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KOREA

화승 70주년 기념 전시관 H STORY
Transparency
Guidelines for Practice
Hwaseung employees will strive to implement the management philosophy
and uphold ethical management practices.
Hwaseung employees will strive to implement the management philosophy
and uphold ethical management practices.
This guideline applies to all employees of Hwaseung, regardless of their location, whether domestic or international. For employees working in overseas locations, it will be implemented in compliance with local laws and regulations. Company policies shall be revised if they do not align with these guidelines to ensure they adhere to the principles outlined in the Code of Ethics.
This guideline applies to all employees of Hwaseung, regardless of their location, whether domestic or international. For employees working in overseas locations, it will be implemented in compliance with local laws and regulations. Company policies shall be revised if they do not align with these guidelines to ensure they adhere to the principles outlined in the Code of Ethics.
  • 1. General Provisions
    Article 1 (Purpose)
    • The purpose of these guidelines is to execute Hwaseung's management philosophy and foster ethical management through the provision of criteria for evaluating conduct and managing business affairs with regard to ethical principles. This will ensure that employees have a clear understanding of and adhere to ethical management policies, including Hwaseung's Charter of Ethics and Code of Ethics.
    Article 2 (Scope of Application)
    • This guideline applies to all employees of Hwaseung, regardless of their location, whether domestic or international. For employees working in overseas locations, it will be implemented in compliance with local laws and regulations. Company policies shall be revised if they do not align with these guidelines to ensure they adhere to the principles outlined in the Code of Ethics.
    Article 3 (Definitions of Terms)
    • 1. Example: Receiving or providing any form of economic or non-economic gain from a party with vested interest, including monetary transactions, gifts, hospitality, or accommodations.
    • 2. Money and valuables: Funds encompass various forms of monetary resources, including cash, checks, cards, gift certificates, vouchers, and securities, as well as any financial advantages, such as debt repayment, guarantees, loan interest, advances, or the complimentary or discounted value of movable or immovable assets.
    • 3. Gifts: Refer to items, memberships, lodging, tickets, admissions, and similar items that are given without expecting anything in return as a way of expressing congratulations and gratitude.
    • 4. Souvenir: Refers to an item distributed by the event organizer at a formal gathering, intended for dissemination to a varied number of individuals, and typically featuring the company's logo, including giveaways and awards.
    • 5. Entertainment: Expenses include costs for meals, alcoholic beverages, and sports activities, such as golf, various forms of entertainment, performances, and other related expenses.
    • 6. Accommodations: A range of offerings beyond monetary or leisure aspects, including transportation and lodging services, tourist information and events, as well as booking assistance.
    • 7. Condolence: The gesture of offering support and sympathies to an individual with whom one shares a personal or material connection upon the occurrence of a death or period of mourning.
    • 8. Flower wreath: An ornamental plant or arrangement of artificial or live flowers presented in commemoration of a promotion, transfer, departure, or similar occasion.
    • 9. Interested parties: Employees, affiliates, business partners (such as suppliers), domestic and foreign public officials, and organizations that may have an impact on the decision-making processes of the company and its employees in relation to the company's business operations.
    • 10. Standard: A level of comprehension that a reasonable person of sound judgment would deem equitable and not overly cumbersome for the recipient.
    • 11. If the family members, relatives, acquaintances, or any other associated individuals of an employee violate this regulation in relation to the company's business, it will be considered as the employee's own actions.
  • 2. Relationships with interested parties
    Article 4 (Basic Principles)
    • It is recommended to abstain from accepting gifts from interested parties. In the event that one is inadvertently accepted, it is advisable to politely decline or return the gift.
    • If you unavoidably receive a gift from an interested party, you must follow the established reporting procedure.
    • Employees are prohibited from accepting or requesting gratuities from parties of interest, including family members, relatives, or acquaintances perceived to have business connections with the employee.
    • Basic types of cases align with gratuities 1. Funds (monetary assets and valuables, including securities), entertainment, hosting, hospitality, and gratuities. 2. Lending of movable and immovable property, debt servicing or guarantee, and provision of loans 3. This encompasses commitments regarding employment and job placement post-retirement, commitments to secure employment for family members and acquaintances, commitments to engage in business agreements, and any other behavior that would typically be acknowledged as a bribe.
    • Overall, the receipt of cases directly or indirectly from interested parties is generally viewed as a breach of the Code of Ethics. Nevertheless, in the event that a manager receives funds from a vested party and subsequently transfers it to a subordinate without the subordinate being aware of the origin of the funds, it is only the manager who is deemed to have transgressed the Code of Ethics.
    Article 5 [Money and Valuables]
    • It is not permissible to seek, receive, offer, or demand interested individuals to supply any form of financial or non-financial gain, such as cash, checks, gift certificates, or securities, to a third party for any purpose.
    • Refrain from participating in any transaction involving movable or immovable property, real estate, guarantees, or money lending that may significantly benefit or disadvantage the parties involved.
    • If required to accept funds, it is imperative to promptly return them. In instances where returning the funds poses challenges, it is advised to inform your department head or report the matter to the Audit Office without delay.
    • The department head who receives the report should promptly return money and valuables, or if unable to do so, notify the Audit Office for further handling.
    • If you happen to receive money and valuables and choose to return them, they shall be handled in the following manner:
      • 1. Transfer money and valuables back to the interested party or company via wire transfer, registered mail, or courier, using a method that allows for documentation of the return in the recipient's name.
      • 2. Send a correspondence to the involved party, accompanied by evidence of reimbursement (such as a bankbook payment slip or courier's receipt), conveying appreciation for their return of the funds and assets, expressing gratitude for their integrity, and encouraging them to prevent comparable occurrences in the future.
      • 3. Forward the outcomes of the procedure, which consist of the report and a duplicate of the letter along with the return receipt, to the Audit Office.
    • Refrain from engaging in any activities involving leasing or pledging assets to benefit employees and their families.
    • Accepting movable or immovable property for free or materially benefiting from its purchase at a lower than normal price is also strictly prohibited. All of these actions are deemed as acceptance of money and valuables.
    • On the contrary, the practice of selling an employee's movable and immovable property to a third party at an inflated price, and subsequently profiting from it, is also recognized as the receipt of money and valuables.
    • Avoid requesting the interested party for payment or reimbursement, whether it be for yourself, your family, friends, debts (such as credit card bills, accounts receivable, loans, etc.), or accepting any offers from the interested party.
    • No offers of guarantees be solicited or accepted from any interested party, regardless of whether they are a financial institution, family member, friend, acquaintance, or employee.
    • Accepting proxy payments and loan guarantees for debt repayment from an interested party, regardless of the circumstances, is considered the acceptance of money and valuables.
    • Employees and their family members shall not borrow or lend money and valuables to or from any interested party.
    • The act of lending money and the payment or receipt of interest thereon, for any reason, shall be deemed to be the receipt of money and valuables.
    Article 6 [Gift and Souvenir]
    • You are prohibited from accepting gifts and souvenirs from interested parties that exceed customary levels of gratuity. If you receive gifts and souvenirs that exceed the usual level inadvertently, it is recommended to promptly return them. If you encounter difficulties in returning them, inform your department head.
    • The following are cases where returning is deem difficult:
      • The sender is unknown.
      • You are aware of the sender's identity, but their precise whereabouts or contact details remain unknown.
      • If the item being returned is a perishable food item or a living organism with a limited expiration date.
      • Returning items may be difficult in cases where doing so violates protocol, diplomatic norms, or cultural customs.
      • Otherwise, the equivalent of
    • You are permitted to receive gifts and souvenirs bearing the corporate logo of the interested party, or typically provided to attendees at events organized by the interested party (valued at KRW 100,000 or less). However, any items exceeding this standard must be disclosed to the department head.
    • Received gifts and souvenirs should be handled transparently and responsibly by the department head, who should also report the outcomes to the Audit Office. If managing the situation independently becomes challenging, consign it to the audit office.
    • The method outlined below is to be handled by the department head:
      • Items displaying the company logo or acquired as a token of participation in an event, which surpass the usual level of worth but are not deemed significantly valuable, may be accepted for personal use at the discretion of the department manager.
      • It is recommended to deliver donations to social facilities such as orphanages, nursing homes, sister cities, community service organizations, and to elderly individuals living alone.
      • Items with short lifespan, like perishable goods or living organisms, should be promptly handled and disposed of at the first sign of decay.
      • Expensive gifts exchanged during business transactions with interested parties, domestically or internationally, such as high-end fountain pens, liquor, or wine, should be reported to the Audit Office. However, anything valuable can be stored within your department or company.
    • The recommended items to be sent to the audit office are as follows:
      • Items of higher value than usual.
      • Items of value to the company received at a foreign exchange event
      • A gift sent with impure motivations by a party with a direct interest, akin to a bribe.
      • Items of note received in exchange for a commendable action.
      • Significant items from prominent individuals, institutions, or organizations.
      • Various items that may require submission to the audit office.
    • When returning gifts and souvenirs, send a letter to the relevant party detailing the reasons for the return, expressing gratitude to the giver, and requesting measures to avoid similar situations in the future. Forward the outcomes of the procedure, which consist of the report and a duplicate of the letter along with the return receipt, to the Audit Office.
    • If you encounter challenges in determining the market value of gifts and souvenirs, or if the value is unspecified in these guidelines, we recommend seeking guidance from the Audit Office beforehand, or taking necessary actions and informing the Audit Office of your decision.
    Article 7 [Solicitation and Entertainment]
    • Soliciting or providing meals or entertainment to any interested party is not permitted. Nevertheless, hospitality at a standard level may be offered and accepted, and for individuals governed by the Act on the Prohibition of Improper Solicitation and Graft, it must be conducted in a manner that complies with the law (not exceeding KRW 30,000 per meal).
    • Do not entertain beyond the limits of standard hospitality; in unavoidable circumstances, limit provision to a meal and a beverage, while discouraging unethical consumption.
    • Approval from the department head is required for exceeding the standard level of providing hospitality to interested parties at company expense and participating in events that involve excessive hospitality.
    • Entertainment activities that are deemed inappropriate and may undermine the reputation of employees, as well as leisure activities (such as Go-Stop card game, visiting casinos, betting on golf, playing cards, or mahjong) are strictly prohibited irrespective of the involved sum.
    • If you are unsure whether a meal is considered appropriate for business collaboration or entertainment purposes, seek guidance from the Audit Office beforehand or proceed with your own discretion and inform the Audit Office of the outcome.
    • Prior approval must be obtained from the designated management department of each company when providing entertainment and hospitality to individuals regulated by the Act on the Prohibition of Corruption and Acceptance of Money and Valuables.
    제 8 조 [ 편의제공 ]
    • You are not permitted to request or receive accommodations, including transportation, lodging, or event assistance, from parties with vested interests, and must refrain from leveraging your position of authority to request or accept facility reservations from such parties. When attending an event organized by a sponsoring party or funded in whole or in part by the sponsoring party, all participants may receive transportation, lodging, and other amenities that are offered uniformly to all attendees.
    • Transportation and accommodation arrangements for individual business trips that result in a financial burden for the interested party will not be accepted. In unavoidable circumstances where public transportation is not accessible or the geography is unfamiliar, company vehicles and company housing offered by interested parties may be accepted.
    • Ensure that the interested party does not pay for expenses at a dinner or event. In the event of an incidental meeting at the designated location where the concerned party willingly covers a cost, you are obliged to reimburse the expenditure either with company funds or from your own finances.
    • You are not permitted to request sponsorships or announce in advance your intention to seek shared event costs, unless it is an official business joint event.
    • Even during departmental events or club activities, you are prohibited from accepting any form of advantageous compensation or accommodations from interested parties.
    • If the circumstances of the event necessitate inviting interested parties, you are required to obtain approval from the company beforehand. However, it is essential to communicate to prospective participants that no reciprocation is expected in order to avoid any undue pressure for their involvement in the event.
    • Prior approval must be obtained from the designated management department of each company when offering accommodations to individuals governed by the Act on the Prohibition of Corruption and Acceptance of Money and Valuables
    Article 9 [Congratulation and Condolence]
    • Do not disclose congratulations and condolence events that occur to you or your coworkers to outside interested parties who may be directly affected.
    • Notices can be sent to relatives, individuals with whom you have a longstanding personal connection (such as alumni, co-workers, financial meetings, neighbors, and friends), employees who utilize internal bulletin boards (online or offline), retired individuals, and individuals who were interest parties in your work but currently have an indirect relationship with you. However, even if you have a personal connection, you should refrain from sending an event to an external interested party whose rights or interests may be directly impacted by the execution of your responsibilities.
    • It is recommended that expenditures for congratulations and condolences should be limited to KRW 50,000, with a maximum limit of KRW 100,000. Expenditures made on behalf of the company must adhere to legal and societal norms, considering the unique circumstances of each organization.
    • Gifts for congratulations and condolences are restricted to items such as first-birthday rings and condolence flowers that are traditionally appropriate for each occasion.
    Article 10 [Flower and Wreath]
    • An individual is prohibited from demanding flowers and wreaths from an interested party in relation to a personnel appointments, such as a promotion or transfer.
    • If the interested party has expressed an intention to send flowers or wreaths in advance, you should make an effort to politely decline.
    • Flowers or wreaths sent on behalf of the company will be done in a manner that complies with the law.
    Article 11 [Guarantee Retirement]
    • You are prohibited from soliciting or accepting any promise of post-retirement employment, employment benefits, or transaction commitments from an interested party.
    • If you receive an offer of job security or a business arrangement from an interested party, you must immediately report it to your executive officer and then to the Audit Office.
    Article 12 [Employment Solicitation]
    • You are prohibited from seeking job opportunities internally or externally for personal advancement, career progression, overseas job positions.
    • You are prohibited from requesting any information relating to personnel issues, such as the recruitment, advancement, or continued employment of individuals with whom you have a personal relationship.
    Article 13 [Between Employee]
    • You are not allowed to exchange anything of value in return for personal or financial gain. However, expenditures for congratulations and condolences, which are typically appropriate, should not exceed KRW 100,000.
    • Gifts exchanged among supervisors, employees, and colleagues shall not surpass an annual limit of KRW 50,000 and KRW 200,000, respectively.
    • The practice of distributing credit and profits to employees, such as through loans, payment guarantees, or co-investment, is not recommended.
    • Employees must acknowledge that sexual harassment in the workplace is a violation of the law, leading to a reduction in the victim's motivation and productivity, and should refrain from any behavior that amounts to sexual harassment.
    • The company shall provide essential education and training for employees to prevent sexual harassment in the workplace.
  • 3. Transparency with Business Partners
    Article 14 [Basic Principle]
    • Adhere strictly to the regulations outlined in the Fair Trade Act when engaging in transactions with business partners.
    • Suppliers must choose the most suitable supplier in an open and competitive market according to equitable and transparent guidelines. The principle shall be adhered to in all transactions, whether they involve bulk purchase agreements or simple service contracts.
    • If it becomes necessary to impose restrictions or modifications on the terms of business with business partners, they should be made based on coherent and legitimate reasons, following a transparent protocol.
    • Unjust conduct towards business partners in a relationship encompasses inequitable opportunities, unjust trade practices, unauthorized disclosure of supplier information, dissemination of information to competitors interested in entering into trade agreements, and any other unjust trade practices specified in the Act and Enforcement Decree on Fair Trade.
    • In dealing with business partners, it is imperative to adhere to the specified transaction regulations and equitable protocols. Any breach of these guidelines, without a clear and objective explanation, will be viewed as a violation of the Code of Ethics. Influencing an interested party through a relevant department, even if it is outside of one's designated responsibilities, is also considered a significant breach of the Code of Ethics.
    Article 15 [Granting Unfair Opportunity]
    • Employees who hold positions of significant influence in evaluating the selection of a business partner must refrain from using their influence to show favoritism or discrimination toward any particular business partner.
    • Business partners shall be given equitable opportunities and conditions as outlined by the company's principle and procedures, and must refrain from participating in any unfair trade practices prohibited by fair trade laws or any acts that contravene the company's regulations.
    • Do not decline to engage in business with a business partner without providing a specific reason, regardless of any legal concerns regarding the transaction or absence of any other disqualifications outlined in the company's participation guidelines.
    • One should refrain from imposing limitations on participation in transactions, such as favoring specific business partners or excluding others, establishing exclusive terms of trade on price and quality, defining trading areas without sufficient justification, or restricting trading partners without clear rationale.
    • Furthermore, discrimination in any form is strictly prohibited, including: applying delivery prices or quality conditions discriminatorily to benefit preferred suppliers or disadvantage disfavored suppliers, adjusting transaction volumes arbitrarily or prioritizing transactions through collusion, protecting existing suppliers, especially when they do not enhance the Company's competitiveness, granting preferential treatment to related parties, such as retirees, showing favoritism based on academic or personal relationships.
    Article 16 [Unfair trade practices]
    • The principle of coexistence through partnership with business partners must be observed. You must not establish unilateral business relationships solely for the benefit of the company or intentionally disadvantage a particular business partner and cause it to suffer damage.
    • The company is not permitted to independently modify the terms of the transaction without prior discussion if there is a valid reason for altering the contract terms within the specified period, such as requesting a reduction in delivery unit prices, notifying changes in delivery quantities, requesting changes to the contract details, delaying payments intentionally, or suspending a transaction without justification during a contract period.
    • An employee shall not demonstrate preferential treatment to any particular business partner in order to gain a competitive edge, including providing financial or personnel resources without valid justification, transferring company assets without transparent procedures, or offering them for lease at a reduced or no cost.
    • It is important to avoid interfering with your business partner's operations without consultation, including unfair use of their technology, unfair recruitment of their employees, intentionally disrupting transactions with competitors, or any other actions that could harm your business partner.
    • Business partner information provided for the purpose of the business relationship shall not be shared without the authorization of the business partner.
    • Avoid using your higher rank to pressure or subtly sway a business associate into utilizing a company owned by the family of an employee.
    • Ensure transparency and fairness, particularly when dealing with businesses that have connections to employees' family members.
  • 4. Participating in an unjust distribution of ownership with a business partner
    Article 17 [Basic Principle]
    • Do not inappropriately obtain ownership stakes in public or private investments of business associates with whom you have a vested interest.
    • Collaborating with a related party on an investment and purchasing shared property is considered inappropriate. Violating this rule will be considered as receiving an amount equal to equity from the related party, reflecting the actual ownership relationship.
    • Engaging in the purchase of securities or obtaining shared assets, whether personally or for someone else (like a family member or friend), is typically seen as a breach of the Code of Ethics. Furthermore, if you advise someone to invest in a certain opportunity, even if you do not benefit from it personally, and you have the ability to sway their decision because of your professional connection, you will be seen as engaging in unethical behavior and breaching the Code of Ethics.
    • Ownership of a business partner that engages in business with the company, whether under the employee's name, a family member's name, through joint ventures with interested parties, or in any other way, is completely forbidden.
    Article 18 [Receipt and investment of shares, joint investment and acquisition]
    • It is considered unfair trading for an employee to hold shares in a company related to their job duties.
    • The stock eligible for stock receipt is typically the stock of any company registered as a business partner. This applies to all situations in which the employee has control over the company, even if the vendors are not officially registered as business partners. This includes not only shares acquired while the employee was working, but also shares in which the individual has made a significant investment, including shares bought or sold while involved in relevant business or in a position of authority, and shares in which the individual has made a significant investment, including shares purchased or sold under a different name, even if the connection with the business partner is not related to the current business.
    • In the event that a person has made a significant investment in the shares of a business partner that the company is affiliated with and that is relevant to the employee's responsibilities, regardless of any direct business dealings, the individual must inform the Audit Office about the ownership status of listed shares, the status of unlisted shares being held or sold, and the status of shares that were unlisted at the time of acquisition but are now listed.
    • <In In the instance of publicly traded stocks, the company must promptly remove any stocks deemed to potentially affect business performance or stock price by virtue of their ties to a business partner and prevent any future sales.> Unlisted stocks, whether influenced by the company through a business partnership or not, must be promptly sold and all future sales are prohibited.
    • If the undisclosed portion is identified, the employee could face potential civil and criminal consequences, and in the event of a business partner, the business association may be terminated.
    • If employees voluntarily report the disposal of stocks according to regulations, any issues in the future will be assessed for intent, and appropriate actions will be taken following the personnel regulations.
    • If an employee and their family members invest funds together with an interested party to acquire property, whether movable or immovable, for any reason, the employee shall be considered to have received a significant sum from the interested party.
    • Any assets that you own a beneficial interest in, such as condos, golf or gym memberships, jointly owned real estate, and assets acquired under another person's name, are considered to have been received from a related party.
    • If you make a joint investment with a personal friend before partnering with the company, you need to disclose the details to the Audit Office and deal with your ownership stake.
    • Participation as a director or auditor of a company related to an interested party, or engaging in business activities that could affect transactions, is not allowed, even if there is no co-investment involved.
  • 5. Use of company assets
    Article 19 [Basic Principle]
    • The company considers its tangible and intangible assets, along with its confidential information, to be valuable assets. Employees are accountable for protecting these assets from loss, misuse, and theft, ensuring they are used solely for company-related activities and authorized purposes.
    • The company must use public funds for legitimate business purposes. Therefore, it should be utilized for its designated use and comply with the company's guidelines. Asset misappropriation can take various forms, such as unauthorized use or waste of company assets, embezzlement, and misappropriation of both tangible and intangible assets.
    Article 20 [ Embezzlement and misappropriation of assets/public funds ]
    • The company must use all assets following proper procedures, explicit accounting guidelines, and information protection regulations. Not complying with this requirement, and not providing a clear and objective explanation for the reasons behind the non-compliance, is typically viewed as a breach of the Code of Ethics. The Code of Ethics considers it a serious violation when employees or related parties illegally take company assets for personal gain or misuse company funds.
    • Embezzlement and misappropriation of assets 1. Use of the company's physical assets, such as land, buildings, facilities, and equipment, for non-business purposes, unauthorized use, or personal gain. 2. Removing, using, sharing with family or friends, or transferring the expenses of maintaining work property, such as vehicles, computers, valuable items, or office supplies, without permission. 3. Encompasses various acts that are widely acknowledged as theft or misappropriation of assets, such as taking product designs, trade secrets, business information, information systems, and using them for personal gain or sharing them with a competitor.
    • Embezzlement and misappropriation of public funds 1. Unauthorized withdrawals of company funds, personal loans, or manipulation of accounting records in order to embezzle and distribute to parties of interest. 2. Illegal misappropriation of corporate cards 3. Expenses with fake receipts 4. Handling unsubstantiated expenses 5. Consolidate expenses from various accounts, like personal entertainment or miscellaneous entertainment costs. 6. Using corporate cards for personal expenses by giving them to family members or third parties is prohibited. 7. Private executions that are contrary to the company's expense accounting standards, as well as any actions that would normally be recognized as embezzlement and misappropriation of public funds.
    • Assets such as corporate cards and various supplies, including vehicles and PCs, shall be used exclusively for business purposes and not for personal use. In the event that private use of company assets is necessary, the user must promptly inform the department head and executive officer of the specifics of the use. Any expenses accrued for the use of said assets must be reimbursed and accounted for in accordance with the company's financial policies.
    • Information and communication systems should only be utilized for conducting business operations or approved purposes. Do not use them for improper or commercial purposes, or reveal any confidential information using company systems.
    • Employees are not allowed to conduct any personal business or use information gained from their positions for personal gain to involve in another person's business.
    • Employees are not allowed to share any confidential information or trade secrets of the company without permission. Any information obtained while working must not be shared without permission, even if you no longer work for the company.
    • Employees are not allowed to distort, falsify, or improperly harm information concerning the company, nor shall spread falsehoods or rumors.
    • If noticed any unauthorized use of company assets by yourself or someone else, inform the Audit Office immediately. Intentionally supporting or enabling such behavior is also seen as a breach of the Code of Ethics.
  • 6. Document manipulation and false reporting behavior
    Article 21 [Basic Principle]
    • All information must be recorded and reported with precision and integrity.
    • The deliberate or careless alteration of documents or figures that deviate from the actual data by employees may result in inaccuracies in the decision-making and evaluation processes of senior managers or relevant departments, leading to misjudgments. It should be recognized as a clear illegal act that can greatly harm the interests of the company.
    • All accounting documents, including financial statements, must be prepared accurately, adhering to tax laws and corporate accounting standards, and then disclosed to shareholders and other inArterested parties.
    Article 22 [Document manipulation and false reporting]
    • Employees need to guarantee that all documents and accounts they create and submit to the company are accurately filled out and free of any significant mistakes.
    • In the event of an error occurring in a document or calculation as a result of oversight, it is required to promptly notify the department head or supervisor and implement necessary actions such as correction or supplementation.
    • A supervisor acting unethically by instructing the manipulation of documents or calculations should be reported to the Audit Office by the subordinate. Not reporting is seen as a breach of the Code of Ethics for both the individual involved and any staff member who learns about the issue.
    • It is deemed unethical to provide inaccurate or deceptive information while selling goods or delivering services to clients.
    • In addition to direct misreporting, unethical behavior also encompasses the manipulation of information with the aim of deceiving the recipient.
    • It is against company policy to provide false or deceitful information to management or the Audit Office.
  • 7. Security Management
    Article 23 [Basic Principle]
    • HWASEUNG's security protocol contains comprehensive implementation guidelines essential for maintaining security and preventing the unauthorized disclosure of corporate secrets to external parties, ultimately safeguarding business operations and fostering the company's growth.
    • Any details not outlined in these guidelines will be governed by the company's collective bargaining agreements and employment regulations.
    • The security business organization shall be structured and operated in line with these guidelines to ensure optimal performance of the company's security operations.
    Article 24 [Security Management]
    • The following authorities and responsibilities are allocated to the security business within the company's scope of security operations:
        Security representative: CEO of each company
      • Security representatives and approvers
        • Security officer : Executive in charge of management
      • Take responsibility for security management
      • Directing and approving enactment and revision of security regulations
      • Directing and supervising security audits
        • Security officer: The head of the department in charge of security management
      • Oversee the work of the security principal and company security officer, assistant, and company security officer
      • Oversee security-related areas (documentation, people, training, and IT)
        • Security officer: Working-level in the department responsible for security management
      • Enactment and revision of security policies and related manuals
      • Perform and report security audits
      • Identify and provide information on ownership of trade secrets
      • Management of security organizations and institutional operations
      • Introduction and operation of access control system
      • Oversee the status of security zones
      • Security position training
      • Engaging in security-related external affairs
        • Significant items from prominent individuals, institutions, or organizations Miscellaneous items that may need to be sent to the audit office
    • Security councils can be established within all workplaces to discuss and make decisions regarding matters concerning the effective functioning and oversight of security protocols.
    • Human Resources shall not assign non-regular employees to security-critical positions.
    • Employees are obligated to maintain the confidentiality of any information acquired during their employment, even after retirement, particularly regarding the security of involved parties. Non-compliance may lead to civil and criminal liability under relevant laws and regulations.
    • Sensitive documents are classified and stored following filing protocols, with unauthorized sharing of such documents from a party of interest being strictly forbidden.
    • The head of the relevant department must authorize access to restricted areas.
    • Permission from the department head overseeing access control is required for individuals, vehicles, and items to enter or exit the premises of the company.
    • Prior authorization from the department head is required before filming on company premises, whether indoors or outdoors.
    • In order to ensure the security of servers, networks, and applications, the individual responsible for computer management should identify and address risk factors, as well as implement safeguards to prevent external intrusion and piracy.
    • Disclosing trade secrets, research and development data, or other security-sensitive information belonging to the company or other entities, whether during employment or after retirement, may result in civil and criminal consequences.
    • Regular or ad hoc training sessions may be carried out, with special investigations being conducted as necessary in serious incidents.
  • 8. Other best practices
    Article 25 [Basic Principle]
    • Employees must diligently fulfill their assigned duties according to their position and responsibilities, ensuring they do not cause any losses to the company or tarnish its reputation.
    • Employees are prohibited from engaging in side jobs or secondary employment that interferes with their primary duties at the company.
    Article 26 [Best Practices]
    • Employees must not conceal or tolerate misconduct committed by supervisors or coworkers.
    • Forgery of a supervisor's or coworker's signature or any document is strictly prohibited.
    • Altering the proof or the actual use, or making arbitrary changes to the account category, is not allowed.
    • Employees must refrain from unfairly discriminating against their superiors or coworkers on the basis of race, nationality, gender, age, education, religion, region, disability, marital status, or any other grounds.
    • Employees must not assign unfair tasks to disabled individuals, pregnant women, minors, or any other individual protected under labor relations laws.
    • Employees are prohibited from pursuing any side business or second job that leverages information obtained through their employment without obtaining prior approval from the Company.
    • Approval from the company is required for limited-term employment at non-profit (public benefit) organizations for academic and educational purposes.
  • 9. Comply with Code of Ethics
    Article 27 [Basic Principle]
    • Employees are required to adhere to the Code of Ethics as a guide for their behavior and decision-making.
    • If an employee becomes aware of a violation of the Code of Ethics, whether through their own conduct or the conduct of another, they are required to report the incident to the Audit Office.
    • The company shall discipline employees who violate the Code of Ethics according to details of violation, but shall take into account the circumstances of voluntary reporting.
    • The company shall protect whistleblowers or individuals who report violations of the Code of Ethics from any form of adverse action.
    Article 28 [Best Practices]
    • Compliance with the Code of Ethics and the Guidelines
      • 1. Employees must fully understand the Code of Ethics and the guidelines and pledge to comply with them.
      • 2. Employees shall consult the Audit Office for clarifications on interpretation and implementation of the Code of Ethics and the guidelines. In cases of doubt or disagreement regarding interpretation, the decision made by the Audit Office must be followed.
      • 3. Employees are required to participate in company-provided ethical management training to enhance their understanding and implementation of ethical management practices.
    • Reporting obligations
      • Employees are required to promptly report any breaches of the Code of Ethics and the guidelines, whether committed by themselves or by others, to the Audit Office as soon as they become aware of such breaches.
    • Discipline for violations
      • 1. Employees who violate the Code of Ethics or the guidelines, or assist others in doing so, are subject to disciplinary measures.
      • 2. In cases where an employee voluntarily reports a breach of the Code of Ethics or guidelines, the company may consider mitigating factors when determining disciplinary action.
      • 3. Disciplinary measures shall be implemented in accordance with the guidelines set forth in the Group Regulations and the penalty provisions outlined in each company's policies. Any problems that are not covered by these rules will be dealt with by a separate assessment. Depending on how serious the violation is, you could also face legal action from the company. The administrator could face disciplinary action for failing to properly supervise.
      • 4. Business partners could face trading penalties based on the violation's seriousness, such as warnings, limits on trading opportunities, changes in volume, and suspension of trading.
    • Protecting whistleblowers
      • 1. Whistleblowers and witnesses involved in ethical management misconduct cases are typically not revealed.
      • 2. Employees must maintain the confidentiality of the whistleblower's identity and anyone else who has been interviewed in relation to the whistleblower's report. No retaliation shall be taken against the whistleblower or any individual who offers a statement.
      • 3. Whistleblowers and individuals who provide information about wrongdoing may seek protection or assistance from the Audit Office if they experience negative consequences, e.g. having their identity exposed or facing discrimination. The Audit Office shall take actions as requested by the whistleblower or individual providing the information.
      • 4. The Audit Office shall investigate any disclosure of the whistleblower's identity, and any employee who discloses it intentionally or negligently will face disciplinary action.
    • Reporting rewards
      • 1. The company may provide rewards to whistleblowers and witnesses involved in ethical management as needed.
      • 2. The company has the authority to take action against whistleblowers with malicious motives and cite any relevant information from the report based on company policies.
      • 3. The following are not eligible for reward:
        • The report is not true or cannot be verified.
        • If the Audit Office becomes aware of the whistleblower's identity or if it becomes publicly accessible
        • If you reported anonymously or under a pseudonym
        • If reported by a person involved in promoting ethical management, such as the ethical management department
        • If the award review deems the award ineligible