MOTIE Holds Meeting with Major Companies
Exploring Outreach Strategy Toward the EU
The Ministry of Trade, Industry and Energy announced on the 4th that, ahead of the final approval of the revised proposal for the European Union (EU) Corporate Sustainability Due Diligence Directive (CSDDD), it held a public-private joint meeting to preemptively discuss the impact on Korean industries and future response measures. The meeting was attended by related organizations such as KOTRA, the Korea International Trade Association, the Korea Industrial Complex Corporation, and the Korea Institute for Industrial Economics and Trade, as well as major companies including Samsung Electronics, LG Energy Solution, and Hyundai Motor Company.
The original EU Corporate Sustainability Due Diligence Directive was to take effect in July 2024 and be phased in from 2027. However, in February 2025, the European Commission proposed a revision that would partially ease companies' due diligence obligations and postpone the application timeline by one year in order to enhance the competitiveness of EU companies. A final revised text, reflecting amendments from the EU Council and the European Parliament, reached a trilogue agreement in December last year and is now awaiting the Council's final approval after passage by the Parliament.
At the meeting, participants agreed that while the EU revision could partially reduce the burden on companies by narrowing the scope of covered entities, adjusting the scope of due diligence, and easing the level of fines for violations, there are still remaining elements that could impose compliance burdens on Korean companies. They shared the view that it is necessary to closely monitor the process of developing CSDDD guidelines and the progress of domestic legislation in each member state. In addition, the government and companies reviewed the status of their preemptive responses to date and agreed to further strengthen cooperation between the government and industry so as to minimize corporate burdens during the implementation of the revised regime.
The ministry, together with the participants, sought an effective outreach strategy toward the EU to convey a position that faithfully reflects the realities of Korean companies, based on opinions gathered from the industry through corporate awareness and response surveys, as well as sector-specific briefings and consultations.
Lee Jaekeun, Director-General for New Trade Strategy at the Ministry of Trade, Industry and Energy, said, "The CSDDD is an important issue that can directly affect the management strategies and supply chain management practices of our exporting companies. The government will thoroughly review the state of preparations ahead of the entry into force of the revised directive and will actively consult with the EU side so that guidelines can be drawn up that minimize the burden on our companies, through close communication with industry."
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