Mayor Lee Gang-deok of Pohang Issues Statement ... Earthquake Lawsuit Verdict and POSCO Miraeyeon Capital Region Branch Establishment

Pohang Earthquake, Trigger Earthquake Reconfirmed... Court Decision Recognizing Compensation for Mental Damage Welcomed

Expression of Regret Regarding POSCO Future Strategy, Hope for Responsible Attitude Toward National Balanced Development

Mayor Lee Kang-deok of Pohang City expressed his position on the first trial verdict of the Pohang earthquake damage compensation lawsuit and the establishment of a large-scale metropolitan branch of POSCO Future Technology Research Institute on the 17th.

Mayor Lee Gang-deok and City Council Chairman Baek In-gyu are expressing their positions on the first trial verdict of the Pohang induced earthquake damage compensation lawsuit and the establishment of a large-scale metropolitan branch of POSCO Future Technology Research Institute at the city hall briefing room on the 17th.

On the same day, Mayor Lee visited Baek In-gyu, chairman of the Pohang City Council, at the city hall briefing room and welcomed the court's decision to allow citizens who suffered mental damages from the earthquake lawsuit to receive compensation. He also stated that he would do his best to find support measures for citizens in the future, including operating a citizen guidance center.

Furthermore, he repeatedly urged POSCO Holdings to show responsible behavior for national balanced development and regional coexistence.

Regarding the first trial ruling by the Daegu District Court Pohang Branch on the 16th, ordering compensation of 2 to 3 million KRW to approximately 47,000 earthquake-affected citizens as plaintiffs, Mayor Lee said, “Although it is insufficient compared to the severe damage experienced by the citizens, it is fortunate that the state has acknowledged its liability for mental damages.”

He expressed gratitude once again to everyone who helped clarify that the earthquake was induced, noting that this outcome was achieved because Pohang City actively supported the launch and activities of the ‘Pohang Earthquake Geothermal Power Joint Research Group’ composed of citizens and earthquake experts in April 2018, and through citizens’ efforts contributed to proving the earthquake was induced. This became a key basis for overcoming the Pohang earthquake damage up to this court ruling.

He especially emphasized that the city would do its utmost to support the complete recovery of citizens’ damages in the future.

Mayor Lee stated, “Since there is a concern that a flood of lawsuits against the state and exhausting legal battles may continue following this ruling, the government needs to implement special measures for collective compensation for mental damages.” He added, “Through legal consultation, we will do our best to devise support measures that local governments can provide, such as a citizen guidance center.”

He also expressed strong regret regarding the establishment of the metropolitan branch of POSCO Future Technology Research Institute and once again urged POSCO, a national enterprise, to demonstrate responsible behavior.

On February 25 last year, Pohang City and POSCO Group promised the 500,000 citizens of Pohang to establish the main office of the Future Technology Research Institute in Pohang and build a Pohang-centered operational system. However, the area and cost of the branch site to be established in the Wirye district of Seongnam are overwhelmingly larger than those of the Pohang main office, raising concerns that it will effectively serve as the main office.

Mayor Lee reiterated the need for active corporate efforts to overcome metropolitan concentration and the crisis of regional extinction and to achieve national balanced development.

He stated that balanced development is possible only when the central government, local governments, corporations, and universities all actively fulfill their roles for a sustainable Republic of Korea. In particular, he emphasized that corporations must have a strong sense of responsibility for regional development and national sustainability alongside profit pursuit, and that the willingness to relocate headquarters to local areas to revitalize regions is important.

Mayor Lee said, “To restore trust with Pohang citizens and achieve national balanced development, I hope the practical functions of the Pohang Future Technology Research Institute will be strengthened, and that POSCO will become a true leading company that considers the nation and society.” He added, “Pohang City will also actively cooperate and engage in dialogue to strengthen corporate competitiveness.”

Regarding the establishment of the POSTECH research-oriented medical school, he said, “Since this is a matter crucial to Pohang’s fate, we will do our best to gather all regional capabilities to attract it.”

Mayor Lee Kang-deok emphasized, “The establishment of the research-oriented medical school, which is being promoted as a priority based on Pohang’s differentiated biohealth infrastructure and capabilities, is essential not only for revitalizing the local economy and dramatically improving medical conditions but also for strengthening the global competitiveness of Korea’s biohealth industry.” He added, “We will unite the citizens’ earnest wishes and will for nurturing physician-scientists, which are indispensable for the development of the national bioindustry, through a pan-citizen urging resolution rally on the 27th, and together with Gyeongbuk Province, actively persuade the National Assembly and central government to ensure the establishment of the research-oriented medical school.”