[Unofficial translation provided by the Business & Human Rights Resource Centre]

“Legislative Bill for the Act on the Protection of Human Rights and the Environment for Sustainable Business Management”, 4 November 2025

Bill No. 2213897 (4 November 2025)

Proposed by Representative Hong-bae Park and 14 other Members

429th National Assembly (Regular Session)

(a) The purpose of this Act is to regard the protection of life, safety, and fundamental rights of the people as the highest value of the national economy, and, by reflecting structural changes in industrial workplaces and global supply chains, to systematically prevent and mitigate human rights and environmental risks arising from business activities and supply chain management. Through such measures, the Act aims to contribute to the creation of fair and transparent supply chains, the realisation of effective remedies, and the development of a sustainable economic ecosystem in which both enterprises and citizens coexist in mutual prosperity (Article 1 of the Draft).

(b) The State shall establish and implement comprehensive policies necessary for the establishment and execution of a corporate human rights and environmental due diligence (EHRDD) system reflecting the characteristics of industrial sectors and supply chain structures. Local governments shall, in accordance with national policy, establish and implement policies necessary to build and carry out corporate EHREDD systems reflecting regional characteristics (Article 3).

(c) Business enterprises shall give primary consideration to the protection of human rights and the environment in their business operations and supply chain management, fulfil their duty of care within the scope in which they can effectively control and govern the occurrence of human rights and environmental risks, and prepare prompt and effective remedial measures in the event of harm (Article 4).

(d) The provisions of Chapter II, except Article 18, shall not apply to small and medium-sized enterprises (SMEs) or enterprises with fewer than 1,000 full-time employees or annual sales of less than KRW 500 billion, as prescribed by Presidential Decree (Article 6).

(e) Business enterprises shall establish policies including the basic direction and objectives of EHRDD, and persons responsible for management shall be in charge of the practical operation and supervision of EHRDD as a whole (Articles 7 and 8).

(f) Business enterprises shall establish and operate a grievance mechanism through which citizens or stakeholders may report or consult on human rights and environmental risks (Article 10).

(g) Business enterprises shall identify and assess existing or potential human rights and environmental risks within their supply chains at least once a year. Upon confirmation of any reported risks through the grievance mechanism, they shall promptly investigate and evaluate such risks, and, where risks are identified, establish and implement countermeasures (Articles 11 and 12).

(h) Business enterprises shall regularly evaluate the effectiveness of their countermeasures regarding human rights and environmental risks, and prepare a due diligence report including the results of EHRDD, and the establishment and implementation of relevant measures (Articles 13 and 14).

(i) Business enterprises shall publicly disclose major matters related to EHRDD, and citizens and stakeholders may request disclosure of information related to corporate EHRDD (Articles 15 and 16).

(j) A Human Rights and Environment Dispute Mediation Committee (hereinafter “the Committee”) shall be established under the Prime Minister to coordinate key matters relating to corporate activities respecting human rights and the environment, and to resolve disputes related to EHRDD (Article 19).

(k) Stakeholders may file an objection with the Committee regarding a company’s EHRDD. Upon investigation, if the Committee finds that the company has violated the Act or failed to fulfil its obligations thereunder, it may issue a prior recommendation or a corrective order (Articles 23–27).

(l) When the Committee issues a corrective order, the relevant enterprise shall comply within the prescribed period unless there is a justifiable reason. The Committee may directly inspect and manage the implementation of corrective orders (Article 28).

(m) Where a company causes damage to another person by violating this Act, it shall be liable for compensation (Article 31).

(n) Administrative fines shall be imposed on those who fail to report their EHRDD policies or due diligence reports, or who fail to identify or assess human rights and environmental risks (Article 35).