Used battery industry transitions from ‘waste’ to ‘core resource’

On March 30, 2026, the Legislation and Judiciary Committee of the National Assembly approved the amendment to the “Act on Management and Industry Promotion of Used Batteries” (hereinafter referred to as the “Used Battery Act”), and it is expected to pass the plenary session in the future.

This billIt is expected to function as a basic law that redefines used batteries as industrial resources and comprehensively regulates the entire life cycle management system, including distribution, reuse, remanufacturing, and recycling.no see.

In particular, it is significant in that it is legislation aimed at securing supply chain stability and industrial competitiveness in response to strengthening global regulations such as the expansion of electric vehicles and ESS and EU battery regulations.

Let’s take a look at the main contents of the Post-Use Battery Act.

Legal transition to industrial resources and scope of application

Used batteries are regulated as industrial resources, not waste, and are subject to the following:

• Electric vehicle, hybrid, and hydrogen vehicle batteries
• Batteries mounted on construction and agricultural machinery
• Other energy storage devices batteries

Additionally, unless there are special provisions in other laws, this Act shall take precedence.

Policy committee establishment and integrated management system

The ‘Post-Use Battery Policy Committee’ under the Ministry of Finance and Economy will be established and will oversee policy coordination, transactions and registration, safety management, history management system, and enactment and revision of laws.

It will serve as a control tower that integrates and coordinates industrial, environmental, and safety policies.

Disciplinary system by business type

① Distribution business operator

• Imposition of registration obligation
• Only transactions between registered businesses are permitted.
• Criminal punishment for violation

② Reuse business operator

• registration obligation
• Strengthening consumer protection responsibilities by mandating deductions or insurance subscriptions

③ Remanufacturer

• Replaced with registration of 「Automobile Management Act」
• However, there are separate compliance obligations and obligations to provide performance evaluation information.

④ Recycling business operator

• Replaced with permission for the 「Waste Management Act」
• Separate compliance requirements apply

This is a structure in which dual regulations for each business operator are partially relaxed, but actual management and responsibility are strengthened.

Performance evaluation and safety inspection obligations

• Obligation to evaluate performance before disconnecting battery
• Safety inspection obligation before distribution
• Regular safety inspection every 3 years

In particular, sanctions regulations have been introduced, such as criminal punishment for falsification or falsification of performance evaluations and imposition of fines for failure to conduct performance evaluations.

Recycled raw material certification and content target system

• Recycled raw material production certification (Ministry of Environment)
• Content rate certification (Ministry of Trade, Industry and Energy)
• Ability to set goals for content of recycled raw materials

The content rate target system is scheduled to be implemented separately within two years after the law goes into effect, and is a key regulation directly related to response to EU battery regulations and supply chain strategy.

Industry development and support policy

• Establishment of public transaction system
• History management system operation
• Recommendation for preferential purchase of remanufactured and reused products
• Tax support available
• Support for technology development and human resources training

Since the Used Battery Act is a ‘regulation-oriented legal system’ that imposes clear obligations and responsibilities for each type of business, each company needs to proactively check risks appropriate to its business structure.

In particular, it is designed to have a structure that combines registration, certification, safety management, and supply chain response, so it is essential to establish a company-wide compliance system rather than a single area.

Distributor: Registration obligation and criminal punishment risk

After enforcement of this Act, distribution businesses will be required to register with the Minister of Trade, Industry and Energy, and the structure will shift to a structure where only transactions between registered businesses are permitted.

Accordingly, if you engage in distribution, brokerage, or mediation activities in an unregistered state, or if you transact with an unregistered business operator, you may be subject to criminal punishment.

In addition, since registration requirements (facility, personnel standards, etc.) are delegated to subordinate laws, there is a possibility that the existing business structure itself may become unsustainable depending on the enactment of the enforcement ordinance.

Corresponding point

• Prior review of business registration eligibility and requirements
• Establishment of a system to check whether the counterparty is registered
• Redesign of business structure according to trends in enactment of subordinate laws

Reuse business: Consumer protection liability and insurance risk

In addition to the registration obligation, reuse business operators are also required to subscribe to deductions or insurance, which is a structure in which the business operator is directly responsible in the event of consumer damage.

Since used batteries have large performance differences between products and are highly likely to cause safety problems, the risk of civil damages and product liability (PL) may increase in the event of an accident.

In particular, insurance requirements and coverage can have a direct impact on business sustainability.

Corresponding point

• Advance review of mutual aid/insurance product structure and scope of coverage
• Establishment of a quality management system based on performance evaluation results
• Establishment of consumer dispute response process

Remanufacturers: Double regulatory and compliance risk

For remanufacturers, registration under the Automobile Management Act is considered registration under the Used Battery Act, but this can be seen as the beginning of a dual disciplinary structure rather than relaxation of regulations.

In other words, in addition to the obligations under the existing Automobile Management Act, compliance matters and the obligation to provide performance evaluation information under the Used Battery Act are applied separately, so conflicts or overlapping regulations between laws may occur.

Corresponding point

• Analysis of regulatory overlap with the Automobile Management Act
• Establishment of performance evaluation and data provision system
• Integrated monitoring of relevant law revision trends

Recyclers: Complex risks of environmental and industrial regulations

Recyclers are permitted to obtain permission under the Waste Management Act, but additional compliance requirements apply under the Used Battery Act.

This is a combination of industrial policy regulations in addition to the existing environmental regulation-oriented structure, and there is a possibility that the intensity of regulations will increase in the future.

In particular, in the event of environmental pollution or safety accidents during the battery recycling process, administrative action, criminal liability, and liability for damages can occur simultaneously.

Corresponding point

• Checking regulatory consistency with the Waste Management Act
• Strengthening environmental and safety management standards
• Establishment of a response manual in case of an accident