Gyeongbuk Province Conducts On-Site Inspection of Seokpo Smelter Operation Suspension Compliance: "Strict Action on Environmental Pollution, Minimizing Regional Economic Damage"

Gyeongbuk Province announced on the 3rd that it has begun on-site inspections to verify the proper compliance with the 58-day suspension of operations administrative order imposed on Yeongpung Co., Ltd.'s Seokpo Smelter from February 26 to April 24.

This order follows the detection of violations of the Water Environment Conservation Act by the Ministry of Environment's Central Mobile Inspection Team in April 2019. Yeongpung filed a cancellation lawsuit against the suspension order issued by Gyeongbuk Province in December 2020, but on October 31 of last year, the Supreme Court upheld the government's victory, leading to this enforcement action.

Seokpo Smelter, Bonghwa-gun, Gyeongbuk

During the administrative suspension period, Gyeongbuk Province plans to verify compliance by checking whether facilities are operating, as well as inspecting electricity and water meters. However, essential facilities for emergency situations, such as environmental pollution and accident prevention, will remain operational.

Production activities other than essential operating facilities will be strictly limited to thoroughly monitor compliance with the suspension order. If treated water exceeding quality standards is detected, all discharge will be prohibited and re-treated to prevent environmental pollution even during the suspension period.

Gyeongbuk Province has been making various efforts to minimize the impact on the local economy related to the suspension order of Yeongpung Co., Ltd.'s Seokpo Smelter.

First, the suspension period was reduced by half from the original 3 months and 30 days to 1 month and 30 days. This decision was made through the government's Administrative Coordination Committee and reflects efforts to support normal business operations and minimize damage to partner companies and the local economy.

Second, Gyeongbuk Province coordinated with the Ministry of Environment to phase the timing of the suspension order. This measure aims to prevent confusion caused by sudden production stoppages and to support the company in faithfully implementing environmental improvement measures.

Accordingly, thorough preparations were made in advance for the suspension, including stockpiling products to ensure normal supply to major domestic and international clients, minimizing economic impact, and sequentially halting facility operations over a sufficient period to prevent safety accidents.

Third, during the suspension period, a separate personnel operation plan has been established for equipment improvement activities, environmental cleanup around the smelter, and in-house environmental and safety training, allowing most employees to report to work normally without significant salary reductions.

Additionally, approximately 22 billion KRW will be invested during the suspension period to actively carry out facility improvements. Environmental improvement projects, such as reinforcing air pollution control facilities at the lime plant and soil contamination cleanup on site roads, which are difficult to perform during operations due to safety reasons, will be implemented.

As a result, about 140 external construction workers will be deployed, which is expected to help mitigate the economic shock to partner companies and local small business owners.

Considering the suspension period and the preparation time for resuming operations, production disruptions are expected to last more than three months, with estimated damages exceeding 100 billion KRW.

However, the smelter side stated that the sufficient preparation period has minimized economic shocks, and they intend to use this administrative order as an opportunity to focus on environmental improvements and facility maintenance during the suspension period to transform into an eco-friendly and safe company.

Lee Kyung-gon, Director of the Climate and Environment Bureau of Gyeongbuk Province, said, “While strictly responding to illegal acts causing environmental pollution, the province will continuously strive to ensure that environmental protection and the local economy harmonize, enabling companies and local communities to coexist.”