South Korea Lawmaker Reintroduces Mandatory Supply Chain Due Diligence Bill

South Korea has recently reintroduced a mandatory human rights and environmental due diligence (mHREDD) bill - the Act on the Protection of Human Rights and the Environment for Sustainable Business Management.

This revised legislation, initially introduced in September 2023, requires large companies (over 500 employees or c. USD 150 million in annual revenue) to identify, prevent, and address human rights and environmental risks throughout their operations and supply chains, aligning South Korea with international best practices such as the UN Guiding Principles for Business and Human Rights. Non-compliance could result in financial penalties and criminal liability.

The bill's reintroduction highlights a growing global demand for corporate accountability and ethical supply chains, particularly as export-driven economies like South Korea face potential forced labour import bans from major markets such as the US and EU. 

This move is a crucial step for South Korea to enhance its responsible business leadership and safeguard workers, support ethical trade, and maintain global competitiveness in a landscape where other Asian nations such as Thailand are also developing similar due diligence frameworks.