$1 billion in damages to be decided in Korea’s largest class action suit soon

An upcoming ruling on a significant class-action lawsuit in Korea is expected to have far-reaching implications. Residents of Pohang, North Gyeongsang, have filed a lawsuit seeking government compensation amounting to 1.5 trillion won ($1.04 billion) for the emotional damages caused by the 2017 human-made earthquake. This earthquake, believed to have been triggered by a geothermal power project initiated by the government, has had a profound impact on the residents of Pohang.

The Daegu High Court will deliver its ruling on May 13 in a case involving 112 Pohang residents who are seeking justice for the emotional distress they endured as a result of the earthquake. A government-led research panel confirmed in 2019 that the geothermal project was responsible for triggering the earthquake, leading residents to demand compensation for the suffering they experienced.

In an initial ruling by the Pohang branch of the Daegu District Court in November 2023, it was decided that the government must compensate residents with varying amounts based on their proximity to the earthquake events. Those who experienced both the magnitude 5.4 quake in November 2017 and the magnitude 4.6 quake in February 2018 were awarded 3 million won each, while individuals present during only one event received 2 million won.

The total compensation set by the lower court amounts to approximately 150 billion won, with the government and related parties mandated to pay damages to the plaintiffs. Following this ruling, a growing number of residents in Pohang have joined the lawsuit, with the current count reaching 499,881 plaintiffs, representing 96 percent of the city’s population at the time of the earthquake.

If the appeals court upholds the compensation range established by the lower court, the government could be facing a hefty payout of up to 1.5 trillion won. This case now stands as the largest class action lawsuit in Korean history both in terms of the number of plaintiffs involved and the compensation sought. As the ruling date approaches, local officials and civic groups in Pohang are closely monitoring the situation.

Pohang Mayor Lee Kang-deok, along with other prominent figures, has emphasized the significance of the forthcoming ruling as a means to determine the government’s responsibility in addressing the catastrophic effects of the 2017 earthquake. They have called for a fair and just ruling that acknowledges the link between the geothermal project and the earthquake, reflecting the reality of the victims’ suffering.

In response to the impending ruling, the Pohang Earthquake Citizens’ Countermeasure Headquarters has been actively mobilizing support within the community. They have organized a signature campaign appealing for a fair decision that considers the perspective of the earthquake victims. Signature forms have been distributed to numerous organizations and institutions throughout Pohang, with efforts to collect signatures from individuals and households through various channels, including online petitions.

The citizens of Pohang are urged to unite in reclaiming their rights lost due to the induced earthquake, emphasizing the importance of active participation in seeking justice and fair compensation. The community’s collective voice and support are vital in pushing for a ruling that acknowledges the extent of the victims’ suffering and holds the government accountable for its role in the tragic events of 2017.