Compliance Management
BEST TECHNOLOGY,
BETTER FUTURE
- Gorvernance
- Compliance Management
Strategy
LX Semicon has formulated internal regulations such as the LX Code of Ethics and Practice Guidelines as well as Fair Trade Compliance Guidelines. Based on them, we have implemented a compliance risk management system since 2019. We perform annual evaluations of compliance control standards and effectiveness while examining compliance risks on a regular basis to continuously enhance compliance management.
All business transactions are based on the principles of fair competition, with equal opportunity guaranteed to all entities. We build trust and cooperative relationships through fair and transparent transactions. Such relationshipsarebuiltbasedonlong-termmutualgrowth.
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❶ Equal Opportunities
① We offer equal opportunities to all qualified companies seeking to become our business partners. ② We register and select all applicants in a systematic manner, following a fair and objective evaluation process. -
❷ Fair Transaction Process
① We conduct all business transactions under equal circumstances. The terms and procedures of the transaction are thoroughly discussed between the parties involved ② We never engage in any form of unfair transaction taking advantage of any superior position. ③ We exchange transaction information through appropriate procedures in a timely manner. Transaction results are evaluated on a regular basis and mutual cooperation measures are taken. -
❸ Pursuing Mutual Growth
① We support the long-term growth of our dealers and vendors by enhancing their competitiveness through technological and managerial assistance. We share the profits derived from business innovations. ② We pursue mutual efforts and cooperate with our business partners in promoting a healthy business environment and maintaining fair business processes.
In 2018, we created the ‘Fair Trade Compliance Guidelines’ to follow fair trade laws and regulations, updating them on a regular basis to ensure compliance. Our goal is to prevent any harm to the company and our employees resulting from violations of laws involving fair trade. We aim to establish a trustworthy relationship with our clients and partner companies by promoting fair competition and transactions in line with relevant business guidelines.
We pursue fair and transparent business performance based on legal compliance. As part of our efforts, we have formulated compliance control standards for responsible compliance management and designated a compliance officer in order to verify if laws, regulations, internal policies, and internal regulations are well observed by employees. Furthermore, when an agenda that necessitates the approval of the BOD by law, such as a large-scale insider trade, arises, we conduct a preliminary review led by the Management Committee and the ESG Committee before final approval is obtained by the BOD, aiming to reinforce internal transaction management.
Assessment
We periodically identify compliance risks in advance, conduct self-evaluation in each department, assess the risk level of the risk, and derive major risk management areas related to the company’s business based on this. Moreover, we verify if the compliance control standards are well followed every year and evaluate the effectiveness of the compliance control system, followed by reporting the results to the BOD.
We safeguard the company and our employees against various legal risks through compliance risk management activities, striving to embed a culture of legal compliance. We have provided company-wide compliance training targeting all employees as part of our training and prevention activities as well as compliance risk monitoring. Going forward, we plan to support continuous improvement of employees’ awareness by offering more face-to-face education and content.
| Category | Unit | Participants | Note | |
|---|---|---|---|---|
| Compliance training in 2022 | Target employees | Persons | 1,673 | Online training |
| Employees completed the training | 1,525 | |||
Weendeavortocomplywithfairtradelawsandpreventunfairtradebysendingalettertoallour employees in the name of the CEO, which expresses our commitment to fair trade and compliance. It also contains the requests and information on compliance items to encourage employee participation. Furthermore, the trade newsletter, which includes the objective of the fair trade system and trends in fair trade regulations, is monthly distributed to share cases of violating related laws and regulations, aiming to raise the awareness of compliance.