Enhancing Ethical Management

LFC has established an ethical management system that presents the basic procedures and standards that employees should follow in performing their work, with the goal of rendering ethical management an integral part of its corporate culture. When faced with ethical dilemma, any of our employees makes the right decision in the process of carrying out work based on the Code of Conduct. They do not take any unfair personal gains or receive or provide inappropriate gifts or entertainment, and they respect and comply with the anti-corruption laws and regulations.

Code of Conduct for Business Ethics
  • Trust with Our Employees
    People who are truly precious to each other as part of a family.
    Trust is what binds us together as one.
  • Trust with Our Customers
    Making LOTTE
    products and services to be first choice of customers.
    This is the strength of trust.
  • Trust with Our Partners
    People who become one with partner companies based on trust.
    It is us, LOTTE people.
  • Trust with Our Shareholders
    People who grow together with LOTTE.
    We protect shareholder assets and increase their mid-to long-term values by running our business with integrity and transparency.
  • Trust with Society
    A company trusted by society for contributing to society and setting an example.
    This is what LOTTE pursues as a responsible business.

Ethical Management Consulting and Reporting Channel

LFC operates an online reporting channel, “Shinmungo” on its official website and the LOTTE Group “Shinmungo”, so that its employees and partner companies can report any unfair business handling and unethical matters or propose improvements. We keep the identity of whistleblowers and the details of their reports strictly confidential to ensure that they do not suffer any disadvantages due to their reports. In the event of a violation of related information protection, we take necessary measures such as disciplinary action in accordance with Article 14 of the Company’s Public Interest Reporting Regulations.

Types of Corrupt Acts to Be Reported
  • 01
    Embezzlement of public money, bribery
  • 02
    Unfair handling of business
  • 03
    Violations of the fair trade rules by employees and affiliates
  • 04
    Requests for or offers of money or entertainment
  • 05
    Unfair stake participation in unlisted trading companies
  • 06
    Dual employment
  • 07
    Other matters that violate the Code of Ethics
Report Handling Procedure
* If an accusation is found to be unfounded, the relevant incident ends with a report on the investigation results.

Internalizing Compliance Management

In order to expand the efficiency and expertise of its compliance management, LFC has appointed a Head of the Legal&Compliance Department who oversees the Compliance Management Team, Ethics Management Team, and Internal Accounting Management Division. Specialized departments, related to compliance management, constantly monitor the status of our compliance management to prevent unethical conduct in advance. We also strive to prevent the recurrence of unethical acts and conduct by establishing a system of disciplinary measures for employees while carrying out various activities to raise their awareness of compliance.

Compliance Management Vision
Compliance Management Organization by Task

Operating the Compliance Program

To strengthen voluntary compliance with the fair trade laws, LFC adopted the compliance program (CP) in 2006, and is striving to prevent unfair trade conduct and to build a fair trade culture. To strengthen our fair trade capabilities, we provide systematic CP training to our employees in charge of fair trade and subcontracting according to each job function, as well as providing regular training to onsite departments on amendments to the relevant laws.

Compliacven System