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# Korea EPR Resource Circulation: Extended Producer Responsibility for Electronics Manufacturers

Korea's Resource Circulation Act (전기·전자제품 및 자동차의 자원순환에 관한 법률) covers 34 electronics product categories and sets annual recycling quotas that reach 75% of prior-year sales weight for computers. Miss the quota and the penalty is 300% of avoided recycling cost. Here's how the system works — and how to navigate it without joining the non-compliance register.

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At a glance

Regulator

Ministry of Environment (환경부)

Covered Categories

34 product types

Collective Body

KERC (한국전자제품자원순환공제조합)

Annual Report Deadline

31 March each year

Shortfall Penalty

KRW 300% of avoided cost

## Key regulatory concepts

### Resource Circulation Act for EEE and Vehicles

Korea's Act on Resource Circulation of Electrical and Electronic Equipment and Vehicles (전기·전자제품 및 자동차의 자원순환에 관한 법률) was enacted in 2008 and establishes an Extended Producer Responsibility (EPR) framework requiring manufacturers and importers to fund and achieve the collection and recycling of end-of-life electronics. The Ministry of Environment (환경부, MOE) administers the Act and sets annual recycling targets by product category. The Act is distinct from hazardous substance restrictions (which run under a separate Korean RoHS-equivalent law) but compliance teams typically handle both together. It applies to any company that manufactures in Korea or imports covered products for sale in the Korean market — foreign companies without a Korean legal entity are required to designate a domestic importer as the obligated producer.

### 34 Covered Product Categories

The Resource Circulation Act covers 34 product categories across consumer and commercial electronics. The list includes televisions, desktop and laptop computers, monitors, printers, mobile phones, tablet computers, air conditioners (split and window units), refrigerators, washing machines, dryers, dishwashers, vacuum cleaners, audio equipment, and several categories of IT network equipment. Products are identified by Korean Customs HS codes, and the obligation attaches when covered products are placed on the Korean market for the first time. Manufacturers selling product families that span multiple categories — for example, a company selling both laptops and printers — must track and report EPR obligations separately for each category, as quotas and recycling rates differ.

### Korea E-cycling Corporation (KERC / 한국전자제품자원순환공제조합)

The Korea E-cycling Corporation (한국전자제품자원순환공제조합, KERC) is the Ministry of Environment-designated collective compliance organisation for electronics EPR. Producers who join KERC's collective scheme pay an annual participation fee calculated on their declared prior-year Korea sales weight per product category, and KERC manages the actual collection, sorting, and recycling operations on behalf of members. KERC operates a network of collection points across Korea and contracts with certified recyclers. For most foreign manufacturers without their own Korean collection infrastructure, joining KERC is the practical compliance pathway. Membership requires registration with KERC, annual sales weight declaration, and fee payment — KERC then issues compliance certificates confirming that the member's EPR quota obligation has been met.

### Annual Recycling Quotas and 2024 Targets

EPR recycling targets are set annually by the Ministry of Environment as a percentage of the prior calendar year's declared sales weight for each product category. The 2024 targets illustrate the scale of ambition: televisions at 55%, computers at 75%, and mobile phones at 60% of prior-year sales weight. These targets have been increasing year over year as Korea advances its circular economy goals. The sales weight declaration must include all products placed on the Korean market in the prior calendar year, including products sold through online and direct-import channels. Producers who underestimate or omit product categories in their declaration face both the penalty for quota shortfall and the risk of retroactive re-assessment by the MOE.

### Self-Collection Alternative to KERC

Producers are not required to join KERC — they may fulfil their EPR quota through a self-collection and recycling programme. A self-collection programme requires the producer to establish its own network of consumer drop-off points, contracts with MOE-certified recyclers, and a documented chain-of-custody tracking system that satisfies MOE reporting standards. Self-collection is more common among large Korean electronics manufacturers with existing service networks. For foreign manufacturers without Korean infrastructure, the administrative and capital costs of self-collection typically exceed KERC participation fees by a substantial margin. A hybrid approach — KERC for most categories, self-collection for specific high-volume products — is also permitted.

### Annual Performance Reporting and MOE Submission

All EPR-obligated producers must submit an annual performance report to the Ministry of Environment by 31 March each year, covering the prior calendar year. The report declares prior-year Korea sales weight by product category, the recycling method used (KERC collective or self-collection), the volume actually collected and recycled, and the compliance rate achieved against the quota. KERC members typically receive a pre-completed report from KERC confirming the collective scheme's performance attributable to their membership. The MOE reviews submissions and may request supporting documentation including customs import records, sales invoices, and recycler certificates. Incomplete or inaccurate submissions can trigger MOE audits and corrective action demands.

### Penalties for EPR Quota Shortfall

The penalty for failing to meet EPR recycling quotas is severe: producers must pay an amount equal to 300% of the cost they would have incurred to recycle the shortfall quantity themselves. This punitive multiplier is designed to ensure that the cost of non-compliance always exceeds the cost of compliance — making EPR avoidance economically irrational. The penalty is assessed by the MOE after reviewing annual performance reports, and it is separately calculated for each product category where a shortfall exists. Repeated non-compliance can result in administrative sanctions including naming on the MOE's public non-compliance register, which carries significant reputational risk in the Korean market. There is no grace period or first-offence waiver provision.

## Compliance process: step by step

01

Determine whether your products fall within the 34 covered categories under Korea's Resource Circulation Act by matching your Korean Customs HS codes against the MOE's published category list. Products that straddle multiple categories must be registered and tracked separately for each.

02

Register as an EPR-obligated producer with the Ministry of Environment. Foreign manufacturers without a Korean legal entity must designate their Korean importer or distributor as the obligated producer — confirm this obligation in your distribution agreement and ensure the importer is aware of the annual reporting and fee obligations.

03

Declare your prior calendar-year Korea sales weight by product category. Compile this from your customs import records and domestic sales data. Accuracy is critical — the MOE cross-references declarations against customs data, and under-declaration triggers both penalty assessments and audit risk.

04

Select your compliance pathway: joining the KERC collective scheme or establishing a self-collection programme. For most foreign manufacturers, KERC membership is the lower-cost, lower-complexity option. Contact KERC directly to obtain a membership fee quote based on your declared sales weight figures.

05

Pay the KERC participation fee based on your annual EPR quota obligation. KERC will issue a compliance certificate confirming that the collective scheme has met the recycling target attributable to your membership share. Retain this certificate as your primary compliance evidence.

06

Track actual collection and recycling performance throughout the calendar year if operating a self-collection programme, or monitor KERC's published collective performance data if a KERC member. Flag any gap between running performance and your annual quota target early enough to arrange supplementary recycling before year-end.

07

Submit your annual EPR performance report to the Ministry of Environment by 31 March. KERC members use the KERC-issued compliance report as the basis for their MOE submission. Self-collecting producers must compile and submit their own documentation package including recycler certificates and chain-of-custody records.

## Frequently asked questions

### Which products are covered by Korea's EPR electronics recycling law?

Korea's Resource Circulation Act for EEE covers 34 product categories including televisions, desktop and laptop computers, monitors, printers, mobile phones, tablets, air conditioners, refrigerators, washing machines, dryers, dishwashers, vacuum cleaners, audio equipment, and IT network equipment. Products are identified by Korean Customs HS codes. Any manufacturer or importer placing covered products on the Korean market for the first time is an obligated producer. Foreign manufacturers without a Korean entity must designate their Korean importer as the responsible producer.

### What are the recycling targets for electronics in Korea?

Annual EPR recycling targets are set by the Ministry of Environment as a percentage of prior-year declared sales weight. The 2024 targets include: televisions 55%, computers 75%, and mobile phones 60%. Targets have been increasing annually and vary by product category. Producers must meet the quota for each covered product category they sell — a shortfall in one category cannot be offset by over-performance in another.

### What is KERC and do I need to join it?

KERC (한국전자제품자원순환공제조합, Korea E-cycling Corporation) is the MOE-designated collective compliance organisation for electronics EPR in Korea. Joining KERC is not mandatory — producers may alternatively establish their own self-collection and recycling programme. However, for foreign manufacturers without Korean collection infrastructure, KERC membership is typically the lower-cost and lower-complexity pathway. Members pay an annual participation fee based on declared sales weight, and KERC manages collection and recycling on their behalf, issuing compliance certificates.

### What penalties apply if I miss Korea's EPR recycling quota?

The penalty for an EPR quota shortfall is 300% of the cost of recycling the shortfall quantity — a punitive multiplier that makes non-compliance more expensive than compliance. The penalty is assessed per product category, so a shortfall across multiple categories results in multiple penalty calculations. Repeated non-compliance can also result in the producer being listed on the MOE's public non-compliance register. There is no first-offence waiver or grace period under the Act.

**Disclaimer:** Educational resource only. Regulatory requirements change. Consult a qualified compliance specialist before making decisions.

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