Kim & Chang’s ESG (Environmental, Social and Governance), Environment, and Litigation Practices successfully represented Company N, a public institution, in a lawsuit brought by members of an environmental organization. The plaintiffs filed damage claims against Company N’s CEO, directors and auditors.

The plaintiffs alleged that they suffered financial and health damages because Company N failed to implement an investment restriction strategy, even after publicly announcing its intention to move away from coal in May 2021. They argued that this failure constituted a breach of the duty of care by the defendants.

Our firm’s attorneys demonstrated, through a careful review of Company N’s decision-making process and relevant laws, that:
 

Moreover, we argued that the damages alleged by the plaintiffs did not meet the requirements under Korean law. They established that there was neither a demonstrable occurrence of loss nor a causal connection between the alleged harm and Company N’s actions.

The Court accepted the defendants’ arguments, finding that the requirements for liability under Articles 401 and 414 of the Korean Commercial Code were not satisfied. Accordingly, it dismissed all claims by the plaintiffs in their entirety.

This case arose amid increasing focus on climate change and the Korean government’s expansion of climate-related policies. Notably, it marks one of the first attempts by a climate organization to hold government agency executives personally liable for the establishment and implementation of government climate policy. As legal and policy responses to climate change accelerate, litigation involving conflicts of interest and accountability is expected to rise.

This outcome demonstrates our firm’s ability to provide timely and effective legal defense, backed by extensive experience and deep legal and technical expertise.