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Specific Instances

Responsible Business Conduct with OECD Guidelines for Multinational Enterprises

Complaints Process

「 The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct  」

' the Guidelines '


are  recommendations jointly addressed by governments to multinational enterprises operating in or from adhering countries.

To enhance the effective implementation of the Guidelines, governments adhering to the OECD Declaration on International Investment and Multinational Enterprises establish a National Contact Point(NCP). Where concerns arise regarding a multinational enterprise’s observance of the Guidelines, a complaint referred to as a Specific Instance may be submitted to the relevant NCP.

Key Concepts

Complainant (or Submitting Party)

  • A complainant refers to an individual or organization raising concerns regarding the implementation of the Guidelines.
  • Any stakeholder including individuals, trade unions, or civil society organizations who has a legitimate interest and may be affected by the activities of a multinational enterprise may submit a Specific Instance.
  • It is also possible for one or multiple complainants to file a single submission against one or multiple enterprises. In the case of multiple enterprises, the submission must clearly describe the alleged conduct and supporting information for each respondent.
  • A complainant must disclose their identity to the Korean NCP when submitting an application, as anonymous submissions are not permitted. However, a complainant may request anonymity in the Initial Assessment or Final Statement published by the Korean NCP. The decision on whether anonymity will be granted is subject to the deliberation of the Korean NCP Committee.
  • No fees or charges are required to use the Korean NCP’s specific instance procedure. However, participation in the process may require a considerable amount of time and effort from the parties involved. Any expenses incurred during the procedure — including fees for legal representation and/or costs for interpretation or translation services in languages other than Korean or English — shall be borne by the complainant. (The Korean NCP provides support only in Korean or English.)

Respondent (or the Enterprise)

  • The respondent refers to the enterprise (parent company and/or local entity) whose activities are the subject of the Specific Instance.
  • A “multinational enterprise” refers to a company or group of companies that is established in one or more countries and is structured to coordinate its operations across two or more countries. (Article 2(1) of the Operating Rules).
  • In identifying which entities may be considered multinational enterprises for the purpose of the Guidelines, the international nature of an enterprise's structure or activities and its commercial form, purpose, or activities are main factors to consider in this regard.
  • The Korean NCP does not disclose sensitive business information submitted by the respondent during the handling of a specific instance without the consent of the parties concerned in the Initial Assessment or Final Statement published by the Korean NCP.
  • No fees or charges are imposed on the enterprise when a specific instance is submitted to the Korean NCP. However, any expenses incurred by the enterprise - such as costs for legal representation - shall be borne by the enteprise. To ensure an effective response, coordination may be required between the departments directly involved in the issues and the ESG-related units familiar with the Guidelines.

Specific Instance Procedure

Receipt and Coordination

Does the submission contain sufficient information for the NCP to conduct its review?
No → Request for
supplementary information
Yes → Receipt of the Specific Instance
Is the case related to another NCP?
(For example, where the alleged breach of the Guidelines occurred in a country where an NCP is established.)
No → Independently handled by the Korean NCP without Coordination between NCPs.
Yes → Coordination among NCPs (designation of the Lead and Supporting NCPs)

Initial Assessment 

Written exchange between the parties:
Submission
Response
Additional comments
Additional reply
Considering the six criteria of the Initial Assessment, does the case merit further examination?
No → Not Accepted
and the Initial Assessment published
Yes → Proceed to Good Offices
Initial Assessment published

Good Offices

  • Providing a platform for dialogue between the parties to help resolve the issues.
  • Depending on the issues raised in each case, a Mediation Committee (composed of three to five members) may be established to conduct the mediation process.
  • The KNCP aims to conclude the procedure within 12 months from the date of receipt (or 14 months if the case was under the coordination between NCPs).
  • The processing timeline may be extended with the consent of both parties.

Final Statement

Further examination may be conducted based on information obtained during the Good Offices process.
  • Was an agreement reached between the parties?
No → Recommendations included
Final Statement published
Yes → Agreed outcomes reflected
Final Statement published

Follow-up

The KNCP reviews the implementation of the agreement or recommendations in accordance with the timeline set out in the Final Statement.
Implementation progress
Follow-up Statement

Overview of the Procedure

(Phase 1) Receipt and Coordination

1-1. Receipt of Specific Instance (Article 14, Para. 1-5)

  • Submission: Any party (the Complainant) wishing to raise a specific instance regarding an enterprise's implementation of the Guidelines may file a complaint using Attachment No. 2 or via the online form on the KNCP website.
  • Review and Notification: Upon receipt, the KNCP reviews the format and substance of the application to determine its admissibility. The KNCP will notify the parties of whether the instance is officially received for review within one month.
  • Supplementation: The KNCP may request the Submitting Party to supplement the submission within one month. This supplementation period is excluded from the one-month deadline for the admissibility decision.
  • Grounds for Non-Receipt (Inadmissibility): The KNCP may decide not to officially receive a submission if:
    1. 1. The content or factual basis of the specific instance is significally insufficient or unclear.
    2. 2. A request for supplementation is unreasonably declined.
    3. 3. The procedure cannot proceed due to the enterprise's closure or unknown location.
    4. 4. The submission is based on the same facts as a previously concluded case.

1-2. Coordination between NCPs (Article 14, Para. 6)

  • If a case involves foreign NCPs (e.g.. issues occuring in multiple countries or involving multinational headquarters and subsidiaries), the KNCP will coordinate to designate a Lead NCP and Supporting NCP.

    (Note) If a relevant country is not an adherent to the Guidelines, "Coordination between NCPs" cannot take place, as no NCP exists in that country.

  • Notification and Initiation: In cases involving multiple adhering countries, the NCP that received the submission must notify all relevant NCPs at the earliest stage to initiate the coordination process.
  • Designation of Lead and Supporting NCPs: Coordination involves determining the "Lead NCP" and "Supporting NCP(s)" for the case. Once designated, the case will be handled according to the procedural rules of the Lead NCP.
  • General Principle for Lead NCP: Generally, the NCP of the country where the issues occurred (the host country) serves as the Lead NCP. However, other criteria may be applied if deemed necessary.
  • Timeline for Coordination: The KNCP will notify the parties of the results of the coordination within two months from the date of receipt. If necessary, this period may be extended by up to an additional two months.

(Phase 2) Initial Assessment (I.A.)

2. Initial Assessment (Article 15.)

  • Exchange of View: Before the assessment, the KNCP provides both parties with an opportunity to submit their opinions and supporting documents. This usually involves a structured exchange of written statements. (Request form → Response → Additional Comments → Additional Response)
  • Purpose: The Initial Assessment determines whether the issues raised merit further examination (investigation or mediation). It is not a judgment on whether the enterprise has violated the Guidelines.
  • Official Acceptance: If the KNCP decides to proceed with additional procedures, the case is considered officially accepted for mediation.
  • Nature of the Process: The process is non-judicial and based on voluntary participation. The KNCP cannot compel participation or order legal compensation.
  • Publication: The results are published as an Initial Assessment Statement on the KNCP website and reported to the OECD.

Six Criteria for Initial Assessment

  1. 1. Identity of the party and its interest in the matter.
  2. 2. Whether the issue is material and substantiated with credible information.
  3. 3. Whether the enterprise is covered by the Guidelines.
  4. 4. The link between the enterprise’s activities and the issue raised.
  5. 5. The impact of parallel proceedings (e.g., court cases) on the NCP’s ability to resolve the issue.
  6. 6. Whether examining the issue contributes to the Guidelines' purposes and effectiveness.

(Phase 3) Good Offices (Mediation)

3. Mediation (Article 16.)

  • Mediation Committee: For cases accepted for further examination, a dedecated Mediation Committee (3-5 members) is formed to offer good offices. The chairperson of the mediation committee shall be appointed from among the NCP members.
  • Confidentiality: Mediation is generally conducted in a confidential manner to facilitate open discussion between the parties.
  • Timeline: The KNCP aims to conclude the mediation within 12 months (14 months if coordination was involved). This may be extended with the consent of both parties using Attachment No. 6.

(Phase 4) Final Statement

4. Final Statement (Article 17, Para 1-5.)

  • The KNCP issues a Final Statement within three months after the mediation process concludes.
  • If agreement is Reached: The Final Statement includes the case details, the mediation process, the contents of any agreements reached and agreements reached and the timeline for disclosure agreed upon by the parties.
  • If agreement is failed: The Final Statement includes the case details, the mediation process, the aprties' arguments. The KNCP may also issue appropriate recommendations for the implementation of the Guidelines.
  • Publication: The results are published as a Final Statement on the KNCP website and reported to the OECD.

(Phase 5) Follow up

5. Follow Up (Article 17, Para 6-7.)

  • Following the 2023 Guidelines update, the KNCP actively monitors the implementation of agreements or recommendations.
  • The KNCP may request information from the parties or convene meeting to assess progress.
  • The results of these measures are published as a Follow-up Statement on the website and reported to the OECD.
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