To select new suppliers, we examine them according to the following six criteria: 1) Purchasing, 2) Quality (including Eco-partner), 3) Environment and Safety, 4) Labor and Human Rights, 5) Anti-corruption, and 6) Finance. Our team of experts carefully selects new suppliers and conducts direct on-site audits in each supplier’s specific areas.
Audits of technical capabilities, supply chain responsiveness, supplier management, information security, international certifications
Audits of quality management policy, processes and systems (for imports, shipment, hazardous materials, etc.)
On-site audits of the 26 items based on the RBA* criteria (essential items include fire extinguishing systems, hazardous materials and waste, and wastewater treatment facilities)
*Responsible Business Alliance (RBA) is an industry coalition dedicated to advancing corporate social responsibility in global supply chains
On-site audits of the 19 items based on the RBA criteria (eight items include prohibition on forced labor, prohibition on child labor, compliance with regulations related to working hours, accurate calculation and payment of wages, provision of wage statements and prohibition on delay in the payment of wages, proper payment of social insurance fees and other withholding taxes and contributions, prohibition on inhumane treatment, and prohibition on discrimination based on personal traits)
Preliminary audit and assessment of potential corruption risks at suppliers, evaluating their compliance with Korea’s Improper Solicitation and Graft Act and international anti-corruption regulations and standards
Evaluation of each supplier’s credit rating and financial conditions in consultation with external specialists
Since 2022, we have conducted additional surveys and interviews with prospective suppliers to better evaluate their risks related to forced labor, inhumane treatment, and discrimination. Through these surveys and interviews, we are able to verify their work environment with greater accuracy – with regard to recruitment channels, recruitment fee payment, dormitory allocation, non-discrimination, and working hours – and screen only the qualified suppliers.
A total of 99 companies were registered as new suppliers following an evaluation. None of these companies were rejected due to non-compliance with labor laws and human rights regulations. However, one company was rejected because it failed to comply with environment and safety requirements, such as not installing sprinklers.
Pre-registration evaluations were performed on 116 companies. While all of the candidates met the essential labor and human rights standards, two companies failed to meet environment and safety-related standards such as hazardous chemical management, which resulted in their disqualification in the final selection.
This program allows companies wishing to be our suppliers to submit business proposals. Once proposals for parts and materials applicable to our products are submitted, we perform evaluations based on our internal standards to verify potential suppliers' qualifications. In 2023, we reviewed a total of 818 proposals, accepted 76 among them, after which we applied their parts and materials to our products.