South Korean companies are largely failing to meet their responsibility towards respecting human rights, new independent analysis revealed today (20 April 2023). Evidence published by the Business & Human Rights Resource Centre suggests although it is feasible for companies to commit to human rights protections, Korean companies are falling short when it comes to tangible actions.

The analysis looked at South Korean companies’ performance on key human rights measures by collating evidence from two global human rights benchmarks, the Social Transformation Baseline Assessment by the World Benchmarking Alliance and KnowTheChain, the anti-slavery benchmark from the Business & Human Rights Resource Centre. It concluded voluntary efforts to address human rights abuses have been insufficient in South Korea and set out recommendations for the South Korean Government to adopt a mandatory approach which would require companies to make consistent and effective efforts to protect human rights and the environment in their supply chains.

Out of the South Korean companies assessed by World Benchmarking Alliance and KnowTheChain:

• 65% companies scored zero on the most basic initial human rights and environmental due diligence steps.
• None disclosed engaging with local or global trade unions to support supply chain workers’ rights.
• Only one in three companies disclosed undertaking a human rights risk assessment in its supply chain – a key element of the HREDD process.
• Only one in three companies disclosed a first-tier supplier list, demonstrating a lack of transparency around risks and/or a lack of knowledge about where those risks lie.

South Korea’s upcoming 4th National Action Plan on Human Rights provides a critical opportunity for South Korea to pave the way for regulatory developments on mandatory human rights and environmental due diligence (mHREDD) in Asia. This would ensure South Korea does not fall behind European competitors when it comes to responsible business conduct, as well as enhance the protection of workers, communities and other stakeholder groups affected by harmful corporate activity.

Yoona Kim, Korea Representative at the Business & Human Rights Resource Centre, said: “After years of voluntary efforts to ensure responsible business conduct, it is clear the time has come for a mandatory approach to corporate due diligence in South Korea. Similar efforts are already well underway in other parts of the world and the Korean Government has a unique opportunity to provide leadership across Asia. Such legislation would also ensure Korean companies and investors are prepared for a not-too-distant future where addressing harmful business practices is no longer avoidable. Unless South Korean companies urgently improve their human rights practices, they face risks to both their performance, as well as their reputation.

“Mandatory HREDD legislation is not a quick fix solution, but well-drafted legislation has the potential to ensure companies are driving greater shared prosperity, human dignity and freedoms for communities. While some Korean companies are already taking positive steps towards respecting human rights in their supply chains, we have enough evidence to know there is a wide range in Korean companies’ performance on human rights – as well as a significant gap between companies’ commitments on paper and their practice on the ground. This is a critical moment for the South Korean Government to ensure companies are not failing in their responsibilities towards the workers and communities on which their profits so heavily depend.” 

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Note to editors: 

• The Business & Human Rights Resource Centre is an international NGO that tracks the human rights impacts (positive and negative) of more than 10,000 companies across nearly 200 countries. We seek responses from companies when concerns are raised by civil society. 
• KnowTheChain is a project from the Business & Human Rights Resource Centre which acts as a resource for companies and investors to address forced labour in global supply chains, helping them operate more transparently and responsibly. 
• The World Benchmarking Alliance is a non-profit organisation holding 2,000 of the world’s most influential companies accountable for their part in achieving the Sustainable Development Goals.  

Media contact: Priyanka Mogul (London-based), Media Officer, Business & Human Rights Resource Centre, +44 (0) 7880 956239, [email protected].