Waste incineration is a crucial component of waste management as it is the final stage of circular utilization and the initial phase of disposal. Effective waste management prioritizes energy recovery from waste and substantial waste volume reduction while committing to minimizing air pollutant emissions, particularly nitrogen oxides (NOx). This study involves an in-depth analysis of operational data from 44 incineration facilities in South Korea spanning 5 years, supplemented by empirical measurements from 14 sites. This study aimed to assess three key aspects of these incineration facilities: (1) waste volume reduction characteristics, (2) energy recovery capabilities, and (3) NOx emission reduction performance. We examined how these elements interact within the policy framework governing incinerator management in South Korea. Quantitatively, incinerating 100 tons of municipal waste resulted in a gain of 338.7 m3 in landfill capacity and recovery of 637.5 GJ of energy in the form of heat or electricity. Notably, South Korean incineration facilities significantly extend the lifespan of landfill sites, aligning closely with the objectives of the South Korean Ministry of Environment’s “No More Direct Landfilling of Household Waste Policy”. This positive outcome is further reinforced by the “Incineration Tax Reduction Policy”, which incentivizes active efforts toward energy recovery during incineration. Our study provides decision-makers with valuable insights for achieving a harmonious equilibrium between environmental sustainability and resource utilization, thereby contributing to the continuous improvement of policies aimed at South Korea’s vision of achieving a circular economy.