To effectively establish compliance management, Korea's Commercial Act introduced compliance guidelines and the compliance officer system. (Article 542-13 of the Commercial Act)
Compliance guidelines are standards and procedures of compliance control that the executives and employees must follow when performing their duties for compliance management.
A compliance officer is a person who checks whether or not an executive or employee is complying with the compliance guidelines (compliance control duties) and provides education and training on the compliance guidelines to executives and employees (compliance support duties).
Compliance control duties are mainly carried out through inspections, and compliance support duties are mainly carried out through education and consultation.
The Commercial Act established compliance guidelines for listed companies with more than 500 billion KRW in total assets and endowed them with the duty to hire compliance officers.
There is no company within the Seohan Group that meets the above requirements. But due to the nature of the manufacturing industry, where legal risks are scattered throughout, there is an urgent need for compliance management inside and outside of the group. Therefore, we have prepared compliance guidelines and appointed compliance officers for compliance management.

The purpose is to promote fair and transparent performance by executives and employees of Seohan Group, and to secure the corporation's development and external trust. The compliance guidelines apply to all business activities of the corporation and its executives and employees, including those of our subsidiaries, affiliates, and agents.

The CEO of each company appoints a Chief Compliance Supervisor, and the Chief Compliance Supervisor appoints compliance supervisors for each team according to the recommendation of the team leader. The Chief Compliance Supervisor and the compliance supervisors cooperate with compliance officers to monitor for regular compliance within each company, and holds meetings with compliance officers.

Regular compliance training is scheduled for twice a year (June and December) for all executives and employees, and teaches general information to prevent illegal acts in the workplace (office regulations, prevention of sex offenses, etc.). Compliance training during onboarding is provided for all new executives and employees, and is conducted based on the cases of legal violations within the corporation. Special compliance training is provided to relevant departments on matters of high legal risks that require specialized knowledge, such as industrial safety and subcontracting.

Regular inspections are conducted twice a year (April and October) for all companies of the group, and the inspection targets are determined and implemented every year to minimize the burden on on-site operations due to inspections. Specific inspections are carried out when the Compliance Control Committee or a compliance officer recognizes a problem, and is performed at random only for specific projects, tasks, or issues. Routine inspections are conducted prior to the execution of major tasks according to on-site requirements.

This refers to regular compliance control activities self-conducted by affiliates to supplement the physical limitations of compliance control by the Compliance Control Committee and compliance officers. Compliance supervisors must establish and implement plans for compliance supervision for their departments, and the Chief Compliance Supervisor oversees the supervision of all the departments. The results of supervision must be shared with the compliance officers in order to come up with solutions to problems.