Read the Initial Assessment published by the NCP 24 June 2025: English, Korean
On 2 October 2024, the Korean Metal Workers’ Union (KMWU) and the Korean Confederation of Trade Unions (KCTU) submitted a specific instance to the Korean NCP, alleging that two companies, one Nitto Denko, a Japanese publicly traded manufacturing company producing industrial and electronic materials, and the other LG Display, a Korean publicly traded company producing OLED and LCD panels for TVs and other electronics, had both not observed the General Policies (Chapter II) and Employment and Industrial Relations (Chapter V) provisions of the Guidelines. Specifically, the complainants alleged against Nitto Denko that, in the liquidation of its subsidiary Korea Optical High Tech (KOHTECH) following a factory fire, it violated workers’ rights, withheld management information from the union, neglected to mitigate unfair dismissals, and condoned retaliatory actions such as filing damage claims against workers. With regard to LG, the complainants alleged that, following the fire at KOHTECH, LG’s shift to another supplier caused adverse impacts on KOHTECH workers, and that LG allegedly failed to address these impacts or provide remedies for the resulting dismissal.
The Korean NCP co-ordinated with the Japanese NCP, as Nitto Denko is based in Japan. A specific instance raising similar issues was also submitted to the Japanese NCP. The two NCPs agreed that the Korean NCP would act as the lead for the instance submitted in Korea, and the Japanese NCP would do the same for the instance submitted in Japan, while maintaining close co-operation throughout the process.
On 24 June 2025 the Korean NCP (KNCP) published its initial assessment, deciding to accept the case for further examination with regard to Nitto Denko and to offer its good offices to the parties. However, the Korean NCP decided not to accept the specific instance concerning LG Display, stating that it was difficult to establish a link between the enterprise and the issues raised, and that examining the matter would not contribute to the purposes or effectiveness of the Guidelines.
While not examining the specific instance with regard to LG Display further, the KNCP nevertheless recommended that LG Display strengthen its due diligence efforts across its supply chain to ensure the effective implementation of the Guidelines and to systematically minimise or address adverse impacts arising from its business operations.