A job related company in the scope of being applied to the code of ethics refers to a company or a person directly or indirectly related to the job of employees. Any company having no relation with the job of employees shall be excluded from the application even if it is one of our cooperative companies, provided that such circumstances shall be decided not on discretion, but by the decision of an official in charge of ethics.

• Any company related to the job of an employee shall naturally become a job related company to any superior of the employee as well.
• * Example: A company supplying Item A to an employee in charge of purchasing Item A shall become a job related company to the employee, but not one to an employee in charge of purchasing Item B, provided the company might become a job related company if the employ in charge of purchasing Item B can affect the employee in charge of purchasing Item A.

A job related employee refers to any employee or executive having primary relationships or influences.

• * Example: Any employee carrying out a job including the personnel, budget, audit, reward or discipline, appraisal, etc. for the employees and executives would fall into a job related employee in general. The simple relation of office work, including the salesperson for Commodity A and employees related to operations, will not be considered a job related employee.

The official in charge of ethical management takes charge of any inquiry and demand in relation to any ethical behavior.

Decisions shall be made in reference to the following examples.

• We shall make efforts to make prompt arrangements for any complaint and demand from customers while listening to their opinions.
• We shall make efforts to keep our promises with customers.
• We shall keep strict management concerning customer information in accordance with the related laws to prevent any infringement to the privacy of customers or any damage to their credence that may occur due to information leakage.
• We shall initiate continuous activities on quality improvements to provide products and services satisfactory to the needs of customers.
• We shall carry out research on market circumstances with customers at any possible time and reflect those results in our management policies.

Decisions shall be made in reference to the following examples.

• Any excessive Internet surfing, chatting, entertainment, gossip, etc. with no direct relation to job performance.
• Staying in the office or requesting overtime wages and/or meal expenses for the night shift for personal affairs after working hours.
• Smoking in places other than the designated smoking sites in the company.
• Any obscene conversation and/or behavior forcing others to participate in drinking or dancing in the case of official meal occasions.
• Any behavior involving connection to obscene Internet sites, or to view or listen to or distribute such obscene -contents in one’s workplace.
• Any unnecessary physical contact or sexual jokes that might incur any sexual humiliation.
• Any behavior to arrange partisanship or discriminating treatment with no relation with personal abilities, including school relationships, regional relationships, blood relationships, gender, etc.
• Any behavior to provide objective and severe suffering to others, including inappropriate naming, swearwords, slander, negative prejudices, threatening words or actions, etc. using any superior condition such as one’s own job grade, physical condition, etc.

Any matters on compliance upon carrying out the job of employees shall be made in reference to the following examples.

• Any sub-ordinate shall obey any fair order and instruction in carrying out one’s job while respecting opinions of any superior.
• No superior shall make any unfair business or private instruction without legal foundation to their sub-ordinate, and any sub-ordinate might refuse such instruction if made.
• No superior shall undertake actions that might make others misunderstand opinions or business records of one’s sub- ordinate as their own opinion or record.
• No employee will make word or action to incur slander against another employee.

Examples

• An examination for promotion which includes the person in charge, where the employee’s elder brother is an employee of the supplier, etc.
  * Relatives within a range of cousins.
• Blood relationship: lineal ascendant (parents, grandparents, great-grandparents, grandfather of mother’s parents, great-grandfather of mother), lineal descendent (offspring, grandchildren, great grandchildren), lateral blood relationship (brothers and sisters, uncles and aunts, nephews and nieces, cousins), adopted children and their blood relationship with their adopted children.
• Relatives by marriage: spouse of blood relationship, blood relationship of spouse, spouse of blood relationship of spouse.
  Spouse: wife or husband

This article refers to the giving or promotion of any superior position with no clear foundation in law or regulation, or to deteriorate fair trade or competition.

• Regional, blood or school relationships do not specify any specific range, but decisions shall be based on the presence of impact on the job performance from the presence of relationship to the extent of friendly relationships that might have possibilities of tacit pressure or involvement.

Examples : Illustrated relationships above cannot be considered as a justifiable cause of providing privileges.Therefore such degradation to fair competition or provision of economic or social interests shall be considered as a violation the codes of conduct.

It applies to the circumstance that both the use of budget in private and damage to Koscom is sufficed
at the same time.

• This applies to the circumstance that both the use of budget in private and damage to Koscom are interrelated. Use in private refers to use for personal interests with no relation to the company’s businesses.

Example : using any expense account for business trips in any personal expense for celebration or condolence, partly appropriating expenses of overseas training expenses for the accompanying family, using expenses for product promotion in meal expenses with family, etc.

As it refers to asking outsiders to make favor requests, any consultation or request for personnel matters to their superiors or persons in charge of personnel affairs can be allowed.

As it refers to unfair involvement, opinions upon the request of persons in charge of personnel affairs by team managers and head office directors are allowed.

Awards and discipline are also included.

In the case that decisions on instructions to deteriorate the fair job performance shall not be made by the person making the instruction or the person in charge of the job, any doubt on such matters shall be referred to the person in charge of ethical management.

Decisions shall be made in reference to the following examples.

• Employees are prohibited from supporting any friendly events for their friends by any cooperative companies related to their job.
• A Personnel Team Manager is prohibited from distributing and collecting applications for credit card membership as it is possibly considered using his/her position when the authority of Personnel Team Manager is taken into consideration.
• Any personal request for application for such membership is allowed between team members where no influence of position is involved.

Violations are deemed being made although no bribery undertaken, such as assets or entertainments in exchange for payments of such arrangements and/or requests.

• Arrangements refer to the introducing of acts to deteriorate fair job performance, and favor requests refer to asking for something, but both are used together in reality.

• This article refers to circumstances where an employee acquires information on any specific company in advance while carrying out their job.

Decisions shall be made in reference to the following examples.

• Private use of vehicles for business by the family of employees.
  * Use with the acceptable range of reasons under approval of the company is allowed with fair reason such as activating employee activity clubs, etc.
• Use of office supplies in private including PR gifts, copy papers, etc.
  * Excluding the use of trial products and the temporary personal use of office supplies for business purposes.

Examples of money and others

• Drafts, checks, stocks, bonds, boarding pass, commodity coupons, public phone cards, ski lift boarding pass, etc.
• Anything with economic value including goodwill, rights of allotment for apartments, etc.
• Meals, drinking (room salons, taverns, night clubs), golf, skiing, casino, horse racing, steam bath, massage parlor,
• high-quality barbershop, train ticket, flight ticket, travel coupons, tickets for sports such as soccer, condo.
  * Condo reservations under difficult circumstances in seasons for such reservations fall into entertainment although the actual expenses are paid.

As any money or others exceeding 50,000 won are prohibited, any orchid pot exceeding 50,000 won is
prohibited in the case of floral arrangements for promotion or upgrades.

• If the excessive amount (difference) is paid immediately, it might be allowed. (For example, making payment of 50,000 won in the case of an orchid pot worth 100,000 won, provided that compensating with meals shall not be deemed as making payment.

Allowable circumstances

• Food and convenience provided in a range of normal customs (limited to 50,000 won): Food refers to beverages and meals provided in business discussions and convenience to the use of communication facilities and vehicle support.
• Money, transportation, accommodation or food commonly provided in any official event: any provision from unofficial events or to specific employees shall be prohibited.
• Souvenirs or promotional items distributed to many and unspecified persons, such as souvenirs for customers and promotional items for events including seminars, are allowed; but souvenirs given to specified persons are prohibited.
• Money or others to help employees having difficulties from disasters, etc.: any unofficially collected money or items are prohibited.
• Money or items otherwise provided within a range allowed by the President for smooth job performance: the official in charge of ethical management shall prepare criteria defined by the President and decisions can be made upon request in advance (for example, participation in an unofficial golf event to share industry information or identify market trends).

Prohibited examples

• Any act to provide a member of a department with a massive amount of cooperative items.
• In the case of overseas trips sponsored by credit card companies by selecting 2~3 employees in charge of accounting by institution that has higher records of credit cards.
• Any behavior to provide a newly positioned superior with gifts from expenses collected by a number of sub-ordinates.
• Any treating of meals or drinking at a meeting with job related companies in the past during celebration or condolence of colleagues.
• In the case of cooperative money from cooperative companies because of a shortage in budget for the event.

As any gift to superiors by sub-ordinates is prohibited, gifts or compensating items provided for participants in such events as celebration or condolence are allowed if they are given under no conflicting relationship.

Examples: In the case of free items provided by job related companies for the Women Association of an apartment to which a spouse of an employee belongs.

• Lineal ascendants: parents, grandparents, great-grandparents, etc.
• Lineal descendants: offspring, grandchildren, great-grandchildren, etc.

A significantly lower price refers to a level of price deemed as inappropriate benefit to the extent that it might affect fair job performance, which the official in charge of ethical management should decide case by case.

If such borrowing had been made before the execution of these codes of ethics, the extension of such borrowings is not allowed, provided that the extension can be made in accordance with Clause 2 if there exists any unavoidable circumstance.

• Any case where the company became their job related company after such borrowing should also be reported by applying Clause 2.

Employees shall not demand any money or unfair trade either by violating regulations or procedures or by using a superior position in trading.

There is no problem if their job related companies come to know the contents of notification through newspaper or broadcasting.

The Internet homepage should not show any related posting as their job related companies can frequently visit.

• Posting on the in-house bulletin including Nanumi can be allowed.

Any notification done by persons, other than the person directly concerned with the celebration
or condolence, is also deemed as a violation.

• Any notification to job related companies by sub-ordinates, regardless of clear instruction by the superior, is deemed as a violation, even with reasonable instructions by the superior.

If any money or others exceeding 100,000 won are given by other employees or their job related companies, the difference should be returned, except for the cases where the payment is made by an employee as a relative or by a friendly organization that allows the payment by its articles of association or organizational rules.

All the provisions of these codes shall be interpreted by the official in charge of ethical management, and any discretionary decisions by employees cannot be justified for such possible violations.

All the provisions in these codes shall be interpreted by the official in charge of ethical management and any discretionary decisions by employees shall be prohibited.

• Considerations should be applied until employees have confidence through the company’s questions and answers for ethical practices defined in Article 6, and the confirmation should be done through consultations in any case of doubt.

All executives and employees have obligations in ethical management and thus they should make reports to the report center for unethical behavior if they are aware of any unethical behavior

• Especially, any employee related to ethical management, including the official in charge of ethical management, should report any unethical behavior or violations against these codes in the process of their job performance, and any failure of such reporting is subject to discipline in accordance with guidelines for ethical management, provided that the report should be given under the employee’s real name and any anonymous reporting might not be accepted as damage to employees from a report with false charges.

Any unclear case of prohibited money or items and any amount to be returned shall be consulted with the person in charge of the ethical management in any case.

Any unclear case of prohibited money or items or the amount to be returned shall be consulted with the official in charge of ethical management.