ESG MARKET & CASES

Beyond Paper Checks: Hyundai Motor's Supply Chain ESG Moves to On-Site Verification at Mines and Smelters

Hyundai Motor conducted ESG written assessments for 2,086 suppliers and on-site audits for 25 suppliers in 2025, while 25 suppliers with potential regulatory violations completed corrective action plans. Independent third-party RCS Global audited 3 mines and smelters in the Democratic Republic of Congo and Indonesia, identifying 58 non-conformities (47 major, 11 minor), with corrective actions currently underway. Legal experts generally view the EU Omnibus Directive, which took effect in March 2026, as clarifying risk-based due diligence rather than simply reducing audit volume. Through a mutual growth agreement signed with the Korea Fair Trade Commission in July, primary suppliers are paid within an average of 10 days post-closing instead of the statutory 60 days, while tier-2 and tier-3 suppliers are supported through training, incentives, and shared growth payments (benefiting an estimated 5,500+ companies). Despite achievements such as achieving RE100 across all operations in Europe, North America, and India, expanding the depth of in-depth audits and securing visibility into tier-2 and tier-3 suppliers remain future tasks.