Ethical and Compliance Management

YOUNG POONG actively supports the faithful fulfillment of corporate economic and legal responsibilities and the practice of compliance management by employees to secure trust with stakeholders and internalize a culture of compliance within the company. To strengthen the compliance management system, it implements strict management regarding fair trade and internal controls, centered on the Compliance Management Team under the Audit Committee.
It has established compliance control standards to monitor whether all employees properly adhere to laws and regulations relevant to their duties, evaluates this compliance, and reports findings to the Board of Directors.

Ethics and Compliance Management Structure

Ethical and Compliance Management Strategy

YOUNG POONG considers ethical and compliance management as core values and strives to build trust with stakeholders and foster a corporate culture of compliance to achieve sustainable growth. To this end, we have established and disclosed the Ethics Charter, Code of Ethics, and Code of Ethics Implementation Guidelines, and we regularly review their process to uphold high standards of integrity and ethical behavior. We also conduct ongoing training for employees to promote awareness of ethics and compliance company-wide and to embed ethical management in our organizational culture.

Employee Ethics Charter

YOUNG POONG has an ethics charter, which is publicly available on the company's website in both Korean and English. The employee ethics charter consists of five declarations and is the basis for the code of ethics and practice guidelines. The employee ethics charter is as follows.

Code of Ethics and Practice Guidelines

YOUNG POONG has been implementing the code of ethics since 2019, and based on this, we have established the code of ethics practice guidelines, which provide standards for ethical decision making and behavior that employees should follow in specific situations related to their daily lives or work. The code of ethics was established to provide standards of behavior and value judgment that employees should observe in order to implement the spirit of the employee ethics charter in the workplace. It consists of six chapters, including Responsibility to Customers and Respect for Shareholders, and is the basis for the code of ethics practice guidelines. The guidelines for implementing the code of ethics apply to all employees of YOUNG POONG (including contractors) and, in principle, to other persons working for the company, such as dispatched workers. The company encourages its business partners to implement such practice guidelines or a similar code of ethics. The code of ethics practice guidelines sets forth conduct guidelines in six chapters, including on relationships with customers, business partners, and other stakeholders.

Anti-Corruption Framework

The anti-corruption system was established through the whistleblower system, ethical management education, and participation in the ethical management practice pledge. Among these, ethical management education was held at the Zinc School, and a lecture was held for employees at YOUNG POONG's headquarters on October 25, 2023. In addition, YOUNG POONG employees sign the ethical management practice pledge, which states that we will be honest with customers, pursue mutual development through fair trade with suppliers, and fulfill our responsibilities and obligations to shareholders and society.

Legal Compliance Risk Assessment Process

YOUNG POONG continuously monitors employee compliance with laws and internal regulations as part of its commitment to advancing its ethics and compliance management framework. Through regular risk assessments, the Compliance Management Team identifies factors that may affect compliance and ethics management, such as major legal violations, internal whistleblowing, and issue management, and drives system improvements based on these. To support this, both the Legal and Compliance Management Teams identify key issues related to regulatory compliance and deliver company-wide training. We have also established an internal monitoring system by designating responsible personnel within each department. Additionally, we conduct regular risk reviews and surveys to assess the level of compliance, and reflect the results in our ESG disclosures. Based on these insights, we continue to implement improvements to our systems and processes.

Grievance Channel (Shinmungo) ESG > Grievance Channel(Shinmungo)

YOUNG POONG has a whistleblower page on the company’s website to facilitate whistleblowing. A report can be filed in various ways, such as by phone, e-mail, or through the whistleblower section of the website. All reports are guaranteed to be anonymous. The protection of whistleblowers is a top priority for Shinmungo, and to that end, we have established a system and implemented a policy to protect whistleblowers based on five principles.

Operational Process

Ethics and Compliance (Anti-Corruption) Training

YOUNG POONG strengthens its ethics and compliance risk management capabilities by managing the completion rates of statutory and internal ethics training programs. We offer a variety of systems and training programs designed to cultivate ethical awareness and legal compliance among both employees and partners. Every year, we provide regular training on the Grievance channel system and our Code of Ethics and Practices. In particular, we deliver company-wide anti-corruption training focused on key elements of our Code of Ethics, such as fair performance of duties and the prohibition of improper solicitation or acceptance of money, gifts, entertainment, or favors from customers or stakeholders. Through these efforts, we aim to foster integrity across the organization.

Pledge of Ethical Management

YOUNG POONG encourages all employees to contribute to fair business practices and the cultivation of a transparent corporate culture by signing the Pledge of Ethical Management. The pledge outlines our commitment to providing honest service to customers, engaging in fair and mutually beneficial transactions with partners, and fulfilling our responsibilities to shareholders and society. By signing this pledge, YOUNG POONG’s employees affirm their adherence to YOUNG POONG’s ethical principles, reinforcing corporate transparency and building trust with all stakeholders.