Humidifier Disinfectant Disaster Coordination Committee "Will Hold Additional Consultations with Related Companies"

Mediation Committee "Difficult to Confirm Oxy's Clear Intent"
Estimated Mediation Amount Minimum 779.5 Billion KRW ~ Maximum 924 Billion KRW
If Mediation Proposal Is Not Adopted, Recovery Must Rely Solely on Special Law

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] As Oxy and Aekyung, responsible for the humidifier disinfectant disaster, rejected the final settlement proposal, the Humidifier Disinfectant Disaster Settlement Committee (Settlement Committee) decided to proceed with additional consultations.

On the 11th, the Settlement Committee held a press conference titled "Progress Report of the Settlement Committee for Relief of Humidifier Disinfectant Victims" at the Seoul Gwanghwamun Bar Association Hall. Established in October last year, the Settlement Committee is a private organization created to facilitate negotiations between victims and offending companies and has been drafting settlement proposals. Attending the press conference were Kim Yi-su, Chairman of the Settlement Committee, Secretary-General An Sik, Settlement Committee members Hwang Jeong-hwa, Choi Byung-hwan, and Kim Hak-rin.

The Settlement Committee stated that while they tried to maximize negotiations between companies and victims, there were limitations regarding the burden-sharing ratio and settlement amounts. Chairman Kim said, "The allocation of settlement amounts was a difficult issue to resolve during the settlement process," adding, "Since Oxy and Aekyung, who must bear more than 60% of the settlement amount, have refused to agree, the settlement proposal has become practically difficult to implement."

He also explained that they inquired with companies such as SK Chemical and SK Innovation, which have the next highest burden-sharing ratios after Oxy, about increasing their shares, but these companies expressed that they could not bear more than their current amounts. If all companies agree to the Settlement Committee's final proposal, the settlement amount is estimated to range from a minimum of 779.5 billion KRW to a maximum of 924 billion KRW.

The committee also explained that there were communication difficulties with the overseas company Oxy. Member Hwang said, "So far, negotiations have been conducted through Oxy's domestic branch, but the headquarters has not clearly expressed its position, making confirmation difficult," adding, "We will continue our efforts, and personally, I intend to contact and persuade the headquarters directly."

The Settlement Committee plans to engage in further consultations with companies such as Oxy and Aekyung. Chairman Kim stated, "Although the situation is precarious for achieving a settlement, we will do our utmost to reach an agreement until the very end," and "Once again, we request all related companies to engage in additional consultations regarding the adjustment of burden-sharing ratios from the perspective of fulfilling social responsibility solidarity."

He also urged cooperation beyond the current government to the next administration. If the Settlement Committee's activity period, which ends at the end of April, is extended, the Yoon Suk-yeol administration will handle the humidifier disinfectant disaster issue. If victims and offending companies reach an agreement, the Settlement Committee's activity period can be extended by two months. Chairman Kim said, "This is not a task for a specific government but a challenge that any government must resolve," adding, "Although we have not confirmed the response of the transition committee, we believe they will be cooperative whenever the settlement occurs."

If this settlement proposal is not adopted and the Settlement Committee is disbanded without results, victims will have to rely solely on the Special Act on Relief for Humidifier Disinfectant Victims. For the settlement proposal to be adopted, a majority agreement is required from the nine companies participating in the Settlement Committee (Oxy, Aekyung Industrial, Emart, Lotte Shopping, Homeplus, SK Chemical, SK Innovation, LG Household & Health Care, GS Retail) and among the 7,027 victims subject to settlement. However, victim organizations have halted the process of confirming agreement to the proposal due to the companies' refusal to consent.

This content was produced with the assistance of AI translation services.