- ACRC “anticipates a heightened level of addressing the anti-corruption regulations, a key component of Environmental, Social, and Governance (ESG) management” -

The first “Integrity and Ethics Compliance Guideline for Business” will be introduced in the first half of 2023, which elaborates on details necessary for addressing strengthened anti-corruption regulations, a key component of Environmental, Social, and Governance (ESG) management.

The Anti-Corruption and Civil Rights Commission has been preparing a guideline for the “Integrity and Ethics Compliance Program (K-CP) for Business,” given the rising importance of international ESG disclosure and investment and the ceaseless occurrence of cases where domestic companies violate against the US　Foreign Corruption Practices Act.

※ International ESG disclosure standards, such as the Corporate Sustainability Reporting Directive

(CSRD) and the Sustainable Finance Disclosure Regulation (SFDR) of the European Union (EU), have been strengthened, and “anti-corruption” has become one of the four pillars of India-Pacific Economic Framework (IPEF), established in May 2022.

ACRC has been developing the first draft of the guideline working together with experts and stakeholders through meetings with policy advisory groups and operation of working groups of the economic organizations, following its decision of the direction of the guideline based on the analysis of domestic and foreign ESG disclosure and anti-corruption regulations and public discussion.

The guideline will include details necessary for addressing strengthened ESG management and anti-corruption regulations, such as managing supply chains and establishing systems for whistleblowing, with an aim to prevent and mitigate corruption-causing factors of businesses.

In particular, the guideline will provide detailed measures in the form of a checklist by including international guidelines and regulations in detail to ensure that businesses can easily understand and comply with them.

ACRC plans to support domestic companies to encourage their voluntary utilization of the K-CP by offering briefing sessions and educations after the guideline is published.

At the same time, ACRC plans to complement the “Integrity and Ethics Compliance Program Guideline for Public Institutions,” which was released last year, based on the results of a one-year trial operation.

ACRC has striven to spread the culture of integrity and ethical management in accordance with Article 12 (Functions) and Article 5 (Duties of Enterprises) of the “ACRC Act^*” and Article 3 (Support for Ethical Business Management) of the Enforcement Decree of the same Act.

* the Act on the Prevention of Corruption and the Establishment of the Anti-corruption and Civil Rights Commission

ACRC distributed the “Integrity and Ethics Compliance Program Guideline for Public Institutions” in June 2022 to every public institution, including state-owned companies, quasi-government agencies, and local public companies and bodies.

In addition, the Commission has been supporting public institutions to ensure that they voluntarily prevent and mitigate corruption risks, aligning with the integrity efforts indicator of the “Public Institutions Comprehensive Integrity Assessment.”

Moreover, ACRC conducts a trial operation of the K-CP, provides education, and releases monthly publications called “Integrity and Ethical Management Briefs.”

An ACRC Official said, “It is necessary for domestic companies to actively address strengthened ESG management and international anti-corruption regulations as the international status of Korea has improved. ACRC will remain dedicated to supporting businesses to ensure that they implement integrity and ethical management.”