SK Engineering & Construction and Korean Civil Society Task Force Team
Lead NCPKorea, Republic of (South)
Supporting NCP(s)
DescriptionSpecific instance submitted by a coalition of NGOs concerning an alleged non-observance of the Guidelines by SK Engineering & Construction
Theme(s)Disclosure, General policies, Human rights, Environment
Date28 Jun 2019
Host country(ies)Lao People's Democratic Republic
Industry sectorConstruction
StatusIn progress

Read the initial assessment published by the Korean NCP - 25 September 2019   

On 28 June 2019, the Korean Civil Society Task Force Team for the Xe-Pian Xe-Namnoy Dam Collapse, a coalition of seven NGOs (KTNC Watch, the People’s Initiatives for Development Alternatives (PIDA), the Energy & Climate Policy Institute, the People's Solidarity for Participatory Democracy, PEACE MOMO, the Korean Federation for Environmental Movement (KFEM), and the Korea Green Foundation) submitted a specific instance to the Korean NCP.

The submitters allege that Export Import Bank of Korea (KEXIM), SK Engineering & Construction (SK E&C), and Korea Western Power Co.,Ltd. (KOWEPO) did not observe the OECD Guidelines in relation to the collapse of a saddle dam built for the Xe-Pian Xe-Namnoy reservoir, which occurred on 23 July 2018. Specifically, the submitters allege that the accident was a result of the poor design and construction of the dam by SK E&C and that SK E&C and KOWEPO did not have proper emergency measures in place. Furthermore, the submitters allege that the companies did not provide accessible relief to impacted residents, did not meet with civil society groups, and rejected the results of the National Investigation Committee (NIC)’s investigation report. With regards to KEXIM, the submitters claim that it should have prepared safeguard measures to prevent and respond to environmental, social and human rights issues and that it does not have a disclosure policy.

On 25 September 2019, the Korean NCP published its initial assessment, in which it accepted the case for further examination, and included the responses of SK E&C, KOWEPO, and KEXIM to the submitters’ allegations. The Korean NCP will be contacting the parties to invite them to participate in the NCP’s good offices. KEXIM will not be involved in good offices, as the Korean NCP assessed that it is not subject to the Guidelines.