• Advanced circular recycling technology to create a complete closed-loop system for waste banners
• Full-scale recycling of banners from the 2026 local elections planned

Collaboration between SK Chemicals and local governments is accelerating to address the growing issue of waste banners.

SK Chemicals (CEO: Ahn Jae-hyun) announced on August 6 that it will sign a Memorandum of Understanding (MOU) with the Seoul Metropolitan Government to promote the circular recycling of waste banners. This marks the company’s second such agreement this year, following a previous collaboration last month with the Ministry of the Interior and Safety and five local governments. SK Chemicals had also signed a similar recycling agreement with Gunsan City in August last year.

Under this agreement, Seoul City will establish a centralized collection system for waste banners centered around the Seoul Resource Center (SR Center) and supply the collected banners to SK Chemicals. SK Chemicals will utilize its high-value mechanical recycling (compounding) and advanced circular recycling technologies to transform these waste banners into reusable materials.

Starting with the signing ceremony, Seoul City and SK Chemicals plan to begin collecting and supplying waste banners in the second half of this year. They also aim to establish the institutional and financial framework required to achieve 100% recycling of waste banners by next year. The initiative will first launch in Yongsan-gu this year, subsequently expanding to other districts. By 2026, the scope of recycling will extend to include waste banners generated from local elections, fully establishing a circular recycling system.

Under the partnership, Seoul City will collect waste banners generated by local districts and centralize them at the Seoul Resource Center (SR Center), which currently handles recycling small electronic appliances, to serve as the main hub for banner collection.

SK Chemicals will apply its advanced recycling technologies to transform collected waste banners into reusable resources. This includes both high-value mechanical recycling (compounding) and chemical recycling based on depolymerization. Specifically, SK Chemicals’ chemical recycling technology, known as circular recycling, breaks down waste plastics to their molecular level, converting them into raw materials that can be used to produce plastics equivalent in quality to virgin petroleum-based materials. As this chemical recycling method enables continuous recycling without compromising quality, it makes possible a “Banner Closed Loop,” where waste banners can be repeatedly regenerated into new banners.

According to the Ministry of Environment, approximately 6,000 tons of waste banners are generated annually in Korea, with around 70% eventually ending up in landfills or incinerators. This practice results in structural limitations from a sustainability and carbon neutrality standpoint, due to issues such as carbon emissions associated with these processes.

Through its partnership with SK Chemicals, Seoul City expects to create a sustainable circular resource system for waste banners.

A Seoul city official stated, “If the technology that enables waste banners to be recycled into new ones is successfully applied, it could serve as a fundamental solution to the waste banner issue, as it would revive discarded waste into reusable resources while enabling repeated recycling.”

Ahn Jae-hyun, CEO of SK Chemicals, emphasized, “Our circular recycling technology will serve as a key solution to the challenging task of reducing waste, including waste banners. By collaborating with Seoul City, local governments, and stakeholders, we will expand the circular resource infrastructure and rapidly establish a virtuous recycling ecosystem that transforms waste generated across various sectors into valuable resources.”

Meanwhile, SK Chemicals has been actively working with the Korean government and local authorities since last year to establish a complete circular recycling system for waste banners. In August last year, the company signed an agreement with Gunsan City to recycle waste banners, followed by a partnership agreement in June this year with the Ministry of the Interior and Safety and five local governments, including Sejong, Gangneung, Cheongju, Naju, and Changwon, for banner recycling initiatives.

[Photo Caption] SK Chemicals is signing a Memorandum of Understanding (MOU) with the Seoul Metropolitan Government to promote the circular recycling of waste banners. The image illustrates the recycling stages: waste banners are shredded, chemically recycled into raw materials, spun into yarn, and finally made into new banners.