Government Tightens Greenwashing Regulations... Companies Curb "Eco-Friendly" Marketing

After Calls to Curb "Greenwashing,"
Companies Now Wary of Using "Eco-Friendly"
Restricting Department Names and Promotion of Activities

As the government strengthens regulations against greenwashing (deceptive environmentalism), companies are adopting a more cautious approach to eco-friendly marketing. Some businesses are even removing the term "eco-friendly" from official department names in an effort to minimize risk.

According to industry sources on May 30, LG Electronics has recently refrained from using the term "Eco Solution" within its ES (Eco Solution) Business Division. The Eco Solution Business Division, which was newly established through an organizational restructuring at the end of last year, is now commonly referred to as the "ES Business Division" as an abbreviation, and it is reported that the company is taking care to avoid using the term "Eco Solution" in external communications.

This measure was taken out of concern that the term "eco" (environment) could give the misleading impression that all products and services are environmentally friendly. To reduce the risk of violating related laws such as the Act on Fair Labeling and Advertising, the Environmental Technology and Industry Support Act, and the Electronic Commerce Act, the company is minimizing the use of such expressions. In practice, the relevant department conducts internal guideline and legal review procedures when promoting corporate activities or products related to eco-friendliness.

Companies are also adopting a more cautious stance when publicizing their ESG (Environmental, Social, and Governance) activities. A representative from the petrochemical industry stated, "We are aiming for a careful approach to prevent the excessive use of eco-friendly expressions." This company is also considering establishing new internal standards for eco-friendly terminology.

This shift is closely linked to the government's tightening regulatory stance. As environmental marketing becomes more active, the government has established review guidelines to determine unfair advertising, including false or exaggerated claims, deception, and unfair comparisons.

Last year, the Ministry of Environment issued an administrative correction to POSCO regarding certain expressions in advertisements for its carbon-neutral brand "Greenate," citing concerns about potential greenwashing. In October of the same year, the ministry announced the "Guidelines for Labeling and Advertising of Eco-friendly Management Activities," and the Fair Trade Commission also revised its "Review Guidelines for Environmental Labeling and Advertising," establishing grounds for corrective actions or the imposition of fines.

Kim Bomi, an attorney at the nonprofit organization Sun, explained, "Under current law, it is unlikely that a company would become embroiled in a lawsuit solely due to its department or company name." However, she added, "Companies appear to be exercising caution for image management purposes, as consumers may develop negative perceptions due to greenwashing." She further commented, "With the growing awareness that greenwashing could be illegal, it seems that even companies that have been making efforts for the environment are now becoming hesitant to do anything at all."

This content was produced with the assistance of AI translation services.