Daedong Gear

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Code of Conduct for Employees and Executives

Employee Conduct Guidelines

We present specific behavioral guidelines for employees based on the Code of Ethics.

  • Section 1. General Provisions

    Article 1. Purpose

    This guideline presents standards of concrete behavioral judgment for correct decision-making by employees in situations that may occur during the work process so that they can correctly understand and practice the Code of Ethics.

    Article 2. Definition of Terms

    1. Gifts: monetary cash, gift certificates, vouchers, securities, accommodation vouchers, membership cards, tickets, discount coupons, invitations, viewing tickets, goods (such as gifts), and other economic or property benefits.
    2. Entertainment: meals, alcohol, sports (golf), performances, amusement (gambling), etc.
    3. Convenience: support other than money and entertainment such as transportation, accommodation, sightseeing, and event support.
    4. Stakeholders: all internal and external individuals and organizations whose rights or interests may be directly affected by an employee's decision.
    5. Normal level: a universally reasonable level that can be understood by other employees or the general public at a common-sense level, and one that does not create a burden and still allows fair business processing.
    (However, if the beneficiary is a public official defined by the Act on the Prohibition of Improper Solicitation and Graft, the 기준 is food and beverages up to KRW 30,000, gifts up to KRW 50,000 (agricultural/fishery products or processed goods with more than 50% agricultural/fishery content: up to KRW 100,000), and congratulatory/condolence money up to KRW 50,000 (flower wreaths or bouquets up to KRW 100,000)).
    6. One’s own actions: violations by family, relatives, acquaintances, etc. are considered the employee’s own actions.

  • Section 2. Occupational Ethics

    Article 3. Mutual Respect among Employees

    1. No discrimination based on academic ties, regional ties, blood relations, gender, religion, age, disability, marital status, nationality, race, etc.
    2. Do not engage in verbal or physical conduct that defames or causes distress to others.
    3. Do not provide personal gifts or make unreasonable personal solicitations (including borrowing money, loan guarantees, etc.) beyond normal levels.

    Article 4. Communication between Superiors, Subordinates, and Departments

    1. Superiors shall not abuse their position to give unjust work orders or personal errands to subordinates.
    2. Subordinates shall make efforts to carry out work instructions from superiors to the best of their ability.
    3. If a superior gives instructions to seek personal benefits or if the instruction is illegal, subordinates may refuse and report if necessary.
    4. Do not spread false information or create unnecessary conflict such as team egoism within the company.

    Article 5. Prohibition of False Reporting

    1. It is prohibited to inflate performance or report false facts.
    2. Do not distort work-related information such as hiding or minimizing one’s own mistakes or fraud.

    Article 6. Confidentiality of Information

    1. Information obtained on duty must be used in the interest of the company. Internal information such as company secrets and business information may not be leaked externally or disclosed to third parties without prior approval according to company procedures.
    2. Original or copied data obtained for business purposes cannot be owned personally and must remain confidential even after resignation.

    Article 7. Prohibition of Private Use of Inside Information

    1. Do not receive promised personnel benefits or private business contracts from stakeholders.
    2. Do not trade stocks using inside information obtained through work. (According to the Capital Market Act, profits obtained through buying or selling within 6 months may be returned to the company.)
    3. Do not leak confidential information of stakeholders such as partner companies to third parties, nor use it to engage in stock trading of stakeholder companies.

    Article 8. Protection of Company Assets

    1. Do not embezzle or privately use company funds, even temporarily.
    2. Do not arbitrarily use company assets such as business vehicles.
    3. If the company’s assets must be used for unavoidable personal purposes, this must be reported to the team leader in advance.
    4. If one recognizes a situation that may cause company loss, it must be reported immediately to the team leader, and the relevant team/department must promptly notify internal audit and actively cooperate with investigations.

    Article 9. Prohibition of Dual Employment

    Without company approval, one may not become an officer or employee of another company or organization, nor engage in profit-making activities (including multi-level businesses, insurance, etc.). If dual employment is expected to be an issue, consult HR in advance.

    Article 10. Fair Use of Budget

    Budgets must be used according to purpose and standards. The following acts are prohibited:
    A. Using company budget resources for personal use
    B. Making false expense claims and embezzling funds
    C. Entertainment between employees beyond normal levels

    Article 11. Avoiding Conflict of Interest in Duties

    1. Avoid unfair transactions with suppliers that have personal ties such as former employees, academic ties, regional ties, or relatives.
    2. If transactions with personally related parties are unavoidable, transparency and fairness must be proven objectively (e.g., market pricing, multiple quotes), and relevant documents must be kept.
    3. Do not accept unreasonable demands from partner companies based on special interests (such as hiring former company employees).

    Article 12. Prohibition of Gambling

    Employees must not engage in gambling or speculative acts beyond socially acceptable limits.

    Article 13. Prohibition of Sexual Harassment

    1. Recognize that sexual harassment violates human rights, destroys workplace atmosphere, and damages corporate image and legal stability, and prevent such issues.
    2. Do not engage in physical, verbal, or visual acts that cause sexual humiliation, including:
    A. Acts causing sexual humiliation, disgust, or pressure while working
    B. Unnecessary physical contact
    C. Forcing serving alcohol, dancing, or singing at company dinners
    D. Sexually discriminatory language or behavior

  • Section 3. Prohibition of Giving or Receiving Money or Gifts

    Article 14. Monetary Transactions

    1. Do not engage in monetary transactions such as lending/borrowing money, loan guarantees, or real estate leases with stakeholders.
    2. If unavoidable monetary transactions have occurred due to personal relationships, report to the audit department.

    Article 15. Receiving or Giving Gifts

    1. Do not request or receive gifts from stakeholders under any circumstances.
    2. Paying on behalf of an employee’s personal expenses is considered gift-giving.
    3. Gifts received through family, relatives, or acquaintances are considered the employee’s own act.
    4. Promotional souvenirs normally provided at stakeholder-hosted events are excluded.
    5. If gifts are received unintentionally or unavoidably, they must be returned immediately.

    Article 16. Entertainment

    1. Entertainment within a normal level can be exchanged with stakeholders.
    2. Do not receive entertainment exceeding a normal level, and if unavoidable, report to the team leader.
    3. Providing entertainment beyond a normal level at company expense or attending such events requires prior approval from the team leader.

    Article 17. Convenience

    1. Do not receive conveniences such as transportation or accommodation where the stakeholder bears the cost.
    2. However, conveniences normally provided to all attendees at stakeholder-hosted events are excluded.

    Article 18. Congratulatory/Condolence Money

    1. Do not notify external stakeholders of personal or colleague family events.
    2. If congratulatory/condolence money exceeding normal levels is received from stakeholders, returning it is recommended.
    3. Wreaths and other goods provided due to HR changes (promotion, transfer, etc.) must be handled as congratulatory money. Excessive quantity must be refused or returned.

    Article 19. Sponsorship for Events

    1. Do not receive sponsorship money or goods from stakeholders for team events (team dinners, sports events, unity events, etc.) or club activities.
    2. Providing vehicles, venues, or services for events is also considered sponsorship.

    Article 20. Honorarium for External Activities

    1. For lectures, seminars, debates, publications, etc. related to one’s duty requested by external parties, employees must report the request and honorarium in advance to the team leader and audit department.
    (If reporting was unavoidable before the activity, it must be reported afterward.)
    2. Honorarium and conveniences received due to duty-related external activities must comply with the requesting institution’s standards and must not exceed socially acceptable limits.
    (Under the Anti-Graft Act, current caps are KRW 400,000 for public officials, KRW 1,000,000 for teachers and journalists, applied per lecture hour or per article.)

Daedong Gear Co., Ltd. CEO: Seoh Jong-hwan Business Registration No. : 619-81-3305

Address : 42, Gongdan 1-ro, Sanam-myeon, Sacheon-si, Gyeongnam 52528, Republic of Korea Tel: +82-55-851-2300 E-Mail : d21200@deadong.co.kr

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