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South Korea trash bag crisis
South Korea trash bag crisis: Why Seoul is panic buying 'pay-as-you-throw' bags amid 2026 oil supply fears
Fears of a global naphtha shortage have triggered massive hoarding of plastic trash bags in South Korea. With the Kospi Index down 12% and the Won at a 17-year low, the government unveils a 26.2 trillion won emergency budget to stabilise the economy.
In South Korea's capital, plastic bags are the hottest-selling item after food and petrol. In fact, some Koreans are tossing out waste from other people's bins in order to steal their empty waste bags - leading to disbelief among government officials and economists alike. The impact has been enormous, with approximately 2.7 million (5x the normal amount) pay-as-you-throw waste bags sold in just a few days.
The panic stemmed from strict rules regarding waste disposal, which require the public to only use specially government-approved waste bags. The massive political unrest in the Middle East has alarmed the public, who fear that the Western world will completely stop receiving oil supplies.
Due to the fact that the waste bags are made with naphtha, an oil-based material, there is widespread concern about the ability of the manufacturers to produce waste bags in the current climate, creating the phenomenon of "petro-panic." As a result of people now realising that waste disposal without waste bags is not possible, waste bags have become an extremely valuable asset for the public.
In South Korea, it is nothing new for homeless individuals to take to the streets in desperation.
A recent video has gone viral showing a woman taking an unknown neighbour's waste bag, pouring all of the waste onto the ground, then running off with the empty plastic liner, in places like Yangcheon-gu.
A post shared by Mo (@mo.of.everything)
While there are more cases of desperation locally, there is also an increase in economic uncertainty and instability. Panic buying, caused by fear from the ongoing Covid-19 pandemic, along with a 12% fall in the Kospi Index (South Korea’s stock market), the depreciation of the Korean Won to a 17-year low against the US dollar, and the subsequent decline in both investor and consumer confidence is indicative of the level of fear that exists both domestically and globally.
With the continuing supply chain disruptions and rapid inflation, the South Korean government is now in emergency response mode as the country attempts to stop both the complete breakdown of the economy and supply chains. The government is preparing to pass a massive 26.2 trillion won emergency budget for economic and basic supply line stability.
In an attempt to allay fears from the disruption caused by the pandemic, the minister for the environment has recently made a unique concession:
If a severe shortage of plastic bags occurs, the government shall temporarily permit the use of uncontrolled, non-standard plastic bags for the disposal of waste from the households and businesses of the state.
The economists believe that the trash bag crisis is one of the first signs of a deeper problem, mainly because South Korea relies on imported oil from the Middle East, and instability in that region could hurt not only plastic production but also the construction and manufacturing sectors, which make up a large part of South Korea's GDP.
(Disclaimer: The information in this report comes from information and videos currently trending on social media. Authorities at the regional level continue to monitor and verify the veracity of particular incidents.)
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Source: ZeeNews
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