In November 2024, the Good Corporate Governance Research Institute and the Citizens’ Coalition for Economic Justice filed the suit, arguing that the executives violated duties under the Commercial Act — including the duty of care and oversight — and caused losses to the company, citing the ministry’s imposition of a penalty.
The Seoul Central District Court’s Civil Division 30 rejected the plaintiffs’ claims and dismissed the case in full. The court said the plaintiffs failed to specify concrete illegal acts by Young Poong or its executives. It also found that the penalty alone was insufficient to establish liability for damages and that it was not adequately proven the company suffered actual losses.
Young Poong said it has pursued improvements across water, air and soil at its Seokpo smelter since establishing an “environmental improvement innovation plan” in 2019. It said it invested about 540 billion won through the end of last year and plans additional investment.
The company also noted it was found not guilty in both the first and second trials in a Water Environment Conservation Act case brought by the Daegu District Prosecutors’ Office in 2022, and the rulings became final after prosecutors did not appeal. The court said at the time it was difficult to conclude the defendants intentionally allowed cadmium to leak, and that they appeared to have worked step by step during their terms to improve smelter facilities and the surrounding environment.
A Young Poong official said the ruling again confirmed that some claims the company neglected water pollution or failed to pursue environmental improvements were “groundless speculation.” The official said the company would continue “thorough monitoring and proactive responses” to build a sustainable, eco-friendly workplace for more than 100 years.
* This article has been translated by AI.
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