The Ministry of Climate, Energy and Environment announced the recruitment of companies from January 19 to February 27 for three regulatory sandbox projects in the circular economy sector, focusing on activating pyrolysis recycling of waste plastics. This initiative aims to ease regulations on pyrolysis feedstock and the recycling of residues, shifting from landfill disposal to resource recovery. The regulatory sandbox system, introduced in January 2024, allows companies to test new technologies and services within limited periods and locations. If safety and effectiveness are proven during the demonstration period, related regulations may be improved or supplemented.
The main projects include establishing quality standards and management systems for pyrolysis feedstock and residues, improving labeling methods for household chemical products to reduce packaging waste, and upcycling agricultural by-products into materials and products. Currently, thermal recycling accounts for 58% of plastic waste recycling, material recycling for 41%, and chemical recycling (such as pyrolysis) for only 1%. The demonstration projects will focus on expanding chemical recycling, with selected companies receiving up to 120 million KRW in project funding and 20 million KRW in liability insurance support over a two-year period (extendable by two years). Selection will be based on project relevance and the specificity of business plans.
The pyrolysis feedstock demonstration project will allow industrial waste plastics to be used more easily as pyrolysis feedstock by granting regulatory exemptions during the demonstration period. The project for using solid recovered fuel (SRF) as pyrolysis feedstock will verify yields and residue characteristics, expanding its use beyond power plants and industrial boilers. The demonstration for recycling pyrolysis residues will explore their use in soil conditioners and construction materials, with the potential to establish new waste codes and recycling categories. Additional projects include introducing e-labels for household chemicals and upcycling agricultural by-products.
The Ministry expects these demonstration projects to expand high-quality recycling of waste plastics and drive innovation in circular economy technologies and services. Director Kim Go-eung emphasized the government’s commitment to supporting diverse initiatives and continuously improving regulations to advance the circular economy. Companies interested in participating can apply via the Environmental Technology Industry One-Stop Service (ecosq.or.kr). Regulatory exemptions will be granted in the first half of this year, and the results may lead to further regulatory improvements.
This regulatory sandbox initiative can accelerate the transition from energy recovery to high-value resource circulation in Korea’s waste management sector. By demonstrating pyrolysis technology, the share of chemical recycling could increase, addressing plastic waste challenges and supporting carbon neutrality goals. The adoption of e-labels and upcycling of agricultural by-products will further reduce packaging waste and diversify industrial materials, strengthening corporate innovation and sustainable growth.