South Korea reintroduces mandatory human rights and environmental due diligence bill

South Korea is taking a significant step toward responsible business conduct with the reintroduction of a mandatory human rights and environmental due diligence (mHREDD) bill in the National Assembly.

The proposed legislation, known as the Act on the Protection of Human Rights and the Environment for Sustainable Business Management, requires large companies to identify, prevent and address human rights and environmental risks. This applies across their operations and supply chains.

Originally introduced in September 2023, the first of its kind in Asia, the bill has since been revised following review by the Ministry of Government Legislation.

Its reintroduction this month signals further momentum for corporate accountability in the Asia-Pacific region.

Thailand is drafting a mandatory human rights due diligence law, while Japan has issued voluntary corporate guidelines that align with the United Nations Guiding Principles for Business and Human Rights (UNGPs).

Indonesia is implementing its business and human rights roadmap as part of its accession to the Organisation for Economic Co-operation and Development (OECD).

The revival of South Korea’s mHREDD bill follows increasing pressure to align with global expectations on responsible business conduct, human rights protections, and ethical supply chains.

As a major export-driven economy, South Korea faces growing exposure to forced labour import bans introduced by the United States and European Union.

These laws restrict the entry of goods linked to forced labour, making it crucial for South Korean companies to ensure their supply chains meet international standards.

In April this year, the United States Customs and Border Protection issued a Withhold Release Order against South Korea’s largest salt producer over forced labour concerns.

This high-profile import ban highlights the significant commercial and reputational consequences when companies do not adequately address their forced labour risks.

Companies with more than 500 employees or annual revenue exceeding KRW 200 billion (approximately USD 150 million) would be covered under the proposed law.

They must conduct human rights and environmental due diligence across their value chain.

The due diligence process must include identifying, preventing, mitigating, and addressing any adverse human rights or environmental impacts.

Companies that fail to meet these obligations could face both financial penalties and criminal liability.

The bill is designed to align with international best practices, including the UNGPs.

The reintroduction of South Korea’s due diligence bill comes at a pivotal moment.

The country is emerging from recent political and trade controversies and has an opportunity to rebuild trust and strengthen its leadership on responsible business.

The nation’s new president Lee Jae–myung, a former labour and human rights lawyer, has expressed a strong commitment to justice.

This has raised expectations that business and human rights will be prioritised on the national agenda.

However, without effective engagement and support from the business sector, the passage of the bill may be impeded.

South Korea cannot afford to miss this opportunity to safeguard workers, support ethical trade, and increase its global competitiveness.

With countries across Asia progressing their own due diligence frameworks, South Korea must act now or risk falling behind in the region’s push for sustainable and responsible business.