The Korea Fair Trade Commission (KFTC), chaired by Han Ki-jeong, has issued corrective orders against POSCO and POSCO Holdings Inc. (hereinafter collectively referred to as “POSCO”) for advertising products certified under the “INNOVILT” label as eco-friendly products and green steel construction materials without objective grounds. The companies also promoted “INNOVILT,” “e Autopos,” and “Greenable” as eco-friendly brands, which was found to be misleading.
POSCO, through its official website and press releases, advertised products certified under the “INNOVILT” label using the term “eco-friendly steel construction materials” without substantiating claims of environmental friendliness. Additionally, POSCO advertised the three brands—“INNOVILT,” “e Autopos,” and “Greenable” (collectively referred to as “the three brands”)—as part of its eco-friendly marketing strategy, falsely suggesting that it operated three environmentally beneficial brands with the phrase “three major eco-friendly brands.”
The “INNOVILT” certification is granted when a client’s construction steel products processed using POSCO steel meet certain evaluation criteria. However, the proportion of environmental criteria in the evaluation is very small, making it difficult to regard INNOVILT-certified steel as eco-friendly products.
The brands “e Autopos” and “Greenable” are strategic labels for steel materials used in electric vehicles and wind power equipment, respectively. However, there are no steel products exclusively used for these brands, and they do not involve separate eco-friendly processes or materials.
POSCO’s actions were found to promote its business through false or exaggerated advertising, misleading consumers into believing that it engages in specific environmental practices. As a result, consumers could be misled into thinking:
① that INNOVILT-certified steel is inherently eco-friendly, and
② that the three brands represent products with enhanced environmental benefits.
This poses a risk of disrupting fair trade in the construction steel market.
The KFTC judged such advertisements to be false and exaggerated.
This decision is significant in that it addresses misleading eco-friendly advertising that hampers rational consumer choice. The KFTC will continue to monitor unlawful advertising practices related to environmental claims, aiming to foster a trustworthy consumer environment and promote informed consumption of truly eco-friendly products.