Prosecutors question complainant over alleged omission of cleanup costs at Young Poong’s Seokpo smelter

A representative of residents in Bonghwa County has been questioned by prosecutors over allegations that Young Poong omitted environmental cleanup costs linked to its Seokpo smelter.

The Upper Nakdong River Environmental Damage Residents’ Committee said its representative, Shin Gi-seon, appeared at the Seoul Central District Prosecutors’ Office on Aug. 31 for questioning as the complainant. The committee filed a complaint in January against Young Poong and an adviser identified by the surname Jang, alleging violations of the Capital Markets Act and the External Audit Act.

The committee claims Young Poong recorded the costs of environmental cleanup work below their actual level in its financial statements. It said the company reported a first-half 2024 net profit of about 25.3 billion won, but would have posted a loss of more than 70 billion won if roughly 100 billion won in allegedly omitted cleanup costs had been included.

The residents argue that the company failed to properly disclose important information that could affect investors’ decisions. The allegations have not been established as fact.

Police are also reopening a separate investigation into suspected heavy-metal contamination of the Nakdong River involving Young Poong. A Seoul Metropolitan Police Agency review committee recently transferred the case from Gangnam Police Station to the agency’s regional investigative unit after the original investigation ended with a decision not to refer it for prosecution. The residents’ committee had challenged that decision, saying the adviser named in its complaint had never been questioned, and also sought a review of the handling of the case.