Strengthening Corporate Responsibility: Urging Swift Enactment of the Mandatory Human Rights Due Diligence Act
The Scope of Application Shopuld Be Maintained while Supply Chain Definitions Align with
International Standards and Ensure Broad Stakeholder Participation
□ On August 20, 2026, the National Human Rights Commission of Korea (Chairperson Ahn Chang-ho; hereinafter "NHRCK") expressed an opinion to the Speaker of the National Assembly, stressing the urgent need to enact two pending bills—the Act on Human Rights and Environmental Protection for Sustainable Business Management (Bill Nos. 2210837 and 2213897)—and recommending key considerations for the legislative process.
□ Urgent Need for Legislation Enforcing Human Rights and Environmental Accountability Across Operations and Supply Chains
○ The Act on Human Rights and Environmental Protection for Sustainable Business Management (hereinafter "the pending bills") introduced in the National Assembly primarily mandates the establishment of a "Human Rights and Environmental Due Diligence Framework" to proactively identify, prevent, and mitigate human rights and environmental risks within companies and their supply chains, as well as to monitor implementation.
○ The pending bills represent essential legislation to codify the corporate responsibility to respect human rights into domestic law, as set forth in the UN Guiding Principles on Business and Human Rights (UNGP) and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (hereinafter "OECD Guidelines"). Inadequate corporate responses to human rights obligations can result in reputational damage as well as legal and financial losses, rendering the prompt deliberation and enactment of these bills a matter of high urgency.
□ Necessity of Maintaining the Scope of Application
○ The pending bills apply to companies with 500 to 1,000 or more regular employees, or those with annual revenues between 200 billion and 500 billion KRW in the preceding year (excluding small and medium-sized enterprises).
○ To achieve the legislative purpose of preventing human rights violations across supply chains, the scope of application must be broadly defined.
○ Given South Korea's existing experience operating safety and health management systems under the Occupational Safety and Health Act and the Serious Accidents Punishment Act, the scope defined in the pending bills cannot be deemed excessively burdensome. Therefore, reducing the scope below what is currently proposed would be inappropriate.
□ Aligning Definitions of Human Rights, Environment, Supply Chain, and Stakeholders with International Standards
○ As the pending bills aim to identify and prevent human rights and environmental risks across corporate operations and supply chains, the terms "human rights and environment" and "supply chain" must be explicitly defined in alignment with international standards.
○ The "human rights and environment" criteria should specifically incorporate the International Bill of Human Rights, core ILO conventions, and other treaties ratified by South Korea, in line with the UNGP and OECD Guidelines. Furthermore, "supply chain" must encompass both direct and indirect relationships across all corporate activities.
○ The UNGP and OECD Guidelines mandate the meaningful participation of stakeholders throughout the human rights due diligence process. Accordingly, when defining "stakeholders," it is appropriate to include not only individuals and groups actually or potentially affected, but also organizations that represent and defend their rights and interests.
□ Defining the Role of the NHRCK and Securing Diversity and Independence in Dispute Resolution Bodies
○ The UN Working Group on Business and Human Rights emphasizes that National Human Rights Institutions (NHRIs) must play a comprehensive role in the field of business and human rights. Thus, the role of the NHRCK needs to be explicitly defined within the law.
○ Dispute resolution bodies investigating and mediating corporate human rights abuses should expand their membership numbers to accommodate diverse stakeholders. Explicit provisions must be established to guarantee the independence of committee members—detailing recommendation procedures, terms, and qualification requirements—to ensure independent and impartial deliberations.
In addition, dispute resolution bodies should be granted authority to order emergency relief measures.
□ Reaffirming the critical need for the swift deliberation and enactment of the pending bills to strengthen corporate responsibility for human rights and the environment, the NHRCK will continue active engagement and communication with the National Assembly and various stakeholders throughout the legislative process.
