[Alpha Biz= Paul Lee] Seoul, August 28, 2025 — South Korea’s Ministry of Environment has imposed a record fine of KRW 176.1 billion (approx. USD 130 million) on HD Hyundai Oilbank for illegally discharging wastewater containing phenol, a Group 1 carcinogen, at levels exceeding legal limits.
The fine, levied under Article 12 of the Act on the Control and Aggravated Punishment of Environmental Offenses, marks the largest ever penalty imposed for an environmental crime in Korea. By comparison, in 2021 the ministry fined Youngpoong Corporation’s Seokpo Smelter KRW 28.1 billion for illegally releasing cadmium into the Nakdong River.
Authorities uncovered the violations through a series of investigations, beginning with a raid by South Chungcheong Province in 2021, followed by probes by special environmental investigators and prosecutors.
According to the ministry, HD Hyundai Oilbank falsely reported phenol levels in its wastewater to provincial authorities in order to avoid installing proper treatment facilities. Between October 2019 and November 2021, the company discharged wastewater containing phenol above the permitted threshold of 1 mg per liter directly into its affiliate HD Hyundai OCI without treatment.
Investigators also found that from October 2016 to November 2021, the company supplied untreated industrial water to another subsidiary, HD Hyundai Chemical.
Through these practices, HD Hyundai Oilbank is estimated to have avoided approximately KRW 45 billion in facility expansion costs for its wastewater treatment plant.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
