South Korea
South Korea adopted a Human Rights National Action Plan containing a short chapter on business and human rights in August 2018 which ran until 2022.
Available NAPs
South Korea: 1st BHR Chapter (2018-2022)
Status
South Korea adopted a Human Rights National Action Plan containing a short chapter on business and human rights on 9 August 2018 which ran until 2022. An unofficial English translation has been provided by the Korean House for International Solidarity.
In February 2023, the Ministry of Justice published Guidelines on Business and Human Rights.
Process
The recommendations outline nine tasks for the government, including: ensuring government policy coherence in relation to business and human rights, institutionalising human rights management in public organisations, considering human rights in public procurement, and supporting non-state-based grievance mechanisms.
On 9 August 2018 the State Council adopted the Human Rights National Action Plan which contains a chapter on business and human rights.
Children’s rights
C. Current Status
1. Domestic Status [page 3]
- Increased discussion of corporate social responsibility as a result of human rights issues such as … child labor … in the management process of multinational corporations.
…
Conflict-affected areas
South Korea’s NAP makes no reference to conflict-affected areas.
Construction sector
D. Tasks for the Third NAP
Institutionalization of Human Rights Management
3. Public procurement considering social responsibility [page 5]
- Give additional 10% point on management condition mark when female·disabled friendly companies or social enterprises record construction ratio over 30% according to detailed guidelines of qualification examination on facility construction (Public Procurement guidelines)
…
Corporate law & corporate governance
C. Current Status
1. Domestic Status [page 3]
- Increased discussion of corporate social responsibility as a result of human rights issues such as low wages, child labor, poor working environment and forced migration of indigenous people in the management process of multinational corporations.
- Following the adoption of the ‘UN Guiding Principles on Business and Human Rights’ in 2011, various follow-up measures are being pursued to realize the guiding principle internationally.
- Description of the expiration dates of the comprehensive policy for sustainable management by amending the 「Industrial Development Act」 on December 2017.
* Article 19 (Comprehensive Policies for Sustainable Management)
(1) The Government shall formulate and implement comprehensive policies every 5 year to encourage corporations to promote activities for sustainable management that takes into account economic profitability, environmental soundness, and social responsibility. - According to ‘Operation Rules for National Contact Point (NCP) for Implementing OECD Guidelines for Multinational Enterprises’ enacted in 2001, NCP was established within the Ministry of Trade, Industry and Energy. But considering the fact that it is insufficient to prevent human rights violations of corporations, NCP amends operational rules and strengthens the diversity and professionalism of its members.
…
2. Implementation of the Second NAP [page 4]
- Promotion of social responsibility, including respect for human rights in managerial activities.
– Publication of operating casebook of Creating Shared Value Forum and opening of training course for experts of corporate social responsibility and creating shared values.
– Revision of 「Procurement Business Act」 and addition of an article promoting corporate social responsibility on January 2016. - Improvement of OECD Guidelines for Multinational Enterprises National Contact Point (NCP).
– Held meetings and seminars for overseas Korean companies to promote the implementation of OECD Guidelines.
– Operated NCP website (www.ncp.or.kr) and opened English website.
– Diversified the composition of the members as requested in the OECD Guidelines and professionalized the operational procedures.
D. Tasks for the Third NAP
Institutionalization of Human Rights Management
1. Secure corporate responsibility on human rights [page 4]
- Express expectations of corporate responsibility on respecting human rights in a way that can be effectively communicated to corporations in order to fulfill their responsibilities in respect of human rights.
– Express expectations of corporate responsibility on respecting human rights through its official website. (declaration)
(1) All corporations within the territory or jurisdiction of Republic of Korea, regardless of its size or location, should implement the corporate responsibility on respecting human rights defined by UN Guiding Principles.
(2) To the extent possible, corporations should pay attention to prevent human rights violations happening at supply chain such as business partners or supplying companies.
(3) Government should provide necessary support and legal, policy, and institutional arrangements for corporations to fulfill their human rights responsibilities.
2. Establish and implement measures for corporate sustainability management [page 5]
- Reflect ‘respecting human rights·prohibition on discrimination’ ‘work-life balance’ on the criteria of factual survey on corporate sustainability management and reward assessment.
- Include corresponding strategy about making global standard and norms of corporate sustainability management.
Corruption
South Korea’s NAP makes no reference to corruption.
Data protection & privacy
C. Current Status
1. Domestic Status [page 3]
- Revision of 「Procurement Business Act」 and addition of an article promoting corporate social responsibility on January 2016.
* Article 3-2 (Encouraging Social Responsibility)
The administrator of the Public Procurement Service may reflect social and environmental values such as … consumer protection in the procurement process to encourage corporate social responsibility.
…
Development finance institutions
South Korea’s NAP makes no reference to development finance institutions.
Digital technology & electronics sector
South Korea’s NAP makes no reference to information and communications technology (ICT) and electronics.
Energy sector
Environment & climate change
C. Current Status
1. Domestic Status [page 3]
- Revision of 「Procurement Business Act」 and addition of an article promoting corporate social responsibility on January 2016.
* Article 3-2 (Encouraging Social Responsibility)
The administrator of the Public Procurement Service may reflect social and environmental values such as environment, … in the procurement process to encourage corporate social responsibility
…
Equality & non-discrimination
D. Tasks for the Third NAP
Institutionalization of Human Rights Management
2. Establish and implement measures for corporate sustainability management [page 5]
- Reflect ‘respecting human rights·prohibition on discrimination’ ‘work-life balance’ on the criteria of factual survey on corporate sustainability management and reward assessment.
…
5. Support corporate with gender equality management
- Support gender equality education to managerial staff in private business·public institution and of human resources department.
– Conduct gender equality education to managerial staff or human resources manager who has strong sayings on decision making and recruitment.
Export credit
South Korea’s NAP makes no reference to export credit.
Extractives sector
South Korea’s NAP makes no reference to extractives.
Extraterritorial jurisdiction
South Korea’s NAP makes no reference to extraterritorial jurisdiction.
Finance & banking sector
South Korea’s NAP makes no reference to finance and banking.
Fisheries and aquaculture sectors
The South Korean NAP does not make a direct or explicit reference to the Fisheries and Aquaculture sectors.
Forced labour & modern slavery
C. Current Status
1. Domestic Status [page 3]
- Increased discussion of corporate social responsibility as a result of human rights issues such as … child labor, … in the management process of multinational corporations
Freedom of association
South Korea’s NAP makes no reference to freedom of association.
Garment, Textile and Footwear Sector
The South Korean NAP does not make a direct reference to the Garment sector.
Gender & women’s rights
D. Tasks for the Third NAP
Institutionalization of Human Rights Management
3. Public procurement considering social responsibility [page 5]
- Highly recommend to apply the guidelines which reflects the corporate social responsibility.
– Give additional credit points to companies which are ‘female·disabled friendly companies’ and which offer work-learning dual program following the guidelines of qualification examination on goods purchase(Public Procurement Guidelines).
– Give additional 10% point on management condition mark when female·disabled friendly companies or social enterprises record construction ratio over 30% according to detailed guidelines of qualification examination on facility construction(Public Procurement guidelines).
5. Support corporate with gender equality management
- Support gender equality education to managerial staff in private business·public institution and of human resources department.
– Conduct gender equality education to managerial staff or human resources manager who has strong sayings on decision making and recruitment.
Guidance to business
C. Current Status
1. Domestic Status [page 3]
- Following the adoption of the ‘UN Guiding Principles on Business and Human Rights’ in 2011, various follow-up measures are being pursued to realize the guiding principle internationally.
– Establishment of ‘NAP on Business and Human Rights’ is being mentioned as one of the followup measures.
– The National Human Rights Commission of Korea also announced ’National Human Rights Policy Basic Plan Recommendation of Business and Human Rights’ on September 2016. - According to ‘Operation Rules for National Contact Point (NCP) for Implementing OECD Guidelines for Multinational Enterprises’ enacted in 2001, NCP was established within the Ministry of Trade, Industry and Energy. But considering the fact that it is insufficient to prevent human rights violations of corporations, NCP amends operational rules and strengthens the diversity and professionalism of its members.
…
2. Implementation of the Second NAP [page 4]
- Promotion of social responsibility, including respect for human rights in managerial activities
– Publication of operating casebook of Creating Shared Value Forum and opening of training course for experts of corporate social responsibility and creating shared values.
– Revision of 「Procurement Business Act」 and addition of an article promoting corporate social responsibility on January 2016. - Improvement of OECD Guidelines for Multinational Enterprises National Contact Point (NCP)
– Held meetings and seminars for overseas Korean companies to promote the implementation of OECD Guidelines.
– Operated NCP website (www.ncp.or.kr) and opened English website.
– Diversified the composition of the members as requested in the OECD Guidelines and professionalized the operational procedures.
D. Tasks for the Third NAP
Institutionalization of Human Rights Management
1. Secure corporate responsibility on human rights [page 4]
- Express expectations of corporate responsibility on respecting human rights in a way that can be effectively communicated to corporations in order to fulfill their responsibilities in respect of human rights.
– Express expectations of corporate responsibility on respecting human rights through its official website. (declaration)
(1) All corporations within the territory or jurisdiction of Republic of Korea, regardless of its size or location, should implement the corporate responsibility on respecting human rights defined by UN Guiding Principles.
(2) To the extent possible, corporations should pay attention to prevent human rights violations happening at supply chain such as business partners or supplying companies.
(3) Government should provide necessary support and legal, policy, and institutional arrangements for corporations to fulfill their human rights responsibilities.
5. Support corporate with gender equality management [page 5]
- Support gender equality education to managerial staff in private business·public institution and of human resources department.
– Conduct gender equality education to managerial staff or human resources manager who has strong sayings on decision making and recruitment.
Health and social care
Enhance the Effectiveness of Grievance Settlement [page 6]
Relief Process>
– Support making an extra remedy account to aid victims who were excluded from government aid (1 25 billion won), actively find more victims, make the best use of emergency medical support system, and expand monitoring on victim’s health.
Human rights defenders & whistle-blowers
South Korea’s NAP makes no reference to human rights defenders and whistle-blowers.
Human rights impact assessments
South Korea’s NAP makes no reference to human rights impact assessments.
Indigenous peoples
C. Current Status
1. Domestic Status [page 3]
- Increased discussion of corporate social responsibility as a result of human rights issues such as … forced migration of indigenous people in the management process of multinational corporations.
…
Investment treaties & investor-state dispute settlements
South Korea’s NAP makes no reference to investment treaties and investor-state dispute settlement (ISDS).
Read more about Investment treaties & investor-state dispute settlements
Judicial remedy
South Korea’s NAP does not make specific reference to judicial remedy; however, it notes in the Introduction:
Introduction [page 2]
… States should take actions to address adverse impacts on human rights by business activities, ensure and support corporate responsibility to respect human rights, and realize effective policies to improve access to remedy. While tasks of improving protection and respect for human rights in business activities are discussed in other rights such as the right to work and the right to decent living, we are here separately addressing several tasks including … remedies for victims under the theme of business and human rights, given the special significance of establishing human rights policies on business activities.
Land
South Korea’s NAP makes no reference to land.
Mandatory human rights due diligence
South Korea’s NAP makes no reference to human rights due diligence.
Migrant workers
South Korea’s NAP makes no reference to migrant workers.
National Human Rights Institutions/ Ombudspersons
A. Meaning and Background
2. Background [page 2]
… The National Human Rights Commission of Korea recommended the Korean government to establish a NAP on business and human rights in September 2016.
C. Current Status
1. Domestic Status [page 3]
- Following the adoption of the ‘UN Guiding Principles on Business and Human Rights’ in 2011, various follow-up measures are being pursued to realize the guiding principle internationally.
…
– The National Human Rights Commission of Korea also announced ’National Human Rights Policy Basic Plan Recommendation of Business and Human Rights’ on September 2016.
…
Read more about National Human Rights Institutions/ Ombudspersons
Non-financial reporting
South Korea’s NAP makes no reference to non-financial reporting.
Non-judicial grievance mechanisms
D. Tasks for the Third NAP
Enhance the Effectiveness of Grievance Settlement-Relief Process
1. Relieve damage of humidifier disinfectants and prevent recurrence [page 6]
- Actively push ahead the relief efforts according to ｢Special Act on Remedy for Damage Caused by Humidifier Disinfectants｣(’17. 8. 9.)
– Expand the approval of damaged disease by government through setting ‘Remedy for Damage Committee’ and ‘Remedy Account Management Committee’.
– Support making an extra remedy account to aid victims who were excluded from government aid (125 billion won), actively find more victims, make the best use of emergency medical support system, and expand monitoring on victim’s health.
– Conduct psychological counseling for victims and the bereaved (conduct online and face-to-face counseling to mentally ill patients with anger, sense of guilt, etc.).
…
3. Enhance the effectiveness of government-based remedy
- Benchmark advanced countries who have operated NCPs for a long time through the OECD peer review process.
- Improve the operation of NCP.
– Diversify the composition of organization to make possible for neutral and professional personnel to participate
– Share best practices of foreign objection to enhance the effectiveness of guidelines
– Expand the participation of the persons concerned including NGOs, employer’s federation, etc. - Strengthen consistent promotion on the NCP system including its functions.
- Educate Korean companies overseas on human rights.
OECD National Contact Points
C. Current Status
1. Domestic Status [page 3]
- According to ‘Operation Rules for National Contact Point (NCP) for Implementing OECD Guidelines for Multinational Enterprises’ enacted in 2001, NCP was established within the Ministry of Trade, Industry and Energy. But considering the fact that it is insufficient to prevent human rights violations of corporations, NCP amends operational rules and strengthens the diversity and professionalism of its members.
…
2. Implementation of the Second NAP [page 4]
- Improvement of OECD Guidelines for Multinational Enterprises National Contact Point (NCP)
– Held meetings and seminars for overseas Korean companies to promote the implementation of OECD Guidelines.
– Operated NCP website (www.ncp.or.kr) and opened English website.
– Diversified the composition of the members as requested in the OECD Guidelines and professionalized the operational procedures.
…
D. Tasks for the Third NAP
Enhance the Effectiveness of Grievance Settlement-Relief Process
3. Enhance the effectiveness of government-based remedy [page 6]
- Benchmark advanced countries who have operated NCPs for a long time through the OECD peer review process.
- Improve the operation of NCP.
– Diversify the composition of organization to make possible for neutral and professional personnel to participate
– Share best practices of foreign objection to enhance the effectiveness of guidelines
– Expand the participation of the persons concerned including NGOs, employer’s federation, etc. - Strengthen consistent promotion on the NCP system including its functions.
…
Persons with disabilities
D. Tasks for the Third NAP
Institutionalization of Human Rights Management
3. Public procurement considering social responsibility [page 5]
- Highly recommend to apply the guidelines which reflects the corporate social responsibility.
– Give additional credit points to companies which are ‘female·disabled friendly companies’ and which offer work-learning dual program following the guidelines of qualification examination on goods purchase(Public Procurement Guidelines).
– Give additional 10% point on management condition mark when female·disabled friendly companies or social enterprises record construction ratio over 30% according to detailed guidelines of qualification examination on facility construction (Public Procurement guidelines).
…
Policy coherence
D. Tasks for the Third NAP
Institutionalization of Human Rights Management
1. Secure corporate responsibility on human rights [page 4]
… (3) Government should provide necessary support and legal, policy, and institutional arrangements for corporations to fulfill their human rights responsibilities.
…
7. Prevent human rights violations to local workers in Korean companies overseas [page 6]
- Share major issues and establish a cooperation system with related domestic and foreign institutions
…
Privatisation
The South Korean NAP does not make an explicit reference to privatisation.
Public procurement
C. Current Status
1. Domestic Status [page 3]
- Revision of 「Procurement Business Act」 and addition of an article promoting corporate social responsibility on January 2016.
* Article 3-2 (Encouraging Social Responsibility)
The administrator of the Public Procurement Service may reflect social and environmental values such as environment, human rights, labor, employment, fair trade, and consumer protection in the procurement process to encourage corporate social responsibility.
…
2. Implementation of the Second NAP [page 4]
- Promotion of social responsibility, including respect for human rights in managerial activities
– Revision of 「Procurement Business Act」 and addition of an article promoting corporate social responsibility on January 2016.
…
D. Tasks for the Third NAP
Institutionalization of Human Rights Management
3. Public procurement considering social responsibility [page 5]
- Revise related institutions and bylaws with newly organized clause in 「Government Procurement Act」 which promotes social responsibility.
- Highly recommend to apply the guidelines which reflects the corporate social responsibility
– Give additional credit points to companies which are ‘female·disabled friendly companies’ and which offer work-learning dual program following the guidelines of qualification examination on goods purchase(Public Procurement Guidelines).
– Give additional 10% point on management condition mark when female·disabled friendly companies or social enterprises record construction ratio over 30% according to detailed guidelines of qualification examination on facility construction(Public Procurement guidelines).
Security sector
South Korea’s NAP makes no reference to the security sector.
Small & medium-sized enterprises
South Korea’s NAP makes no reference to small and medium-sized enterprises (SMEs).
State Owned Enterprises/ Public Private Partnerships
South Korea’s NAP makes no reference to state owned enterprises or public-private partnerships.
Read more about State Owned Enterprises/ Public Private Partnerships
Supply chains
D. Tasks for the Third NAP
Institutionalization of Human Rights Management
1. Secure corporate responsibility on human rights [page 4]
…
(2) To the extent possible, corporations should pay attention to prevent human rights violations happening at supply chain such as business partners or supplying companies.
…
Taxation
South Korea’s NAP makes no reference to taxation.
The 2030 Agenda for Sustainable Development
South Korea’s NAP makes no reference to sustainable development.
Tourism sector
The South Korean NAP does not make an explicit reference to the tourism sector.
Trade
C. Current Status
1. Domestic Status [page 3]
- Revision of 「Procurement Business Act」 and addition of an article promoting corporate social responsibility on January 2016
* Article 3-2 (Encouraging Social Responsibility)
The administrator of the Public Procurement Service may reflect social and environmental values such as … fair trade, … in the procurement process to encourage corporate social responsibility.
…
Workers’ rights
C. Current Status
1. Domestic Status [page 3]
- Increased discussion of corporate social responsibility as a result of human rights issues such as low wages, … , poor working environment, … in the management process of multinational corporations.
- Revision of 「Procurement Business Act」 and addition of an article promoting corporate social responsibility on January 2016
* Article 3-2 (Encouraging Social Responsibility)
The administrator of the Public Procurement Service may reflect social and environmental values such as … human rights, labor, employment, … in the procurement process to encourage corporate social responsibility.
…
D. Tasks for the Third NAP
Institutionalization of Human Rights Management
2. Establish and implement measures for corporate sustainability management [page 5]
- Reflect ‘respecting human rights·prohibition on discrimination’ ‘work-life balance’ on the criteria of factual survey on corporate sustainability management and reward assessment.
…
7. Prevent human rights violations to local workers in Korean companies overseas [page 6]
- Share major issues and establish a cooperation system with related domestic and foreign institutions.
- Open local briefing session on labor management for Korean companies oversea and domestic briefing session for companies scheduled to go abroad.
- Publish and provide data of labor management country-by-country.
