[Press Release] Asia’s First Corporate Human Rights and Environmental Due Diligence Bill Reintroduced in South Korea

• A turning point for strengthening democracy and corporate responsibility
• Rep. Jung Tae-ho reintroduces revised bill to prevent human rights and environmental violations in global supply chains
• First human rights and environmental-centered legislation under the new administration, signaling a commitment to international standards
• Establishing an institutional foundation for sustainable corporate activities
  

On 13 June 2025, Rep. Jung Tae-ho (Democratic Party, Gwanak-eul, Seoul) has reintroduced the “Legislative Bill for the Act on the Protection of Human Rights and the Environment for Sustainable Business Management” (abbreviated as the "Corporate Human Rights and Environmental Due Diligence Act") to the National Assembly of the Republic of Korea. In a joint press conference with the Korean Transnational Corporations Watch (KTNC Watch), the Korean Confederation of Trade Unions (KCTU), and the Federation of Korean Trade Unions (FKTU), Rep. Jung outlined the bill’s purpose and key provisions, urging swift passage through the National Assembly.

This bill, first introduced during the 21st term of the National Assembly in September 2023, has been revised and reintroduced after undergoing review by the Ministry of Government Legislation. It establishes mandatory corporate due diligence to proactively identify and address potential human rights and environmental abuses across global supply chains.

This reintroduction is especially notable as the first legislative initiative focusing on human rights and the environment under the newly inaugurated government, which has emphasized the restoration of democracy and human rights after the recent presidential impeachment. It signals South Korea’s emergence as a regional leader in responsible business conduct.

The bill is the first of its kind in Korea to establish mandatory corporate human rights and environmental due diligence, applicable to companies with over 500 employees or annual revenue exceeding KRW 200 billion (approx. USD 150 million). Small and medium-sized enterprises (SMEs) are excluded from its scope.

Human rights and environmental due diligence (mHREDD) refers to the process by which companies identify, prevent, and mitigate adverse human rights and environmental impacts, and transparently disclose relevant information. To comply, companies must:

• Establish and internalize human rights and environmental policies
• Conduct human rights impact assessments
• Develop and implement action plans to address potential and actual negative impacts
• Monitor and publicly disclose outcomes
• Establish internal grievance mechanisms

The bill defines the supply chain broadly, from raw material procurement to end-user consumption, covering both direct and indirect business relationships. It requires companies to tailor their action plans based on the nature and extent of their business relationships and influence.

Business enterprises that fail to perform their obligations under the proposed law are liable for damages and subject to administrative corrective orders, and those who fail to implement the corrective orders are subject to criminal penalties.

Stakeholder engagement is mandatory throughout the due diligence process, and the bill grants stakeholders the right to request access to due diligence-related information.

The government is tasked with providing guidance, evaluation criteria, and disclosure standards, as well as tailored support systems for SMEs.

At the press conference, Rep. Jung emphasized:

“With the new administration, our society stands at a turning point to reclaim democracy and human rights. Corporate social responsibility is no longer optional—it is an obligation. This bill marks the beginning of that shift.”

The international community has also taken note. The Clean Clothes Campaign, a leading international civil society network focused on the apparel industry, welcomed the bill as a major step forward:

“The draft law presented today at the South Korean National Assembly represents a significant step in creating fair and just value chains and contributing to the growing international body of rules on responsible business conduct. The CCC congratulates South Korean law-makers on being the front runners of responsible business conduct in the region, and urges all members of the Assembly to show their support to the Act.”

Park Sang-man, Vice President of the Korean Metal Workers' Union (KMWU) under the Korean Confederation of Trade Unions (KCTU), emphasized that “supply chain due diligence is essential in addressing labor and human rights violations occurring in supply chains,” and stated that “through the Manufacturing Solidarity Alliance of the two major national trade union centers, including the Metal Workers' Union, we will continue to urge the government to strengthen corporate responsibility for human rights and the environment across supply chains.”

Attorney Park Young-ah of the KTNC Watch (GongGam Human Rights Law Foundation) added:

“There has long been an international call for Korea to adopt a law reflecting the global impact of Korean companies. We hope that the bill introduced today will serve as an important and effective tool to meaningfully prevent human rights and environmental violations occurring in the supply chains of Korean companies.”

On September 1, 2023, the National Assembly and civil society made history by introducing Asia’s first bill establishing mandatory corporate human rights and environmental due diligence. This law was desperately needed for Korean companies to earn respect on the global stage—and to protect people impacted by Korean business practices at home and abroad. Unfortunately, the bill expired at the end of the previous National Assembly term.

Now, nearly two years later in June 2025, the world is witnessing a regression in democracy and human rights. South Korea was no exception. On December 3 last year, the military stormed this very National Assembly, posing a grave threat to our democracy and civil rights. Yet, through collective resistance, we defended our constitutional order and democracy.

As a result, the world is watching Korea once again. The upcoming G7 Summit in Canada (June 15), which will be President Lee Jae-myung’s first major diplomatic appearance since taking office through a peaceful democratic revolution, is symbolically important. One of the recurring themes of past G7 discussions has been sustainable development through mandatory human rights and environmental due diligence.

International bodies such as the UN and OECD have consistently urged Korea to adopt binding rules requiring companies to assess and address potential risks of human rights violations and environmental damage in their supply chains—consistent with Korea’s economic size and influence.

Even amidst rising protectionism and geopolitical tension, one consensus remains clear: businesses are part of the global community and must uphold their responsibilities to respect human rights and protect the environment. The global momentum toward mandatory due diligence legislation is undeniable. If the Korean government and National Assembly take this bill seriously and implement it, it will not only strengthen Korean companies’ global competitiveness but also enhance Korea’s credibility in the international community.

Indeed, the Clean Clothes Campaign welcomed the reintroduction and praised Korean lawmakers for leading Asia in promoting responsible business. But this law is, above all, for the people living in Korea. It reflects the belief that a safe and sustainable future for everyone can only be ensured when corporate due diligence on human rights and environmental risks becomes a norm..

This winter, we stood together to defend democracy. Today, we stand again to reignite that light in our daily lives and in every corner of the world where Korean companies operate. It is time for Korea to become a global model in preventing human rights and environmental abuses in supply chains. As the first bill of its kind in Asia, we hope it soon becomes the international standard.