Urging Introduction of Mandatory Human Rights and Environmental Due Diligence Act for Safe Work Environments and Responsible Corporate Management
KTNC Watch, together with Democratic Party lawmakers Chung Tae-ho, Lee Yong-woo, and Kim Tae-sun, and the Korean Bar Association, held a National Assembly discussion titled ‘First Step Toward Corporate Sustainable Management - Legislation for Corporate Human Rights and Environmental Risk Due Diligence’ in Room 8 of the National Assembly Members' Office Building on 27 August 2025. The forum featured discussions on the necessity of legislating sustainable corporate management through human rights and environmental protection, along with specific deliberations on the “Act on the Protection of Human Rights and the Environment for Sustainable Business Activities (abbreviated as the Supply Chain Due Diligence Act),” proposed last June.
Rep. Jeong Tae-ho, who co-hosted the forum, emphasized, “As Korea plays a crucial role in the global supply chain, there is a need to institutionalize responsible corporate management that protects human rights and the environment.” He added in his remarks, “The National Assembly will also do its utmost to establish standards for sustainable human rights and environmental risk due diligence that respects human rights and the environment through responsible discussion and persuasion.”
Attorney Kim Dong-hyun from KTNC Watch and Korean Lawyers Public Interest and Human Rights introduced the background and key contents of the proposed Supply Chain Due Diligence Act, emphasizing the significance of its legislation. Attorney Kim explained, “Risks are outsourced through overseas supply chains and multi-level subcontracting, but the current system has limitations in resolving the various human rights and environmental issues arising in supply chains. Therefore, a Corporate Human Rights and Environmental Due Diligence Act is necessary to require broad due diligence on human rights and environmental rights across the entire supply chain,” and outlined the main contents of the proposed Act.
Attorney Kim emphasized, “The core utility of the Act lies in directly connecting victims at Nth-tier subcontracting companies with the primary contracting company, even when there is no direct contractual relationship between them. This aims to resolve problems difficult for Nth-tier subcontractors to solve independently by leveraging the influence of the top-tier primary contracting company. Therefore, ensuring the scope of supply chain due diligence is guaranteed is crucial.” He further stressed, “For the Act to function properly, stakeholder participation is essential, so the scope of stakeholders and their rights must be guaranteed.”
The designated discussion that day featured participants from labor movement organizations, economic groups, the Korean Bar Association, the National Human Rights Commission, and officials from the Ministry of Economy and Finance, enabling in-depth discussion on the Supply Chain Due Diligence Act from diverse perspectives.
Kim Hye-jin, Co-Executive Chair of the Campaign Headquarters for the Amendment of Articles 2 and 3 of the Trade Union Act, the first discussant, stated that while the Trade Union Act limits the scope of responsibility for primary contractors to employers who can control or determine working conditions and to labor disputes, the Supply Chain Due Diligence Act is expected to create the possibility of responding beyond this framework of the Trade Union Act. She further emphasized, “Further discussion is needed regarding the companies subject to this law, the level of stakeholder participation, and the composition of the committee to ensure this law can be meaningfully utilized for workers facing difficulties within supply chains. Additionally, a movement to secure social consensus will be necessary to ensure the law passes and becomes reality.”
Lee Sang-soo, an activist with SHARPS (Supporters for Health And Rights of People in Semiconductor industry), emphasized agreement on the law's necessity. He stated that the Supply Chain Due Diligence Act could reveal hidden industrial accidents—where compensation and recurrence prevention are difficult to demand due to limitations in the Industrial Safety and Health Act and the Serious Accidents Punishment Act—and serve as a means to hold supply chain-leading companies, which have problem-solving capabilities, accountable for industrial accidents (human rights violations). He particularly stressed, “Workplace accidents occurring at companies producing materials, parts, and equipment, or performing facility maintenance, currently see no responsibility taken by the prime contractor. The Act is necessary to ensure prime contractors to bear appropriate responsibility and to prevent workplace accidents and major disasters.”
Kim Hyun-min, Team Leader of the ESG Management Team at the Korea Chamber of Commerce and Industry, highlighted that while human rights issues are increasingly significant in ESG evaluations, there may be differences in human rights situations between OECD member countries and non-member countries. He further stressed, “While there is agreement that human rights and the environment are important in corporate management, legislation must proceed considering domestic and international economic conditions and the opinions of various stakeholders. Regulation and self-regulation must be harmonized to contribute to strengthening corporate global competitiveness.”
Subsequently, Attorney Lee Geun-woo of the Korean Bar Association's ESG Special Committee explained that while he generally agrees with the intent of the proposed Supply Chain Due Diligence Act, certain aspects warrant consideration when compared to the EU's Omnibus Package (CSDDD). He stated, “Points such as applying the same due diligence to direct and indirect contractors, the reduced burden of proof in civil liability, the additional provision of criminal penalties, and the broad scope of stakeholders appear to be defined more proactively than in Europe, suggesting they require review.”
Yang Bokyeong, Assistant Director of the Economic, Social and Cultural Rights Division at the National Human Rights Commission of Korea, emphasized, “Legislating human rights due diligence is not excessive regulation but a minimum requirement for participating in the global market,” adding, “The Commission will act as a facilitator to spread the implementation of international standards while minimizing the burden on companies.”
Kim Jae-hyun, an official from the Ministry of Economy and Finance, stated, “While more in-depth discussions will occur during the legislative process, some concepts need clarification,” adding, “We will continuously communicate to ensure the bill is effectively implemented while minimizing the burden on companies.”
