- Transparent Transaction relationship
- We operates four practices that are financed and recommended by the Fair Trade Commission as corporate rules in order to foster a culture of fair trade with business partners. In addition, we have announced guidelines for prohibiting retaliatory acts such as unilateral restriction or suspension of transactions to our business partners to lay the groundwork for fair partnerships and establish reasonable and transparent business relationships.
- Fair trade compliance program operation
- We operates a fair trade compliance program to establish a fair trade culture based on transparent and legal procedures. In addition, through the Transparent Management Committee under the Board of Directors, we are conducting prior deliberation and resolution on related issues, such as delinquency and unfair internal transactions, and inspection of the implementation of the fair trade compliance program.
- Screening system in contract (Pre/Post)
- Since 2019, We has been operating a pre/post screening system when dealing with business partners, and through this, we are conducting self-monitoring for illegal matters and unfair activities. Prior to the transaction, the transaction is conducted after confirming whether a written contract is issued, unfair subcontracting payment is prohibited, forced goods, etc., and unfair demand for economic benefits is prohibited. Etc.
- Fair Trade Education
- We regularly provide training on subcontracting laws and contract violation cases to departments with high risk and direct interests with partners related to fair trade, such as the purchasing department and factory management team. In addition, we are providing information on procedures and standards to comply with related laws in the business environment by providing training on fair trade, such as the Fair Trade Act and Agency Act, to sales departments.
This regulation legitimately reflects the company's interests in signing contracts between Hyosung TNC (hereinafter referred to as the 'Company') and SMEs (hereinafter referred to as 'Partners') and impedes the principle of contract freedom by abuse of superior bargaining power in transactions It aims to establish a rational and transparent business relationship by preventing it.
2. Scope of application
When signing a contract with a partner company, the company complies with the provisions of this regulation, and establishes and executes detailed standards according to the characteristics of the business.
3. Construction of contract settlement infrastructure
- 3.1 Contract signing method
- Contracts with partner companies are concluded in the form of private contracts, general competition contracts, limited competition contracts, and nominated competition contracts, and the company must select a contract method by setting certain standards according to the characteristics of the transaction. The types of contract signing methods are as follows.
- 3.1.1 In the case of entering into a contract to conclude by arbitrarily selecting a suitable counterpart without using a method such as private contract bidding
- 3.1.2 In the case of concluding a contract by determining a successful bidder after freely entering the competition without limiting the qualifications of the participant in general competitive contract bidding or nominating a participant
- 3.1.3 In the case of concluding a contract after deciding a successful bidder after limiting the qualifications of participants in limited competition contract bidding
- 3.1.4 In the case of nominating a participant in a nominated competition contract bidding and entering into competition, the successful bidder is decided and the contract is concluded
- 3.2 Criteria for selecting a contract method
- 3.2.1 The company must set detailed selection criteria in consideration of the importance of the goods, the number of tradeable partners, the trading experience, and the criteria for the total transaction amount. ※ The criteria presented below can be changed in consideration of the specificity of individual companies.
3.2.1에 대한 표 Many (5 or more) Little (less than 5 companies) height Limited competition contract, nominated competition contract A voluntary contract lowness General competition contract Limited competition contract, nominated competition contract
- 3.2.2 The criteria that a company should refer to when setting detailed selection criteria are as follows. ※ The following standards can be changed in consideration of the specificity of partner companies.
3.2.2에 대한 표 Fastening method Requirements height If there is no free Fanning competing as a case pursuant thereto price hikes of raw materials and other cases not only to an agreement with the current counterparty
- if in the construction difficulty is responsible for nine minutes to let the future facility or finishing work
- art When the person who manufactured or supplied the product directly installs, assembles, or maintains the product
- When the product becomes incompatible when it is manufactured or supplied by someone other than the person who manufactured or supplied the product, when it is virtually impossible to compete
- Patented construction method Or construction based on new technology-In the case of manufacturing or purchasing a product that has received a patent, registered a utility model or registered design, competition may be made due to the technology/service of a specific person or a specific location, structure, quality, performance, efficiency, etc. If not
lowness No special criteria
- Selected in consideration of the type and importance of goods and the number of counterparties
Limited competition contract Contract limit, construction capability, or construction performance of the same type as the relevant construction
Construction contract requiring special technology or construction method
Product manufacturing contract requiring special equipment or technology Product
purchase contract requiring special performance or quality
Service contract requiring special technology
The financial position of the competitor, if necessary to prevent the performance of the contract
When it is desired to limit the qualifications of a competitor, the restrictions and restrictions must be specified in the bid announcement.
Nominated Competition Contract In light of the nature or purpose of the contract, if it is difficult to achieve the purpose of the contract unless there is a person with special equipment, technology, materials, goods, or achievements, and there are no more than 10 bidders, the estimated price is a certain amount (the standard determined by each PG).
In the case of the following construction work, manufacturing consignment, service consignment, when purchasing a product certified for the standard mark or a product certified for the environmental mark
5 or more bidders must be nominated and two or more bidders must apply
(however, if there are fewer than 5 bidders, all eligible bidders are nominated)
- 3.3 Operation of the proposal system for companies wishing to trade
- The company can run an on-site briefing session or a cyber proposal site where companies can make direct proposals according to the characteristics of the business for companies wishing to trade.
- 3.4 Partner Relationship Management (PRM)
- The company establishes a PRM, but seeks win-win between large and small and medium-sized enterprises through open management of partners that include transactions with new companies rather than closed management of partners. In addition, it supports information sharing and cooperation among companies by arranging cyberspaces for business partners or organizing regular meetings.
- 3.5 SME support organization operation
- The Shared Growth Promotion Team, a dedicated support organization in charge of technical support, funding, education, and proposal systems for partner companies, is operated.
4. Matters to be observed when signing a contract
- 4.1 Prior issuance of documents
- 4.1.1 In principle, a contract must be signed in advance, but at a minimum, a contract with a name and seal (including electronic contracts based on an official certificate) must be signed before commencing work for delivery, etc. (in the case of construction, 'delivery', hereinafter the same applies).
- 4.1.2 The contract must include the details of the subcontract contract, such as the subcontract price and its payment method, and the contents stipulated in the enforcement decree, such as adjustment requirements, methods, and procedures for the subcontract price according to changes in raw material prices.
- 4.1.3 In the case of frequent transactions, the basic contract must be issued first, and then the settlement must be issued after settlement for the transaction for a certain period.
- 4.1.4 If changes in volume are clearly expected due to minor and frequent additional work, settlement agreement should be issued immediately after delivery, etc.
- 4.1.5 If additional requests are made within a period significantly shorter than the period permitted by the light trade, the main contents must be agreed in advance in writing.
- 4.2 Determination of unit price by rational calculation method
- 4.2.1 The unit price of a product shall be determined in consultation with partner companies according to a rational calculation method that considers quantity, quality, specifications, delivery date, payment method, material price, labor cost, manufacturing cost, or market price trend, and adds appropriate management costs and profits.
- 4.2.2 During the contract period, when a reason for the change occurs in the initial unit price, an application for unit price adjustment may be filed with the other party, and in this case, it must be re-determined after mutual consultation within 30 days (30 days extension is possible) from the date of application.
- 4.2.3 If the unit price determination is delayed due to a special reason, the temporary unit price determined by consultation shall be applied. In this case, the difference between the temporary unit price and the determined unit price shall be settled retroactively when the determined unit price is determined.
- 4.2.4 The wage rate, which is the standard for cost calculation, is regularly surveyed to present the unit price suitable for the reality, but the wage rate should be determined according to the characteristics of each company, such as work conditions, the size of partner companies, and technology level, taking into account the labor costs of the same industry.
- 4.2.5 When the initially determined unit price changes, the contract shall stipulate the standards and procedures for consultation with partner companies.
- 4.2.6 The reason for the change in unit price (inflation, raw material prices, exchange rates, etc.), consultation period, payment conditions, etc., should be specified.
- 4.3 Clear delivery time
- 4.3.1 Considering the characteristics of each industry, the delivery date suitable for normal practice must be determined after sufficient consultation with small and medium-sized business partners.
- 4.3.2 When signing a contract, the delivery date should be set, and if the delivery date is changed, it should be clarified, and when a shorter delivery time than usual in the name of an emergency order, etc., should be agreed upon through consultation with the partner company.
- 4.3.3 If the supplier suffers damage due to unreasonable delay or rejection of receipt, even though there is no reason to be attributed to the supplier, compensation shall be made.
- 4.4 Objective inspection criteria
- 4.4.1 In the inspection of deliverables, etc. (in the case of construction, the same applies to 'finished products'), objective, fair and reasonable standards and methods of inspection must be determined in consultation with partner companies.
- 4.4.2 When there is delivery, etc., the receipt shall be immediately issued even before the inspection, and the inspection shall be carried out promptly in accordance with the pre-determined inspection regulations and procedures.
- 4.4.3 Except where there is a justifiable reason, the inspection result shall be notified within 10 days from the date of receipt of the delivery product from the supplier.
- 4.4.4 Parts ordered before or during the inspection should be managed with the care of a good manager.
- 4.5 Determine Reasonable Payment Due Date
- 4.5.1 In the case of consignment of manufacturing, etc. to a partner company, the date of receipt of the delivery, etc. (in the case of construction, the date of receipt, in the case of a service, the date of completion of the entrusted service; If the date of issuance of tax invoices is determined more than once, it refers to the specified date (the same shall apply hereinafter) and the payment shall be made by the payment due date as short as possible within 60 days.
- 4.5.2 In the case of consignment of manufacturing, etc. to a partner company, and when completion of manufacturing, repair, construction, or service performance is received from the client, 15 days from the date the payment is received (the payment date In this case, payment must be made within the payment due date).
- 4.5.3 15 days from the date of receipt of the payment of a substantial amount to the person who performed the manufacturing, repair, construction or service by the partner company when receiving payment due to the progress of manufacturing, repair, construction or service performance. In the case of arrival, payment must be made within the payment date).
- 4.5.4 When paying the price, it must be paid in excess of the cash ratio received from the client in connection with the consignment of the manufacturing, etc.
- 4.5.5 When payment is made by bills, the bills must be issued within the payment period (from the issue date to the maturity date) of the bills issued by the client in connection with the consignment of the relevant manufacturing, etc.
- 4.5.6 In the case of payment of the bill as a bill, the bill must be discountable at a financial institution established in accordance with the law, and a discount fee for the period from the date the bill is issued to the maturity date of the bill (the discount rate determined and notified by the FTC) Must be paid on the day of issuing the draft.
- 4.5.7 If bills are issued within 60 days from the date of receipt of the deliverables, etc., discount fees for the period from the date of receipt of the deliverables, etc. to the expiration date after the date of receipt of the deliverables, etc. shall be paid within 60 days from the date of receipt.
- 4.5.8 In the case of payment using a bill alternative payment method, the payment date (in the case of a corporate purchase-only card, the date of approval for payment, the date of delivery, etc. in the case of a credit receivable secured loan, and the date of settlement of the purchase amount in the case of a purchase loan. Fees (including loan interest) for the period from (referred to) to the repayment date of subcontracting payments must be paid on the payment date.
- 4.5.9 In the case of payment using a bill substitute payment method within 60 days from the date of receipt of the delivery product, etc., the fee for the period from the date of receipt of the object, etc. to the repayment date of the subcontract price after the date exceeding 60 days from the date of receipt of the delivery product, etc. Payment must be made to the supplier within one day.
- 4.5.10 If payment is made for more than 60 days from the date of receipt of the delivery, etc., interest at the interest rate determined and notified by the FTC shall be paid for the excess period.
- 4.6 Reasonable return processing for defects found after delivery, etc.
- The subject of identification of the consignor, the type of the consignor, and the corresponding burden of responsibility shall be stipulated, and the returned goods shall be processed by agreement between the parties
- 4.7 Cancellation or termination of the contract
- 4.7.1 The reasons for cancellation or termination of the contract shall be determined by agreement between the parties, and classified into'if possible without a maximum' and'if a maximum is required', but in the case of cancellation or termination, a written notice shall be notified without delay.
The possible cases without the best are as follows.
- ① When the other party receives a transaction suspension from a financial institution or a business cancellation or business suspension from the supervisory authority
- ② When the other party decides to dissolve, transfer business or merge with another company, or both parties acknowledge that it is difficult to implement the contents of the basic contract or individual contract due to a disaster or other reason.
When the maximum is necessary, it is as follows, and in this case, the other party is given a period of at least one month to maximize the performance, and when the performance fails within that period, it may be canceled or terminated.
- ① In case the other party violates the important contents of this contract or individual contract, the company receiving the delivery delays the performance of the matters necessary for the production of the ordered parts without justifiable reason, causing an obstacle to the work of the partner company
- ② When it is recognized that delivery, etc. within the delivery date is difficult due to a supplier's refusal to manufacture the ordered parts without justifiable reason or delayed start-up
③ In case there is a considerable reason that it is admitted that the contract contents cannot be executed smoothly due to the lack of technology,
production and quality control capabilities of the partner company
※ In the case of signing a contract, the following matters other than the above matters shall be recommended as necessary.
- - Technical data deposit system
- Use of the'Technical Data Deposit System' to deposit technical data to a third party to protect the source technology of partner companies.
- - Improvement for occasional orders
- In case of occasional orders that result in business instability of business partners, we present a predictable quantity for each quarter, if possible.
5. Prohibited matters when signing a contract
- 5.1 Failure to issue or preserve documents
- 5.1.1 Issuing a document that does not include the relevant matters for matters that are difficult to determine at the time of consignment without a justifiable reason, and issuing without specifying the reason for which the matters have not been determined and the scheduled date for determining the matters.
- 5.1.2 Delayed issuing or not issuing a new document to a partner company despite the fact that the relevant matters have been confirmed after issuing a document without some details.
- 5.1.3 Regarding the contents of oral consignment (order), a written reply of the intention of approval or denial within 15 days after receiving a request for confirmation of the consignment details such as the contents of the work consigned from the partner company, the subcontract payment, and the consignment date and time, etc. Do not do
- 5.1.4 Failure to sign or seal the contract manager's signature while replying to the consent of the consignment or denial of the contents of the oral consignment (order)
- 5.1.5 Failure to issue specific additional contracts or work orders, etc., even though the scope of additional work is divided and the amount is significant.
- 5.1.6 In the case of construction work, the amount of construction added or changed during the construction process was proved, but there was a dispute between the parties in settlement, and the change contract or settlement was not issued.
- 5.1.7 Any act of disposing of legal documents within 3 years without preserving them for 3 years.
- 5.1.8 The act of preserving documents (documents) for 3 years from the date of transaction termination, but by writing false documents (documents) or documents with false details
- 5.1.9 Bid details. Failure to preserve documents related to subcontracting payment decisions, such as site manuals and specifications in case of successful bidder's decision, estimate, and construction consignment
- 5.2 Unfair subcontracting payment decision
- 5.2.1 Deciding the subcontract price by lowering the unit price at a uniform rate without justifiable reason.
- 5.2.2 The act of unilaterally allocating a certain amount of money regardless of whether it is a request for cooperation, etc., and then determining the subcontracting amount by subtracting the amount.
- 5.2.3 The act of discriminating against a specific partner company without justifiable reason to determine the price, or unilaterally determining the price at a low unit price without agreement with the partner company.
- 5.2.4 The act of deceiving a partner company by making an error about the terms of the transaction such as the amount of order or by showing a false estimate or an estimate of another business operator and using it to determine the price.
- 5.2.5 In concluding a contract through a private contract, the act of determining the price with an amount lower than the sum of the values of the direct construction cost items without justifiable reason.
- 5.2.6 In concluding a contract by competitive bidding, the act of determining the price at an amount lower than the amount bid at the lowest price without any justifiable reason.
- 5.2.7 The act of deciding the price by lowering the unit price uniformly without objectively valid reason for lowering the unit price, such as a decrease in the price of materials and labor
- 5.2.8 The act of discriminating against a specific partner company and deciding a lower price even though there is no difference in payment conditions, transaction volume, and difficulty of work.
- 5.2.9 The act of making an estimate based on the premise of placing a large amount of order and then determining the price based on the estimated price while actually placing a small amount of order.
- 5.2.10 The act of deciding the price after consigning manufacturing, etc. without setting the price, and then lowering the price normally paid without consulting a partner company.
- 5.2.11 The act of requesting and receiving technical data related to delivery, providing it to another business operator, and reducing the price based on the quoted price of another business operator.
- 5.2.12 An act of making a lower execution budget than the original contract price and deciding a lower price because the construction must be within the same budget.
- 5.2.13 The act of determining the price significantly less than the price normally paid for reasons such as exports, special discount sales, prizes, samples, etc.
- 5.3 Request for oral proposal presentation or request for development
- The act of canceling development after completion of equipment or preparation for production, or requesting a reduction in the unit price suggested upon oral request
- 5.4 Unfair business intervention
- 5.4.1 Interfering with human resources by obtaining instructions or approval from the company in the appointment or dismissal of executives and employees by a partner company, or by hiring a specific person against the intention of the partner company.
- 5.4.2 Intervening in subcontracting transactions, restricting the contents of subcontracting transactions, such as selection and contract conditions, regardless of the purpose of the subcontracting transaction, such as maintaining the quality of the products entrusted by the company and whether or not to deliver on time
- 5.4.3 The act of mobilizing on-site workers to perform construction despite the normal construction underway.
- 5.4.4 Limiting the scale of production items and facilities of a partner company or preventing a partner company from transacting with the company or its affiliates' competitors.
- 5.4.5 The act of requesting and providing technical data related to delivery to suppliers without justifiable reason.
- 5.4.6 Forcing business partners to participate in special sales events such as sales of prizes and special discounts, or forcing the purchase of goods or gift certificates.
- 5.5 Non-reflection of additional construction cost (in case of construction-related contract)
- 5.5.1 The act of preventing the original business operator from requesting the settlement of additional quantities when additional quantities are generated after construction is completed.
- 5.5.2 The act of borne the installation and operation cost of the supervisor's office to the contractor, or prohibit any contract changes due to wage increases or price fluctuations after the initial contract.
- 5.5.3 Delays and suspension of construction due to construction circumstances or suspension of construction due to natural disasters and rainy seasons due to weather conditions are excluded from the construction period, and additional contracts are not accepted for this reason.
- 5.6 Micro-adjustment of subcontract payments due to design changes, etc.
- 5.6.1 An act of not paying the additional amount even after receiving an additional amount from the client due to design changes or changes in economic conditions, or paying less than the received rate or contents.
- 5.6.2 The act of not increasing or decreasing the contract amount by the date of exceeding 30 days or adjusting the amount for more than 30 days even after receiving the adjustment of the contract amount due to changes in design or economic conditions from the client
- 5.6.3 After 15 days from the date of receipt of the additional amount due to design change or economic conditions, etc. from the client, the payment is paid in cash or by using a bill or bill substitute payment method, and the delayed interest, bill discount, and commission for the excess period are paid. Act not paid
- 5.6.4 The act of not notifying the business partner of the reason and details of the increase or decrease within 15 days from the date of receipt of the increase or decrease of the contract amount from the client due to design changes or changes in economic conditions, etc.
- 5.7 Non-adjustment of subcontract payments due to changes in raw material prices
- 5.7.1 Failure to proceed with practical consultation procedures such as holding a meeting, exchanging opinions, and presenting a unit price adjustment plan after not responding to the request for consultation or notifying that consultation will commence.
- 5.7.2 An act in which a person in charge with substantial unit price adjustment authority fails to engage in consultation even though 30 days have passed since the request for consultation.
- 5.7.3 The act of repeatedly presenting a price that the other party cannot accept without objective grounds, such as market research for unit price adjustment, cost calculation, etc.
- 5.8 Exclusive Transaction Request Act
- Preventing business partners from transacting with themselves or with the business they designate (except for cases where an exclusive transaction is agreed with the business partner because of joint technology development with the business partner) 5.9 Complaint handling One-sided transfer The act of taking all economic and administrative responsibility for the occurrence of various civil complaints, and deducting all costs after the company handles the civil complaint if the civil complaint is not resolved and the possession of dispute continues.
- 5.9 Complaint handling unilateral transfer
- The act of taking all economic and administrative responsibilities for various civil complaints during construction, and deducting all costs after the company handles the civil complaint if the complaint is not resolved and the possession of dispute continues.
6. Faithful execution of contracts in accordance with contracts and related laws.
- 6.1 Transactional parties must comply with the following matters in contract execution.
- 6.1.1 Compliance with relevant laws and regulations such as the Civil Act The principle of good faith, the Subcontract Act, and the Fair Trade Act, etc., are complied with, but any disputes must be resolved by written data.
- 6.1.2 In the case of a unit price reduction due to a sufficient agreement in advance, a decrease in the price of raw materials, and an increase in the quantity of raw materials issued in writing , a reasonable basis for the extent of the unit price reduction due to the increase in quantity must be presented and resolved.
Adjustment of price due to drug change If additional costs are required due to contract changes, such as request for additional specifications, the payment must be resolved.
The contract is canceled or terminated in accordance with the terms and conditions of the contract, but the cancellation of the contract or the suspension of the transaction that does not correspond to the reason for the cancellation is notified in writing to the partner company as soon as possible 2-3 months in advance.
- 6.2 Transaction parties should avoid the following matters in the execution of the contract.
Unfair rejection of receipt
- ① The act of refusing to receive the consignment despite the fact that it is difficult to determine whether the contents of the consignment are different from the consignment details of the delivery, construction, etc. due to unclear information
- ② The act of refusing to receive the goods that have already been entrusted due to claims of the orderer, foreign importer, or customer, or due to poor sales.
- ③ The act of refusing to receive due to delay in delivery even though delivery or construction is impossible due to the late supply of raw materials or construction materials that are supposed to be supplied.
- ④ An act of applying a standard higher than the normal standard even without setting the inspection standard
- ⑤ Even if the inspection standards are set, the contents are unclear or the act of refusing to receive them by applying a higher standard than the inspection standards set in the original contract.
- ⑥ The act of refusing to receive receipt without justifiable reason, such as lack of storage location, even though there is a request for delivery from a partner company.
- ⑦ An act of voluntarily refusing to receive an item that has already been ordered because it is judged that stable supply is difficult due to the bankruptcy of a partner company.
- ⑧ The act of entrusting manufacture of several items and refusing to receive other items due to defects in some items, or rejecting receipt due to cancellation of the order or suspension of order by the orderer
- ① The act of returning goods due to cancellation of orders from the counterparty or changes in economic conditions
- ② The act of unfairly determining the rejection by unclearly determining the standard and method of inspection and returning it
- ③ The act of returning the supplied raw materials even though they were judged as rejected due to poor quality
- ④ The act of returning goods for this reason despite the delay in delivery due to the delay in the supply of raw materials
- ⑤ Returning goods that have already been received due to claims of the orderer, foreign importer, or customer, or due to poor sales
- ⑥ In the case of consigning the inspection to a third party other than the partner company, returning it even though the supplier has completed the inspection by the third party and delivered it.
- ⑦ The act of returning a product for reasons of delivery or air delay after receiving it even though there was a delay in delivery or air by a partner company.
Unreasonable price reduction
- ① The act of reducing the price for unreasonable reasons such as a request for cooperation after consignment, cancellation of an order from a counterparty, fluctuations in economic conditions, etc. without specifying the conditions for reducing the price when consigning
- ② When an agreement on unit price reduction is established, the act of reducing the price by unilaterally applying it retrospectively to the part entrusted before the agreement is established.
- ③ The act of excessively reducing the price due to payment in cash or before the payment date
- ④ The act of unilaterally reducing the price due to the fault of a minor partner company that does not substantially affect the occurrence of damage
- ⑤ An act of deducting an amount more than the appropriate purchase price or consideration for use in cases where the company buys goods, etc. necessary for manufacturing, repair, construction, or service performance, or when the company's equipment is used.
- ⑥ The act of reducing the price due to the fact that prices or material prices at the time of payment have fallen from the time of delivery, etc.
- ⑦ An act of unreasonably reducing the price due to unreasonable reasons such as a business deficit or a reduction in sales price
- ⑧ The act of reducing indirect labor costs, general management costs, profits, and VAT different from the original contract
- ⑨ The act of incurring employment insurance premiums, occupational safety and health management fees, and other expenses to be borne by the original business operator in accordance with the Employment Insurance and Industrial Accident Guarantee Insurance Act on the Collection of Insurance Premiums, etc.
- ⑩ In the event of a decision to supply materials and equipment, the act of delaying the supply, or setting a virtually unreasonable delivery date or time and reducing the amount due to failure to deliver or complete within this period
- ⑪ The act of reducing the subcontract price that has already been determined for the reason of continuing ordering, or for the specific details of manufacturing or construction after contracting with the total amount
- ⑫ The act of reducing the price different from the original contract due to the fact that the order was received at a low price.
- ⑬ The act of reducing the price as a result, such as changing the contract, even though the contents and conditions of the consignment do not change.
- ⑭ The act of reducing the price by transferring foreign exchange loss, etc. to a partner company different from the original contract terms
Unfair demand for economic benefits
- ① An act of requesting economic benefits such as sponsorship funds, incentives, and support funds on the condition of commencement of transactions or large-scale transactions
- ② An act of requesting economic benefits such as sponsorship, incentives, and support for unreasonable reasons such as deteriorating profits or business conditions
- ③ Requesting economic benefits such as sponsorship money, incentive money, and support funds, even though there is no legal obligation to be borne by other business partners
- 6.2.5 Transfer of expenses due to the company's cause The act of transferring expenses due to an increase in the company's wages and delays in the internal inspection procedure
- 6.2.6 Unlike the initial contract, the act of paying a fixed price as an item contrary to the intention of the partner company and demanding that it be accepted
- 6.2.7 Retaliatory measures Acts that limit the number of cycles or cause suspension of transactions or other disadvantages for reporting a subcontracting law violation to the FTC by a partner
- ① An act of substantially evading the application of the subcontracting law by a detour method in relation to the subcontracting transaction.
- ② The act of recovering the payment or deducting it from the delivery price after paying the price, etc. to the partner company in accordance with the corrective measures of the Fair Trade Commission.
- ③ The act of uniformly lowering the unit price by the corresponding amount after paying the bill discount fee and delayed interest to the partner company.
Forced purchase of goods, etc.
- ① An act of forcibly selling or using products or services of the company, affiliates, or specific companies to partner companies without justifiable reason.
- ② An act of unjustly forcing the purchase of materials used by a supplier at the construction site against the will of the supplier, or forcing them to purchase and use the goods or equipment designated by the supplier without justifiable reason.
- ③ An act of requesting a purchase again even though the partner company has indicated that there is no intention to purchase without a justifiable reason, or even if there is no indication of intention, it is clearly recognized that there is no intention to purchase.
Request for unfair payment for purchase of goods, etc
- ① An act of having a partner company buy goods necessary for delivery, etc. from the company or use company equipment, and to pay all or part of the purchase price or usage price before the payment date.
- ② An act of having a partner company buy goods necessary for delivery, etc. from the company or use company equipment, etc., and paying it under conditions that are significantly more disadvantageous than those that the company purchases, uses, or supplies to a third party.
Provide technical data
① An act of forcing a partner company to provide the following technical data to the company or a third party without justifiable reason.
- - Data on how to perform manufacturing, repair, construction, or service kept confidential by considerable effort.
- - Information related to intellectual property rights such as patent rights, utility model rights, design rights, and copyrights.
- - Other technical or management information that is useful for business activities and has independent economic value.
- ② An act of using technical data acquired from a partner company for the company or a third party.
- ① An act of forcing a partner company to provide the following technical data to the company or a third party without justifiable reason.
1. This regulation is enacted and enforced from October 01, 2012.
1. This regulation is revised and effective from April 01, 2014.
The purpose of this regulation is to improve transparency and fairness in the process of selecting and operating business partners, contributing to establishing a fair subcontracting transaction order, and defining matters necessary for efficient business partner operation.
2. Scope of application
When selecting and operating a partner company, the company follows what is specified in this regulation, and establishes and implements detailed standards according to the characteristics of the business.
3. Construction of contract settlement infrastructure
- 3.1 The term “cooperating company” is a business that is scheduled to be or is trading as a target company for manufacturing, construction, and service consignment transactions, and includes general consignment businesses as well as contractors prescribed by the Subcontract Act.
- 3.2 “Pool” refers to a group of suppliers registered, managed and operated according to the company's standards.
- 3.3 “Partner selection” means registration in the supplier pool.
- 3.4 The term “operating partner companies” means managing the pool of partner companies according to certain standards, such as giving opportunities to initiate transactions and canceling registrations for companies selected and registered as partners.
4. Disclosure of supplier selection criteria, procedures and results
- 4.1 Matters on the selection criteria and procedures for partner companies must be disclosed on the website or at each business site for at least 15 days 30 days before the expiration of the supplier registration validity period or 30 days before the start of the registration (including renewal registration) examination.
- 4.2 In the case of changes to the supplier selection criteria, individual notification of the matters in writing (including electronic documents, as follows) 45 days in advance to the companies subject to renewal registration shall be made.
- 4.3 The results shall be individually notified in writing within 15 days from the date of selection of the partner company, and the reasons for the non-selection shall be notified in writing.
5. Specificity and clarity of selection criteria
The company shall specify the criteria for selecting a partner company in a specific and clear manner so that there is no concern for arbitrary interpretation.
6. Fairness of selection criteria and procedures
When establishing the selection criteria for partner companies, the company should ensure that the proportion of the reflected weight for each specific selection criteria is appropriate※ Fair selection criteria and application examples
※ Unfair selection criteria and application examples
- - Whether the relevant professional license is held in accordance with the relevant laws and regulations
- - Financial soundness of the target company by an external professional evaluation agency
- - Whether there is any violation of related laws such as the subcontracting law for a certain period of time
- - Technology development performance and equipment possession related to the transaction
- - In the case of selection criteria based on whether the company is related to retired employees, school ties, delays, relatives, etc.
- - In the case of obstructing the entry of new companies due to excessive distribution of the past transaction performance standards.
- - If the entry of a new company is hindered due to excessive distribution of the past transaction performance standards, etc., if a disadvantage is given due to a transaction with a competitor or registration of a duplicate supplier.
7. Fair opportunity to open trade
For businesses selected and registered as partner companies, the opportunity to participate in bidding for initiating transactions should not be restricted or discriminated against without justifiable reasons.
8. Disclosure of standards and procedures for canceling registration of business partners
The company shall disclose the criteria and procedures for selection of business partners, and at the same time, the criteria and procedures for cancellation of registration must be disclosed to the workplace and electronic media for at least 15 days.
9. Specificity and clarity of the criteria for cancellation of registration of partner companies
The company shall make the criteria for cancellation of registration of partner companies concrete and clear so that there is no concern for arbitrary interpretation.
10. Fairness of standards and procedures for canceling registration of business partners
Criteria for cancellation of registration of suppliers should be established based on objective and appropriate reasons.
※ Examples of legitimate cancellation criteria and application
※ Unfair registration cancellation criteria and application examples
- - In the event of a serious and obvious reason attributable to the contractor in connection with the subcontracting transaction.
- - In case normal management is impossible due to bankruptcy, suspension of business, closure of business, etc.
- - Violation of related laws such as subcontracting law.
- - In case the license is revoked in accordance with relevant laws and regulations.
- - In case of cancellation of registration due to non-cooperation with the original business operator's unilaterally proposed matters such as cost reduction plan, delivery unit price reduction request, etc.
- - In case of cancellation of registration due to duplicate registration as a partner company of a competitor
- - Contractors have, despite original operators US orders or non-commissioned by deal if you perform the registration canceled by the reason you do not is no reason attributable considerable time trading performance by dropping in (but suppliers are legitimate transactions initiated competition If not, registration can be canceled)
- - In case of cancellation of registration due to non-compliance with the original company's instructions for the personnel of the partner company's employees
- 10.2 In the case of canceling the registration of a partner company, the reason for the cancellation must be notified in writing, and the relevant business operator must be able to raise an objection within 15 days or more from the date of notification, and the registration is canceled due to reasons attributable to the company. In such cases, re-registration measures must be taken immediately.
11. Handling of violations
If the company's executives and employees cause losses to the company by violating this regulation intentionally or by gross negligence, it may be referred to the Compensation and Penalty Committee.
1. This regulation is enacted and enforced from October 01, 2012.
2. This regulation will be revised and effective from April 01, 2014.
Internal Review Committee
This regulation contributes to the establishment of a fair subcontracting order and establishes a reasonable and transparent transaction relationship by defining a series of business procedures for the operation of the internal review committee to deliberate on the fairness and legality of subcontracting transactions between the company and business partners. It aims.
2. Appropriateness of the composition of the internal review committee
- 2.1 The internal deliberation committee consists of three or more executives and employees, including the executives in charge of subcontracting affairs of the company.
Among the members of the chairman and secretary internal review committee, the subcontracting officer is the chairman, and the purchasing team leader is the secretary.
Chairperson: Subcontract purchasing officer Member
: Purchasing team leader or subcontract-related team leader such as technology or quality
Secretary: Purchasing team leader or a person appointed by the chairperson
3. Effectiveness of internal deliberation committee operation
The deliberation agenda of the internal review committee is determined as follows.
- 3.1 Prior deliberation on whether the standards and procedures for registration and cancellation of business partners are appropriate.
- 3.2 Deliberation on an objection to the non-selection of a partner company or cancellation of registration.
- 3.3 If necessary, you can listen to the opinions of related suppliers, and in this case, anonymity is guaranteed.
Preliminary deliberation on the fairness of the process of signing a contract with a contract amount of over 2 billion won and determining the price and legality of subcontracting laws※ Example of preliminary deliberations related to the subcontracting law Whether to comply with the obligation to issue a written contract
- - Violation of the prohibition of unfair subcontracting payment decision.
- - Violation of prohibition of forced purchase of goods, etc.
- - Violation of prohibition of unfair demand for economic benefits.
4. Operation of the internal review committee
- 4.1 The internal deliberation committee must be held regularly once a month, and when a pending issue arises, it can be held at any time, and a written resolution can be made if necessary.
- 4.2 The holding and proceeding of the internal review committee is supervised by the secretary.
- 4.3 The secretary shall notify each deliberation committee member of the date and place of the deliberation committee meeting 7 days before the deliberation committee is held.
- 4.4 Each deliberation member shall notify the secretary of the deliberation agenda 3 days before the deliberation committee is held.
- 4.5 The subcontracting and purchasing departments of the company notify the secretary of the deliberation agenda for pricing decision 3 days before the deliberation committee is held.
- 4.6 The secretary summarizes the deliberation agenda 2 days before the deliberation committee is held, reports it to the chairman, and informs each deliberation member.
Conducted internal review committee
- 4.7.1 The deliberation committee members deliberate whether they agree or disagree with the proposed deliberation agenda.
- 4.7.2 The resolutions of the internal review committee are passed and rejected on a unanimous basis.
- 4.7.3 If objections arise during deliberation, re-deliberation is conducted after supplementing related data.
- 4.7.4 Even at the time of reconsideration, if a disagreement arises, the majority vote and rejection are decided.
- 4.8 The secretary summarizes the results of the deliberation and informs each deliberation member after an internal report.
- 4.9 Each deliberation committee member takes necessary measures in the relevant department on the matters passed or rejected.
5. Document storage
Documents related to deliberation results and actions taken by the internal deliberation committee shall be kept for at least 3 years from the end of deliberation.
Check Sheet for Legality Judgement of Each Contract with Subcontractor
하도급 개별계약 적법성 심의 Check Sheet Site Name (Code No) Date Product name Reviewer Necessary to Review Judge Corrections Appropriate Inappropriate Issuance of written contract Obligations for legal entries in the contract (contract amount, consignment date, consignment content, delivery date/place, payment method, payment date, inspection method) Prohibition of unfair subcontracting payment The act of discriminating against a specific partner company without justifiable reason to determine the price or unilaterally determining the price by a low unit price without agreement The act of deceiving a partner company by causing an error in terms of transaction such as order quantity, or by showing a false estimate or an estimate of another business operator, and using it to determine the price The act of determining the price in an amount lower than the sum of the values of the construction cost items directly without justifiable reason in concluding a private contract In concluding a contract by competitive bidding, the act of determining the price at an amount lower than the amount bid at the lowest price without any justifiable reason. The act of determining the price based on the quoted price while placing a small order in reality after making a quotation based on large orders. The act of deciding the price after consigning manufacturing, etc. without a fixed price, and then lowering the price normally paid without consulting a partner company. The act of requesting and receiving technical data related to delivery, providing it to another business operator, and reducing the price based on the quoted price of the other business operator. The act of making a lower execution budget than the original contract price and setting the price low because the construction should be within the same budget. Prohibition of forced purchase of goods, etc. The act of discriminating against a specific partner company without justifiable reason to determine the price or unilaterally determining the price by a low unit price without agreement Unjustly forcing the purchase of materials used by the supplier at the construction site against the will of the supplier, or forcing them to purchase and use the goods or equipment designated by the supplier without justifiable reason. Prohibition of unfair demand for economic benefits Requesting economic benefits such as sponsorship money, incentive money, and support money without justifiable reason
1. This regulation is enacted and enforced from October 01, 2012.
2. This regulation will be revised and effective from April 01, 2014.
Preservation of document
The purpose of this regulation is to comply with laws and regulations and establish a fair subcontracting transaction order by determining matters that the company must comply with in the process of signing subcontracting contracts and issuing and preserving documents with business partners.
2. Matters concerning issuance of various documents
The company shall issue a document in the process of concluding and fulfilling the subcontracting transaction contract as stipulated below. Documents subject to issue are as follows.
발급 대상 서면 표 No. Document to be issued Related Article in Law 1 Basic contract (including additional and modified contracts) Article 3 of the Subcontracting Act 2 Subcontract confirmation document Subcontracting Act Article 3, Clause 6 3 Written reduction Article 11 of the Subcontracting Act 4 Technical data request form Article 12-3 of the Subcontracting Act 5 Certificate of Receipt Article 8 of the Subcontracting Act 6 Notification of inspection results Article 9 of the Subcontracting Act 7 Notice of contract change details
3. Issuance of subcontracting contract
- 3.1 Occurrence of obligation to issue documents (Article 3 of the Subcontract Act)
- 3.1.1 When the company consigns the manufacturing, repair, construction, or service performance of the object, etc. to the contractor (hereinafter referred to as'manufacturing, etc.') under the Subcontracting Act, the contractor agrees with the contractor the contents of the object, quantity, unit price, etc. After that, the subcontracting contract must be issued in writing.
- 3.1.2 In the event that the original contract is changed due to design change or consignment of additional construction, an additional or modified document must be prepared and issued unless there are special circumstances.
- 3.2 Written information
- In the written subcontracting contract, the contents consistent with the actual transaction must be reflected, and in principle, the following items must be entered.
- 3.2.1 Consignment date, contents of consignment object, quantity and unit price, time and place of delivery, delivery or provision of the object, etc., method and timing of inspection of the object, subcontract payment (advanced payment for construction work, completion payment, completion payment, etc.) and payment method , Payment due date
- 3.2.2 When the company intends to provide raw materials, etc. for the manufacture of the object, etc. to the partner company, the name of the raw material, quantity, date of provision, payment method and payment date
- 3.2.3 Requirements, methods, and procedures for adjustment of subcontract payments according to price fluctuations of raw materials, etc.
- 3.3 When issuing documents
- 3.3.1 In principle, the company shall issue a written contract without delay after agreeing and determining the main contents of the consignment contract with the supplier.
Even if there are circumstances in which it is difficult for a company to issue a written contract to a partner company without delay, the contract must be issued in writing at least until the deadline for each of the following categories unless there is a special reason.
- - Manufacturing consignment: Before a partner company starts work for delivery of goods, etc.
- - Repair consignment: Before the business partner starts the contracted repair operation.
- - Construction consignment: before the contractor begins construction.
- - Service consignment: Before the partner company starts to perform the service for which the contract was signed.
- 3.4 Written issuance method
- 3.4.1 The company shall issue a contract signed by the company or its representative (including a certified electronic signature pursuant to Article 2, No. 3 of the Digital Signature Act) or signed and sealed to the supplier.
- 3.4.2 If a document is issued without the signature or seal of the subcontracting transaction party, the document is not issued.
Documents can be issued by providing electronic records as follows :
- - A method of transmitting through a telecommunication line and recording in a file provided in an electronic recording device used by a supplier (e.g., e-mail)
- - A method of providing it to a supplier through a telecommunication line and recording it in a file provided in an electronic recording device used by the supplier (e.g., web)
- - How to issue electronic records such as floppy disks, CD-ROMs, etc. to contractors
- 3.5 Exceptions
- As exemplified below, if a document is issued in a reasonable manner consistent with the actual subcontracting transaction, the document issuance obligation may be fulfilled differently from the above written matters and the date of issuance.
- 3.5.1 If there is a matter that is difficult to determine at the time of entrustment, the Company may issue a written document not containing the relevant matters only if there is a justifiable reason for matters that are difficult to determine at the time of entrustment. However, even in this case, the reason for which the relevant matters are not determined and the scheduled date for which the matters are decided shall be specified, and when the matters are confirmed, a document stating the matters shall be issued without delay.
- 3.5.2 Subcontracting Transaction In the case of frequent transactions in reality, and there is no major problem in establishing and maintaining the contract in light of the characteristics of the business or reality, the basic contract was issued and the order was placed by fax, other electrical or electronic forms, and the order contents are objective. If it is obvious, some of the legal information is omitted in the contract, but if it is possible to identify the omission with the quantity table and work order provided for each case, the basic contract is sent and the contractor submits it to the original business while manufacturing the goods for export When it is possible to substitute individual contracts for offer sheets.
- 3.5.3 When the contract is replaced by a settlement agreement immediately after construction is completed for a type of work that is clearly expected to change in quantity due to minor and frequent additional work in connection with the consignment of additional construction.
In the following cases, the document is not issued.
- ① In case the scope of additional work is classified and the amount is considerable, but a specific additional contract or work order has not been issued.
- ② When the amount of construction added or changed in the construction process is proved, but there is a dispute between the parties and the change contract or settlement statement is not issued.
- 3.6 Estimation of subcontracting contract
- 3.6.1 Where the company does not issue a written subcontract agreement containing the matters specified in Article 3, Paragraph 2 of the Subcontracting Act while consigning manufacturing, etc. You may request confirmation by notifying a written document stating the contents of the work received, the subcontracting price, the date and time of the consignment, the name and address of the company and the business partner, and other contents entrusted by the original business. In this case, the partner company uses [Form 1] “Request for Confirmation of Consignment Details” in the 「Guidelines for Fair Subcontract Transactions」 in standard format.
- 3.6.2 Within 15 days after the company is notified of the request for confirmation of the contents of the consignment from the supplier, the company shall respond in writing to the supplier with the intention of acknowledging or disapproving the contents. In this case, the company uses [Form 2] “Respond to request for confirmation of consignment details” in the 「Guidelines for Fair Subcontract Transactions」 in standard format.
- 3.6.3 If the company does not send a reply within 15 days, it is presumed that there was a consignment according to the contents notified by the contractor, except in cases where it is impossible to reply due to a natural disaster or other incident.
- 3.6.4 The written notification of the request for confirmation of the consignment details and a written reply to the request for confirmation of the contents of consignment shall be sent to the address of the company and the contractor, but by e-mail with proof of contents or other methods to objectively confirm the contents and receipt of the notification and reply (e-mail Is excluded).
- 3.6.5 In the case of a joint contract with a joint implementation method, all joint contractors sign a subcontract contract in joint life and issue a document, or individually sign a subcontract contract for each part of the contract, or the representative may sign a subcontract contract on behalf of the joint contractor. You can conclude and issue a document.
4. Issuance of subcontract payment reduction documents
- 4.1 Occurrence of obligation to issue documents (Article 11 of the Subcontracting Act)
- 4.1.1 If the company does not pay the subcontracting price specified in the “consignment” of manufacturing, etc. to the partner company as it is, and intends to pay it by deducting the amount, a written reduction shall be issued to the partner company.
- 4.1.2 When subcontracting contracts are concluded, transactions are frequent, and the basic contract contains general details related to transaction conditions, specifications, materials, manufacturing processes, such as payment, transportation, inspection, and returns, and details related to subcontracting payments such as unit price and quantity are special contracts or orders. If the price is determined based on a separate special contract or order details by entrusting it by means of a special contract or order, the point at which the relevant special contract or order details are notified to the contractor shall be regarded as “when consigning”.
- 4.2 Written information
- In the document to be issued when the company wants to reduce the sub-plating price, the reasons and standards for the reduction, the quantity of the object to be reduced, the amount of reduction, the reduction method such as deduction, and other matters that prove the validity of the reduction must be stated.
- 4.3 When issuing documents
- When the company wants to reduce the amount, it must issue a written reduction to the partner company in advance before making the reduction.
- 4.4 How to issue documents
- 4.4.1 When the company requests the subcontractor to reduce the subcontract price in writing, the company or its representative shall issue a signature (including a certified electronic signature pursuant to Article 2, No. 3 of the Digital Signature Act) or a written seal.
- 4.4.2 If the company wants to reduce the amount, use the standard form in Appendix 3.
Documents can be issued by providing electronic records as follows :
- ① A method of transmitting through a telecommunication line and recording it in a file provided in an electronic recording device used by a supplier (e.g., e-mail)
- ② A method of providing it to the supplier through a telecommunication line and recording it in a file provided in the electronic recording device used by the supplier (eg, web)
- ③ How to issue electronic records such as floppy disks, CD-ROMs, etc. to contractors
- 4.5 Exception
- For matters that are difficult to determine at the time the company issues a reduction document, a written document without the relevant matters may be issued only if there is a justifiable reason. However, even in this case, the reason for which the relevant matters have not been determined and the scheduled date for determining the matters shall be specified, and when such matters are confirmed, a document stating the matters shall be issued without delay.
5. Issuance of documents requesting provision of technical data
- 5.1 Occurrence of obligations for issuance of documents (Article 12-3 of the Subcontracting Act)
When a company requests a supplier to provide technical data due to a legitimate reason, it shall issue a written request to the supplier.
※ Examples of justifiable reasons that may be requested to provide technical data
- - In the process of signing subcontracting contracts through private contracts and competitive bidding (general competition, limited competition, nominated competition, etc.) (RFP) When requesting technical data from partner companies to meet requirements
- - During the subcontracting transaction, the company requests technical data from suppliers in the name of technical guidance, quality control, performance test, joint patent application, patent application support, joint technology development, and cost data request for adjustment of supply unit price. If
- - In case the company requests the provision of technical data from a partner company due to the conditions of delivery of the technology data consignment contract.
- 5.2 Written information
- In the written request for provision of technical data, the name and scope of the technical data, the purpose of the request, matters on confidentiality*, the relationship to which the rights belong*, the price of the technical data, the date of the request, the date of delivery, the method of delivery, and other requests from the company to provide the technical data. Matters that can prove justification should be included.
- 5.2.1 Matters on confidentiality Indicate which part of the technical data will be kept confidential, and if there is a confidentiality memorandum signed by each other, attach it
- 5.2.2 Ownership of rights The owner of the current rights of the technology data requested by the affiliated company, whether a mutual technology transfer contract has been signed, whether the requested technology is a jointly developed technology, and mutual agreement on the rights attribution relationship after the technology data is provided, etc.
- 5.3 When issuing documents
- When the company requests the provision of technical data, in principle, the name and scope of the technical data, the purpose of the request, the date of the request, the delivery date, the delivery method, matters related to confidentiality, the relationship to the rights, and the price of the technical data, etc. After the decision is made in consultation, a document must be issued to the partner company without delay.
- 5.4 Written issuance method
- 5.4.1 The company shall issue a written request for the provision of technical data signed by the company or its representative (including a certified electronic signature pursuant to Article 2, No. 3 of the Digital Signature Act) or signed and sealed to the partner company.
- 5.4.2 When a company requests technical data from a partner company in writing, use the standard written form (Form 1) for requesting technical data in the 「Guidelines for Examining Requests for Provision of Technical Data and Useful Behavior」 (Fair Trade Commission Preliminary Regulation No. 115).
- 5.4.3 In addition to the above standard form, the company may request the provision of technical data through a separate contract document such as a special contract. However, in the separate contract document, the items mentioned in paragraph 4.2 above must be included.
Documents can be issued by providing electronic records as follows :
- ① A method of transmitting through a telecommunication line and recording in a file provided in an electronic recording device used by a partner company (eg, e-mail)
- ② A method of providing it to the supplier through a telecommunication line and recording it in a file provided in the electronic recording device used by the partner company (eg, web)
- ③ How to issue electronic records such as floppy disks and CD-ROMs to business partners, etc.
- 5.5 Exceptions
- As exemplified in the following, if a document is issued in a reasonable manner consistent with the actual subcontracting transaction, the document issuance obligation may be fulfilled different from the above written matters and issuance deadline.
- 5.5.1 For matters that are difficult to determine in advance by the company and partner companies among the matters to be entered in the request for technical data provision, a document without the relevant matters may be issued only if there is a justifiable reason. However, even in this case, the reason for which the relevant matters have not been determined and the scheduled date for determining the matters shall be specified, and when such matters are confirmed, a document stating the matters shall be issued without delay.
- 5.5.2 If frequent request for technical data is inevitable in light of the characteristics of the business or the reality of the transaction, write the name and scope of the technical data, the purpose of the request, the confidentiality matters, the relation to which the rights belong, and the consideration, etc. Additional matters such as request date, delivery date, and delivery method can be determined using the request form.
6. Issuance of other documents
- 6.1 Issuance of a receipt certificate for the object, etc. (Article 8 of the Subcontracting Act)
- 6.1.1 The company shall provide a certificate of receipt of the target object, etc. to the partner company when the partner company delivers, delivers, or provides the object, etc. (except when the service supply is consigned) Should be issued.
- 6.1.2 The company shall issue a receipt certificate to the partner company immediately, even before inspection of the subject matter, etc. (in the case of opening a domestic credit card pursuant to Article 7 of the Subcontracting Act, upon completion of the inspection).
- 6.2 Issuance of inspection results for objects, etc. (Article 9 of the Subcontracting Act)
- 6.2.1 After receiving the object, etc. from the partner company, the company shall conduct necessary inspections to determine the scope of obligations to complete the object, etc., and notify the partner company in writing of the result.
- 6.2.2 In principle, the company must issue a written test result within 10 days from the date of receipt of the object, etc. from the partner company. The date of receipt of the object, etc. includes the date of receipt of the notice of the ready-made part in the case of consignment for manufacturing or repair, and the date of receiving the notification of the completion of the construction or the ready-made part from the supplier in the case of consignment of construction.
However, as exemplified in the following, the company may notify the inspection result for more than 10 days if there is a justifiable reason.
- ① In case the inspection object is excessive and inspection is difficult within 10 days.
- ② In the case that the test is long and it is not possible to judge whether it is passed or not until a considerable period has elapsed.
- ③ When an explicit agreement is reached between the company and the partner company on the extension of the inspection period, etc.
- 6.2.4 If the inspection result is not issued in writing to the partner company within 10 days from the date of receipt of the object, etc. without a justifiable reason, the inspection is deemed to have passed.
- 6.3 Issuance of a statement of change in contract amount due to design changes, etc. (Article 16 of the Subcontracting Act)
- 6.3.1 If the contract amount is increased or decreased due to changes in economic conditions such as design change or price change after consignment of manufacturing, etc., the company shall notify the relevant partner company of the reason and details of the increase or decrease from the client. However, this is not the case if the orderer directly notifies the reason and the details to the partner company.
- 6.3.2 The Company shall issue the above notice to the supplier within 15 days from the date of receiving the increase or decrease in the contract amount from the orderer.
- 6.4 How to issue documents
- 6.4.1 In the case of Nos. 6.1, 6.2, and 6.3 above, the Company shall issue a document signed by the company or its representative (including a certified electronic signature pursuant to Article 2, No. 3 of the Electronic Signature Act) or signed and sealed to the supplier.
In the case of Nos. 6.1, 6.2, and 6.3 above, documents can be issued by providing electronic records as follows.
7. Matters concerning the preservation of documents
Both the company and partner companies must preserve the documents listed in 2 above and other documents under Article 6 (Preservation of Documents) Paragraph 1 of the Enforcement Decree of the Subcontracting Act. The documents to be preserved are as follows.
보존해야하는 서면의 상세 표 No. Documents subject to preservation Related Article in Law 1 Basic contract (including additional and modified contracts) Article 3 of the Subcontracting Act Mandatory issuance form 2 Subcontract confirmation document Subcontracting Act Article 3, Clause 6 3 Written reduction Article 11 of the Subcontracting Act 4 Technical data request form Article 12-3 of the Subcontracting Act 5 Receipt certificate Article 8 of the Subcontracting Act 6 Notification of inspection results Article 9 of the Subcontracting Act 7 Notice of contract change details Article 16 of the Subcontracting Act 8 Documents stating the inspection results of the object, etc., the inspection end date Enforcement Decree Article 6, Paragraph 1, No. 2 Documents to be entered, including details of major subcontracting transactions 9 Documents stating the payment date, payment amount, and means of payment of the subcontract payment (including the issuance date, amount, and maturity date when making a bill payment) Enforcement Decree Article 6 Paragraph 1 No. 3 10 Documents stating the payment date and payment amount when refunds and delayed interest such as money and delayed interest, bill discount and delayed interest, and customs duties are paid Enforcement Decree Article 6 Paragraph 1 No. 4 11 Documents stating the details of the raw materials, deduction date, deduction amount, and reason in case the original business entity provides raw materials, etc. necessary for the manufacture of the object, etc. to the contractor and the price is deducted from the subcontracting price. Enforcement Decree Article 6 Paragraph 1 No. 5 12 Documents stating the amount and reason for adjustment of the subcontract price due to design changes, etc. Enforcement Decree Article 6 Paragraph 1 No. 6 13 In the case where the contractor requests for adjustment of the subcontract price due to changes in the price of raw materials, etc., a document stating the details of the application and the contents of the consultation, the amount of adjustment and the reason for the adjustment Enforcement Decree Article 6 Paragraph 1 No. 7 14 Documents related to subcontracting payment decisions, such as bidding statement, successful bidder's decision, estimate, site manual, and design manual Enforcement Decree Article 6 Paragraph 1 No. 8
- 7.2 Preservation form
- Documents to be preserved must be preserved in the original state at the time the document was issued, used according to the product's purpose or other purpose. It is also the same for creating, transmitting, receiving, or storing in an electronic form by a device having information processing capability such as a computer. Documents to be preserved must be preserved in the original state at the time the document was issued, used according to the product's purpose or other purpose. It is also the same for creating, transmitting, receiving, or storing in an electronic form by a device having information processing capability such as a computer.
- 7.3 Retention period
The company and subcontractors must retain the above documents for 3 years from the date of the end of the subcontracting transaction between the parties.
Here, the date on which the subcontracting transaction is completed means the next date.
- - Out of manufacturing consignment, repair consignment, and service consignment, entrusting the creation of knowledge and information outcomes: The day when the partner company delivered or delivered the object entrusted to the company.
- - Service consignment during service consignment: The day when the company completes the service consignment to a partner company
- - Construction consignment: the day the consigned construction is completed
- - In case the subcontract is terminated in the middle or the transaction is suspended: the date of termination or suspension
1. This regulation is enacted and enforced from October 01, 2012.
2. This regulation will be revised and effective from April 01, 2014.
Hyosung TNC is a retaliation for refusing to initiate a transaction against a partner company for any of the following actions, or for suspending the transaction against a partner company in continuous business relationship, or not significantly limiting the quantity or content of the product being transacted. We are implementing a ban policy.
In addition, if an employee of Hyosung TNC arbitrarily retaliates against a partner company, the relevant employee will be referred to Hyosung TNC's internal disciplinary procedure.
- - Report to related organizations that the Company has violated fair trade laws
- - Dispute Mediation Council and Mediation Application
- - Objection to the contents of our contract
- - Raising issues related to fair trade through the hot-line operated by our company
공정거래 자율준수 프로그램
Fair Trade Compliance Program Definition and Implementation Goals
The Fair Trade Voluntary Compliance Program (CP) is a series of programs and systems such as monitoring, education, and supervisory sanctions that companies operate internally to comply with fair trade-related laws and regulations. In addition to preventing losses caused by legal violations in advance and forming a desirable culture for competition and fair trade, we aim to realize responsible management by faithfully fulfilling our responsibilities in the Business Ethics sector. Hyosung TNC Co., Ltd. succeeded the CP introduced by Hyosung in September ‘06 at the time of the spin-off in June ‘18, after the first amendment in September ‘19, the second amendment in June ‘20, and the third revision was made in June 21, which is being operated. Through CP operation, we will prevent risks arising from legal violations in advance, establish compliance and ethical management for our employees, and strive to become a model company that complies with fair trade.
CP promotion organization and compliance manager
The Compliance Support Team is in charge of voluntary compliance with fair trade, and strives to minimize related risks through activities such as education and monitoring related to fair trade for all employees. As a compliance manager, the compliance officer is empowered to operate the fair trade compliance program and report directly to the board of directors.