State-led compensation for humidifier disinfectant victims begins: “Disputes over contributions must not block relief”

[Financial News] With the enforcement of the fully revised Special Act on Relief for Victims of Humidifier Disinfectants, the state-led compensation system has now gone into full operation. This marks the beginning of a state-centered effort to address compensation for victims of humidifier disinfectants, a longstanding social challenge.
However, a key task in making the system effective is ensuring that future disputes among companies over responsibility for contributions do not disrupt compensation for victims.
On the 8th, the Ministry of Climate, Energy and Environment signed the “Humidifier Disinfectant Compensation Implementation Agreement” with 15 companies, including Oxy Reckitt Benckiser, SK Chemicals, SK Innovation and Aekyung Industrial, that operate in the humidifier disinfectant business or supply its raw materials. Minister Kim Seong-hwan of the climate ministry and company representatives attended the event.
The agreement’s key aim is to secure, without disruption, the funds needed to compensate victims. The companies agreed to pay their required contributions diligently, while the climate ministry will work to secure budget funding for government contributions. The two sides will also cooperate to build a full-lifecycle chemical safety framework covering everything from raw materials to product disposal.
In particular, any differences over contributions or other matters will be resolved through mutual consultation within a consultative body. This arrangement is intended to manage conflicts that may arise as the contributions of individual companies are coordinated and to prevent delays in securing the funds.
It has been pointed out that for the launch of the state-led compensation system to lead to meaningful relief for victims, not only must compensation decisions be made, but payments must also be carried out smoothly.
A government official explained, “If the process of determining each company’s responsibility for contributions drags on or escalates into a dispute, the harm suffered by victims and bereaved families could worsen,” adding, “It is important to coordinate differences over the sharing of responsibility through the consultative body while ensuring that this process does not obstruct the diligent payment of contributions or the delivery of compensation.”
For now, the climate ministry expects the agreement to ensure that compensation funds are secured without disruption and ease the concerns of victims and bereaved families that compensation could be delayed. The agreement’s impact is also expected to become clearer in the coming processes of levying and collecting contributions and paying compensation.
Under the state-led compensation system that took effect on this day, victims seeking compensation may apply. After investigations into health impacts and the rate of loss of working capacity, among other matters, the Humidifier Disinfectant Compensation Deliberation Committee, which is under the prime minister, will make the final determination on whether compensation is awarded and how much.
Victims whose compensation has been approved may choose either to receive the full amount in a lump sum or to receive an initial payment excluding future medical expenses and then continue receiving payments for those expenses. To prevent an interruption in financial support between application and payment, existing recipients of relief benefits will continue to receive them until they receive compensation.
The climate ministry plans to estimate the total compensation amount based on the detailed compensation criteria and, on that basis, levy contributions on individual companies in the first half of next year.


[email protected] Kim Hak-jae Reporter