Lee Heon-seung (Rep.), "The vicious cycle of environmental pollution surrounding Seokpo Smelter must be ended as soon as possible... Soil contamination is severe"

*This content was translated by AI.

Opinions are emerging that the scope of soil contamination at Yeongpoong's Seokpo Smelter is wider than initially estimated by administrative authorities, drawing attention. In some areas, contaminated soil exceeding three times the amount subject to administrative orders has been additionally identified.

According to data on "Soil Remediation Implementation Rate for Seokpo Smelter Soil Remediation Project" submitted by the Gyeongsangbuk-do Provincial Office to People Power Party Representative Lee Heon-seung, it was reported that significantly more contaminated soil than initially estimated was discovered. The total volume of soil subject to remediation orders at Yeongpoong's Seokpo Smelter was 815,203.7 cubic meters, but an additional 125,000 cubic meters of contaminated soil was confirmed during excavation and remediation processes alone.

Notably, in the area where copper spicules—intermediate materials used to extract copper—were stored, an additional 74,170 cubic meters of contaminated soil was identified, exceeding three times the originally ordered remediation volume of 24,545 cubic meters.

Remediation efforts are also proceeding slowly. As of late July, cumulative remediation at Yeongpoong's Seokpo Smelter reached 437,121.5 cubic meters, accounting for only 53.6% of the ordered volume. It is understood that only three locations—Workshop No. 3, part of Wonju Tak's site, and riverbank areas—have received completion certification from Bonghwa County. Among the remaining areas, only Workshop No. 1 had remediated more than 50% of its ordered volume. Workshop No. 2 remained at a 12.0% remediation rate, while surrounding areas stood at 27.0%.

Initially, Bonghwa County issued the first soil remediation order in April 2015 and required completion within two years. However, Yeongpoong responded by requesting an extension and filing administrative lawsuits, leading to re-orders. Furthermore, Yeongpoong failed to comply with a 2021 order for internal factory soil remediation until the end of June 2025, resulting in criminal prosecution and another re-order. In addition, lawsuits over liability for contamination continue in some areas where only arsenic was detected.

Environmental issues extend beyond soil. During a special government inspection in 2020, cadmium was detected above water quality standards at all 108 groundwater monitoring points within the smelter site and along the riverbank. At that time, violations of regulations were also uncovered, including operation of unauthorized air emission facilities, unauthorized extraction of river water, and improper storage of waste.

Lee Heon-seung (Rep.) stated, "The soil remediation order issued in 2015 remains incomplete after more than a decade, and liability for some contamination is still being disputed." He urged, "We must no longer leave this to the operator's voluntary improvements. Instead, through responsible fundamental measures including relocation and reassignment, we must quickly end the vicious cycle of environmental pollution surrounding Seokpo Smelter."

The environmental pollution controversy involving Yeongpoong has also expanded into legal and accounting issues, as well as calls for accountability against the owner's family. The Nakdong River Upperstream Environmental Damage Residents' Countermeasures Committee and the Yeongpoong Smelter Bonghwa County Countermeasures Committee claimed that a comparison between the estimated future soil remediation costs for Seokpo Smelter publicly disclosed by the Ministry of Environment to the National Assembly in January and the contingent liabilities reflected in Yeongpoong's 2024 semi-annual report revealed a discrepancy of approximately 95.6 billion won, leading them to file reports against Yeongpoong and its advisor Jang Hyung-jin.

In this context, the Financial Services Commission's Securities and Futures Committee determined that despite clear legal obligations for soil remediation around the smelter, Yeongpoong failed to recognize or underreported contingent liabilities related to soil and groundwater remediation obligations from 2021 to 2024. The committee also pointed out that the company reduced impairment losses by not sufficiently reflecting the impact of production suspension in its tangible asset impairment assessment.

Accordingly, the Financial Services Commission decided last July to impose a fine of 20.4741 billion won on Yeongpoong, the largest single accounting-related penalty in its history.

Additionally, the Seoul National Police Agency's Investigation Deliberation Committee decided last month to re-investigate Advisor Jang's alleged violations of the Environmental Crime Control Act and Soil Environment Conservation Act regarding suspicions of heavy metal contamination in the Nakdong River caused by Seokpo Smelter. The case was transferred from the original investigating agency, Seoul Gangnam Police Station, to the Seoul National Police Agency's Metropolitan Investigation Team. In response, the countermeasures committee argued that the Prosecution Service and police should conduct a joint investigation linking the accounting case and the environmental crime case.

In political circles, even the possibility of suspending Seokpo Smelter's operations is being discussed. Minister Kim Sung-hwan of the Ministry of Climate, Energy and Environment stated at last month's plenary session of the Climate, Energy, Environment, and Labor Committee that in response to Lee Heon-seung (Rep.)'s inquiry regarding relocation or closure of Seokpo Smelter, "If it is determined that there will be an adverse impact on the entire Nakdong River ecosystem, we believe the strongest measure available to us would be to suspend operations at (Seokpo Smelter)."

At the same session, People Power Party Representative Kim Hyung-dong raised concerns about the integrated environmental permit conditions and the level of fines for Seokpo Smelter. Kim (Rep.) remarked, "If deadlines are missed, shouldn't the factory be closed as is?" He further pointed out, "Even with sufficient grounds for violating integrated management conditions, if the company resists through administrative litigation, only fines are imposed." In response, Kim (Minister) replied, "I fully agree with your honorable intent."

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*This content was translated by AI.