CEOs of paper straw companies stage a protest against the environment ministry's decision to ease regulations on disposable products in front of the ministry's office in Sejong, Nov. 13. Yonhap
Paper straw companies announced, Tuesday, that they have no choice but to cease operations, unless the government accepts their two proposed conditions: Maintaining the original plan to ban plastics after the pilot period and devising a damage compensation plan.
The paper straw makers held a meeting with the environment ministry and lawmakers at the National Assembly in Seoul, Monday, to address the difficulties facing them.
Key stakeholders, including paper straw makers, officials from the Ministry of Environment and members of the main opposition Democratic Party of Korea (DPK), including Rep. Woo Won-shik, who is a member of the Assembly's Environmental and Labor Committee, attended the meeting.
Han Ji-man, the CEO of the paper straw production company Nuridaon, conveyed the problems currently faced by paper straw companies and emphasized the necessity of a designated pilot period.
The primary request of the council of paper straw companies, formed to seek measures to address the crisis caused by the policy change, was to implement the existing policy on the regulation of plastic use.
On Nov. 7, the environment ministry withdrew the ban on the use of disposable cups in cafes and restaurants and decided to extend the period of the ban on plastic straws indefinitely. This decision aimed to alleviate the burden on small business owners, who are facing high prices and higher interest rates.
Another request was for the government to provide emergency operation funds to the companies and come up with practical compensation plans due to the losses.
According to the council's report, the overall estimated stock of paper straws is approximately 200 million. Additionally, contracts with companies preparing to use paper straws have been suspended following the policy change announcement by the environment ministry.
The council emphasized that if these two conditions are not met, paper straw companies will no longer be able to continue their businesses. All 11 companies affiliated with the council could declare a suspension of business based on discussions at their second official meeting with the environment ministry, scheduled for Friday.
The ministry stated that it would come up with measures to ensure that inventory is exhausted through the voluntary participation of small business owners.
Small business owners and the ministers of the environment and SMEs and startups attend a meeting, aimed to discuss the establishment of using multi-use products in Gangnam District, Seoul, Monday. Yonhap
Meanwhile, a meeting with small business owners and the ministers of the environment and SMEs and startups was held on the same day. The meeting aimed to discuss the provision of incentives to promote the use of multi-use products and the voluntary participation of small business owners in reducing disposable products.
The Ministry of SMEs and Startups suggested providing funds next year because of the difficulties being faced by disposable product manufacturers, such as paper straw companies, whose sales have decreased due to the policy change. The funds will be available when sales or operating profits decrease by more than 10 percent.
The environment ministry said it would come up with measures to maintain demand for paper straws.
A cooperative of cafe owners announced that they will proceed with the joint purchase of straws to replace plastic straws this week.
As criticism mounts regarding the policy change, Environment Minister Han Hwa-jin mentioned that the ministry plans to announce the end of the guidance period on the ban on plastic use soon.
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