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Clean Air Conservation Act | Company Y Officers and Employees Fined for Violating Environmental Law

Company Y and its respective officers and employees, who were indicted on charges of violating the Clean Air Conservation Act and the Water Environment Conservation Act, were sentenced to fines.

Through this case, we will examine the circumstances of Company Y's violations of environmental law.

CONTENTS
  • 1. Company Y, Which Violated the Clean Air Conservation Act and Other Laws: What Happened?
    • - Violation of the Clean Air Conservation Act: Failure to Report Air Pollutant Emission Facilities
    • - Violation of the Water Environment Conservation Act: Failure to Install a Cumulative Flow Meter for Water Use
  • 2. Company Y, Which Violated the Clean Air Conservation Act, Cited for 76 Environmental Law Violations Over 10 Years
    • - What Are the Levels of Punishment for Violating the Clean Air Conservation Act?
  • 3. Compliance with the Clean Air Conservation Act: Why an Attorney Experienced in This Field Is Needed

1. Company Y, Which Violated the Clean Air Conservation Act and Other Laws: What Happened?

Company Y, which violated the Clean Air Conservation Act

Company Y, a nonferrous metal smelting business at which violations of the Clean Air Conservation Act were detected, and its officers and employees were punished with fines.

Company Y received the above punishment for violation of the Clean Air Conservation Act and violation of the Water Environment Conservation Act.

We will examine in detail the specific facts of the violations and the issues as determined by the court.

Violation of the Clean Air Conservation Act: Failure to Report Air Pollutant Emission Facilities

A, who oversaw the environmental and safety affairs of Company Y's smelter, was found to have installed and operated crushing facilities and storage facilities, which are air pollutant emission facilities, from 2001 to 2019, and to have continued operations without reporting them to the competent authority.

Accordingly, on April 9, 2025, the court sentenced A to a fine of 5 million won and Company Y to a fine of 3 million won, respectively.

Counsel for A and Company Y argued that the facilities in question did not constitute air pollutant emission facilities under the statute, but the court did not accept this argument.

Article 8 of the Enforcement Decree of the Clean Air Conservation Act defines facilities that emit air pollutants as ‘emission facilities’ and specifies that certain categories of facilities are subject to reporting.

The court determined that the crushing facilities and storage facilities in question, given their structure and manner of use, could generate harmful substances such as dust, and that workers could actually be exposed to these substances, and therefore constituted ‘air pollutant emission facilities.’

Accordingly, the court held that the failure to report to the competent authority in advance constituted a clear violation of the reporting obligation, and that this also ran counter to the legislative purpose of the statute, namely the protection of air quality and of workers' health.

The court further stated that, although A had previously been punished for similar violations, it imposed fines after taking into account that the impact on the environment was relatively limited and that the relevant facilities were subsequently installed lawfully.

Violation of the Water Environment Conservation Act: Failure to Install a Cumulative Flow Meter for Water Use

B, the head of Company Y's environmental management team, who was indicted on charges of violating the Water Environment Conservation Act, was sentenced to a fine of 500,000 won.

A workplace that discharges wastewater above a certain volume must install a cumulative flow meter capable of automatically measuring the discharge volume, and a failure to install a cumulative flow meter is punishable under the Water Environment Conservation Act by a fine not exceeding 1 million won.

Nevertheless, from December 2019 to April 2020, B used rainwater to cool slag without installing a flow meter, thereby resulting in a violation of the law.

2. Company Y, Which Violated the Clean Air Conservation Act, Cited for 76 Environmental Law Violations Over 10 Years

Company Y, which was punished with a fine for violating the Clean Air Conservation Act, was found to have been subject to sanctions on multiple occasions for environmental pollution incidents and violations of environmental law even before this case.

From 2013 to 2024, Company Y's violations of environmental statutes totaled 76 cases, of which 25 led to criminal accusations.

Representative examples are as follows.

-April 2019: Cadmium exceeding the standard level by 4,578 times was detected in a stream near the Nakdong River, resulting in a penalty surcharge of 28.1 billion won. The company subsequently lost a lawsuit seeking revocation of the Ministry of Environment's penalty surcharge imposition, and the penalty surcharge was upheld as lawful.
-April 2020: An additional 11 violations of environmental law were detected, including the unauthorized installation of air pollutant emission facilities and the unauthorized removal of contaminated soil.

What Are the Levels of Punishment for Violating the Clean Air Conservation Act?

A violation of the Clean Air Conservation Act results in administrative dispositions and criminal punishment.

Where any of the following violations occurs in the course of operating facilities that emit air pollutants, the competent administrative agency may impose the following administrative dispositions.

∙Where facilities are operated by a prohibited method, such as fraudulent means or false representations
The operator may receive revocation of the permit to install the emission facilities, closure of the emission facilities, or an order to suspend operations for up to six months.

Of these, where a false permit, modified permit, or report, or a failure to comply with an order to suspend operations is detected, revocation or closure of the permit to install or modify the emission facilities is ordered.

∙Where facilities from which pollutants leak due to corrosion, wear, or the like are left unaddressed
An administrative fine not exceeding 2 million won is imposed.

∙Where the machinery or equipment of prevention facilities is out of order or damaged and is left unaddressed without justifiable grounds
An administrative fine not exceeding 2 million won is imposed.

∙Where facility operation records are falsely prepared or measurement results are not submitted
An administrative fine not exceeding 3 million won is imposed.

3. Compliance with the Clean Air Conservation Act: Why an Attorney Experienced in This Field Is Needed

Compliance with environmental law, including the Clean Air Conservation Act, goes beyond a mere legal obligation and is a necessary requirement for a company's sustainable management and for realizing ESG (environmental, social, and governance) values.

Violations of environmental law, such as the Clean Air Conservation Act, can lead to various risks, including a decline in social trust, the departure of investors, administrative dispositions, and criminal punishment, and in some cases may result in dispositions such as ▲imprisonment for up to 7 years, ▲a fine not exceeding 100 million won, ▲closure of emission facilities, or ▲an order to suspend operations.

However, because environmental regulations have a complex statutory structure and are frequently amended, it is difficult for a company to fully meet all legal requirements on its own.

It is therefore advisable to diagnose risks in advance through the advice of a 🔗corporate attorney well versed in environmental law, and to establish a framework that can respond effectively if a legal dispute arises.

At Daeryun Law Firm LLP, attorneys experienced in environmental law, working to support the stable business operations of companies, provide services including ▲responding to regulations on air, water quality, and waste, ▲advisory services on environmental permits and authorizations, ▲advance risk diagnosis for ESG management, and ▲customized consulting.

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