The Fair Trade Act aims to promote balanced development of the national economy by stimulating free and fair competition among companies, improving creative business activities and protecting consumers.
The Compliance Program varies in operation depending on the features of the company and the industry. However, the following 7 key requisites shall be satisfied to ensure effective operation of the Compliance Program.
- 1. Declaration of management's will on the voluntary compliance
- 2. Appointment of Compliance Managers
- 3. Preparation and distribution of compliance guidebook
- 4. Execution of education program
- 5. Implementation of monitoring system
- 6. Disciplinary action against the employees violating the regulations related to Fair Trade
- 7. Implementation of document management system
Benefits from the Compliance Program
For companies under the Compliance Program, if they accidentally violate the Fair Trade Act, legal restraints such as penalties, publication of notices in newspapers and criminal prosecutions will be alleviated by classifying the introduction and operation status of the Compliance Program into the following two categories.
|CP grading (grade A or better)||Relief Standard|
|Grade A or A above||10% within|
|Grade AA or AA above||15% within|
|Grade AAA or AAA above||20% within|
|Voluntary Applying the general clauses to the relief by the voluntary readjustment (20% before the outset report, 10% after the report)|
The Fair Trade Law encourages fair and liberal competition of companies and also promotes creative sales activities, protects customers, and induces the balanced development of public economies. POSCO published and distributed its Fair Trade Guidelines in order to ensure strict behavioral standards are followed by its employees in their observation of Fair Trade laws. POSCO has also put forth efforts to eliminate existing customs that violate Fair Trade laws. POSCO has been executing the Compliance Program since 2002 in order to comply with the policies of local authorities and to prevent any disadvantages to the company caused by violations by strengthening the preventive actions against viola.
- ’03. 06 : POSCO Code of Conduct declared (1,000 members signed to abide by Fair Trade)
- ’04. 03 : Insider Trading Committee established under Board of Directors
- ’06. 03 : Evaluated Most Excellent by the Korea Fair Competition Federation
- ’06. 12 : External evaluation on CP operation (Acquired “AA” CP level evaluation from the Fair Trade Commission)
- ’07. 04 : 'Fair Trade Academy' hosted to uplift consultation abilities of subsidiary personnel in charge of Fair Trade
- ’08. 12 : External evaluation on CP operation (Acquired “AA” CP level evaluation from the Fair Trade Commission)
- ’09. 03 : Fair trade agreement execution evaluation on subcontracting by the Fair Trade Commission (A+ Most Excellent)
POSCO has been carrying out tasks for the Compliance Program since its introduction in 2002.
|Recommendations||The promotion accomplishment of our compliance program|
|① CEO's declaration of the
commitment to compliance
|② Appointment and management of the compliance manager||
|③ Framing and distribution of the compliance handbook||
|④ Operating educational programs||
|⑤ Establishing the internal monitoring system||
|⑥ Establishing the sanction system about the lawbreaker||
|⑦ Managing the fair trade-related documents||
|⑧ Organizing the compliance council||
|⑨ The evaluation of the operation||