Korea is one of the countries which have a remarkable record of high and sustained economic growth. However, as the national economy has continued to grow and the industrial structure has become increasingly advanced, the amount of wastes being generated has been rapidly on the rise. recycling wastes to cope with the environmental problems caused by wastes has become an increasingly important policy issue in developing countries such as Korea, as well as in developed countries. This situation demands that researchers provide policy-makers with available and responsible information regarding the effect of the recycling industry in the public sector. This study employs input-output (I-O) analysis to examine the effect of public sector recycling industry in the national economy, using a specific application to Korea. The paper, therefore, has two major goals. The first is the development of a static I-O framework for looking into the effect of public sector recycling industry in the short run. The second goal is obtaining at_ least a preliminary indication of the effect of the recycling industry- in public sector. Moreover, we discuss the role of a public firm that established with an objective of promoting and facilitating the reutilization of recyclable wastes. The overall results indicate that the recycling utilities may have a significant influence on the standard of living and industrial production.