Once disposed of, most set-top boxes meet the same fate — incineration. Their electronic parts and plastics go unrecycled, contributing to greenhouse gas emissions and microplastic pollution. Now, a new movement is emerging to reverse this trend.

In Collaboration with KT, LG Chem has built a circular system that collects end-of-life set-top boxes and gives them a second life. This goes beyond simply using recycled raw materials. It marks the first application of a closed-loop production system to a communication device, covering the entire process from collection and sorting to cleaning, processing, and remanufacturing.

Today, we bring you the story of this transformation, from the project’s inception to its evolution, through interviews with KT and LG Chem representatives.

Q. Hello! Please introduce yourself.

Kim, Jae-Nam/KT: Hello. I’m Kim, Jae-Nam, heading Sourcing Team 2 in KT’s Purchasing Division. I oversee sourcing strategies and procurement for devices, IT, and software. Recently, I’ve also been pursuing new initiatives that build on my existing role.

Lee, Won-Kyun/KT: Hello. I’m Wongyun Lee from the Device and IT Purchasing Team in Sourcing Team 2 of KT’s Purchasing Division. I manage the company wide device SCM council and oversee purchasing, contracting, and eco-friendly recycling for devices and IT.

Kim, Yong-Tae/LG Chem: I’m Kim, Yong-Tae, responsible for global marketing strategy in LG Chem’s Engineering Materials Division. My role includes developing product portfolios, formulating pricing and promotion strategies, and building the foundation for our sustainability business.

Lee, Jong-Ik/LG Chem: I’m Lee, Jong-Ik from the Customer Development Team in LG Chem’s Engineering Materials Division. I identify new customers and lead collaborative projects with them on sustainable products.

Q. How did the sustainable rental device production system come about?

Kim, Jae-Nam/KT: Since declaring carbon neutrality in 2022, KT has been actively exploring how we could contribute from an ESG perspective. At the time, all plastics from end-of-life devices were being incinerated, and we began thinking about how to turn them into a circular resource. This led us to ask, “Could we make new devices from the plastics in waste devices?”, and that question became the starting point of this project.

Kim, Yong-Tae/LG Chem: LG Chem aims to achieve carbon neutral growth by 2030 and reach net zero by 2050. To this end, we operate our eco-friendly brand ‘LETZero,’ helping customers reduce their carbon emissions. When KT proposed a collaboration, we recognized that our recycling technology and experience could support the creation of a circular system for waste devices, so we decided to take part in the project.

Q. Why did you choose LG Chem over other potential partners?

Kim, Jae-Nam/KT: As we explored ways to put ESG into practice, we needed a partner to carry out this project with us. After reviewing various possibilities internally, we concluded that LG Chem was the best choice to implement this system effectively. We also found LG Chem to be the most trustworthy partner for close collaboration.

Lee, Won-Kyun/KT: LG Chem had long been a trusted partner, steadily supplying general materials for KT’s rental devices. Building on this trust, we proposed working together on a sustainability project. LG Chem, well recognized both in Korea and internationally for its expertise in eco-friendly materials, readily agreed, and the collaboration came about naturally.

Q. How does the closed-loop production system work for recycling waste devices into set-top boxes?

Lee, Won-Kyun/KT: In the past, all collected rental devices were incinerated through our waste processing partner. Today, in collaboration with LG Chem and other partners, we’ve built a new circular system. Working with the waste processing company, we separate the plastics, then wash and crush them before sending them to LG Chem. There, the material is reprocessed and used to produce new device cases.

Lee, Jong-Ik/LG Chem: Our designated recycling partners remove labels and contaminants from collected device covers, then crush them into pellets. These pellets are sent to LG Chem’s plant, where, using our proprietary technology, they are processed into compound materials with enhanced physical properties and flame retardant performance. The finished materials are then supplied back to KT’s device manufacturing partners.

Q. What challenges did you face during the initial production phase, and how did you overcome them?

Lee, Won-Kyun/KT: Since it was our first time sending collected devices to LG Chem, we faced challenges in establishing a new process with our waste management partners. We explained the purpose of the project to them and, in close consultation with LG Chem, built the system together. In the early stages, it was difficult to meet our design quality standards. However, thanks to LG Chem’s continuous improvements and numerous tests, we were able to stabilize the quality. Now, there is almost no difference from our existing products.

Lee, Jong-Ik/LG Chem: The collected plastics contained more impurities and had less uniform quality compared to conventional PCR raw materials, making them difficult to use. Meeting our quality standards was the biggest challenge, and our development team worked hard to determine the optimal composition and properties. Together with KT, we inspected supply chain sites and closely checked the quality of each process. Through these efforts, we were able to establish a stable production system.

Q. What is the significance of the LETZero certification mark?

Kim, Jae-Nam/KT: The LETZero certification mark instantly signals to customers that our device is eco-friendly. The Genie TV set-top box carries both the LETZero mark and the ‘E-Excellent Circulation Product’ certification mark. Even if customers don’t fully grasp the exact meaning of these marks, they still convey the message that this is a good, sustainable product. Together, the two marks enhance the product’s premium feel and have a positive impact on our brand image.

Q. How have customers and internal teams responded to the sustainability certified device?

Kim, Jae-Nam/KT: While customers may not say directly, “You did a great job,” the eco-friendly mark clearly has a positive impact. Even placing a single sticker is no simple task, but it carries significant meaning. Although customers may not recognize it right away, I believe it will become an asset in building brand trust and strengthening our ESG image. As awareness grows and it becomes more widely recognized, customers will begin to notice it and respond on their own.

Lee, Won-Kyun/KT: Interestingly, the internal reaction was even more proactive. The business department and the ESG promotion team themselves suggested, “Let’s add more stickers,” which led us to place both the LETZero mark and the certification mark on our devices. The fact that this initiative came voluntarily, without any request from us, was particularly meaningful.

Q. How do you plan to further expand this project in the future?

Kim, Jae-Nam/KT: We began with just one model of set-top boxes, but we plan to expand to other devices such as APs and modems. Through this project, our partners have strengthened their ESG capabilities, which will make future expansion much smoother. Notably, some of our partners have entered overseas markets, and this experience will help them meet global ESG standards. KT will continue to increase the share of eco-friendly devices in our portfolio.

Kim, Yong-Tae/LG Chem: Through our collaboration with KT, we have confirmed the potential to expand our eco-friendly material solutions beyond set-top boxes to various business areas such as 5G, data centers, and robotics. We look forward to exploring opportunities to work together in sectors beyond telecommunications.

Kim, Jae-Nam/KT: KT’s Purchasing Division serves as a link across all business units company wide. Whenever LG Chem offers an excellent solution, we are ready to discuss it and explore ways to expand it together. I will personally be committed to providing active support.

Q. Lastly, is there anything you’d like to say to each other?

Kim, Jae-Nam/KT: Last year, the Genie TV set-top box A model became the first in Korea to receive the ‘E Excellent Circulation Product’ certification. The certification process involved meeting stringent standards and submitting extensive documentation. LG Chem’s proactive support throughout this process was a great help, and I sincerely thank them for it.

Kim, Yong-Tae/LG Chem: This project was the world’s first experimental attempt to apply a closed-loop structure to telecommunication devices. In the early stage, we spent about two years verifying the production system with a single model, facing numerous challenges from resource collection to quality stabilization. Nevertheless, KT’s strong commitment and close collaboration helped us overcome each hurdle. I would like to take this opportunity to express my sincere gratitude.

This project, reviving waste device plastics into set-top boxes, was made possible by the capabilities and commitment of KT, LG Chem, and all participating partners. Going forward, LG Chem will further expand such circular systems, while KT also remains committed to continuing its ESG journey.

Just as the interviewees have shared, small changes can add up to transform our daily lives toward sustainability. That change begins with putting genuine care for the environment into every single product.