Sources from the prosecution said they have found more details on how Oxy Reckitt Benckiser had used the toxic ingredient PHMG to produce the problematic humidifier disinfectant.

According to the prosecution, Oxy – which was formally renamed Reckitt Benckiser Korea -- had initially used a chemical called Priventol R80 as the main ingredient for Oxy Ssak Ssak until the late ’90s. The inhalation-toxicity test for the chemical proved that it was safe.

However, in 2000, the company reportedly decided to change the main ingredient to PHMG after Priventol R80 drew some complaints from customers for producing white substances and for its lack of cleaning power.

It was reportedly a raw material wholesaler named CDI that first recommended that Oxy use PHMG. CDI allegedly purchased the ingredient from SK Chemicals and handed them over to Oxy’s subcontractor manufacturing company Hanvit Chemical.

Oxy had reportedly asked CDI whether it had data for PHMG’s inhalation-toxicity test. Although PHMH was confirmed to be safe for physical contact, there had been no proof of its inhalation safety then.

Despite there being no data available, Oxy allegedly skipped the inhalation-safety test, launching sales of Oxy Ssak Ssak from October 2000, with the use of the phrase “safe for children” in its advertising.

The prosecution suspects that former Oxy CEO Shin Hyun-woo had known of such procedures and skipped the safety test to allegedly save money amid efforts to cut cost. The test cost about 300 million won ($258,000). The total size of the local humidifier disinfectant market amounted to around 1.5 billion won.
Oxy was also found to have injected at least 10 billion won into product advertisement every year.

According to the Financial Supervisory Service’s records, Oxy spent 1.08 billion won and 1.42 billion won in 1999 and 2000, respectively, around the time the company developed and unveiled the product. Oxy continued to sink about 10 billion won every year into advertisement and promotion, according to the data.

Meanwhile, the government is also in the hot seat after the environment minister attended a parliamentary meeting on Wednesday.

Minister Yoon Seong-kyu said that current regulations are enough to cover financial support for the victims and to ask for accountability from the involved companies.

“The special laws for the victims (that are pending) would require (more) taxes paid by the citizens. This needs ample public discussion and approval,” Yoon said during the National Assembly’s Environment and Labor Committee.

Current regulations for the victims, enacted in 2014, has covered the medical expenses and funeral service costs for victims. This amounts to around 2 billion won a year. The current rule, however, is only applicable for those whose health damages are officially recognized as “Category 1 and 2.” The compensation is currently paid by the government, which is in trial against 13 involved companies for reimbursement.

Civic groups and the main opposition parties have called for special regulations to allow financial support including medical expenses and the cost of care for those classified under “Category 3 and 4.”

Although those in Category 3 and 4 are known to have symptoms that are relatively lighter, many of them have died or received lung transplants, just like those classified in Category 1 and 2, argued the civic group Asian Citizen’s Center for Environment and Health.

“The government’s premise for covering the medical expenses is that it will claim the cost after it exercises the right to indemnity to the companies later. In order to do so, the government must file a lawsuit and win the case,” ACCEH director Lim Heung-kyu told The Korea Herald, calling for the government to step up and guarantee wider financial help.

The main opposition party urged the government to publicly offer an apology on Thursday.

“(The party) requests the administration to offer a public apology along with profound self-reflection. (We) demand that President Park Geun-hye express her stance over the case and reprimand the officials involved in the case,” said The Minjoo Party of Korea floor leader Rep. Park Jie-won.

By Lee Hyun-jeong (rene@heraldcorp.com)