The Bill at a Glance — What Was Proposed
On August 27, 2026, Rep. Park Ji-hye introduced the Human Rights and Environmental Due Diligence Act for Corporate Sustainability and Responsible Management. The goal is to help Korean companies respond to overseas rules such as the EU Corporate Sustainability Due Diligence Directive (CSDDD) and Germany's Supply Chain Due Diligence Act (LkSG).
Keep in mind that this is only a bill. It has not passed. The coverage thresholds, effective date, and penalties could all change during committee review. The bill follows the National Human Rights Commission's August 20 call for due diligence legislation. It is also separate from the "ESG Framework Act" being discussed in the National Assembly ESG Forum.
SMEs Are Exempt — So Why Prepare Now?
The bill targets large companies' own supply chains. To find and check risks, those companies will have to send questionnaires to their tier-1 and tier-2 suppliers, run on-site audits, and rewrite contract terms. The law applies to the large company, but much of the actual work lands on the SMEs that supply it.
Many large companies already check their suppliers to prepare for the EU CSDDD and the EU Forced Labour Regulation. A domestic law would likely widen that work from export supply chains to all domestic supply as well.
Korea's current K-ESG supply chain due diligence guidelines are voluntary. Once due diligence moves from a recommendation to a board-approved, publicly reported duty, buyers will need evidence behind their own reports. That changes what they ask of suppliers: saying "we comply" won't be enough, and you will need records that show it.
What Buyers Will Ask — Checkpoints by Area
Human rights
Environment
Lower tiers
Types of evidence
Buyers usually look for three things: policy documents, operating records, and a record of fixes made. The most common problem is having a policy but no records. If your work rules describe a grievance procedure but the complaint log is empty, a buyer will likely assume the procedure isn't actually used.
A Three-Step Roadmap for Supplier SMEs
Watch the contract terms. When clauses on due diligence cooperation, audit access, or termination for violations show up, check:
Available Support and How KITIM Can Help
Existing programs can help, such as the free K-ESG supply chain due diligence consulting and joint ESG support programs for large companies and SMEs. Timing and eligibility change each year, so check the current calls before applying.
As the bill moves through review, watch for:
KITIM helps supplier SMEs prepare for due diligence requests step by step, from a supply chain ESG self-assessment and building a human rights management system to preparing answers for buyers' ESG questionnaires. If you've received a buyer questionnaire or found new due diligence clauses in a contract, request a consultation with KITIM. We'll start by checking how much your current records already let you answer.