S. Korea: Civil society questions Hyundai Motor & Kia on due diligence after deadly supplier factory fire
“Hyundai motor/Kia: Korea Transnational Corporations Watch Network issues query on supply chain human rights due diligence following safety industrial fire disaster” 21 April 2026
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3. On 20 March 2026, a major fire at the Anjun Industry plant in Daedeok District, Daejeon, resulted in the deaths of 14 workers and injuries to around 60 others. In connection with the incident, five individuals, including the company’s chief executive, have been booked on charges of occupational negligence resulting in death and injury, and an investigation is also underway for alleged violations of the Serious Accidents Punishment Act (as reported by YTN on 24 March 2026, among others).
4. Anjun Industry is a manufacturer and supplier of engine valves for automobiles and ships, and is a key first-tier supplier providing core engine components to Hyundai Motor and Kia. The company has supplied approximately 70% of its total valve production to Hyundai Motor and Kia, while the Hyundai Motor Group accounts for nearly half of the company’s total valve supply. Safety Industrial is reportedly a core supplier providing engine valves for almost all hybrid vehicle models of the companies (as reported by Seoul Economic Daily on 2 April 2026).
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5. Meanwhile, multiple media reports suggest that the fire disaster was not an isolated incident but the result of repeatedly accumulated safety risks that had been left unaddressed.
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7. However, despite the long-term accumulation of repeated and apparent safety risk signals at Safety Industrial, serious questions arise as to whether the companies’ supply chain due diligence systems functioned effectively to identify such risks in advance and prompt corrective action.
8. The KTNC Watch therefore submits the following queries to Hyundai Motor and Kia to ascertain the status of their supply chain human rights due diligence in relation to Anjun Industry, as well as their assessment of the incident and future plans:
- The status of supply chain due diligence conducted in relation to Safety Industrial
- Stakeholder participation in the risk identification process
- Exercise of leverage and corrective measures taken in response to identified risks
- Remedy for affected parties, measures to prevent recurrence, and integration of lessons into due diligence systems