ILO and KIET Hold Dialogue on Enhancing Labour Standards in Multinational Enterprises

Research Workshop on Responsible Business Conduct and Human Rights Due Diligence in Korea Highlights Key Insights and Recommendations.

On December 10, 2024, the International Labour Organization (ILO) and the Korea Institute for Industrial Economics and Trade (KIET) hosted a research validation workshop in Seoul, focusing on the labour dimension of Responsible Business Conduct (RBC) and Human Rights Due Diligence (HRDD) in Korea. The workshop aimed to present preliminary findings of a research study conducted from July to December 2024 under a Memorandum of Understanding (MOU) between the ILO and the Korea National Research Council for Economics, Humanities, and Social Sciences (NRC). It provided an opportunity to gather feedback from stakeholders, foster collaborative dialogue, and shape future policies and practices related to RBC and HRDD in Korea.

Opening Speeches Emphasize Timeliness of Research

The workshop began with opening remarks from key figures, including Mr. Dong Cheon Shin, Chairperson of NRC; Mr. NamHoon Kwon, President of KIET; and Ms. Emily Sims, Senior Specialist at the ILO. The speakers highlighted the increasing importance of RBC and HRDD in Korea, particularly due to the country’s strong presence of multinational enterprises (MNEs), which operate globally and face mounting pressures to meet international standards of business ethics and human rights.

Keynote Speakers Provide Global and National Insights

Two distinguished keynote speakers offered critical perspectives on the evolving landscape of RBC and HRDD.

Prof. Pichamon Yeophantong, Head of Research and Associate Professor at Deakin University, also incoming Vice President of the UN Working Group on Business and Human Rights, delivered a detailed analysis of the global progress and challenges in implementing HRDD, framed by the UN Guiding Principles on Business and Human Rights. Her presentation focused on the complexities of enforcing HRDD and the persistent gaps in business practices related to human rights.

Prof. Joonkoo Lee, Professor at Hanyang University and advisor for the 2017 revision of the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration), provided insights into how labour governance within global value chains impacts Korean enterprises. His talk highlighted the opportunities and challenges faced by Korean MNEs as they navigate international labour standards and human rights due diligence.

ILO’s Approach to RBC and HRDD

Ms. Emily Sims from the ILO offered a comprehensive overview of the ILO’s approach to RBC and HRDD, emphasizing the ILO MNE Declaration as a key framework for guiding enterprises, governments, and social partners in adopting responsible business practices. She also introduced practical tools and resources to support enterprises in implementing HRDD effectively, ensuring that human rights are respected across business operations.

Research Findings and Real-World Insights from SK C&C

Mr. Jaehan Cho, Director of the Industrial Innovation Policy Division at KIET, presented key research findings on the impact of HRDD practices in Korea. He discussed the challenges and opportunities for Korean businesses in integrating HRDD into their operations. A representative from SK C&C, one of Korea's largest MNEs, shared practical examples of how the company has implemented HRDD within its supply chains and corporate governance, providing real-world context to the findings.

Roundtable Discussion and Stakeholder Perspectives

The workshop culminated in an interactive roundtable discussion, bringing together representatives from key organizations such as the Ministry of Employment and Labor (MoEL), Korea Employers’ Federation (KEF), Korea Chamber of Commerce and Industry (KCCI), Federation of Korean Industries (FKI), Korea Federation of SMEs (KBIZ), Federation of Korean Trade Unions (FKTU), and Korea International Trade Association (KITA). Participants engaged in discussions about the practical challenges and opportunities of implementing HRDD in Korean enterprises. They emphasized the need for greater awareness, enhanced social dialogue, and the integration of HRDD practices into national policy frameworks.

Key priorities identified during the roundtable included improving stakeholder coordination to enhance policy coherence and ensuring that HRDD practices are embedded in Korea’s business culture. The dialogue also focused on developing strategies to support businesses in adopting these practices and making them more accessible for SMEs and other smaller enterprises.

Research Report and Future Directions

The feedback and insights from the workshop will inform a detailed research report, set to be published in February 2025. This report will provide actionable recommendations for Korean enterprises and policymakers to strengthen HRDD practices, align business operations with international labour standards, and enhance the implementation of the ILO’s MNE Declaration. The recommendations aim to foster sustainable and responsible business practices across Korea and its global supply chains, positioning the country as a leader in advancing human rights and fair labour practices in the global economy.

By collaborating with various stakeholders, including business leaders, policymakers, and civil society representatives, the research validation workshop has set the stage for a more inclusive and responsible approach to business conduct and human rights in Korea, contributing to the broader global movement towards sustainable development and ethical business practices.