Compliance Management System

Compliance Program

Compliance Management System Operation Status Report Unfair Act

Compliance Program

Definition of CP (Compliance Program)

What is Compliance Program (CP)?

As an internal compliance system operated by companies to voluntarily comply with fair trade laws, its purpose is to proactively prevent violations of the law by presenting clear behavioral standards for compliance with relevant laws to executives/employees.

What are fair trade laws and regulations?

Fair trade laws and regulations refer to the laws under the jurisdiction of the Fair Trade Commission, and there are a total of 14 laws, including the Fair Trade Act, Subcontracting Act, Franchise Business Act, and Large-Scale Distribution Act.

8 Elements of CP

1. Establishing and implementing Standards and Procedures for the Compliance Program: Providing Standards and Procedures, through which the employees can understand and comply with the laws and regulations.

2. CEO's will and support for Self-compliance: Public Declaration of the CEO's will and policy to comply with relevant laws and regulations through the Company's website and etc.

3. Appointment of compliance manager in charge of CP operation: Appoint and announce compliance manager with practical authority and responsibility for CP operation through a resolution of the board of directors.

4. Production and utilization of Compliance handbook: Create and distribute internal guidelines that can be used in performing tasks related to fair trade compliance

5. Continuous and xontinuing compliance Program: Conduct continuous and systematic Compliance training for all employees

6. Establishment of an internal monitoring system: Have an internal monitoring system in operation for the prevention and early detection of violations of law

7. Discipliining employees who violated laws and regulations: Have company rules in place stipulating sanctions corresponding to violations of laws and regulations

8. Effectiveness evaluation and improvement measures: Implement and improve the ‘inspection, evaluation, etc.’ system of CP standards, procedures, and operation for effective operation

Compliance Management

Hyundai Rotem promotes fair and free competition among businesses by practicing ethics, mutual benefit, and compliance management. we build trust with customers and contributing to national development, and lead a future where everyone grows together.

Ethical Management

We recognize that our fairness and transparency are essential to survival, which shall be the highest value of corporate management.

Mutual Growth Management

We do not engage in unfair co-conduct and trade practices in accordance with the principle of fair completion and practice coexistence for mutual growth with our partners.

Compliance Management

We strive to prevent violations through compliance with fair trade compliance system and enhance corporate value through transparent and fair management.
employees should not engage in any act that unreasonably hinders fair trade.

• An act of unfairly refusing a transaction or discriminating against a counterparty
• An act unfairly ruling out competitors
• An act that unfairly interferes with the business activities of other business operators
• An act of entering into a transaction with the other party by unfairly using the trading position
• An act of entering into a transaction under conditions that unfairly restrict the business activities of the other party to the transaction

employees should act ethically and not do anything that damages the dignity of individuals or the company.

• An act of providing or receiving money, valuables and entertainment
• An act of soliciting or exerting pressure on executives/employees of subcontractors
• An act of using information obtained in relation to company business for personal gain
• Acts that are not polite to others in the performance of duties
• An act of causing damage to another party by delaying business when performing business

Compliance Committee

A company that practices compliance management based on fairness and transparency

Under the Compliance Manager, a Compliance Committee has been established to discuss and decide on key matters related to CP operations on a quarterly basis, and to ensure the CP culture spreads across all business sites through various activities such as CP-related education and dissemination of operational guidelines.

Compliance Performance

CEO - Compliance Manager - Legal Group(Compliance Team) & Business Management Team / Legal Group down Management Support Division, Corporate Planning Group, Finance Division, Procurement Division, Rail Solutions Division, Defense Solutions Division, Eco Plant Solutions Division, Quality Management Division, Rail Solutions R&D Center, Manufacturing Division

Role of Compliance Committee

Establish basic policies for fair trade compliance
Regularly check compliance activities by headquarters/division
Decide on sanctions against fair trade violators
Deliberate on important matters such as disputes and recommend or advise necessary measures