Compensation Plan

Humidifier Sanitizer

Through its Compensation Plan, Oxy RB provides Oxy HS Category 1 and 2 Victims from Rounds 1 and Round 2 (those categorized by the Korean government in its first two rounds of potential victim assessment as suffering, or having suffered, lung damage which was “almost certainly” (Category 1) or “highly possibly” (Category 2) a result of their use of Oxy RB’s HS product) with a remedy that reiterates its apology.  A further Compensation Plan was launched on July 10, 2017 for Category 1 and 2 victims from Round 3 whose categorisation was announced on or before 27 March 2017.

The Compensation Plans respect the sensitivities of individual victims and their families, provide fair compensation without delay, impose the minimum burden on claimants and provides access to independent advice and review.

 

  1. Oxy RB’s Compensation Plans were developed based on consultations with Oxy HS victims in meetings, in groups and on individual occasions at the office of Oxy RB or through home visits. Oxy RB endeavored to listen to the voices and understand the pain and suffering of the victims, as well as to complete the Compensation Plans in a transparent way which reflected the views of the victims and their families.
  2. Oxy RB announced its Compensation Plan for Category 1 and 2 Oxy HS victims from Rounds 1 and 2 on July 31, 2016. On July 10, 2017, it launched a further Compensation Plan for Category 1 and 2 victims from Round 3 whose categorisation was announced on or before 27 March 2017. The Compensation Plans are based on the core principles of Respect, Fairness, Transparency and Speed.
  3. Compensation for Category 1 and 2 Oxy HS victims categorized in Rounds 1 and 2 and in Round 3 up to 27 March 2017 is being provided as follows:
    • Oxy RB offers a lump compensatory sum in respect of mental distress (including child potential and family consolation), as well as compensation to reflect past expenses, lost income, certain legal expenses and interest. Additional amounts are available where there is more than one victim in a family.
    • Compensation proposals for victims living with the ongoing effects of the Oxy HS product include a proposed provision to cover future HS related medical costs and care needs.
    • 99% of Category 1 and 2 Oxy HS victims from Rounds 1 and 2 had registered to participate in the Compensation Plan as of January 31, 2017 and 89% have been paid.
    • Recognizing the seriousness of the HS issue, and the fact that the process for resolving was likely to take time, in Spring 2014, Oxy RB established a KRW 5 billion Humanitarian Fund to provide assistance to those who have suffered as a result of the HS issue. In May 2016, Oxy RB committed a further KRW 5 billion to the Humanitarian Fund.
  4. The Oxy RB Compensation Plan for Category 1 and 2 victims from Rounds 1 and 2 closed for registration on 31 January, 2017.  Only 1 of the potentially eligible victims did not register. 

Detailed Information

What compensation can be claimed?

Based on the consultations with the victims in meetings, in groups and on individual occasions at the office of Oxy RB or through home visits, where it listened to the voices and sought to understand the pain and suffering of the victims, Oxy RB has put forward Compensation Plans that respect the individual needs of Oxy HS Category 1 and 2 victims from Round 1, Round 2 and Round 3 victims categorised on or before March 27, 2017.

Oxy RB offer to compensate in respect of mental distress (including child potential and family consolation), past expenses, lost income, certain legal expenses and interest. In cases of death or severe injury of children, the lump sum will be KRW 1 billion. Oxy RB will also offer an additional amount where there is more than one victim in a Family.

Compensation Plans by HS Companies

OXY RB

Announced Compensation Plans established based on the four Core Principles of Respect, Fairness, Transparency, and Speed and reflecting the views of victims and families on July 31, 2016 (for Category 1 and 2 Oxy HS victims from Rounds 1 and 2) and on July 10, 2017 (for Category 1 and 2 Oxy HS victims from Round 3 categorised on or before March 27, 2017) and formed a Care Manager Team to support victims through the compensation process. The Compensation Plan for Category 1 and 2 Oxy HS victims from Rounds 1 and 2 began accepting claims registrations from August 1, 2016 and closed for registration on 31 January, 2017. The Compensation Plan for Category 1 and 2 Oxy HS victims from Round 3 categorised on or before March 27, 2017 began accepting claims registrations from July 10, 2017.

Lotte Mart 

Offered an apology and pledged to form an organization responsible for compensation, review claims and criteria, and raise KRW 10 billion for compensation. Announced that it would begin its discussion on compensation with the victims whose damage is confirmed to be caused by LotteHS upon the completion of the prosecutors’ investigation

Homeplus

Vowed to establish an independent organization participated by external experts from all walks of life for objective decision-making and to collaborate with government agencies to provide proper compensation

Results of Government Verification on HS Damage Claims

Who can make a claim and how?

Oxy RB met with as many Victims and their Families as possible during the consultation processes for its Compensation Plans, as well as other stakeholders, such as Government and representatives of certain victim groups. This included approximately 80% of the 183 Category 1 and 2 Oxy HS victims or their Families from Rounds 1 and 2, and approximately 65% of the 52 Category 1 and 2 Oxy HS victims or their Families from Round 3 who were categorised on or before March 27, 2017. Oxy RB continued its efforts to reach many of the remaining Victims and their Families so they were aware of the Compensation Plans. When the Compensation Plan for Category 1 and 2 Oxy HS victims from Rounds 1 and 2 closed to registrations on 31 January 2017, only 1 potentially eligible victims had not registered.

Details of the Compensation Plans and the Application for Compensation forms can be found on the Oxy RB Web site (www.oxyrb.co.kr) and the forms can be submitted via mail (to the postal address provided on www.oxyrb.co.kr) or email (care@oxy.co.kr).

Upon registering, each victim is contacted by the Care Manager team including to help with the Compensation Process including necessary documentation and explaining the Compensation Offers according to the situation and needs of each victim.