(1) Employees of LG Corp. and LG Corp.-invested companies(hereinafter referred to as subsidiaries; LG Corp. and subsidiaries are collectively referred to as "LG" or "the company"), in which LG exercises the management ownerships, shall acknowledge and observe the Code of Ethics, the Code of Ethics Guidelines for Practice, and the Explanation of the Code of Ethics Guidelines for Practice (hereinafter collectively referred to as "the Code of Ethics").
(2) Regarding overseas subsidiaries in which LG exercises the management ownerships, local laws and regulations shall be taken into consideration when applying the Code of Ethics.
(3) Encourage participation of independent third parties (e.g., investment companies, business partners, sales agents, consultants, attorneys, and agents) that have business dealing with LG by explaining the relevant material.
2. Operational Organization
(1) LG establishes an Ethics Committee within the company as the top decision-making body with respect to the practice of the code of ethics. The chief executive officer shall chair the committee, and the chief financial officer, chief human resources officer, chief legal officer, and chief audit department officer shall serve as committee members.
(2) LG establishes the "Ethics Bureau" to execute general affairs regarding the observance of the code of ethics. A similar function will be placed under the Audit department.
(3) The Ethics Bureau establishes and operates the general control system necessary for voluntary compliance with the LG Code of Ethics.
3. Duties of Employees
(1) All company employees shall learn their roles, acknowledge and observe the LG Code of Ethics and corresponding regulations, and practice Jeong-Do Management when executing business duties.
(2) All company employees shall promptly report to the Ethics Bureau in accordance with the process specified when they or others violate the Code of Ethics.
(3) All employees shall acknowledge that ignorance of the LG Code of Ethics and the corresponding regulations does not exempt them from their responsibilities. Employees shall contact his/her supervisor or the Ethics Bureau for any questions or concerns regarding violations.
(4) All employees shall fill out the Jeong-Do Management Pledge of Practice and submit it to the company on a regular basis.
- Acquire general information on competitors through fair methods that will not be subjected to social criticism.
- Use acquired information on competitors in a legitimate manner.
(2) Acquisition of Competitive Advantages in a Fair Way
- Do not plagiarize or infringe on competitors' tangible/intangible assets.
- Obtain competitive advantage through fair methods, without degrading competitors status or abusing their weaknesses.
(3) Prohibition of Unfair Collusion
- Do not inflict damage to other businesses and customers by unfairly colluding with competitors to set sales prices, sales conditions, or market allocation.
- Do not form or participate in unfair alliances or collusion organization within the industry.
2. Complying with Laws and Regulations
(1) Compete through fair methods by respecting the regulations and business customs and practices in the related regions.
(2) Complying with the Convention on Combating Bribery in International Business Transactions
① Understand and observe the Convention on Combating Bribery in International Business Transactions, which prohibits promises or bribes or
any act of expressing intention to give either directly or indirectly to foreign officials related business affairs for the purpose of achieving unlawful profit
in international commercial transactions.
② All employees shall complete and submit the "Pledge of Prohibiting Bribery in Overseas Transactions."
(1) Establish and use general regulations and systems for the Business Partner Selection Process to select and register business partners based on fair evaluation criteria.
(2) The Business Partner Selection Process shall include detailed evaluation items and methods; the selection shall take into consideration characteristics of the business.
(3) Exclude any form of pressure or favors when selecting business partners.
2. Fair Transaction Process
(1) Exchange transaction-related information in a timely manner and take security measures to prevent damage from information disclosure to third parties.
(2) Mutually-agreed transaction terms and conditions shall not be modified without just reasons.
(3) Apply sound opinions that are proposed for improving and innovating business transactions.
(4) Acquire prior approval of business partners when using their technologies or other assets.
(5) Compensate business partners fairly for damages caused by error on our part.
(6) Do not engage in any of the following unfair transactions prohibited by laws and regulations related to fair transactions:
① Inappropriately forcing the purchase of other products or services, while providing the company’s products and services
② Selling products or services by force to business partners who have no intention of purchasing them
③ Unjustly colluding transactions between business partners and competitors or limiting transaction regions or business partners
④ Unjust colluding, such as an unilateral increase in sales price or an increase in the purchasing unit price without consulting business partners
⑤ Rejecting goods that are returned with just cause, or rejecting or delaying the receipt of ordered goods
⑥ Not fulfilling legal obligations for the payment conditions of bills
⑦ Discontinuing transactions with business partners or notably decreasing transactions without just cause
⑧ Setting unfair transaction conditions by discriminating against specific business partners
⑨ Interfering with business partner’s management activities, such as HR management, production, and transactions without just cause
⑩ Any other unfair acts prohibited by laws and regulations
3. Pursuing Mutual Growth
(1) Establish and implement standards for supporting and helping the development of business partners.
(2) Standards for helping the development of business partners must state the requirements of business partners and include detailed operational standards, such as technical support and managerial guidance.
(3) Any profit generated from technical support or managerial guidance shall be fairly shared.
(4) To ensure that business partners adopt Jeong-Do Management, Jeong-Do Management Pledge of Practice must be submitted and administered accordingly.
(1) The company shall establish an image of an ideal employee and create policies for human resource development.
(2) The company shall establish and fully promote a system of nurturing its employees to be voluntary and creative.
(3) The company shall assign tasks by taking into account the wishes, aptitudes, and capabilities of each employee and facilitate development of human resources through job execution.
(4) The company shall make efforts to create a working environment which helps employees improve their quality of life.
2. Fair Treatment
(1) The company shall not discriminate against its employees based on education, gender, or regional origins in offering opportunities to enhance their capabilities (training, transfer, promotion, job assignment, etc.); it shall offer such opportunities fairly.
(2) The company shall establish a criteria for evaluating employee talent, ability, and performance and conduct fair evaluations in order to motivate self-development and ensure fair recognition.
3. Promoting Creativity
(1) The company shall establish a system and corporate culture that encourages employees to freely express their suggestions, opinions, and complaints.
(2) The company shall take the measures necessary to ensure the occupational health and safety of its employees. In particular, the company shall take additional safety measures at work sites with hazardous elements.
(3) The company shall protect the privacy of its employees as long as the work environment and public morality are not adversely affected.
(4) The company shall not force its employees to participate in the activities of particular religions or political parties, and it shall respect the religious/political convictions of its employees.
In respect for societal moral values, the company shall not engage in activities that harm the national economy or causes disharmony. The company shall operate its business in line with national sentiments.
2. Protecting Shareholder Returns
(1) In respect for the shareholder's right to know, the company shall faithfully publish its financial information.
(2) The company shall not unilaterally interfere with the returns of minority shareholders for the purpose of protecting the returns of large shareholders.
3. Contributing to Social Development
(1) The company shall fairly provide employment opportunities and shall not discriminate based on education, gender, or regional origins.
(2) The company shall faithfully report and pay its taxes.
(3) The company shall strive to accommodate the reasonable requests of people from every strata of society and region.
4. Conservation of the Environment
(1) The company shall comply with all laws and regulations regarding environmental protection and seek to operate its business in a manner that respects the environment, such as preventing global warming, saving energy and protecting water resources.
(2) The company shall secure and operate antipollution facilities and operate personnel to prevent environmental pollution.