Enhancing the National Contact Point (NCP) System to Address Corporate Human Rights Violations
The National Human Rights Commission of Korea (hereinafter referred to as the ‘NHRCK’) has recommended improvements to the National Contact Point (NCP) system under the Organisation for Economic Co-operation and Development (OECD) to better address human rights violations by corporations. The recommendations submitted to the Minister of Trade, Industry and Energy include:
Increasing the diversity of NCP members,
Reviewing the delegation of the ‘first assessment’ task,
Ensuring that the NCP Secretariat is directly managed by a national institution,
Establishing an advisory body, strengthening cooperation with overseas NCPs, and
Enhancing transparency in NCP operations.
□ On 17 February 2025, the NHRCK submitted a written opinion to the Minister of Trade, Industry and Energy, urging the Ministry to:
△ Broaden the diversity of NCP members,
△ Reassess the division of responsibilities between the NCP and the Secretariat, and
△ Transition the management of the NCP Secretariat from a private entity to a national institution.
Additionally, the NHRCK recommended system improvements, including the establishment and operation of an advisory body to strengthen the NCP’s effectiveness.
[Overview of the OECD NCP System]
○ The OECD introduced the ‘OECD Guidelines for Multinational Enterprises on Responsible Business Conduct’ (hereinafter referred to as the ‘OECD Guidelines’) in 2011 to prevent and address human rights violations linked to multinational enterprises.
○ Any individual or entity may file a complaint with the NCP if they suspect that a company has violated the OECD Guidelines. Upon receiving a complaint, the NCP conducts an initial ‘first assessment’ and, if necessary, carries out further investigations and mediation. If the parties fail to reach an agreement, the NCP issues a ‘final statement’ with recommendations.
○ South Korea established its NCP in 2001, comprising eight members—four from the government and four from the private sector. Since its inception, the NCP has processed 30 cases, with the most recent case heard in May 2024.
[Strengthening the Diversity and Expertise of NCP Members]
○ Article 4, Paragraph 2, Item 2 of the ‘Operating Regulations for the Corporate Responsibility Management Domestic Liaison Office’ (hereinafter referred to as the ‘Operating Regulations’) outlines the qualifications for private-sector NCP members. However, these requirements lack specificity. Furthermore, Article 6, Paragraph 4 stipulates that existing NCP members review new applicants, which can limit the participation of diverse stakeholders.
○ To enhance both diversity and expertise, it is necessary to revise Articles 4 and 6 of the Operating Regulations to expand private-sector NCP membership and introduce a more inclusive nomination process.
[Reviewing the Delegation of the ‘First Assessment’ Task]
○ In January 2024, the Ministry of Trade, Industry and Energy revised Article 12, Paragraph 3, Item 3 of the Operating Regulations, adjusting the responsibility of the NCP secretariat from ‘preliminary assessment for the first assessment’ to ‘first assessment.
○ This revision suggests that the Secretariat has assumed full responsibility for conducting the initial assessment, raising concerns about the delegation of this critical task. A review of the division of responsibilities between the NCP and the Secretariat is therefore necessary.
[Transitioning NCP Secretariat Management to a National Institution]
○ Currently, the NCP Secretariat is operated by the Korean Commercial Arbitration Board, a private institution. To enhance public accountability, as well as the fairness and credibility of NCP operations, the NHRCK recommends that a national institution take direct responsibility for managing the Secretariat.
[Establishing an Advisory Body, Strengthening Cooperation with Overseas NCPs, and Enhancing Transparency]
○ As the number of complaints increases and the range of stakeholders expands, it is essential to establish an advisory body that includes diverse stakeholders, ensuring a broad spectrum of expertise and perspectives.
○ Given the transnational nature of corporate activities, cooperation among different NCPs is crucial when handling cases. However, Korea’s NCP has faced criticism for its limited engagement with overseas NCPs. Specific measures, along with adequate personnel and budget allocations, are needed to improve cross-border collaboration in handling complaints.
○ To enhance transparency in NCP operations, clear criteria should be established regarding the non-disclosure of NCP meetings. Additionally, relevant meeting information should be made available on the NCP website, while efforts should be made to improve the website’s accessibility and introduce procedures for public observation of meetings.
□ The NHRCK hopes that these recommendations will contribute to more effective corporate accountability for human rights violations through improvements to the NCP system. The Commission will continue to monitor the revision of relevant regulations and the implementation of system enhancements.
