Fair Trade

We practise right / conscious / shared ideologies.

To enhance employee
compliance and trust management!

We are doing our best to achieve sustainable growth by adopting a business philosophy that distributes fairly all values created with our customers, shareholders, and society, while striving to become a health & beauty company with JUNG KWAN JANG at the forefront. Since the introduction of ethical management in 2005, we have been keeping to the principle of good judgment and behavior that is to be followed by all employees and the entire company. We have also introduced the Compliance Program (CP) to lay the foundation for proper and responsible management.

This is in response to our business philosophy of “an honest company” and our mission to offer, at all times, good and honest products for all who love KGC.

By distributing a compliance manual on fair trade laws and guidelines, and conducting fair trade education for each sector, we provide information on the rules to keep, check for compliance, and try to prevent any violation of the law in advance. All of our employees work together to establish a stronger fair trade culture.

Compliance management is no longer an option, but a prerequisite for sustainable growth. As a leading company in the health industry, KGC will do its best to become a company that can be trusted by all members of society. We promise to faithfully carry out compliance management based on laws and principles.

Compliance Program

A compliance program is internally operated by companies to ensure compliance with fair trade laws and regulations.

fair trade laws

They are laws and regulations enacted to promote competition and maintain fair trade practice.

  1. 1The Monopoly Regulation and Fair Trade Act
  2. 2The Fair Transactions in Franchise Business Act

  3. 3The Fair Transactions in Subcontracting Act
  4. 4The Fair Labeling and Advertising Act

  5. 5The Act on the Regulation of Terms and Conditions
  6. 6The Act on the Consumer Protection in Electronic Commerce, etc.

Reasons for Adoption

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.

7 core elements
Clear expression of the management’s
willingness to engage in CP
Designation and appointment
of a Compliance Officer
Creation and distribution
of a Compliance Manual
Establishment of a monitoring system
Operation of a training program
Establishment of a document management system
Disciplinary actions against employees
who violate fair trade laws

Rating Evaluation System

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.

Incentive System

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