[Law Firms Now] Yoon & Yang Successfully Concludes 'Corporate Risks and Response Systems Amid the Institutionalization of Sustainability' Seminar

Held jointly with the Korea Chamber of Commerce and Industry on the 22nd
Around 100 corporate legal and ESG professionals attend
Companies explore practical response measures ahead of legislation

A seminar organized by Yoon & Yang (Managing Partner Lee Myung-soo) to explore how companies can respond ahead of the enactment of ESG disclosure requirements has concluded successfully.

On the 23rd, Yoon & Yang said that the seminar, titled “Corporate Legal Risks and Response Systems Amid the Institutionalization of Sustainability,” which it co-hosted with the Korea Chamber of Commerce and Industry the previous day at its training center in Gangnam-gu, Seoul, was held successfully, with around 100 corporate legal and ESG professionals in attendance.

The scene at the seminar “Corporate Legal Risks and Response Systems Amid the Institutionalization of Sustainability,” hosted by Hwawoo Law Firm and the Korea Chamber of Commerce and Industry at the Hwawoo Training Center in Gangnam-gu, Seoul, on the 22nd. Hwawoo Law Firm

The seminar was organized as sustainability issues emerge as key business risks that boards and executives must manage directly, amid the introduction of mandatory sustainability disclosures under the Capital Markets Act in 2028 and tighter global supply chain regulations. It aimed to review key legal issues and conflicts between domestic and foreign laws, and explore feasible response strategies for companies.

The seminar began with opening remarks by Shin Seungguk, head of Yoon & Yang’s ESG Center, followed by presentations on four topics addressing key ESG risks and a question-and-answer session.

Lee Gwanguk, a partner at Yoon & Yang’s ESG Center, gave the first presentation, titled “Legal Liability for Sustainability Disclosures and the Establishment of Governance.” He examined the legal responsibilities of boards arising from mandatory disclosures. Emphasizing that Supreme Court precedents include the duty to ensure internal control systems are functioning as part of directors’ duty to monitor, Lee urged companies to “clearly allocate responsibilities among the board, management, the ESG department, and the legal team before the first disclosure, and keep thorough records of their actions.” He also noted that the three-year exemption clause in an amendment proposed in the National Assembly is limited to liability under the Capital Markets Act, and does not exempt companies from liability for knowingly making false disclosures or directors’ liability under the Commercial Act.

In the second session, Cho Seongmun, director of the Green Transition Office at the Korea Environmental Industry & Technology Institute, presented on “Domestic and International Greenwashing Standards and Strategies for Responding to Tighter EU Regulations.” Cho noted that terms such as “eco-friendly” and “low-carbon” may constitute false or misleading advertising if they are not supported by objective evidence. He added that under the EU’s Empowering Consumers for the Green Transition Directive (ECGT), which took effect in September, general environmental claims without substantiation, including carbon-neutrality claims based on carbon offsets, are strictly restricted.

In the third session, Hwang Geunsik, head of the Sustainability Assurance Research Center at the Korean Institute of Certified Public Accountants, presented on “Institutionalizing Sustainability Disclosure Assurance and Enhancing Internal Controls.” Hwang said that assurance of domestic disclosures is scheduled to become mandatory from 2030, and noted that the International Standard on Sustainability Assurance (ISSA 5000) defines greenwashing as a misstatement due to fraud. He advised companies to document the basis for their materiality assessments and have legal experts review the appropriateness of their disclosure language in advance.

Shin Seungguk, head of the ESG Center at Hwawoo, delivers opening remarks at the seminar “Corporate Legal Risks and Response Systems Amid the Institutionalization of Sustainability,” held on the 22nd at the Hwawoo Training Institute in Gangnam-gu, Seoul. Hwawoo.

In the final, fourth session, Lee Geunwoo, a partner at Yoon & Yang’s ESG Center, presented on “Global Supply Chain ESG Regulations and Responding to Conflicts Between Domestic and Foreign Laws.” Lee pointed to the risk of “double compliance,” in which U.S. and EU due diligence and sanctions requirements may conflict with Chinese laws, as well as the possibility of conflicts with domestic labor, personal information protection, and fair trade laws. He advised that “legal-based responses are essential throughout the process of establishing a due diligence system, including by reviewing in advance whether domestic and foreign laws conflict and whether disclosure language carries a risk of greenwashing.”

Lee Myung-soo, managing partner of Yoon & Yang, said, “As sustainability becomes part of regulatory frameworks such as disclosure, assurance, and supply chain due diligence, it has become a legal risk that boards and executives must manage directly.” He emphasized that “it is more important than anything else to proactively identify conflicts between domestic and foreign laws and establish a response system that can be applied immediately in practice.”

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