Ruling in Favor of the Plaintiff in the Lawsuit to Revoke Excess Effluent Charges Imposed on a Food Waste Treatment Facility

Lee & Ko successfully represented Company A, a food waste treatment company, in a lawsuit seeking to revoke excess effluent charges of approximately KRW 276.6 billion (approx. USD 200 million), securing a favorable ruling for the client.

Investigative authorities alleged that Company A, which had obtained a waste treatment business license and operated discharge facilities, illegally discharged wastewater by installing a bypass pipe in the food waste treatment process, allowing wastewater to flow out without passing through the final discharge point. Consequently, both Company A and its executives were indicted. Subsequently, relying entirely on the investigation's findings, the administrative authority imposed an unprecedented KRW 276.6 billion in excess effluent charges, alleging that Company A discharged water pollutants exceeding the permissible concentration limits. Meanwhile, Company A and its executives had already been convicted in the first instance of the related criminal case, which is currently under appeal.

Under the Water Environment Conservation Act, the amount of excess effluent charges is calculated based on the concentration level exceeding permissible limits, the volume of discharge, and the operational days. Lee & Ko meticulously analyzed the grounds for the administrative authority’s calculation of the charges and successfully argued and proved the following:
    1. The excess pollutant concentration level should have been calculated based on wastewater discharged after being combined with wastewater treated through the facility, not based on samples collected from the bypass pipe. The administrative authority’s reliance on samples from the bypass pipe was therefore unlawful.
    2. The volume of discharge used in the calculation was based on unreliable data, leading to errors.

This case is a landmark victory, overturning the largest charges ever imposed in Korea, showcasing the expertise and seasoned experience of Lee & Ko’s Environmental Group. Furthermore, the case serves as a powerful reminder that companies failing to prioritize environmental responsibility risk facing astronomical penalties. At the same time, it underscores the importance of regulatory sanctions to be imposed strictly in accordance with clear legal standards and procedures.