The state human rights watchdog on Wednesday said it will recommend the government require state-funded corporations to consider a human rights factor in their operations, a move to shore up corporate ethics. 

The decision came amid the prosecution's sprawling investigation into the toxic humidifier disinfectant case that sparked intense criticism against businesses that churn out products despite their potential health risks.

In the wake of the high-profile case, the National Human Rights Commission has been encouraging local businesses to pursue "human rights-based" management and tighten their ethical standards.

"We will formulate a system under which (the government) can demand that a business fulfill its obligation to respect human rights -- in the cases of the government owning or controlling a business, or being able to considerably influence it," said Shim Sang-don, a senior NHRC official.

Shim pointed out that the government can have a direct or indirect influence over the management of businesses through its loans, public development aid, investment and other forms of financial support, and that it should use the influence to encourage businesses to think carefully about consumer rights.

According to the NHRC's envisioned recommendation, the Korea Trade Insurance Corporation can reflect a human rights factor in its evaluation of applicants seeking its trade support. Public financial institutions, such as the Korea Development Bank, can also consider a human rights element in their provisions of public funds to business entities.

Noting that still, many local firms pay insufficient attention to consumer and human rights, the NHRC official said that businesses must take into account their ethical standards as they pursue corporate interests.

In a high-profile probe into the humidifier sterilizer case, South Korean authorities have confirmed 221 people as victims. Of them, 90 people have died, triggering a public outrage here and bringing to the fore the issue of corporate ethics. (Yonhap)