HD Hyundai Oilbank has been fined over 170 billion won for illegally discharging factory wastewater containing phenol, a Class 1 carcinogen, at levels exceeding the legal limit.
On August 28, the Ministry of Environment announced that it would impose a fine of 176.1 billion won on Hyundai Oilbank in accordance with Article 12 of the Act on the Control and Aggravated Punishment of Environmental Crimes.
Fines for environmental crimes are calculated based on sales revenue for the three years preceding the time of detection, and this is the largest amount ever imposed. Previously, in 2021, the Ministry of Environment fined Youngpoong Seokpo Smelter 28.1 billion won for illegally discharging cadmium into the Nakdong River.
The illegal discharge of wastewater by HD Hyundai Oilbank was uncovered through a search and seizure by South Chungcheong Province in 2021, a special judicial police investigation by the Ministry of Environment, and an additional search and seizure by the prosecution.
The Ministry of Environment’s investigation found that HD Hyundai Oilbank falsely reported the phenol concentration in its wastewater to South Chungcheong Province, thereby receiving an exemption from installing phenol prevention facilities. From October 2019 to November 2021, the company discharged wastewater exceeding the phenol emission standard (1mg per 1L) to its nearby subsidiary, HD Hyundai OCI, without passing it through prevention facilities.
It was also confirmed that from October 2016 to November 2021, the company supplied untreated industrial water to another subsidiary, HD Hyundai Chemical. Through this process, HD Hyundai Oilbank was found to have saved approximately 45 billion won in wastewater treatment facility expansion costs.
In January 2022, HD Hyundai Oilbank voluntarily reported the related facts to the Ministry of Environment. However, the following year, executives and employees were indicted, and in February of this year, the CEO was sentenced to one year and six months in prison in the first trial at the Seoul Central District Court, with both former and current executives receiving prison sentences.
The Ministry of Environment stated, "We applied strict standards in this case, as the company put public health and safety at risk over a long period to reduce environmental costs." The ministry added, "We also took into comprehensive consideration the company’s voluntary reporting and cooperation with the related investigation in accordance with relevant laws and regulations."
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