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Ethical Management

Ethics Compliance Guidelines

Hanwha Power Systems has established guidelines for employees to set standards for ethical behavior for both the company and its employees to practice ethical management.
The company and its employees must strictly adhere to these guidelines as a standard for decision-making and conduct in their duties.

01Selection of Business Partners and Fair Trade Compliance

  • Business partners should be selected rationally based on fair and transparent principles.
  • Any necessary adjustments or restrictions on trading conditions should be conducted through clear and valid reasons and transparent procedures.
  • All dealings with partners must strictly adhere to fair trade and subcontracting laws and not exploit a dominant position to engage in unequal, unfair, or discourteous conduct.

Acts that contravene the transparent selection
and fair and just dealings with business partners include

Selection of Business Partners
  • An employee in a decisive position influencing or attempting to influence the selection or evaluation of a business partner to favor or discriminate against a particular company unduly.
  • Unjustified refusal to allow participation in transactions or deprivation of opportunities.
  • Setting exclusive trading conditions, unjustified trading regions, or limiting transaction partners without valid grounds.
  • Discriminatory application of trading conditions(such as price, performance period), collusive group discrimination, or granting favors to specific companies.
Transactions with Business Partners
  • Establishing a unilateral trading relationship solely for the company’s benefit or deliberately disadvantaging a specific company to cause harm.
  • Unilateral adjustment of supply volumes, unfair low-cost purchasing, unilateral changes to contract conditions, deliberate delays in payment, and unjust unilateral termination of transactions.
  • Unfair support of funds, personnel, or assets from a cooperating company.
  • Unfair use of a cooperating company’s technology and personnel recruitment, disruption of transactions with competitors, or other business activity interference, and leaking any information obtained from a cooperating company to the outside.
Equity Investment
  • Acquiring shares in a non-listed business or a spin-off with a business relationship or a desired transaction is prohibited, whether in one's name or another's. However, an exception is made if shares are offered through a public offering during a spin-off, providing a fair opportunity to all employees.

02Gifts and Hospitality

  • No form of gratuity, hospitality, or convenience offered by stakeholders should be accepted regardless of the reason, and any unavoidably received gratuities must be reported to the company.

Acts corresponding to gifts, entertainment,
and hospitality provided by stakeholders include

Gifts
  • Cash, checks, gift certificates, various cards, and other securities
  • Memberships, passes, tickets, discounts, and gifts such as flowers or rings
  • Condolence money, condolence gifts(flower wreaths, rings, etc.)
  • Debt repayment includes credit card bills, outstanding payments, loan repayments, etc.
  • Expenses for dining, personal expenses, etc.
  • Unauthorized receipt of goods from stores
Entertainment and Hospitality
  • Establishments such as room salons, adult entertainment establishments, nightclubs, massage parlors, illicit barber shops, and saunas
  • Activities such as casinos, gambling, illicit horse racing, etc.
  • Entertainment activities such as golf, screen golf, fishing, tourism
Provision of Convenience
  • Providing transportation and accommodation convenience during business trips
  • Providing transportation and accommodation convenience during personal vacations
  • Abnormal discounts at stores, payment after receiving goods, etc.
  • Sponsorship of events, support for charitable gifts or supplies
  • Employment, job referrals, contract guarantees
  • Asset transactions such as low-price purchases and high-price sales
  • Commission for loan guarantees, etc.
  • Financial loans, asset leasing/mortgage provision

However, gifts that are small in value, generally provided to an unspecified number of people, and do not disrupt business, such as condolence gifts, souvenirs, and promotional items, are excluded from the scope.

03Prohibition of Offering Bribes and Gifts

  • Employees must not engage in acts that tarnish the company's image by offering bribes or gifts to public officials.

Acts considered offering bribes and gifts include:

Acts of offering bribes
  • Handling of permits, licenses, etc.
  • Intervention in various administrative disposals or reductions/exemptions of penalties
  • Intervention in personnel matters such as hiring, promotion, etc.
  • Intervention in the selection/disqualification of public officials for public decision-making positions
  • Intervention in the selection/disqualification of awards, honors, etc., hosted by public institutions
  • Leakage of confidential information related to duties such as bids, auctions, etc.
  • Intervention in the selection/disqualification of contracts for specific individuals
  • Intervention in the allocation/support of subsidies, investments, etc.
  • Abnormal transactions of goods and services produced/supplied by public institutions
  • Manipulation of matters such as school admissions, grades, etc.
  • Handling of military service-related tasks
  • Interference with various evaluations and adjudications conducted by public institutions
  • Manipulation of outcomes of administrative guidance and inspections, or condonement of illegal activities
  • Interference in investigations, trials, adjudications, decisions, settlements, or mediations
  • Public officials: National and local government employees, heads and staff of public institutions and related organizations, principals and faculty of various educational institutions and school corporations, and representatives and staff of media companies.
  • Exceptions: Actions not contrary to social norms(7 reasons)
    • ① Specific actions required by laws and standards.
    • ② Actions requested publicly.
    • ③ Elected officials forwarding grievances of third parties or suggesting improvements to laws and standards for the public good.
    • ④ Requests for processing within legal deadlines and inquiries about progress.
    • ⑤ Applications and requests for confirmation or certification related to duties or legal relationships.
    • ⑥ Requests for explanations or interpretations of laws through inquiries or consultations.
    • ⑦ Other acts that are socially acceptable and generally accepted.
Acts of Providing Monetary
and Other Benefits
  • Any financial benefit, including cash, securities, real estate, goods, accommodation vouchers, memberships, entrance tickets, discount coupons, invitation cards, and rights to use properties.
  • Provision of food, alcohol, golf entertainment, or convenience such as transportation and lodging.
  • Debt forgiveness, job provision, granting of privileges, and other tangible or intangible economic benefits.
  • Regardless of job relevance, it is prohibited to accept from the same person more than 1 million won at one time or more than 3 million won per fiscal year. If the job is related, it is prohibited to accept any amount up to 3 million won per fiscal year.
  • Exceptions to Prohibitions
    • ① Gifts and other benefits permitted according to social norms(8 items):
      • Gifts provided by superiors to public officials for purposes of consolation, encouragement, or rewards.
      • Food worth 30,000 won, gifts worth 50,000 won, and condolence money up to 100,000 won provided for smooth job performance, socializing, or rituals.
      • Legitimate gifts provided based on proper authority.
      • Gifts provided by relatives of public officials.
      • Gifts provided by associations according to standards or by long-term, continuous acquaintances to public officials under challenging circumstances.
      • Gifts provided uniformly within the normal range at official events related to public officials' duties.
      • Souvenirs and promotional items distributed to an unspecified number of people, and prizes through competitions or draws.
      • Other gifts allowed by different laws or social norms.
    • ② Permitted Honoraria for External Lectures and Publications:
      • Public servants: Ministerial level(500,000 won), Deputy Ministerial level(400,000 won), Grade 4 and above(300,000 won), Grade 5 and below(200,000 won).
      • Employees of public institutions and related organizations: Directors(400,000 won), Executives(300,000 won), and Others(200,000 won).
      • Private educational institution employees, media personnel, etc.: Up to 1,000,000 won per lecture hour or publication, with a limit of 1,000,000 won per public lecture related to official duties as a member of a public institution.

04Handling of Company Assets

  • The tangible and intangible assets, confidential information, and company funds represent crucial resources for Hanwha Power Systems' sound business operations. By company standards, these assets must be utilized solely for authorized purposes. Additionally, all employees are responsible for preventing these assets' loss, misuse, or theft.

Acts that constitute misuse of Hanwha Power Systems' tangible and intangible assets, leakage of important information and personnel, and embezzlement of company funds include:

Misuse of Company Assets
  • Misuse of tangible fixed assets such as land, buildings, facilities, and equipment for purposes other than business objectives, unauthorized or personal profit-driven use.
  • Unauthorized removal, use, provision to family or acquaintances, or cost transfer of company vehicles, PCs, expensive consumables, and office supplies.
  • Misuse of company-provided information networks, PCs, and storage media for unhealthy and commercial purposes.
  • Utilizing information obtained through one's position or job for personal profit or investing in real estate or stocks using undisclosed company information.
Leakage of Information
and Personnel
  • Unauthorized disclosure or provision of acquired business-related information such as trade secrets, sales data, business information, technological development data, or personal information of customers and employees to competitors.
  • Facilitating the scouting of company personnel by competitors, arranging meetings, or unauthorized provision of internal organizational and personnel information to competitors or headhunters, resulting in personnel leakage.
Embezzlement and
Misappropriation of Funds
  • Unauthorized withdrawal of company funds, personal borrowing, manipulation of accounting books for personal gain, and gifting to stakeholders.
  • Illegal diversion of corporate cards, processing expenses with false receipts, fraudulent claims for travel or overtime expenses, personal entertainment, or expenses challenging to account for being treated as costs under other accounts.
  • Other expenditures that violate company expense handling standards.

05Related to Document
and Data Manipulation
and False Reporting

  • All documentation and reporting of information must be accurate and honest.

Acts of manipulating or falsifying documents and figures include:

Document and Data Manipulation
and False Reporting
  • Intentionally or negligently creating documents or manipulating/altering figures misrepresenting facts.
  • Actions that obscure or mislead senior managers' or relevant departments' decision-making or judgments by manipulating or altering documents or figures.
  • Senior managers directing or subordinates condoning the manipulation of documents or figures when such actions are clearly unethical.
False Reporting
  • Dishonest, false reporting to senior managers, including the company's executive management, is strictly prohibited as unethical behavior.
  • Making false or misleading statements when selling products or providing services to customers.
  • Beyond direct false reporting, manipulating information with the intent to mislead the recipient.

06Employee Ethics

  • Employees are expected to lead by example in maintaining a healthy organizational culture.

The basic ethics for maintaining a healthy organizational culture include:

Prohibition of Workplace Harassment
  • Ban on lewd jokes among Hanwha Power Systems employees.
  • Prohibition of forcing others to serve during company meals, using language, actions, or physical contact that causes sexual embarrassment.
  • Avoid making sexual innuendos about colleagues' bodies or emphasizing stereotyped gender roles.
  • Prohibition of any language or actions that are socially recognized as sexually humiliating or repugnant.

Any discomfort caused by sexual harassment must be clearly expressed and taken seriously by the counterpart.

Prohibition of Financial Transactions
and Gift Exchange Among Employees
  • Financial transactions between employees are prohibited as they can lead to economic harm and distrust, deteriorating the organizational atmosphere.
  • Gift exchange among employees is fundamentally prohibited, except for socially recognized occasions such as anniversaries, birthdays, and farewells.

  • However, soliciting contributions for gifts or allocating them arbitrarily is not permitted. Participation should be voluntary and within socially accepted norms.

  • Personal gifts implying solicitation to superiors are strictly prohibited.
Guidelines for Appropriate
Social Media Use
  • Do not discuss any internal confidential information, unpublished company-related incidents, information, or rumors.
  • Avoid disparaging customers, shareholders, business partners, competitors, or colleagues and engaging in debates or conflicts related to the company on social media.
  • Do not post content that could defame the company or others, including obscenities, racial or sexual discrimination, or grotesque or obscene materials.
  • Clearly state that personal opinions do not represent the company’s views.
  • Do not use the company’s name, logo, trademark, or other intellectual property without permission.
  • Important customer feedback or media inquiries received through social media activities should be reported to the PR team following proper procedures.
Practices for a Healthy Workplace
  • Do not engage in behaviors that could tarnish Hanwha Power Systems's or its employees' reputation.
  • Strictly prohibit illegal gambling, drug/alcohol-impaired driving, and any other socially reprehensible, decadent, or illegal activities.
  • Prohibit multi-level marketing, insurance sales, or any activity that could interfere with your work or affect colleagues, superiors, or stakeholders.
  • Any side jobs or activities that harm the company or interfere with work without company approval are forbidden.
  • Refrain from any activities unrelated to work during business hours.
  • Prohibit acts that undermine work discipline, such as unauthorized leave, early departures, delay, or non-compliance with break/meal times.
  • Prohibit the use of illegal software; use must be through appropriate channels if necessary.
  • Prohibit using one’s position to request or coerce personal favors or unethical actions, causing physical or mental distress to others, or worsening the work environment.
  • Ensure that interpersonal violence or other conduct unbecoming an employee does not occur.
  • Refrain from any behavior that could damage the dignity of the employees or hinder the pursuit of a healthy workplace life.