South Korean landfill operator faces deficit amid waste reduction

The Sudokwon Landfill Site Management Corp is facing significant financial difficulties due to a decrease in waste inflow. According to data submitted to the National Assembly, the corporation recorded a cumulative deficit of 55.6 billion won over the three years spanning 2023 to early 2024, excluding subsidies used to cover balance gaps.

To offset these losses, the corporation has been utilizing funds from infrastructure project levies—money originally intended for site acquisition, facility investment, and maintenance. In 2023, while 12.6 billion won was collected in levies, 39.5 billion won was spent, with 31.5 billion won diverted to cover financial deficits. This trend continued into the first half of 2024.

The financial strain is exacerbated by new policies prohibiting the direct landfilling of household waste in the Seoul metropolitan area. Lawmaker Kim Ki-hyun warned that using reserve funds for deficit coverage could deplete resources needed for essential infrastructure, calling for urgent structural efficiency and government intervention.