Achieving sustainable, shared growth with business partners
through fair trade relationships based on trust.
Dear POSCO A&C
Family Members!
In accordance with the Group's ethical management policy of "doing the right thing the right way," POSCO A&C has been introducing and operating a Fair Trade Compliance Program since 2009 to establish fair subcontractor transactions and achieve balanced development from mutually equal positions between companies.
As a result of these efforts, following 2023, we achieved an AA grade in the Korea Fair Trade Commission's CP evaluation in 2024, being recognized as a company that has established an exemplary fair trade compliance system.

In 2025, we will continue our efforts so that all employees practice compliance management based on ethical consciousness and further spread the fair trade compliance culture, enabling mutual prosperity and sustainable development with all stakeholders. We request the following:

First, let us remain faithful to principles and fundamentals for compliance with fair trade-related laws and regulations.
To prevent legal violations, we must remain faithful to principles and fundamentals. Fair trade compliance is a core value and behavioral standard that all employees must observe, beyond legal requirements.
We must establish standards for fair transactions and legal compliance, uphold principles, prevent legal violations, and achieve company trust and sustainable growth.

Second, let us establish a foundation for sustainable development through mutual prosperity with stakeholders.
Fair trade compliance is an essential foundation for mutual prosperity with all stakeholders, including partner companies.
We build a trustworthy business environment through fair and transparent transactions and support long-term partnerships and growth with partner companies.
Through this, let us strive to become a company that grows together with sustainable development.

Third, let us spread a fair trade compliance culture by practicing the values of fairness, transparency, and ethics across all fields.
Our company aims to become a transparent and trusted organization by promoting a fair trade compliance culture.
Let us strengthen our fair transaction and ethics compliance culture by ensuring all employees can actively practice compliance through participation in fair trade education and improving incorrect practices, thereby preventing the recurrence of the same problems.

In 2025, a year of greater uncertainty than any other, we must remain faithful to the principles and fundamentals for fair trade compliance in any situation.
By practicing fair trade compliance with responsibility in our respective positions, we will be able to achieve stable and sustainable growth.
We ask all employees to keep these essential principles in mind and do their best to practice them, turning crises into opportunities.


January 2025
POSCO A&C CEO Jeon Huntai
What is a Fair Trade CP? (CP: Compliance Program)
An internal compliance system including education and supervision that companies independently establish and operate to comply with fair trade-related laws and regulations.

CP 8 Core Elements
Categories
  • 1. Establish and implement CP standards and procedures
  • 2. Top management's commitment and support for compliance
  • 3. Appoint compliance officers responsible for CP operations
  • 4. Develop and utilize compliance manuals
  • 5. Conduct continuous and systematic compliance education
  • 6. Establish internal monitoring systems
  • 7. Sanctions against executives and employees who violate fair trade laws
  • 8. Effectiveness evaluation and improvement measures
Why CP is needed?
  • Strengthen competitiveness and fair trade capabilities
    Corporate competitiveness enhancement and continuous development are possible through fair trade compliance efforts
  • Prevent losses from legal violations in advance
    When legal violations are detected, companies face not only economic burdens such as fines, damages, and litigation costs, but also tangible and intangible losses, such as social image deterioration due to reports of legal violations
  • Enhance internal and external credibility
    By announcing CP adoption internally and externally and operating it substantially, the corporate image is enhanced as a company practicing transparent and fair management
  • Minimize damage from legal violations
    When operational staff accidentally violate fair trade-related laws and regulations, they may receive benefits such as penalty reductions from the competition authorities
Execution Overview
Background
The Fair Trade Act seeks to promote the balanced development of the national economy by promoting fair and free competition between companies, encouraging creative business activities, and protecting consumers.

POSCO A&C published the Fair Trade Manual to comply with the Fair Trade Act and provided employees with the conduct standard for compliance with the Fair Trade Act. We have been endeavoring greatly to eliminate business practices that breach the Fair Trade Act cyclically.

As part of such endeavor, we adopted the Compliance Program (CP) in 2009. The CP manager responsible for CP operation is appointed by the board of directors.
Operation Status
Reporting Procedure upon Detecting the Fair Trade Act Violating Activity
Relevant Regulations (Regulations of Fair Trade CP Operation)
Article 16 (Obligation)
③ Each Office head and CP practice leader shall report to the CP manager immediately, when they detect any legislature violation in carrying out their duties.
Reporting Process
Reporting Method and Details
Details Reporting Timing Subject to Report
in the First Phase
Subject for
Final Report
Reporting Method
Fair Trade Act
Violations
Immediately
after Recognition
Members of
self-compliance council
(Department Head
and CP Practice Leader)
CP Manager
or Department
in charge of CP,
Executive
First Phase Reporting
: Telephone
Final Reporting
: In Writing
What is Fair Trade Autonomous Inspection?
As a pre-monitoring system of law violations using checklists, this inspection is to let staff inspect violations of fair trade for themselves on their work so as to prevent the Fair Trade Act violations in advance.
Autonomous Inspection Diagram