By Yoon Ja-young
Oriental Brewery (OB) is the focus of controversy after it was learned that the company has used water from the Namhangang River for free over the past 36 years.
According to Gyeonggi Province Assembly lawmaker Yang Keun-suh of the main opposition New Politics Alliance for Democracy, OB got approval to use 35,000 cubic meters of water daily from the Namhangang River since it set up its brewery in Icheon, Gyeonggi Province, in 1979.
It collects the water from Yeoju, Gyeonggi Province and sends it to the Icheon factory through an 18-kilometer-duct. The water then goes through a purification process to make the beer.
As one ton of water for industrial use costs 50.3 won, it means OB should have paid 7.7 billion won last year. However, OB‘s only water payment has been the 1.2 billion won Yeoju City levied against it last December for water used between 2009 and 2010.
Rep. Yang explained that the Gyeonggi Province and Yeoju City officials were ignorant of the related laws. "It is like giving special favors to OB, a conglomerate," he said. "OB, which represents the country's beer manufacturers, has been using tens of billions of won worth of national resources for free. It is doubtful whether the company has corporate ethics."
OB, however, said it didn't pay because it was never levied.
"Since we got approval for the Icheon factory in 1979, we have been renewing and extending the permission following due process each time. We have never received notice from the government regarding the fees," the company spokesperson explained.
The company also stressed that it has been investing tens of billions of won in the water facility, setting up an intake and pumping station, as well as a purification facility. "We have been investing over 1 billion won in facilities each year. Our infrastructure has contributed to the community, providing water to the residents for free," she said.
She added that such contributions were thought to have played a role in the exemption from the fee.
OB said it will consult the government regarding the issue, and added that it would abide by regulations in any circumstances.
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| OB's products / Korea Times file |
According to Gyeonggi Province Assembly lawmaker Yang Keun-suh of the main opposition New Politics Alliance for Democracy, OB got approval to use 35,000 cubic meters of water daily from the Namhangang River since it set up its brewery in Icheon, Gyeonggi Province, in 1979.
It collects the water from Yeoju, Gyeonggi Province and sends it to the Icheon factory through an 18-kilometer-duct. The water then goes through a purification process to make the beer.
As one ton of water for industrial use costs 50.3 won, it means OB should have paid 7.7 billion won last year. However, OB‘s only water payment has been the 1.2 billion won Yeoju City levied against it last December for water used between 2009 and 2010.
Rep. Yang explained that the Gyeonggi Province and Yeoju City officials were ignorant of the related laws. "It is like giving special favors to OB, a conglomerate," he said. "OB, which represents the country's beer manufacturers, has been using tens of billions of won worth of national resources for free. It is doubtful whether the company has corporate ethics."
OB, however, said it didn't pay because it was never levied.
"Since we got approval for the Icheon factory in 1979, we have been renewing and extending the permission following due process each time. We have never received notice from the government regarding the fees," the company spokesperson explained.
The company also stressed that it has been investing tens of billions of won in the water facility, setting up an intake and pumping station, as well as a purification facility. "We have been investing over 1 billion won in facilities each year. Our infrastructure has contributed to the community, providing water to the residents for free," she said.
She added that such contributions were thought to have played a role in the exemption from the fee.
OB said it will consult the government regarding the issue, and added that it would abide by regulations in any circumstances.
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