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KTNC Watch et al vs. POSCO

Case overview

Date filed 12 December 2019
Current status Pendiente
Issue POSCO's violations in palm plantation in Papua
Summary of the case On 12 December 2019, KTNC Watch, PUSAKA, SKP-KAMe, and WALHI Papua filed a specific instance against POSCO International, the National Pension Service (NPS), and the Korean export import bank (KEXIM) at the Korean NCP. The complaint argues that POSCO International has breached the OECD Guidelines by causing deforestation and loss of biodiversity, lack of FPIC, and infringement on the right to water for its operation of the palm oil plantation in Papua.

The complaint argues that environmental and social policies and measures taken by POSCO International are not sufficient to the due diligence standards under the Guidelines. POSCO International's continuation of it's business without acknowledging the massive destruction of the tropical rainforest and the infringement of the rights of indigenous people amounts to a violation of the Guidelines.

The complainants are seeking the Korean NCP's good offices to encourage POSCO International to take several steps, including to:
- Acknowledge the deforestation they have caused and provide the remediation;
- Adopt and publish a comprehensive group-wide cross-commodity "No Deforestation, No Peat, and No Exploitation" (NDPE) policy;
- Declare a group-wide moratorium on land clearing and peatland development publicly; and
- Implement FPIC in their operations and ensure the right to water of the local communities relying on the Bian River.
Developments/Outcome On 17 March 2020, the Korean NCP issued an initial assessment accepting the complaint for good offices. The NCP accepted the complaint regarding POSCO and the NPS. The NCP also accepted the complaint KEXIM. The NCP clarified that in this matter, KEXIM could be considered a multinational enterprise covered by the OECD Guidelines because 1) it has oversea branches in the United Kingdom, Indonesia, and Vietnam; 2) in this case, its funding of POSCO was not related to any official development assistance projects; and 3) the financial services it provided to POSCO, providing loans and taking interest, were commercial in nature like those of a typical financial institution. The NCP also found the complaint satisfied the other Guidelines' admissibility criteria.
Relevant OECD Guidelines
Case keywords Los derechos humanos, Medio Ambiente

NCP Information

NCP name National Contact Point Korea
NCP address Seoul, Korea, Republic of
NCP website http://www.ncp.or.kr/jsp/kcab_ncp/intro_ncp.jsp
Other NCPs involved

Complainants

ONG

Company Information

Company responsible POSCO
Company address
Company website
Company in violation POSCO
Country of operations Indonesia
Other companies involved

Timeline of developments

Date Actor Action Description Document
17 March 2020 National Contact Point Korea aceptar Initial assessment issued by Korean NCP accepting complaint download pdf (271Kb)  
12 December 2019 Korean Trans National Corporations Watch presentar Specific instance filed to the Korean NCP. download pdf (9740Kb)  
12 December 2019 Korean Trans National Corporations Watch comunicado de prensa Press release from KTNC Watch, PUSAKA, SKP-KAMe, WALHI Papua. download pdf (65Kb)  
12 December 2019 Korean Trans National Corporations Watch informe Report by KTNC Watch, PUSAKA, SKP-KAMe and WALHI Papua regarding POSCO''s activities in Papua, Indonesia. download pdf (3217Kb)  

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