![](https://framerusercontent.com/images/8ZlE8K8Ppz0zbfiAvBbFGeZVRo4.png)
FairLabs Team
Jul 8, 2024
Weekly ESG Controversies (July 1~7)
Key takeaways
Surge in 'Business Ethics' Risks:
The risk has surged from 9.69% last week to 24.17%, with the sulfuric acid handling lawsuit between YOUNGPOONG and KOREA ZINC, amid their management dispute, accounting for 34.16% of the issue.
The long-standing controversy over the DEUTSCH MOTORS stock manipulation case has led prosecutors to seek an eight-year prison sentence for the former chairman of DEUTSCH MOTORS.
Rising 'Air Quality' Controversy:
The sulfuric acid handling contract dispute between KOREA ZINC and YOUNGPOONG dominates at 95.89%, while NOROO PAINT & COATINGS is embroiled in a controversy with Anyang City over a decade-old promise to relocate its factory following an epoxy leakage incident.
Ongoing SAMSUNG ELECTRONICS Union Strike:
The first strike in the company’s history began on the 8th, with 6,540 participants, following months of disputes with the union.
Accelerated Separation of Line Yahoo and NAVER:
Following administrative guidance due to NAVER’s personal data leak, Line Yahoo has decided to accelerate its system separation from Naver.
Two Major 'Competitive Behavior' Controversies:
The SM stock manipulation controversy reignited with the anticipated prosecution summons of former KAKAO chairman Beom-Soo Kim next week.
The EU has signaled potential antitrust investigations into SAMSUNG ELECTRONICS’ AI collaboration with Google, amid astronomical fines threatened against Apple, Microsoft, and Meta.
![](https://framerusercontent.com/images/7aRn4d0inBwWENH9ltl9jIITw.png)
Business Ethics (24.17%)
YOUNGPOONG and KOREA ZINC are embroiled in lawsuits related to sulfuric acid treatment, capturing 18.89% and 15.27% of the controversy respectively, making it the most contentious issue.
Former chairman Oh-Soo Kwon has been sentenced to 8 years in prison in the second trial of the ‘DEUTSCH MOTORS Stock Manipulation' case.
![](https://framerusercontent.com/images/CqPjUfr7aNBK3nBE8LJm5vfEJZ4.png)
Data Security (8.93%)
Line Yahoo has accelerated the separation of systems from NAVER.
Automotive dealers across the United States using CDK (software provider) sales and inventory management systems have been affected by ransomware attacks, causing disruptions to operations that are not yet fully restored.
![](https://framerusercontent.com/images/vZlxovVAE7ze4Rv1iKk9kAOJ6rE.png)
Labor Practices (8.49%)
SAMSUNG ELECTRONICS union declared a total strike without pay until demands are met.
Former employees of HANWHA OCEAN (formerly Daewoo Shipbuilding & Marine Engineering) lost their first instance lawsuit regarding retirement benefits.
![](https://framerusercontent.com/images/pji18gE36uQHCJQCZBshlIMrXJc.png)
Competitive Behavior (8.02%)
Prosecutors are expected to summon Kim Beom-Soo, former chairman of KAKAO’s board of directors, for questioning next week on suspicions of involvement in ‘SM market manipulation’.
As the EU threatens astronomical fines on Big Tech, there are indications of potential antitrust investigations into AI cooperation between SAMSUNG ELECTRONICS and Google.
![](https://framerusercontent.com/images/5hbob0WDI6BUlsdE0Wv0BdYIpJ0.png)
Air Quality (7.35%)
KOREA ZINC has refused to renew its sulfuric acid handling contract with YOUNGPOONG, citing aging facility issues, safety concerns, and space limitations due to increased production.
NOROO PAINT & COATINGS is in conflict with Anyang City regarding the relocation of its factory.
![](https://framerusercontent.com/images/SrdQCeF6MI6Y2xOlbJ3RIO4eHhc.png)
This week's ESG report highlights the resurgence of controversies that have persisted for months or even years. From the management dispute between Korea Zinc and YoungPoong, Deutsch Motors' stock manipulation, Samsung Electronics' union strike, Kakao's SM acquisition stock manipulation, to Noroo Paint's decade-old epoxy leakage incident, we see how initial controversies can continue and extend.
Disclaimer: This content was made with the help of AI. It may contain errors or inaccuracies, and should not be relied upon as a substitute for professional advice. The information contained in this article is not investment advice. FairLabs does not endorse or recommend any investments and assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained in this article.
All rights reserved. © FairLabs 2024
Latest Posts