Only 16.7% of firms have completed or begun compliance assessment
Documentation gaps persist among plastic packaging users
Cost pass-through to buyers remains limited despite added expenses
Most Korean exporters remain largely unaware of the EU's Packaging and Packaging Waste Regulation, which took effect in August, a new survey shows.
The Korea International Trade Association's Institute for International Trade released a report Tuesday titled "Response Status and Challenges for the EU Packaging and Packaging Waste Regulation." The PPWR aims to reduce packaging waste and expand recycling. Since Aug. 12, basic obligations have applied — including restrictions on heavy metals and per- and polyfluoroalkyl substances (PFAS) in packaging, as well as requirements to prepare technical documentation and EU declarations of conformity. More demanding obligations covering recyclability, recycled content and packaging minimization are set to be phased in gradually.
A survey of 610 companies that export or plan to export to the EU, conducted from Aug. 21 to Sept. 2, found that 82.5 percent of respondents said they were either entirely unfamiliar with the PPWR or had only a vague understanding of it. Only 16.7 percent said they had completed or were in the process of conducting a compliance assessment for their products.
Documentation needed to demonstrate regulatory compliance was also found to be lacking. Among 356 companies that use plastic packaging, more than half said they had not secured key materials — including supplier certificates for recycled content, recyclability assessments and extended producer responsibility (EPR) reporting records. EPR is a system that places on producers the responsibility for managing the collection and disposal of packaging waste after use.
The most commonly cited obstacles to compliance were a shortage of in-house specialists, at 32.3 percent, and the cost of testing, certification and consulting, at 30.3 percent. Nearly half of respondents — 49.3 percent — said they could not estimate one-time investment costs, while 54.1 percent could not estimate recurring annual costs. Of the 577 companies that anticipated additional costs, 81.6 percent said they would find it either entirely impossible or possible to pass on less than 25 percent of those costs to buyers.
The report recommended tailored support based on each company's level of preparedness and specific challenges. For companies at the early stages of compliance, it suggested help with applicability assessments and identifying priority tasks. For those that have begun assessments, it called for support in filling documentation gaps, conducting tests and evaluations, and preparing technical files. Companies struggling with costs were advised to receive cost-estimation consulting and vouchers, while those short on personnel should be connected with hands-on training. The report also highlighted the need for joint document reviews between exporters and packaging suppliers, as well as links to alternative material suppliers and testing institutions.
"Responding to the PPWR goes beyond changing packaging materials — it encompasses proving conformity and managing the supply chain," said Park So-young, a senior researcher at KITA. "If companies proactively identify buyer requirements, build a systematic documentation base, and simultaneously strengthen their quality and price competitiveness along with local distribution networks, they can turn regulatory compliance into an opportunity to sharpen their competitive edge in the EU market."
To help companies navigate the PPWR, KITA will hold a seminar on corporate response strategies at Trade Tower in Samseong-dong, Seoul, on Thursday. The seminar will present the survey findings, and representatives from the Korea Conformity Laboratories and cosmetics and food exporters will share information on certification procedures and sector-specific compliance cases.
eyre@heraldcorp.com
