SK Chemicals Signs Memorandum of Understanding With Seoul City to Promote Waste Banner Recycling

According to the agreement, the Seoul Metropolitan Government will establish a centralized collection system for discarded banners centered around the Seoul Resource Center (SR Center), and the collected banners will be supplied to SK Chemicals. SK Chemicals will utilize its high-value mechanical recycling (compounding) and advanced circular recycling technologies to convert these discarded banners into reusable materials.

Seoul City and SK Chemicals plan to begin collecting and supplying waste banners from the second half of this year, starting with the signing ceremony. They also aim to establish the necessary systems and financial frameworks to achieve 100% recycling of waste banners by next year. The initiative will first be launched this year in Yongsan District, followed by expansion to other areas. By 2026, the recycling scope will be extended to waste banners generated from local elections, fully establishing a circular recycling system.

According to this collaboration, Seoul will collect discarded banners from the region and centralize them at the Seoul Resource Center (SR Center), which currently handles the recycling of small electronic appliances, as the main hub for banner collection.

SK Chemicals will utilize advanced recycling technologies to convert collected waste banners into reusable resources. This includes high-value mechanical recycling (composites) and depolymerization-based chemical recycling. Specifically, SK Chemicals' chemical recycling technology, known as circular recycling, breaks down waste plastics at the molecular level, converting them into raw materials that can be used to produce plastics with quality equivalent to original petroleum-based materials. Since this chemical recycling method enables continuous recycling without compromising quality, a "banner closed loop" can be achieved, repeatedly regenerating waste banners into new ones.

According to data from the Ministry of Environment, South Korea generates approximately 6,000 tons of waste banners annually, with about 70% ending up in landfills or incinerators. From the perspectives of sustainability and carbon neutrality, these practices lead to structural limitations due to issues such as carbon emissions associated with these processes.

Seoul City aims to create a sustainable circular resource system for discarded banners through collaboration with SK Chemicals.

Relevant officials from Seoul city stated:If the technology for recycling discarded banners into new banners is successfully applied, it can fundamentally solve the problem of discarded banners, as it can transform waste materials into reusable resources and enable repeated recycling.

Ahn Jae-hyun, a representative of SK Chemicals, emphasized:Our recycling technology will become a key solution to the challenging task of reducing waste banners. By collaborating with the Seoul Metropolitan Government, local governments, and stakeholders, we will expand the recycling infrastructure and swiftly establish a virtuous recycling ecosystem, transforming waste generated by various sectors into valuable resources.

Since last year, SK Chemicals has been actively cooperating with the Korean government and local authorities to establish a comprehensive recycling system for discarded banners. In August last year, the company signed a banner recycling agreement with Gunsan City. In June this year, it signed a cooperation agreement with the Ministry of the Interior and Safety as well as five local governments—Sejong, Gangneung, Cheongju, Naju, and Changwon—to carry out banner recycling activities.