Single-Use Coffee Cup Fees Introduced in South Korea as Plastic Ban Drives Up Prices for Both Fresh-Brewed and Ready-to-Drink Coffee

South Korea's Controversial Cup Deposit System Sparks Coffee Shop Outrage

Since South Korea reinstated its plastic ban, many chain coffee shop owners have taken to online forums to vent their frustration with the government's questionable policies: "Do I have to pay to recycle waste just because I run a franchise coffee shop? Is there any compensation?"

The Disposable Cup Deposit System

Here's what happened... The South Korean government decided to implement a "disposable cup deposit system" starting June 10th across 38,000 franchise coffee, beverage, and restaurant outlets nationwide. Under this system, customers who purchase drinks requiring disposable cups (excluding reusable plastic cups or mugs) must pay a deposit of 300 Korean Won (approximately 1.6 yuan). After finishing their beverage, customers can return the used cup to any store of the same brand — buy coffee at Starbucks, return the cup to any Starbucks — and get their 300 Won back.

The Unexpected Twist

So far, this seems reasonable... But what makes it a "questionable operation" doesn't stop there. The regulation also states that anyone who finds disposable cups on the street and returns them to the corresponding brand stores can also collect the 300 Won deposit... with no time limit — return anytime (professional recyclers reading this clause must have smiled knowingly). Yes, regardless of whether you bought any coffee, every cup you find earns you 1.6 yuan...

Coffee Shops Turn Recycling Centers?

With this policy, franchise restaurants have suddenly transformed into "franchise recycling centers"??? The thinking is truly something. Many franchise coffee shop owners complained: "This increases our workload! Paying to recycle waste is one thing... Peak hours and lunch breaks are the busiest times for coffee shops, and staffing is already tight. During rush periods we now need someone assigned specifically to collect cups and hand back deposits — completely unreasonable. At the very least, there should be time restrictions on returns!"

Government's Environmental Defense

In response, the official responsible for the policy said: the measure targets franchise beverage stores because these 38,000 outlets go through 2.8 billion disposable plastic and paper cups annually — and paper cups typically come with plastic lids, making them terribly unfriendly to the environment! If you find it troublesome, stop providing disposable cups, or encourage customers to switch to reusable cups with incentives!

Misunderstandings and Rising Costs

Well... that really puts businesses in a bind! Especially coffee shops, which almost all offer takeout — not using disposable cups isn't an option... On top of that, wholesale prices for disposable items have risen because of the regulation... As for the "paying to recycle waste" complaint, the official said everyone has misunderstood! The confusion stems from customers paying an extra 300 Won when buying coffee, with businesses assuming they can pocket this money. But in reality, that fee is a deposit paid by the customer — it never belonged to the business's earnings. So how could it count as "paying to recycle disposable cups"!

Consumer Concerns and Price Increases

Consumers were equally baffled that disposable cups now cost extra even though deposits are refundable! Many feel the policy simply forces difficulties onto businesses and customers alike, because shops will adjust their drink prices accordingly. With wholesale costs already climbing, businesses will certainly deem the 300 Won refund rule unreasonable; besides, people buy coffee for convenience — how many would actually lug a reusable cup around for it?

Indeed, major coffee shops in South Korea had already raised prices to varying degrees due to rising coffee bean costs. If shops can't profit from the disposable cup fees, they'll simply find new ways to keep raising coffee prices, with consumers ultimately footing the bill... The previous round of increases already took away the joy of an affordable Americano for many Koreans (before the collective price hikes, Americanos at many Korean coffee shops cost around 1,000 Won, roughly 5 yuan). Now that takeout cups are getting this treatment, presumably many coffee lovers will be feeling "depressed"...

Broader Impact on Coffee Industry

Beyond freshly brewed coffee facing price increases over the deposit scheme, even ready-to-drink coffees at convenience stores have gone up by more than 200 Won because of the plastic restrictions... (That is not a deposit — and it can't be refunded!)

The government's hard line has many chain coffee shop owners considering closing up and reopening as independent, non-franchise shops — at minimum, that cuts franchise fees and avoids the disposable cup deposit restrictions. Many franchise beverage stores predict that if they don't run promotions when the policy takes effect, their business will definitely suffer to varying degrees.

Image source: Internet

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