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The recycling and proper management of PET bottles is needed to avoid plastic pollution, as well as to achieve a plastic circular economy. In this study, we examined the recycling system of PET bottles and their material flows by life cycle, from production to recycling and disposal under different scenarios with reduced consumption for PET bottles. In Korea, PET bottle recycling has been managed by the extended producer responsibility system since 2003. As of 2021, annual usage of PET bottles per capita in Korea was estimated to be approximately 6.5 kg. The recycling rate of PET bottles after collection was determined to be 79% in 2021. However, recycled PET (or r-PET) from mechanical recycling is mostly used in low-grade PET applications such as short fibers, bands, and sheets. More than 112 thousand tons of r-PET chips would be needed to meet the 30% recycled content requirement in PET bottles in 2030 by regulation. Thus, there is an urgent need for high-quality secondary raw materials (i.e., food-grade) by adopting advanced sorting and recycling technologies for PET bottles with recycled content. PET bottle-to-bottle recycling practices can ensure the production of high-quality recycled materials and move Korea toward a plastic circular economy. [ABSTRACT FROM AUTHOR]