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Operating Guidelines of the Recycling Obligation Established on Jan. 21, 2015 Amended on Dec. 15, 2016 CHAPTER 1 GENERAL PROVISIONS Article 1 (Purpose) The purpose of these Guidelines is to set forth the matters necessary in relation to the ¡¸Notice of the Recycling Obligation Fulfillment Certification Procedure and Certification Mark, etc. (Ministry of Environment Notice)¡¹ concerning the Korea Packaging Recycling Cooperative (hereinafter referred to as ¡°KPRC¡±), which has been entrusted the authority concerning the certification of fulfilling recycling obligations (hereinafter referred to as the ¡°certification¡±) pursuant to Article 17-2 of the ¡¸Act on the Promotion of Saving and Recycling of Resources (hereinafter referred to as the ¡°Act¡±)¡¹ and Article 48 (3) of the Enforcement Decree of the Act.Article 2 (Scope of Duties) The scope of duties under these Guidelines is as follows: 1. 1. Receive applications and check the attached documents; 2. Perform a review for the certification for fulfilling the recycling obligations; 3. Carry out a field inspection according to the certification review; 4. Send the review result; 5. Respond to an appeal filed against the review result, if any; 6. Carry out follow-up management with respect to certifications; 7. Promote certification results; 8. Any other matters deemed necessary by the KPRC.Article 3 (Definitions) The definitions of terms used in these Guidelines are as follows: 1. The term, ¡°certification for fulfilling the recycling obligations,¡± means the certification acknowledging that a producer obligated to recycle has faithfully fulfilled his/her recycling obligations in case of paying charges to the KPRC in accordance with Article 27 of the Act or recovering and recycling directly or via a contractor all the wastes from the products and/or packaging materials that he/she has manufactured and/or imported, in accordance with Article 17-2 of the Act; 2. The term, ¡°by packaging material item,¡± means cartons, glass bottles, metal cans, and synthetic resin materials under Article 18 Subparagraph 1 of the Enforcement Decree for which charges are paid in accordance with Article 16 of the Act: Provided, That in the case of synthetic resin materials, they are categorized into PET bottles, foamed synthetic resin, and plastics; 3. The term, ¡°applicant,¡± means an individual wishing to receive the certification for fulfilling the recycling obligations; 4. The term, ¡°individual who received the certification,¡± means an individual who has been issued a certification for fulfilling the recycling obligations; 5. As for all other terms not defined in this Notice, the definitions prescribed in the ¡¸Wastes Control Act¡¹ and the ¡¸Act on the Promotion of Saving and Recycling of Resources¡¹ shall apply mutatis mutandis.CHAPTER 2 CERTIFICATION TARGETS AND CRITERIA Article 4 (Certification Targets) Certification targets refer to the packaging materials subject to mandatory recycling, in accordance with Article 16 (1) of the Act and Article 18 of the Enforcement Decree of the Act.Article 5 (Certification Criteria) The certification criteria are as follows: 1. The producer obligated to recycle has recovered and recycled all the wastes from the packaging materials that he/she has manufactured and/or imported; 2. The producer obligated to recycle has paid the charges to the KPRC for all the wastes from the packaging materials that he/she has manufactured and/or imported.CHAPTER 3 CERTIFICATION PROCEDURE Article 6 (Submission and Receipt of Certification Application) ¨ç An individual wishing to obtain the certification shall submit to the KPRC the application form in Form 1. ¨è The KPRC shall record the details of the application in the application receipt logbook. ¨é The KPRC shall review the application form and check the following matters before returning the application form to the applicant or requesting the applicant to supplement the documents, etc.: 1. Whether the applicant falls under the category of producers obligated to recycle according to Article 16 (1) of the Act; 2. Whether the required documents have been submitted; 3. When such is deemed necessary by the KPRC.Article 7 (Certification Review) ¨ç The KPRC shall examine whether the applicant falls under the certification criteria prescribed in Article 4: Provided, That a certification review shall be performed as a document screening, in principle, but a field inspection may be carried out in parallel, as necessary. ¨è The processing period for a certification review shall be within 30 days of the review date referred to in Paragraph 1: Provided, That if there is a need for a field inspection, the processing period may be extended, and the field inspection period shall be excluded from the processing period.Article 8 (Notification of the Result) ¨ç The KPRC shall notify the applicant of the result of the certification review carried out pursuant to Article 6 (1) within 14 days of the application date according to Form 2 and report the same information to the Minister of Environment. ¨è In case the applicant is not granted the certification, the KPRC shall specify the reason in the certification review results report. ¨é The KPRC shall receive from the Minister of Environment a certification for fulfilling the recycling obligations according to Form 3 for the applicant conforming to the certification criteria and issue it to the applicant.Article 9 (Filing of an Appeal) ¨ç An individual who wants to appeal the result of the certification review received pursuant to Article 8 (1) shall fill out the appeal application form in Form 4 and submit it to the KPRC within 30 days of being notified of the result. ¨è In case an appeal is filed pursuant to Paragraph 1, the KPRC shall review the details of the appeal and, if deemed reasonable, re-examine the case in accordance with Article 7 and notify the applicant of the result.CHAPTER 4 CERTIFICATION MARK AND FOLLOW-UP MANAGEMENT Article 10 (Certification Mark) ¨ç An individual who has received the certification pursuant to Article 8 (3) may mark the certification for fulfilling the recycling obligations (hereinafter referred to as the ¡°certification mark¡±). ¨è The design of the certification mark is shown in attached Table 1.Article 11 (Cancellation of Certification) ¨ç The KPRC may perform follow-up management of the individuals who received the certification. ¨è The KPRC shall report to the Minister of Environment to cancel the certification in case of the following: 1. The individual did not pay the full charges referred to in Article 5 Subparagraph 2; 2. The individual obtained the certification using falsified information or any other illegitimate means.Article 12 (Re-Issuance of the Certificate) ¨ç If the individual who received the certification falls under any of the following, the individual who received the certification or the individual who succeeded the rights to the certification may apply for re-issuance using Form 5 by attaching the certificate that has already been issued (except in cases where it has been lost) and the required documents prescribed in attached Table 2 attached thereto: 1. Loss of or damage to the certificate; 2. Changes in the rights due to an assignment of the certified packaging material.Article 13 (Effective Period and Renewal of the Certification) ¨ç The effective period of the certificate shall be 2 years from the date of certification, but it may be extended for two years each time: Provided, That where any of the following cases applies, a certification review during the effective period of the certification need not be performed: 1. A change in the name of the packaging material or the model name, among the packaging materials of the individual who received the certification, as a result of quality or performance improvement, design change, etc.; 2. The packaging material in question was passed down to an integrated corporate body resulting from an integration or merger and acquisition, etc. of the corporate body of the individual who received the certification. ¨è In case an individual who received the certification wishes to extend the effective period of the certification, he/she shall apply for a review for renewal using Form 6 at least 3 months before the expiration of the effective period. ¨é For matters related to granting renewal of the certification, the procedures prescribed in articles 7 and 8 shall apply mutatis mutandis.Article 14 (Business Plan and Results Report) ¨ç The KPRC shall submit to the Minister of Environment a business plan necessary for the operation of the recycling obligation fulfillment certification System. ¨è The KPRC shall report to the Minister of Environment the results of operating the recycling obligation fulfillment certification System over the course of one year by the end of March in the following year.CHAPTER 5 PROVISION OF INCENTIVES Article 15 (Incentives) ¨ç The KPRC may perform the following within the scope of the budget to provide incentives and promote the certification System: 1. Promote the certification results (certified enterprises and packaging materials); 2. Promote the certification System, certified enterprises, etc. in connection with consumer organizations; 3. Carry out promotions in connection with the Green Card (award points to consumers purchasing products packaged in the certified packaging materials); 4. Other matters deemed necessary to operate the certification System by the Minister of Environment. ¨è The period of providing incentives shall be the effective period specified in the recycling obligation fulfillment certificate in Form 3. ¨é The KPRC may compose a separate steering committee to promote the use of the certificate System. ¨ê Certified enterprises may use the certification mark and/or phrase on the printed materials, advertising materials, etc. when promoting products packaged in certified packaging materials: Provided, That they must comply with the Article 3 (Prohibition of Illegitimate Marking and Advertising) of the Act on Fair Labeling and Advertising.Article 16 (Reward) The KPRC may reward an individual who received the certification pursuant to Article 8 (3).ADDENDUM Article 1 (Enforcement Date) These Guidelines shall enter into force on Jan. 21, 2015.ADDENDUM Article 1 (Enforcement Date) These Guidelines shall enter into force on Dec. 15, 2016. 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