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ESG Weekly Review | South Korea Risk Spotlights for May 6-12, 2024

ESG Weekly Review | South Korea Risk Spotlights for May 6-12, 2024

ESG Weekly Review | South Korea Risk Spotlights for May 6-12, 2024

ESG Weekly Review | South Korea Risk Spotlights for May 6-12, 2024

FairLabs Team

May 13, 2024

Weekly ESG Risk Spotlight (May 6~12)



Key takeaways


  • Ongoing HYBE and Min Hee-jin Dispute:

    • The legal conflict between HYBE and Ador's CEO remains a notable issue within 'Competitive Behavior,' signifying deep-rooted challenges in the entertainment industry.


  • Surge in 'Data Security' Issues with LINE and GOLFZON:

    • The sudden prominence of 'Data Security' issues, underscored by significant data breaches at LINE and GOLFZON, marks a critical escalation in data protection concerns, now ranking 2nd among this week's controversies.


  • Persistent Concerns in Labor Practices and Employee Health & Safety:

    • The recurring issues within labor practices, particularly highlighted by ASIANA AIRLINES, and employee health & safety, significant concerns for SEAH BESTEEL HOLDINGS, underscore the ongoing challenges in ensuring fair labor practices and workplace safety.



  1. Competitive Behavior (19.04%)

  • HYBE's involvement in legal disputes over executive dismissal and shareholder agreement violations showcase significant governance challenges within the industry.


  • The difficulties faced by NAVER and KAKAO, concerning unfair practices and heavy regulatory scrutiny, reflect the intense competition and regulatory complexity in the tech sector.



2. Data Security (14.86%)

  • GOLFZON's massive data protection failure, making up 80.35% of the category, underscores the high stakes of cybersecurity management.


  • LINE’s data breaches further highlight the extensive impact of data security challenges across different segments of the tech industry.



3. Business Ethics (14.70%)

  • Daishin Securities faces scrutiny over supervisory neglect in Lime Fund product sales, holding a substantial share of 50.72% in this category.

  • The dispute between HYBE and Ador’s CEO and ethical issues surrounding Youngpoong Paper MFG’s M&A practices also highlight ongoing business ethics challenges.



4. Systemic Risk Management (8.66%)

  • SK Hynix and Samsung Securities tackle regulatory and operational challenges, including raids related to inflated IPO allegations and significant system disruptions.

  • NAVER contends with data breach concerns and government directives, reflecting varied dimensions of systemic risks across multiple sectors.



5. Data Security (5.01%)

  • NAVER faces critical challenges due to data security concerns, emphasizing the need for stringent measures to protect user information and secure internet media and services.



This week's ESG developments in South Korea reveal significant challenges across key sectors. Hyundai Motor Co. is central to escalating labor concerns, indicating a critical need for enhanced labor relations in the automotive industry. Concurrently, the entertainment sector faces ongoing ethical and competitive issues, highlighted by the dispute between HYBE and Min Hee-jin, underscoring the necessity for robust governance.

The rising importance of data security, led by NAVER's data breach concerns, emphasizes the urgency for stringent cybersecurity measures in the technology sector. These varied ESG challenges highlight the imperative for companies to adopt proactive management strategies and reinforce ethical practices to navigate the complex regulatory environment effectively.




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Reach Us

FAIR LABS CO., LTD.

83 Uisadang-daero, Yeongdeungpo-gu, Seoul

team@fairlabs.io

Copyright 2024. All Rights Reserved.

Reach Us

FAIR LABS CO., LTD.

83 Uisadang-daero, Yeongdeungpo-gu, Seoul

team@fairlabs.io

Copyright 2024. All Rights Reserved.