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What is the
Fair Trade Self-Compliance Program?
In April 1981, the fair trade system was formally launched with the implementation of the "Monopoly Regulation and Fair Trade Act.' However, when the market order relies solely on the government's law enforcement, it has resulted in the waste of administrative resources and cost of adaptation for companies, with the number of corporate violations growing year by year. The Compliance Program is an internal system established by companies to voluntarily comply with the relevant laws for fair competition between companies. Its goal is to strengthen the prevention and follow-up measures against related violations.

8 Principles of Fair Trade Self-Compliance Program

  • 01Establishment and implementation of compliance standards and procedures
  • 02CEO's willingness and support for self-compliance
  • 03Appointment of self-compliance manager responsible for compliance
  • 04Creation and utilization of self-compliance handbook
  • 05Continuous and systematic training program
  • 06Establishment of an internal monitoring system
  • 07Sanctions against employees who violate fair trade laws
  • 08Effectiveness assessments and improvement measures

CEO's Fair Trade
Self-Compliance Declaration

The Fair Trade Self-Compliance Program is an internal system for the autonomous compliance of relevant laws for the fair competition of companies, proactively preventing and taking follow-up measures against violations of fair trade-related laws. We have introduced the Fair Trade Self-Compliance Program to uphold the principles of fair trade compliance, and are carrying out activities to establish the culture of compliance management across the Company. Also, we have adopted an anti-corruption system to prevent corruption in the organization. Since we need all employees' active participation to install the culture of fair trade self-compliance, please comply with the following Code of Conduct.

  • 01In accordance with the principle of free competition, respect the order of the market economy and compete justly and fairly.
  • 02In any case, do not harm the interests of consumers and strive to achieve quality service.
  • 03Establish a sound market order through competition based on trust and respect.
  • 04Trade on an equal footing with partners and promote balanced growth through mutual cooperation.
Declaration of Self-Compliance

Fair Trade
Self-Compliance Program

Program Introduction and Operation

  • Purpose

    By introducing and operating the Fair Trade Self-Compliance Program, we aim to prevent legal violations in advance and establish a fair and transparent competitive order.

  • Date of Introduction

    April 1, 2002

  • Details

    Declaration of self-compliance
    Enactment and proclamation of the Code of Conduct
    Committee Organization
    Launch of the Compliance Committee: Deliberation and voting on important matters, serving as advisors to the compliance manager
    Appointment of a self-compliance manager: Substantial and overall responsibility and authority (executive officer in Compliance Management)
    Operation of the secretariat and the working council by division: Working-level assistance and administrative tasks
    Activities
    Advanced prevention: Operation of reporting and monitoring system, conducting training, production and use of handbook
    Measures against violations: Measures including investigations, deliberations, voting, and sanctions; inspection of implementation, training, and documentation
    Creation and utilization of handbook
    Overview of the fair trade system, documentation of review cases and employee queries
    Updating and management using an in-house electronic publishing system
    Referring to the handbook constantly when conducting related work

Appointment of LOTTE Wellfood
Fair Trade Self-Compliance Manager

  • Purpose

    For an efficient operation of the Fair Trade Self-Compliance Program, the Board of Directors appoints a self-compliance manager.

  • Manager

    • Position: Head of Compliance Management Division, LOTTE Wellfood
    • Address: 10, Yangpyeong-ro 21-gil, Yeongdeungpo-gu, Seoul

  • Roles

    • Planning and operation related to fair trade compliance
    • Demand for inspection, improvement, and correction for self-compliance
    • Creation of self-compliance-related handbook and training of employees
    • Record keeping of outcomes on compliance activities
Message from the Self-Compliance Manager

Procedure for Processing Fair Trade Violation Cases

  • 1. Advance Measures

    1. Maintenance and management of handbook
    2. Supervision and preventive training

  • 2. Processing Violations

    1. Recognition or notification of the incident
    2. Investigation and reporting
    3. Review and deliberation
    4. Voting on sanctions and measures
    5. Notification and enforcement of voting results

  • 3. Follow-up Measures

    1. Reporting of implementation results
    2. Feedback and training
    3. Management of results

Self-Compliance Office,
LOTTE Wellfood

The Compliance Management Team plays the following roles as a Self-Compliance Office.

  • 01Support and aid self-compliance managers and committee activities
  • 02Management of records on deliberations and voting results of the Compliance Committee
  • 03Management of records on corrections and sanctions on violations of fair trade laws, checking the results of measures by relevant teams
  • 04Maintenance of internal guidelines in accordance with amendments to fair trade-related laws and regulations
  • 05Creating self-compliance guidelines and standard forms
  • 06Identifying risk factors for unfair trading practices and communicating to employees
  • 07Regular and occasional inspection of Fair Trade Self-Compliance Program operations
  • 08Training of employees on fair trade-related matters
Fair Trade Violations
Laws on Fair Trade
Fair Trade Compliance Declaration

In recent years, "fairness" has become an important value for our society. LOTTE Wellfood introduced the Fair trade Self-Compliance Program in April 2002 to practice compliance management amid the fierce market competition. In 2018, we established a dedicated department for a more effective operation of the Fair Trade Self-Compliance Program, and have since worked actively and continuously to establish the principle in the Company.

In response, all employees, including myself, pledge to actively participate in the Fair Trade Self-Compliance Program and contribute to the development of the fair trade culture. All employees will clearly recognize and practice fair trade laws related to their work, and will proactively participate in systematic and continuous training on the reinforced laws and regulations to ensure that compliance management can be practiced in all the work. In addition, the Company will operate an internal monitoring system at all times for the prevention of misconduct and take corresponding sanctions for violations. Moreover, we will evaluate whether the Fair Trade Self-Compliance Program is effective and improve it as necessary.

All employees will continue to be earnest in establishing the culture of fair trade self-compliance in the Company and declare that they shall comply with the following Code of Conduct.

LOTTE Wellfood Fair Trade Self-Compliance Code of Conduct

  • 1. In accordance with the principle of free competition, respect the order of the market economy and compete justly and fairly.
  • 2. In any case, do not harm the interests of consumers and strive to achieve quality service.
  • 3. Establish a sound market order through competition based on trust and respect.
  • 4. Trade on an equal footing with partners and promote balanced growth through mutual cooperation.

April 1th ,2023
CEO Paul Yi, LOTTE Wellfood

Message from the Compliance Manager

Greetings to our employees and executives.
In this day and age, ethical corporate management practices are no longer optional. Enforcement of laws related to fair trade is becoming ever stricter, and consumers and markets expect higher standards of equity and fairness in transactions. Only businesses that carry out their social obligations in keeping with such changes in circumstance will survive and earn the favor of customers and stakeholders.
This means companies that fail to operate in an equitable and transparent manner will be shunned by shareholders, investors and consumers alike. Violations to fair trade laws have lasting effects that go beyond warnings or punishment. It must be recognized that such acts do irreparable damage to the brand value of a corporation and directly threaten the very existence of the business.
Since adopting our Fair Trade Compliance Program in 2002, we at LOTTE Wellfood have been actively engaged in a range of compliance activities aimed at eliminating risk of fair trade law violation and improving fair trade compliance awareness among our staff and the board. LOTTE Wellfood is already a leader in the food products industry and as such must play a leader’s role in establishing a sound and fair trade culture. Our staff and executives are kindly asked for their active participation in compliance activities and to adopt fair trade practices.

February 29th, 2023
Compliance Manager, LOTTE Wellfood