CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to realizing a sustainable circular economy and society by efficiently utilizing resources in the entire process of production, distribution, consumption, etc. of products, by reducing the generation of wastes to a possible minimum, and by promoting the circular use of the generated wastes.
The terms used in this Act are defined as follows:
| 1. | The term "circular economy" means an environmentally friendly economic system that minimizes input resources and energy by enhancing the sustainability of products and by establishing a circulation network of discarded resources; |
| 2. | The term "circular economy and society" means a society in which all members endeavor to achieve the goal of a circular economy, thereby realizing both environmental conservation and greenhouse gas reduction; |
| 3. | The term "circular use" means any of the following activities: |
| (a) | A series of activities prescribed by Ordinance of the Ministry of Environment, such as the reuse, with or without reclaiming, of substances or articles used in people's daily lives or industrial activities as resources; |
| (b) | Recovering energy defined in subparagraph 1 of Article 2 of the Energy Act from wastes or any other activities to make such energy recoverable from wastes; |
| 4. | The term "circular raw materials" means substances or articles prescribed by Presidential, which are collected after having been used or unused in people's daily lives or industrial activities and all or part of which may be utilized for circular use in their original form or after processing; |
| 5. | The term "circular resources" means substances or articles recognized or designated and publicly notified by the Minister of Environment in consultation with the Minister of Trade, Industry and Energy pursuant to Article 21 or 23; |
| 6. | The term "resource circulation" means the environmentally friendly use and management of the circular process of resources, such as minimizing the generation of wastes and utilizing generated wastes for circular use, in order to achieve the objectives of environmental policies; |
| 7. | The term "resource circulation industry" means an industry involving types of business prescribed by Ordinance of the Ministry of Environment in consultation with the Minister of Trade, Industry and Energy, which enables circular use of wastes to the maximum extent possible or conducts research and development of technologies and systems necessary for the transition to a circular economy and society; |
| 8. | The term "resource circulation facility" means a facility, equipment, an installation, etc. prescribed by Ordinance of the Ministry of Environment, which are utilized for minimizing the generation of wastes in the production process or for circular use of wastes. |
| Article 3 (Basic Principles) |
The State, local governments, and all members of society, including business entities and citizens, shall comply with the following principles to promote the transition to a circular economy and society:
| 1. | The waste of resources shall be reduced to a possible minimum through the efficient use of resources; |
| 2. | The generation of wastes shall be reduced to a possible minimum by extending the lifespan of products through the production of products with excellent durability and repairs, etc. of the products; |
| 3. | Where wastes are expected to be generated, priority consideration shall be given to circular use; |
| 4. | The generated wastes shall be utilized for circular use to the maximum extent possible in terms of technological and economical aspects in accordance with the following principles: |
| (a) | All or part of the wastes reusable shall be reused to the maximum extent possible; |
| (b) | Out of all or part of wastes that are difficult to reuse, the wastes that can be reclaimed for reuse shall be reclaimed and reused to the maximum extent possible; |
| (c) | Where wastes are reused after reclaiming, priority shall be given to applying efficient means to achieve the goal of a circular economy; |
| (d) | Energy shall be recovered to the maximum extent possible from all or part of the wastes that are difficult to reuse with or without reclaiming, if energy is recoverable from such wastes; |
| (e) | Wastes that cannot be utilized for circular use under items (a) through (d) shall be properly disposed of, in a way that reduces impacts on people's health and the environment to a possible minimum. |
| Article 4 (Relationship with other Acts) |
| (1) | Except as otherwise provided in other statutes, this Act shall apply to promoting the transition to a circular economy and society. |
| (2) | Other statutes related to promoting the transition to a circular economy and society to be enacted or amended shall be in conformity with the purpose and basic principles of this Act. |
| Article 5 (Responsibilities of the State and Local Governments) |
| (1) | The State shall formulate and implement policy measures to comprehensively and systematically facilitate the transition to a circular economy and society. |
| (2) | Local governments shall formulate and implement policy measures for the transition to a circular economy and society, taking into account the appropriate role sharing with the State and the economic, natural, and social conditions of their jurisdictions in accordance with the policy measures of the State under paragraph (1). |
| Article 6 (Responsibilities of Business Entities) |
| (1) | A business entity that produces raw materials for products shall minimize the use of natural resources and increase the rate of use of circular raw materials. |
| (2) | A business entity that produces or imports products shall reduce the generation of wastes in a way that prevents as many as possible products, raw materials, materials, and containers (hereinafter referred to as "products, etc.") necessary for people's daily lives and industrial activities from being discarded as wastes by efficiently using resources and energy and by improving processes as well as the material, structures, etc. of products. |
| (3) | A business entity that distributes products shall save resources and minimize wastes from packaging materials for distribution (referring to packaging materials used for transportation; hereinafter the same shall apply) in the distribution process. |
| (4) | A business entity shall ensure that persons engaging in the resource circulation industry can easily follow circular use practices by utilizing generated wastes for circular use by themselves, by separating and disposing of wastes by type and purpose of use, or by other similar methods. |
| (5) | A business entity shall endeavor to develop technology to control the generation of wastes and shall actively cooperate with the State and local governments in policy measures for the transition to a circular economy and society. |
| Article 7 (Responsibilities of Citizens) |
| (1) | Every citizen shall keep natural and living environments clean and shall endeavor to control the waste of resources, by refraining from using disposables, by preferentially purchasing products, etc., which generate less wastes, to use them to their maximum durability, and by other similar methods. |
| (2) | Every citizen shall separate and dispose of wastes in a state in which they can be utilized as easily as possible for circular use and shall actively cooperate with the State and local governments in policy measures for the transition to a circular economy and society. |
| Article 8 (Support for Research and Development of Technologies and Services for Circular Economy) |
To support the research and development of technologies and services for a circular economy, the Government may formulate and implement policy measures on the following:
| 1. | Surveys on trends in, and demands for, technologies and services for a circular economy; |
| 2. | Securing excellent human resources for research and development of technologies and services for a circular economy; |
| 3. | Financial support for research and development of technologies and services for a circular economy; |
| 4. | Support for entitlement to, and commercialization of, technologies and services for a circular economy; |
| 5. | Promoting the purchase of technology and service products for a circular economy; |
| 6. | International joint research and development related to technologies and services for a circular economy; |
| 7. | Other research and development of technologies and services for a circular economy. |
| Article 9 (Creation of Culture for Development of Circular Economy and Society) |
| (1) | The State shall formulate and implement policy measures necessary to enhance citizens' understanding of a circular economy and society and to widely disseminate and establish a circular economy culture throughout society. |
| (2) | Where necessary to create and disseminate a circular economy culture, the Minister of Environment and the head of the relevant central administrative agency may entrust related projects to an institution or organization prescribed by Presidential Decree to implement such projects. |
| (3) | The Minister of Environment and the head of the relevant central administrative agency may fully or partially subsidize an institution or organization entrusted with projects pursuant to paragraph (2) to cover expenses incurred in implementing the projects. |
| (4) | Procedures for designating institutions or organizations and standards for subsidization under paragraphs (2) and (3) and other necessary matters shall be prescribed by Presidential Decree. |
CHAPTER II FORMULATION OF MASTER PLANS FOR CIRCULAR ECONOMY
| Article 10 (Formulation and Implementation of Master Plans for Circular Economy) |
| (1) | The Minister of Environment shall formulate and implement a master plan for a circular economy (hereinafter referred to as "master plan") which establishes mid- to long-term policy objectives and directions for the transition to a circular economy and society every 10 years, in consultation with the heads of the relevant central administrative agencies. |
| (2) | A master plan shall include the following information: |
| 1. | Basic policies for the transition to a circular economy and society and objectives of promoting such basic policies; |
| 2. | Saving of resources and reduction of waste generation; |
| 3. | Promotion of circular use and disposing of wastes in a proper manner; |
| 4. | Role sharing among interested parties, such as local governments, business entities, and citizens; |
| 5. | Calculation of expenses incurred in implementing master plans and financing plans; |
| 6. | Other matters prescribed by Presidential Decree as necessary for the transition to a circular economy and society. |
| (3) | The Minister of Environment shall examine the appropriateness of a master plan five years after the plan is formulated. |
| (4) | Where it is necessary to amend a master plan as a result of the examination under paragraph (3) or due to changes in other conditions, the Minister of Environment may amend the plan. In such cases, the procedures under paragraph (1) shall apply mutatis mutandis. |
| (6) | The Minister of Environment may request the heads of the relevant central administrative agencies, the heads of local governments, or related institutions or organizations to provide materials or cooperation necessary for formulating a master plan. In such cases, a person so requested shall comply with the request unless there is a compelling reason not to do so. |
| (7) | Upon formulating or amending a master plan under paragraph (1) or paragraph (4), the Minster of Environment shall submit the master plan to the competent Standing Committee of the National Assembly in accordance with the procedures and methods prescribed by Presidential Decree. |
| Article 11 (Formulation and Implementation of Action Plans and Implementation Plans) |
| (1) | The head of the relevant central administrative agency shall formulate an annual action plan for the relevant master plan regarding matters under his or her jurisdiction, including an investment plan to promote the transition to a circular economy and society and shall submit such action plan to the Minister of Environment and implement it. |
| (2) | The Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") shall formulate an action plan for the relevant master plan for the areas under his or her jurisdiction every five years, including an investment plan to promote the transition to a circular economy and society, and shall implement such action plan with the approval from the Minister of Environment. The same shall also apply to any modification to approved matters. |
| (3) | The head of a Si/Gun/Gu (the head of a Gu means the head of an autonomous Gu; hereinafter the same shall apply) shall formulate an annual implementation plan for the relevant action plan formulated pursuant to paragraph (2), taking into account the conditions of the areas under his or her jurisdiction and shall submit such implementation plan to the competent Mayor/Do Governor and implement it. |
| (4) | The procedures and methods for formulating, submitting, and approving action plans and implementation plans as well as for approving modifications thereto under paragraphs (1) through (3) and other necessary matters shall be prescribed by Presidential Decree. |
| Article 12 (Statistical Surveys on Circular Economy) |
| (1) | The Minister of Environment, the head of the relevant central administrative agency, a Mayor/Do Governor, or the head of a Si/Gun/Gu may conduct a statistical survey on a circular economy, if necessary to perform the following business affairs: |
| 1. | Formulating and amending a master plan; |
| 2. | Formulating an action plan and an implementation plan under Article 11; |
| 3. | Establishing goals for a circular economy under Article 13. |
| (2) | If necessary to conduct a statistical survey pursuant to paragraph (1), the Minister of Environment, the head of the relevant central administrative agency, a Mayor/Do Governor, or the head of a Si/Gun/Gu may request the heads of the relevant administrative agencies and related institutions or organizations to provide necessary materials or information. In such cases, a person so requested shall comply with the request unless there is a compelling reason not to do so. |
| (3) | The Minister of Environment, the head of the relevant central administrative agency, a Mayor/Do Governor, or the head of a Si/Gun/Gu may entrust the relevant specialized agency with business affairs regarding the planning, analysis, and management of statistical surveys under paragraph (1), as prescribed by Ordinance of the Ministry of Environment. |
| (4) | The subject matter, timing, and methods of statistical surveys under paragraph (1) and other necessary matters shall be prescribed by Ordinance of the Ministry of Environment. |
CHAPTER III POLICY MEASURES TO PROMOTE CIRCULAR ECONOMY
| Article 13 (Establishment of Goals for Circular Economy) |
| (1) | To promote the transition to a circular economy and society, the Minister of Environment shall establish mid- to long-term and phased national goals for a circular economy in terms of the following indicators and shall take measures necessary to achieve such goals: |
| 1. | Waste generation reduction ratio (referring to the waste reduction ratio of the relevant year to that of the base year by the basic unit); |
| 2. | The terminal disposal ratio (referring to the ratio of the quantity of wastes terminally disposed of to that of wastes generated); |
| 3. | The circular use ratio (referring to the ratio of the quantity of wastes utilized for circular use to that of wastes generated); |
| 4. | The energy recovery ratio (referring to the ratio of the quantity of wastes converted to energy to that of generated wastes usable as energy). |
| (2) | When establishing mid- to long-term and phased national goals for a circular economy pursuant to paragraph (1), the Minister of Environment shall take into account the domestic conditions, international trends, and other similar factors of a circular economy, in consultation with the heads of relevant central administrative agencies. |
| (3) | Detailed methods for calculating the ratio specified in the subparagraphs of paragraph (1) shall be prescribed by Ordinance of the Ministry of Environment. |
| Article 14 (Circular Economy Performance Management and Support for Cities/Dos) |
| (1) | A Mayor/Do Governor shall establish and manage goals for a circular economy for the relevant Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province (hereinafter referred to as "City/Do"), taking into account the mid- to long-term and phased national goals for a circular economy for the matters specified in Article 13 (1) 1 through 3, the conditions of the areas under his or her jurisdiction, and other relevant factors and shall submit the performance record of the goals to the Minister of Environment, as prescribed by Ordinance of the Ministry of Environment. |
| (2) | The Minister of Environment shall ascertain how a City/Do establishes and manages goals for a circular economy pursuant to paragraph (1) to provide guidance on and supervise the matters implemented and may provide financial and technical assistance to the relevant City/Do based on the outcomes of implementation. |
| Article 15 (Circular Economy Performance Management and Support for Business Entities) |
| (1) | In order to achieve the mid- to long-term and phased national goals for a circular economy under Article 13 (1), the Minister of Environment shall establish and manage the targets for a circular economy specified in subparagraphs 2 and 3 of that paragraph for each business entity falling under the type and scale of business prescribed by Ordinance of the Ministry of Environment (hereinafter referred to as "person subject to the management of circular economy performance"), taking into account conditions for circular use, as prescribed by Ordinance of the Ministry of Environment. |
| (2) | When establishing targets for a circular economy for each person subject to the management of circular economy performance pursuant to paragraph (1), the Minister of Environment shall take into account the scale of business, technological level, international competitiveness, the past record of achieving targets, etc. of the relevant person, in consultation with the Minister of Trade, Industry and Energy and the trade association established pursuant to Article 44. |
| (3) | Where it is impracticable for a person subject to the management of circular economy performance to achieve the targets for a circular economy for each person subject to the management of circular economy performance established pursuant to paragraphs (1) and (2) due to closure or breakdown of resource circulation facilities, a setback in a plan to expand such facilities, changes in the resource circulation market, or any other cause prescribed by Ordinance of the Ministry of Environment, the person may request the Minister of Environment to re-establish such targets within one month from the date such cause arises, by submitting materials necessary for re-establishing the targets to the Minister of Environment. |
| (4) | A person subject to the management of circular economy performance shall submit the following materials to the Minister of Environment, as prescribed by Ordinance of the Ministry of Environment: |
| 1. | An implementation plan to achieve the targets for each person subject to the management of circular economy performance established pursuant to paragraphs (1) through (3) and the outcomes of implementation thereof; |
| 2. | Matters necessary for establishing mid- to long-term and phased national goals for a circular economy pursuant to Article 13 (1). |
| (5) | Where a person subject to the management of circular economy performance achieves in excess of his or her targets for a circular economy established pursuant to paragraphs (1) through (3) through an assessment of the performance record submitted pursuant to paragraph (4) 1, the Minister of Environment may include such excess into the person's performance of the following year; and if the person fails to achieve the targets, the Minister may issue an order to compensate for the shortfall in achievement of the targets in the following year. |
| (6) | Where a person subject to the management of circular economy performance fails to submit the materials or the implementation plan, etc. under paragraph (1) or (4) or fails to comply with an order issued pursuant to paragraph (5), the Minister of Environment may take necessary measures prescribed by Presidential Decree, such as disclosing the relevant failure. |
| (7) | The Minister of Environment and the Minister of Trade, Industry and Energy may provide administrative, technical, and financial support necessary for persons subject to the management of circular economy performance to support the achievement of the targets for each such person and may provide preferential administrative, technical, and financial treatment to such persons who have excellent performance in achieving the targets for a circular economy. |
| (8) | Matters necessary for the establishment and the management of the targets under paragraphs (1) and (2), the re-establishment of the targets for a circular economy under paragraph (3), the assessment of the performance record under paragraph (5), the support and preferential treatment to persons subject to the management of circular economy performance under paragraph (7), etc. shall be prescribed by Ordinance of the Ministry of Environment. |
| Article 16 (Promotion of Use of Circular Raw Materials) |
The Minister of Environment and the Minister of Trade, Industry and Energy may conduct the following projects in order to reduce the use of natural resources and promote the use of circular raw materials in the process of producing products, etc.:
| 1. | Research and development of alternative raw materials for natural resources, such as bio-based raw materials; |
| 2. | Research and development to improve the quality of circular raw materials; |
| 3. | Research and development of technologies and techniques to promote the use of circular raw materials and utilization of developed technologies and techniques; |
| 4. | Technical cooperation and guidance and technology transfer related to the use of circular raw materials; |
| 5. | Other projects prescribed by Presidential Decree as necessary to promote the use of circular raw materials. |
| Article 17 (Promotion of Circular Use of Products, etc.) |
A person who produces or imports products, etc. prescribed by Presidential Decree shall endeavor to comply with the matters prescribed by Presidential Decree regarding the following matters in order to promote the circular use of products, etc.:
| 1. | Matters regarding the use of circular raw materials of products, etc. or environmentally friendly materials and methods; |
| 2. | Matters regarding the durability and easy repair of, products, etc.; |
| 3. | Matters regarding the possibility of circular use in the entire process of production, distribution, consumption, disposal, etc. of products, etc.; |
| 4. | Matters regarding the impact of carbon emissions in the entire process of production, distribution, consumption, disposal, etc. of products, etc. |
| Article 18 (Assessment of Circular Usability of Products, etc.) |
| (1) | The Minister of Environment may conduct a circular usability assessment of products, etc. that are deemed less usable for circular use. |
| (2) | A circular usability assessment under paragraph (1) shall be conducted for the following: |
| 1. | Matters specified in the subparagraphs of Article 17; |
| 2. | The possibility of proper disposal of products, etc. in cases where such products, etc., are discarded; |
| 3. | The weight, volume, material, and composition of products, etc., in cases where such products, etc. are discarded; |
| 4. | Other matters prescribed by Ordinance of the Ministry of Environment as necessary to promote circular use of products, etc. |
| (3) | Where it is deemed that products, etc. might not be usable for circular use as a result of circular usability assessment under paragraphs (1) and (2), the Minister of Environment may recommend a person who produces, processes, imports, or sells the relevant products, etc. (hereafter in this Article referred to as "person subject to improvement") to improve circular usability within a specified period or may take support measures necessary for improvement. In such cases, the Minister shall hear the opinions of persons subject to improvement who have difficulty in improving products, etc. |
| (4) | Where a person in receipt of a recommendation under paragraph (3) fails to comply with the recommendation, the Minister of Environment may disclose the results of the circular usability assessment of the relevant products, etc.: Provided, That this shall not apply where the details to be disclosed constitute trade secrets defined in subparagraph 2 of Article 2 of the Unfair Competition Prevention and Trade Secret Protection Act. |
| (5) | The methods and procedures for circular usability assessment under paragraphs (1) through (4) and other necessary matters shall be prescribed by Presidential Decree. |
| Article 19 (Promotion of Circular Use in Distribution Process) |
| (1) | To promote the circular use of packaging materials for distribution, the Minister of Environment may conduct the following projects: |
| 1. | Surveys to ascertain the current status of the circular use of domestic and foreign packaging materials for distribution; |
| 2. | Standardization of packaging materials for distribution to promote circular use; |
| 3. | Research and development of technologies and techniques for the circular use of packaging materials for distribution and utilization of developed technologies and techniques; |
| 4. | Technical cooperation and guidance and technology transfer related to the circular use of packaging materials for distribution; |
| 5. | Other projects prescribed by Ordinance of the Ministry of Environment as necessary to promote the circular use of packing materials for distribution. |
| (2) | Distributors prescribed by Presidential Decree, taking into account the methods of sale of products, sales volume, etc. shall endeavor to comply with matters prescribed by Presidential Decree, such as the circular use of packing materials for distribution, in order to reduce such packing materials and wastes generated therefrom to a possible minimum. |
| Article 20 (Use of Sustainable Products) |
A person who produces or imports products prescribed by Presidential Decree shall endeavor to comply with the standards prescribed by Presidential Decree regarding the following, so that such products may be repaired and used without being discarded prematurely for the sustainable use of the products:
| 1. | Securing spare parts necessary for repair; |
| 2. | Deadline for delivery of spare parts; |
| 3. | Other matters prescribed by Presidential Decree as necessary to repair products. |
CHAPTER IV PROMOTION OF USE OF CIRCULAR RESOURCES AND PRODUCTS WITH CIRCULAR RESOURCE CERTIFICATION
| Article 21 (Recognition of Circular Resources) |
| (1) | The Minister of Environment may recognize substances or articles that meet all of the following standards among wastes as circular resources, in consultation with the Minister of Trade, Industry and Energy; in such cases, the Minister of Trade, Industry and Energy may request the Minister of Environment to recognize substances or articles related to business affairs under his or her jurisdiction as circular resources: |
| 1. | The relevant substances or articles shall not be harmful to human health and the environment; |
| 2. | The relevant substances or articles shall have economic value high enough to conduct onerous transactions and shall be unlikely to be abandoned; |
| 3. | The relevant substances or articles shall meet other standards for circular resources prescribed by Presidential Decree. |
| (2) | An individual, corporation, or organization that intends to obtain recognition of circular resources pursuant to paragraph (1) shall apply for such recognition to the Minister of Environment. In such cases, the Minister of Environment shall issue a certificate to the relevant applicant if the substances or articles stated in the application meet the standards specified in paragraph (1). |
| (3) | A person who has obtained recognition of circular resources pursuant to paragraphs (1) and (2) shall re-obtain such recognition within the period prescribed by Ordinance of the Ministry of Environment, beginning on the third anniversary from the date the first recognition was granted; and the fifth anniversary of the date the final recognition was granted if the person obtains the recognition for the second time or more. |
| (4) | When granting the recognition of circular resources pursuant to paragraphs (1) through (3), the Minister of Environment may attach conditions regarding the purposes, methods, standards, etc. of circular use, if necessary for the health of citizens and the conservation of the environment. |
| (5) | No circular resources recognized by the Minister of Economy pursuant to paragraphs (1) through (3) shall be deemed wastes. |
| (6) | A person who intends to obtain recognition of circular resources pursuant to paragraphs (1) through (3) shall pay fees to the Minister of Environment. |
| (7) | The procedures and methods for applying for recognition of circular resources under paragraphs (2) and (3), the payment of fees under paragraph (6), and other necessary matters shall be prescribed by Presidential Decree. |
| (8) | When the recognition of circular resources is granted, some of the procedures, methods, etc. prescribed by Presidential Decree under paragraph (7) shall be omitted for any substances or articles prescribed by Presidential Decree, such as waste paper and waste metal, which have low environmental impacts. |
| Article 22 (Revocation of Recognition of Circular Resources) |
| (1) | The Minister of Environment may revoke the recognition of circular resources if a person who has obtained such recognition pursuant to Article 21 falls under any of the following categories: Provided, That the recognition shall be revoked if the person falls under the category specified in subparagraph 1: |
| 1. | Where the person has obtained the recognition of circular resources by fraud or other improper means; |
| 2. | Where substances or articles recognized as circular resources cease to meet the standards specified in Article 21 (1); |
| 3. | Where the conditions under Article 21 (4) cease to be satisfied. |
| (2) | Upon revoking recognition of circular resources pursuant to paragraph (1), the Minister of Environment shall notify such fact to the person for whom the recognition has been revoked. |
| (3) | A person for whom the recognition of circular resources has been revoked pursuant to paragraph (1) shall take measures necessary to treat wastes, such as reporting by a waste discharger or obtaining verification of a waste treatment plan pursuant to Article 17 of the Wastes Control Act, and shall report to the Minister of Environment on the results of the measures according to the procedures prescribed by Ordinance of the Ministry of Environment within 30 days from the date the relevant measures are taken. |
| Article 23 (Public Notice of Circular Resources) |
| (1) | The Minister of Environment may, in consultation with the Minister of Trade, Industry and Energy, designate substances or articles that satisfy all of the following requirements among wastes as circular resources and publicly notify thereof: |
| 1. | The standards specified in Article 21 (1) 1 and 2 shall be satisfied; |
| 2. | It shall be more effective not to be deemed wastes in promoting circular use. |
| (2) | Where the Minister of Environment designates and publicly notifies circular resources pursuant to paragraph (1), the Minster shall determine the purposes of use, methods, standards, etc. of circular use and shall also publicly notify thereof. |
| (3) | No circular resources designated and publicly notified by the Minister of Environment pursuant to paragraph (1) shall be deemed wastes within the scope of compliance with the purposes of use, methods, standards, etc. of circular use that are also publicly notified. |
| (4) | An individual, corporation, or organization that generates or uses circular resources designated and publicly notified by the Minister of Environment pursuant to paragraphs (1) and (2) shall submit the results thereof to the Minister of Environment each year, as prescribed by Ordinance of the Ministry of Environment. |
| (5) | Where substances or articles designated and publicly notified as circular resources pursuant to paragraph (1) fail to satisfy the requirements specified in paragraph (1), the Minister of Environment may revoke such designation. In such cases, the Minister of Environment shall publicly notify such fact. |
| (6) | Matters necessary for the procedures, methods, etc. for designating and publicly notifying circular resources under paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
| Article 24 (Promotion of Use of Circular Resources) |
| (1) | A business entity conducting such type of business in excess of such scale as prescribed by Presidential Decree that needs to promote the use of circular resources (hereinafter referred to as "business entity designated to use circular resources") shall endeavor to use at least a specified quantity of circular resources prescribed by Presidential Decree in compliance with the guidelines publicly notified jointly by the Minister of Environment and the Minister of Trade, Industry and Energy. In such cases, the guidelines shall include matters prescribed by Ordinance of the Ministry of Environment, such as the quantity of circular resources to be used and the methods of use. |
| (2) | The Minister of Environment and the Minister of Trade, Industry and Energy may provide preferential administrative, technical, and financial treatment to a business entity designated to use circular resources that has outstanding performance in using circular resources referred to in paragraph (1). |
| (3) | Where necessary to promote the use of circular resources, the Minister of Environment and the Minister of Trade, Industry and Energy may establish the standards for using raw materials that are required to be used to produce products, etc. in the types of business under paragraph (1) and jointly provide public notice thereof, in consultation with the heads of the relevant central administrative agencies. |
| Article 25 (Quality Certification of Circular Resources) |
| (1) | To enhance the quality and technical competitiveness of circular resources, the Minister of Environment may grant, upon application by a business entity, quality certification of circular resources (hereinafter referred to as "quality certification") after examining the quality and processes of the circular resources and consulting with the Minister of Trade, Industry and Energy. In such cases, the Minister of Environment may entrust business affairs necessary for quality certification to a specialized institution designated in accordance with the standards and procedures prescribed by Presidential Decree (hereinafter referred to as "certifying body"). |
| (2) | The Minister of Environment may revoke quality certification on any ground prescribed by Presidential Decree, such as where a person granted quality certification ceases to meet the relevant standards. |
| (3) | Matters necessary for the standards, procedures, etc. for quality certification under paragraph (1) and the revocation of quality certification under paragraph (2) shall be prescribed by Presidential Decree. |
| (4) | Where a certifying body falls under any of the following categories, the Minister of Environment may revoke the designation as a certifying body or order such body to fully or partially suspend its business operations for a specified period not exceeding one year: Provided, That the Minister shall revoke the designation in the case of subparagraph 1 or 5: |
| 1. | Where it has been designated by fraud or other improper means; |
| 2. | Where it has failed to conduct certification affairs for at least one year consecutively from the date of designation without good cause; |
| 3. | Where it ceases to meet the standards for designation under paragraph (1); |
| 4. | Where it has conducted certification affairs in violation of the standards and procedures for certification under paragraph (3); |
| 5. | Where it conducts certification affairs during the period of business suspension after it has received an order for business suspension. |
| Article 26 (Mark for Products Made from Circular Resources) |
| (1) | For products for which quality-certified circular resources are used as raw materials at not less than the ratio prescribed by Ordinance of the Ministry of Environment (hereinafter referred to as "products made from circular resources"), a mark indicating that such products are products made from circular resources may be placed on their packaging, containers, etc., as prescribed by Ordinance of the Ministry of Environment. |
| (2) | The Minister of Environment and the Minister of Trade, Industry and Energy may request public institutions prescribed by Presidential Decree to give priority to purchasing products made from circular resources and may recommend private organizations or enterprises to do so. |
| (3) | No products, other than products made from circular resources, shall be labeled with a mark under paragraph (1) or any similar mark on their packaging, containers, etc. |
CHAPTER V REGULATORY EXCEPTIONS FOR NEW TECHNOLOGIES AND SERVICES FOR CIRCULAR ECONOMY
| Article 27 (Deliberation Committee on New Technologies and Services for Circular Economy) |
| (1) | The Minister of Environment shall organize and operate a Deliberation Committee on New Technologies and Services for a Circular Economy (hereinafter referred to as the "Deliberation Committee") to deliberate and resolve on matters concerning regulatory exceptions for demonstration under Article 30 and temporary permission under Article 33 in a professional manner. In such cases, the number of civilian members shall be at least 1/2 of the number of all members including the Chairperson. |
| (2) | The Minister of Environment shall serve as the Chairperson of the Deliberation Committee and shall commission up to 20 members from any of the following persons: |
| 1. | A person recommended by the head of a central administrative agency or a local government (hereinafter referred to as "relevant agency") related to new technologies and services for a circular economy subject to deliberation, from among persons who have extensive expertise and experience in such new technologies and services; |
| 2. | A vice-minister or vice-minister-level public official of a central administrative agency related to new technologies and services for a circular economy subject to deliberation (in cases of a local government, a public official designated by the head of the relevant local government); |
| 3. | Other persons deemed necessary by the Minister of Environment. |
| (3) | Matters necessary for the organization, operation, etc. of the Deliberation Committee shall be prescribed by Presidential Decree. |
| Article 28 (Expedited Processing of New Technologies and Services for Circular Economy) |
| (1) | A person who intends to conduct business with a new technology or service for a circular economy may file an application with the Minister of Environment to verify whether any permission, approval, registration, authorization, verification, etc. (hereinafter referred to as "permission, etc.") under statutes or regulations related to the new technology or service for a circular economy is required for the relevant business. |
| (2) | Where an application filed under paragraph (1) is under the jurisdiction of another agency, the Minister of Environment shall notify the head of the relevant agency of the fact that the application involving the relevant new technology or service for a circular economy is filed and the details of such application. |
| (3) | The head of the relevant agency shall reply to the Minister of Environment within 30 days from the date of receipt of notification under paragraph (2), stating whether the business affairs regarding the relevant new technology or service for a circular economy are under the jurisdiction of the relevant agency and whether permission, etc. are required. Where no reply is given to the Minister of Environment for the 30-day period, it shall be deemed that such affairs are not under the jurisdiction of the relevant agency or no permission, etc. from the head of the relevant agency are required. |
| (4) | The Minister of Environment shall immediately notify the applicant of whether a reply under paragraph (3) (including whether permission, etc. in accordance with the statutes or regulations under the jurisdiction of the Ministry of Environment are required) is given, of whether temporary permission under Article 33 (1) is required, etc., of other relevant matters. |
| (5) | An applicant notified by the Minister of Environment pursuant to paragraph (4) may freely introduce the relevant new technology or service for a circular economy, except where the notification states that permission, etc. from the Minister of Environment or the head of the relevant agency are required or that temporary permission under Article 33 (1) is required. |
| (6) | Where the head of the relevant agency deems that permission, etc. under the relevant statutes or regulations are required for an application involving a new technology or service for a circular economy under paragraph (1), such head shall reply to the Minister of Environment along with the conditions, procedures, etc. necessary for permission, etc., and where an applicant files an application for permission, etc. according to the details thereof, the head shall expeditiously process such application in accordance with the relevant statutes or regulations. |
| (7) | Except as provided in paragraphs (1) through (6), matters necessary for expedited processing, etc. of new technologies and services for a circular economy shall be prescribed by Presidential Decree. |
| Article 29 (Collective Processing) |
| (1) | Where a person intends to conduct business with a new technology or service for a circular economy and if at least two items of permission, etc. are required for the relevant business, the person may file an application for collective processing with the Minister of Environment so that the relevant permission, etc. can be reviewed simultaneously. |
| (2) | Upon receipt of an application under paragraph (1), the Minister of Environment shall immediately commence the review of permission, etc. related to the business affairs under his or her jurisdiction and shall request the head of the relevant agency to promptly proceed with the review procedures for permission, etc. if the permission, etc. are related to the business affairs under the jurisdiction of such agency. |
| (3) | Upon receipt of a request from the Minister of Environment under paragraph (2), the head of the relevant agency shall immediately commence the review of permission, etc. unless there is a compelling reason not to do so, and the head shall notify the fact of commencement of the review and the review period to the Minister of Environment and a person who has filed the relevant application under paragraph (1): Provided, That where there is any special reason that makes it impossible to commence the review, the head shall notify the reason to the Minister and such person. |
| (4) | Matters necessary for the methods and procedures for, and the notification, etc. of applications for collective processing under paragraphs (1) and (3) shall be prescribed by Presidential Decree. |
| Article 30 (Regulatory Exceptions for Demonstration) |
| (1) | Where a person who intends to conduct business with a new technology or service for a circular economy has difficulty in doing so due to any of the following circumstances, such person may file an application for a regulatory exception for demonstration (hereinafter referred to as "regulatory exception") to the Minister of Environment, which allows non-application of all or part of the related regulation, in order to perform limited testing and technical verification of the relevant new technology or service: |
| 1. | Where the statutes or regulations governing permission, etc. provide for no standards, specifications, requirements, etc. applicable to the relevant new technology or service for a circular economy; |
| 2. | Where it is inappropriate to apply the standards, specifications, requirements, etc. provided in the statutes or regulations governing permission, etc. to the relevant new technology or service for a circular economy. |
| 3. | Where demonstration is required, within a limited area, period, scale, etc. for the relevant new technology or service for a circular economy, for which it is impossible to apply for permission, etc. under other statutes or regulations. |
| (2) | An applicant for a regulatory exception under paragraph (1) shall purchase liability insurance to compensate for personal injury and property damage that might be caused by the business subject to the regulatory exception, prior to conducting the business: Provided, That where it is impracticable for a business entity granted a regulatory exception to purchase liability insurance, such entity shall formulate compensatory measures in case of any personal injury or property damage that might be caused by the relevant regulatory exception after a separate consultation with the Minister of Environment; and matters necessary for the methods, standards, procedures, etc. for providing compensation shall be prescribed by Presidential Decree. |
| (3) | Upon receipt of an application under paragraph (1), the Minister of Environment shall notify the details of the application to the head of the relevant agency, who shall review such details and send the result thereof in writing to the Minister within 30 days: Provided, That where it is impracticable to specify the relevant agency, the Minister of Environment shall process the application under his or her jurisdiction. |
| (4) | Where the head of the relevant agency requires an applicant for the relevant regulatory exception to supplement materials in order to review whether to grant the regulatory exception, the period spent in supplementing the related materials shall not be included in the period for reply under paragraph (3): Provided, That even in such cases, the head shall reply for a 90-day period regarding the results of the review and if it is impossible to reply, an extension of the period for reply may be requested only once. |
| (5) | The Minister of Environment shall submit an application filed under paragraph (1) to the Deliberation Committee, including reviews by the relevant agency. In such cases, the Minister may request the head of the relevant agency to attend a meeting of the Committee. |
| (6) | The Deliberation Committee shall deliberate on the area, period, and scale of a regulatory exception and on whether to grant the regulatory exception, in consideration of the following: |
| 1. | A business implementation plan; |
| 2. | The novelty of the relevant new technology or service for a circular economy and benefits to users; |
| 3. | Future impacts and effects on the related markets; |
| 4. | The likelihood that demonstration may cause irrecoverable damage and the appropriateness of measures to compensate for damage; |
| 5. | Potential harm to the lives, health, and safety of citizens, and to the environment; hindrances to balanced regional development; and the safe protection and processing of personal information; |
| 6. | Other matters necessary for granting a regulatory exception. |
| (7) | The Deliberation Committee may attach conditions if necessary to ensure safety, etc. |
| (8) | The Minister of Environment shall grant a regulatory exception for the relevant new technology or service for a circular economy based on the results of deliberation and mediation under paragraphs (6) and (7). |
| (9) | Where the Minister of Environment grants a regulatory exception under paragraph (8), the Minister shall notify the applicant for the regulatory exception, of the criteria for review of the regulatory exception for the relevant new technology or service for a circular economy. |
| (10) | The effective period of a regulatory exception shall be determined by the Deliberation Committee, within the range of two years. |
| (11) | A person who has been granted a regulatory exception pursuant to paragraph (8) and has provided the relevant new technology or service for a circular economy shall be liable to compensate for personal injury and property damage caused by such technology or service: Provided, That the foregoing shall not apply where a person granted a regulatory exception proves the lack of intent or negligence on his or her part. |
| (12) | The head of the relevant agency may provide support necessary to facilitate the implementation of projects for demonstration. |
| (13) | Details about paragraphs (1) through (12), matters necessary for the review criteria, procedures, and methods for granting regulatory exceptions, and other necessary matters shall be prescribed by Presidential Decree. |
| Article 31 (Management and Supervision of Regulatory Exceptions) |
| (1) | The Minister of Environment and the head of the relevant agency shall jointly manage and supervise demonstrations, etc. conducted under a regulatory exception granted pursuant to Article 30 (8). |
| (2) | The head of the relevant agency and a person who intends to conduct a demonstration under a regulatory exception granted pursuant to Article 30 (8) shall provide the users of the relevant new technology or service for a circular economy with readily understandable information regarding the regulatory exception granted, the effective period thereof, etc. and shall actively respond to issues such as potential harm to the lives, health, and safety of citizens and to the environment; and hindrances to balanced regional development; and the safe protection and processing of personal information. |
| (3) | Where the head of the relevant agency deems it necessary to make legislative arrangements even before the expiration of the effective period of a regulatory exception, the head shall immediately commence such arrangements. |
| (4) | Where a person granted a regulatory exception falls under any of the following categories, the Minister of Environment may revoke the application of the regulatory exception or issue a corrective order: Provided, That the Minister shall revoke such application in the case of subparagraph 1: |
| 1. | Where the person has been granted the regulatory exception by fraud or other improper means; |
| 2. | Where the person ceases to meet the conditions under Article 30 (7) or the criteria for review under paragraph (9) of that Article; |
| 3. | Where it is deemed obviously impossible to achieve the purpose of the regulatory exception. |
| (5) | No person for whom the application of a regulatory exception has been revoked pursuant to paragraph (4) shall sell, use, or provide the relevant new technology or service for a circular economy or conduct any similar act. |
| (6) | Details about paragraphs (1) through (5), the procedures for revoking the application of regulatory exceptions, and other necessary matters shall be prescribed by Presidential Decree. |
| Article 32 (Extension of Regulatory Exceptions) |
| (1) | Where no legislative arrangements have been made related to the matters subject to regulatory exceptions before the expiration of the effective period of the regulatory exceptions under Article 30 (10), the Minister of Environment may extend the effective period only once by up to two years. |
| (2) | A person who intends to obtain an extension of the effective period of the relevant regulatory exception pursuant to paragraph (1) shall file an application with the Minister of Environment at least two months before the expiration of the effective period. |
| (3) | A person granted a regulatory exception pursuant to Article 30 (8) (including a person who obtains an extension of the effective period pursuant to paragraph (1) of this Article) may file with the Minister of Environment and the head of the relevant administrative agency a request for legislative arrangements related to the matters subject to the relevant regulatory exception, along with the results of applying the regulatory exception and business results, at least two months before the expiration of the effective period. |
| (4) | The head of the relevant administrative agency shall review the necessity for legislative arrangements related to the matters subject to the relevant regulatory exception, based on the results of applying the regulatory exception and business results submitted pursuant to paragraph (3); shall report the results of the review to the Deliberation Committee; and shall immediately commence the legislative arrangements if such arrangements are deemed necessary on the grounds that the safety, etc. of the relevant new technology or service for a circular economy have been proven. |
| (5) | Where the Minister of Environment deems it necessary to make legislative arrangements, different from the results of review by the relevant administrative agency, the Minister may file a request for regulatory improvement with, or submit his or her opinions to, the Regulatory Reform Committee established under Article 23 of the Framework Act on Administrative Regulation (hereinafter referred to as the "Regulatory Reform Committee") pursuant to Articles 17 and 17-2 of that Act, and the Regulatory Reform Committee may review the request for regulatory improvement or submitted opinions pursuant to Article 18 of that Act. |
| (6) | Where the head of the relevant administrative agency has commenced legislative arrangements pursuant to paragraph (4) (including where such head has commenced legislative arrangements after review by the Regulatory Reform Committee under paragraph (5)), the Minister of Environment may grant temporary permission under Article 33 for the relevant new technology or service for a circular economy unless it is obvious that such technology or service is prohibited under other statutes. |
| (7) | Notwithstanding paragraph (1), where a request under paragraph (3) is made, the effective period of the relevant regulatory exception shall be deemed not to have expired during the period necessary for the procedures under paragraphs (4) through (6). |
| (8) | Where the statutes or regulations governing permission, etc. for the relevant new technologies and services for a circular economy have been improved, a person granted the relevant regulatory exception pursuant to Article 30 (8) (including a person who has obtained temporary permission pursuant to paragraph (6) of this Article) shall, without delay, obtain permission, etc. in accordance with such statutes or regulations. |
| (9) | A person granted a regulatory exception under Article 30 (8) (excluding a person who has filed a request for legislative arrangements pursuant to paragraph (3)) shall submit the results of applying the regulatory exception and business results to the Minister of Environment and the head of the relevant agency within 30 days from the expiration date of the effective period. In such cases, paragraphs (4) and (5) shall apply mutatis mutandis to the legislative arrangements. |
| (10) | The Minister of Environment may disclose the results of applying the regulatory exception under paragraphs (3) and (9) to vitalize markets related to the relevant new technology or service for a circular economy. |
| (11) | Details about paragraphs (1) through (10) and matters necessary for the procedures for the extension, etc. of regulatory exceptions shall be prescribed by Presidential Decree. |
| Article 33 (Temporary Permission) |
| (1) | A person who intends to conduct business with a new technology or service for a circular economy may file an application for temporary permission for the relevant new technology and service with the Minister of Environment in any of the following cases: |
| 1. | Where the statutes or regulations governing permission, etc. provide for no standards, specifications, requirements, etc. applicable to the relevant new technology or service for a circular economy; |
| 2. | Where it is inappropriate to apply the standards, specifications, requirements, etc. provided in the statutes or regulations governing permission, etc. to the relevant new technology or service for a circular economy. |
| (2) | An applicant for temporary permission under paragraph (1) shall purchase liability insurance to compensate for personal injury and property damage that might be caused by the business subject to the permission, prior to conducting the business: Provided, That where it is impracticable for a business entity granted temporary permission to purchase liability insurance, such entity shall formulate compensatory measures in case of any personal injury or property damage that might be caused by the permission after a separate consultation with the Minister of Environment; and matters necessary for the methods, standards, procedures, etc. for providing compensation shall be prescribed by Presidential Decree. |
| (3) | Upon receipt of an application under paragraph (1), the Minister of Environment shall notify the details of the application to the head of the relevant agency, who shall review such details and send the result thereof in writing to the Minister within 30 days: Provided, That where it is impracticable to specify the relevant agency, the Minister of Environment shall process the application under his or her jurisdiction. |
| (4) | Where the head of the relevant agency requires an applicant for temporary permission to supplement materials in order to review whether to grant the permission, the period spent in supplementing the related materials shall not be included in the period for reply under paragraph (3): Provided, That even in such cases, the head shall reply for a 90-day period regarding the results of the review and if it is impossible to reply, an extension of the period for reply may be requested only once. |
| (5) | The Minister of Environment shall submit an application filed under paragraph (1) to the Deliberation Committee, including reviews by the relevant agency. In such cases, the Minister may request the head of the relevant agency to attend a meeting of the Committee. |
| (6) | The Deliberation Committee shall deliberate on whether to grant temporary permission in consideration of the following information; in such cases, the Committee may attach necessary conditions, such as an order to conduct a test or inspection by an institution or organization equipped with professional human resources and technology, in order to ensure safety, etc.: |
| 1. | A business implementation plan; |
| 2. | The novelty of the relevant new technology or service for a circular economy and benefits to users; |
| 3. | The likelihood that the relevant new technology or service for a circular economy may cause irrecoverable damage and the appropriateness of measures to compensate for damage; |
| 4. | Potential harm to the lives, health, and safety of citizens and to the environment; hindrances to balanced regional development; and the safe protection and processing of personal information. |
| (7) | The Minister of Environment shall grant temporary permission for the relevant new technology or service for a circular economy based on the results of deliberation and mediation under paragraph (6). |
| (8) | Where the Minister of Environment grants temporary permission pursuant to paragraph (7), the Minister shall notify the relevant applicant for temporary permission, of the criteria for review of granting temporary permission for the relevant new technology or service for a circular economy. |
| (9) | The effective period of temporary permission shall be determined by the Deliberation Committee within an extent not exceeding two years: Provided, That where no legislative arrangements have been made related to the statutes or regulations governing permission, etc. for the relevant new technology or service for a circular economy subject to temporary permission before the expiration of the effective period, the Minister of Environment may extend the effective period once by up to two years. |
| (10) | A person who intends to obtain an extension of the effective period of the relevant temporary permission pursuant to the proviso of paragraph (9) shall file an application with the Minister of Environment at least two months before the expiration of the effective period. |
| (11) | A person who has been granted temporary permission pursuant to paragraph (7) and has provided the relevant new technology or service for a circular economy shall be liable to compensate for personal injury and property damage caused by such technology or service: Provided, That the foregoing shall not apply where a person granted temporary permission proves the lack of intent or negligence on his or her part. |
| (12) | The head of the relevant agency shall commence legislative arrangements related to the statutes or regulations governing permission, etc. for the relevant new technology or service for a circular economy before the expiration of the effective period of the temporary permission under paragraph (9). |
| (13) | Where no legislative arrangements have been made related to the statutes or regulations governing permission, etc. within the effective period of the temporary permission extended pursuant to the proviso of paragraph (9), such period shall be deemed extended until the legislative arrangements are completed. |
| (14) | Where the statutes or regulations governing permission, etc. for the relevant new technology or service for a circular economy are prepared, a person who has been granted temporary permission therefor shall obtain permission, etc. in accordance with such statutes or regulations without delay. |
| (15) | Details about paragraphs (1) through (14), matters necessary for the review criteria, procedures, and methods for granting temporary permission, and other necessary matters shall be prescribed by Presidential Decree. |
| Article 34 (Revocation of Temporary Permission) |
| (1) | Where a person who has obtained temporary permission pursuant to Article 33 (7) falls under any of the following categories, the Minister of Environment may revoke the temporary permission or issue a corrective order: Provided That in the case of subparagraph 1, the Minister shall revoke such permission: |
| 1. | Where the person has obtained the temporary permission by fraud or other improper means; |
| 2. | Where the person ceases to meet the conditions specified in the latter part of Article 33 (6) or the review criteria for granting temporary permission specified in paragraph (8) of that Article. |
| (2) | No person for whom temporary permission has been revoked pursuant to paragraph (1) shall sell, use, or provide the relevant new technology or service for a circular economy or conduct any similar act. |
| (3) | Details about the revocation of temporary permission and matters necessary for the procedures for revocation, etc. shall be prescribed by Presidential Decree. |
CHAPTER VI LAYING OF FOUNDATION FOR CIRCULAR ECONOMY AND PROVISION OF ASSISTANCE
| Article 35 (Establishment of Region-Based Circular Economy) |
| (1) | The head of a local government may establish and operate a center that promotes the following projects (hereinafter referred to as "circular use center") in order to promote circular use within his or her jurisdiction: |
| 1. | Promotion of circular use of products, etc.; |
| 2. | Establishment of a circular use system; |
| 3. | Other projects deemed necessary for circular use. |
| (2) | The Minister of Environment and the Minister of Trade, Industry and Energy may provide administrative, technical, and financial assistance to a local government that intends to establish a circular use center. |
| Article 36 (Waste Disposal Charges) |
| (1) | The Minister of Environment may impose and collect waste disposal charges where the following persons dispose of wastes, which can be utilized for circular use, by incineration or landfill: |
| (2) | Notwithstanding paragraph (1), a person subject to the imposition and collection of waste disposal charges may be granted a partial or full exemption from such charges in cases prescribed by Presidential Decree, including the following cases: |
| 1. | Where the person directly creates a landfill and buries wastes therein for a certain period to recycle the wastes later; |
| 2. | Where the person recovers energy from wastes at a certain level or higher in the process of disposing of such wastes; |
| (3) | Waste disposal charges under paragraph (1) shall be calculated, taking into account the expenses that would have incurred in utilizing the incinerated or buried wastes for circular use, by multiplying the calculation index prescribed by Presidential Decree by the amount calculated by applying the computation standards prescribed by Presidential Decree to the quantity of the wastes disposed of. |
| (4) | The standards for calculation of waste disposal charges and for partial or full exemptions, the timing of and procedures for payment of the charges, and other necessary matters shall be prescribed by Presidential Decree. |
| (5) | Where necessary to grant partial or full exemptions from waste disposal charges pursuant to paragraph (2), the Minister of Environment may request the head of the competent tax office to provide taxation information under Article 81-13 of the Framework Act on National Taxes, in writing, specifying the following information: <Newly Inserted on Sep. 14, 2023> |
| 1. | Personal information of the relevant taxpayer; |
| 2. | The purpose of using taxation information; |
| 3. | Matters regarding the sales amount, which is the basis for partial or full exemptions from waste disposal charges. |
| (6) | Where a person liable to pay waste disposal charges fails to pay the charges by the payment deadline, the Minister of Environment shall issue a demand notice, specifying a period of at least 30 days. In such cases, a late payment penalty equivalent to 3/100 of the delinquent waste disposal charges shall be imposed. <Amended on Sep. 14, 2023> |
| (7) | Where a person in receipt of a demand notice under paragraph (6) fails to pay the waste disposal charges or late payment penalty by the specified payment deadline, such charges or penalty shall be collected in the same manner as delinquent national taxes are compulsorily collected. <Amended on Sep. 14, 2023> |
| (8) | Waste disposal charges and late payment penalties under paragraph (6) shall be managed as revenues of the Special Account for Environmental Improvement established under the Framework Act on Environmental Policy. <Amended on Sep. 14, 2023> |
| (9) | Where the Minister of Environment delegates his or her authority or entrusts business affairs to collect waste disposal charges or late payment penalties to a Mayor/Do Governor or to a specialized institution, such as the Korea Environment Corporation established under the Korea Environment Corporation Act, pursuant to Article 47, the Minister may provide as grants some of the collected waste disposal charges or late payment penalties to the Mayor/Do Governor or to the specialized institution, as prescribed by Presidential Decree. <Amended on Sep. 14, 2023> |
| (10) | Where necessary to calculate waste disposal charges, the Minister of Environment may request the Korea Environment Corporation established under the Korea Environment Corporation Act or a person who establishes and operates waste incinerators or landfill facilities to submit related materials. In such cases, a person so requested shall comply with the request unless there is a compelling reason not to do so. <Amended on Sep. 14, 2023> |
| (11) | Where necessary to collect delinquent waste disposal charges, the Minister of Environment may request the Minister of Land, Infrastructure and Transport and the head of the competent local government to provide any of the following materials regarding an industrial waste discharger under Article 18 (1) of the Wastes Control Act; in such cases, a person so requested shall comply with the request unless there is a compelling reason not to do so: <Newly Inserted on Sep. 14, 2023> |
| Article 37 (Uses of Waste Disposal Charges) |
Waste disposal charges shall be used for the following:
| 1. | Public relations, education, culture creation, and any other project to facilitate circular use; |
| 2. | A project to improve the environments of waste treatment facilities, resource circulation facilities, and surrounding areas thereof; |
| 3. | Establishment and operation of facilities to minimize the generation of wastes and to facilitate circular use and proper disposal; |
| 4. | Creation and operation of complexes for resource circulation industry and small resource circulation facilities; |
| 5. | A project to improve the waste collection environment, installations, etc. for persons who gather and transport waste paper, scrap iron, etc. and for small resource circulation facilities; |
| 6. | Research and development and international cooperation relating to minimizing the generation of wastes and facilitating circular use and proper disposal; |
| 7. | Other projects prescribed by Presidential Decree to promote the transition to a circular economy and society. |
| Article 38 (Establishment of Special Account for Circular Economy) |
| (1) | To secure expenses for projects necessary for promoting the transition to a circular economy and society, a Special Account for a Circular Economy (hereinafter referred to as the "Special Account") may be established in a City/Do or a Si/Gun/Gu (Gu means an autonomous Gu). |
| (2) | Revenues of the Special Account shall be as follows: <Amended on Sep. 14, 2023> |
| 1. | Subsidies from the State or a City/Do; |
| 2. | Money transferred from a general account or any other Special Account; |
| 3. | Grants provided pursuant to Article 36 (9) out of waste disposal charges and late payment penalties; |
| 5. | Waste treatment charges at the rate prescribed by ordinance of the relevant local government, out of the charges for waste treatment in waste treatment facilities under Article 6 of the Wastes Control Act; |
| 6. | Proceeds at the rate prescribed by ordinance of the relevant local government, out of the proceeds accruing from the installation and operation of waste treatment facilities (excluding waste treatment charges under subparagraph 5); |
| 7. | Revenues generated from the management and operation of the projects specified in the subparagraphs of paragraph (3); |
| 8. | Proceeds accruing from the operation of the funds specified in subparagraphs 1 through 7. |
| (3) | Expenditures from the Special Account shall be used for the following: |
| 1. | The projects specified in subparagraphs 1 through 5 of Article 37; |
| 2. | Other projects prescribed by Ordinance of the Ministry of Environment to promote the transition to a circular economy and society. |
| (4) | Other details necessary to establish and operate the Special Account shall be prescribed by ordinance of the relevant local government. |
[Enforcement Date: Jul. 1, 2023]
| Article 39 (Establishment and Operation of Circular Resource Information Center) |
| (1) | To promote circular use, the Minister of Environment may establish and operate a Circular Resource Information Center (hereinafter referred to as the "Circular Resource Information Center") to manage and provide information on circular raw materials, circular resources, etc. or may entrust its establishment and operation to the relevant specialized institution. |
| (2) | Matters necessary to establish and operate the Circular Resource Information Center and to provide information on circular resources and other relevant matters shall be prescribed by Presidential Decree. |
| Article 40 (Establishment and Operation of Circular Economy Information System) |
| (1) | The Minister of Environment shall establish and operate a circular economy information system (hereinafter referred to as the "circular economy information system") to systematically manage information prescribed by Ordinance of the Ministry of Environment which relates to circular economy performance management, etc. prescribed in Articles 13 through 15. |
| (3) | Matters necessary for the methods of establishing and operating the circular economy information system and the methods of disclosing information under paragraph (2) and other relevant matters shall be prescribed by Ordinance of the Ministry of Environment. |
| (4) | The Minister of Environment may request the head of the relevant agency to submit materials necessary to establish and operate the circular economy information system. In such cases, a person so requested shall comply with the request unless there is a compelling reason not to do so. |
| Article 41 (Financial and Technical Assistance) |
| (1) | For the development of a circular economy and society, the State and a local government may provide necessary financial and technical assistance or loans, etc. under finance-related statutes to a local government, a trade association under Article 44, or a business entity, etc. that conduct the following projects: |
| 1. | A project to establish and operate facilities necessary for the development of a circular economy and society; |
| 2. | A research and development project for the development of a circular economy and society; |
| 3. | A project necessary to foster the resource circulation industry; |
| 4. | A project to promote the use of circular resources by business entities; |
| 5. | A project to improve the waste collection environment, installations, etc. for persons who gather and transport waste paper, scrap iron, etc. and for small resource circulation facilities; |
| 6. | Other projects prescribed by Ordinance of the Ministry of Environment, which are necessary for the development of a circular economy and society. |
| (2) | The Government may subsidize a business entity specified in paragraph (1) with funds necessary for improving the environment and facilities or establishing installations or with research and development funds, etc. from the following funds or Fund: |
| (3) | The Minister of Environment may request necessary cooperation from the head of the relevant central administrative agency that manages the funds or Fund specified in the subparagraphs of paragraph (2). |
| Article 42 (Legislative or Administrative Measures) |
| (1) | The State and a local government shall take necessary legislative or administrative measures, such as deregulation under the relevant statutes or regulations for the development of a circular economy and society. |
| (2) | The Minister of Environment and the Minister of Trade, Industry and Energy may request the heads of the relevant central administrative agencies in charge of the related statutes or regulations specified in paragraph (1) to take necessary measures, such as amending the statutes or regulations. |
| Article 43 (International Cooperation for Transition to Circular Economy and Society) |
| (1) | To promote international cooperation for the transition to a circular economy and society, the State shall take necessary measures, such as providing information and technical and financial assistance. |
| (2) | To promote international cooperation under paragraph (1), the Minister of Environment and the heads of the relevant central administrative agencies may conduct the following projects: |
| 1. | Surveys and research on international cooperation related to a circular economy and society; |
| 2. | International exchanges of human resources and information related to a circular economy and society; |
| 3. | Holding exhibitions and seminars on a circular economy and society; |
| 4. | Exploring overseas markets to develop the resource circulation industry; |
| 5. | Other projects deemed necessary to promote international cooperation. |
| (3) | The Minister of Environment and the heads of the relevant central administrative agencies may provide necessary assistance to an institution, organization, business entity, etc. that conduct a project specified in the subparagraphs of paragraph (2). |
CHAPTER VII SUPPLEMENTARY PROVISIONS
| Article 44 (Establishment of Trade Association) |
| (1) | A person subject to the management of circular economy performance or a business entity designated to use circular resources may establish a trade association (hereinafter referred to as "trade association") in order to seamlessly conduct business affairs related to the circular economy performance management for business entities under Article 15, the promotion of the use of circular resources under Article 24, etc. |
| (2) | A trade association shall be a corporation. |
| (3) | A person who intends to establish a trade association shall submit to the Minister of Environment an application stating the purpose of its establishment, the scope of business, and other matters prescribed by Ordinance of the Ministry of Environment, along with the articles of incorporation and shall obtain authorization for the establishment. |
| (4) | Where a person who has obtained authorization to establish a trade association under paragraph (3) intends to modify any matters prescribed by Ordinance of the Ministry of Environment, the person shall obtain authorization for modification from the Minister of Environment. |
| (5) | Upon granting authorization to establish a trade association under paragraph (3) or authorization for modification under paragraph (4), the Minister of Environment shall publicly announce such fact. |
| (6) | Except as provided in this Act, the provisions of the Civil Act governing incorporated associations shall apply mutatis mutandis to a trade association. |
| Article 45 (Reporting and Inspection) |
| (1) | The Minster of Environment may require any of the following persons to file a report or submit materials or may have relevant public officials enter an office, a place of business, a bonded area under Article 154 of the Customs Act, or any other similar place to inspect relevant documents, facilities, equipment, etc. to the extent necessary for enforcing this Act, as prescribed by Ordinance of the Ministry of Environment: |
| 1. | A person subject to the management of circular economy performance; |
| 2. | A person who produces, processes, imports, or sells products, etc. subject to an assessment of circular usability under Article 18; |
| 3. | A person who has obtained recognition of circular resources pursuant to Article 21; |
| 4. | A business entity designated to use circular resources; |
| 6. | A person who has been granted quality certification pursuant to Article 25; |
| 7. | A person subject to the imposition and collection of waste disposal charges under Article 36. |
| (2) | A public official who conducts an inspection pursuant to paragraph (1) shall carry an identification verifying his or her authority and present it to relevant persons. |
| (3) | To conduct an inspection pursuant to paragraph (1), a public official shall notify a person subject to inspection of an inspection plan including the date, purpose, details, etc. of the inspection seven days prior to the inspection: Provided, That this shall not apply where an urgent inspection is required or where giving a prior notice can defeat the purpose of the inspection. |
The Minister of Environment shall hold a hearing to take any of the following dispositions:
| 1. | Revoking recognition of circular resources pursuant to Article 22 (1); |
| 2. | Revoking quality certification pursuant to Article 25 (2); |
| 3. | Revoking designation of a certifying body pursuant to Article 25 (4); |
| 4. | Revoking application of regulatory exceptions pursuant to Article 31 (4); |
| 5. | Revoking temporary permission pursuant to Article 34 (1). |
| Article 47 (Delegation and Entrustment of Authority) |
| (1) | Part of the authority of the Minister of Environment under this Act may be delegated to a Mayor/Do Governor or the head of a regional environmental agency, as prescribed by Presidential Decree. |
| (2) | Part of the business affairs of the Minister of Environment under this Act may be entrusted to the Korea Environment Corporation established under the Korea Environment Corporation Act, the Korea Environmental Industry and Technology Institute established under the Korea Environmental Industry and Technology Institute Act, and a specialized institution prescribed by Presidential Decree, as prescribed by Presidential Decree. |
| Article 48 (Legal Fiction as Public Officials for Purposes of Applying Penalty Provisions) |
| Article 49 (Effective Period and Re-Examination Period of Regulation) |
| (1) | Waste disposal charges under Article 36 shall remain effective until January 1, 2028. |
| (2) | The Minister of Environment shall examine the appropriateness of the following every three years, counting from January 1, 2021 (referring to the period that ends on the day before the third-year anniversary of the base date) and shall take measures, such as making improvements: |
| 1. | Circular economy performance management for business entities under Article 15; |
| 2. | The promotion of the use of circular resources under Article 24. |
[Enforcement Date: Jan. 1, 2023]
CHAPTER VIII PENALTY PROVISIONS
| Article 50 (Penalty Provisions) |
A person who labels a product with a mark indicating that such product is made from circular resources or any similar mark, in violation of Article 26 (3), shall be punished by imprisonment with labor for up to two years or by a fine not exceeding 20 million won.
| Article 51 (Joint Penalty Provisions) |
If the representative of a corporation or an agent or employee of, or any other person employed by, the corporation or an individual commits any violation described in Article 50 in conducting the business affairs of the corporation or individual, the corporation or individual shall be punished by a fine prescribed in that Article in addition to punishing the violator accordingly: Provided, That the foregoing shall not apply where the corporation or individual has not been negligent in giving due attention and supervision regarding the business affairs to prevent such violation.
| Article 52 (Administrative Fines) |
| (1) | Any of the following persons shall be subject to an administrative fine not exceeding 10 million won: |
| 1. | A person who fails to purchase liability insurance or fails to formulate separate compensatory measures, in violation of Article 30 (2) or 33 (2); |
| 2. | A person who sells, uses, or provides a new technology or service for a circular economy after the application of a regulatory exception for the relevant technology or service is revoked, in violation of Article 31 (5); |
| 3. | A person who fails to obtain permission, etc. under statutes or regulations, in violation of Article 32 (8); |
| 4. | A person who sells, uses, or provides a new technology or service for a circular economy after temporary permission for the relevant technology or service is revoked, in violation of Article 34 (2). |
| (2) | Any of the following persons shall be subject to an administrative fine not exceeding one million won: <Amended on Sep. 14, 2023> |
| 1. | A person who fails to submit materials necessary for calculating waste disposal charges, in violation of Article 36 (10) or who prepares and submits false materials; |
| 2. | A person who fails to file a report or submit materials under Article 45 (1) or who files a false report or submits false materials or a person who refuses, interferes with, or evades the entry or inspection under that paragraph. |
| (3) | Administrative fines under paragraphs (1) and (2) shall be imposed and collected by the Minister of Environment. |
ADDENDA <Act No. 19208, Dec. 31, 2022>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation: Provided, That the amended provisions of Article 49 (1) shall enter into force on January 1, 2023, those of Article 38 (2) 5 through 8 six months after the date of the promulgation, and those of Articles 13 (1) 1, 17, 19 (2), and 20 two years after the date of the promulgation, respectively. Article 2 (Transitional Measures regarding Formulation of Master Plans for Circular Economy, Action Plans, and Implementation Plans)
| (1) | A master plan for resource circulation formulated by the Minister of Environment pursuant to the previous provisions as at the time this Act enters into force shall be deemed a master plan for a circular economy formulated by the Minister of Environment pursuant to the amended provisions of Article 10. |
| (2) | An annual action plan formulated by the head of the relevant central administrative agency pursuant to the previous provisions as at the time this Act enters into force shall be deemed an annual action plan under the amended provisions of Article 11 (1). |
| (3) | An action plan formulated by a Mayor/Do Governor pursuant to the previous provisions as at the time this Act enters into force shall be deemed an action plan under the amended provisions of Article 11 (2). |
| (4) | An annual implementation plan formulated by the head of a Si/Gun/Gu pursuant to the previous provisions as at the time this Act enters into force shall be deemed an annual implementation plan under the amended provisions of Article 11 (3). |
Article 3 (Transitional Measures regarding Goals for Circular Economy)
| (1) | National goals for resource circulation established pursuant to the previous provisions as at the time this Act enters into force shall be deemed goals for a circular economy under the amended provisions of Article 13. |
| (2) | City/Do goals for resource circulation established pursuant to the previous provisions as at the time this Act enters into force shall be deemed goals for a circular economy under the amended provisions of Article 14. |
| (3) | Targets for resource circulation for each person subject to the management of resource circulation performance established pursuant to the previous provisions as at the time this Act enters into force shall be deemed targets for a circular economy for each person subject to the management of circular economy performance under the amended provisions of Article 15. |
Article 4 (Transitional Measures regarding Assessment of Circular Usability)
The assessment of hazards and circular usability and the recommendation for improvement made pursuant to the previous provisions as at the time this Act enters into force shall be deemed the assessment of circular usability and the recommendation for improvement under the amended provisions of Article 18. Article 5 (Transitional Measures regarding Recognition of Circular Resources)
Circular resources recognized pursuant to the previous provisions as at the time this Act enters into force shall be deemed circular resources recognized pursuant to the amended provisions of Article 21. Article 6 (Transitional Measures regarding Quality Mark Certification for Circular Resources)
A person granted quality mark certification for circular resources pursuant to the previous provisions as at the time this Act enters into force shall be deemed a person granted quality certification for circular resources pursuant to the amended provisions of Article 25. Article 7 (Transitional Measures regarding Special Account for Circular Economy)
The Resource Circulation Special Account established pursuant to the previous provisions as at the time this Act enters into force shall be deemed the Special Account for Circular Economy under the amended provisions of Article 38. Article 8 (Transitional Measures regarding Circular Economy Information System)
The resource circulation information system established pursuant to the previous provisions as at the time this Act enters into force shall be deemed the circular economy information system under the amended provisions of Article 40. Article 9 (Transitional Measures regarding Establishment of Trade Association)
A trade association established under the previous provisions as at the time this Act enters into force shall be deemed a trade association under the amended provisions of Article 44. Article 10 (General Transitional Measures regarding Dispositions)
An act conducted by or toward an administrative agency pursuant to the previous provisions as at the time this Act enters into force shall be deemed an act conducted by or toward an administrative agency pursuant to the corresponding provisions of this Act.
Article 11 (Transitional Measures regarding Penalty Provisions or Administrative Fines)
The previous provisions shall govern the application of penalty provisions or provisions regarding administrative fines to a violation committed before this Act enters into force.
Article 12 Omitted.
Article 13 (Relationship to Other Statutes or Regulations)
A citation of any provisions of the previous Framework Act on Resources Circulation by other statutes or regulations as at the time this Act enters into force shall be deemed a citation of any corresponding provisions of this Act, if any, in lieu of such previous provisions.
ADDENDUM <Act No. 19721, Sep. 14, 2023>
This Act shall enter into force on January 1, 2024.