Yeongpung Seokpo Smelter Disposes of Penalty for Untreated Smelting Residues

*This content was translated by AI.

It was confirmed that the Yeongpung Seokpo Smelter was fined by the Ministry of Climate, Energy and Environment in January for failing to carry out the treatment of smelting residues among the integrated environmental permit conditions that had to be implemented within 2025. There is criticism from the industry and civil society about the Seokpo Smelter's environmental management capabilities and willingness to implement environmental restoration as it has been sanctioned several times for failing to comply with the permit conditions.

According to an answer to the Ministry of Climate, Energy, and Environment's request for information disclosure, the Ministry of Climate imposed a fine on the Seokpo Smelter on January 28. It indicated 'untreated smelting residues' as the reason for disposal. However, the specific amount of the penalty was not disclosed.

The legal basis for administrative disposition is Article 6 (3) and Article 22 (1) 5 of the Act on the Integrated Management of Environmental Pollution Facilities. If a business operator does not comply with the conditions of an integrated environmental permit, it is allowed to cancel, close, suspend operations, or order suspension of use. However, Article 23 of the same law stipulates that a fine of up to 300 million won may be imposed if suspension of operation or suspension of use is likely to significantly interfere with the national economy and other public interests such as residents' lives, employment and prices.

In the response from the Ministry of Climate, another non-fulfillment of the permit conditions was indicated as "undetermined soil pollution." On September 16 last year, the Ministry of Climate explained that the Seokpo Smelter was suspended. Such information is also included in the business report released by Youngpoong in March this year.

According to the disclosure, the Ministry of Climate imposed a 10-day suspension and a fine of 6 million won from November 11 to November 20, claiming that the Yeongpo Seokpo Smelter violated Article 6 (3) of the Act on Integrated Management of Environmental Pollution Facilities because it failed to clean up contaminated soil within the period. In response, Youngpoong stated that "the legal remedy process is in progress." Some in the industry and civil society say that the move is aimed at avoiding sanctions.

Industries and civil society predict that the restoration of the smelting site and the surrounding environment of the smelting site will inevitably be disrupted due to the unprocessed smelting residue and the failure to clean up the Oyam soil of the Seokpo smelting plant. The Ministry of Climate reportedly explained in a reply, "The soil pollution survey in the lower area of smelting residues will be conducted at the workplace after the smelting residue treatment is completed."

According to public disclosures and media reports, environmental risks at the Seokpo Smelter continue to intensify. According to the business report released by Youngpoong this month, five environmental sanctions were received from administrative agencies in the second half of 2025. In July last year, Bonghwa County Office ordered Yeongpung to clean up contaminated soil inside the smelter, and in December of the same year, ordered to clean up contaminated soil around the smelter. In addition, the Daegu Regional Environment Agency imposed a fine of 2 million won each in October last year for self-measurement list management, sulfuric acid storage tank repair, and occasional inspections of chemicals.

Environmental accounting issues are also reported to have emerged as issues. KZ Precision, a shareholder of Youngpoong, reportedly mentioned in a shareholder proposal to Youngpoong, "The Financial Supervisory Service has identified accounting problems related to environmental pollution in Youngpoong and is conducting accounting supervision on Youngpoong."

In January this year, the residents' task force of the Seokpo Smelter filed a complaint against Youngpoong, Jang Hyung-jin, and Kang Sung-doo, the president of the Seoul Central District Prosecutors' Office. According to the Residents' Countermeasures Committee, the minimum cleanup cost for the Seokpo smelter reported to the National Assembly by the Ministry of Climate, Energy and Environment is 299.1 billion won, but the restoration provision announced by Youngpoong is only 203.5 billion won, which is understated by about 100 billion won.

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*This content was translated by AI.