MOTIE Holds Meeting with Major Companies
Exploring Outreach Strategy Toward the EU
The Minisattempt of Trade, Indusattempt and Energy announced on the 4th that, ahead of the final approval of the revised Corporate Sustainability Due Diligence Directive (CSDDD) of the European Union (EU), it held a joint public-private meeting to preemptively discuss the impact on Korean industries and future response measures. The meeting was attconcludeed by related organizations such as KOTRA, the Korea International Trade Association, the Korea Industrial Complex Corporation, and the Korea Institute for Industrial Economics & Trade, as well as major companies including Samsung Electronics, LG Energy Solution, and Hyundai Motor Company.
The original EU CSDDD was scheduled to take effect in July 2024 and be phased in starting in 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. The final revised draft, reflecting the amconcludements proposed by the EU Council and the European Parliament, reached a trilogue agreement in December last year and is now awaiting the Council’s final approval following the Parliament’s concludeorsement.
At the meeting, participants acknowledged that the revised EU directive would, to some extent, ease the burden on companies by reducing the number of companies subject to the rules, adjusting the scope of due diligence, and lowering the level of administrative fines for violations. At the same time, they agreed that some elements that could still impose compliance burdens on Korean companies remain in place, creating it necessary to closely monitor the process of preparing detailed 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 indusattempt so that the burden on companies can be minimized during the implementation of the revised system.
The minisattempt, drawing on feedback collected from indusattempt through surveys on corporate awareness and response, as well as sector-specific briefings and consultations, worked with participants to explore an effective outreach strategy toward the EU that would convey a position fully reflecting the realities of Korean companies.
Lee Jaekeun, Director-General for New Trade Strategy at the minisattempt, stated, “The CSDDD is a critical issue that can directly affect the management strategies and supply chain management practices of our export companies. The government will closely review the state of preparedness ahead of the enattempt into force of the revised directive, and through close communication with indusattempt, will actively consult with the EU so that guidelines can be drawn up that minimize the burden on our companies.”
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