CERTIFICATES
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CERTIFICATES
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Ethics

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Internal Accounting Control

Poongsan has established and operated an internal accounting control system in order to enhance internal and external credibility and reliability of accounting information (including information on transactions that form the basis of accounting information) prepared by the company in accordance with Article 2-2 of the Act on External Audit of Stock Companies.

Purpose of Internal Accounting Control

check 01

Ensuring the efficiency and effectiveness of enterprise operation

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Ensuring the reliability of financial information

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Compliance with relevant laws and policies for Anti-Corruptions

  • Enhance the effectiveness of design and operation of internal accounting controls through legal risk-based approaches
  • Strengthening prevention of anti-fraud and anti-corruption
  • Optimization of IT General Controls and Automated Controls in an IT environment
Structure of Internal Control System
Internal Control Target
Mega Process Target Index
Entity Level Conrtol 89
Process Level Control Sell 81
Purchase 32
Inventory and Cost 50
Financing 63
HR and Salary 67
Fixed Assets 23
Securities 20
Financial settlement 86
IT Control 52
TOTAL 563
Process Design
  • Risk assessment, taking into account the quantitative importance of the relevant account, the size and complexity of the transaction, the likelihood of loss resulting from errors or fraud
  • Update according to job description and flow chart
  • Build control activities and test procedures to meet identified risks per process level control (PLC: Process Level Control)
Entity Level Control
01Control Environment
Descriptions

An environment in which an organization can understand and participate in internal control as the foundation of individual morality, integrity, and business competence.

Policy and Procedure Top Management’s Leadership for Ethics Management and publication of Code of Conduct Control by Audit Committee

Training and Education Program for Compliance

Investigation and punishment system for employees

02Risk Assessment
Descriptions

Identify and assess factors that impede the achievement of the organization's goals and provide criteria for effective internal control design

Policy and Procedure

Accounting Policy Steering Committee (PSAM)

Establish mid- to long-term vision and annual business plan IT Disaster Recovery Plan and ERP Steering Committee
03Control Activity
Descriptions

Provide confidence in meeting organizational goals by designing and operating effective control activities

Policy and Procedure Systematic operation of advanced internal control management system

IT general control (IT security activity plan and IT business plan etc.)

04Information and Communication
Descriptions

Gathering information related to internal and external business performance and establishing horizontal and vertical information communication system

Policy and Procedure Whistle blowing system (Cyber report etc.)

Groupware and in-house messenger

Customer support function for homepage to gather external opinions

05Monitoring
Descriptions

Monitor effectiveness to ensure that operational internal controls are working properly

Policy and Procedure Continuous monitoring by automation system

Reflecting continuous monitoring and internal and external audit results into internal control management system

Reporting procedure of Internal Control System
Operation on the Internal Control System
Continuous Monitoring System

풍산은 내부 Data를 이용하여, 사전에 정의된 Rule에 의해서 이상징후를 상시적으로 모니터링하는 상시모니터링 시스템을 운영하고 있습니다.

  • Filter the company's internal data primarily (SQL Query)
  • Interfaces to Continuous Monitoring System
  • Audit Division checks on web screen
  • Listening to and confirming the opinions of the identified issues

Such monitoring and check shall be conducted by the dedicated person properly qualified and trained to perform the function.

Relationship between Continuous Monitoring System and Internal Control System

The relationship between the Internal Control System for the purpose of securing the reliability of financial information and the Continuous Monitoring System for monitoring fraud prevention and repetitive errors

Cyber Newspaper

Transparent and fair, ethical management

  • User guide
  • Report
  • Check Status of Report

  • User guide

    Poongsan Group's Cyber Reporting System accepts reports on ethics violations by the company and its employees. Your proactive reporting will serve as a foundation for fostering a more transparent and fair organizational culture within our company.

    What to report:

    Misconduct, corruption, bribery, and acceptance of improper gifts by employees whilst in the course of their duties

    Illegal or improper use of company assets

    Actions that damage the company's image and reputation

    Actions that harm organizational culture, such as unfair directives and harassment

    Any other actions that violate ethical standards and norms

    Reporting Method
    and Procedure

    Online Submission: Submit your report through Poongsan Group's Cyber Reporting System on our official website.

    Email: Send your report to the designated ethics compliance email address.

    Hotline: Call the dedicated ethics hotline to report violations.

    Mail: Send a detailed report to our corporate ethics office via mail.

    Procedure :
    (1) Receipt of Report: Upon receiving the report, an acknowledgment of receipt will be sent to the reporter.
    (2) Preliminary Review: The report will undergo a preliminary review to determine the validity and scope of the issue.
    (3) Investigation: A thorough investigation will be conducted by the ethics compliance team.
    (4) Resolution: Based on the findings, appropriate actions will be taken, which may include disciplinary measures or policy changes.
    (5) Feedback: The reporter will be informed of the investigation outcome, ensuring confidentiality and the protection of their identity throughout the process.

    Email sdkim@poongsan.co.kr

    Postal address Audit Div. Poongsan Holdings, 16th Floor, Poongsan Building, 23 Chungjeong-ro, Seodaemun-gu, Seoul 03737

    Telephone +82-2-3406-5303

    Whistleblower protection

    Confidentiality: The identity of the whistleblower and the content of the report will be kept confidential.

    Protection from Retaliation: Whistleblowers will not face any disadvantages or retaliation as a result of their report.

    Consideration for Self-Reporting: If the whistleblower reports corruption or misconduct related to themselves, leniency may be considered.

    Data Security: All information provided to the Cyber Reporting System is securely managed on a separate server to protect the whistleblower’s identity, with only minimal information (name, email, phone number) required.

    Data Handling: All personal information is handled and disposed of in accordance with the Personal Information Protection Act.

    ※ Please note: while submissions can be made in writing or via telephone, we strongly encourage using the website

  • Report

    Subject of report
    Place of business and relevant manager
    Contents of Report
    Subject *
    Type of report *
    Contents of Report *
    Attached file
    Identity
    I wish to report anonymously
    Name *
    E-mail *
    Tel *
    Create password *

    * must contain eight or more characters, including letters, numbers, and special characters

    Confirm password *

    Collection of personal information and Terms of Use

    Purpose of collection/scope/purpose of use of personal information

    1. We collect the minimum amount of information required to carry out the duties of the cyber reporting system.
    We require the ability to collect and use your personal information in order to facilitate consultation and reply service

    2. Items of personal information to be collected

    Thank You.
    Your report has been successfully submitted.

    Report Number:

    Password Confirmation:


    Please enter the report number and password to check the response to your report.

    If you lose your report number or password,
    please submit a new report or contact us at cyber@poongsan.co.kr

  • Check Status of Report

    Report Number
    Password

    A report number is assigned upon submission of a report.
    If you lose your report number or password,
    please submit a new report or contact us at cyber@poongsan.co.kr

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