Compliance

We create a sustainable future where people, society and the environment will coexist.

Policy

SK ecoplant operates the Compliance Program (CP), a system to voluntarily comply with fair trade laws and regulations. Appointed by Board of Directors, the Chief Compliance Officer independently supervises CP operations and reports on operational plans and performance to the BOD or the CEO on a quarterly basis. All employees, including the CEO, pledge to practice compliance and actively participate in various CP activities, including training and inspections to prevent legal violations. In 2021, the Compliance Office was reformed and expanded in size, to which people in charge of fair trade-related areas such as global CP, ethical management, and win-win partnerships were assigned, under the direct supervision of the CEO. In addition, CP operational regulations and internal company rules were revised, specifying the CEO’s roles and responsibilities, clarifying the Chief Compliance Officer’s qualifications, ensuring the Chief Compliance Officer’s independence, and reinforcing training for violators, thus contributing to a foundation for independent and systematic CP operations.

[Chief Compliance Officer]

Duties of Chief Compliance Officer

  • 1. Carrying out CP Operation and management
  • 2. Establishment of a plan related to CP
  • 3. Education on competition laws and CP
  • 4. Conducting monitoring of the implementation of CP
  • 5. Analyzing competition law violations and seeking improvement, corrective and preventive measures
  • 6. Determining the level of sanctions for violators of competition laws and requesting for a review by the Reward and Punishment Review Committee
  • 7. Reporting to the BOD with respect to CP-related activities and issues
  • 8. Requesting for CP oath of all executives and employees
  • 9. Other matters deemed necessary by the BOD
  • (Article 5 of the CP Operational Regulations)

Authority of Chief Compliance Officer

  • 1. Right to oversee the CP operation
  • 2. Right to request submission of data and information needed for performing duties
  • 3. Investigation and reporting rights on competition law violators and violations
  • 4. Right to correct and improve cases that violate competition laws
  • 5. Other authority deemed necessary by the BOD
  • (Article 6 of the CP Operational Regulations)

Appointment of SK ecoplant’s Chief Compliance Officer

  • 2022.03: Jang-suk Yoon (Head of ESG Center)
  • 2021.03: Joo-ho Park (Head of CPR Group)
  • 2018.02: In-gi Lee (Head of Compliance Center)
  • 2015.02: Jeong-il Yang (Head of Ethical Management Division)
  • 2013.01: Chul Park (Head of Ethical Management Division)
  • 2008.01: Jeong-il Yang (Director of Legal Affairs Office)

Compliance Organization & Roles

자율준수사무국에 관한 이미지 입니다. 자세한 설명은 하단 내용을 참고하세요.
  • CEO
  • 자율준수관리자 - 자율준수프로그램 운영 총괄 / 공정거래 활동 및 운영상황 이사회 보고
  • 자율준수사무국 - 자율준수관리자 보좌 / 자율준수프로그램 실무수행 / 부문 공정거래 업무지원
  • 부문 자율준수 관리자 - 부문 공정거래 업무 총괄 / 자율준수사무국 협조 및 지원
  • 부문 자율준수 사무국 - 공정거래 관련 교육, 점검, 보고활동 / 공정거래 업무에 대한 자문 및 지원

Global Compliance

Furthermore, we operate a process to identify the compliance levels of domestic and overseas M&A target companies. We then integrate our compliance system with those of our target companies after acquisition. As our M&A of overseas companies is on the rise, rules for compliance with global anti-corruption standards, such as the Global Anti-corruption and Compliance Policy, and the Global Gift and Entertainment Policy, have been established and revised to reinforce employees’ commitment to global compliance. These rules are effective in all our places of business, including subsidiaries.
In addition, case-specific and job-specific compliance training is provided to all employees, including the CEO and temporary workers, in accordance with their position and field of work. Starting in 2021, employees have been receiving guidance and training on global anti-corruption laws in order to minimize risks relating to M&A or investment in overseas companies with which we have had M&A discussions. Before 2021, our global compliance taskforce held offline training – or added global compliance to ethical training – for employees engaged in overseas sales or related duties, which have high exposure to compliance risks. In 2021, however, we established an independent global compliance training program. All employees are eligible to attend this online program on global anti-corruption laws, including the U.S. Foreign Corrupt Practices Act.

글로벌 Compliance 조직에 관한 이미지 입니다. 자세한 설명은 하단 내용을 참고하세요.
  • CEO
  • Chief Compliance Officer - 회사의 윤리경영 실천과 Compliance Program 운영에 대한 최고 책임자
  • 해외 Compliance TF

    Int'l Compliance / TF : Anti-Corruption / CR: Anti-Competition

    • 해외반부패 관련사항에 대한 Chief Compliance Officer 보좌
    • 발주처 또는 Biz.Partner 의 해외 반부패 요구 또는 질의에 대응 및 임직원 법률자문 제공
  • Compliance Champion (Divisions)
  • Compliance Assistant (Divisions)
    • 사업부문내 Compliance Champion 과 Compliance Assistant 를 선정
    • 사업부문의 해외 반부패 관련 업무를 관리/감독하며, 해외 Compliance TF를 보조

Goal

SK ecoplant is strengthening its system for fair trade implementation with the goal of zero fair trade violations. To this end, we plan to upgrade our CP with a view to applying for a CP evaluation by the Fair Trade Commission for the first time, acquiring an “A” grade or higher in 2022, and an “AA” grade in 2023 In 2022, we will also prepare new courses on basic CP training for new hires, intensive training for working-level staff in accordance with the revised Fair Trade Act and Subcontracting Act, and recurrence prevention training for violators, all in a bid to strengthen our employees’ commitment to compliance. In the meantime, global compliance training is scheduled to be provided to all staff in September this year, with the same content as that of 2021. Going forward, we will continuously develop various training materials to promote a corporate culture of fair competition.

공정거래 목표 테이블 (구분 (공정거래 교육 시간 확대, CP등급 달성), 단위, 2022, 2023, 2024)
Type Unit 2022 2023 2024
Expansion of training on fair trade* Hours 4,500 4,600 4,700
CP grade results Grade First application for the CP evaluation and acquisition of “A” or higher Acquisition of “AA” or higher in the CP evaluation Maintaining “AA” or higher in the CP evaluation

Performance

1. Risk Assessment

Risk control plans, including training, inspections, and systems, are set up and implemented on a quarterly basis by selecting fair trade regulations highly connected to our business activities and categorizing related risks.

2. Training on Fair Trade

In 2021, new training on the revised Monopoly Regulation and Fair Trade Act (enforced in December 2021) was held for the CEO and executives. Case-specific training was also developed on areas with high risk of violation, enabling all employees to learn about relevant cases , including unreasonable special contracts and written issuance. Expansion of fair trade training helped us record 7,965 hours of training in total, exceeding our initial goal of 7,000 hours.

3. Training on Overseas Anti-corruption Legislation

In 2021, from September to November, global compliance training was held for all employees, including temporary workers. This online training consisted of cases that could actually occur at work, and aimed to enhance employees’ level of understanding and awareness in terms of overseas anti-corruption legislation, as well as SK ecoplant’s global CP. All employees must take this training, and the completion rate for 2021 stood at about 93 percent.

4. CP Guidebook

SK ecoplant’s CP Guidebook was initially established in 2008, and has been regularly revised based on reviews of fair trade regulations related to our business, revisions to legislation, policy changes, and the latest cases of violations. In 2021, we produced and distributed the fourth edition of the CP Guidebook with consideration for all stakeholders – including the government, Biz. Partners, consumers and employees – and reflecting the Monopoly Regulation and Fair Trade Act, Subcontracting Act, Fair Labeling and Advertising Act, and Regulations of Terms and Conditions Act. As the fourth edition includes the Subcontracting Act, effective as of February 2022, and the Monopoly Regulation and Fair Trade Act, effective as of December 2021, as well as a detailed work checklist, employees are able to conduct self-inspections and proactively prevent violations.

자율준수 편람 테이블 (초파, 1차 개정, 2차 개정, 3차 개정, 4차 개정)
First edition First revision Second revision First edition First edition
2008 2011 2015 2017 2021

5. Preliminary Inspection System

Our Compliance Team and Legal Team review work procedures in advance to regularly check and prevent any possibility of violation during everyday work, hence avoiding violations of fair trade and other essential regulations we should follow.

Prevention of bid rigging

Those who intend to attend industry meetings can participate only after declaring their purpose of attendance and the number of attendees, and by obtaining prior approval from the Compliance team leader. Any suspicious behavior must be promptly reported to the Chief Compliance Officer.

  • Fill out the participation report (by representatives of attendees)

    • Proceed the procedure at
      least one day prior to
      attending the meeting
  • Give a final approval after reviewing the appropriateness of the meeting

    • Notice on behavioral guidelines
      when participating in the meeting
    • Propagate the type of unfair
      common actions
  • Report immediately in case of abnormal behaviors

Principles for participating in industry meetings

  • If an industry meeting violates or is likely to violate fair trade laws, it should be immediately reported to the chief compliance officer through the compliance champion.
  • Participants do not discuss collusion-related issues that are prohibited by the Fair Trade Act such as prices (bid price, determination of successful bidders, and bridesmaids) and transaction conditions at industry meetings.
  • As collusion is punishable only by the fact that there was an agreement even without implementing it, participants should clearly express their intention of not participating in the case when agreements or resolutions are expected to violate the Fair Trade Act.
  • Even if attendees express no active consent and stay silence, their action is considered as participation. Therefore, it is necessary to clearly indicate their objection (in case of writing the minutes, they need to require to stipulate their objection), and immediately notify the intention of refusal by leaving the place.
  • Regarding agendas that have not actually been discussed at the industry meeting or that some participants have simply expressed their opinions, writing it in related documents as if the consensus was made in the form of meeting minutes, information reports, and activity reports, this may be mistaken for collusion or used as evidence of collusion. Therefore, it is necessary to record based on the fact and avoid making false reports. (Thoroughly check the meeting documents)
Prior review for compliance with Subcontracting Act

In terms of subcontract agreements, we use a standard contract form and checks for any violations against the Subcontracting Act in on-site manuals concerning special contract conditions.

  • Producing the first draft of
    on-site manual
    (PJT)
  • Reviewing On-site manual
    (Compliance department and legal team)
  • Consulting the final review
  • Carrying out the
    on-site briefing session
    (PJT)
Prevention of theft and misuse of Biz. Partner technical data

An internal system, developed to establish a mandatory procedure for the issuance of request letters of technical data in the contract and bidding phase, has been in operation since 2018. By constantly monitoring through the system, violations such as technology theft and misuse are prevented.

  • Data Request Occurs
  • Preparing technical data
    request form
    (PJT)
  • Reviewing written contents
    (Compliance department)
  • Issuing technical data
    request form
    (PJT)
Prevention of labeling and advertising violations

Our legal team pre-screens advertising materials, such as new catalogs, to prevent violations related to labeling and advertising – such as false advertising.

Prevention of violations concerning the Improper Solicitation and Graft Act

Promotional activities on legal compliance include the production and release of guidebooks, including self-checklists and FAQ casebooks. Also, case studies and the latest issues are shared through an internal online Q&A forum to raise employee awareness.

6. Implementation Review Process

Along with prior inspections, SK ecoplant operates internal inspections to prevent violations in the contract implementation process. Through on-site inspections, we conduct monthly reviews of all our domestic projects with respect to violations covering 10 items within the Subcontracting Act (subcontractor payment, ban on wrongful reduction of payment, etc.) and 4 items within the Framework Act on the Construction Industry (notification of subcontractor issues to the owner, issuance of guarantee for construction machinery payment, etc.). We take corrective or disciplinary action based on the inspection results. In addition, document inspections are carried out to check if all subcontractor payments abide by relevant regulations, and remedial measures are immediately taken if violations are discovered.

Cognitive evaluation

Evaluating field member’s awareness on the Subcontracting Act

  1. Conducting a test on the Subcontracting Act
    (training and re-execution of test for those who did not pass)
Performance evaluation

Evaluating due diligence in implementing the Subcontract

  1. Carry out self-diagnosis after preparing a self-diagnosis check-list
    (current status of issuance of written documents, and payment status)
  2. Conduct on-site inspection by operation team to check violations / PJT Inspection
    (cases)

7. Oath of participation in the CP

I swear and affirm that I will take initiative in participating in the “CP” for company’s fair competition, transparent management, and fostering company culture respecting voluntary compliance with the competition laws, and will do the following

First. I will recognize that Fair Trade Compliance Program is a competitive edge for SK Engineering & Construction Co., Ltd. (“SK ecoplant”) and will actively implement it.
Second. I as an employee of SK ecoplant, will never engage in any collusion and will never take advantage of my transactional position in dealing with subcontractors and vendors, particularly with Biz.partners, and unreasonably request technical data.
Third. I will duly abide by Monopoly Regulation and Fair Trade Act, Fair Transactions in Subcontracting Act, and Improper Solicitation and Graft Act and actively join the activities for prevention of any violations.
Fourth. I will never authorize, affirm, or aid violation of the competition laws and will immediately report to the compliance office whenever violations of the laws or company by-laws with respect to fair trade are suspected.

8. Global Compliance Activities

Management's declaration of Anti-corruption commitment

Through the CEO Message, we expressed the strong will of the management to comply with overseas anti-corruption laws.

Overseas Anti-corruption regulations

We enacted 'Regulations for Compliance with Foreign Corrupt Practices Act' stipulating specific standards and procedures for the company's executives and employees to follow in order to comply with overseas anti-corruption laws. By enacting the 'Joint Venture Rules for Compliance with the Foreign Corrupt Practices Act' and the 'Partner Rules for Compliance with the Foreign Corrupt Practices Act', we are carrying out business activities with our ethical Biz. partners in a transparent and law-abiding manner.

Due Diligence on Biz. Partners

By conducting due diligence on Biz. partners and requesting a written commitment to comply with overseas anti-corruption laws, we minimize the company's risks due to third-party corruption.

Education program

We provide regular overseas anti-corruption training for our executives and employees, and frequently provide differentiated training tailored to business divisions, projects, or positions.

Internal Control System

SK ecoplant obliges any of SK employees to consult the International Compliance Task Force in advance whenever they would involve in a possible violation of the compliance issue in carrying out international projects. Employees can do anonymously report on violations of international anti-corruption laws to the Anti-Corruption Compliance Task Force when they find them.

Compliance Program Current status of the CP operation

Since introduction of the CP in 2008, SK ecoplant has been operating a variety of programs focusing on the eight key elements such as fair-trade education and fair-trade activity inspection, to voluntarily comply with fair trade-related laws.

Compliance Program 운영 현황 테이블 (년도, 월, 내용)
2022 September Distributing relevant cases of Subcontracting Act
CEO MBWA : visit site of LSPC PJT and emphasize ‘Compliance’
Revise company regulations (Ethical Management & whistleblower protection)
Conducting ‘compliance seminar’
Develope new menu for “CP HOT LINE(Online reporting platform to Compliance Officer’s) on intranet
Education ‘Global compliance’
August Issuing regular newsletter (CP Letter), No.5 of 2022
Company-wide announcement of the video “Compliance Officer’s Message : encourage compliance”
Education of CCP qualification course
July Publish an special article about SKEP’s CP performance
Conducting employee survey on CP operation
Producing new CP Handbook : prohibition unfair Special Agreements
CEO’s participation in the ‘Resolving inequality Agreement Ceremony’ and emphasize ‘Compliance’
Reorganize and expand Compliance Office (9 new members)
June Counducting education on cases of compliance with Subcontracting Act (total 1,817 people completed)
Conducting education on cases of Internal Trading (total 92 people completed)
Issuing regular newsletter (CP Letter), No.4 of 2022
May Conducting education for member of the Compliance Office for each BU
April Completion of ‘Statement of Oath for Fair Trade Compliance’ (96% consent rate)
Conducting special training according to the results of inspection of subcontracting status in 2021
Completing the subcontract document inspection (12,895 cases)
Issuing regular newsletter (CP Letter), No.3 of 2022
CEO MBWA : visit site of M15 PJT and emphasize ‘Compliance’
Signing a fair-trade agreement with Biz-Partners
Education on the revised ‘Monopoly regulation and fair trade act’
March Appointing the Chief Compliance Officer through the board of directors’ resolution
Issuing regular newsletter (CP Letter), No.2 of 2022
February Education on the revised ‘Fair transactions in subcontracting act (total 2,801 people completed)
Operating KPI deduction system for violation of compliance
Issuing regular newsletter (CP Letter), No.1 of 2022
January New employee Compliance Program training (total 63 people completed)
Feedback completed according to the results of inspection of subcontracting in 2021
Compliance Program 운영 현황 테이블 (년도, 월, 내용)
2021 July Issuing regular newsletter (CP Letter) on CP operation.
June CEO’s participation in the 'Charity Corporate Agreement Ceremony'
May Completing the subcontract document survey (12,901 cases)
April Reorganizing the Compliance Office under the direct control of the CEO: Education on cases of compliance with Subcontracting Act (total of 311 people completed)
Education on cases of compliance with Subcontracting Act (total of 311 people completed)
Signing a pledge to practice Fair Trade Compliance Program
Signing a fair-trade agreement with Biz-Partners
CEO’s message _ Demand to comply with global Compliance
March Conducting online education for unfair special agreements & written issuance (total of 3,581 people completed)
Appointing the Chief Compliance Officer through the board of directors’ resolution
Launching 'Kakao Talk Open Chat’ for an ethical management reporting channel
Compliance Program 운영 현황 테이블 (년도, 월, 내용)
~2020
Major Activities
2020 Producing the Guide for on-site manual and introducing a review process
TDMS (Technical Data Management System) efficiency
2019 Establishing and operating TDMS (Technical Data Management System)
CEO’s message_ emphasis on CP
2018 CEO’s message_ Calling for CP
2017 CEO’s message_ Calling for CP
3rd Revision of CP handbooks
2016 CEO’s Message_ Calling for CP
1st Request for CP Pledge
CEO’s Message _Calling for CP
2015 2015: 2nd Revision of CP handbooks
CEO’s Message_ Calling for CP
Revision of CP operational regulations and rules
2011 1st revision of CP handbooks
CEO’s Message_ Calling for CP
2008 1st edition of the CP handbook enacted
CEO’s Message_ Calling for CP
Introducing Compliance Program
2007 Establishing regulations and rules for CP operation
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