South Korean companies are significantly underprepared for the global crackdown on “greenwashing.” (Image courtesy of Pixabay)
SEOUL, Sept. 9 (Korea Bizwire) – With the European Union preparing to enforce stricter eco-friendly labeling guidelines starting next September, a recent survey has revealed that South Korean companies are significantly underprepared for the global crackdown on “greenwashing.”
Greenwashing, a portmanteau of “green” and “whitewashing,” refers to the deceptive practice of marketing products or corporate activities as environmentally friendly when they are not.
The Korea Chamber of Commerce and Industry (KCCI) surveyed 100 domestic companies and found a concerning lack of awareness about greenwashing standards.
A staggering 45% of respondents admitted to being unfamiliar with these standards, while only 10% claimed to be very knowledgeable.
The survey also highlighted a self-reported lack of preparedness among Korean firms. 36% of companies rated their readiness to combat greenwashing as “low,” with an additional 8% describing it as “very low.” Only a quarter of the surveyed companies considered themselves well-prepared.
Organizational readiness was equally lacking, as 61% of companies reported having no dedicated staff or department to address greenwashing concerns. Nearly half (48%) admitted to not having internal systems or procedures in place to prevent greenwashing practices.
Companies cited various reasons for their lack of preparedness, including the absence of dedicated departments (31.3%), lack of awareness among executives (25%), shortage of internal expertise (22.9%), and limited resources (20.8%).
Perhaps most concerning, 41% of surveyed companies reported having no specific plans to address greenwashing in the future. Only a third planned to implement training programs, while 31% considered diagnostic evaluations or consultations.
Awareness of domestic greenwashing regulations was also low, with the researchers noting that 57% of respondents were unfamiliar with both the Ministry of Environment’s “Notice on the Management of Environmental Claims in Advertising” and the Fair Trade Commission’s “Guidelines for Review of Environment-Related Indications and Advertisements.”
Companies overwhelmingly (90%) supported the idea of consolidating these two regulatory frameworks into a single, comprehensive set of guidelines.
The survey identified several challenges faced by businesses in addressing greenwashing.
These include a lack of detailed guidelines, absence of verification systems to identify greenwashing, shortage of internal expertise, lack of interest from management and operational departments, and high compliance costs.
To address these issues, companies called for more detailed guidelines, support for verification procedures and costs, assistance in building corporate response systems, expert consultations, and the consolidation of government oversight into a single department.
Cho Young-joon, head of the KCCI’s Sustainable Management Institution, emphasized the need for a collaborative approach: “Rather than focusing on enforcement and punishment, the government should strengthen the promotion of guidelines, making detailed information easily accessible to companies. Simultaneously, businesses need to establish dedicated teams and response systems.”
M. H. Lee (mhlee@koreabizwire.com)
