National Pension Service Invests 70 Billion Won in 'Gaseupgi Salgyunje' Company

Investment in Oxy Reckitt Benckiser

The National Pension Service (NPS) is owed more than 2 billion KRW in reimbursement from companies related to the humidifier disinfectant incident, but it has been revealed that the NPS has invested 70 billion KRW in one of these companies.

The family members of the victims of the 'humidifier disinfectant' incident.
[Photo by Yonhap News]

According to data on the reimbursement status related to the humidifier disinfectant incident received by Kim Young-joo, a member of the National Assembly's Health and Welfare Committee from the Democratic Party of Korea, from the NPS on the 20th, as of July this year, the NPS holds approximately 70 billion KRW worth of stocks in Oxy Reckitt Benckiser.

Oxy Reckitt Benckiser, the Korean branch of the British household goods company Reckitt Benckiser, is the company that caused the greatest number of victims in the 'humidifier disinfectant' disaster that occurred in 2011.

Previously, during last year's national audit, it was revealed that the NPS had invested 300 billion KRW in Oxy Reckitt Benckiser, leading to demands that the pension fund exclude investments in companies related to the humidifier disinfectant incident.

In response, the NPS recently reported to the National Assembly on the 'correction and handling results and future plans,' stating that as of June this year, it has significantly reduced investment amounts by limiting the investment ratio in companies related to the humidifier disinfectant incident to below the benchmark (BM, standard yield rate), but it still maintains substantial investments.

Currently, regarding survivor and disability pensions paid to victims and their families of the humidifier disinfectant incident, the NPS has not received 2.305 billion KRW in reimbursement from 10 offending companies (based on overlapping amounts due to joint liability).

The deadline for companies to pay the reimbursement was June of this year, but payment performance was poor. Breaking down the total reimbursement amount (2.43 billion KRW) by company, Oxy Reckitt Benckiser accounted for the largest share at 64% (1.546 billion KRW), followed by Aekyung Industrial with 17% (408 million KRW).

As the offending companies have not paid the reimbursement, the NPS is currently pursuing three lawsuits, including one against the headquarters of Oxy Reckitt Benckiser.

Regarding this, Assemblyman Kim Young-joo said, "It has been 12 years since the humidifier disinfectant disaster became known to the world, yet the offending companies still evade responsibility and obligations. Despite this situation, the National Pension Service continues to invest in these companies. There is a need to establish comprehensive investment restriction standards for offending companies even at this point."

Relatives of victims in the 'humidifier disinfectant' case protesting.
[Photo by Yonhap News]

The humidifier disinfectant incident occurred in 2011 when users died or suffered lung diseases, non-lung diseases, and systemic diseases due to humidifier disinfectants contained in the spray liquid of humidifiers. According to the Special Investigation Commission on Social Disasters as of July 17, 2020, 6,817 damage reports were filed with the Ministry of Environment, and the number of deaths was counted at 1,553.