South Korean companies have collectively been fined over 2.5 trillion won for violating environmental, social, and governance (ESG) regulations abroad over the past decade, with Kolon Industries and Hyundai among the major offenders.
A recent report indicates that South Korean companies have incurred fines exceeding 25 trillion won (approximately 17 million USD) abroad due to violations of environmental, social, and governance (ESG) regulations over the past decade. According to CEO Score, a corporate data research institute, 46 South Korean companies faced a total of 217 penalties from foreign institutions from 2015 to 2025, reflecting a growing concern over corporate governance standards in the global marketplace.
The largest penalty was levied against Kolon Industries for infringing on DuPont's trade secrets in the U.S., resulting in a substantial fine of $360 million. Hyundai Motors and Kia followed with fines of $267 million and $179 million respectively for violations related to fuel efficiency and greenhouse gas emissions testing. This pattern underscores significant challenges that South Korean firms face in adhering to international ESG standards, especially as scrutiny from regulators globally continues to intensify.
The analysis also revealed that governance-related penalties accounted for a significant share of the total fines—around 80.5% or $139 million—pointing to prevalent issues with compliance in corporate governance practices. This trend illustrates the need for South Korean companies to enhance their adherence to ESG regulations, not only to mitigate financial losses but also to bolster their reputations in an increasingly conscientious global market.
