Compliance
Compliance
01. Compliance Management Meaning & Implementation
Compliance management refers to corporate policies that proactively manage legal risks through compliance education and monitoring based on compliance control standards, while enhancing employees’ legal awareness.
Seohan Group has made the following efforts to implement compliance management:
02. compliance control standards & officer system
Purpose of Introducing Compliance Control Standards and Compliance Officer System
To effectively establish compliance management, Korea’s Commercial Law introduced compliance control standards and a compliance officer system (Commercial Law Article 542-13).
Compliance control standards refer to the guidelines and procedures employees must follow when performing duties to ensure legal compliance.
A compliance officer is responsible for:
– Checking employee adherence to compliance standards (compliance control duties)
– Conducting education and training on compliance standards (compliance support duties)
Compliance control duties primarily involve inspections, while compliance support duties focus on education and consultation.
The Commercial Law requires listed companies with total assets exceeding 500 billion KRW to establish compliance standards and appoint compliance officers. While no Seohan Group company currently meets this threshold, we’ve voluntarily implemented this system due to manufacturing-related legal risks and growing internal/external needs for robust compliance management.
Compliance Control Standards Explanation
01. Purpose and Scope
These standards promote fair and transparent operations while enhancing corporate development and external trust.
They apply to all business activities of group companies, affiliates, agents, and all employees.
02. Overall Compliance Control Organization
- A. Board of Directors & CEO: The Board establishes compliance standards, while the CEO operates the compliance system. Both receive compliance reports from the compliance officer.
- B. Compliance Control Committee: Comprised of planning directors, legal team members, and the compliance officer, this committee coordinates compliance activities and may conduct direct inspections.
- C. Compliance Officer: Conducts education, inspections, and reports results to the CEO, Board, and Compliance Committee.
03. Internal Compliance Organization (Compliance Monitors)
Each CEO appoints a Chief Compliance Monitor, who then appoints department-level Compliance Monitors based on team recommendations. These monitors work with the compliance officer to conduct ongoing monitoring and hold regular compliance meetings.
04. Compliance Activities
A) Compliance Education
Conducted through: Regular training, New hire training, and Specialized training
Regular training occurs twice annually (June/December) for all employees, covering general compliance topics like work regulations and sexual harassment prevention.
New hire training educates recruits using real-case examples of workplace violations.
Specialized training addresses high-risk areas like industrial safety and subcontracting for relevant departments.
B) Compliance Inspections
Conducted through: Regular, Specific, and Routine inspections
Regular inspections occur twice yearly (April/October) for all group companies, with rotating focus areas to minimize operational disruption.
Specific inspections are unannounced audits triggered when the Committee or officer identifies potential issues.
Routine inspections occur before major business activities at departmental request.
C) Compliance Monitoring
This supplements formal controls through ongoing monitoring by affiliate companies. Compliance Monitors develop and implement monitoring plans, sharing results with the compliance officer to develop solutions.
05. Follow-up Measures
A) Rewards
The compliance officer may recommend awards/promotions for significant contributions to risk reduction.
B) Inspection Follow-up
Non-cooperation with inspections may result in disciplinary action requested by the Committee.
The compliance officer may formally request corrective actions and disciplinary measures for violations.
Department heads must implement corrective actions and notify the compliance officer.
C) Monitoring Follow-up
Compliance Monitors must report identified violations to their supervisor or directly to the compliance officer.
Supervisors must immediately notify the compliance officer of any reported violations.
Failure to report violations may result in equivalent disciplinary action against the non-reporting supervisor.
03. regular compliance inspections
Twice annually: April and October
04. Section 04 (Non-Discrimination Policy)
Seohan Innovation prohibits discrimination in all employment matters – including recruitment, hiring, promotion, training, compensation, and benefits – based on gender, race, ethnicity, nationality, religion, disability, age, family status, social class, or political views without reasonable justification, while fostering an organizational culture that respects employee diversity.
05. Section 5 (Compliance with Working Conditions)
Seohan Innovation adheres to legally mandated working hours in all jurisdictions where it operates, remunerating all employees with equitable compensation accompanied by itemized wage statements. The company additionally provides comprehensive professional development opportunities and maintains work environments conducive to optimal job performance.
06. Section 6 (Humane Treatment)
Seohan Innovation respects all employees’ privacy, rigorously protects personal information, and prohibits any form of mental or physical coercion, abuse, or unreasonable treatment.
07. Section 7 (Freedom of Association and Collective Bargaining)
Seohan Innovation complies with all applicable labor laws in jurisdictions covered by this Human Rights Charter and ensures open communication channels for all employees.
08. Section 08 (Ban on Compulsory and Underage Labor)
Seohan Innovation prohibits any form of forced labor through violence, threats, confinement, or retention of identity documents/visas that would compromise free will in employment. Furthermore, child labor is strictly prohibited, and appropriate measures are taken to ensure young workers’ educational opportunities are not limited by their employment.
09. Section 9 (Workplace Safety Assurance)
Seohan Innovation conducts regular inspections of facilities, equipment, and tools to ensure all employees work in safe environments, while implementing appropriate preventive measures against physical and psychological hazards and establishing post-incident support systems.
10. Section 10 (Community Rights Safeguards)
Seohan Innovation mandates all personnel to actively safeguard local communities’ fundamental rights – including occupational safety, public health protections, and housing security – throughout all operational activities.
11. Section 11 (Consumer Rights Safeguards)
Seohan Innovation mandates that all personnel: (1) Give paramount importance to customer safety and asset protection during product/service delivery, and (2) Employ state-of-the-art security measures for all personally identifiable information gathered through commercial activities.
12. Section 12 (Human Rights Governance Structure)
01. Human Rights Management Responsibilities
Final decision-making authority regarding human rights management at Seohan Innovation rests with the CEO and the HR Committee comprising key department decision-makers, which holds the following roles and responsibilities:
- Review and approval of Human Rights Charter amendments
- Recommendations for revising HR systems, employment rules, and audit standards
- Conducting human rights risk assessments and recommending corrective actions
- Investigating human rights violations and deliberating remedies
- Other matters deemed necessary for human rights protection
02. Operation of Dedicated Human Rights Department
Seohan Innovation establishes a dedicated Human Rights Department to systematically implement this Charter, with the following responsibilities:
- Preparing Human Rights Charter amendments
- Implementing and operating human rights management systems
- Managing human rights violation reporting channels
- Conducting internal training and reporting
13. Section 13 (Grievance Procedure Operation)
01. Reporting and Receiving Human Rights Violations
Seohan Innovation operates reporting channels for employees and external parties to report human rights violations or risks. When receiving reports, relevant departments shall discuss specific remedial measures tailored to each case’s circumstances.
02. Handling Human Rights Violation Reports
Seohan Innovation develops optimal remedies by considering court precedents, relevant regulations, past internal practices, and industry standards with legal team support. Cases significantly impacting victims’ rights or posing major reputational risks may be escalated to the HR Committee involving the CEO.
03. Reporting Channels
- Department: Management Team
- Email: seohan@seohan.com
- Landline: 043-530-4520
- Mobile: 010-3231-9292
04. Whistleblower Protection
All employees must maintain strict confidentiality regarding whistleblowers’ identities and case details. Seohan Innovation implements measures to prevent any retaliation against those reporting human rights violations or risks.
14. Section 14 (Human Rights Awareness Programs)
Seohan Innovation conducts human rights management training to enhance employee understanding and awareness, communicate internal human rights policies and implementation plans, prohibit discriminatory practices among staff, and encourage active reporting of any identified human rights violations or risks.
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