SK Innovation and SK On Receive 'Excellent' Rating for Fair Trade Compliance Autonomy

Operation of Dedicated Teams and Member Training
High Evaluation from the Fair Trade Commission for Pre-Inspection of Vulnerabilities

On the 14th, at The Plaza Hotel in Jung-gu, Seoul, Sunwoo Seongyun, Compliance Officer at SK Innovation (right), is taking a commemorative photo with Han Ki-jung, Chairman of the Fair Trade Commission, during the CP Excellent Company Evaluation Certificate Award Ceremony. Photo by SK Innovation·SK On

SK Innovation and SK On received an "Excellent" rating in the first evaluation of the Fair Trade Commission's "Compliance Program (CP)."

The CP refers to an internal compliance system that companies establish and operate independently to comply with fair trade-related laws and regulations. Since 2006, the Fair Trade Commission has evaluated companies' CP ratings and assigned six grades: Highest (AAA), Excellent (AA), Average (B), and Poor (C), among others. The "Excellent" rating received by both companies is the second-highest grade, valid for two years starting January 1 of next year.

SK Innovation declared "Fair Trade Compliance" in 1996, established related organizations, and has continuously operated CP through CP education for members, the establishment and distribution of a self-compliance manual (Fair Trade Guidebook), and a monitoring system for fair trade vulnerability factors.

In particular, to enhance members' awareness of CP, the company obtains annual ethics management and fair trade compliance pledges from all members and regularly sends newsletters containing fair trade-related content. High evaluations were given for preventive measures against fair trade vulnerabilities, such as company-wide fair trade education, a system for constant access to the fair trade guidebook via the intranet, prior work consultations with the CP department, and inspections for business divisions.

SK On was highly recognized in multiple areas, including CP establishment and operation, and effectiveness evaluation. Notable best practices included transparent disclosure of fair trade laws and CP operation status, systematic inspection of fair trade violation factors through prior work consultation systems, CP encouragement activities such as regular awards, conducting CP effectiveness evaluations, and institutionalizing board reporting. SK On, launched in October 2021, received the excellent rating due to quickly establishing a high-level CP operation and management system.

Thanks to these efforts, SK Innovation and SK On have been evaluated as having significantly enhanced their CP operation and management levels, including obtaining the international standard compliance management system "ISO37301" certification from the Korea Management Certification Institute this year.

The Fair Trade Commission provides benefits such as reduced orders for public disclosure of fair trade violations and exemption from ex officio investigations to companies that receive a relatively excellent (A) or higher rating, the third-highest grade, in the CP evaluation. These benefits are scheduled to be implemented in June next year, following the amendment to the Fair Trade Act promulgated in June this year. Based on this evaluation result, SK Innovation and SK On plan to improve and supplement their CP operations going forward.

CP is gaining global attention as an important pillar for establishing fair trade order. Overseas, including the United States and the European Union (EU), when imposing fines or other measures for violations of fair trade laws, CP operation performance is considered a key factor.

Sunwoo Seongyun, Compliance Officer at SK Innovation, and Jung Mincheol, Global Compliance Officer at SK On, said, "The reason we received an excellent rating in our first external CP evaluation is because we proactively introduced the CP system and because of the voluntary compliance management practices of our members." They added, "We will continue to advance the fair trade self-compliance organizational culture of SK Innovation and SK On and establish ourselves as model companies in compliance management."

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