01. purpose

The purpose of this practice is to establish reasonable and transparent trading practices by setting forth the contents that the Company (hereinafter referred to as “the Company”) and the entity (hereinafter referred to as “the entity”) entering into business transactions with the Company must mutually comply with when entering into contracts.

02. Organize your actions

1. • Contract execution infrastructure
   • What to do when signing contracts
   • Do’s and don’ts of contracting

03. Contract Execution Infrastructure

3.1 Vendor Selection Methodology

A company newly registered in our supplier pool must be selected as a developer by item when developing new parts after signing a basic transaction contract to begin business with us, and there are three ways to select a company.

04. Do’s and Don’ts when signing a contract

4.1 Intent to comply when entering into a contract

1) Pre-issuance in writing

• • In principle, A and E shall conclude a contract for home appliances, but at least a contract bearing the signature of the parties shall be concluded before commencing work for delivery.
  • In the case of frequent deliveries, the basic contract shall be concluded first, and the order (including electronic order) issued by the supplier for each delivery shall be divided into individual contracts.

2) Determine the unit price using a reasonable method of calculation

• • The unit price of parts shall be determined by consultation according to a reasonable calculation method that considers quantity/quality/specification/delivery/payment method/material price/labor cost or current trends, and adds appropriate management costs and profit.
  • The unit price set forth in Paragraph 1 above shall include packaging, freight, unloading, insurance, and any other expenses to the place of delivery mutually agreed upon, unless otherwise agreed upon.
  • The unit price set forth in Paragraph 1 may not be arbitrarily changed by either party during the term of this Agreement except by written agreement of the parties.
  • If the determination of the unit price is delayed due to special reasons, a provisional unit price set by negotiation shall be applied, but in this case, the difference between the provisional unit price and the finalized unit price shall be settled retroactively when the finalized unit price is determined.
  • The company regularly investigates the input rate that is the basis for cost calculation and proposes a wage rate that meets the reality, but sets the wage rate according to the characteristics of each company such as working conditions, supplier size, and technology level in consideration of labor costs in the same industry.

3) Lead time and delivery

• • The delivery date refers to the deadline for delivery of the ordered parts to the place specified by the supplier under an individual contract (purchase order) and is mutually agreed upon for each individual contract.
  • may be changed in advance in consultation with the customer if the customer wishes to deliver the consigned order items before the delivery date.
  • If it determines that it is not possible to deliver the Ordered Items by the due date, it shall notify K in writing in advance of the cause and the actual delivery date, and may deliver the Ordered Items in accordance with the extended delivery date only with K’s written approval.

4) Objective inspection criteria

• • For the inspection of the Deliverables, K shall consult with E to establish objective and fair inspection standards and methods.
  • When the goods are delivered, a receipt shall be issued immediately, even before inspection, and the inspection shall be carried out promptly in accordance with the predetermined inspection regulations and procedures.
  • Except for good cause shown, the Company shall notify the Supplier of the results of the inspection within ten (10) days of receipt of the Deliverables from the Supplier.
  • The goods shall be managed with the care of a good manager before or during inspection.

5) Get paid

• • The due date for payment of the Deliverables shall be in accordance with our payment terms.
  • The method of payment for deliverables shall be in accordance with our Payment Terms.

6) Terminate the contract

• • The reason for termination/termination of the contract shall be determined by agreement between the parties and distinguish between “possible without the best” and “necessary for the best”, but if the reason for termination/termination occurs, it shall be notified in writing without delay.
  • The following cases are possible without a best

1. 1. 1. The counterparty has been suspended by a financial institution, or has been revoked or suspended by a regulatory authority.
      2. If the other party is deemed to be unable to fulfill the contract due to a significant business reason such as insolvency, enforcement by a third party, bankruptcy, initiation of a lawsuit, or filing of a company reorganization procedure.
      3. If the other party decides to dissolve, transfer its business, or merge with another company, or if the other party recognizes that it is difficult to fulfill the contents of the basic contract or individual contract due to a disaster or other reasons.

• • In the following cases, the other party shall be given a period of one month or more to fulfill the contract, and may cancel/terminate the contract if it is not fulfilled within the period.

1. 1. 1. If the other party has breached a material term of this Agreement or an individual agreement, or if the recipient has delayed without justifiable cause the fulfillment of matters necessary for the production of the ordered parts, which has resulted in disruption of the supplier’s work.
      2. If the supplier refuses to produce the ordered parts without a valid reason or delays the start of production, and it is recognized that it is difficult to deliver within the delivery date.
      3. If there is a substantial reason to believe that the supplier’s technical production and quality control capabilities are insufficient to fulfill the contract in a smooth manner.
      4. commits bribery, embezzlement, embezzlement, embezzlement, accounting irregularities, or similar irregularities in connection with the production and delivery of this order item, and causes problems with non-payment of subcontracted deliveries.

4.2 What not to do when entering into a contract

1) Unfair subcontractor payment practices

• • Determining payment for delivery by reducing unit prices by a uniform percentage without justification.
  • Unilaterally allocating a certain amount of money under any pretext, such as a request for cooperation, and then subtracting that amount to determine the delivery price.
  • Discriminatory treatment of Eun compared to other subcontractors to determine the delivery price without justifiable reasons
  • Deceiving the supplier by causing the supplier to be misled about the order quantity or transaction terms, or by presenting a quote from another business or a false quote, and using it to determine the delivery price
  • The act of a vendor unilaterally determining the price of delivery based on a lower unit price.
  • When awarding a subcontract by competitive bidding, determining payment for delivery at an amount lower than the lowest bid without justification.
  • The sum of material costs, direct labor costs, and expenses in A’s contract statement without justifiable reasons when concluding an individual contract as a numerical contract (means the total amount of direct construction cost items). However, among the expenses, it excludes non-materials agreed to be borne by A and E and legal expenses to be borne by A). Causing the price to be determined at a lower amount
  • Determining delivery payments unfavorably to A in a continuing transaction contract for reasons that cannot be attributed to A, such as A’s operating deficit or lower sales price.

2) Unfair interference with management

• • to obtain the direction or approval of the President in the appointment or removal of this employee.
  • Restricting the manufacture, volume, or size of a business without good cause
  • from doing business with a competing business entity of the Company or any of the Company’s affiliates.
  • Manipulating the volume of subcontracting transactions with the intent to interfere with the management of a business.
  • The act of entering Eun’s business premises against Eun’s will to inspect the manufacturing process and labor force.
  • Restrict the export of this technical material abroad without good cause, or restrict transactions on the basis of export of technical material
  • Binding a person to do business with this section or any business designated by this section without good cause
  • Demanding management information notified by the Fair Trade Commission, such as cost data, from a person without justifiable reasons

3) Solicitation of proprietary trading behavior

Preventing a business partner from dealing with you and your designees (except when you agree to exclusive dealings with a business partner on the grounds of jointly developing technology with the business partner).

4) Unfair and Deceptive Trade Practices

• • Establishing an arrangement that puts the subcontractor on the hook for costs incurred by requesting something that is not in the contract.
  • Establishing a contract that burdens a subcontractor with costs related to civil complaints, industrial accidents, etc. that should be borne by the original business operator
  • Establishing an arrangement that puts the contractor on the hook for costs incurred by requesting something that was not in the bid.

05. Faithful performance of contracts in accordance with contracts and applicable laws

5.1 Contractual Performance

1) Compliance with applicable laws, including the Civil Code

• • Comply with relevant laws such as the principle of good faith, subcontracting law, and fair trade law, but resolve disputes through written materials

5.2 Prohibitions on Contract Portability

1) Wrongful Refusal to Accept

• • Arbitrarily cancel or change a consignment
  • Refusing to accept or delaying delivery of an order item.

2) Unfair return behavior

• • Returns due to canceled orders from counterparties or changes in economic conditions.
  • Unclear testing criteria and methods, resulting in unjustifiable fails and returns.
  • Returning raw materials even though they have been determined to be nonconforming due to poor quality.
  • Returns that are late due to raw material supply delays, despite the fact that they are late.

3) Unjustified chargebacks

• • The act of reducing the delivery price for unreasonable reasons, such as a request for cooperation after consignment, cancellation of an order from a counterparty, or changes in economic conditions, without specifying the conditions for reducing the delivery price at the time of consignment.
  • If an agreement on reducing the unit price is established with the company, the delivery price is reduced by unilaterally applying the agreement retroactively to the part entrusted for manufacturing before the agreement is established.
  • Excessively reducing the price of deliverables to pay for them in cash or before they are due.
  • The act of unilaterally reducing the delivery price due to a minor error of the supplier that does not materially affect the occurrence of damage to the buyer.
  • Deducting more than the reasonable purchase price or reasonable usage fee from the delivery price when the consignee purchases items from you or uses your equipment.
  • Reducing the price of a delivery because the price of goods or materials at the time of payment has decreased from the time of delivery.
  • Unreasonably reducing delivery payments for unreasonable reasons, such as operating losses.
  • The act of burdening a person with employment insurance premiums, occupational safety and health management expenses, and other expenses that the person is required to pay under the Act on the Collection of Premiums for Employment Insurance and Workers’ Compensation Insurance and the Occupational Safety and Health Act.

4) Unjustified solicitation of economic benefits

• • A shall not, without just cause, cause E to provide money, goods, services, or other economic benefits to himself or a third party.

5) Retaliatory behavior

• • Limiting the number of cycles, suspending transactions, or otherwise penalizing a supplier for reporting to the Fair Trade Commission a violation of the Subcontracting Act.

6) No coercion to provide knowledge base

• • A shall not require B to provide technical data (data on manufacturing, repair, and construction methods that are kept secret by reasonable efforts, or other data that is useful in its business activities and has independent economic value) of A to itself or to any third party. However, if K demonstrates good cause, it may do so to the minimum extent necessary to fulfill the purpose. If Eun suffers damages due to the request to provide technical data, A is liable to compensate Eun for such damages. However, this shall not apply if A proves that there was no intent or negligence on its part.
  • You may not misappropriate technical materials obtained from a vendor for your own or a third party’s use.

01. purpose

The purpose of this practice is to contribute to the establishment of a fair subcontracting transaction order by enhancing transparency and fairness in the process of subcontractor registration and operation, and to provide general information on our subcontractor registration and operation.

02. Organize your actions

• • About new partner enrollments
  • About registering changes to partners
  • About suspending transactions with partners

03. Definition of Terms

1) Scope of “Subcontractor” in the Guidelines

• • Supplier: A company registered under the Supplier Evaluation and Approval Guidelines to supply materials that have a significant impact on product quality, delivery time, and cost to the Company, divided into raw and subsidiary materials and light processing companies.

2) “Registration as a supplier company” means that a company that supplies materials to the Company completes the evaluation and procedures prescribed by the Company and is determined to be eligible for transactions.

04. Disclosure of Supplier Registration Evaluation Criteria, Procedures, and Results

We’ll notify you individually when we’ve decided to enroll you as a partner.

05. Provide Equal Opportunity to Open Trades

Businesses selected and registered as suppliers shall not be restricted or discriminated against without justifiable reasons, such as the opportunity to participate in bidding to initiate transactions.

06. Procedure for new registration of partner companies

6.1 Registration

The company selected as a target supplier for new supplier development at the request of the relevant team in the company or by the parts purchasing team’s own judgment shall submit the following documents.

• • Supplier Status Sheet (complete and submit after receiving the form from Purchasing)

6.2 Initial vendor assessment

1) Evaluation Criteria

① Out of 500 points

• • General management (150 points), Technology development ability (100 points), Production management (100 points), Quality management (100 points), Quality system (50 points)

6.3 Synthesizing evaluation results

The procurement team synthesizes the evaluation results and prepares an evaluation report.
As a general rule, our tradeability score should be at least 1 (370 points or more).
However, for Level 2 (300+), we will reevaluate your score.

6.4 Listings and approvals

If the head of the parts purchasing team determines that the company is eligible for transaction as a result of the evaluation, the supplier cooperation team shall notify the supplier cooperation team, and the supplier cooperation team shall prepare the relevant documents as follows to proceed with the new registration, and the company requesting registration shall cooperate to prepare the relevant documents.

When you register a primary business

• • Vendor Assessment Report

6.5 Enrollment execution

The parts procurement team shall follow the following procedures for registration.

• • The eco-friendly parts supply agreement shall be executed in two copies by the Company and the new registrant, sealed with the seals of both companies, and kept in one copy each by the Company and the new registrant.
  • The Transparency Commitment shall be executed in two (2) copies, notarized and retained by the Company and the New Registrant.
  • Register your business and give it a trade code.
  • The Company and the New Registrant shall execute two copies of the Transaction Agreement, seal it with the seals of the representatives of both parties, and keep one copy.

07. Register a change of trading partner when a change occurs

1) The Company’s business partners shall notify the Company’s business cooperation team of any changes in the registration contents such as change of name, change of representative, relocation of location, etc.

2) However, in case of change of representative, except for change of representative due to inheritance, change of representative due to simple delegation of representative authority, etc. and change of representative due to sale of shares, change of representative due to transfer to a third party, the change registration shall be requested to the relevant business cooperation team including the following items to determine whether to continue transaction with the Company.

• • Who the new representative is and the reason for the ownership transfer
  • Corporate Investors

In this case, the company evaluation will take over the score of the previous company’s periodic evaluation (initial evaluation), and the basic transaction agreement and all documents must be signed and submitted again.

08. Cancellation/Termination of the Registrar’s Agreement

1) The reason for termination/termination of the contract shall be determined by agreement between the parties and distinguish between “possible without the best” and “necessary with the best”, but if the reason for termination/termination occurs, it shall be notified in writing without delay.

2) Here’s what’s possible without the best

• • The counterparty has been suspended by a financial institution, or has been revoked or suspended by a regulatory authority.
  • If the other party is deemed to be unable to fulfill the contract due to a significant business reason, such as insolvency, enforcement by a third party, bankruptcy, initiation of a lawsuit, or filing of a company reorganization procedure.
  • If the other party decides to dissolve, transfer its business, or merge with another company, or if the other party recognizes that it is difficult to fulfill the contents of the basic contract or individual contract due to a disaster or other reasons.

3) In the following cases, maximum performance is required, and in this case, the other party shall be given a period of one month or more to perform the maximum performance, and may cancel/terminate the contract if it is not performed within the period.

• • If the other party has breached a material term of this Agreement or an individual agreement, or if the recipient has delayed without justifiable cause the fulfillment of matters necessary for the production of the ordered parts, which has resulted in disruption of the supplier’s work.
  • If the supplier refuses to produce the ordered parts without a valid reason or delays the start of production, and it is recognized that it is difficult to deliver within the delivery date.
  • If there is a substantial reason to believe that the supplier’s technical production and quality control capabilities are insufficient to fulfill the contract in a smooth manner.
  • commits bribery, embezzlement, embezzlement, embezzlement, accounting irregularities, or similar irregularities in connection with the production and delivery of this order item, and causes problems with non-payment of subcontracted deliveries.

01. purpose

This practice aims to contribute to the establishment of a fair subcontracting transaction order and prevent violations of the Subcontracting Act by stipulating a set of business procedures for the operation of an internal review committee to deliberate on the fairness and legality of subcontracting transactions between the Company and its suppliers.

02. Organize your actions

1) Information on the composition of the Internal Review Committee
2) Information on the deliberation agenda of the Internal Review Committee
3) Information on the operation of the Internal Review Committee

03. Organization of the Internal Review Board

1) The Internal Review Committee shall be composed of the head of Purchasing, the head of Parts Purchasing, and the head of General Purchasing from the Purchasing General Office, and the head of Business Management, the head of Cost Planning, the head of Supplier Cooperation, and the head of Legal Affairs from the Business Management Office.
2) Among the members of the Internal Review Committee, the head of Purchasing and the head of General Purchasing shall be the chairman and secretary of the Internal Review Committee, respectively.

04. Agenda of the Internal Review Board

The agenda of the Internal Review Committee shall be as follows.

1) Reviewing the appropriateness of partner company registration, cancellation criteria and procedures, etc.

• • Rules for revising contracts, rules for revising subcontract guidelines, etc.

2) New registration of partner companies – review of the appropriateness of registration criteria and procedures

3) Cancellation of partner transactions – Review the appropriateness of cancellation criteria and procedures

4) Reconsider the matter if the supplier appeals our decision.

5) Matters related to post-verification of subcontracting legality

• • Reviewing and correcting unfairness when reporting unfair behavior between business partners
  • After the contract is terminated, whether the payment is made on time
  • Whether you’re not unfairly shifting liability for defects

6) Sanctions for employees who violate relevant laws and regulations such as the Subcontracting Act

7) Other subcontracting matters deemed to require review by the Internal Review Committee

05. Operation of the Internal Review Board

1) The Internal Review Committee is regularly held on the third (fourth) Tuesday of the first month of each quarter (the date can be adjusted if necessary), and may be held from time to time at the initiative of the chairperson when issues arise.

2) The internal review committee shall be organized and conducted by the secretary.

3) The secretary shall notify each member of the deliberative committee of the time and place of the deliberative committee at least 7 days before the deliberative committee is held.

4) Each review member shall notify the secretary of each review agenda at least three days before the review committee meeting.

5) The secretary shall compile and report the deliberation agenda to the chairperson no later than 2 days before the deliberation committee meeting and notify each deliberation committee member.

6) Implement an internal review board

• • The moderators will deliberate on whether to vote in favor (appropriate) or against (inappropriate) of the proposed deliberation.
  • Decisions of the Internal Review Board shall be passed or rejected by unanimous vote of all members.
  • If there is a dissenting opinion during deliberation, the majority vote shall decide the passage or rejection.
  • If there are still dissenting opinions upon reconsideration, the majority vote shall decide the passage or rejection.

7) The secretary shall synthesize the deliberation results and notify each deliberation member after internal reporting.

8) Each deliberator shall take the necessary action in the relevant area for the passed or rejected case.

06. Documentation

Documents related to the deliberation results and actions of the internal review committee shall be kept for at least three years from the date of completion of the deliberation.

01. purpose

The purpose of this practice is to promote good documentation practices and establish a fair subcontracting order by setting forth specific requirements for the issuance and retention of documents in subcontracting agreements and transactions between the Company (hereinafter referred to as “the Company”) and the Company’s suppliers (hereinafter referred to as “the suppliers”).

02. Organize your actions

1) Issuance of documents in subcontracting transactions
2) Retention of issued documents

03. Subcontracting transactions in writing

1) Subcontracting agreements

When A consigns manufacturing, etc. to E, A shall issue a subcontract agreement in writing after agreeing with E to determine the main contents of the contract, such as the content, quantity, and unit price of the consigned object, etc.
If the original contract contents are changed due to design changes, etc., the Company shall prepare and issue an additional or change document unless there are special circumstances.

(1) Written documentation

• • Date of consignment; content, quantity, and unit price of consigned objects; time and place of delivery, delivery, or provision of objects; method and time of inspection of objects; method and time of payment of subcontractors; and due date of payment.
  • If the prime contractor provides raw materials, etc. required for the manufacture of the object, etc. to the subcontractor, the name, quantity, date of delivery, method of payment, and due date of payment of the consideration
  • Requirements, methods and procedures for adjusting subcontract payments due to changes in the price of raw materials, etc. after entrusting the manufacture of objects, etc.

When the document is issued

• • A and E shall issue a written contract without delay after agreeing on the main contents of the contract.
  • Even if there are circumstances that make it difficult to issue a written contract to the contractor without delay, unless there are special reasons, the contract shall be executed in writing at least before starting work for the delivery of the goods.

③ Written issuance method

• • A is a contract signed or sealed by the company or its representative.
  • A contract is not in writing if it is not signed or sealed by the subcontracting party.
  • In the case of frequent deliveries, the basic contract shall be concluded first, and the order (including electronic order) issued by the supplier for each delivery shall be converted into an individual contract.

④ Exceptions

• • For matters that are difficult to determine at the time of entrustment, the bank may issue a written statement stating such matters only if there is a legitimate reason.
  • However, even in this case, the reason why the matter has not been determined and the expected date by which the matter will be determined shall be specified, and when the matter is determined, a written statement stating the matter shall be issued without delay.
  • If there are frequent transactions in the reality of subcontracting transactions and there is no major problem in establishing and maintaining the contract in light of the characteristics of the industry or reality, the obligation to issue a written document may be executed differently from the written contents and the time of issuance. However, this case refers to the following situations.

    → When the basic contract is issued and the order is objectively clear that the order has been placed by facsimile transmission (FAX) or other electrical or electronic means
    → When the contract is missing some of the statutory information, but the missing information can be identified by the quantity sheet, work order, etc. provided at the time of ordering each case
    → When the basic contract is sent and the offer sheets submitted by the subcontractor to the prime contractor while manufacturing goods for export can be replaced with individual contracts.

2) Estimating subcontracts

(①) If A does not issue a subcontracting agreement stating the matters specified in Article 3, Paragraph 2 of the Subcontracting Act at the time of contracting (even if a written document is issued without stating some matters pursuant to Paragraph 3), the subcontractor may request confirmation by notifying the subcontractor in writing stating the details of the entrusted work, the subcontract price, the date of entrustment, the business name and address of A and E, and other details entrusted by the original business. In this case, Eun shall use the “Request for Confirmation of Consignment Contents” in the “Subcontracting Transaction Fairness Guidelines” as a standard form.
Within 15 days after receiving the written request for confirmation of the contents of the consignment from A, A shall reply to A in writing to confirm or deny the contents. In this case, A shall use the “Standard Form of Written Response to Request for Confirmation of Consignment Contents”, but may use a similar form.
③ If A does not send a reply within 15 days, it shall be presumed that the consignment has been consigned as notified by E, unless it is impossible to reply due to natural disasters or other circumstances.
④ The written notice of the request for confirmation of the consignment contents and the written reply to the request for confirmation of the consignment contents shall be sent to the addresses above and below, but shall be sent by certified mail or other method (excluding e-mail) that can objectively confirm the contents and receipt of the notice and reply.

3) Subcontractor payment reduction in writing

If A does not pay E the subcontract price stipulated in the consignment of manufacturing, etc. as it is, but intends to reduce it from the amount, a reduction letter shall be issued to E. If the basic contract is concluded first due to frequent deliveries and the order (including electronic order) issued by A is replaced by an individual contract for each delivery, the time when the order is notified to E is considered the time of consignment.

(1) Written contents
Reasons and criteria for reduction, quantities of objects subject to reduction, amount of reduction, method of reduction such as deduction, and other justification for reduction
(2) Time of issuance
When a company wishes to reduce the price, it shall issue a written reduction to the customer in advance before making the reduction.

③ Written Issuance Method

• • The instrument shall be in writing signed or sealed by the corporation or its representative.
  • If the document does not bear the signature or seal of the subcontracting party, it is not in writing.
  • A written document may be issued by providing an electronic record, such as an email or web portal.

④ Exceptions
may issue a written statement stating the circumstances that are difficult to determine at the time of consignment only if there is a legitimate reason. However, even in this case, the reason why the matter has not been determined and the expected date by which the matter will be determined shall be specified, and when the matter is determined, a written statement stating the matter shall be issued without delay.

4) Written documentation request

A shall issue a demand letter to E if good cause exists to require E to provide technical data.

(1) Written description
The name and scope of the technical data, the purpose of the request, matters related to confidentiality*, right attribution*, the consideration for the technical data, the date of request, the date of delivery, the method of delivery, the period of use, the date of return (disposal), the method of return (disposal), and other matters that can prove that the request to provide the technical data is justified.

• • Confidentiality: Indicate which parts of the technical data are to be kept confidential and attach a confidentiality agreement, if any.
  • Right Attribution Relationship: The current right holder of the technical data requested by the supplier, whether a technology transfer agreement has been concluded, whether the technology requested is a jointly developed technology, mutual agreement on the right attribution relationship after the technical data is provided, etc.

② Time of issuance of written document
If the Company requests the provision of technical data, in principle, the name and scope of the technical data, the purpose of the request, the date of the request, the date of delivery, the method of delivery, matters related to confidentiality, the relationship of right attribution, and the consideration for the technical data shall be determined in advance in consultation with the Company and issued in writing to the Company without delay.

③ Written Issuance Method

• • a) Issue a technical data request form signed by the company or its representative (including a certified electronic signature pursuant to Article 2, Paragraph 3 of the Electronic Signature Act) or with a handwritten seal.
  • If A requests technical data from E in writing, preferably use the standard written form for requesting technical data (Form 1) of the “Guideline for Evaluation of Technical Data Provision and Misappropriation Behavior” (Korea Fair Trade Commission Precedent No. 115).
  • In addition to the standard form above, AEK may provide technical data through a separate contract document such as a special agreement. However, the separate contract document must include the items in 2, b. above.
  • A written document may be issued by providing an electronic record, such as an email or web portal.

④ Exceptions

In the event that frequent requests for technical data are inevitable due to the nature of the industry or the reality of the transaction, the name and scope of the technical data, the purpose of the request, confidentiality, attribution of rights, consideration, etc. shall be stated in a written document signed or sealed by the Company, and additional details such as the date of request, delivery date, delivery method, etc. may be specified using an individual request form.

5) Issue a certificate of receipt for the destination, etc.

(1) Written documentation

A shall issue a certificate of receipt for the object, etc. to Eun when A delivers, delivers, or provides the object, etc. to Eun, unless there is reason to attribute the object to Eun’s responsibility.

When the document is issued

A shall issue a certificate of receipt to E immediately, even before inspection of the object, etc.

③ Written Issuance Method

Follow sections 3) through 3) through 3).

6) Issuance of inspection results such as destination

(1) After receiving the object, etc. from the subcontractor, A shall conduct the necessary inspection to confirm the completion of the object, etc. and the scope of the payment obligation and notify Eun in writing of the result.

In principle, the contractor shall issue a written inspection result within 10 days from the date of receipt of the object from the contractor.
In this case, the date of receipt of the object includes the date of notification of the ready-made part in the case of manufacturing consignment.

③ However, the Company may notify the inspection result for more than 10 days if there is a justifiable reason as follows.

• • If you have too many items to inspect within 10 days
  • If the inspection is lengthy and a determination of pass or fail is not possible until a significant period of time has elapsed.
  • If there is an explicit agreement between the prime contractor and the subcontractor to extend the inspection period, etc.

④ If A does not issue the inspection result in writing to E within 10 days from the date of receipt of the object, etc. without justifiable reason, the inspection shall be deemed to have passed.

⑤ Written issuance method

Follow sections 3) through 3) through 3).

7) Issue contract amount change statement due to design change, etc.

(1) If the contract amount is increased or decreased due to changes in economic conditions such as design changes or price fluctuations after entrusting manufacturing, etc.

② A shall issue the above notification to B within 15 days from the date of receiving the increase or decrease in the contract amount from the orderer.

③ Written issuance method

Follow sections 3) through 3) through 3).

04. Retention of issued documents

1) Both Gk and Ss preserve the written form of the following symbols

① Basic contract (including addendum and amendment)
② Subcontract confirmation form
③ Reduction form
④ Request to provide technical data
⑤ Certificate of receipt of goods
⑥ Notification of inspection results
⑦ Notification of contract change details
⑧ Documents stating the results of inspection of goods and the date of completion of inspection
⑨ Documents stating the date, amount, and means of payment of subcontract payments
⑩ Advance payment, discount on note, delay interest, Documents stating the date and amount of payment of advance payment, note discount, delay interest, and customs refund
⑪ Documents stating the contents of paid items, deductions, deduction amount, and reasons
⑫ Documents stating the amount and reason for adjustment of subcontract price (design change, atomic rebasing price, etc.)
⑬ Documents stating the contents of subcontractor unit price adjustment application and consultation, adjustment amount, and reason for adjustment
⑭ Bid specification, successful bidder’s decision, quotation, site description, design description, price decision agreement

2) A document to be preserved must be preserved in its original form at the time it is issued, delivered, or otherwise used for its intended purpose. The same applies to documents created, transmitted, received, or stored in electronic form by a computer or other device with information processing capabilities.

3) A and B shall preserve the above documents for three years (④ for seven years) from the date of delivery or delivery of the object entrusted to A and B. However, if the subcontract is terminated or the transaction is suspended, the period shall be calculated from the date of termination or suspension.