#South Korea #Seoul #circular economy #SK Chemicals #Used Banners

SK Chemicals Innovates Circular Economy Models for Used Advertising Banners

In a bold step towards sustainability, SK Chemicals has announced the establishment of a comprehensive recycling framework for used advertising banners in collaboration with various regional partners. This initiative is part of a wider effort to promote circular economy practices and ensure that materials from discarded banners are effectively reused and transformed into new products.

The Birth of the Waste Banner Resource Circulation Consortium

On October 6, 2026, SK Chemicals launched the "Waste Banner Resource Circulation Consortium," which includes notable partners such as MOA, Daehan Media, Upcloth, and Seogwipo City’s resource circulation team. The consortium focuses on the collection, recycling, and processing of used banners, marking a major milestone in the circle of sustainable practices within South Korea’s waste management framework.

This project stems from an idea presented during the Solveathon, a competition aiming to find solutions for community challenges, organized by the Korea Chamber of Commerce and Industry (KCCI) and the Ministry of the Interior and Safety (MOIS). The consortium’s activities will begin with the collection and recycling of used banners across specified regions, including Gyeongsang, Honam, and Jeju.

Sustainable Practices and Job Creation

The four constituent organizations each take charge of banner collection in their respective regions, leveraging their expertise in pre-treatment, distribution, and marketing. For example, Upcloth, which has experience in collaboration with local self-help centers, aims to utilize the project to create local job opportunities, particularly for participants in self-help programs and individuals with disabilities.

Upon collection, the banners will be delivered to MOA, which specializes in preparing recycling materials to meet the standards necessary for effective chemical recycling. Using SK Chemicals’ depolymerization technology, these materials will then be chemically converted back into raw materials suitable for producing new banners. Daehan Media will be the production partner, overseeing the manufacturing of chemically recycled banner fabric, which will subsequently be distributed through its extensive nationwide network.

The Seogwipo City administration, the only municipal entity within the consortium, will also contribute by establishing the institutional frameworks required for the project.

Addressing the Waste Problem

According to SK Chemicals, over 1,000 tons of discarded banners are generated annually within the regions involved in the project. The initiative aims to significantly cut down the volume of banners that end up in landfills or are incinerated. Currently, around 6,000 tons of banners are disposed of each year in South Korea, with about 70% being either buried or burned. Traditional recycling efforts typically focus on upcycling discarded banners into tote bags or trash bags, resulting in limited additional use cycles.

The true innovation of this initiative lies in its commitment to creating a completely closed-loop system where used banners can be transformed back into new banners through SK Chemicals' depolymerization technology. This revolutionary process breaks down plastic waste at the molecular level, allowing for the recovery of chemical building blocks that can be repolymerized into new materials. In contrast to conventional mechanical recycling — which generally involves shredding, washing, and remelting plastic waste — the depolymerization method addresses challenges posed by contaminants and previous uses, enabling higher-quality material recovery.

A New Model for Circular Resource Management

By establishing this consortium, SK Chemicals envisions a new model for regional resource cycling. This model emphasizes local management of waste, where materials generated in a specific region are collected and recirculated within the same community, promoting a sustainable ecosystem for waste management.

A key representative from SK Chemicals remarked, “Used banners present a waste challenge many local governments must tackle. However, the conditions and potential solutions can vary considerably between regions. Together with our partners, we aim to develop circular systems at metropolitan and provincial levels, demonstrating how discarded banners can be effectively re-transformed into new products.”

SK Chemicals has been actively collaborating with local authorities for several years to establish robust collection and recycling systems for used banners. In August 2024, the company signed a memorandum of understanding with Gunsan City and Revelop to recover resources from discarded banners. Further agreements followed with the Ministry of the Interior and Safety and cities like Sejong, Gangneung, Cheongju, Naju, and Changwon.

On the path to scaling this initiative, SK Chemicals is committed to expanding its model based on lessons learned from local implementations, ultimately contributing both to regional economies and the environment at large.