With increased public scrutiny and discussions on corporate social responsibility and sustainability management, more and more emphasis is being placed on companies to fulfill their roles and duties as a corporate citizen by contributing to the mutually beneficial coexistence with its investors, business partners, consumers, local communities and other stakeholders. The term “ESG” refers to environment, social and governance, and the inclination of investors and consumers to invest into and purchase products from companies that have incorporated ESG values into their business activities is the key incentive for companies to engage in ESG-friendly corporate management. In an effort to accomodate this social trend, the Korean government is expected to actively introduce policies, laws and regulations that promote ESG-friendly corporate activities such as emissions trading scheme, sustainability management, and more. Further, regulatory authorities and other interested parties are expected to request disclosure of a company’s ESG management status and apply various disadvantages such as withdrawal of investments and product boycotts to those companies with poor ESG indicators.

In light of these trends, Lee & Ko has established an ESG team capable of providing a one-stop full service on all ESG-related issues by integrating its ESG-related practices that had been conducted by Corporate M&A, Environment, Occupational Safety and Health, Compliance and Labor & Employment teams. Based on the vast and extensive knowledge, experience and expertise that has been accumulated, we are committed to provide the best ESG consulting and legal advice to our clients in this increasingly important sector.

Our ESG Team currently consists of attorneys and experts specialized in ESG-related matters with a wide array of hands-on experience that are capable of addressing and providing effective legal advice and services on all of our client’s potential needs. Our ESG Team is advised by Chemin RIM, former Minister of Health and Welfare, and led by Sang Gon KIM, one of the top industry experts in corporate governance matters, with Tong Keun SEOL, a leading expert in environmental and occupational safety and health issues, managing the team at the working level. In addition, other market-leading experts – corporate compliance expert Kyunghoon LEE, long-time white collar defense and risk prevention expert Jae Deog BAE, labor, employment and human rights management expert Hyunseok SONG, ESG-related investment and finance expert Hyunjoo OH, antitrust expert Hwan JEONG, and personal information and data privacy expert Hwan Kyoung KO – systemically cooperate to provide comprehensive legal services to our clients in connection with ESG-related matters.

Based on our accumulated experience and the dedication and understanding of our clients and their businesses, Lee & Ko’s ESG Team is pioneering the ESG-related legal services market in Korea by providing swift and effective advice on ESG-related matters that are incomparably customized to the client’s needs.

Expertise

1. Comprehensive Investigation and Regulatory Compliance

As Korea’s regulatory framework continues to evolve, companies must analyze and seek strategic responses to the management risk associated with ESG-related regulations that have been or will be introduced. Our ESG Team provides assistance to clients in ensuring compliance with ESG-related laws and regulations, in addition to providing advice on lawful implementation of corrective measures for any known violations and the required approvals and permits that must be obtained to ensure compliance. Our ESG Team also provides education and training on ESG-related matters at the client’s request, and if needed, engages in a comprehensive company-wide investigation to verify compliance with various ESG regulations and provides assistance on reporting requirements to the competent authorities.

2. Customized ESG Strategies for Each Industry

Since different industries are subject to different business environments, ESG standards will inevitably vary depending on the industry. Accordingly, our ESG Team provides advice and consulting services on ESG-related matters that are customized to the client’s needs and industries.
In the finance sector, we provide services that enable our clients to consider ESG-related factors throughout the entire stages of the investment, from fund formation to liquidation. Our ESG Team assists investors and financial institutions to direct their investments into ESG-friendly targets and to adopt and implement international ESG best practices such as the UN Global Compact, UN Guiding Principles on Business and Human Rights, and UN Principles for Responsible Investment.
In the mining and construction sectors, we provide comprehensive advice that encompasses not only environmental and occupational safety and health issues but also labor & employment, human rights, corporate governance and anti-corruption issues as well, and in case our clients are found to be in violation of any applicable laws or regulations, we will actively take the lead in advising our clients to correct such non-compliance.
In the manufacturing sector, increased preference for environment-friendly products by consumers have urged regulatory authorities to demand disclosure of information on operations on manufacture/distribution of products as well as on general management. Our ESG Team assists our manufacturer clients in proactively adjusting to the changing ESG laws and regulations, and in case our clients are found to be in violation of any applicable laws or regulations, we will actively take the lead in advising our clients to correct such non-compliance.

3. Identification of and Cooperation with Related Stakeholders

In order to provide effective legal services on ESG-related issues, smooth and efficient work streams must be established in responding to domestic and foreign license/approval competent authorities as well as in preventing and resolving potential conflicts with NGOs, labor unions and local residents. Our ESG team provides clients with the most effective solutions by utilizing a comprehensive strategy that considers the ESG-related issue from multiple perspectives, such as preparing legal opinions in response to regulatory actions, requesting official authoritative interpretations from governmental authorities, responding to civil petitions and implementing negotiation strategies.

4. Comprehensive Due Diligence and Evaluation

When considering any business expansion, whether through M&As, pursuit of a new business or an expansion of the manufactured products portfolio, ESG due diligence should be actively performed to identify in advance and minimize any associated management risks. Since there is usually a limited amount of time and resources available to support this due diligence, our ESG Team systematically cooperates with other specialist teams of Lee & Ko to efficiently conduct ESG due diligence in conjunction with due diligence of other sectors, and in this case, our clients are better able to assess the associated management risks by reviewing a comprehensive due diligence report.
Our ESG Team also supports clients in achieving high scores on their ESG evaluations by conducting preliminary evaluations of the client’s business activities for each ESG evaluation indicator and implementing improvement measures on those that are inadequate.

5. Preparation and Support in ESG Reporting

Our ESG Team assists clients in preparing ESG-related disclosures and reporting materials as well as in responding to the various ESG evaluation authorities in order to ensure that the clients' ESG achievements are properly delivered and communicated.

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Major Cases

Advised numerous pharmaceutical companies, power plants and logistics companies on company-wide regulatory compliance issues
Provided advice and representation in connection with litigation concerning leakage of metal from water purifiers
Provided advice and representation in connection with litigation concerning humidifier disinfectants
Advised multinational daily consumer goods manufacturer on implementation of Standard Operation Procedures
Provided advice on environmental issues concerning Yeosu Industrial Complex
Provided advice on environmental and restoration issues on adjacent environment of refinery
Advised coal power plant on compensation for suspension of operations to reduce fine dust pollution
Advised cement companies on reduction of greenhouse gas emissions
Provided cooperative services with a professional product safety evaluation organization in connection with toxicity evaluation of chemical products
Provided advice on licenses and approvals required for the importation and distribution of automobiles
Provided advice on corporate social responsibility and contribution to public welfare such as establishment of scholarship foundations
Advised client on investment to SSP (Sharing Solar Power) projects
Advised RE100