$1 billion in damages: Ruling on Korea's largest-ever class action suit just weeks away

An appeals court will rule next month on a $1.04 billion compensation lawsuit filed by Pohang residents regarding a 2017 earthquake.

Participants hold signs urging progress in the trial during a citizens' rally organized by the Pohang Earthquake Citizens' Countermeasure Headquarters and 120 social, religious and volunteer groups at Pohang Jungang Market in Pohang, North Gyeongsang, on Nov. 15, 2024. [YONHAP]

An appeals court will rule next month on a lawsuit filed by residents of Pohang, North Gyeongsang, seeking up to 1.5 trillion won ($1.04 billion) in government compensation for the 2017 human-made earthquake, an amount representing nearly half Pohang’s annual city budget.

The Daegu High Court will hand down its ruling on May 13 in a case involving 112 Pohang residents who sued the government for emotional damages caused by the quake.

A government-led research panel concluded in 2019 that a geothermal power project initiated by the government triggered the earthquake in 2017. Residents have argued that the government must pay damages for the emotional distress caused by its role in the project.

The Pohang branch of the Daegu District Court ruled in the first trial in November 2023 that the government must compensate residents 2 million to 3 million won each.

As a magnitude 5.4 earthquake strikes Pohang, North Gyeongsang, on Nov. 15, 2017, a building’s outer wall collapses onto parked cars along a roadside. [JOONGANG ILBO]

The court awarded 3 million won to residents who lived in Pohang during two major earthquakes — the magnitude 5.4 quake on Nov. 15, 2017 and the magnitude 4.6 quake on Feb. 11, 2018 — and 2 million won to those present during only one event.

Per that ruling, the government and related parties were required to pay roughly 150 billion won in damages to participating plaintiffs.

Following the first ruling, a large-scale civic movement erupted in Pohang, with many residents lining up for hours to join the lawsuit. The number of plaintiffs has since grown to 499,881, equivalent to 96 percent of Pohang’s population at the time of the earthquake.

National Assembly Speaker Chung Sye-kyun visits the Daeseong Apartment complex, a heavily damaged site in Pohang, North Gyeongsang, after a magnitude 5.4 earthquake and a 4.6 aftershock, and inspects the damage on Feb. 13, 2018. [YONHAP]

If the appeals court upholds the compensation range set by the lower court, the government could face a total payout of up to 1.5 trillion won. The case now stands as the largest class action lawsuit in Korean history by both number of plaintiffs and compensation sought.

As the ruling nears, Pohang officials and civic groups are paying close attention.

Pohang Mayor Lee Kang-deok, Pohang City Council Chair Kim Il-man and National Assembly members Kim Jung-jae and Lee Sang-hwi issued a joint statement on Thursday.

They called the 2017 earthquake “a national disaster that shook the lives of citizens” and said the upcoming ruling would serve as “an important benchmark in determining the government’s responsibility.”

“The government is denying already confirmed facts during the appeals process and attempting to evade responsibility,” they said. “We urge the court to recognize the link between the geothermal project and the earthquake and to deliver a fair and just ruling that reflects the reality of the victims’ suffering.”

The Pohang Earthquake Citizens' Countermeasure Headquarters also held a news conference at Pohang City Hall on April 14.

“We must present a united voice in the community regarding the lawsuit for earthquake damage compensation,” they said. “We ask everyone to join the signature campaign appealing for a fair ruling that reflects the victims' perspective ahead of the appeals court decision.”

The countermeasure headquarters has distributed signature forms to around 2,000 organizations and institutions in Pohang and launched signature drives at temples, parks and traditional markets with heavy foot traffic. It is also running an online petition.

“The citizens must take the lead in reclaiming the rights they lost due to the induced earthquake,” the group said. “We urge every individual and household that has not yet participated to join the signature campaign.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY KIM JUNG-SEOK [paik.jihwan@joongang.co.kr]