The Seoul city government said Monday it is conducting an inspection into plastic waste collection in residential areas after waste removal companies refused to pick it up, citing low margins.

Confusion has grown among South Koreans over how to recycle plastic waste, such as plastic bags or Styrofoam containers, since garbage service companies said they will not collect any more of the plastic waste starting April 1, because the processing cost has spiked.

The companies said the decision by Beijing to ban the import of waste resources from January has caused a plunge in the value of the waste resources, while processing costs remain high, leaving companies with little profit. 

The Seoul Metropolitan Government said the inspection will be carried out in all 25 districts in the capital to see if the plastic waste is being properly collected by recycling companies and if any recycling company has refused to collect plastic waste from a particular residential area.

Later in the day, the Ministry of Environment said the recycling of plastic waste will remain in place, announcing the result of an emergency meeting with dozens of waste removal companies based in three metropolitan cities, including Seoul, Gyeonggi and Incheon.

It also encouraged the managing body of the residential complexes, most of which consist of apartments, to renegotiate the terms with the waste pickup firm considering the change in the circumstances, the ministry said.

There are no penalties for restricting a waste removal company if it decides to discontinue collection from a certain residential area, since it's considered a private contract between two parties.

The ministry said it will soon announce additional measures to ensure the plastic recycling system runs effectively and also to help waste service businesses stay afloat. (Yonhap)