What the Regulation Is — a Sales Ban, Not a Disclosure Rule
The EU Forced Labour Regulation (Regulation (EU) 2024/3015) applies from December 14, 2027. It prohibits placing or making available on the EU market, or exporting from the EU, any product made with forced labour.
Every product is covered: finished goods, components, raw materials, agricultural products and minerals alike, including online sales.One tainted stage is enough: if forced labour was used at any stage — extraction, harvesting, processing or manufacturing — the whole final product is banned in principle.How It Differs From the CSDDD — No SME Exemption
Under the Omnibus amendments, the Corporate Sustainability Due Diligence Directive (CSDDD) now covers only companies with more than 5,000 employees and over EUR 1.5 billion in turnover, and its application has been pushed back to July 2029. The Forced Labour Regulation regulates products, not companies, so there is no exemption by company size, sector or country of origin.
It creates no new due diligence obligation. But a company that cannot substantiate its position in an investigation will see its product withdrawn and disposed of.The US Uyghur Forced Labor Prevention Act (UFLPA) presumes that goods from a specific region are made with forced labour and leaves the importer to rebut it. Under the EU regulation, the authorities carry the burden of proof.How Investigations and Sanctions Work
Investigations are risk-based. The European Commission leads when the suspected forced labour is outside the EU; the competent authority of the relevant Member State leads when it is inside.
Preliminary phase: once the authority requests information, the company must respond within 30 working days.Investigation: the deadline for further submissions is 30 to 60 working days, and the authority aims to decide within nine months of opening the investigation.Decision: a ban on sale and export, withdrawal from the market, and disposal or recycling, with customs blocking the goods at the border.The Commission published its implementation guidelines on June 26, 2026. They cover the definition and indicators of forced labour, the investigative process, enforcement and penalties, and voluntary due diligence for companies, using the OECD six-step framework as the reference model. The database of forced labour risk areas and products foreseen by the regulation will shape investigation priorities, so its contents are worth checking.
Where Korean SMEs Are Exposed
Domestic worksites: the benchmark is the International Labour Organization's 11 indicators of forced labour. Typical red flags are recruitment fees borne by migrant workers (debt bondage), holding passports or bankbooks (retention of identity documents), restricting movement out of dormitories, excessive overtime and withholding of wages.Overseas sourcing: raw materials repeatedly linked to forced labour risk — cotton, polysilicon, aluminium, seafood and palm oil — need proof of origin.Indirect employment: the conditions of workers employed by in-house subcontractors and staffing agencies also count as part of your product's production stages.Preparing for the Requests EU Buyers Will Send
Buyers will want supplier evidence in hand before any investigation begins.
Likely requests: a supply chain map, proof of raw material origin, a working conditions self-assessment and third-party audit reports.Contract clauses: expect warranties that no forced labour is involved, audit rights and termination on breach. Push back on unlimited warranties covering second-tier suppliers and beyond that you cannot control — negotiate these down to a "reasonable efforts" standard and secure a cure period.Record keeping: assume a 30-working-day deadline and organize employment contracts, payroll records, recruitment channels and raw material purchase records by product.A Roadmap to December 2027
Q4 2026: list raw materials and suppliers for each export product and flag the high-risk items.First half of 2027: self-assess your own worksites against the ILO indicators and fix recruitment, dormitory and working-hours practices.Second half of 2027: collect supplier code-of-conduct commitments and run checks, operate a grievance channel, and complete your buyer response package.Available Support and KITIM Consulting
Existing government programs such as the K-ESG supply chain due diligence consulting include human rights and labour in their assessment items, so you can gauge where you stand at a lower cost.
KITIM supports companies in building a human rights management system, designing supplier checklists and preparing responses to buyer requests, and guides you through applying for the government programs you can use. If your EU export products need a forced labour risk review, please reach out through KITIM's consultation request.
