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The environmental issue caused by disposable cups is a global concern. South Korea is also suffering from environmental problems caused by disposable cups. According to data released by the Ministry of Environment in 2023, the domestic consumption of disposable cups amounts to approximately 26 billion annually, with disposable paper cups estimated to account for 16.6 billion of these.
Globally, 500 billion disposable cups are consumed annually, but the recycling rate is only 1%. The rest are discarded, polluting the planet. The problem is that the usage of disposable cups is on the rise. According to market research firm Research Nester, the disposable cup market is expected to expand from USD 13.45 billion (approximately KRW 18,675.3 billion) in 2024 to USD 14.95 billion (approximately KRW 20,758.1 billion) in 2025, indicating that the environmental pollution problem may worsen.
The government has attempted several policy interventions to solve this issue. However, the disposable cup deposit system implemented in 2003 and 2022 was abolished in 2008 and 2023, and the ban on plastic cup usage in stores met a similar fate. The repeated failure of policies demonstrates how difficult it is to induce behavioral change through regulation. However, the young startup NAWA has boldly challenged the seemingly unsolvable problem of disposable cup recycling.
Seo Young-ho, CEO of NAWA / Source=NAWA
Founded in 2022, the startup NAWA emphasizes that it is not a 'company saving the Earth' but a 'company delaying environmental destruction.' By proposing realistic goals rather than grand slogans, it aims to create a virtuous cycle of environmental protection and corporate growth. NAWA's vision is concretized in the disposable cup recycling solution, Cupkiri. How did NAWA discover 100% opportunity in 1% despair? An interview was conducted with Seo Young-ho, CEO of NAWA.
Exploring and Solving Social Challenges“It was during a prototype test at Sejong Lake Park. We went on-site with an acrylic prototype we assembled ourselves. Everyone was exhausted from the uncertain future after several sleepless nights assembling the machine. Then a child put a paper cup with cola into the machine and asked why we were washing the paper cup. The engineer explained that washing the paper cup makes it recyclable. Shortly after, the child brought their parents to introduce the machine and brought others as well. They thanked us for making such a machine. Hearing this story, everyone cried. Without that experience, NAWA might not exist today.”
The experiences encountered in the process of realizing the idea of a disposable cup recycling solution became the driving force behind NAWA today. The encouragement from a child became the fuel that ignited the will to solve social problems. According to CEO Seo Young-ho, a clear sense of purpose is the strongest motivation in navigating the challenging path of a startup.
NAWA is a startup founded in October 2022 by university students with the will to solve seemingly unsolvable problems. The members of NAWA, gathered to solve the social challenge of disposable cups, sought realistic solutions instead of idealistic slogans. The name NAWA was chosen to convey the meaning 'No Answer We Answer.'
Over time, NAWA embarked on a journey to achieve its goals. In 2023, it engaged in activities with the meaning of Neutrality And Worthy Action, and in 2024, it pursued New Answer We Action. It began communicating with stakeholders by hosting the '2023 Youth ESG Corporate Dialogue' with Seoul city officials and investors and conducted market validation by operating prototypes at universities and local festivals.
In 2025, NAWA is concretizing its growth and goals with the meaning of Next Action With Aim. It has succeeded in developing equipment for washing and separating disposable cups, Cupkiri.
NAWA's members place importance on 'solving the fear felt by customers.' The fear they refer to is the guilt or social discomfort felt when carelessly discarding disposable cups. CEO Seo Young-ho stated, “The members of NAWA, including myself, are delving into the fears felt by the public and pouring everything into developing solutions that allow users to participate in environmental protection without psychological burden.”
Cleanly Washing and Separating Disposable Cups with 'Cupkiri'While most resource circulation startups focus on items with high economic value when recycled, such as PET bottles or aluminum cans, NAWA intentionally approached the disposable cup market. CEO Seo Young-ho believes the sluggishness in disposable cup recycling is due to 'inconvenience.' The process of emptying leftover drinks and rinsing the cups is cumbersome. Past policies like the disposable cup deposit system failed because they did not alleviate consumer inconvenience.
NAWA focused on alleviating the inconvenience people experience in the disposable cup recycling process. First, users only need to insert most standard-sized disposable cups, excluding ultra-small cups, into the input slot. Once the equipment recognizes the disposable cup passing through the input slot, a robot arm with a handle firmly secures the cup. The robot arm then discards the drink inside the cup into a separate waste container and uses washing equipment to rinse the inside of the disposable cup with water to remove residues. The washed cup is then sent to a compressor after drying.
By discarding leftover drinks and rinsing during the disposable cup recycling process, the likelihood of odors and pests is significantly reduced. In traditional disposable cup separation and disposal, people were involved in most of the washing and sorting processes, but Cupkiri has replaced all processes with machines. People only need to discard the disposable cups.
NAWA is also preparing for future market changes where the use of reusable containers or tumblers is expanding. CEO Seo Young-ho stated, “We have developed a solution that integrates an NFC reader for reusable cups and a separate washing space for tumbler users. This is expected to provide scalability to flexibly respond to regulatory changes.”
NAWA's developed disposable cup recycling solution, Cupkiri / Source=NAWA
Cupkiri is not just a simple disposable cup sorting device. It applies cameras and artificial intelligence (AI) systems inside the device to collect and analyze various data such as foot traffic, dwell time, and gender ratio. The Cupkiri equipment itself can also incorporate displays and customized designs, allowing it to be used as an advertising platform.
NAWA's business model is based on practicality. First is the equipment rental business. It is a strategy to increase the user's return on investment (ROI) by renting out equipment for a fixed amount. CEO Seo Young-ho explained that the trash can cleaning and organizing tasks, which used to take 30 minutes a day, are eliminated, saving approximately KRW 180,000 per month (based on a minimum hourly wage of KRW 12,000). Additionally, reducing the volume of cups decreases the use of trash bags, saving an additional KRW 20,000 per month.
CEO Seo Young-ho believes that beyond the monthly cost savings of approximately KRW 200,000, the benefits of equipment rental are sufficient when considering intangible values such as hygiene improvement, ESG management practice, and brand image enhancement. In addition, they are researching revenue diversification through advertising using the front monitor of the device, service-based data business (DaaS - Data as a Service) based on collected data, and securing carbon credits.
Expanding Globally to Promote Environmental ValuesNAWA is growing by gaining recognition for its value overseas rather than domestically. The first country to recognize the potential of Cupkiri was Japan. In 2024, NAWA signed an advisory contract with Mizuho Bank, one of Japan's top three major banks with assets of KRW 2,000 trillion. An advisory contract is an agreement where a company receives advice and support from experts in a specific business field. Through the contract with Mizuho Bank, NAWA was able to enter the Japanese market.
Cupkiri installed in a cafe in Japan / Source=NAWA
Subsequently, Japanese energy giant Sinanen Holdings extended a hand. NAWA moved into SEESAW, operated by Sinanen Holdings in Japan. With the support of these two Japanese companies, NAWA installed Cupkiri in the NOROSI cafe in Kobe, Japan, to conduct demonstration work. A resource circulation model was established where collected paper cups are made into fertilizer supplied to nearby lime farms, and limes grown on the farms are delivered back to the cafe.
The Hongneung Small and Medium-Sized Special Zone support program played a crucial role in NAWA's concretization of its global business model and strategic vision expansion. It provided a foundation for growth by mentoring on business direction and contemplating strategies for entering overseas markets. CEO Seo Young-ho stated, “Participating in the Hongneung Small and Medium-Sized Special Zone support program allowed us to expand our perspective from being confined to domestic markets to a global scale, and it was especially helpful in concretizing a business model suitable for the Japanese market. It was an opportunity to break the mold of confined thinking.”
Seo Young-ho, CEO of NAWA / Source=NAWA
NAWA plans to focus on demonstrating that the ideal of preventing environmental destruction can develop into a sustainable business. Based on the example of entering Japan, it will tackle the issue of disposable cup recycling in Korea. In the short term, it aims to complete KC certification and Public Procurement Service registration to enter the domestic public market. Subsequently, it plans to pioneer new markets without competitors, such as the United States and Africa. CEO Seo Young-ho stated, “By 2026, we want to solve the disposable cup problem and use the technology, infrastructure, and problem-solving experience NAWA has built to challenge another 'unsolvable problem' in society.”
IT Donga Reporter Kang Hyeong-seok (redbk@itdonga.com)
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