The Korea Commission for Corporate Partnership said it will hold a "win-win agreement ceremony for large and small plastic recycling companies" at 4 Conference Room in the National Assembly Members' Office Building on the afternoon of the 9th.
The Korea Federation of Resource Recycling Organizations, nine large companies related to plastic recycling, and the Korea Chemical Industry Association will take part in the agreement ceremony. The agreement extends the existing win-win agreement signed in Nov. 2022, and the term is three years. The large companies participating in the agreement are Kumho Petrochemical, Lotte Chemical, Samyang Packaging, INEOS Styrolution Korea, Hanwha Solutions, BGF Eco Cycle, DL Chemical, HD Hyundai Chemical, and LG Chem.
Under the agreement, large companies will focus on manufacturing high value-added, high-quality products in areas that require large-scale investment and are difficult for small and midsize enterprises to carry out alone. Large companies will refrain from entering the physical recycling market and expanding facilities. In addition, large companies may make equity investments in small and midsize plastic recycling companies jointly with professional investment institutions, within a scope that does not directly exercise management control over small and midsize enterprises.
Small and midsize enterprises will move to upgrade facilities to raise plastic sorting rates. Small and midsize enterprises will actively pursue research and development for the production of high-purity recycled products, and agreed to work jointly with large companies to ensure a stable supply of high-quality feedstock and to help large companies secure carbon credits.
The Korea Federation of Resource Recycling Organizations agreed to extend the agreement in consideration of the changing market environment, even as business conditions in the plastic recycling industry remain challenging. Large companies are also facing difficulties due to increased production of petrochemical products in China and the Middle East, but, amid a global trend toward eco-friendly policies, they agreed that cooperation with the federation is necessary and joined forces for win-win cooperation.
Chairperson Lee Dalgon of the Korea Commission for Corporate Partnership said, "Win-win cooperation between large and small companies in the plastic recycling sector is essential to achieve carbon neutrality," adding, "The commission will work together to promote cooperation between large and small plastic recycling companies through this win-win agreement."