2.3.4 The Volume-Based Waste Fee system (1995)
The Korean government concentrated on minimizing waste generation at the source and
maximizing waste recycling with the implementation of the Volume-Based Waste Fee (VBWF) system in
1995 based on a revision of the Waste Management Act legislated in 1991 [10]. The VBWF system
charged citizens a waste collection fee based on the amount of waste generated, replacing the previous
fixed-rate taxation system [12].
In compliance with the VBWF system, households, businesses and institutions are required to
separate their MSW into two streams: Designated recyclable materials and all other wastes. They are
also obligated to purchase and use VBWF bags as shown in Figure 7 for disposing the non-recyclable
wastes. Local municipalities collect the VBWF bags and provide a free collection service for the presorted
recyclable wastes, promoting recycling. Thus, the system gives an economic incentive for
producing fewer wastes and recycling more [13]. Table 2 shows the various sources and types of MSW in
KoFor easy accessibility to the residents, different sizes of VBWF bags ranging from 3 liters to 100
liters are available at local grocery stores, convenience stores and supermarkets. The price of the VBWF
bags varies depending on the bag size and also from one municipality to another; for example, in 2009,
the VBWF bag for 20 liters in Seocho-gu, a borough of Seoul, was 30 cents, while the same size bag in
Jin-gu, a borough of Busan was priced at 90 cents [13, 15]. Average prices for VBWF bags throughout the
country are listed in Table 3. rea and the way they are managed.