By Kang Seung-woo
As the earthquake that shook Pohang in 2017 turned out to be a man-made disaster caused by a government project, the government is expected to face a series of damage suits, with the amount of compensation likely to reach up to 9 trillion won ($8 billion).
On Wednesday, the government-led research team concluded after a one-year investigation that the 5.4-magnitude quake in the North Gyeongsang provincial city was "triggered" by a nearby geothermal power plant, opening the doors wide to damage suits by citizens.
The tremors left 118 injured and cost 84.5 billion won, but the amount could reach 332.3 billion won when indirect economic losses are included, according to the Bank of Korea's Pohang office.
Citizens and civic groups are set to hold the government fully responsible for their direct and indirect suffering through legal actions ― either civil or criminal suits.
Last October, 71 people from the southeastern port city filed a class-action lawsuit, and more than 1,100 additionally did so in January in a second-round suit. They demanded the government compensate 5,000 won to 10,000 won for each person per day for psychological harm.
If the lawsuit expands to all citizens of Pohang ―- the city had a population of 509,964 as of January ― and if it takes about five years for the court to make a ruling, the amount is anticipated to swell to 9 trillion won, according to a Pohang citizens' organization handling the compensation issue.
The organization has launched a campaign to collect people for a third-round damage suit. According the organization, more than 300 people said they would participate in the legal action and it has been receiving hundreds of inquiry calls from citizens since Wednesday's study result announcement.
"For the next couple of months, we will recruit citizens for an additional lawsuit," a member of the organization said, saying it expects 3,000 people to join.
Along with them, there are still 200 people who have been staying at a temporary shelter since the quake occurred on Nov. 15, 2017, and a large number of homes were damaged severely ― something that may result in a hefty compensation boost.
Amid growing speculation that the government may have to shoulder a massive amount of compensation, it said it would comply with court rulings.
"The government will conduct a comprehensive review on our additional measures after discussion with relevant organizations and Pohang City," an official of the Ministry of Trade, Industry and Energy said.
The geothermal power plant project was jointly launched in 2010 by the government and Nexgeo, the operator of the facility.
In that respect, the ministry plans to check who is responsible for providing compensation. However, the company has filed for court receivership.
The earthquake was the nation's second-most-destructive tremor since observations began in 1978. The strongest occurred the previous year in Gyeongju, North Gyeongsang Province, measuring a magnitude of 5.8.
As the earthquake that shook Pohang in 2017 turned out to be a man-made disaster caused by a government project, the government is expected to face a series of damage suits, with the amount of compensation likely to reach up to 9 trillion won ($8 billion).
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| A banner is put up to prevent people from entering an earthquake-stricken apartment in Pohang, North Gyeongsang Province, Wednesday. The building was severely damaged by the 5.4-magnitude quake in November 2017. / Yonhap |
The tremors left 118 injured and cost 84.5 billion won, but the amount could reach 332.3 billion won when indirect economic losses are included, according to the Bank of Korea's Pohang office.
Citizens and civic groups are set to hold the government fully responsible for their direct and indirect suffering through legal actions ― either civil or criminal suits.
Last October, 71 people from the southeastern port city filed a class-action lawsuit, and more than 1,100 additionally did so in January in a second-round suit. They demanded the government compensate 5,000 won to 10,000 won for each person per day for psychological harm.
If the lawsuit expands to all citizens of Pohang ―- the city had a population of 509,964 as of January ― and if it takes about five years for the court to make a ruling, the amount is anticipated to swell to 9 trillion won, according to a Pohang citizens' organization handling the compensation issue.
The organization has launched a campaign to collect people for a third-round damage suit. According the organization, more than 300 people said they would participate in the legal action and it has been receiving hundreds of inquiry calls from citizens since Wednesday's study result announcement.
"For the next couple of months, we will recruit citizens for an additional lawsuit," a member of the organization said, saying it expects 3,000 people to join.
Along with them, there are still 200 people who have been staying at a temporary shelter since the quake occurred on Nov. 15, 2017, and a large number of homes were damaged severely ― something that may result in a hefty compensation boost.
Amid growing speculation that the government may have to shoulder a massive amount of compensation, it said it would comply with court rulings.
"The government will conduct a comprehensive review on our additional measures after discussion with relevant organizations and Pohang City," an official of the Ministry of Trade, Industry and Energy said.
The geothermal power plant project was jointly launched in 2010 by the government and Nexgeo, the operator of the facility.
In that respect, the ministry plans to check who is responsible for providing compensation. However, the company has filed for court receivership.
The earthquake was the nation's second-most-destructive tremor since observations began in 1978. The strongest occurred the previous year in Gyeongju, North Gyeongsang Province, measuring a magnitude of 5.8.
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