By Kim Yoo-chul
Samsung Electronics promised Wednesday reasonable compensation for its employees who allegedly died or developed leukemia as a result of working at its semiconductor production facilities.
The tech firm also decided to withdraw all related litigation.
“We feel heartbroken,” said Samsung Electronics co-CEO and vice chairman Kwon Oh-hyun at the firm’s main office in Seocho, southern Seoul.
“Workers contracted leukemia and other incurable diseases and some died,” Kwon said in a briefing. “Their dedication has helped Samsung to become what it is today.”
The surprise announcement came at a time when Chairman Lee Kun-hee remains hospitalized after a heart attack.
The families of the affected people have waged an unsuccessful fight against Samsung in local courts over the last seven years demanding compensation.
Until now, Samsung persistently denied responsibility for the death of its former employees and those who developed cancer while working at the firm’s chip-manufacturing lines.
The families of two deceased workers won a compensation suit in 2011, but Samsung immediately filed an appeal against the ruling.
The victims’ families then organized a pressure group called “Banolim,” to secure full compensation from the government but their efforts have so far generated mixed results.
Banolim claims that it has found 58 cases of leukemia and other blood-related cancers in people who worked at Samsung plants.
But a recent Samsung-commissioned study said that the working conditions at its chip factories were safe and didn’t pose any health risk to employees.
Since 2011, Samsung has spent more than $90 million to improve working conditions at its factories, according to a spokesman.
Kwon said the announcement is an official response to a lawmaker’s suggestion.
Rep. Sim Sang-jung of the minor opposition Justice Party recently said she was seeking to propose a bill urging Samsung to apologize and compensate the affected persons.
Samsung is waiting for details on how to compensate the interested parties from Banolim and Sim.
Banolim and the Justice Party welcomed the moves by the consumer electronics giant.
“We welcome the announcement by Samsung. The Justice Party will remain as a sincere advisor to help Samsung get trust and respect from the people of Korea. This is a starting point for us to address Samsung leukemia-related issues,” said the lawmaker in a separate statement.
She said she will talk with Samsung management to set up a new coordination body to fix establish the modalities of compensation.