Preemptive Prevention Over Punishment Halves Greenwashing Violations in One Year

Focusing on Prevention Over Punishment

Unified Reporting Channel and Integrated Guidelines

Expected to Eliminate Redundant Regulation

The number of greenwashing (environmentally deceptive advertising) violations detected in South Korea has plummeted by half in just one year. Greenwashing refers to deceptive practices where companies exaggerate or falsely promote their products as environmentally friendly, even when they are not. This sharp decline suggests that a shift from a focus solely on enforcement and punishment to a 'preemptive prevention' approach—encouraging companies to voluntarily revise their advertisements—is yielding real results. The so-called 'overlapping regulations' that have long burdened companies are also expected to be dismantled within the year.

The Fair Trade Commission issued warnings to four SPA brands last year for greenwashing. The photo shows the Musinsa case that was caught for greenwashing at that time. Fair Trade Commission. Photo by Fair Trade Commission

Violations Plunge 50% in One Year... "Education Is More Effective Than Punishment"

According to the Ministry of Climate, Energy and Environment on March 19, there were a total of 1,275 greenwashing violations last year. This figure represents a 49.6% decrease compared to the 2,528 cases in 2024. Looking at the detection history over the past three years: there were 272 cases in 2021, 4,558 in 2022, and 4,935 in 2023. The number of violations peaked in 2023 and has been in decline for two consecutive years.

Notably, when comparing last year to 2024, the proportion of violations relative to the number of inspections has also sharply decreased. In 2024, a total of 12,806 cases were inspected, with 19.7% (2,528 cases) found to be violations. Last year, only 9.5% (1,275 out of 13,449 cases) were violations, essentially halving the previous rate.

This outcome is attributed to a shift away from post-violation punishment toward a 'preemptive prevention' administration, which emphasizes seller education and voluntary correction programs. The Ministry of Climate, Energy and Environment collaborated with 30 online commerce intermediaries to implement a keyword auto-filtering system, and more than 97% of violations discovered during last year's investigation—1,241 cases—were voluntarily corrected by the companies themselves.

A ministry official explained, "We strengthened preemptive prevention efforts because we recognized that many small business owners are unfamiliar with the regulations, rather than intentionally deceiving consumers. This has led to increased awareness," adding, "Proactive prevention measures are rapidly improving perceptions in the market."

The reason authorities are devoting such effort to managing greenwashing is closely tied to the global trend of tightening regulations. With major economies including the European Union strengthening greenwashing regulations, domestic awareness and vigilance around greenwashing are seen as crucial for the overseas competitiveness of Korean companies.

Fair Trade Commission and Ministry of Climate, Energy and Environment to Unify Channels... Ending 'Overlapping Regulations'

Currently, greenwashing regulations in South Korea are handled by two government bodies. The Ministry of Climate, Energy and Environment oversees the environmental aspects of 'products' based on the Environmental Technology and Industry Support Act, while the Fair Trade Commission monitors advertising activities for both products and overall 'businesses (companies)' based on the Act on Fair Labeling and Advertising.

However, as each ministry has operated its own guidelines and sanction procedures, dissatisfaction over ‘overlapping regulations’ has been growing. In a 2024 survey on greenwashing conducted by the Korea Chamber of Commerce and Industry with 100 companies, 90% of respondents said that the two ministries' guidelines should be unified. Additionally, 59% cited 'a lack of detailed guidelines and instructions' as a major challenge.

This 'overlapping regulation controversy' is also expected to be resolved. The Ministry of Climate, Energy and Environment and the Fair Trade Commission held their first working-level meeting last February and reached a broad agreement to establish an 'integrated investigation system' within the year. When reports on the same product or company are submitted to both agencies, a 'lead investigative body' will be designated, consolidating supporting documentation and notifying the results from a single source to unify sanctions. The creation and distribution of integrated guidelines is also being promoted.

A Fair Trade Commission official stated, "We will develop integrated guidelines so that companies need to reference only a single document, and we will work together to eliminate duplicate responses."

This content was produced with the assistance of AI translation services.