HYOSUNG TNC

The Fair Trade Compliance Program (CP) is an internal program and system that a company operates to voluntarily comply with a regulations related to fair trade through activities such as monitoring, training, supervision, and sanctions. We aim to prevent losses resulting from regulatory violations in advance, foster a desirable culture of competition and fair trade, and fulfill our responsibility in the area of business ethics to achieve responsible management. Hyosung TNC introduced the CP in June 2018, inheriting it from Hyosung Corp. when the company underwent a spinoff in September 2006. Every year, we update the Fair Trade Voluntary Compliance Manual to guide our employees in understanding the program guidelines. Through the operation of the CP, we strive to prevent risks associated with a regulatory violations in advance, establish a culture of compliance and ethics and compliance among our employees, and become a model company that adheres to fair trade.

The Fair Trade Voluntary Compliance duties are overseen by the Compliance Support Team, which works to minimize related risks through activities such as familiarizing all employees with the company's voluntary compliance program guidelines, providing fair trade training and monitoring.
Compliance officers appointed by the board of directors serve as voluntary compliance managers, responsible for running the Fair Trade Voluntary Compliance Program. They are granted authority to report important matters directly to the board of directors and top management, and they regularly provide reports to the board of directors and top management.

When joining the company, employees are required to understand the ethics and compliance philosophy, ethical guidelines, and ethical guidelines in practice, and they must write an ethics and compliance pledge and a pledge not to take bribes and gifts, etc. In order to effectively improve ethical awareness, promotional videos and magazine-like materials are produced and distributed through the company's groupware.
Partner companies are required to adhere to the "Hyosung TNC Supplier Code of Conduct," which encourages anti-corruption and ethics and compliance, and the company will further spread its message of ethics and compliance awareness throughout its supply chain through ESG management consulting support for small- and medium-sized enterprise suppliers.

The company conducts ethics and compliance training for employees every year. Ethical management training is mandatory for newly hired employees and those who are promoted. Additionally, departments with a higher risk of issues related to their direct relationship with suppliers are selected for regular training on subcontracting laws, cases of contract violations, etc. Sales departments receive training on trade secret protection, violations of trade secret protection, embezzlement, gift-giving, document forgery, cases of violations of fair trade laws and distributorship laws, providing information on procedures and criteria established by law. The company also provides ethical training materials and training venues for supplier employees.

The company conducts audits throughout a various aspects of management, including field operations, various reports investigations, and business diagnoses. Audits are carried out in areas including technology and quality. The company ensures the independence of audit activities, guarantees anonymity to protect both the auditee and whistleblower from unfair treatment, and minimizes disadvantages. Regular audits are conducted in accordance with internal audit rules, and special audits are conducted when specific issues or problems arise. Depending on the severity of the case, measures such as warnings, disciplinary actions, and restitution are taken. Audit findings are reported to the CEO, and the auditees promptly make improvements in response to identified issues. Additionally, the audit team periodically re-evaluates to prevent the recurrence of similar issues.