HD Hyundai Oilbank objects to indictment for discharging phenol
HD Hyundai Oilbank's Daesan factory in Seosan, South Chungcheong Province / Courtesy of HD Hyundai Oilbank
By Park Jae-hyuk
HD Hyundai Oilbank refuted the claims of prosecutors who indicted the oil refiner and its former and incumbent executives on Friday for the alleged release of wastewater containing higher-than-permitted phenol levels between 2016 and 2022.
The Joint Investigation Team for Environmental Crimes under the Uijeongbu District Prosecutors' Office announced that seven former and incumbent executives of HD Hyundai Oilbank and the corporate body, were indicted for alleged violations of the Water Quality and Aquatic Ecosystem Conservation Act.
“They released wastewater illegally to save 45 billion won ($34 million) needed for the construction of a wastewater disposal facility and around 200 to 300 million won needed every year for the supply of water to a subsidiary's factory,” the prosecutors said. “After multiple chemical experiments, we verified that phenol is discharged from chimneys, when wastewater evaporates.”
The prosecutors also said they found evidence of the company's attempts to conceal its illegality, as they searched Hyundai Oilbank's headquarters and summoned former CEO Kang Dal-ho late last year.
The indictment came after the Anti-Corruption & Civil Rights Commission was informed in 2021 of the years of discharge from HD Hyundai Oilbank's Daesan factory in Seosan, South Chungcheong Province. The Ministry of Environment sent the case to the prosecutors in 2022.
Last October, HD Hyundai Oilbank was also notified of the environment ministry's plan to fine it 150.9 billion won for its alleged illegal misuse of wastewater. To date, the size of the fine is larger than any other penalties that have been imposed on violators of environmental laws in Korea.
Asking the press to use the words “recycled water” instead of “wastewater,” the oil refiner viewed the indictment as unreasonable.
“HD Hyundai Oilbank sent purified water to its affiliate's facility inside the Daesan factory through pipes, and the affiliate released the recycled water in accordance with environmental regulations,” the company said. “The recycling also reduced the use of water and the total volume of wastewater.”
It also urged the regulators to focus more on checking whether or not factories discharge pollutants in the final phase of their manufacturing processes, rather than preventing them from sending recycled water to facilities of their affiliates.