Korea Doubles Waste Incineration Surcharge to Speed Up Public Facility Expansion

Direct Landfilling of Waste Banned Nationwide From 2030 Increased Resident Compensation and New State-Funded Items Streamlined Reviews and Permits to Fast-Track Incineration Facilities

Finance|
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By Joo Jae-hyun
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Waste landfill operations are underway at the Sudokwon Landfill Site in Seo-gu, Incheon. Yonhap News - Seoul Economic Daily Finance News from South Korea
Waste landfill operations are underway at the Sudokwon Landfill Site in Seo-gu, Incheon. Yonhap News

South Korea will double the surcharge that municipalities with incineration facilities receive for processing waste from other local governments, in a move to accelerate the expansion of public incineration facilities.

The measure aims to enlarge the resident support fund financed by the surcharge, thereby improving public acceptance of new and expanded public incineration facilities. The government will also streamline various permits and approvals to shorten the construction period of public incineration facilities by 42 months, from the current 140 months to 98 months.

The Ministry of Climate, Energy and Environment announced the "Plan for Early Expansion of Public Incineration Facilities" at a meeting of economy-related ministers held at the Government Complex Seoul on the 22nd. The ministry plans to accelerate construction and expansion to secure sufficient public incineration facilities before 2030, when the ban on direct landfilling of household waste is extended nationwide. The Seoul metropolitan area has banned direct landfilling of household waste since this year, but a shortage of in-region treatment facilities relative to the volume of waste generated has led to some waste being processed in regions such as Chungcheong.

The ministry will first raise the surcharge on processing fees that municipalities receive when handling household waste from other jurisdictions from 10 percent to 20 percent. Municipalities impose fees on waste treatment facilities within their jurisdiction based on the quantity and type of waste. When taking on waste from other municipalities, they can collect an additional percentage on top of the fee, and this ceiling will be doubled. The additional revenue is intended to be used for residents living near incineration plants, minimizing conflicts that arise during the site selection process.

The ministry plans to consult with the Ministry of the Interior and Safety to exempt local governments from local fiscal investment reviews once they finalize their plans for new and expanded public incineration facilities. The local fiscal investment review is a feasibility assessment conducted by municipalities themselves to enhance the efficiency of local fiscal spending and prevent duplicative investments. For basic local governments, projects costing 20 billion won or more must be referred to the central government for review.

As a result, 20 localities will be exempted from local fiscal investment reviews this year: Daegu, Sejong; Gwacheon, Guri, Gimpo, Bucheon, and Uijeongbu in Gyeonggi Province; Cheorwon County in Gangwon Province; Cheongju and Yeongdong County in North Chungcheong Province; Asan in South Chungcheong Province; Jeonju in North Jeolla Province; Goheung County, Damyang County, Jangseong County, Yeongam County, and Wando County in South Jeolla Province; Goryeong County and Gimcheon in North Gyeongsang Province; and Changnyeong County in South Gyeongsang Province. To shorten consultation time on total project costs during the planning stage, the ministry will also prepare standard guidelines for calculating incineration facility capacity and total project costs.

State funding will also be expanded. Previously, only facility installation costs were supported, but demolition costs of existing facilities and site acquisition costs will be added to the list of items eligible for state funding. To expedite project implementation, financial resources will be preferentially allocated to project formats with shorter timelines, such as design-build turnkey bidding projects and fixed-amount support projects. In addition, a public incineration facility expansion support group, composed of outside experts and local government officials, will closely monitor the progress of each project to prevent unnecessary delays.

Original reporting by Joo Jae-hyun for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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