ESG policy - Hankook Tire ESG | Hankook Tire Global go to main

Hankook Tire ESG

Hankook Tire & Technology continues to develop and fully implement various ESG policies in each field to achieve mid- to long-term ESG goals.

  • Ethical management plan

    Hankook Tire & Technology practices ethical management, contributes towards increasing corporate value and national status as a global company, fulfills corporate social responsibilities, and pursues solid and sustainable growth with all of its stakeholders, including customers, business suppliers, local communities, and employees.

    Therefore, we shall set the following “Ethical Management Plan” as the standards for our value judgment and the pattern of behavior, and fully implement the Plan:

    1. 1. Our goal is to become an ethical company that adheres to domestic and foreign laws and regulations, and corporate management policies, and practices the righteous management.
    2. 2. We put the customer first and supply good-quality tires, thereby assuring the best driving experience.
    3. 3. We strive to raise the value of our shareholders through rational decision-making and righteous management.
    4. 4. We provide equal and fair opportunities to our employees for self-realization and bring forth a smart workplace oriented towards innovation in every aspect of our business processes.
    5. 5. We comply with international agreements and various regulations, respect local laws and cultures, and take shape as the leading global tire company.
    6. 6. We exercise our proactive leadership skills, respect and practice ethical behaviors at the forefront.
  • Safety and health environment plan

    According to the management principles that put the highest priority on the safety, health, and environment of humankind, Hankook Tire & Technology establishes an overall safety and health environment-oriented management system for the company, takes the initiative in implementing management activities for safety, health, and the environment throughout the entire process of the corporate activities and products, provides values and pleasure to its customers, and pursues safe and healthy lives.

    To this end, we hereby take an oath to act as follows:


    Safety and health environment plan

    1. 1. We shall remove the risk factors through investment and operational improvement in safety, health, and the environment to reduce risks and protect the environment.
    2. 2. We shall provide safe and healthy working conditions to prevent work-related injuries and medical problems. We shall promote the efficient use and recycling of resources. Through these activities, we shall minimize the impact of our business activities on safety, health, and the environment.
    3. 3. To help our employees understand and continuously improve the safety, health, and environment management system, we shall provide education and competency improvement activities to our employees, and disclose our policies and management performance to stakeholders and communicate with them.
    4. 4. We shall establish and faithfully implement internal management standards that satisfy domestic and foreign laws and regulations as well as other requirements pertaining to safety, health, and the environment. Our employees shall evaluate the impact on safety, health, and the environment, and set and implement safety, health, and environment goals, to ensure continuous improvements.

    Essential Health and Safety Principles

    1. 1. Associated organizations and reporting systems shall be responsible for the prevention and occurrence of accidents.
    2. 2. All employees shall be under the duty to work without causing any safety-related accidents to occur from their initial date of employment.
    3. 3. The company shall formulate and train all safety regulations and standards, which shall be strictly complied with by all employees.
    4. 4. All employees shall make an effort to discover potential risks in advance, and the company shall take action to make improvements.
    5. 5. The company shall continuously improve harmful risk factors to protect the safety and health of all employees, including those of its business partners.
    6. 6. Safety outside of working hours shall be equally considered as safety during working hours.
    7. 7. The company shall make efforts to develop the technology for optimal safety and health management.
    8. 8. The company shall advance its safety and health management system through continuous system improvement.

    9. All employees shall comply with our policies on safety, health, and the environment publicly notified internally and externally, and fully discuss and take part in the management activities for safety, health, and the environment.
  • Sustainability guidelines for suppliers

    Hankook Tire & Technology pursues the management for mutual prosperity in which the two companies continue to grow and thrive by establishing a transparent and fair bond of trust with its suppliers.

    Hankook Tire & Technology practices ethical management, contributes towards increasing corporate value and national status as a global company, fulfills corporate social responsibilities, and pursues solid and sustainable growth with all of its stakeholders, including customers, business suppliers, local communities, and employees. Based on such credibility and righteous management, Hankook Tire & Technology fully implements its Code of Ethics as the standard for its value judgment and behavior.

    To build an effective relationship with it suppliers and achieve mutual growth, Hankook Tire & Technology shares its Sustainability Guidelines for the Suppliers of Hankook Tire & Technology with its suppliers and demands they respect and comply with the guidelines. This Sustainability Guidelines for Suppliers apply to the Hankook Tire & Technology's suppliers and their employees, agencies and representatives who are in a contractual relationship with Hankook Tire & Technology, and subcontractors (hereinafter collectively referred to as the “suppliers”). Hankook Tire & Technology distributes this Sustainability Guidelines for Suppliers to its suppliers prior to building any business relationship. Each supplier must fully learn the details of the Sustainability Guidelines for Suppliers, share them with its employees and educate them, and undertake they comply with the details of the guidelines prior to entering into a contractual relationship for all transactions.

    Hankook Tire & Technology is entitled to evaluate whether its supplier complies with the details of these Guideline in good faith, and, if necessary, conduct audits such as on-site visits. While Hankook Tire & Technology pledges to keep the confidential information of its suppliers secure, it may demand its suppliers to submit documents for an evaluation. If the company deems it necessary to conduct an on-site audit, Hankook Tire & Technology will be obliged to notify its supplier of the on-site visit in advance. A supplier is obliged to respond to the evaluation details required by Hankook Tire & Technology in good faith, and it is obliged to immediately share with Hankook Tire & Technology any content that violates or is likely to violate these Guidelines. If the company determines that the violation of these Guidelines creates a severely negative social and environmental impact, Hankook Tire & Technology may suspend the transaction with the relevant supplier at any time.

    1. 1. Suppliers must comply with the laws and regulations of the region and country to which their business establishments are affiliated.
    2. 2. Suppliers are responsible for not only complying with their code of ethic, but also the Sustainability Guidelines for the suppliers of Hankook Tire & Technology.
    3. 3. Hankook Tire & Technology is responsible for informing stakeholders that it fulfills its corporate social responsibility by publicly announcing its CSR performance. To this end, Hankook Tire & Technology may request the following from its suppliers, and the suppliers are obliged to follow such requests, unless under reasonable and mutually understandable circumstances.
      • • Request for the supplier’s CSR performance: Hankook Tire & Technology may request data on the supplier’s policies, progress on programs, and final performance. In this case, the information provided by suppliers will not be used for any purpose other than for SCR evaluation, and we pledge to handle such information based on the information security policy of each supplier.
      • • The CSR audit of the supplier through on-site visits: If Hankook Tire & Technology deems it necessary to conduct the on-site audits of a supplier, it may request to do so. In this case, Hankook Tire & Technology will notify the supplier of its visit in advance, and it pledges to comply with the supplier’s security policy for visitors.
      • • A faithful response to the evaluation and audit: In the CSR evaluation and audit conducted by Hankook Tire & Technology, the supplier must respond in a timely manner with accurate data in good faith. If any violation of laws, regulations, or Hankook Tire & Technology's Sustainability Guidelines for the Supplier has occurred or is likely to occur, the supplier must immediately notify Hankook Tire & Technology of such a violation. If any supplier provides false information for an evaluation or an audit, or its violation gives rise to a serious social or environmental impact, Hankook Tire & Technology may immediately suspend the relevant business relationship.
    1. 1. A supplier must comply with the Improper Solicitation and Graft Act, Foreign Corrupt Practices Act, the Bribery Act of England and Wales, and laws pertaining to anti-corruption and/or anti-bribery in the region to which the business establishment is affiliated.
    2. 2. A supplier must not offer or accept bribes or money or valuables to anyone under any circumstances whatsoever, nor should it demand or promise to provide bribes or money or valuables.
    3. 3. A supplier must not offer direct or indirect bribes to government agencies to induce any activities advantageous to its business or obtain commercial profits.
    4. 4. A supplier must not offer or receive gifts, money, or other articles that exceed the standards permitted under local laws and regulations to government agencies, Hankook Tire & Technology, and any other interested parties.
    5. 5. A supplier must not engage in any illicit acquisition or embezzlement for the purpose of obtaining unfair or inappropriate profits.
    6. 6. A supplier must have a whistleblowing channel in place concerning anti-corruption and anti-bribery, and must substantially protect whistleblowers and anonymous reports on this channel.
    7. 7. A supplier must take necessary actions, such as disciplinary action against the employees who have violated these details on anti-corruption and anti-bribery according to its own regulations.
    1. 1.As a company that has established and declared a human rights management system, Hankook Tire & Technology requires its suppliers to also respect and protect human rights. In addition, we demand our suppliers to endorse and comply with the Universal Declaration of Human Rights, the UN Global Compact, the Fundamental Principles and Rights at Work, and the UN Guiding Principles on Business and Human Rights, which underpins the human rights management system of Hankook Tire & Technology.
    2. 2. Prohibition of forced labor: Suppliers must not unreasonably restrict the mental and physical freedom of their employees, and force them to work against their free will.
    3. 3. Prohibition of child labor: Suppliers must comply with the minimum employment age set under the laws and regulations of the region where their business establishments are located, must not hire young children under the age of 15, and must not assign any work harmful to the safety and health for any hired teens under the age of 18.
    4. 4. No discrimination: Suppliers must not discriminate against employees in recruitment, compensation, promotion, etc. on the grounds of race, age, gender, nationality, disability, religion, pregnancy, union membership, marital status, social status, etc. In addition, suppliers must assure equal compensation for the same job, and provide education to their employees on diversity and anti-discrimination.
    5. 5. Guarantee of the freedom of association: Suppliers must provide opportunities for communication between the company and its employees, must guarantee the freedom of association among their employees, and must not discriminate employees due to their union membership, activities, or organization establishment.
    6. 6. Payment of fair remuneration and the stabilization of a livelihood: Suppliers must guarantee the minimum wage, overtime payment, subscription to social insurance, and the provision of rest/leave specified under the laws and regulations of the region where the business establishment is located, and as a result, must contribute towards the stabilization of a livelihood as well as qualitative improvement in the working conditions for their employees.
    7. 7. Working hours: Suppliers must comply with the statutory working hours in the region where their business establishments are located, and do not force their employees to work overtime
    8. 8. Health and safety guarantee: Suppliers must provide a safe and clean working environment for their employees and protect workers from harmful substances.
    9. 9. Conflict minerals: Suppliers must not acquire any raw or subsidiary materials from conflict zones where human rights are under serious threat, and they are obliged to identify and report any use of conflict minerals upon request from Hankook Tire & Technology.
    1. 1. Suppliers must comply with the laws and regulations pertaining to workplace health and safety in the region and country where their business establishments are located, and establish and implement their own health and safety policies and procedures. In addition, the health and safety policies and procedures of suppliers must be available and shared in the language understood by their employees.
    2. 2. Suppliers must put the highest priority on the safety of their employees under all circumstances. Therefore, they must not implement any procedures, processes and activities that do not comply with safety policies, regulations, and laws.
    3. 3. Suppliers must provide their employees with a safe and hygienic work environment that includes the following:
      • • Protective equipment and training necessary to safely perform the job
      • • Training on how to deal with emergency situations at workplaces
      • • Easy-to-use first aid kit
      • • (Properly working) fire extinguishers and emergency exits to escape from fire
      • • Ventilation facilities that supply outside or purified air
      • • Pleasant temperature at the workplace
      • • Appropriate lighting to perform the job
      • • Drinking water for employees to drink
      • • Appropriate shower and sanitation facilities and continuous management of such facilities
      • • Appropriate seats (chairs) to perform the job
      • • If employees wear uniforms and work clothes, facilities to change, store, and dry clothes
      • • Hygienic dining, cooking and storage facilities
      • • Dormitories (lodging facilities) that ensure a clean, safe and adequate living space
      • • Accessible and clean toilets for males and females
    4. 4. Suppliers must ban any use, possession distribution, and sales of illegal drugs in all of their workplaces.
    5. 5. In the event of an accident at the supplier's workplace, the supplier must evaluate the accident, enforce appropriate corrective actions, and take appropriate actions to prevent its recurrence.
    6. 6. Where a supplier has been ordered to temporarily suspend its operation, fined to pay a considerable amount, or convicted guilty in a trial due to its violation of regulations and laws on health and safety, it must immediately notify Hankook Tire & Technology of such fact.
    1. 1. A supplier must comply with environmental laws and regulations in the region where its workplace is located, and establish and implement its own environmental policy and procedures.
    2. 2. A supplier must strive to reduce negative environmental impacts during corporate management, including the following efforts:
      • • Environmental protection
      • • Response to climate change
      • • Safe treatment of hazardous substances, air pollutants, waste and wastewater
      • • Resource saving through resource recycling, reuse, and substitution
      • • Use of energy-efficient and environmentally friendly technologies
      • • Waste reduction
      • • Acquisition, management, and renewal of environmental permits and declaration documents
    3. 3. If a supplier has been ordered to close temporarily, fined to pay a considerable amount, or convicted at trial due to its violation of environmental regulations and laws, it must immediately notify Hankook Tire & Technology of such a fact.
    1. 1. All suppliers who supply goods to Hankook Tire & Technology must not use minerals mined in conflict zones and must submit a certificate of origin as a proof thereof. If necessary, Hankook Tire & Technology may conduct the on-site audits of its suppliers.
      • • Conflict zones refer to 10 regions: Democratic Republic of Congo, Sudan, Central African Republic, Republic of the Congo, Angola, Zambia, Tanzania, Burundi, Rwanda, and Uganda.
      • • Minerals subject to regulation (conflict minerals) refer to tin, tantalum, tungsten, and gold mined in the above 10 regions.
    1. 1. A supplier must comply with the security of the personal information, finance, and health of its employees, suppliers, and customers, and establish and operate the policy designed to protect such information.
    2. 2. A supplier may request and collect personal information from its employees, customers, and employees of its suppliers only if he has a legitimate reason, and in this case, it must comply with the relevant local laws and regulations.
    3. 3. A supplier must comply with the laws and regulations regarding intellectual property, trade secrets, trademark rights, and confidential information, and establish and operate the policies to protect them.
    1. 1. The employees of both the supplier and Hankook Tire & Technology must not enter into any financial or personal relationship that may give rise to the conflict of interest for either party.
    2. 2. If a conflict of interest arises or is concerned to arise, the supplier must immediately notify Hankook Tire & Technology of such a fact. For instance, if a family member or close relative of an employee of Hankook Tire & Technology is employed by a supplier, such a fact must be immediately notified to the Legal Team of Hankook Tire & Technology. In this case, the supplier must also re-designate the relevant personnel to avoid any conflicts of interest.
    1. 1. A supplier shall comply with the principles of market competition, respect business ethics and trade customs, and must not seek to serve its own interest in an unfair manner.
    2. 2. Employees of the supplier are prohibited from collecting competitive information via wrongful methods such as misrepresentation or information theft, and from obtaining confidential information without the consent of the relevant information owner.
    3. 3. A supplier must be aware of the above and accurately share it with its employees and subcontractors. In addition, a supplier must educate its employees on laws and regulations pertaining to anti-competition.
    1. 1. A supplier must provide information and education to its employees on the contents of this Sustainability Guidelines.
    2. 2. Furthermore, if any act of the employee of Hankook Tire & Technology conflicts with or is feared to conflict with these Guidelines, the supplier may tip off or send inquiries to the Cyber Audit Office, Management Diagnosis Team, and Legal Team of Hankook Tire & Technology.
    3. 3. Hankook Tire & Technology strictly keeps the details on the tip-off and inquiries of the supplier secure, and guarantees to keep the identify of the informant or inquirer confidential.
    4. 4. A supplier must have appropriate channels in place to report any violations or any feared violations of the aforementioned guidelines, and establish and operate a policy that guarantees the confidentiality of the informant's identity. In addition, a supplier must provide training to its employees on internal reporting channels, reporting procedures, and whistleblower protection systems.
    5. 5. Hankook Tire & Technology strongly recommends its suppliers to establish and implement sustainable purchasing policies that apply to their suppliers.
  • Sustainable natural rubber policy

    Hankook Tire & Technology remains fully committed towards ensuring the economic, social and environmental sustainability of the value chain and supply chain for natural rubber.

    Definition of natural rubber

    Natural rubber grown from rubber trees growing in tropical rainforests is a hydrocarbon polymer with elasticity, and it is made as by collecting and processing rubber tree sap.

    Mission

    Hankook Tire & Technology remains fully committed towards ensuring the economic, social and environmental sustainability of the value chain and supply chain for natural rubber.

    Background

    1. About 85% of natural rubber is cultivated by small-scale farmers, and the industrial demand for rubber continues to rise due to the growth in the global population and improved quality of life.
    2. Hankook Tire & Technology plans improve the productivity and quality of natural rubber and reduce the environmental impact of its supply chain to build value and supply chains to sustain issues.

    Value and supply chains for natural rubber

    Cultivator
    Broker
    Processor
    Manufacturer

    Sustainable natural rubber policy

    1. 1. We support the cultivators' quality of life through improved productivity and the quality of natural rubber.
      • • We strive to identify the best practices for cultivation (effective breeding, development of agricultural techniques, etc.) and to increase material efficiency by encouraging on-site training (use of quality fertilizers, appropriate tapping techniques, etc.)
    2. 2. We demand compliance with laws, regulations and the codes of ethics.
      • • Members of value and supply chains must comply with the laws and regulations of the country in which the relevant business establishment operates.
      • • Members of value and supply chains are obliged to comply with Hankook Tire & Technology's Code of Ethics and the Sustainability Guidelines for Suppliers.
    3. 3. We shall respect and provide support for the protection of human rights.
      • • Members of value and supply chains shall respect the free will of employees on labor.
      • • Members of value and supply chains shall comply with the minimum employment age set under the laws and regulations of the region where the relevant business establishment is located, and shall assign tasks after reviewing the impact on safety and health.
      • • Members of value and supply chains shall not discriminate against employees in recruitment, compensation, promotion, etc., and provide education on diversity and discrimination to employees.
      • • Members of value and supply chains shall create and maintain communication channels to address employee grievances.
      • • Members of value and supply chains shall provide a safe and clean working environment to employees.
    4. 4. We shall protect the environment and demand the minimization of environmental impact.
      • • We do not cultivate in the areas with high conservation values (*HCV) and high carbon sock (**HCS), and peatlands.
        - HCV : High Conservation Values https://www.hcvnetwork.org/
        - HCS : High Carbon Stock http://highcarbonstock.org/
      • • We prevent deforestation and large-scale land expropriation to preserve biodiversity, and minimize impact on local communities.
      • • We use water resources in a responsible and environmentally friendly manner and optimize energy use.
    5. 5. We strive to prevent the depletion of natural resources and ensure sustainability.
      • • We improve manufacturing processes, quality, and raw materials to reduce the use of raw materials.
    6. 6. We endeavor to trace and ensure transparency involving the value chain for natural rubber
      • • We strive to trace the complex and diverse natural rubber supply chain from cultivators to manufacturers.
      • • We fully engage in consultations with local and global stakeholders within value and supply chains.
      • • We disclose the plans and outcomes of our sustainable natural rubber policies in a transparent manner in good faith.

    Policy implementation and compliance

    1. 1. ESG evaluation is conducted on suppliers every two years to evaluate their compliance with the policy, and if the social and environmental impact caused by non-compliance is deemed significant, the company may suspend the relevant transaction.
    2. 2. We continue to evolve our ESG assessment tools.
  • Social contribution charter

    Sound corporate activities are valuable social contribution activities. Hankook Tire & Technology offers a solution for the company and local community to co-prosper through social contribution activities that will allow corporate capabilities to create social values.

    Declaration

    1. 1. Hankook Tire & Technology shall continue to create social and environmental values through economic and corporate activities and contribute towards revitalizing the local economy.
    2. 2. Hankook Tire & Technology shall fully practice contribution activities for quality satisfaction and customer safety with customer-oriented management activities.
    3. 3. Hankook Tire & Technology shall further enhance its efforts to minimize our environmental impact throughout its business activities and fully take part in conserving the local society and environment.
    4. 4. Hankook Tire & Technology shall remain entirely dedicated towards supporting the socially underprivileged or the equivalent, such as the disadvantaged in the local community, through the active return of created values to society.
    5. 5. Based on the fundamental philosophy of respect for human beings, Hankook Tire & Technology shall be at the forefront of building a healthy society by managing the health of its employees and providing medical support to local communities.

    Characteristics and orientation

    1. 1. Hankook Tire & Technology's social contribution activities maximize the interconnection with its core businesses as part of its efforts to ensure that corporate capabilities result in social values.
    2. 2. Hankook Tire & Technology's social contribution activities refrain from engaging in any inconsistent and aimless activities and focus the company-wide capabilities on its leading social contribution programs.
    3. 3. Hankook Tire & Technology's social contribution activities set the orientation for practical solutions to the pending issues and problems surrounding local communities.
  • Human rights management declaration

    Hankook Tire & Technology endorses and respects the protection of internationally proclaimed human rights, and fully endeavors to avoid any involvement in the human rights violations.

    Human Rights Management Declaration of Hankook Tire & Technology

    1. 1. Hankook Tire & Technology is fully aware that human rights, a universal value for humankind, are important, and that we can realize such value in our business activities. Based on this, we will continue to respect and protect the human rights of all workers, including irregular workers, temporary workers, and foreign workers, and, by extension, all stakeholders who come into contact with us through our products, services, and business activities.
    2. 2. To realize this responsibility to respect human rights, Hankook Tire & Technology will continue to endorse and abide by the principle under the Universal Declaration of Human Rights, the UN Global Compact, and the International Labor Organization's Fundamental Principles and Rights at Work.
    3. 3. In addition, Hankook Tire & Technology endorses the UN Guiding Principles on Business and Human Rights of the UN Human Rights Council, and to abide by the Principles, it will operate a human rights management system, encompassing the diagnosis, improvement activities and monitoring, internal and external communications, grievance settlement, and relief procedures.
    4. 4. As a company that is oriented towards fulfilling its social responsibilities and pursuing the happiness of all workers and stakeholders, Hankook Tire & Technology will comply with the laws of each country under any circumstances, and respect and protect human rights to contribute towards the sound development of society.
    Prohibition of forced labor
    Prohibition of child labor
    Non-discrimination
    Guarantee of gender equality
    Guarantee of the freedom of association
    Payment of appropriate remuneration and stable living
    Compliance with legal working hours
    Guarantee of health and safety
  • Conflict minerals policy

    Hankook Tire & Technology exercises caution through its entire supply chain to assure that it does not acquire any natural resources from conflict zones where human rights are under serious threat.

    Background

    The regulation on conflict minerals regulation was initiated to prevent any funds generated from the sale of minerals extracted in conflict zones from flowing into armed groups in the applicable country, and it requires a company to report any use of minerals mined in a conflict zone (tin, tantalum, tungsten, and gold).

    Definition of a conflict mineral

    1. 1. A natural resource that is mined through the serious violation and exploitation of human rights, that the profits thereof are used for rebel activities
    2. 2. Conflict zones: Democratic Republic of Congo, Sudan, Central African Republic, Republic of the Congo, Angola, Zambia, Tanzania, Burundi, Rwanda , and Uganda
    3. 3. Conflict minerals: Tin, tantalum, tungsten, and gold mined from conflict zones

    Conflict Minerals Policy of Hankook Tire & Technology

    1. 1. Hankook Tire & Technology's own regulations : Guidelines for the Selection and Management of Raw and Subsidiary Material Suppliers, Chapter III, Article 8 (Conflict Minerals) stipulates as follows.
      • • All suppliers who supply goods to the company must not use minerals mined in conflict zones and must submit a certificate of origin as a proof thereof.
      • • If necessary, the company may conduct due diligence on its suppliers.
    2. 2. Proof and risk assessment process for conflict minerals

    Hankook Tire & Technology’s response to conflict minerals

    1. 1. Since Hankook Tire & Technology is not listed on the US stock exchange, it is not subject to direct regulation, but as it supplies tires as the components of motor vehicles, there is an increasing demand from automakers to verify our non-use of conflict minerals. Although the tire’s bead wire contains tin which is one of the minerals subject to regulation, Hankook Tire & Technology is supplied with bead wires from companies that use tin from smelters designated as 'Conflict Free' by a third-party independent auditor.
    2. 2. To comply with the regulations on conflict minerals, Hankook Tire & Technology has established a purchasing policy to prohibit any use of conflict minerals, and stipulated that companies supplying raw materials subject to regulation may be inspected for the relevant issue during due diligence. We have posted such information on the supply chain to request a ban on the use of any conflict minerals, and companies that supply relevant minerals are required to submit a CMRT (conflict minerals reporting template) and proof of origin once every year.
  • Tax policy

    Hankook Tire & Technology practices the return of corporate profits to society through an honest tax payment. The company does not take advantage of tax rate structures or tax systems for tax avoidance, and it does not pass on any revenue generated to countries with lower tax rates.

    Hankook Tire & Technology is well aware that tax compliance and tax risk management are important factors for contributing to the national finance, securing customer interests, and maximizing profits for shareholders, and perceives that they are essential requirements for sustainable management. To this end, we have documented the standards and procedures in place for tax principles, policies, and risk management, and we pursue building a cooperative and constructive relationship with the tax authority for accurate tax payment and reports.

    1. 1. To pay taxes in good faith as specified under the law, we strictly comply with domestic and foreign tax laws, etc. in all transactions designed to create economic and social values, and accurately report and pay the tax payable under the tax laws and the like.
    2. 2. To ensure the transparency of taxation, we fully disclose all of the relevant company information to its stakeholders. In addition, to ensure the adequacy of the application of the tax laws and protect the stakeholders, we report the amount of tax payable through an accounting firm for he items of taxation as specified under the laws and regulations.
    3. 3. We do not transfer income across borders or engage in any transactions related to tax avoidance using the difference in tax laws across countries, loopholes in the international tax system, and tax havens, and we assure that our branches and subsidiaries are adequately taxed in a legitimate manner according to the value created in each country where our business activities are carried out.
    4. 4. For transactions with parties in a special relationship, our principles require our branches and subsidiaries to trade at normal prices according to the guidelines for the transfer prices of the OECD and the laws and regulations of each pertinent country, and for the transactions involving the transfer prices with parties in a special relationship outside Korea, we require external tax experts to compile reports on transfer prices and manage the implementation status.