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- Info
KTNC Watch et al vs. National Pension Service
Case overview
| Date filed |
12
December
2019
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| Current status |
Pending
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| Issue |
POSCO's violations in palm plantation in Papua
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| Summary of the case |
On 12 December 2019, KTNC Watch, PUSAKA, SKP-KAMe, and WALHI Papua filed a specific instance against the National Pension Service (NPS), POSCO International, and the Korean export import bank (KEXIM) at the Korean NCP. The complaint argues that NPS has breached the OECD Guidelines by failing to implement human rights due diligence to address the adverse impacts caused by its investee company, POSCO International.
NPS holds more than five percent of POSCO International's shares. The complaint argues that, despite its awareness of the harms caused by POSCO International, NPS has not used its leverage to influence POSCO International to cease the impact it is causing. NPS has thus failed to implement human rights due diligence in relation to the adverse impacts directly linked to its investment in POSCO International which is in violation of the Guidelines.
The complainants seek the Korean NCP's good offices to encourage NPS to exercise its leverage to engage with POSCO International in regard to the adverse impacts directly linked to them. NPS should also duly consider deforestation and infringement of the rights of indigenous in developing its socially responsible investment policies. |
| 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 National Pension Service. The NCP also accepted the complaint against 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 |
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| Case keywords |
Lien d’investissement
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NCP Information
Complainants
Company Information
Timeline of developments
| Date |
Actor |
Action |
Description |
Document |
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17
March
2020
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National Contact Point Korea |
accept |
Initial assessment issued by Korean NCP accepting complaint |
download pdf
(271Kb)
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12
December
2019
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Korean Trans National Corporations Watch |
file |
Specific instance filed to Korean NCP. |
download pdf
(9740Kb)
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12
December
2019
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Korean Trans National Corporations Watch |
press release |
Press release issued by KTNC Watch, PUSAKA, SKP-KAMe, and WALHI Papua. |
download pdf
(65Kb)
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12
December
2019
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Korean Trans National Corporations Watch |
report |
Report by KTNC Watch, PUSAKA, SKP-KAMe and WALHI Papua regarding POSCO's actions in Papua, Indonesia. |
download pdf
(3217Kb)
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