DISPUTE SETTLEMENT OVER TOXIC HUMIDIFIER

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The final draft on settling the dispute over deaths caused by toxic humidifier disinfectants could be annulled. Some corporations including Oxy are refusing to attend arbitration committee meetings over unfair liability claims. The arbitration committee offered to lower Oxy's liability, but the company has turned it down.

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Oxy rejected the final settlement draft on March 31. This is the firm's stance obtained by KBS. One of the reasons behind the rejection is unfair liability for damages among the involved companies. Oxy must pay 54 percent of the amount under the special law, but it claims it's unfair. Oxy says the liability of materials suppliers must also be taken into consideration. On April 19 the head of the arbitration committee met personally with the chief of Oxy Korea. The arbitration committee offered to reduce Oxy's liability by 11 percentage points, to 43 percent, which translates to as much as 100 billion won. The committee wanted to make up for the curtailed amount using contingency reserves.
The goal was to address opposition from other involved companies without cutting the amount of compensation. However, Oxy turned down that offer as well, and a week later announced its refusal to attend arbitration committee meetings. The company continues to take issue with what it perceives as excessive liability claims.

[Soundbite] Park Dong-suk(Head of Oxy-Reckitt Benckiser Korea(May 2)) : "If they promise to re-consider the matter from scratch, we won't oppose the extension of the arbitration committee."

An arbitration committee official says Oxy presented its own preconditions as if it had no plans to pay compensation to the victims in the first place.

[Soundbite] Song Ki-jin(Council for Victims of Humidifier Disinfectants) : "Those who have caused the most serious damage and sold the most products refuse to solve the problem because they have no intention whatsoever to deal with the issue."

When KBS asked why it rejected the offer to reduce liability, Oxy said its demand that the suppliers of raw materials also be held liable for the scandal was turned down, and that it has no plans to change its demands or make any concessions.