[Press Release] NGOs from Korea and Indonesia file OECD complaint against POSCO International, National Pension Service and the Export-Import Bank of Korea

NGOs from Korea and Indonesia file OECD complaint against POSCO International for causing palm oil abuses and National Pension Service and the Export-Import Bank of Korea for financing the abuses
Seoul, December 12, 2019 – Today Korean Transnational Corporations Watch (KTNC Watch), Yayasan Pusaka (Indonesia), WALHI Papua (Indonesia), and SKP KAMe (Indonesia), filed a complaint at Korea’s National Contact Point (NCP) for the OECD (Organization for Economic Cooperation and Development) against POSCO International and two Korean public financial institutions, the Korean National Pension Service (NPS) and the Export-Import Bank of Korea (KEXIM).
The complaint concerns POSCO International, the controlling owner, and the NPS and KEXIM, the financers of POSCO International. The complaint is related to the adverse impacts caused by the operation of the palm oil company PT. Bio Inti Agrindo (PT. BIA), a subsidiary of POSCO International in Papua, Indonesia. The adverse impacts include large-scale deforestation of tropical rainforest and loss of biodiversity; failure to implement Free, Prior and Informed Consent (FPIC) with the customary owners of the land in the process of developing the plantation; and violation of local residents’ right to water by degrading the Bian River water quality.
The complaint is supported by evidence of misconduct by PT. BIA, which is owned by POSCO International. POSCO International has not addressed the deforestation carried out by PT. BIA or put in place policies to prevent further deforestation. Allegations were repeatedly made in regard to violation of the right to Free, Prior and Informed Consent (FPIC), but POSCO International failed to provide a proper remedy to stakeholders. Due to the degradation of the water quality of the Bian River, local residents can no longer use the water from the river for their daily activities or drinking. However, no measures were taken to ensure that the right to water of the local residents is protected.
Under the OECD Guidelines for Multinational Enterprises (the Guidelines hereinafter), corporations have a duty to respect human rights and address adverse impacts when they occur. Corporations should avoid causing the adverse impacts and should provide remedies when the adverse impacts occur. However, measures taken by POSCO International serve as neither remedies for the harms occurred nor due diligence policies to prevent or mitigate further adverse impacts.
Meanwhile, the Guidelines require the corporations to seek to prevent or mitigate adverse human rights impacts directly linked to financial services by a business relationship. NPS, as an institutional shareholder of POSCO International, should engage with the investee companies damaging shareholder value, but NPS has failed to meaningfully engage with POSCO International despite its awareness on the adverse impacts. KEXIM also failed to review the reasonably foreseeable risk in the palm oil industry when it decided to provide the loans to POSCO International’s subsidiary in Papua.
The Norwegian Government Pension Fund and the Dutch pension fund ABP have divested from POSCO International on the grounds of deforestation, and the Korean media has covered the relevant issues in relation to PT. BIA’s operation. Despite this the NPS continues to hold a more than five percent share in POSCO International, and KEXIM has provided loans for PT. BIA’s operations.
Y.L. Franky, the Director of Yayasan Pusaka stated, “The palm oil industry creates many difficulties for the indigenous people of Papua. The forest they have depended on is disappearing and social conflicts due to land disputes are on the increase.” Pastor Anselmus Amo, the Director of SKP KAMe reiterated that the local residents have suffered since PT. BIA began operating the plantation and further explained, “Daily life has been made particularly difficult for local residents by the now polluted river water. However, local residents do not know where to go to raise these issues.” Shin Young Chung, KTNC Watch lawyer also pointed out, “Well-known pension funds have withdrawn their investments, and public financial institutions in Korea should also adopt policies to consider environmental and social impacts of the business.” She hopes the NCP will make a decision that will bring actual change to the behaviour of POSCO International and the financers.
The complainants request that the Korean NCP facilitate dialogue to persuade POSCO International to acknowledge the deforestation they have caused and provide the remediation. They also call on POSCO International to adopt and publish a comprehensive group-wide cross-commodity No Deforestation, No Peat, and No Exploitation (NDPE) policy to prevent further damages. It is also requested that POSCO International implement FPIC in their operation and ensure the right to water of the local communities relying on the Bian River.
They also request that the NPS engage with POSCO International to use their leverage and consider deforestation and infringement of the rights of indigenous people in their policies for socially responsible investment. The complainants request KEXIM to adopt policies for reviewing environmental and social risks in developing natural resources overseas and refrain from providing further loans to support PT. BIA’s operations that are causing adverse impacts.
Various other NGOs, such as WALHI Kalimantan Tengah (Friends of the Earth Indonesia), Milieudefensie (Friends of the Earth Netherlands), Friends of the Earth Melbourne, Friends of Earth U.S. support the filing of this complaint against POSCO International, NPS and KEXIM by KTNC Watch, Yayasan Pusaka, SKP KAMe and WALHI Papua.
Note for editors
For more information or interview requests you can contact:
KTNC Watch: Shin Young Chung (Attorney-at-Law), [email protected], +82-2-3478-0529
Yayasan Pusaka: Franky Samperante (Director), [email protected], +62-21 -7892137
SKP KAMe: Father Anselmo Amo (Director), [email protected]
WALHI Papua: Aiesh Rumbekwan (Executive Director), [email protected], +62 813 4452 4394
※You can download the full report here













▲ 팜유 농장이 조성되며 파괴된 숲 ⓒMighty Earth[/caption]
▲ 포스코 인터내셔널의 팜유 농장이 들어선 뒤 오염 된 비안강 ⓒMighty Earth[/caption]
▲ 포스코 인도네시아 팜유 농장으로 영향을 받게 된 마을에 대해 설명하는 한 주민 ⓒ환경운동연합[/caption]
▲ 2017년 포스코대우의 인도네시아 열대우림 파괴 중단을 촉구하는 환경운동연합의 기자회견에서 발언하는 국제 환경단체 마이티(Mighty)의 글렌 유로윗츠 회장. 희귀 및 멸종 동식물의 서식처이자, 기후변화를 막는 방패인 우리의 파푸아 숲을 지켜야 한다고 강조했다. ⓒ솜한새[/caption]
▲ OECD 한국연락사무소에 제출한 진정서[/caption]





포스코인터내셔널의 인도네시아 파푸아 팜유 플랜테이션 PT BIA 전경 ⓒ Mighty Earth[/caption]
▲ 숲이 우거진 원래의 열대우림(좌)과 포스코 팜유농장(우)의 대비된다. 파푸아는 지구에서 세 번째로 큰 열대우림이다. ⓒMighty Earth[/caption]
▲ 포스코의 PT BIA 농장이 들어선 뒤 오염 된 비안(Bian) 강 ⓒMighty Earth[/caption]
▲ 네덜란드 공적연금이 인도네시아 열대림 파괴 기업 포스코에 투자한 것의 문제를 지적한 방송. 이후 네덜란드 공적연금은 포스코에 대한 투자를 철회했다.[/caption]
▲ 파푸아섬에 서식하는 나무타기캥거루(Tree Kangaroo). 파푸아섬의 열대우림은 생물다양성이 높으며 희귀 동식물이 다수 서식하고 있다. ⓒMighty/Richard Ashurst[/caption]

▲ 브라질 원주민 빠예 이사카 후니쿠인 ⓒDouglas Freitas / Friends of the Earth Brazil[/caption]
▲카시크 안토니오 호세(Cacique Antonio Jose)가 지역 산업지구에 접근할 수 있는 문을 열고 있다. ⓒDouglas Freitas / Friends of the Earth Brazil[/caption]
▲ 아마존에 조성되는 소 농장 ⓒDouglas Freitas / Friends of the Earth Brazil[/caption]
▲ 아마존 원시림을 파괴하고 있는 목축업에 대해 비판하는 원주민 안토니오 호세 ⓒDouglas Freitas / Friends of the Earth Brazil[/caption]
▲ 아마존 숲 속 세 곳에서 전기톱에 사용되는 휘발유와 불에 탄 기름이 담겨져 있는 병을 발견했다. ⓒDouglas Freitas / Friends of the Earth Brazil[/caption]
▲ 600헥타르의 숲이 파괴된 모습을 보고 있는 원주민 ⓒDouglas Freitas / Friends of the Earth Brazil[/caption]
▲ 화재와 땅 점유의 증가 정도를 분석하기 위해 사용하는 지도를 보여주고 있는 원주민들 ⓒDouglas Freitas / Friends of the Earth Brazil [/caption]
▲ 고속도로에서는 통나무로 가득 찬 트럭을 많이 발견할 수 있다. ⓒDouglas Freitas / Friends of the Earth Brazil [/caption]
c. Reuter Mohamed Azak[/caption]
c. Reuters Mohamed Aza[/caption]
c. Diego Ibarra Sanche[/caption]

ⓒBBC보도 <코린도: 아시아 최대 열대우림 파괴 현장.. 한국 기업의 팜유개발 실태> 영상 스크린샷[/caption]
ⓒ<마지막사냥>보고서 중 코린도 부분 발췌[/caption]


환경운동연합을 비롯해 전 세계 모든 지구의벗 단체들이 이 소송에 연대하며, 응원을 보내고 있다, 2020[/caption]


전세계 수산자원 어획 수준 변화 추이 (출처: Stop Funding Overfishing)[/caption]



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