Hankook Tire Corporate Governance
To sustain transparent and accountable corporate principles, Hankook Tire Corporate Governance has embraced a corporate governance system which recognizes and deals with a wide range of ethical issues to better manage our company and make decisions that benefit all stakeholders.
Chapter 1 General Rules
Article 1 (Purpose)
This regulation aims to establish and develop the code of ethics of the company by presenting the correct behavior and value judging standards that shall be obeyed to the employees of the company so that all employees can understand and practice the ethical management policy of the company. It is for that purpose.
Article 2 (Scope of Application)
This regulation shall apply to all stakeholders including employees of the Company and partner companies that have a business relationship with the Company.
Article 3 (Definition of terms)
- Company: Company includes Hankook Technology Group, Hankook Tire & Technology, and domestic and overseas affiliates.
- Employees: Employees and employees who receive wages in return for providing work to the company.
- Stakeholder: A person who is directly or indirectly related to the performance of the company and influences the decisions of the company and its employees.
- Decree: Laws and ordinances, enforcement regulations, and common law of the country where the Korean or overseas affiliates are located or the business of the company is operated.
Article 4 (Management Organization of Code of Ethics)
- The management organization of the Hankook Tire & Technology Code of Ethics shall be the Audit Team and the Ethics Management Committee.
- If it is not provided in this regulation or the interpretation of the regulations is unclear, it shall be subject to the interpretation and decision of the Audit Team or the Ethics Management Committee.
Chapter 2 Basic Ethics of Employees
Article 5 (Basic Principles)
- Comply with relevant laws and company regulations in the performance of business.
- Faithfully carry out the duties imposed in accordance with their position and position without harming the honor of the company.
- Do not discriminate against others on the grounds of nationality, race, sex, religion, social status, etc.
- Do not make any statements or actions that contain social and cultural prejudices such as sexual harassment or profanity.
Article 6 (Preparation and management of important information)
- Do not manipulate documents or counts intentionally or inadvertently, record and report all information accurately, and keep the documents in accordance with statute and company regulations.
- Do not obtain information in an unreasonable way and do not use it for fraudulent purposes or disclose it to a third party.
- Do not use software that violates laws and corporate regulations.
Article 7 (Fair Use of Company Assets)
- All assets (tangible assets, intangible assets) of the company are used for business purposes only and not for personal purposes.
- Do not reveal company's business secrets or use them unintentionally during or after retirement without prior permission or approval.
- Protect the rights of the company while respecting the rights of others regarding intellectual property.
Article 8 (partnership with partner companies)
- Form a reciprocal relationship with partner companies in accordance with the principles of good faith.
- Provide equal opportunities to all eligible suppliers and select suppliers in accordance with objective and fair judging criteria.
- Do not make unreasonable demands on suppliers by using superior position.
- The partner company shall be liable to the company if it fully understands the ethical management policy of the company, actively participates in ethical management activities.
- Observe laws and company regulations when trading between affiliates.
Chapter 3 Responsibility on Client, Shareholder, and Employee
Article 9 (Responsibility to Customer)
- Customer satisfaction is the highest priority of all judgments and actions.
- Customer information is not leaked to the outside or used for other purposes without prior consent of the customer.
- As a responsibility of the Leading Global Tire Company, which provides value and enjoyment to the customer, the company adheres to consumer protection laws and does not engage in excessive and false advertising and customer deceit.
- Adhere to fair competition principles without libeling or harassing competitors.
Article 10 (Responsibility to Shareholders)
- Respect the rights of shareholders, legitimate demands and suggestions by providing accurate and prompt management results.
- Record and manage financial statements in accordance with generally accepted accounting standards.
Article 11 (Responsibility to Employees)
- Respect the individual's basic human rights, such as the privacy, dignity, and personality of employees.
- Evaluate and adequately compensate employees for their ability and achievement in accordance with fair standards.
- Provide safe and pleasant workplace and office environment to employees.
Chapter 4 Ethical Management Organization Culture
Article 12 (Itemizing of Work)
- If there is a conflict between the interests of the company and the individual, the interests of the company shall be prioritized.
- Do not use the property of the company and its position to promote private interests, and do not engage in any misconduct such as embezzlement or utility of company assets.
- Do not trade securities, such as trading securities, using information acquired in the course of business.
- A company with a personal interest will report it to an advanced person in advance and will not exercise any unfair influence on the transaction.
Article 13 (Creating a sound organizational atmosphere)
- Create a work environment where employees can demonstrate proactive leadership through constant self-development.
- Maintain organizational culture based on mutual respect and mutual communication between top and bottom and peers.
- Forbid all gambling activities in and out of the company, and avoid luxury, waste, overuse, and overfeeding, and make a thrift economy.
Article 14 (Political Participation and Activities)
- Respect for the right to vote and political will of employees, but do not engage in political activities within the company.
- Employees shall not provide donations or expenses for political activities to political parties, politicians, and election candidates using the Company's assets.
- Do not use the company's personnel, facilities, equipment, etc. for the purpose of political activities as well as donations (money or goods).
Chapter 5 Priority on Environment, Safety, and Health
Article 15 (Environmental Protection)
- Observe international standards related to environmental protection, relevant laws and regulations, and company regulations.
- The environment deeply recognizes that all human beings should be preserved forever, and leads the efficient use of resources such as recycling of resources.
Article 16 (Safety and Health Consideration)
- Comply with safety regulations and standards and strictly observe safety regulations.
- Create a pleasant work environment and prevent safety accidents.
Chapter 6 Social Responsibility as a Global Company Citizen
Article 17 (Contribution to the State and Society)
- The company respects and abides by all laws and regulations, accounting standards and trading customs at home and abroad.
- Respect the principles of market competition and trade practices and trade practices; Do not take it.
- The company contributes to the development of national and local communities by creating jobs and earnest payment of taxes as a corporate citizen.
- The Company shall comply with laws and regulations such as the Foreign Exchange Control Law, and shall prepare the sources and names of funds in accordance with laws and accounting standards.
- The Company is a Leading Global Tire Company and faithfully fulfills the laws and regulations related to import and export.
- The Company shall endeavor to contribute to social contribution activities such as charitable donation for corporate social responsibility.
Article 18 (Global Entrepreneur)
- All business activities abroad shall be carried out in accordance with the laws and regulations of the countries concerned and with respect to the culture and traditions of each country.
- Comply with international agreements and laws for fair trade in each country (US Foreign Corrupt Practices Act, UK Bribery Act, OECD Anti-Bribery Convention, etc.).
- The Company shall prohibit the use of facilitation payments in violation of laws and ordinances to facilitate the processing of business.
Chapter 7 Obeisance of Code of Ethics
Article 19 (Basic Principles)
- Employees shall strictly observe the ethical rules as a basis for action and value judgment.
- The Company shall discipline its employees in violation of the Code of Ethics in accordance with the fine of discipline, but shall extenuate the circumstances when declaring voluntarily.
Article 20 (Obligation to report)
Employees should report the facts to the Audit team when they know that the actions of others, as well as others, are in violation of the code of ethics.
Article 21 (Protection of Infringer)
We must thoroughly ensure the confidentiality of the prospective identity of ethical management violations and protect them from any form of disadvantage.
Article 22 (Measures for Violation of Code of Ethics)
- If it is perceived or determined to have committed an activity that is inconsistent with the Code of Ethics, Audit activities may be carried out.
- If it turns out to be a violation of the Code of Ethics, it shall be referred to the personnel committee for deliberation and resolution.
- All officers, including managers, are responsible for training and managing their employees to comply with the Code of Ethics.
- This Code of Ethics shall be observed by the employees and stakeholders of the Company, and if it is violated, it shall exclude the generic penalties such as the exemption.
- The Hankook Tire & Technology Code of Ethics shall be enacted on August 1, 2001.
- The Hankook Tire & Technology Code of Ethics shall be amended on February 01, 2005.
- The Hankook Tire & Technology Code of Ethics shall be amended on July 15, 2007.
- The Hankook Tire & Technology Code of Ethics shall be amended on October 08, 2010.
- The Hankook Tire & Technology Code of Ethics shall be amended on April 01, 2013.
- The Hankook Tire & Technology Code of Ethics shall be amended on July 01, 2014.
- The Hankook Tire & Technology Code of Ethics shall be amended on August 01, 2017.
- Details on the prohibition of illegal gain such as money and money shall be separately determined in the "Handling of Unfair Benefit Including Money and Worth."
- The details of using social media are set out separately in 'Usage Tips for Social Media'.
Chapter 1. General Standards
Article 1. Purpose
The purpose is to provide judgmental and behavioral guidelines for the application of the Hankook Tire Code of Ethics to actual cases; the company has set out ethical behavioral guidelines for its employee. The guidelines define the specifications regarding unlawful enticement or inducement.
Article 2. General Principles
- Any form of inducement, special treatment, or benefits offered by stakeholder may influence an otherwise rational decision-making process; all of the aforementioned shall be turned down politely.
- Employees are considered to be involved in the act even if the gifts are offered to or received by their families on their behalf.
- Anyone who unwillingly receives a inducement, financial benefits from shareholder that is connected to a business transaction shall immediately report on said fact and follow due course, taking the proper action according to standard procedure. Anyone who voluntarily turns oneself in shall not be held accountable for their breach of conduct and this act will be taken into consideration.
- Employees are obliged to report on a colleague who has failed to report or correct any form of bribery or entertainment they themselves received as stipulated in the regulations.
Chapter 2. Requirements and Procedures
Article 3. Inducement
1. Unacceptable Behaviors
|Inducement||Cash, checks, gift certificates, tickets, gifts||Forbidden (You are obliged to report the returning of items in excess of the given limits.)|
|Investments||Movable or immovable property, business rights, memberships, equities||Prohibited|
|Surrogate payment of liabilities||Credit card bills, bills, loans|
|Cash transaction||Borrowing money|
|Bargain goods||Making a profit by purchasing goods at bargain value|
|Notice of personal events||Invitations (e.g., wedding, funeral, etc) sent indiscriminately to business partners or to vendors in any form.|
2. Object of the Report
Any item received that exceeds nominal value of one hundred ($100) US dollars shall be reported according to the procedures listed below and to be returned or disposed. However, when received items are less than $100 USD shall be returned without filing a report.
3. Exceptions to Inducement
The conventionally accepted give and take of items as provided below are within the generally accepted limit and shall not be considered enticements:
- ① Voluntary souvenirs, gifts or money for events that are not intended to influence a business decision, award of a contract, and are within a limit generally accepted by social morals and customs (under $100 USD in value).
- ② Contributions made in public to aid employees who are suffering from health problems or accidents.
- ③ Wreaths of flowers and plants received from external stakeholders to convey congratulations for a promotion or appointment.
4. Reporting Procedures
Any unwillingly received inducement shall be dealt with according to the following procedures:
- ① General procedures
- a) The person shall declare the receipt of the inducement to Management Diagnosis Team by email or by phone, or report to Management Diagnosis Team by filling out an appropriate form with evidence attached of how the inducement was returned or properly dealt with. Upon reception of the report, Management Diagnosis Team shall thereupon take proper action.
- b) When the person who filed the report does not know where to donate, or what to do with an item, he/she shall consult with Management Diagnosis Team or hand over to the Management Diagnosis Team to deal with.
- ② Returnable Items
- a) Returnable inducements such as cash, checks, or gift certificates shall be returned to the person(s) who provided them or to a representative of this person(s), business or vendor.
- ③ Not returnable Items
- a) In cases where an item(s) are not returnable due to shipment concern with organic decomposition, degeneration, or damage, or due to the size or weight of the item(s), the item(s) shall be donated in the name of the company where the person who provided the inducement.
- b) In case the item(s) has already decomposed and is unable to return, the item(s) shall be promptly discarded and report along with the reason for its disposal.
- c) In cases where the sender cannot be identified, the item(s) shall be donated under Hankook Tire’s name.
- d) In cases where the item(s) has been used by the recipient, the equivalent amount in market value shall be donated in cash to a charity in the name of the company where the person(s) who provided the gift.
- e) Management Diagnosis Team will be consulted with any clarification of gifts and for return process.
Article 6. Entertainment/Treatment
1. Prohibited on behalf of the Company.
|Category||Prohibited Establishments (Extravagant and Lavish
Establishments) on behalf of the Company
|Drinking||Hostess Bar, Lounge/Bar, Clubs|
*These are prohibited for all employees of Hankook Tire when in fact acting on behalf of the Company.
2. Reporting requirement: Entertainment or special treatment that exceeds $100 USD per person (meals and drinking are inclusive)
3. Reporting procedures: Any unavoidable and unwilling receipt or offer of entertainment or special treatment shall be dealt with as follows:
- ① Receipt of Entertainment/Treatment
- a) Upon invitation to the entertainment venue or reception of special treatment, the person in question shall file a report beforehand to his or her immediate supervisor (team manager for team members and executives for team managers), who will then determine if the case is necessary and/or unavoidable.
- b) The party in question taking part in the entertainment or special treatment must avoid receiving anything monetarily in excess of the amount stipulated in this guideline or what are considered prohibited acts and reject it when it is found to be prohibited.
- c) In cases where the received entertainment and special treatment must be reported, the person in question shall report to the Management Diagnosis Team after filling out “Report Form on the Receipt of Improper Money and Valuables” and have it approved by his or her immediate supervisor.
- ② Provision of Entertainment/Treatment
- a) In case where any pre approved, necessary entertainment and/or treatment offered to stakeholders at the Company's cost must be approved by upper management.
Article 7. Provision of Benefits
1. Prohibited benefits as follows:
|Business trips paid by an outside party||Train, airline, bus tickets or accommodation for visits to a stakeholder’s business premises or business trips together||Expenses must be paid back in full from Hankook Tire|
|Vacation expenses paid for by an outside party||Train, airline, bus tickets, car expenses or accommodation for personal purposes||Prohibited|
|Guarantee of future employment from an outside party||Guarantee of employment, placement plan or entering into an agreement for other benefits, professionally and/or personally|
|Co-signing of loans||Co-signing a loan|
|Loans||Lending or providing assets as collateral for loans|
2. Object of Report: Failure to repay monetary benefits provided by an outside party or any prohibited acts defined on the table above.
3. Reporting procedures: After wiring the money to the person(s) who provided the benefits, or a representative of the person(s), a copy of the receipt shall be attached to the report form on the receipt of improper money and valuables, which shall then be submitted to the Management Diagnosis Team after receiving approval from the supervisor of the person who filed the report.
Article 8. Patronage of Events
- No contribution, be it money or goods, shall be received from stakeholder for any event such as in-house club activities or a department event.
- Any service offered to enhance the convenience of holding events when not requested shall be considered as a patronage contribution.
- Any patronage received for any event shall submit a report form to the Management Diagnosis Team after receiving approval from the supervisor of the person who filed the report.
- These guidelines shall be amended and come into effect from October 8, 2010.
- These guidelines shall be amended and come into effect from April 1, 2013.
- These guidelines shall be amended and come into effect from July 1, 2014.
Article 1. Purpose
The purpose of these guidelines is to encourage members' proper social media use and prevent damage to the company’s reputation caused by improper use of social media by employees.
Article 2. Protect Important Information
- Employees are prohibited to disclose, post, or reveal any customer information or confidential company information on social media.
- Employees shall not participate in online communications or forums related to untrue, inaccurate, or deceptive information that may cause harm to the company.
- Employees shall keep in mind the characteristics of social media — such as rapid and unspecified sharing, and the possibility of being tracked back — and not to distribute any information of the Company.
Article 3. Respect the Intellectual Property Rights of Others
Employees shall not infringe copyright, trademark, publicity right, or other relevant property rights owned by other organization(s) and individual(s).
Article 4. Observe Hankook Tire’s Corporate Image Guidelines
Employees shall neither use the company’s Corporate Image (CI) — such as the company logo or other related branded images — for personal use, nor violate Hankook Tire’s official CI guidelines for business use.
Article 5. Be Aware of Role as Representative of the Company
- Employees shall make it clear when posting personal opinions about any subject connected to the key business of the company.
- Employees who come across negative, disparaging posts or conversations about the company shall not respond on behalf of the company. Rather, upon discovery of such negative communications, employees shall alert and report to the company’s Audit Team or any other relevant department.
Article 6. Follow the Company’s Code of Ethics
Employees should be aware that Hankook Tire's Code of Ethics and any other policies, contained herein are applied to use of online and social media platforms.
These guidelines shall come into effect from July 1, 2014.
Chapter 1. General Principles
Article 1. Purpose
These guidelines attempt to protect and support whistleblowers of misconduct within the Company to prevent improper practices and to improve work processes by defining necessary matters for operating a whistleblowing system such as receiving and processing disclosures, protecting and rewarding whistleblowers.
Article 2. Scope
These guidelines are applied to employees of the Company and all persons concerned and outsiders including subcontractors having transaction relationships with the Company.
Article 3. Definition of Terms
The terms used in these guidelines are stipulated as such:
- “The Company” refers to Hankook Tire Worldwide, Hankook Tire and subsidiary companies.
- “Employees” refers to all executives and staff who receive pay from the Company in exchange for their labor.
- “Person concerned” refers to any individual who has a direct/indirect relationship with the work of the Company and has a mutual influence on the decision making of the Company and its employees.
- “Disclosure” refers to the act of notifying the Audit Team of misconduct discovered by the whistleblower through a disclosure channel or a series of activities conducted to request the misconduct to be corrected.
- “Disclosure, etc.” refers to acts of making a statement or submitting evidence during a survey, investigation or litigation in relation to the disclosure made.
- “Disclosure channel” refers to the Cyber Auditor, phone call, e-mail or post directed to the Audit Team, and direct visits to the Audit Team through which an employee or outsider can make a disclosure of the misconduct he/she has discovered.
- “Whistleblower” refers to any individual who has made a disclosure.
- “Whistleblower, etc.” refers to whistleblower and any individual who has made a statement or submitted evidence during a survey, investigation or litigation in relation to the disclosure made.
- “Conduct subject to disclosure” refers to any of the following (hereinafter referred to as “misconduct”):
- (1) Acts of abusing one’s position or authority in relation to work, or pursuing personal or third party benefits by violating legislations, articles of association and company regulations (hereinafter referred to as “legislations”).
- (2) Acts of inflicting damage on the Company’s property by violating legislations in relation to using company budget, concluding or executing contracts with the Company as a party, acquisition, management or disposition of property
- (3) Acts of violating the Company’s code of ethics and any subsidiary regulations (including wrongful gain, sexual harassment, etc.).
- (4) Acts of inflicting damage on the Company’s property by unreasonable and inefficient work processes
- “Disadvantageous measures” refers to any of the following actions:
- (1) Disadvantageous personnel actions such as removal from office, dismissal, etc.
- (2) Unfair personnel actions such as warning, reprimand, pay cut, suspension, etc.
- (3) Personnel actions against the whistleblower’s will such as transference, denial of duties, job reassignment, etc.
- (4) Discrimination in the performance evaluation and subsequent discrimination in the payment of wages or bonuses, etc.
- (5) Actions that cause economic disadvantage such as cancellation of contract with a subcontractor
Article 4. Management Organization & Operation
- The Audit Team shall establish a disclosure channel to promote the whistleblowing system, manage the established channel and process disclosures received by the disclosure channel.
- The Audit Team shall assign a staff dedicated to the tasks described in Paragraph 1 above to perform the following duties:
- (1) Receiving, consulting about and processing disclosures
- (2) Informing consultation and remedy procedures for whistleblowers
- (3) Miscellaneous work related to whistleblowing system
- For any matters not stipulated in these guidelines or any conflicting provisions hereof, the interpretation and decision made by the Audit Team shall take precedence.
Chapter 2. Disclosures
Article 5. Disclosure Duty
- When an employee becomes aware of misconduct of other employees, or is forced or asked to engage in misconduct in the course of performing his/her job, he/she shall immediately report the fact.
- When an employee who is obligated to take over duties pursuant to the Employment Regulation, etc., becomes aware of misconduct related to the duties, he/she shall report the fact within 6 months of the takeover date.
Article 6. Whistleblower’s Duty of Good Faith
- With regard to disclosures pursuant to Article 5 hereof, the whistleblower shall make a disclosure only when having confidence in the veracity of the information or under equivalent circumstances.
- With regard to disclosures pursuant to Article 5 hereof, the whistleblower shall not be protected under these guidelines if he/she had known or could know that the information was false.
Article 7. Disclosure Method
- The whistleblower shall fill out the “Disclosure Form” (Attachment 2) according to the five Ws and one H principle to include the following items along with related evidence.
- (1) Whistleblower’s personal information (e.g. name, team, contact, etc.)
- (2) Alleged wrongdoer’s personal information (e.g. name, team, contact, etc.)
- (3) Purpose of and reason for disclosure
- (4) Details of misconduct
- In the case of Paragraph 1 above, if there is urgency where misconduct is in progress at the time of making a report, the fact can be reported without evidence, and if necessary depending on the circumstances, the whistleblower can make an anonymous disclosure.
Article 8. Time Limit for Disclosure
- The time limit for disclosure of conduct subject to disclosure shall be within five years from the date such conduct came to an end.
- The report shall be made within six months from the date the whistleblower became aware of such conduct, and if the whistleblower is directly related to such conduct, the report shall be made within one month from the date such conduct came to an end.
Article 9. Disclosure Supplementation Request
- If any items in the Disclosure Form are omitted or if any items are ambiguous, the Audit Team may request the Disclosure Form to be supplemented within a reasonable period of time.
- If the whistleblower fails to supplement the Disclosure Form despite the Audit Team’s request made under Paragraph 1 above, the Audit Team may give the whistleblower additional 7 days to fulfill the supplementation request. If the whistleblower fails to supplement the Disclosure Form despite the additional 7 days, the disclosure case may be closed under Article 11 hereof.
Article 10. Disclosure Investigation
- Once a disclosure is received, the Audit Team shall process it immediately.
- An investigation period shall be no more than 60 days from the investigation start date, and the investigation may be extended by a period not exceeding 30 days only for justifiable reasons.
Article 11. Termination of Disclosure
If a disclosure is found to be any of the following, the Audit Team may cease all proceedings and close the disclosure case without an investigation.
- If the information is clearly false
- If the personal information of the whistleblower is unknown
- If the whistleblower does not fulfill the supplementation request related to the Disclosure Form or evidence within the supplementation period on more than two occasions
- If the disclosure is made once again without justifiable reasons, although an original disclosure was already processed and replied
- If the disclosure was already made by the mass media and the information does not contain any new evidence other than that disclosed by the media
- If the disclosure is already under investigation or is already concluded pursuant to other legislations or company regulations
- If the disclosure does not have evidence to prove the misconduct
Article 12. System Improvement Request
- The Audit Team may request system improvement from related departments to prevent any misconduct from recurring.
- In the case of Paragraph 1 above, related departments shall endeavor in executing improvements, discuss the process of improvement with the Audit Team and immediately notify the improvement results to the Audit Team.
Chapter 3. Whistleblower Protection
Article 13 (Identity Confidentiality)
- Anyone knowing the identity of the whistleblower, etc. shall not disclose, imply or publicize personal information of the whistleblower, etc. or any information hinting at the identity of the whistleblower, etc. However, if the whistleblower has agreed to identity disclosure by filling out the “Confirmation of Consent to Identity Disclosure (Attachment 4),” the foregoing shall not apply.
- The investigator related to Paragraph 1 above (including the Audit Team staff) shall fill out the “Whistleblower Confidentiality Pledge (Attachment 3),” and shall comply with its requirements.
- If the identity of the whistleblower is exposed due to an employee violating Paragraph 1 above, the Audit Team shall investigate the exposure route and request penalties for responsible staff.
Article 14 (Prohibition on Seeking Whistleblower’s Identity)
- No person shall ask the Audit Team for the identity of the whistleblower, and shall not commit any act which may expose the identity of the whistleblower, such as questioning, etc.
- When asked as in Paragraph 1 above, the Audit Team staff shall immediately explain that the act in Paragraph 1 above is strictly prohibited, and the staff may, if deemed necessary, request a penalty for violators of Paragraph 1 above.
- When the whistleblower reasonably believes that his or her identity is exposed, he or she shall notify the Audit Team of the fact that his/her identity is exposed and request identity protection.
Article 15. Prohibition of Disadvantageous Actions ; Remedies
- No person shall take any disadvantageous personnel measures against or make any work-related discrimination against the whistleblower, etc. (hereinafter referred to as “disadvantageous actions”) on the grounds of a disclosure, related statement and data submission, etc.
- No person shall prevent a whistleblower, etc. from making a disclosure or force him or her to retract his/her disclosure.
- If a whistleblower, etc. suffered disadvantageous actions on the grounds of disclosure, etc., the whistleblower, etc. may request status guarantee measures such as recovery from disadvantageous actions, personnel transference, etc. (hereinafter referred to as “status guarantee measures”) from the Audit Team.
- In the case of the request made in Paragraph 3 above or if there is any suspicion of disadvantageous actions, the Audit Team shall immediately initiate an investigation.
- If it is feared that the whistleblower will suffer personnel or other disadvantageous measures as a result of the investigation made pursuant to in Paragraph 4 above, the whistleblower may request status guarantee measures from his/her team manager, and the team manager shall comply with such request unless there is any justifiable reason.
Article 16. Escape Clause
- If the whistleblower is discovered to be part of misconduct, the penalty against the whistleblower may be reduced or exempted. However, this does not apply in circumstances of the following exceptions where exemption is deemed inappropriate:
- (1) If the whistleblower fails to return the wrongful gain or compensate for the damage
- (2) If an individual who received a penalty reduction or exemption has committed the same or similar misconduct within 3 years
- If a whistleblower reported conduct subject to disclosuremisconduct, the whistleblower is deemed to have not breached the duty of confidentiality under the Employment Regulation.
Chapter 4. Rewards
Article 17. Provision of Rewards
- If the Company has gained a benefit (increase in profit or decrease in loss) in property due to a disclosure, the Audit Team shall grant the whistleblower rewards based on the compensation standard stipulated in the “Whistleblower Reward Standard” (Attachment 1).
- The reward granted under Paragraph 1 above shall be collected and kept confidential by the Audit Team and then transferred to an account held by the individual eligible for rewards. However, if the individual eligible for rewards insists on a different payment method, the reward may be granted accordingly.
- In case of Paragraph 2 above, the staff related to the provision of a reward shall prepare and comply with the ”Whistleblower Confidentiality Pledge” (Attachment 3) in order to prevent identity exposure.
Article 18. Exceptions to Rewards
In the following circumstances, the reward shall not be provided:
- If the information is discovered to be false or if the information lacks evidence to confirm it to be true
- If the disclosure is already under investigation, disciplinary measures or terminated by an investigative authority or judicial authority
- If the disclosure is already made, under investigation by the Audit Team and related departments, under disciplinary measures or already concluded
- If the disclosure is already made through the media
- If the disclosure is made by an anonymous source or an alias, resulting in the failure to identify the whistleblower
- If the disclosure is related to simple work improvement
- If the disclosure is made by a member of the Audit Team
- If the reward is deemed inappropriate after a miscellaneous compensation and exemption review
Article 19. Redemption of Rewards and Cancellation of Exemption
If the individual eligible for rewards is discovered to be ineligible for rewards after the reward or exemption is granted, the reward may be redeemed and the exemption may be cancelled.
Chapter 5. Penalties
Article 20. Penalties
- The Audit Team may request disciplinary measures against individuals who have violated these guidelines, and the individual shall be penalized according to the Disciplinary Regulations.
- Individuals who have made a disclosure within the period stipulated in Paragraph 2 of Article 5 hereof may be subject to a reduced penalty or exemption. However, individuals who have made a disclosure after the period shall be subject to aggravated disciplinary measures stipulated by the Disciplinary Regulations.
These guidelines shall become effective on July 1, 2015.