Compliance News & Activities
Compliance Checklist for Anti-Corruption
Sang-Joon Park / Compliance Officer
Compliance to anti-corruption laws is not a discretion, but a strict legal obligation.
The Improper Solicitation and Graft Act, which is better known to us as the Kim Young-ran Act, has been in effect since September 28. The law prohibits improper solicitation and money transfers to public officials. We must meet our standards of conduct for this purpose of legislation. In this article, I would like to explain the Act for directors and employees of the company.
As the name implies, this law regulates i) the prohibition of improper solicitation to public officials and ii) the prohibition of providing money for public officials.
Improper solicitation is punished by itself regardless of whether the solicitation is realized or not
First, improper solicitation refers to asking public officials to violate the relevant laws or to handle the affairs outside the status and authority. In this case, if a party makes an affirmative appeal directly to a public officials, the party is not punished, but a public officials who has been asked to do so is punished. However, in the event of improper solicitation through a third party, the person concerned, third party and public officials are all punished. A request made by the Company's directors and employees shall be punished as a third-party request, not as a request by the party. In particular, whether or not the solicitation affected or realized the actual performance of the public official's job, it is punished by the act of improper solicitation itself.
If you offer the financial or other advantages, you will be penalized regardless of whether you are benefiting.
Next, the company's directors and employees shall not provide any money to the public officials in connection with their duties, at which time the consideration will not be questioned. Furthermore, a person shall be punished with criminal penalties if he provides money that exceeds 1 million won at a time or exceeds 3 million won in fiscal year total, regardless of any connection to their duties and regardless of any pretext such as donation, sponsorship, gift, etc. On the other hand, there is no penalty provision for providing money of less than 1 million won at a time and less than 3 million won in each fiscal year, if not related to the duties of public officials. However, we must recognize that the courts have a very wide range of the duties of public officials.
In exceptional cases, however, any of the following shall be allowed to offer to the public officials: ① food, the value of which is less than 30,000 won, gift, the value of which is less than 50,000 won, congratulatory or condolence money less than 50,000 won for purposes of social relationships, rituals, or aid ② money, goods, etc., provided uniformly in a normally accepted range by an organizer of an official event related to the duties of a public officials, etc. to all participants thereof, in the form of transportation, accommodation, food and beverages, etc. ③ souvenirs, promotional goods, etc. to be distributed to multiple unspecified persons, or awards or prizes given in a contest, a raffle, or a lottery. However, it should be noted that the public officials who is directly involved in the job are not allowed to be provided with the money of 30,000 won and 50,000 won as described above. No person shall offer, promise to offer, or express any intention to offer any prohibited money, goods to any public officials or to his/her spouse.
Anti-corruption laws also apply to people other than public officials.
In addition, the public officials who are subject to the Act include employees who work in government offices, public institutions, schools and media companies. Public affairs organizations or public institutions include various state-owned enterprise, researchers, technicians, associations, committees, and national and public hospitals. Therefore, it is necessary to carefully examine whether the other party is a public officials.
Keep in mind that if employees violate the law, the company is also punished.
On the other hand, even if a company employee has a personal relationship with a public officials or a journalist, the company is also punished by law when providing money or improper solicitation. In addition, the profits from the violation of the law are unfair and can be fully recovered by the relevant authorities. Therefore, special attention should be paid to the relationship with the public officials.
An improper solicitation or offer of money must be declared by the public officials.
It should not be misunderstood that a violation of the law will not be a problem or an idea that it will be 'okay' or 'okay' due to the practices, recognition(humanity), and relationship during that time. Because the law provides for a well-prepared reporting system for the public officials. In other words, the public officials are not only motivated to voluntarily report complaints and immunity regulations, but also protect and compensate for other complainants. As the money provider may change their mind and report at any time, it is a reasonable choice to refuse to accept any money or to report voluntarily in the public office.
All employees should act on a higher ethical standards
There are still a lot of controversies about the various requests of public officials and the provision of money, but it is often difficult to judge whether violation of the law is clear. However, there is a greater legal risk if you try to keep the baseline of the law in breach without radically correcting existing practices. Therefore, if there is any suspicion of violation of the law, it is necessary to act on the basis of strict judgment as 'one more step' than the law.
The company applies the principle of zero-tolerance for anti-corruption law violators
The company has already declared through its Code of Ethics and CEO Message that it will apply the principle of zero tolerance to all directors and employees who violate anti-corruption laws. Furthermore, the company makes it clear that it can not justify violations of laws and codes of ethics because of the company's profit or revenue targets.
If you do not adhere to the anti-corruption laws, keep in mind that all directors, employees and company can be punished easily, and all directors and employees should be fully aware of the laws and have high ethical standards.
Compliance News & Activities
|2019.09.06.||Check up product market structure and competition status to prevent cartel|
|2019.09.02.||「No Gift」 Campaign for Korean Thanksgiving Day|
|2019.08.19.||Attend in-house instructor training to enhance cartel prevention education|
|2019.08.05.||Survey on the employee's awareness of cartel and cartel preventive education for company's officer|
|2019.07.30.||Report to the Audit Committee the results of compliance monitoring performed under the Continous Monitoring System|
|2019.07.08.||Attended 2019 2nd session of 「The Public-Private Council for Anti-corruption in National Defence」 hosted by Ministry of National Defence|
|2019.07.01.||2019 1st half Voluntary Compliance Monitoring|
|2019.06.26.||Participating in the Public-Private Council for Anti-corruption in Defence Business organized by Defence Acpuisition Program Administration|
|2019.05.07.||Monthly Compliance Notice through Pop-up window
(CEO message, Compliance Guideline, Etc)
|2019.05.||TFT Employee Training for Internal Control System and conducts Preliminary operation evaluation|
|2019.05.||Conducts the identification of 2019 the corruption risks in the business area|
|2019.04.19.||Headquarter, Preventive education of sexual harassment on the job for all employees|
|2019.04.18.||Ulsan Plant, Preventive education of sexual harassment on job for all employees / Training to improve employees' awareness of disabled persons to eliminate bias in the workplace towards disabled persons|
|2019.03.28.||Attended 2019 1st Defense Business Compliance Support Council|
|2019.03.22.||Participating in the Public-Private Council for Anti-Corruption in National Defense organized by the Ministry of National Defense|
|2019.02.27.||Signing Ceremony for a Fair Trade Agreement(including anti-corruption) with Business Partners|
|2019.01.31.||Report to the Board of Directors the results of compliance monitoring by Compliance Officer|
|2019.01.31.||Report to the Board of Directors the operation status of internal accounting management system by Internal Accounting Controller|
|2019.01.11.||2018_2nd half Voluntary Compliance Monitoring|
|2019.01.10.||Ethics & Compliance education for the new employees|
|2019.01.10.||User Training for Internal Control System|
|2019.01.02.||Integrity Pledge by all directors and employees|
|2019.01.02.||Integrity ceremony for New Year at all business site(plant)|
|2018.12.17.||Establishment of Continuos Monitoring System based on ERP (Enterprise Resource Planning) system, etc. through external expert consulting to prevent anti-corruption risk|
|2018.12.17.||Redesign and update Internal Control System through external expert consulting to prevent anti-corruption risk|
|2018.11.23.||The Comprehensive Counsellor Training Course for the prevention of sexual harassment, sexual violence, and prostitution for the grievance counsellor (company staff)|
|2018.11.14.||Training to improve employees' awareness of disabled persons to eliminate bias in the workplace towards disabled persons|
|2018.11.14.||Information security training in headquarter|
|2018.11.06.||2018 Defense Industry Anti-Corruption Seminar hosted by Defense Acquisition Program Administration|
|2018.09.19.||Attended 3rd of 2018 Defense Business Compliance Support Council|
|2018.07.25.||Anti-Corruption education for the all employees by former prosecutor|
|2018.07.25.||Preventive education of sexual harassment on job for all employees|
|2018.07.12.||Compliance Education for the prevention of unfair stock trading from Korea Exchange|
|2018.07.06.||Attended Corporate Integrity Forum hosted by Korea Defense Industry Association and Transparency International Korea Network|
|2018.07.||2018_1st half_Voluntary Compliance Monitoring|
|2018.07.||Compliance Consulting for the prevention of unfair stock trading from Korea Exchange|
|2018.06.28.||Attended 2nd of 2018 Defense Business Compliance Support Council|
|2018.06.28.||Attended UK Defence Industry Benchmarking Project Briefing Seminar hosted by UN Global Compact Korea Network|
|2018.06.01.||Establishment and enforcement of the sexual harassment prevention regulations|
|2018.05.28.||Reporting to the Top Management Meeting on the prevention and measures for sexual harassment|
|2018.03.21.||Sexual Harassment Survey at Work|
|2018.03.16.||Report to the Board of Director on the Compliance Monitoring and Efficacy Testing of Compliance System|
|2018.03.08.||Attended 1st of 2018 Defense Business Compliance Support Council|
|2018.03.07.||Participation in anti-corruption pledge ceremony hosted by Fair Player Club|
|2018.02.01.||Signed fair trade agreement with suppliers|
|2018.02.01.||Fair Trade Agreement with 47 Company (Subcontractor)|
|2018.02.01.||2018 Poongsan – Partner Company Fair Trade Signing Ceremony|
|2018.01.30.||Ethics & Compliance education for the new employees|
|2018.01.||2017_2nd half Voluntary Compliance Monitoring|
|2018.01.||Integrity Pledge by all employees|
|2018.01.02.||Integrity ceremony for New Year at all business site(plant)|
|2017.12.20.||Attended Fair Player Club anti-corruption seminar hosted by UN Global Compact|
|2017.11.30.||2017 Defense Industry Anti-Corruption International Conference hosted by Defense Acquisition Program Administration|
|2017.11.21.||Attended Fair Player Club anti-corruption seminar hosted by UN Global Compact|
|2017.09.19.||Preventive education of sexual harassment on job for all employees|
|2017.06.22.||Attended Fair Player Club anti-corruption seminar hosted by UN Global Compact|
|2017.05.23.||Attended 3rd of 2017 Defense Business Compliance Support Council|
|2017.03.17.||Attended 2nd of 2017 Defense Business Compliance Support Council|
|2017.02.24.||Participation in anti-corruption pledge ceremony hosted by Fair Player Club|
|2017.02.09.||Participation In-depth workshop on ISO 37001 self-assessment evaluation and managing the third party risk hosted by UN Global Compact Network Korea, British Embassy Seoul and bsi|
|2017.02.09.||Report to the Board of Director on the Compliance Monitoring and Efficacy Testing of Compliance System|
|2017.01.20.||Attended 1st of 2017 Defense Business Compliance Support Council|
|2017.01.19.||Participation in ISO 37001 Self-assessment workshop|
|2017.01.13.||Attended Anti-Corruption Benchmarking Seminar 2|
|2017.01.||Enforcement of Policy on the Conflict of Minerals|
|2017.01.||2016_2nd half Voluntary Compliance Monitoring|
|2017.01.||Integrity Pledge by all employees|
|2017.01.02.||Integrity ceremony for New Year at all business site(plant)|
|2016.12.20.||Join defense business compliance support council|
|2016.12.||Anti-Corruption Law Compliance Statement on the 2017 Company Diary|
|2016.12.06.||Participation In-depth workshop on bribery red flag & risk assessment|
|2016.11.10.||Attended Anti-Corruption Benchmarking Seminar 1|
|2016.10.||Anti-Corruption Law employee training in Busan Plant|
|2016.10.||Anti-Corruption Law employee training in Ulsan Plant|
|2016.10.||Anti-Corruption Law employee training in Angang Plant|
|2016.10.||Anti-Corruption Law employee training in Daejeon R&D Center|
|2016.10.||Anti-Corruption Law Compliance Statement on the Company Newsletter|
|2016.09.30.||Circular on Anti-Corruption Compliance|
|2016.09.||Anti-Corruption Law employee training in Headquarter|
|2016.09.01.||Identify cases within the company for the anti-corruption law|
|2016.07.22.||Join the Fair Player Club|
|2016.07.18.||Announcement of code of conduct on the Anti-Corruption|
|2016.07.||2016_1st half_Voluntary Compliance Monitoring|
|2016.05.26.||Participation in signing ceremony for Memorandum of Understanding on creating an integrity ecosystem among the Anti-Corruption and Civil Rights Commission, Defense Acquisition Program Administration, and Korea Defense Industry Association|
|2016.03.18.||Integrity Pledge by BODMembers|
|2016.02.01.||Homepage renewal for ethical management|
|2016.01.||2015_2nd half Voluntary Compliance Monitoring|
|2016.01.||Integrity Pledge by all employees|
|2015.11.01.||Enactment of Compliance Guideline Operating Manual|
|2015.11.01.||Amendment the Practical Guideline of Code of Ethics|
|2012.05.23.||Enforcement of Conflict of Interest Guideline|
|2012.04.15.||Enactment of Compliance Guideline|
|2008.02.||Enforcement of Fair Trade Compliance Program|
|2007.02.01.||Declaration of Ethics, Enactment of Code of Ethics and Practical Guideline of Code of Ethics|