For transparent and fair

Ethical Management

Our ethical management focuses on correcting any wrong practices or unreasonable cost structure according to our code of conduct to pay due respect to stakeholders and improve our long term competitiveness.

All our employees are educated on the Fair Trade Act to help them be more aware of business ethics. Since 2002 we have run the Compliance Program (CP), a voluntary means to facilitate fair trade, to ensure full compliance with our principles of ethical management.

사외이사후보 추천위원회(BOARD NOMINATING COMMITTEE)로 구성 Organizational Chart: Management Board and Ethics Committee

Ethics Committee

The purpose of the Ethics Committee is to evaluate the transparency of internal transactions and the company’s progress in ethical management. The Ethics Committee assesses the transactions between affiliated persons as stipulated by the Monopoly Regulations and Fair Trade Law and the Capital Market and Financial Investment Business Act. It also monitors Kia Motors’ program for voluntary compliance with fair trade regulations, major policies related to ethical management and social outreach programs, and the enactment, revision and implementation of ethics codes and regulations.

  • Code of Conduct for the Purchasing Headquarters

  • Regulations on Gifts Handling

  • Code of Practice

Fair Trade

CP is our internal system to ensure our compliance with regulations related to fair trade. We have designated the CP as standard business procedure and use internal supervision and education to ensure fair trade practices. More intensive education was offered to the members of departments relatively more prone to noncompliance, such as the sales and the purchasing departments. Opportunities were also offered to members concerned where they could learn about the latest developments in fair trade and apply them to their jobs. We always use open bidding to ensure that all our partners have equal opportunities.

Keep watching our efforts to ensure fair competition and transparent business dealings through prior inspection and preventive measures.

Key Activities

주요 추진실적 정보 테이블
Key elements Activities under voluntary compliance programs
 Communication of commitment to voluntary compliance by senior management
  • A special CEO message regarding fair competition and voluntary compliance is communicated throughout the company at least quarterly
  • A code of conduct, compliance policy and zero tolerance policy towards non-compliant members are publicly announced.
Appointment of a voluntary compliance supervisor
  • The Board of Directors appointed new compliance supervisor (Park Han-woo, Vice-president on March 23, 2012)
  • Voluntary Compliance Council was formed, chaired by the compliance supervisor (May 3, 2012)
     - Department responsible: Stock Management Team, Advice: Legal Affairs Team. Teams with a right to general supervision were appointed
 Production and distribution of a manual on voluntary compliance
  • Manual prepared and distributed upon adoption of CP (Nov. 2011)
  • Revised in Jan. 2008 and the third edition distributed  in Mar. 2009
  • Fully revised in May 2011 and 1500 copies distributed
  • CP Manual distributed on CD-ROM
 CP training programs
  • More training on CP for individual functions (Mar to Jun 2012)
    - For whom: Managers from local sales branches, members of the service department, managers or higher from plants
  • Regular and special training (semi-annually) for members of departments more prone to violation including sales and purchasing
  • Training for newly recruits: Online training, training by outside experts on fair trading and training offered by independent organizations
Internal supervision system
  • Consultation to prevent violation of laws before departments are involved in fair trade related dealings
  • Self-audit by departments using voluntary compliance checklist, regular/irregular field audit
  • Results from internal audit are reported by the compliance supervisor to the Board of Directors. Corrective actions are taken and monitored.
 Sanction and incentive system
  • Rules on sanctions in place against members who violate the Fair Trade Act
  • Sanctions imposed and their results are identified through an internal audit and reported to the Ethics Committee
  • Whistle blowing system is in place
  • Departments given good marks for voluntary compliance were rewarded more greatly in 2012
     - 10 million won per year and recognition by CEO at the year-closing ceremony
 Document control system
  • Website for fair trade voluntary compliance within the company
  • Website for transparent purchase and shared growth
  • Continuous revision and improvement of CP operating rules and guides, and standard business processes

Code of Conduct on Fair Trade Voluntary Compliance for Employees of Kia Motors

ㆍWe will perform our jobs in accordance with fair and transparent standards and be committed to voluntary compliance with fair trade practices.
ㆍWe will fully comply with laws on fair trade and our voluntary compliance programs and address in advance any risk of violating them.
ㆍWe will fulfill our social responsibilities as a leader in fostering transparent business practices through continuous self-regulated checkups.

  • ㆍFor prior business consultation regarding fair trade
    - Contact the Stock Management Team or the Legal Affairs if in doubt
    - Leave questions on the 'Fair Trade Voluntary Compliance' bulletin board
  • ㆍTo report any violation of the Fair Trade Act
    - Use 'Sinmumgo' within the 'Fair Trade Voluntary Compliance' bulletin board
    (Identity of whistle blowers fully protected)
    - Contact the compliance supervisor at 02-3464-5885 or

About the Compliance Program (CP)

ㆍCP, which stands for Compliance Program, is an internal compliance system designed to ensure that our business dealings comply with laws and regulations governing fair trade.
ㆍCP clearly states how businesses should conduct operations to fully comply with relevant laws and it helps them mitigate the risk of a violation.

공정거래 자율준수 프로그램은 기업손실 사전예방, 위험관리, 글로벌 스탠다드, 대내외 신인고 제고, 과징금 감경등의 인센티브로 구성

Seven elements of CP

  • 1. Communicate the CEO's commitment to voluntary compliance
    2. Appoint a compliance supervisor
    3. Prepare and distribute voluntary compliance manual
    4. Offer a training program
  • 5. Adopt a monitoring system
    6. Impose sanctions on members who violate laws or regulations related to fair trade
    7. Have a rigorous document control system
Download Fact Sheet of CP Operations DOWNLOAD

Shared Growth

Operating structure for mutually beneficial cooperation Operating structure for mutually beneficial cooperation

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