[Alpha Biz= Kim Jisun] Korean companies have been fined more than KRW 2.5 trillion (approximately USD 1.73 billion) over the past decade for violations of environmental, social, and governance (ESG) regulations overseas, according to a recent study.
On February 22, corporate data research firm CEO Score reported that a total of 46 Korean-headquartered companies, including their overseas subsidiaries, were penalized abroad between 2015 and 2025. The cumulative amount of fines reached USD 1.72895 billion, with a total of 217 enforcement cases recorded during the period.
The analysis was based on global regulatory violation and penalty data compiled by Violation Tracker Global, operated by the U.S.-based non-governmental organization Good Jobs First.
By company, Kolon Industries ranked first, incurring USD 360 million in fines. This was largely attributable to a 2015 case involving the misappropriation of DuPont’s Kevlar trade secrets in the United States, which resulted in USD 85 million in criminal fines and USD 275 million in damages.
The case is widely regarded as the first instance in which a foreign company without a physical business presence in the United States was found guilty in a U.S. criminal court.
Hyundai Motor ranked second with USD 267.39 million in penalties. The automaker was sanctioned for abusing market dominance at its Indian subsidiary in 2015, violating fuel economy and greenhouse gas testing regulations in the same year, and delaying recalls and reporting obligations related to engine defects in 2020.
Kia (USD 179.75 million) and Dongwon Industries (USD 113.47 million) also ranked among the top companies by total fines, equivalent to approximately KRW 260.6 billion and KRW 164.5 billion, respectively.
Annual penalty amounts showed significant volatility. Fines peaked in 2015 at USD 569.01 million, followed by USD 353.77 million in 2019. In contrast, penalties imposed last year totaled just USD 16.26 million, representing a 97.1% decline from 2015.
The number of regulatory cases was highest in 2018 and 2023, with 24 cases each, while 19 cases were recorded last year.
By ESG category, governance-related violations accounted for the largest share of total fines, reaching USD 1.39238 billion, or 80.5% of the overall amount. In contrast, social-related violations were the most frequent, with 113 cases, representing 52.1% of the total.
In the environmental category, Hyundai Motor recorded the highest amount of fines, followed by Kia and HD Construction Equipment. In the social category, Samsung Electronics ranked first, followed by Asiana Airlines and LG Electronics. In the governance category, Kolon Industries topped the list.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
