GOVT TO STOCK PLASTIC BOTTLES AS RESERVE

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Plastic bottles take up a good portion of recyclable household waste and most of the collected bottles were exported overseas. But with the COVID-19 pandemic continuing on, shipments have been difficult and as a result, plastic bottles have been piling up everywhere and garbage collecting companies are also signaling to refuse to pick them up. Against this backdrop, the government has taken action and started to stockpile the bottles as public reserve.

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​Here is a plastic recycling firm in Hwaseong, Gyeonggido Province. Piles of compressed bottles overflow the factory inside and out. The amount sums up to about 2,000 tons, nearly 10 times the average level. The plastic processed by different color can be used in making cotton or packaging materials and this used to be quite popular. But these days, there are rarely any buyers.

[Soundbite] YOO YEONG-GI(CEO, PLASTIC RECYCLING FIRM) : "Exports to European markets are all blocked due to the recession and COVID-19. There's no viable channel, no way out."

US and European markets, the main purchasers of Korea's used plastic bottles, are shut down amid the coronavirus pandemic. Resulting in recycled bottle sales dropping by half last month. As a result, stockpiles are increasing. Storage space at major recycling firms is roughly 70% full. With the rising inventory, there have been concerns plastic collectors may refuse to gather the bottles any longer. The government has now decided to take action and purchase the bottles instead to help alleviate the situation. Out of the 18-thousand tons in stockpile, the government will make an advance purchase of 10-thousand tons for now and keep them in storage. The plan is to resell them later when demand returns.

[Soundbite] KIM HYO-JEONG(MINISTRY OF ENVIRONMENT) : "Gov't will buy the plastic at 50% the market price with the condition of resale, so there is effectively no expense concerned. But storage fees are expected to cost around KRW 500 million."

However Korea is producing 20-thousand tons of plastic bottle waste every month and effects of this government reserve action can only be temporary. Therefore additional measures will be taken to restrict imports of used plastic coming in from Southeast Asia at a low price. Expanding the use of used plastic in making regenerated fibers will also be considered. Such efforts are to serve the most immediate task of finding suitable domestic buyers of used plastic bottles. Chaos and confusion ensuing in the country's recycling waste market is nothing new. Collection of plastic bags went through a similar situation 2 years ago when China banned such imports. This is why there are growing calls for the public sector to take over the recycled garbage collection business altogether.