#South Korea #Ulsan #SK Chemicals #Eco-friendly Solutions #Banner Recycling

SK Chemicals Enters Partnership for Banner Recycling

On June 5, 2025, SK Chemicals, a leading player in the chemical industry, announced a groundbreaking initiative aimed at reducing waste from discarded banners. This project marks a collaborative effort between SK Chemicals, the Ministry of Interior and Safety of South Korea, and several local governments, including Sejong, Gangneung, Cheongju, Naju, and Changwon. The primary goal of this partnership is to establish a comprehensive recycling model that will boost the recycling rate of discarded banners from the current 30% up to a remarkable 100%.

Objectives of the Initiative

The initiative focuses on creating a complete circular system for the management of discarded banners. In line with this, an official Memorandum of Understanding (MOU) was signed, signaling a commitment to develop eco-friendly solutions that not only benefit the environment but also foster economic growth in relevant communities. The MOU outlines procedures for collecting discarded banners, processing them into raw materials using advanced chemical technologies, and recycling these materials into new products.

The Ministry will play a supportive role by facilitating coordination and collaboration among local governments and private companies. The participating local governments will be tasked with the collection of discarded banners, ensuring a steady supply chain, and promoting the use of products made from recycled materials derived from these banners.

Advanced Recycling Techniques

In this significant venture, SK Chemicals will employ advanced depolymerization technology to break down the collected banners at a molecular level, transforming them into recycled PET materials. These recycled materials will primarily be used in the manufacture of electrical and electronic products through a mechanical recycling process combined with high-value technologies. Starting by the end of this year, SK Chemicals anticipates scaling up recycled material production using cutting-edge chemical recycling technology.

Recycled PET products will be purposed for a variety of end uses, including clothing, furniture, and new banners, distributing these products in collaboration with partners like REVELOP and Kakao. Moreover, Sejinplus plans to upcycle discarded banners into materials for automotive interiors and construction materials via physical processing methods.

Addressing Waste Challenges

The environmental context for this initiative is pressing; approximately 6,000 tons of discarded banners are produced annually, with nearly 70% of them currently ending up in incineration or landfills. The five local governments involved in this project alone contribute about 1.95 million tons of waste each year. SK Chemicals recognizes that while there have been previous recycling attempts, they have largely been isolated efforts, resulting in limited reuse opportunities that often lead back to incineration.

By contrast, the chemical recycling approach enables repeated recycling without degrading material quality, significantly enhancing resource efficiency. This ensures a truly circular economy, where discarded banners can be transformed back into new banners, thereby closing the loop in the production cycle.

Future Implications and Goals

A representative from the Ministry of Interior and Safety highlighted that the pilot project's outcomes will inform future policies encouraging discarded banner recycling. The initiative aims to lay the groundwork for national recycling guidelines, expanding successful models countrywide through thorough performance analysis.

Additionally, the ministry plans to collaborate with various governmental departments, including the Ministry of Environment, to promote the use of recycled products and discuss market expansion strategies.

SK Chemicals is committed to furthering the development of initiatives designed to enhance sustainability within the circular economy, extending their focus beyond discarded banners to broader areas.

Kim Hyun-seok, the head of SK Chemicals' recycling division, stated, "Banners have long served as an effective promotional tool, yet most become waste after a single use. Through this agreement, we aim to play a crucial role in implementing a circular economy for banners, while also fostering a comprehensive recycling ecosystem across multiple sectors, both nationally and globally."

In 2023, SK Chemicals invested approximately 130 billion KRW (around 95.68 million USD) to launch SK Shantou, becoming the world's first company to commercialize facilities for producing chemically recycled raw materials and products. Furthermore, the company is also enhancing its recycling infrastructure in Korea by establishing the Recycling Innovation Center at its Ulsan facility, complete with pilot systems for chemically decomposing plastic waste into recycled raw materials (r-BHET).