Since November 2012, a Korean government investigation committee has reviewed all reported cases of death or lung injury from exposure to HS products and categorised them on the basis of evidence linking their lung condition with HS product use. A total of 186 Category 1 and 2 Oxy HS victims (eight of whom received settlements from another manufacturer) were identified in the government’s first two rounds of categorisation (out of a total of 530 applicants). Category 1 and 2 victims are those categorised by the Korean government as suffering, or having suffered, lung damage which was “almost certainly” (Category 1) or “highly possibly” (Category 2) a result of their use of HS products. As of July 2018, 669 out of 752 applicants (neglecting 83 drop-out cases) Round 3 applicants had been classified. Of them, 84 (12%) have been recognised as Category 1 or 2 HS victims, and 78 (11%) indicated that they used the Oxy HS product, either on its own or in conjunction with another HS product. Further, as of 26 July 2019, a total of 4,417 (82% of the 5,367 applicants as of 26 July 2019) Round 4 cases have been reviewed and 173 (3.9%) have been recognised as Category 1 or 2 HS victims, and 155 (3.5%) of them indicated that they used Oxy HS product, either on its own or in conjunction with another HS product. Round 4 remains open for applications.
Through its Compensation Plans (the first of which was announced on 31 July 2016) Oxy Reckitt has provided Oxy HS Category 1 and 2 victims from Rounds 1 through 4 announced on or before 26 July 2019 with a remedy that reiterates its apology in the form that best respects the sensitivities of individual victims and their families, provides fair compensation without delay, imposes the minimum burden on claimants and provides access to independent advice and review. Oxy Reckitt was the first company involved in the HS issue to publish a Compensation Plan in a transparent way.
99.5% of Category 1 and 2 Oxy HS victims from Rounds 1 and 2 have registered to participate in the Compensation Plan, and 100% of those registered have been compensated either by Oxy Reckitt or by other HS manufacturers.
96% of Category 1 and 2 Oxy HS victims from Round 3 have registered to participate in the Compensation Plan, and 98.6% of those registered have been compensated either by Oxy Reckitt or by other HS manufacturers.
Oxy Reckitt is currently processing the claims of those Category 1 and 2 Oxy HS victims from Round 4, announced on or before 26 July 2019. 100% of Round 4, Category 1 and 2 Oxy HS victims (announced on or before 26 July 2019) have registered to participate in the Compensation Plan, and 94.8% of those registered have been compensated either by Oxy Reckitt or by other HS manufacturers.
Oxy Reckitt's Compensation Plans are based on various consultations with Category 1 and 2 Oxy HS victims from Rounds 1 through 4 and reflect the views of those victims and their families. They are based on the principles of respect, transparency, fairness and speed. They include a lump sum payment in respect of mental distress (including child potential and family consolation, to reflect the impact on families and the gravity of the situation), past expenses, lost income, certain legal expenses and interest. An additional amount is offered where there is more than one victim in a family. For victims living with the ongoing effects of the Oxy HS product, there is a proposed provision for future medical and care needs.
To date, Oxy Reckitt has spent approximately KRW 282 billion in compensation for Category 1 and 2 Oxy HS victims from Rounds 1 through 4. Separately, Oxy Reckitt paid KRW 67.4 billion in a lump sum to contribute to the government-led Special Relief Fund on 8 September 2017 under the HS Damage Relief Act. In addition, in 2014 Oxy Reckitt donated KRW 5 billion to a Humanitarian Fund to contribute to a broader resolution for those who are in imminent and desperate help due to the impact of HS.
Oxy Reckitt remains committed to finding an industry-wide and sustainable solution with other stakeholders involved in the HS issue, including the government, other manufacturers and ingredient suppliers.