Compliance management is the only sustainable business approach, and fraudulent activities are the greatest obstacles. Haesung DS is committed to adhering to all domestic and international regulations, including the OECD Convention on Combating Bribery and the 2010 Act on Prohibition of Bribery, to prevent fraudulent activities in our business operations. We require the same commitment fr|om our business partners. Haesung DS prohibits any form of monetary or material compensation in both the private and public sectors. In particular, we prohibit offering specific value to others to gain unfair business advantages. Furthermore, we prohibit employees fr|om engaging in fraudulent activities related to their duties and any actions that could lead to such conduct.

Haesung DS does not engage in the exchange of improper gifts. Appropriate gifts and hospitality can express goodwill in business relationships. However, actions that may appear inappropriate fr|om a third-party perspective are considered fraudulent and should be approached with caution. Haesung DS does not permit gifts, excessive entertainment, or any form of quid pro quo exchange that may induce participation in unfair business practices. Employees of Haesung DS must not engage in actions that could be interpreted as rebates, monetary compensation, or gifts that violate the law, and may only provide or approve business courtesies that are legal and fully compliant with the company's policies and guidelines.

Haesung DS’s concept of "global business" encompasses collaboration with various business partners, including customers and partner companies, and is based on objective evaluations of reliability and integrity. To prevent illegal activities such as monetary compensation and gifts, relationships with business partners must undergo strict internal procedures. All third-party intermediaries are selected through a due diligence process to ensure that Haesung DS and its business partners can build sustainable relationships. Haesung DS also requests that its business partners comply with all relevant laws and regulations. Above all, Haesung DS requires all subcontractors, suppliers, and consultants under contract to adhere to regulations regarding the confidentiality of sensitive information and compliance with anti-corruption laws.

Haesung DS’s concept of "global business" encompasses collaboration with various business partners, including customers and partner companies, and is based on objective evaluations of reliability and integrity. To prevent illegal activities such as monetary compensation and gifts, relationships with business partners must undergo strict internal procedures. All third-party intermediaries are selected through a due diligence process to ensure that Haesung DS and its business partners can build sustainable relationships. Haesung DS also requests that its business partners comply with all relevant laws and regulations. Above all, Haesung DS requires all subcontractors, suppliers, and consultants under contract to adhere to regulations regarding the confidentiality of sensitive information and compliance with anti-corruption laws.

Employees of Haesung DS may have access to various types of proprietary or confidential information related to Haesung DS fr|om the company, customers, suppliers, and third parties. Haesung DS is committed to maintaining the security of unique information for all stakeholders, including employees. Employees in possession of the company's confidential information are responsible for its security and should use it only when authorized in accordance with legal and contractual obligations. The duty to maintain security remains in effect even after the termination of contracts with Haesung DS.

In accordance with Haesung DS's Code of Conduct and fundamental policies, we have established internal guidelines and processes to ensure the proper conduct of our daily business operations. These guidelines provide employees with advice on handling their work professionally and legally, supporting their decision-making. This guide is made available to employees through HDS's groupware and is also disseminated through online and offline training conducted throughout the year.

All Haesung DS employees are required to undergo training on anti-corruption and fair trade practices, and they continuously receive online and offline training on various topics related to compliance. This training can be tailored to specific job functions such as sales/marketing, purchasing, and engineering, and aims to enhance employees' awareness of fair competition and transparent management while providing essential knowledge.

Violations of laws, regulations, and internal policies can lead to serious consequences for all parties involved. Therefore, any employee who engages in fraudulent activities will face disciplinary action within the legal framework. Additionally, Haesung DS may pursue civil or criminal proceedings depending on the severity of the fraudulent activity.

Employees of Haesung DS can freely raise concerns and reports regarding compliance with laws or internal policies. This can help protect the company and other stakeholders fr|om the harm caused by fraudulent activities. Haesung DS employees have an obligation to report any potential violations of laws or policies by others so that the company can take appropriate action. There are several channels available for reporting fraudulent activities, one of which allows for anonymous reporting. All reports will be kept confidential and used only in company investigations of such matters. The company does not tolerate any retaliation against reports made in good faith.

- Reporting Targets

- Confidentiality Assurance

- Reporting Methods

- Prior written delivery before contract signing

- Price determination based on a reasonable assessment method

- Clear delivery deadlines

- Objective inspection standards for delivered goods

- Reasonable payment deadlines

- Rational handling of returns for defective products

- Disclosure of selection criteria, procedures, and results for partner companies.

-Assurance of specificity, clarity, and fairness in selection criteria

-Disclosure of the criteria and procedures for cancellation of partner company registration

- Regularly convene the internal review committee once a year.

- The committee conducts a preliminary review of the fairness of the contract signing and pricing processes, as well as the legality concerning subcontracting laws.

- The internal review committee conducts a preliminary review of the appropriateness of the criteria and procedures for the registration and cancellation of suppliers (outsourcing companies).

- Issuance of written subcontract agreements.

- Written content includes: Outsourcing date and products, details, quantity, and unit price of outsourced products

- Haesung DS promptly issues a written contract after reaching an agreement with the supplier on the terms of the subcontract.

- The written document must be preserved in its original form as of the time it was issued, submitted, or used for any other purpose.

- The contracting parties must retain the aforementioned documents for three years fr|om the date the subcontract transaction between them is completed.