A compliance program is internally operated by companies to ensure compliance with fair trade laws and regulations.
They are laws and regulations enacted to promote competition and maintain fair trade practice.
Prevents corporate loss due to violations of the law.
• Prevents financial losses such as fines, compensation of damage, litigation costs, as well as reputational damage caused by reporting of the violations.
• Prevents civil and criminal charges against employees including those who violated the law and those in charge.
Enhances internal and external corporate credibility. • When the adoption of CP is announced internally and externally, we boost our image as a company that practices transparent and ethical management.
Minimize damages caused by violations of the law. • A reduction in penalty and criminal charges may be received for the accidental violation of laws related to fair trade.
The Compliance Program is a voluntary program which may be operated in various ways according to the corporate characteristics of a company. However, for the effective operation of the Compliance Program, the following 7 core elements must be met.
Companies operating the Compliance Program for over one year may apply to undergo a CP rating evaluation that is conducted once every year.
• Evaluation Agency : Korea Fair Trade Mediation Agency
• Evaluation Rating : A total of 8 grades from grade AAA to grade D. Incentives are offered to companies with grade A and above.
For an exemplary company that received a grade A or higher for its CP operation in the rating evaluation, the Fair Trade Commission provides the following incentives when the company unintentionally violates the Fair Trade Act.
|CP Rating||AAA (above 90 points)||AA (above 80 points)||A (above 70 points)|
|Penalty reduction||up to 20%||up to 15%||up to 10%|
|Exemption from investigations by authorities||2 years||1 year 6 months||1 years|
|Downward revision of public announcement order||• Announcement in publications : Downward revision of 1 level for announcement size and the number of media publications
•Announcement at business establishments and on online media : Shortened announcement period
|Presentation of rating evaluation certificate||• For companies with excellent CP rating (A grade or higher)
• Valid for 2 years