The Korea Herald

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Prosecutors demand 20 year imprisonment for ex-Oxy CEO

By Korea Herald

Published : Nov. 30, 2016 - 16:10

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South Korean prosecutors on Tuesday sought 20 years in prison for former Oxy Reckitt Benckiser Korea CEO Shin Hyun-woo, and 10 years for John Lee, another former CEO of the company, for failing to confirm toxic materials in Oxy humidifier disinfectants responsible for at least 73 deaths.

Shin and Lee are on trial for manufacturing and selling toxic humidifier sterilizers, on sale from 2000, that contain a toxic chemical called polyhexamethylene guanidine, without conducting safety tests.

“They deceived consumers with false and deceptive ads. Such misconduct has left infants dead as their parents live in guilt for the rest of their lives,” said prosecutors during the final hearing held at the Seoul Central District Court. 

Shin Hyun-woo, former CEO of Oxy Reckitt Benckiser Korea. (Yonhap) Shin Hyun-woo, former CEO of Oxy Reckitt Benckiser Korea. (Yonhap)

Shin is at the center of the scandal, as he was the sitting CEO when the problematic product was released. He served as the CEO of Oxy Reckitt Benckiser Korea, the local branch of the British household goods maker, from 1991 until 2004.

“He (Shin) says that he fully understands the gravity of the situation. But during the trial he denied responsibility and reversed unfavorable testimonies. He has to be punished for exchanging consumers’ lives for profit,” the prosecutors said.

John Lee, currently CEO of Google Korea, who served as Oxy CEO from June 2005 until May 2010, faces the same charges as Shin.

“As the CEO, John Lee is responsible for all product ads released during his term. He should have conducted a thorough safety test when Oxy received its first warning,” prosecutors said.

They are accused of violating the Act on Fair Labeling and Advertising, for putting on deceptive ads that read “harmless” and “safe for babies,” among other claims.

The prosecution fined Shin 5.1 billion won ($4.37 million) and Lee 3.2 billion won for fraud.

After about 5 1/2 years since accusations surrounding the toxic product first came out in 2011, the final verdict is set to be handed down on Jan. 6.

During the final statement, Shin and Lee said that they were deeply regretful and truly sorry for causing pain to victims and the surviving families.

A mother who had lost her daughter due to the toxic product appealed, “For the past five years we have been fighting a strange case that does not have an assailant. I ask them to be sentenced to lifetime imprisonment. They must be separated from society to quietly self-reflect”.

According to local civic group Asian Citizen’s Center for Environment and Health, 239 people lost their lives due to Oxy’s toxic humidifier disinfectants and 1,289 patients are suffering aftereffects, such as lung damage. 

By Kim Bo-gyung (lisakim425@heraldcorp.com)