.

2.3.1 Control over the use of disposable products (1994)

Figure 4-17 | Control Over Disposable Goods

The control over use of disposable products was carried out in accordance with Article
10 of Act on the Promotion of Saving and Recycling of Resources. Restriction on the use
of disposable items is a policy that promotes the use of re-usable and environment-friendly
materials. This scheme bans the use of disposable knife, spoon and chopsticks, toothbrush,
and containers at specific businesses or locations, and restricts the free distribution of vinyl
bags and disposable cheering tools. Especially, banning free distribution of disposable vinyl
bag is effective in curving the rapid growth in the use of vinyl bags in markets. Currently,
disposable vinyl bags are sold in markets at 20-50 won (US$ 0.02-0.04) per sheet in order
to reduce its use and to promote the use of re-usable grocery basket. It charges a deposit to
the disposable plastic bag that used to be supplied without cost, and customers can get back
the deposit by returning the plastic bag.

2.3.2 Operation of recycling centers (1995)

As a private group organized by the owners of recycling centers, the Korea Life
Resources Recycling Association was founded in Mar. 1995. The Association collects
electronic products used in households and offices (TV, refrigerator, washing machine,

082 • Volume-based Waste Fee System in Korea

electric fan, etc.), furniture (electronic products, sofa, bed, desk, etc.) and sporting goods
without cost, repairs and sells them as secondhand goods, or donates them to orphanages
or nursing homes.

2.3.3 Preferred purchase of recycling products by public institutions

(1992)
To revitalize the reduction of wastes and facilitate recycling by revitalizing the purchase
of recycling products, the preferred purchase of recycling products by public institutions
was enforced in accordance with Article 32 of the Act on the Promotion of Saving and
Recycling of Resources. According to this act, public institutions should preferentially
purchase the recycling products announced by the Ministry of Environment.

2.3.4 Financial support for recycling industry (1993)

To establish infrastructure for poor recycling companies, resolve difficulties in securing
recycling facilities, and revitalize the recycling industry, Korea Environment and Resources
Corporation (now Korea Environment Corporation) has provided long-term, low-interest
loans to revitalize the recycling industry to support the installation of recycling facilities,
technical development, and stable management.

2.3.5 Reduction of food waste (1994)

A nation-wide campaign for ‘Food Table with Less Waste’ was introduced in 1992, and
a mandatory eduction quota has been imposed on restaurants since 1994. It has become
obligatory to build facilities for food waste resourcification in residential areas and tourist
sites since December 1997. Beginning from January 2005, direct landfill of food waste has
been banned in all cities.

Figure 4-18 | Food Waste Reduction Promotion Poster

Chapter 4 Contents of the Volume-based Waste Fee System • 083

 2.3.6 Recycling of packing materials (1993)
Article 10 of the Regulations on the Standard for Methods and Materials of Product
Packing stipulated the products that should use refill containers as part of packing.
Manufacturers of those products should use refill containers according to the specified ratio.
Policy on restricting excessive packaging not only prevents unnecessary waste from being
generated through the reduction in packaging layers but also promotes the gradual phase-
out of polyvinyl packaging and the replacement with paper materials.

3. Administrative structure and sharing roles of government

3.1 Role of the central government (Ministry of Environment)
3.1.1 History of the Ministry of Environment and waste-related
departments
As environmental problems worsened, the Ministry of Environment was spun off
from the Environmental Office in 1980. At that time, waste works were performed by
the waste department in the Water Quality Management Bureau. On December 29, 1986,
to resolve the problem of Waste Fee, which was aggravated by the increase in various
wastes, the Department of Waste Disposal was expanded and reorganized as the Office
of Waste Management with 3 sub-departments. In 1990 when the Environmental Office
was upgraded as the Environment Agency, the Office of Waste Management was expanded
and reorganized as Institutional Waste Department, General Waste Department, Specific
Waste Department, Department of Waste Recycling, Harmful Materials Management
Department, and Soil Conservation Department. In addition, to facilitate the recycling
of discarded resources and conservation of the natural environment, Korea Resource
Recycling Corporation was founded on September 11, 1980. in accordance with Article 5
of the Compound Waste Treatment Corporation Act. Environmental works were performed
by related departments. In particular, the utilization of discarded resources was carried out
by the Ministry for Energy and Resources, with the collection/disposal of general waste
in the special cleaning area and installation/management of public toilet performed by the
Ministry of Home Affairs. The management of organs extracted in hospitals was done by
the Minister of Health and Social Affairs, and the transport/treatment/disposal of nuclear
materials and radioactive waste, by the Ministry of Science and Technology. In Dec. 1994,
the Environment Agency was upgraded as the Ministry of Environment. At the same time, the
Office of Waste Management was renamed Department of Wastes and Resources consisting
of the Department of Waste Policy, Department of Waste Management, Department of
Waste Facilities, and Department of Waste Recycling (See Table 4-9).

084 • Volume-based Waste Fee System in Korea

 3.1.2 Implementation of the Volume-based Waste Fee System and
role of the Ministry of Environment
The role of the Ministry of Environment in the implementation of the Volume-based
Waste Fee System was to implement the Volume-based Waste Fee System in cooperation
with local governments. For this reason, the Ministry of Environment cooperated with the
Ministry of Home Affairs, which carries out the collection/disposal of general waste, and
local governments cooperated.
A. Creation and distribution of guidelines for the Volume-based Waste Fee System
B. Regular inspection of executive agencies
- Report the amount of generated waste.
- Inspect and report illegal waste dumping.
- Operate an exclusive department to inspect the status of the Volume-based Waste
Fee System.
C. Award exemplary cases and provide financial support.
D. Evaluate and analyze policies and summarize solutions.

Table 4-9 | Waste Related Departments in MOE in 1995

Dept. Functions
Establish basic plan for wasteMake policy on waste prevention
Waste policy from it’s source and reductionOperation of waste treatment
charge system
Establish basic plan for waste treatment Waste treatment
Waste management standard and method Waste transportation and treatment
between countries.
Establish basic plan for building waste treatment
facilitiesBuilding and managing public waste treatment facility
Waste facility
and Conducting EIA around waste treatment facility areas and
establishing support policy for local people
Establish waste recycling planSupport waste recycling
Waste recycling industry Support developing recycling technology and building
recycling facilities

Chapter 4 Contents of the Volume-based Waste Fee System • 085

 3.2 Role of Local Governments
As in other countries, waste management in Korea is a matter for local governments.
Before the enactment of the Wastes Control Act in 1986, local governments independently
handled waste management, i.e. waste collection according to the “Wastes Cleaning Act.”
However, when the local autonomy system was introduced in the early 1990s, waste
management, waste reduction and recycling became more difficult and complex.
Prior to the introduction of the local autonomy system, the central government was
to some degree able to mediate when regional disputes arose regarding issues like the
construction of wastes processing plants through its hiring authority over local governments.
However, after the local autonomy system took effect the central government’s authority
declined significantly, and conflicts between central and local governments and among local
governments expanded rapidly. The introduction of the local autonomy system provided an
opportunity for local governments to engage in disputes with both local residents and each
other regarding the installation and operation of environmental infrastructures like waste
treatment plants. The number of disputes thus rapidly increased.
Around the time of the introduction of the local autonomy system, the budget for waste
management increased dramatically. This was to respond to greatly increased demand for
sanitary waste treatment facilities. At the time, demand for fundamental improvements on
the existing waste treatment facilities was overwhelming. Up to 1994, local governments
had operated only 536 landfills. However, most of these were small operations, and
the sanitary landfill rate was less than 60%. There were only 11 sanitary landfills with
leachate processing facilities, or 2% out of the nation’s total. After conducting Volume-
based Waste Fee System, officers who are in charge of waste management became very
active on their work.
The revival of the local autonomy system along with budget increases marked a change
in waste management policy in Korea. In fact, it is no exaggeration to say that the core of
current waste management policies of Korea was formulated from 1991 to 1995 owing
to the introduction of the local autonomy system. The Ministry of Environment without
cabinet seat was upgraded to the Ministry with cabinet seat in 1994, and the former “Waste
Management Bureau” was reorganized into the “Wastes &Resources Bureau.”
In fact, the duty which deals with waste were not very popular among public officers but
the VBWF System gave officers self-esteem on working. Also, local government became more
sensitive about the needs of local residents and this brought improvement on waste management
administration. The specific work descriptions of local government are as follows.

3.2.1 Devise Measure to Collect and Dispose of Recyclable Materials

For the effective disposal of recyclable materials, which are expected to increase sharply,
the selection and gathering place, human resources, and equipment should be reinforced;

086 • Volume-based Waste Fee System in Korea

there is also a need to cooperate closely with the recycling companies of Korea Resource
Recycling Corporation (now Korea Environment Corporation).

3.2.2 O
 rganize an Exclusive Department for the Volume-based Waste
Fee System
Human resources to perform works related to the Volume-based Waste Fee System such
as the manufacture/management of waste bag should be increased. Organize an exclusive
department to manage recyclable materials, which are expected to increase sharply due to
the Volume-based Waste Fee System

3.2.3 Secure Budget

Include the budget for the Volume-based Waste Fee System in the revised supplementary
budget to execute it effectively. The required expenses are the costs to manufacture the
standard bag, environment calendar, guide sign, and promotion materials and cost to secure
cleaning facilities and equipment, install selection and gathering places, and visit pilot areas.

3.2.4 Enact Ordinances

Enact ordinances as soon as possible considering the period to announce legislation
and explain the purpose of the system to local residents and members of the local council
and the promotional period based on the standard to enact ordinances on the discharge of
general waste and charge of fees.

3.2.5 Manufacture and Distribute Waste Bags

Local government is responsible for manufacture and distributes waste bags.

3.3 Role of Civic Group

The most important factor for successful implementation of this system was cooperation
of public. And NGO-YMCA, YWCA, Korean Federation for Environmental Movement,
Citizen Society for Solving Waste Problems etc.-has played important part to raise
awareness about VBWF System and its implementation. The key point was ownership of
pubic about VBWF System.
To ensure maximum cooperation of civic groups in enforcing the Volume-based Waste
Fee System, it was vital to induce them to take initiatives.
Civic groups must partake in the process from the designing process of the Volume-
based Waste Fee System to embrace the ideas from various fields and be involved in the

Chapter 4 Contents of the Volume-based Waste Fee System • 087

 designing and scheduling process of the enforcement plans (preliminary and preparatory
steps, action plans for each step, decision on methods, etc).
Regional managers at civil groups need to be induced to grasp regional characteristics
(behavioral characteristics of residents, characteristics of residence, waste discharge
practice, etc) and report on the methods for implementing the Volume-based Waste Fee
System suited to the realities facing respective regions. The government needs to be induced
to adopt the methods suitable for specific situations of regions and provide support for all
necessary preparations (type of discharged waste, method for the discharge, installation of
garbage containers, entity responsible for waste collection, frequency (cycle) of collection,
method for collection, etc).
As a preparatory step, roles need to be assigned for the promotional drive to raise
awareness, which upon the implementation must be followed by the deployment of
monitoring personnel responsible for observing and reporting on the roles that public
servants of local governments are playing and their attitude, pattern of residents’ waste
disposal, compliance with the requirements under the garbage separation and collection
system, involvement and cooperation, and complaints and others.
Above all, the government must not play the leading role, and most importantly, the
Volume-based Waste Fee System must be accomplished by civic groups, and the civic
groups have the mandate to help make this system take root.

088 • Volume-based Waste Fee System in Korea

 <Interview> National, strategic partnership between civic group and
government is key for successful environmental policy

Kim, Mi-hwa

(NGO activist, Citizen Society for Solving Waste Problems in

1995)

Q: How NGOs joined government policy when VBWF System was introduced?

A: In 1990, politically, Korean democracy movement was in full bloom and people
started to speak out on social issues. At that time, Korea was suffering from
serious pollution and there was strong criticism on government environmental
policy. Economic development was the first priority of nation and NGOs and
Mass media was in one accord to point out its negative effect. The 1990s was
the time civic group movement was activated as ever before and had influence
on formation of public opinion. When VBWF System was first introduced, NGOs
joined to evaluate the feasibility of VBWF System by request from government.
Since civic group was usually against government side, it was very rare to find
these two groups working together.

Q. What part did NGO play in implementing VBWF System?

A: Before 1990, civic group movement was in small scale in each local community.
However, when big environmental issue became a matter of common interest,
there was need for organizing and networking local civic group to speak out. And
the problems of local community could hardly reach the central government and
the central government could not take action to solve the problem from lack
of information. The networking of NGO nation-wide started and this was why
government wanted to work with NGOs to utilize this network to promote and
evaluate VBWF System.

Q. What was the difficulty you experienced during that time?

A: VBWF System was central government policy and local government officers
were indifferent about it. It was troublesome task to add more work to them.
Convincing the public was tough job. Promotion, education and awareness
survey was keep conducted to inform and notify new policy.

Chapter 4 Contents of the Volume-based Waste Fee System • 089

 Q. What were the keys for success of VBWF System?

A: Citizens were cooperative to new policy. Survey result showed people were ready
to live with discomfort caused by VBWF System. Using nation wide network
for promotion can be one of the reasons. And above all, partnership between
government and civic group was the key for success. This unusual relationship
made mass media to focus on new policy which naturally lead to effective
promotion.

090 • Volume-based Waste Fee System in Korea

2011 Modularization of Korea’s Development Experience Chapter 5
Volume-based Waste Fee System in Korea

Performance and Improvement of Volume-based

Waste Fee System

1. Decrease in Generated Waste

2. Improvements

3. Model Cases of Volume-based Waste Fee System

 Performance and improvement of
Volume-based Waste Fee System

1. Decrease in Generated Waste

After the implementation of VBWF in 1995, the generation of municipal solid waste
(MSW) has declined dramatically. The quantity of MSW generated fell from 58,118 ton/day
in 1994 to 47,774 ton/day in 1995 showing 17.8 percent reduction. Quantity of waste was
dropped by 4.1 percent in 1997 and 6.9 percent in 1998. During the period of 1994~2001,
waste generated decreased by 16.6 percent total and 2.4 percent annually. The waste
generation decreased more in the first three-year period of the VBWF enforcement than the
latter three-year period. Waste generation per person per day was 1.30kg in 1994; 1.06kg in
1995; 1.10kg in 1996; 0.96 kg in 1998; 0.98kg in 2000.

Table 5-1 | Waste Generation 1994-2000

(Unit: ton/day)

1994 1995 1996 1997 1998 1999 2000

Total 58,118 47,774 49,925 47,895 44,583 45,614 46,438
Recycle 8,927 11,306 13.085 13,907 15,566 17,394 19,167
Final
49,191 36,468 36,840 33,988 29,017 28,220 27,271
treatment
Generation
1.33 1.07 1.11 1.05 0.96 0.97 0.98
per capita

Source : Korea Environmental Policy Bulletin, Volume-based Waste Fee System (2003)

092 • Volume-based Waste Fee System in Korea

 Figure 5-1 | MSW Generation Per Capita

(kg/day/preson)
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0
Year
99
00
01
94
95
96
97
98
19
20
20
19
19
19
19
19

Figure 5-2 | MSW Generation Total

(ton/year)
60000

50000

40000

30000

20000

10000

0
Year
00
01
94
95
96
97
98
99
20
20
19
19
19
19
19
19

Source : Korea Environmental Policy Bulletin, Volume-based Waste Fee System(2003)

Chapter 5 Performance and improvement of Volume-based Waste Fee System • 093

 Discharged municipal waste decreased sharply after 1995 when the Volume-based
Waste Fee System was implemented. For 6 years until 2000, the Volume-based Waste
Fee System realized a decrease in generated waste by 37,720,000 tons (6,290,000 tons/
year) and increase in discharged recyclable materials by 13,460,000 tons. Compared to
the past (1994), generated waste decreased by 44.6%, recyclable materials increased by
114.7%, and generated waste per person decreased to 0.98kg day/person (See Table 5-1).
The largest waste reduction was recorded in big cities, followed by small and medium-
sized cities and rural areas.

1.1 Increase in Generated Waste and Increase in Recyclable

Materials

Figure 5-3 | Trend of Recycling Rate by Year

Rate of
Recycling(%)
45
40
35
30
25
20
15
10
5
0
1994 1995 1996 1997 1998 1999 2000 2001 Year

Source : Korea Environmental Policy Bulletin, Volume-based Waste Fee System (2003)

Recycling ratios increased from 15.4 to 41.3% due to the increased recycling of food
waste, etc., and landfill decreased drastically (See Figure 5-3). Quantity of recyclable waste
was 8,927 ton/day in 1994 and increased to 11,306 ton/day in 1995 (27% increase). Recycling
rate was 15.4 percent in 1994 and 23.7 percent in 1995. The quantity of recyclable waste
generated has increased as much as 11,995 ton/day (134%) during the past 7 years. Food
waste recycling has increased from 9.8 percent in 1997 to 56.8 percent in 2001 since the
implementation of food waste separation requirement in 1997. The number of households
that dump food waste into collection bins or plastic bags grew to 8.7 million (57%) in 2001.
Recycling facilities were also expanded to process 5,347 tons of food waste per day.

094 • Volume-based Waste Fee System in Korea

 1.2 Expansion of the Environmental Industry and Improvement of
Public Awareness of the Environment
With the quantity of recyclables increasing drastically, and remaining stable thereafter,
development of industries and technologies for recycling became increasingly visible.
Collection of recyclable waste, including paper, cans, and plastic increased; and with
this stable supply of recyclable resources, recycling businesses and better technologies
grew and developed. The competitiveness of the recycling industry also improved. The
development of hi-tech materials such as decomposable bag was realized, and there was
a trend in manufacturers and distributors to change their production and sales systems to
reduce wastes such as decrease of excessive packing.

1.3 Improvement of Public Awareness of the Environment

With the Volume-based Waste Fee System, people tried to reduce waste in their own
life. A lifestyle to reduce waste was adopted, such as using shopping basket, reducing food
waste, removing packing materials when purchasing, and reducing disposable materials.
In addition, the repair of large furniture and home appliances and exchange of children’s
toys were revitalized.
The consciousness of consumers and producers alike, which had previously been economy
focused, shifted to the reduction of wastes at sources. Consumers, by gaining the economic
perception that throwing out wastes were like throwing out money, began to prefer products with
less packaging, including “refill” products. When purchasing products, consumers increasingly
eschewed packaging like styrofoam, and housewives increasingly used shopping baskets instead
of vynil bags. Producers also greatly increased their production of refill products that reduced
waste output, and made strong efforts to reduce volume in their packaging materials.

1.4 Other Effects

The financial independence of the cleaning administration increased from 14% in 1994
to 29.6% in 2000. As a result, it was possible to improve the cleaning service for people
and secure funds to dispose of waste sanitarily. Civil servants related to cleaning works
became enthusiastic and waste management administration was advanced thanks to the
improvement of institutions for each local government to resolve the complaints of residents
and enhance cleaning services.
Waste collection services, i.e. clean up administration, also showed improvements. The
introduction of a Volume-based Waste Fee System changed the system from the previous resident
unloading method to a door front system, resulting in enhanced convenience for residents. In
particular, collection cycles of waste were diversified, while waste management administration
was upgraded and modernized through diverse systemic improvements appropriate to the local
governments, reducing resident inconvenience, and improving cleanup administration services.

Chapter 5 Performance and improvement of Volume-based Waste Fee System • 095

 Sights of community activities such as cleaning the neighborhood area, sweeping snow
during the winter season, and picking up garbage in public parks and other community
areas were slowly disappearing. Although there are many reasons behind the disappearance
of such community activities, difficulty in throwing away garbage could have contributed.
Therefore, in order to promote community activities in cleaning up their neighborhood,
local governments can distribute VBWF bags at free of charge when cleaning public areas
or plowing away snow at community areas.

2. Improvements
2.1 Bio-degradable Bags
Use of biodegradable bags is recommended to reduce adverse environmental impacts
of the non-degradable polyvinyl bag. It is also recommended to use biodegradable vinyl
in various packaging materials to reduce quantity of non-degradable polyvinyl wastes. A
program to discount tipping fee for landfill to the municipalities, which use biodegradable
VBWF bags is under consideration in order to expand the use of biodegradable bags.

2.2 Responsibility for Maintaining Cleanliness

Deserted garbage is often found in vacant lots in urban areas after introduction of the
Volume-based Waste Fee System. In order to prevent the piling-up or throwing out of
wastes in the neighborhoods of housing areas, responsibility for maintaining cleanliness
was introduced in each city or town. Cases of piled up wastes left for a long period of time
harm the atmosphere of a city, and ruin its sanitary conditions.
Under this scheme, mayor or the head of provincial and local government can issue an
order to the owner of the land or premise to clean-up deserted waste or incinerated (burnt)
waste. If the order is not complied within a month of issuance, the owner of the land can be
fined for act of negligence.
This scheme was introduced through the article 7 of the Waste Management Act in 1999.
The Act emphasizes the need for cleanliness of buildings and lands and mandates necessary
actions to be undertaken if cleanliness is not maintained. After the enforcement of this
scheme, many exemplary cases of improvement of vacant lots has been on the rise through
such activities as growing of flowers or turning the vacant lot into a parking space.

2.3 Re-usable Bags

Even though free distribution of disposable vinyl bags at grocery stores has been
restricted since 1999, about 15 billion sheets of vinyl bags are still being used every year. In
order to further reduce the use of vinyl bags, re-usable VBWF bags were introduced in July
2002. Re-usable VBWF bags can be purchased at the grocery stores to carry the purchased

096 • Volume-based Waste Fee System in Korea

goods and later use it as regular VBWF bags when disposing garbage. The use of vinyl
bag to carry purchased goods can thus be reduced. The re-usable VBWF bags are designed
pleasantly with convenient hand straps for easy carrying (See Figure 5-4).

2.4 Separate Collection for Disposable Vinyl Bags

Disposable vinyl bags are being used in excessive amount and 5-15 sheets of vinyl bag
are founded in a 20-liter size VBWF bag disposed by households. Since such over-use of
vinyl bags harms stability of the landfill sites, a system has been established for separate
collection of disposable vinyl bags. Vinyl bags are collected separately either for free of
charge or for charge according to each community’s circumstances.

Figure 5-4 | Introduction of Reusable Bag18

18 <Translation of figure 53> Do you know reusable bag? You did not bring shopping basket? Then I
recommend reusable bag instead! After shopping you can use bag as waste bag at your home!

Chapter 5 Performance and improvement of Volume-based Waste Fee System • 097

 3. Model Cases of Volume-based Waste Fee System
3.1 [Case 1] Dobong-gu, Seoul
Basically, the waste collection from apartment complexes made independently by
residents while those living in ordinary residential area require district office to be actively
involved in the collection and disposal of garbage.

3.1.1 Professional Collection System

Garbage collection team was organized in respective sub-districts, and 1 cleaning
personnel and 1 driver were assigned for the duty of collecting recyclable waste on
the road. The person in charge of waste management from office also joined them. In
addition, they entered into a business relationship with recycling shops. Professional team
members brought necessary equipment and collected recyclable materials nimbly and
sold the recovered materials to the shops. The profitability was maximized and residents’
involvement increased.
.
3.1.2 Compensation for Recyclable Materials
The Volume-based Waste Fee System is a very inconvenient system from the perspective
of residents although the system represents a right way of waste separation and collection.
It does not make any sense if the recyclable materials-- which residents separated from trash
with much effort and focus-- are to be offered free of charge while they are asked to bear
inconvenience arising from the system. In Dobong-gu, separated waste could be exchanged
for free toilet paper.

3.1.3 Separation of 5 types of Recyclable Waste

Recyclable waste is separated into 5 types (newspapers, scrap paper, milk cartons, bottles,
metals). Collected waste could be sold at the recycling shops immediately upon collection
by the authorities while increasing the convenience of residents at the same time.

3.1.4 Daily Collection Drive in One Single Zone

Not pursuing the one-size-fits-all approach to the waste collection based on sub-districts,
flexibility was added to the collection process to ensure adjustment of collection methods
and schedules, etc. In other words, they divided the entire sub-district into 5 zones and
focused on the promotional drive and waste collection in 1 zone a day, not covering the
whole zones at a time. They led the personnel not to collect improperly discharged garbage
at the door and induced the residents to load the garbage bags onto the truck when they hear
the logo music

098 • Volume-based Waste Fee System in Korea

 3.1.5 Collection and Selling on the Same Day
As the recyclable materials were collected in the morning and sold in the afternoon,
the recyclable waste selection yard became no longer necessary. The recovered recyclable
materials are sold directly to the private recycling shops, not the public recycling companies,
etc; hence, the profit were maximized and returned to the residents.

3.1.6 Implication
The key driver for the success was the active involvement of residents who were
encouraged to do what they had to, high proceeds from the sale of recovered recyclable
materials (by related administrative authorities), return of the proceeds to the residents,
and effort to motivate residents’ participation. The focus of promotional campaign to raise
awareness of the public shifted from the perfunctory committee gathering toward the face-
to-face encounter between public servants and housewives and intensive educational session
hosted by the head of district office.

3.2 [Case 2] Namdong-gu, Incheon

3.2.1 Promotional Campaign to Raise Awareness of Residents
The Volume-based Waste Fee System Center was established to rectify the activities that
fundamentally challenged the VBWF System and encourage spontaneous involvement
of all residents in the district. To announce the direction for the operation of Volume-
based Waste Fee System and encourage the involvement of residents, informative
notices and letters were sent to all companies and entertainment-related business places
within the district boundary. For promotion and education, a one-day school was offered
to the residents to select recyclable materials in a yard heaped with recyclable waste.
Additionally, middle school and high school students were invited to share the experience
of discharging, collecting, and assorting the recyclable materials as part of voluntary
service activities. Moreover, public servants, housewives, company workers, etc, also
joined to build related experience.

3.2.2 Honorary Agent Appointment and Cracking Down on Illegal

Dumping and Reward for Residents
Under the honorary agent system, honorary agents were appointed and teamed up with
regular personnel cracking down on illegal dumping. This system reflects the understanding
that illegal dumping cannot be irradiated by the effort of public servants alone, without the
spontaneous involvement of residents in the monitoring process.
Honorary agents, who join in the endeavor to crack down illegal dumping of garbage,
represent people from all walks of life, including those representing sub-districts, women’s

Chapter 5 Performance and improvement of Volume-based Waste Fee System • 099

 society, senior citizens’ organization, commercial districts, apartment residents, garbage
plastic bag sellers. This honorary agent system has been instrumental in accomplishing
successful results, like helping residents create and operate spontaneous monitoring system
to curb illegal dumping. Along with that, illegal dumping report system was introduced.
Civic complaints accepted at the Report Center were resolved after verifying the site, and
KRW 30 million was given to the reporter as reward.

3.2.3 On-site Meeting

The on-site meeting was held to discuss problematic points, involving residents,
administrative authorities, cleaning companies. The event reflected the understanding that
simply removing illegally dumped garbage resulted in more areas being prone to illegal
dumping. The meeting provided unique platform for exploring solutions to the problems
that they were tackling based on the clear definition of roles and responsibilities among
residents, administrative authorities and cleaning companies.

3.2.4 Illegal Dumping Caught by Unmanned Surveillance Camera

Particularly, unmanned surveillance cameras installed to observe beyond the limits of
the human eyes were operated after 22:00, the time of the day that illegal discharge and
collection of garbage occurred frequently and went unnoticed by the patrolling personnel.

The surveillance cameras were alternately installed over the period of 5 to 7 days at
several areas prone to illegal dumping of garbage, and the recorded tapes were analyzed on
the following day to identify illegal dumpers.

Besides, those in the surrounding neighborhood put up the sign saying “Unmanned
surveillance cameras are watching you.” Surprisingly, the vulnerable areas which had turned
into garbage dumping ground began to restore to a clean state overnight. Our office was
inundated with incoming phone calls from many parts of the country after our successful
crackdown on illegal dumping was televised.

However, some residents filed complaint against us for reason that their privacy was
infringed upon, and consequently, we had to deploy the personnel wholly assigned to the
function of installing and operating the unmanned surveillance cameras. Now the camera
set-up process is ruled by private information protection law and administration procedure
law. As the cameras were installed at different location each time, there were some problems
such as the inconvenience of having to transport the whole unit, time taken to analyze the
video footage, leakage of the camera-related secrets which resulted in the cameras being
vandalized by some residents.

The surveillance cameras were deployed to one more site and 20 more sub-districts in
1997 as the trial operation over the last 3 to 4 months were successful. These cameras are

100 • Volume-based Waste Fee System in Korea

state-of-art equipment providing the capability of infrared ray detection and featuring the
time wrap function, sensors that are activated at the appearance of moving object.

Figure 5-5 | Surveillance Camera

Chapter 5 Performance and improvement of Volume-based Waste Fee System • 101

2011 Modularization of Korea’s Development Experience Chapter 6
Volume-based Waste Fee System in Korea

Suggestion for Developing Country for Introduction

of VBWF System

1. Suggestion for Developing Country

2. Policies that Support VBWF System in Developing Countries

 Suggestion for Developing Country
for Introduction of VBWF System

After introduction of the VBWF System, Korea experienced improvement of collection

service (door-to-door) and dramatic increase of recycling rate. However, there are some
drawbacks too such as increase of administration cost and inconvenience of residents.
Overall evaluation of the system is satisfactory until now. And VBWF is still in the process
of development.
Even the best policies will fail if they are not properly implemented. In modern society,
many policies are introduced to achieve a specific goal; however, they often fail in the
implementation stage. To attain successful implementation of policy, the most important
factors are rational policy and abundant resources for enforcement, as well as monitoring
and supervision of the targets of the policy. Here are some suggestions for developing
countries for successful implementation of VBWF System.

1. Suggestion for Developing Country

1.1 For Preparation
1.1.1 Careful Field Investigation
Collection of baseline data on waste management as a whole is important: waste
characterization and quantification and to analyze future trends Identification of issues of
concerns of Target: the stakeholders – financial, social, technical and environmental – which
they consider as very important to be addressed while designing the VBWF System.

1.1.2 Fair Design for VBWF Implementation

There should be supplementary policy when implementing VBWF System as there can
be many side effects. For this reason there should be a careful plan for implementation. For

104 • Volume-based Waste Fee System in Korea

example, waste separation should be at least 2 years ahead of time and public awareness
program should be 1 or 2 years ahead of VBWF System implementation. First, the process
should alter wide area local government for the sake of the cohesiveness of citizen’s opinion.
Second the government must use the schemes such as a public meeting to collect sufficient
information and to take advantage of mass media, public contacts for citizens’ participation and
stakeholders. Communication is important in order to reflect citizens’ opinion in site policy.
Preliminary assessment should be reasonable in the favor of familiarity with technology,
public health. It is also recommended to set up an arbitration organization responsible for
actually coordinating the policy conflict between the citizens and the government.

1.1.3 Public-Private Progress Committee

Public ownership is the key of successful implementation. Participation of citizens in
every step will enhance acceptance of the new system. Establishing public-private progress
committee is one of good examples. The participation should go on after introduction to
follow up the needs of local residence and modify the system in better way.

1.1.4 Operation of Related Environmental Policy Simultaneously

For example, supporting recycling industry, establishing harmful waste collection
system, establishing community recycling center, Extended-Producer’s Responsibility
(EPR) system can enhance waste management quality as a whole.

1.1.5 Renovating Culture of Consumption

Waste generation is a matter of lifestyle and culture. Lavish spending became a social
problem and waste problem is one of its effects. Making sound consumption culture and
changing spending habit are necessary to solve the waste problem. The Modern trend-
Competition and Emulation—should put more value on simple and spirit of sharing.

1.2 Necessary Element for Early-Stage of Implementation

1.2.1 Promotion and Monitoring
There should be promotion task force team and monitoring man power. This is a huge
job so it cannot be wholly controlled by the central government. Like Korean experience,
using NGO is a good idea.

1.2.2 Waste Separation System

Separate collection of waste is basic condition for implementing VBWF System.
Separating recyclable material minimizes generation of waste itself from its source. Local

Chapter 6 Suggestion for developing country for introduction of VBWF System • 105
 community should make their regulation and rules on separation items, operation guideline,
making and distributing public awareness material, collector, collection method, collection
period and so on. Preparing collection box and manpower for waste collection is also needed.
The most important of all, there should be a supply and demand flow in recycled product
market. At first it should be supported by government. Local government should figure out
status of waste recycling companies (collection company, separation company, and recycling
company). There should be administrative plan for waste collection, treatment and recycling
and reporting responsibility preferably required by law. Waste separation system should be
introduced at least one or two years ahead of Volume-based Waste Fee System.
For the active operation, separation mark system is helpful. For the packaging material
Korea first introduced 12 kinds (aluminum, metal, glass, cartons, paper, HDPE, LDPE,
PET, PP, PS, PVC, others). Later, Ministry of Environment simplified the 12 kinds into 5
kinds to support active participation of citizens. Aluminum and metal merged as “can,” 7
kinds of synthetic material combined as “plastics”.

1.2.3 Public Awareness Education

The key area for education is as follows;
- Fact on waste generation, transportation and treatment
- Government budget for waste management
- Positive effect of VBWF System
- Object, content, implementation of VBWF System
- Waste separation guideline
- Importance of cooperation of local residents

2. Policies that Support VBWF System in Developing

Countries
Developing country has some characteristics such as high population of rural area, high
portion of organic waste. Usually these countries lack proper waste treatment system. In
Korea, rural area has small population and generate small amount of waste compare to
city. For this reason, pile-up period and collection cycle are very long. And there is strong
antipathy on purchasing waste-bag not only for economical reason but also because they
can easily throw away waste or burn them without being seen. However, rural areas of
developing country may not have the same problem if they have more population. Here we
suggest policies for implementing and supporting successful VBWF System introduction
and settlement in developing countries;

106 • Volume-based Waste Fee System in Korea

 2.1 Organic Waste Separation and Recycling

Figure 6-1 | Processes and Products from Organic Waste19

Urban organic/ Human and

vegetabel waste animal waste

Composting Briquetting Anaerobic digestion Compost

toilets
Co-composting

Compost Animal Fuel Compost Fuel Fertiliser Compost

feed

Organic waste is biodegradable and includes food waste that will smell foul if allowed to
decay in the household, manure from livestock farms, and sewage sludge from the sewage
treatment process. Organic waste can be used as animal feed, compost and bio-energy (See
Figure 6-2). For instance, Conventional composting materials were mainly livestock waste,
food processing waste, fishery waste, sawdust, and night soil. Garbage and sledge have been
composted recently.20
Usually, organic waste occupies large portion in total waste generation in developing
countries (See Figure 6-4). Therefore, when introduce VBWF System, it is important to take
organic waste into consideration. Traditionally, in many developing countries there exists a
whole sector of recyclers, scavengers and collectors, whose business is to salvage ‘waste’
material and reclaim it for further use. However, this tradition can be easily broken through
fast urbanization, industrialization and increase of income. Where large quantities of waste
are created, usually in the major cities, there are inadequate facilities for dealing with it,
and much of this waste is either left to rot in the streets, or is collected and dumped on open
land near the city limits. Thus, for the developing countries, differing levels of processing
are required utilize organic waste as well as encouraging good current practice. [Figure 6-2]
above shows some of the options in the form of a flow diagram.

19 Recycling organic waste, ttp://practicalaction.org

20 Hang-Sik Shin et al(1998), State and Prospects of Organic Waste Composting in Korea, Journal of
KOWREC Vol.6 No.2

Chapter 6 Suggestion for developing country for introduction of VBWF System • 107
 Figure 6-2 | Composition of Municipal Waste in a Typical Developing
and industrialized Country

60 Develpoping Industrialised
countries-front countries-front
50
40
30
20
10
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Source : Practicalaction.org

Figure 6-3 | Composting Facilities

To utilize organic waste, it should first be separated from its source. Waste collection and
disposal is often seen as being the responsibility of the government or municipality. In many
countries, collection and separation of waste is considered too time consuming because of
the content of the waste, often a mixture of organic and non-organic substances, such as

108 • Volume-based Waste Fee System in Korea

plastic film. For better recycle practice, it has been noted that it is of great help if the organic
and non-organic waste is separated at source. Many successful schemes are only successful
because of community participation in the activities on a day-to-day basis.
Secondly, organic waste to energy technology should reflect a country’s own circumstances.
In Korea, with a view to promote food waste-to-energy systems, 144.8 billion won was
provided to 248 places to install food waste-to-energy facilities and purchasing automobiles
by the end of 2008. In addition, among recycling industry promotion fund, 731 billion won
had been offered to 2,013 places for developing waste-to-energy technology and installing
facilities [Figure 6-3]. However, for developing country, in many cases, the municipality
is unable to build and maintain facility due to financial constraints, lack of will or lack of
organizational skills. And without proper technology, it could be a loss of energy and even
produce second-hand contamination. Therefore, different levels of approaches are required
to utilize organic waste according to circumstance. On one side, localized technology for
organic waste should be developed and on the other side, organic waste recycling should go
on to match the situation. For example, a pilot project being implemented by the Colombo
Municipal Council uses organic waste from local city vegetable markets to produce bio-
gas and compost. In Bangladeshi, NGO Dushtha Shasthya Kendra (DSK; it means Social
Welfare Organization) introduced barrel composting to Vasantek, Dhaka’s biggest slum.21

Figure 6-4 | Compost from Organic Waste

21 http://www.fyse.org/2009/04/garbage-turns-into-gold-in-bangladesh/

Chapter 6 Suggestion for developing country for introduction of VBWF System • 109
 2.2 Village-level VBWF System for Rural Areas
2.2.1 Waste Collection in Farming Region
In rural areas, houses are scattered and thus burning or disposing waste without using the
trash bags is often found. Village-level Volume-Based Waste Fee System was introduced
in July 2002 to effectively deal with waste management and to prevent illegal behavior in
rural areas. The main purpose of this system is to prevent illegal burning and dumping in
rural areas where it is difficult to monitor. However, Village-level Volume-based Waste Fee
System must apply to the least possible number of farming villages to avoid undermining
the principle of current Volume-based Waste Fee System. Waste vinyl, waste agricultural
chemical containers, etc, which are generated in farming communities, besides municipal
wastes continue to be subject to the regulation requiring the separation and collection of
waste and recyclable materials to be undertaken by private sector firms under the contract
entered into with Korea Environment Corporation.

2.2.2 Volume-based Waste Fee System based on Village

a. Guideline
Village-level Volume-based Waste Fee System refers to the system that levies the disposal
expenses of aggregate waste according to their volumes in farming or fishing village-where
garbage is not discharged and collected separately-- instead of purchasing standard VBWF bags.

Table 6-1 | Village level VBWF System progress

< Local residents > < Local government >

Collection Collection Waste fee

Site selection Promotion
container transportation collection

b. System and procedure for implementation

Implementation of Village-level Volume-based Waste Fee System starts from organizing
a committee that consists of village leaders, such as head of village, chairwoman of women’s
society, chairman of youth group. Such committee must provide a platform for discussing
a wide range of matters, including the selection of location for placing waste receptacles
(approval for the use of land), appointment of acting manager (village leader, the person in
charge of managing the village fund), frequency of collection, procedure and method for
charging for the collection, transport, treatment of waste etc.
In order to prevent illegal dumping, supervisors for waste collection need to be designated
and self-monitoring system should be operated. The committee must appoint the manager

110 • Volume-based Waste Fee System in Korea

who will carry out various duties, like informing the residents of the designated disposal
location, method of garbage discharge, requesting the residents for cooperation, helping
residents be acquainted with the method of discharging garbage by means of printed
materials or on-air announcements. In addition, the committee must organize independent
monitoring team responsible for clamping down on illegal burning or disposal of garbage.
c. Establishment of system for collecting municipal waste and recyclables
Local residents group select site for the waste collection and promote the system. Local
government collects and transport waste and impose waste fee (Table 23). The location of
waste receptacles must be determined in view of the population, waste discharge amount,
type of garbage collection vehicle, installation place, storage type. Basically, 4 different
types of recycling containers (for cans, scrap metals, plastics, glass bottles, paper) must be
placed at the disposal site.
In selecting the recycling containers, various types, such as plastic container type, net
type, hanging type garbage bag must be compared with one another, and it must be easy to
maintain and convenient for garbage collection. The frequency of collecting and transporting
the garbage and recyclable waste must be determined by considering the waste generation
amount, type of containers, number of cars owned by villagers, and other factors. Garbage
collection must be made more than twice a month while the collection of recyclable waste
must be made at least once a month (See Table 22). Large-sized waste must be disposed of
as prescribed in the enforcement regulations of autonomous governments or based on the
fee.

Table 6-2 | Collection system of Village-level VBWF System

Collection and
Waste separation Collection box Waste fee payment
transportation

Waste Waste Box 2 times per month Fee payment

Separation container Profit from sales

Recyclable 1 times per month
for each items and subsidy

It is desirable that garbage and recyclable waste collection under the village-level Volume-
based Waste Fee System should be directly carried out by local governments in villages that
have inadequate infrastructure for collecting large amount of garbage (broad area, poor road
condition). The waste collection can be entrusted to a third party in the regions where the cleaning
works are currently undertaken by private sector firms or the regions in which the collection
works cannot be contracted out to private sector companies due to regional circumstances.

Chapter 6 Suggestion for developing country for introduction of VBWF System • 111
 d. Imposition of fee for the collection, transport, treatment of garbage
The charge for the collection, transport, and treatment of garbage under the Village-level
Volume-based Waste Fee System must be determined by taking the following measures into
comparison and consideration:
First, variable rate can be levied by estimating the cost per ton based on amount of the
garbage collected. Second, a fixed rate can be charged to each village based on the estimated
amount of garbage per person. The variable rate based on the garbage collected is computed
using the same standard as the one used for estimating the price of plastic bags stipulated
under the current Volume-based Waste Fee System. The fixed rate based on the garbage per
person is computed by this formula;
[garbage per person (kg) X number of household X number of household members in
village X fee amount / kg)].
The charge for the collection, transport, and treatment of garbage is collected by the
following methods:
First, the total amount of fee can be charged to the representative of village (the manager
of village fund) and disbursed directly from village fund; or Second, the total amount of fee
is made chargeable to and payable by the representative of village who is later reimbursed
from the residents; or Third, local government divides the total fee by the number of
household in village based on the garbage collection amount, so that the fee can be paid
by respective household upon receipt of bill. The Ministry of Environment suggests in the
guideline that the first option above should be effective in light of the correlation between
the cost of garbage treatment and the payment of the proceeds from the sale of recyclable
waste. The waste fee is levied on the whole community and the payment is made through
the village fund. Later, each household is charged on an average rate. Profit from sales
of recyclables can be deposited to village fund to be used for the waste treatment fee. If
necessary, government subsidy can support the system.

2.2.3 Enforcement and Appropriate Measures to Manage Waste in

Farming/Fishing Villages
To ensure effective collection of garbage in rural communities, the focus must be placed
on presenting the methods, which are easy for residents to learn and apply, based on the
operation of appropriate collection site, dissemination of knowledge related to the garbage
discharge, use of collection calendar, etc, in view of the realities facing the fast aging rural
communities. Specifically, displaying the methods for garbage discharge and collection
calendar, etc, at the collection site will help increase awareness and perception toward
garbage collection, rather than handing out the leaflets once. As the collection cannot be
performed daily, it is necessary to check the amount of garbage and diversify the collection
cycle in such a way suited to the specific realities of local governments.

112 • Volume-based Waste Fee System in Korea

References

Kim, Duk-young (2010), 「Research on household waste management policy

improvement」, Administration graduate school of Jeon-nam Univ
Kim, Kwang-yim, “Effect of Waste Price on Waste Generation and Policy
Recommendation”, 「Environment forum」, Korea Environment Institute, 2002
Park, June-Woo (2007), 3R policies of korea
Huh, Suk (2007), A Study on the Citizen’s Opposition to Public Policy Making : A Case
Analysis on the Waste Treatment Facilities in Korea, Kon-kuk Univ
Seoul Development institute(1994), conptual Framwork for solid waste management
planning in Seoul with emphasis on the quantity based charge
Korea Environment Institute(1998), 「Evaluation and Enhancement of Volume-based Waste
Fee System」
Ministry of Environment, 「2001 National Survey on Waste Statistics」, 2000~2004.
Ministry of Environment, 「Environmental White Book」, 1995~2004.
Ministry of Environment, 「Fifty years of Korean environment」, 1996
Ministry of Environment, 「Some success strories of Korean Environmental policies, Waste
reduction and recycling」, 1995~2004.
Ministry of Environment(1995), 「Volume-based Waste Fee System evaluation for 100
days」, 1995~2004.
Ministry of Environment(1995) 0, 「Volume-based Waste Fee System discussion」
Ministry of Environment(1995), Environmental white book
Ministry of Environment(1995), 「Statistics on Volume-based Waste Fee System」
Ministry of Environment, 「The first year performance of VBWF System」
Ministry of Environment, Some success stories of Korean Environmental Policies Waste
Reduction and Recycling
Ministry of Environment (2005), Korea’s 3R policy
Website
www.koica.go.kr ODA&KOICA, history
http://eng.me.go.kr/content.do?method=moveContent&menuCode=pol_
rec&categoryCode=05 Major Policy-Waste&Recycling

Referencesns • 113
 Appendix

1. Modification of Environment Law

1960 1970~1980 1990~2008 (46 Acts)

(6 Acts) (9 Acts) Current Status Enacted Date Revised Date
Wastes Control Act Dec. 31, 1986 Apr. 11, 2007
Act on the Disposal of Sewage,
Excreta&Livestock Wastewater Mar. 8, 1991 -
(annulled on Sep. 28, 2007)
Act on the Management and
Sept. 28, 2007
Use of Livestock Manure (jointly Sep. 27, 2006
(Effective Date)
enacted)
Act on the Promotion of Saving
Dec. 8, 1992 May 11. 2007
and Recycling of Resources
Act on Resource Recycling
of Electrical and Electronic Jan. 1, 2008
Apr. 27, 2007
Waste Equipment and Vehicles (jointly (Effective Date)
Control enacted)
Waste Act
Cleaning Act on the Control of
Act Transboundary Movement of
Dec. 8, 1992 May 17. 2007
(enacted Hazardous Wastes and Their
on Disposal
Dec. 30, Act on the Promotion of
Dec. 31, 2003 Dec. 28, 2006
1961) Construction Waste Recycling
Promotion of Installation of
Waste Disposal Facilities and
Jan. 5, 1995 Jan. 3, 2007
Assistance, etc. to Adjacent Areas
Act
Sudokwon Landfill Site
Jan. 21, 2000 Jan. 21, 2000
Management Corporation Act
Compound
Waste
Treatment
Korea Environment&Resources
Corporation Dec. 27, 1993 Dec. 30, 2003
Corporation Act
Act (enacted
on Dec. 28,
1979)

114 • Volume-based Waste Fee System in Korea

2. Ministry of Environment in Korea

MINISTER

Office of Spokesperson

Policy Publicity Team

VICE MINISTER
Office of the Inspector-General
Genaral Service Division Audit & Inspection Office
Environmental Inspection
& Investigation Team

Planning & Coordination Environmental Policy Water Environment Nature Conservation Resource Recirculation
Department Department Management Bureau Bureau Bureau
Planning & Budget Green Environment Policy Water Environment Resource Recirculation
Office policy Division Nature Pilicy Division
Office Policy Division
Creation & Innovation Policy Coordination Watershed and Total Load Nature Resources Waste Resources
Office Division Management DIvision Division Management Division
Legal Affiairs & Green Technology Auatic Ecosystem Environmental Assessment Resource Recycling
Regulations Reform Office & Industry Division COnservation Division Policy Division Division
Environmental Data and Green Cooperation Water Supply and Environmental Impact
Information Office Sewerage Policy Office Assessment Division Waste to Energy Team
Division
Emergency Planning Office of Environmental Water Supply and
Office Health Sewerage Policy Division
International Cooperation Environmental Health
Policy Division Sewerage Division
Office
International Affairs Chemicals Management Soil & Ground Water
Division Division Management Division
Global Environment Climate & Air Quallity Water Industry
Division Management Division Support Team
Indoor Air and Noise
Management Division
Climate & Air Quallity
Management Office
Climate Change
Cooperation Division
Air Pollution Control
Division
Environmental
Transporation Division

3. Main Contents of VBWF System Guideline (2003)

1) Waste bag
① Types of waste bag:
■ General type: 3, 5, 10, 20, 30, 50,75,100 liter.
■ Public type: 20, 50, 100 liter.
■ Food waste bag: 1,2,3,5 liter.
■ Disposable plastic bag : 3, 5 liter.

Appendix • 115
 Appendix

① Material and standard of waste bag

■Select types of waste bag in consideration of kind of waste treatment facility,
convenience of residents
■Decide standard size and type to maintain environmental suitability
① Biodegradable waste bag
■Introduce at the municipality where separates disposable plastic bag and film type
packaging according to EPR.
■Use this bag for compostable food waste bag, non-sanitary landfill
■Should use this bag with environmental mark.
① Color of waste bag
■Differentiate color of general waste bag and color of public waste bag in order to
prevent misuse of those bags. General waste bag – white color, public bag – light
blue color. Color of public waste bag should be the same nationwide.

□Make food waste bag transparent so that identify mix of un-recyclable food waste
and to induce less generation of food waste.
1) Matters on waste fee
① Principle
■Charge waste collection, transportation and treatment cost on waste discharger
considering characteristics of discharger, collection and treatment system of
municipality.
■Charge collection and treatment cost of construction site waste, large size waste on
its generator.
■Charge collection and transportation cost only excluding treatment cost on the
waste electronics (EPR ), which manufacturer pays treatment cost.
■Collection cost includes labor cost, operating cost, general management cost.
■Treatment cost include Landfill fee, consignment fee.
② Ratio of burden that resident bears
■Prepare calculation standard on the level of fee that resident bears – rate of fee
■Ratio of fee burden (%) = (waste bag sales revenue/ total cost of coll. Tran.&
treatment) x 100
■Total cost includes real expenditure that was paid to coll. Trans. and treat waste
using waste bag only; exclude cost related to public waste bag, recyclable waste.
■Sales price of waste bag = total cost per liter x volume of waste bag (liter) x ratio
of resident burden

116 • Volume-based Waste Fee System in Korea

③ Increase self-support ratio of cleaning budget and waste bag price
■Municipality should evaluate self-support ratio of cleaning budget
■Higher local government should receive evaluation result and advise improvement
in case of unsatisfactory result.

1) Manufacture and quality control of waste bag

① Printing on waste bag
■Minimize wordings printed on waste bag and make it simple
■Print the name of municipality, volume and material, usage of bag and how to use
bag
① Examination of waste bag
■Clearly state on the matter about prohibiting illegal outflow of waste bag from the
private manufacturer on the contract.
■Retrieve (bring) original printing plate of waste bag
■Examine size and quantity of waste bag and request citified institution accurate
analysis when purchase the waste bag.
■For detailed information about method of examination, see “standard on selection
and decision of waste bag for examination.
③ Quality control of waste bag
■Collect and examine waste bag that is on sale at store in order to monitor quality
■Request analysis of waste bag on sale to certified institution when there is a lot of
civil appeal and problem with material.
① Supply and Sale of waste bag
■Supply of waste bag can be direct sale by municipality directly, consignment sale
by banking agency, cleaning business and private store.
■Monitor municipality officer not to handle cash directly.
■Designate waste bag sale store for resident to buy easily.
■Refund unused waste bag cash when resident moves to other city.
■Restrain use of disposable vinyl bag

1) Reduction of fee to low income family

■Provide free 60 liter waste bags /month/person to the low income citizens.
■Possible to reduce fee for poor merchant at traditional market

Appendix • 117
 Appendix

1) Matters on discharging waste

① Waste that Volume-based Waste Fee System applies: discharge in a waste bag; food
waste should be discharged in a way of promoting recycling
① Waste that Volume-based Waste Fee System does not apply:
■Coal briquette should be discharged at specified site and regular collection date
for free.
■Recyclable waste should be discharged according to the guideline that is decided
by municipality ordinance.
① Waste that is hard to fill into waste bag
■Should be discharged using separate PP sack or gunny bag
■Classify into large waste and put sticker on to the large size waste
① Discharging time
■Discharging time is decided by municipality according to its condition. Recommend
to discharge waste after sunset – before sunrise as possible.
① Waste that is hard to fill into waste bag
■Should be discharged using separate PP sack or gunny bag
■Classify into large waste and put sticker on to the large size waste
① Discharging time
■Discharging time is decided by municipality according to its condition. Recommend
to discharge waste after sunset – before sunrise as possible.
② Waste at farming and fishing villages
① Village level collective waste collection system
■Collect waste collectively in a whole village and divide total cost according to
quantity of waste collected.
■Introduction of this system should be confined to the county that is vulnerable to
waste collection.
■As for agricultural waste vinyl, pesticide waste bottle and recyclables, municipality
should establish separate collection system.
■Waste lubricating oil from farm machinery should be collected separately and
transported to farm machinery repairing center, or recycling center.
■Designate 1st Saturday of month as cleaning date,
■Provide free collection service to the area which is difficult to enforce village level
system.

118 • Volume-based Waste Fee System in Korea

4. Sales of VBWF Bags [Sales trend nationwide]

(unit : 1000 sheets)

Year Change
1995 1996 1997 1998 1999 2000 2001
Region (%)
Seoul 434,816 325,634 293,670 244,478 249,352 270,881 278,980 -35.8
Busan 131,226 97,360 91,235 66,583 60,166 64,668 60,571 -51.6
Daegu 87,865 68,875 67,691 41,422 47,748 45,108 43,464 -50.5
Incheon 96,806 70,411 60,739 45,529 48,650 50,785 47,707 -50.7
Gwangju 46,222 40,096 31,685 25,328 25,055 26,206 24,155 -47.7
Daejeon 55,769 39,285 36,076 29,224 38,239 28,782 30,239 -45.8
Ulsan - - 24,716 21,506 23,291 24,099 25,329 -
Gyeonggi-do 283,715 221,387 223,890 204,673 201,202 217,234 211,335 -25.5
Gangwon-do 47,845 35,909 28,478 24,163 25,987 25,752 28,858 -39.7
Chugcheong 33,699 26,652 26,701 23,283 24,352 24,699 24,658 -26.8
buk-do
Chungcheong 37,385 28,950 28,778 24,047 29,987 30,494 29,194 -21.9
man-do
Jeolla buk-do 51,115 32,083 31,366 25,726 27,613 21,933 30,074 -41.2
Jeolla nam-do 52,251 38,559 34,516 29,235 29,507 33,516 31,113 -40.5
Gueongsang 81,299 59,968 50,298 43,461 48,226 43,359 46,758 -42.5
buk-do
Gueongsang 114,872 97,022 65,945 55,557 56,274 63,620 59,870 -47.9
nam-do
Jeju-do 35,079 9,579 10,056 9,129 9,832 10,349 11,466 -67.3
Total 1589964 1192770 1095841 913,344 945,481 981,485 988,770 -37.8

Source : Korea Environmental Policy Bulletin(2003) Volume-based Waste Fee System

Appendix • 119
 Appendix

[Large and small size VBWF Bag Sales in Major cities of Korea (2001)]

Small size large size

5l (a) 10l (b) 20l (c) 50l (d) 100l (e)
bag, % bag, %
Seoul 11,976 76,772 105,159 30,689 28,885 76.5 23.5
Busan 8,333 26,509 14,912 3,180 767 92.7 7.3
Daegu 1,667 14,783 15,250 4,255 1,952 83.6 16.4
Incheon 1,517 15,830 21,319 5,733 2,123 83.1 16.9
Gwangju 1,244 8,483 8,482 3,005 1,360 80.7 19.3
Daejeon 2,660 10,186 12,414 5,070 3,160 75.4 24.6
Ulsan 888 7,545 7,658 3,551 1,450 76.3 23.7
National
68,475 297,419 375,502 125,987 98,988 76.7 23.3
Total

Source : Korea Environmental Policy Bulletin(2003) Volume-based Waste Fee System

120 • Volume-based Waste Fee System in Korea

5. Recyclable Waste Items and Disposal Guidelines
Classification Items Guide for disposal
- Newspaper - dry newspaper (wet paper not accepted)
- unfold straight, pile up neatly and tie it with
string
1. Paper - avoid being mixed with advertisement pamphlets
with vinyl coating, vinyl bags and other objects
- book, note, - remove cover page with vinyl coating, springs for
paper notebooks
shopping bag, - avoid being mixed with plastic packages
calendar,
packaging
- paper cups - empty the cup, wash in water and press and tie
and containers together
- box (cookies, - remove vinyl coating
packaging, - remove tape, staple attached to the box, press
others) and tie for easy transport.

2. Cans - steel can, - empty and wash with water, press if possible
aluminum can - remove plastic cap or plastics attached
(drink, food)
- dispose in bags (vinyl bags accepted)
- other can - remove contents by making a hole in the
(butan gas, container
pesticide
container)
3. Bottles - potable water - remove cap and empty, wash
bottle, other - not acceptable if other substances such as cigarette
bottle butts are contained
- beer and soju (korean spirit) bottle can be sold at
grocery stores
4. Metal - nonferrous - same as above
metal (nickel
silver, styrene,
electric wire)
5. Plastics Extended - remove other substances, detach labels completely
Polyestyrene and dispose in clear plastic bags
- for fruit and fish box, empty remainder and wash it
with water
- according to the MoE directive on reducing styro-
foams for electronic products packaging (1995),
producers have the responsibility to reduce and
recover these materials

Appendix • 121
 Appendix

Classification Items Guide for disposal

PETE 1 - Drink bottle (coke, soda, juice), water bottle, soy
sauce bottle, oil bottle
HDPE 2 - Water bottle, shampoo and detergent container, white
rice wine bottle
V 3 - mainly used in industries, very few found among
household waste
LDPE 4 - milk bottle, rice wine bottle
PP 5 - boxes (beer, coke, soju), garbage can, dustpan, water
basket
PS 6 - yogurt bottle, shawa bottle

6. Organic waste in Korea (2006)

classification type volume Sources (year)

Total 75,499,006  
Food wastes 4,736,496 Municipal waste data, MOE (2006)
Sewage sludge 2,560,959 Sewage data, MOE (2006)
Wastewater sludge 4,198,303 Disposal data, MOE (2006)
Excreta 1,454.2 Sewage, excreta and livestock
Human Septage 16,246.5 wastewater treatment data, MOE
excreta (2000~2003)
Organic Subtotal 17,700.7 Sewage data (2004, 2005)
wastes
Feces 20,620,460
Urine 13,447,728
Livestock Sewage&livestock wastewater
excreta Wash treatment data (1999~2002)
16,140,034
water
Subtotal 50,208,222
Industrial general waste data, MOE
Plant&animal remnant 908,558
(2006)
Waste Forest site waste wood 354,051 Forestry Administration
wood Disposed waste wood 2,666,727 MOE data

122 • Volume-based Waste Fee System in Korea

7. Korean Administrative Units

Larger Administration Unit Lower Administration Units

Metropolitan Cities (Seoul, Busan, etc.) gu→dong
city→gu→dong
Provinces (Gyeonggi, Gangwon, etc.)
gun→myun/eup→li

Note : There are 16 larger administration units or districts in Korea. (7 metropolitan cities including Seoul and 9
provinces)

Administrative Map of Korea

Appendix • 123
 Appendix

8. Education material for Waste separation (Comic)

124 • Volume-based Waste Fee System in Korea

<Translation> A: student B: neighborhood association leader.
1.
K is college student who live alone apart from his family.
K: ‘Ha…The room is messy’
He suddenly feels that his room is too dirty.
K: I need to clean up.
He tries to clean the room and discarding waste is the first thing he should do.
K: Food waste..Do I have to separate?

2.
The most annoying thing is food waste.
K: Who will know? And who will rummage my waste bag. Let’s put it together’
He knows he should separate the waste but he is out of food waste bag anyway.
K: It this is the place?
He put all the waste together in the bag and goes outside to discard the bag.

3.
K: Huh? a fine?
He found notice that the person who will not separate the food waste will be fined.
K: Who will know if I discard it in secret!
K quickly makes a run after he discard his waste bag

4.
And one day...
Now his is used to discard the waste without separation.
K: Shhh. Since it is night time, nobody will know!
B: What are you doing young man?
There he found representative of his district behinds his back.

5.
B: Was it you who always throw away food waste in here?
Critical moment! The fine will be enormous when added up.
K: I was rummaging waste to search something to eat. I was hungry.
B think K is probably beggar. (K is pretended to be a beggar to avoid fine that he has to pay)

Appendix • 125
 Appendix

9. Promotion for Reducing Food Waste

126 • Volume-based Waste Fee System in Korea

 <Translation>
The ideas of reduce Food waste
Make a list before you purchase food.
Make menu in 1-3 days or 1 week term.
Make a reference of menu according to preference and weather etc.
Make a decision ahead about what to buy and how much you buy before purchase.
Check remaining food before you purchase before it goes bad.
Regularly check refrigerator.
Make use of scale and measuring cups.
Reduce the number of side dish.
Avoid prepare too much food.
(Traditionally Korean prepare abundant food to treat guest)
Cut or chop vegetable as soon as possible in order to reduce waste.
Peel the vegetable before you wash in order to prevent wet waste.
Make use of outer part of Chinese cabbage as frozen preserved food in traditional way.
Make liquid vegetable seasoning by boiling leftover vegetable.
Make tea using ovary of fruit.
Make food with leftover of cooked rice such as sik-hye (Korean traditional sweet drink
made with fermented rice).
Never discard used oil to drainage directly. Always using paper towel to clean used oil.

Appendix • 127
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427-725, Republic of Korea Goverment Complex 2, Gwacheon, Korea Tel. 82-2-2150-7732 www.mosf.go.kr
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