For the recent years, the world economy became impossible to predict, as higher interest-rate policy has been adopted worldwide and two wars are prolonged. And we are accustomed to the words like, stagnated domestic demand, recession and low growth.

In its New Year’s address, the Korea Fair Trade Commission, in charge of the competition policy, put most priority on stabilizing public welfare, and expressed its concern that deteriorating profitability, caused by unstable economy conditions, may be shifted to small and medium sized businesses. K-FTC’s zero-tolerance principle on anti-competitive and unfair transaction is well evidenced by its reorganization that separated investigation division and policy division for the first time in 33 years; and its focus on public welfare made the Delivery Price Indexation System, which became effective last year, its main policy to enforce. The K-FTC’s stance is to contribute advanced market economy by establishing market order that is free and fair, and the request for compliance management will be stronger more than ever in 2024.

In 2002, We, Hyundai Rotem, under the principle of Transparent & Compliance Management, has implemented, and operated ever since, the Compliance Program, an internal self-regulation system. The Compliance Program has been continuously monitored and refined. Especially, K-FTC will now directly evaluate and rate compliance programs of companies, based on which incentives, such as exemption of investigation, reduction of penalty fines and reward, will be given (“CP Rating System”). Hyundai Rotem’s Compliance Program will also be objectively evaluated through K-FTC’s CP Rating System, and will be improved.

Fair trade order can be established only through all employees respect the law and smooth operation of the Compliance Program. We have to thoroughly examine and comply with all relevant laws and regulations for our business, and must be pledged to comply with globally accepted compliance requirements. Please put utmost effort to comply with the Delivery Price Indexation System that will be fully enforced this year, and not to commit any collusive conduct with competitors, unfair internal transaction with affiliated companies, and usurping technologies of suppliers. We must eradicate illegal conducts.

As Compliance Management became not only corporation’s essential requirement, but also individual employee’s legal responsibility and a matter of livelihood, please follow below code of conduct.

Hyundai Rotem's CP operation regulation clearly outlines the principles that executives and employees must adhere to. It guarantees the independent work performance of the Compliance Officer in charge, and places the Compliance Committee as a body directly under the CEO, which facilitates CP policies and critical matters to be determined by the CEO. CP operation regulation is meticulously designed to ensure that CP operates in organic and wholesome ways.

However, no matter how well the related regulations and systems are implemented, without the interest and will of executives and employees, they are nothing but empty rhetoric. For the stable operation of CP, it is most important for all executives and employees to have an awareness of compliance and participate autonomously.

The company is making a significant effort to internalize CP by carrying out activities to raise compliance awareness among executives and employees by providing fair trade training, requesting pledges to practice compliance management, distributing voluntary compliance handbooks, conducting on-site inspections of business sites, establishing and improving the compliance support system, and so on. We need support and active involvement from our employees, business partners and customers in order to deeply implement transparent and ethical business management as Hyundai Rotem's culture.

Thank You