Jurisdiction
For products sold in South Korea
Law Summary
South Korea is considering legislation for mandatory human rights and environmental supply chain due diligence. Several bills targeting larger companies have been proposed, requiring risk identification, prevention, mitigation, and reporting, but a final law has not yet been enacted.
Law Obligation
- Companies must establish and implement due diligence, which includes:- establishing human rights policies- conducting risk assessments- implementing risk-and-impact monitoring systems- disclosing relevant information to stakeholders- operating grievance mechanisms- in the event of identifying adverse impacts, developing and executing remedial measures
- The representative of the company or the authorised head of the business must annually prepare a due diligence plan and report it to the Board of Directors for its approval
- A human rights and environment company committee (the “Committee”) under the Prime Minister’s office must be established to mediate business activities and resolve disputes related to due diligence. The Committee can recommend corrective measures or impose orders on non-compliant companies, potentially including criminal penalties
- The government will establish a Human Rights and Environmental Violation Victim Assistance Fund to support victims of adverse impacts and improve dispute resolution effectiveness.
