Taekwang Group strengthens discipline for unfair practices

[Courtesy of Taekwang Group]

South Korea’s Taekwang Group announced on Monday that it has established new disciplinary guidelines to ensure fair handling of employee affairs and foster a conducive competitive environment.

The group has recently formulated disciplinary regulations standards outlining detailed penalties for employee misconduct and distributed them to its affiliated companies.

It is the first time that Taekwang Group has created a standardized template.

The new guidelines categorize disciplinary actions based on the nature of the misconduct.

For instance, embezzlement of funds or unauthorized use of corporate cards, as well as deliberately causing financial losses to the company through unfair expense creation, will result in severe penalties such as dismissal or demotion.

Engaging in unfair transactions with stakeholders or receiving financial benefits, favors, gifts, or entertainment will also incur similar levels of severe penalties. Employees who cause complaints or neglect complaint handling will also face disciplinary action.

The Taekwang Family Code of Ethics has been revised for the first time in five years, incorporating the prohibition of unethical conduct into the dignity maintenance clause.

To promote fair transactions between subsidiaries and partner companies, all qualified companies will be given the opportunity to participate, according to the group.

It has also established standardized internal audit regulations for the first time. To ensure audit independence, the rotation of audit personnel will be restricted, and in cases of significant illegal or unfair practices discovered during audits, investigations will be requested through the legal department.

Furthermore, the group is strengthening its internal audit capabilities by recruiting experts with extensive experience in economic and corporate crime investigations.

Among them is Kang Seung-kwan, who was appointed as the head of the group’s audit office on April 1.

Kang, a former head of the Seoul Metropolitan Police Agency’s Economic Crime Special Investigation Division, has accumulated audit practice experience in large corporations, along with other experts with extensive experience in related fields such as prosecutors, police, and the Financial Supervisory Service.

Professor Kim Woo-jin of Seoul National University, appointed as an outside director of Taekwang Industry on Monday through a recommendation by activist fund Truston, has also joined the group’s main subsidiary’s audit committee to oversee and direct audit-related tasks.

Professor Kim, an expert in corporate governance and compliance management, also serves as a member of Samsung Group’s Compliance Monitoring Committee.