The Act on Promotion of the Transition into the Circular Society (the “Circular Economic Society Act” or the “Act”) as well as its Enforcement Decree and Enforcement Rules were overhauled and went into effect on January 1, 2024. By promoting the efficient use of resources throughout the entire process of production, distribution, consumption, and recycling as well as control of waste generation and circular use, a systematic foundation for sustainable circular economic society is now established.
The key aspects of the overhaul are summarized as follows:
1. |
Circular Use Assessment System |
2. |
System for Recognition, Designation, and Notification of Circular Resources (“Circular Resource Recognition System”) |
3. |
Circular Resource Quality Certification System |
4. |
Regulatory Exceptions for New Circular Technology/Service (Regulatory Sandbox) |
(1) |
System for Expedited Processing of New Technologies and Services for the Circular Economy (Article 28) |
(2) |
Simultaneous Processing System (Article 29) |
(3) |
Regulatory Exception for Demonstration (Articles 30 through 32) |
(4) |
Temporary Permit System (Article 33) |
Details concerning (i) the promotion of circular use of products and packaging materials, (ii) the use of sustainable products, and (iii) the waste generation reduction rate, etc., are scheduled to take effect – under the Circular Economic Society Act – on January 1, 2025. Therefore, relevant subordinate regulations may be amended in the future. As a result, it is necessary to continue monitoring developments in the amendment of the Circular Economic Society Act and subordinate regulations.