The interests of a domestic corporate giant and compensation for the suffering of Myanmar citizens: which one would The Granite Tower (GT) readers choose? In an unprecedented move in Korea, 20 members of the Korea University (KU) Clinical Legal Education Center (CLEC) (an affiliate of the KU School of Law) have announced plans to represent foreign citizens who have allegedly been exploited by the Korean corporation POSCO Daewoo.

The KU School of Law students have embarked on a lawsuit for damages against a domestic company in representation of 20 residents of Kyauk Phyu, Myanmar, according to the KU College of Law. CLEC and Yi Gong Lawyers will work together to represent the 20 Myanmar citizens in a lawsuit against POSCO Daewoo, until recently known as Daewoo International. According to Hongki Yun, co-manager of the International Human Rights Clinic, they filed an indictment at the Seoul Central District Court in March.

Each Myanmarese is filing for 10 million won in damages. The lawsuit stems from the controversial construction of an onshore gas terminal (OGT) in Kyauk Phyu in 2009. CLEC claims that POSCO Daewoo has paid in 800 million won to compensate 126 Myanmarese citizens for their land in order to construct the terminal. 

According to CLEC, the sum was too low. Their reasons include substantial damage to the environment in the area which is allegedly a direct consequence of the construction of the OGT and other related facilities resulting in a buildup of industrial waste and contamination of local adjacent water sources.

CLEC is run by KU School of Law students who work under the guidance of professors. The students are involved in pro bono activities such as legal counseling sessions. CLEC consists of various clinics such as the International Human Rights Clinic whose adviser is Professor Park Kyung Shin. The clinic focuses on activities related to human rights violations around the globe.  

▲ KU School of Law. Provided by korealawschool.com

In recent years, it has focused on human rights issues derived from resource development enterprises conducted overseas by domestic corporations. The clinic began investigating the alleged human rights violations of POSCO Daewoo in 2010. “We visited Myanmar in the summers of 2012 and 2013 and also in February of 2015 and pursued activities to prepare for the lawsuit such as visits and interviews and obtaining a certificate of power of attorney.

“Compared to our visit in 2013, in 2015 we saw that the standard of living for local residents had vastly improved,” said Yun. “We saw that our work and the fulfillment of the company’s earlier promises, which were previously unfulfilled, were correlated. Our efforts had largely improved the local people’s lives. Students and advisor professors who made the trip at the time were deeply moved,” added Yun.

CLEC has been preparing for this case by using as an example the case against Unocol Corporation, a United Statesbased (U.S.) oil conglomerate. Non-governmental organizations (NGOs) filed a lawsuit against Unocol Corporation claiming that the corporation had inflicted rape, forced labor, murder, deportation, torture and other acts on the citizens of Myanmar. The lawsuit lasted nearly 10 years, and in 2005, the victory virtually went to the citizens of Myanmar as Unocol Corporation agreed to compensate Myanmar citizens and provide funds for programs in Myanmar to improve living conditions and protect the rights of the people in the region in a confidential settlement.

In an attempt to dissuade those who protest the lawsuit may damage a domestic company, KU School of Law personnel said, “We are focusing on creating a good example for Korea to provide Myanmar citizens with a stable living environment as well as promoting a positive image for domestic companies so that they can enter the Myanmar market with more ease.”

CLEC claims that the 800 million won settlement was completed in heavy pressure of ex-high ranking military officials who had control over land ownership in the area. In addition, CLEC explained that POSCO Daewoo did not actively seek to make sure that the Myanmarese residents fully understood the details of the purchase contract. The contract was written in English rather than Burmese, the language spoken in the region. Furthermore, only a fraction of the residents of the area took part in the information session for the OGT construction project.

“You have probably heard of the expression ‘curse of natural resources.’ It describes the phenomenon where when compared with countries lacking natural resources, countries with rich natural resources tend to have a slower socioeconomic development,” Yun said. All too often, foreign capital and local authoritarian administrations exploit such resources in ways that line their pockets while leaving the local population in a continued state of poverty.

▲ KU School of Law. Photographed by Lee Hye Min.

Korean companies actively engage in overseas resource development enterprises and they, in many cases, become the foreign capital which exploits without taking into account local conditions. Accordingly, the International Human Rights Clinic has decided to focus on such issues and is now working to expand domestic corporations’ social responsibility in the international domain. This lawsuit is one result.

Going back to the Unocol case, the Myanmarese residents’ victory and resulting settlement has become a guideline for American corporations to follow when undertaking overseas resource development projects. The POSCO Daewoo lawsuit just may become a precedent and guideline for Korean corporations that ensures they acknowledge their responsibility to protect human rights wherever they operate. It could also raise awareness of such international human rights violations and lead to legislative action to cure the problem. The journey for the materialization of the earnest hopes of the students and members of the clinic—a long and difficult one for certain—is just beginning.