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Governance

Compliance

Compliance Framework

Compliance Organization

SK D&D strictly adheres to laws and regulations to uphold corporate ethics and ensure transparency and fairness in business operations. To this end, the company operates an Audit Committee under the Board of Directors, along with a Chief Compliance Officer and a Compliance Support Organization (Legal/SCM Department).

The Audit Committee not only oversees the company’s accounting and financial audits but also supports compliance with corporate law by enhancing the legality and appropriateness of directors’ and management’s duties. The Chief Compliance Officer continuously monitors legal risks arising from business activities and operations, providing review opinions on adherence to compliance control standards to the Board of Directors. The Compliance Support Organization, comprising the Legal and SCM Departments, supports overall compliance activities through internal process audits, manages business and investment-related risks, reviews inter-affiliate transactions, and contributes to improving corporate governance.

Compliance Governance Structure and Role of the Chief Compliance Officer

2024 Compliance Control Standards Compliance Review Activities

Review AreasReview Details
Compliance Risk Management

Conducted compliance reviews across all business operations of the company.

  • Implemented risk prevention measures through seminars on construction contract structures and payments.
Compliance (Fair Trade)

Conducted regular Compliance Surveys for partner companies.

  • Checked for any violations of ethical management by partner company employees involved in procurement.
  • Monitored partner-related risks.
  • Assessed unethical behavior and contract performance during contract evaluations.
Compliance (Ethical Management)

Reviewed activities related to ethical management practices.

  • Conducted Ethical Management Practice Surveys and reflected results in 2025 activity planning.
  • Requested cooperation from relevant departments to strengthen procurement management and provided separate training.
  • Handled whistleblower reports on ethics violations.
  • Performed self-inspections of processes and internal systems to prevent fund misappropriation risks.

Internal Accounting Control System

SK D&D has established internal accounting control regulations and operates an internal accounting control system to enhance the reliability of its financial statements by ensuring compliance with laws related to financial disclosures. The Internal Accounting Control Officer, appointed as an executive with expertise in accounting or internal controls, oversees the design and operation of the system and assesses its effectiveness. This officer reports directly to the Board of Directors and the Audit Committee. The Audit Committee evaluates the operational status of the internal accounting control system and reports its findings to the Board of Directors. The CEO holds ultimate responsibility for managing and operating the internal accounting control system and reports the results to the General Meeting of Shareholders, the Board of Directors, and the Audit Committee. Detailed regulations and operational results are publicly disclosed through the electronic disclosure system (DART) and the company’s website via business reports and internal accounting control system reports.

Fair Trade

Four Major Fair Trade Guidelines

SK D&D has adopted and implemented the four major fair trade guidelines recommended by the Fair Trade Commission to establish reasonable and fair trading practices with its partners. These guidelines consist of the establishment and operation of an internal review committee, contract execution, issuance and retention of written documents, and the selection and management of partners. Through the Legal/SCM Department, SK D&D ensures compliance with these four guidelines by conducting fair partner selection and contract management. The company also autonomously monitors adherence to fair trade laws and regulations to proactively prevent any unfair trade practices with its partners.

Four Major Fair-Trade Guidelines

Guidlines for establishing and operating the internal review committeeGuidelines for proper contract executionGuidelines for proper issuance and retention of written documentsGuidelines for partner selection and management
Contribute to establishing a fair trade order and build a win-win cooperation system based on trust with partners.Minimize violations of laws such as the Subcontracting Act and establish rational and fair trading practices.Raise awareness regarding written document issuance under the Subcontracting Act and promote a fair subcontracting trade order.Ensure autonomy, transparency, and fairness in partner selection and the management of partner pools.

Fair Trade Strengthening Activities

Fair Trade Compliance Management

SK D&D conducts annual assessments to ensure compliance with fair trade-related compliance control standards, aiming to prevent unfair trade practices and establish a robust internal compliance system. Through interviews with responsible personnel, contract reviews by type, and legal examinations, identified improvement tasks are implemented collaboratively with relevant departments.

Additionally, SK D&D proactively manages fair trade compliance by conducting prior reviews of contract amount increases in the business support sector and providing legal support for new business initiatives. As a result of these proactive fair trade risk management activities, no violations of fair trade laws or monetary penalties related to such violations have occurred in the past three years. In response to increasing societal demands for ESG management, SK D&D plans to introduce a Fair Trade Compliance Program (CP). This includes reviewing relevant laws, analyzing risk factors, and refining internal operating regulations and training systems. The company aims to design and pilot an internal monitoring program for compliance in the near future.

Fair Trade Violations and Sanctions Status
CategoryUnit202220232024
Number of Unfair Trade Practices (e.g., anti-competitive acts, monopolies)Cases--0
Number of Violations Due to Unfair Trade PracticesCases000
Monetary Fines Due to Unfair Trade PracticesMillion KRW000
Number of Non-Monetary Sanctions Due to Unfair Trade PracticesCases--0
Number of Lawsuits Due to Unfair Trade PracticesCases--0
Number of Monetary Sanctions Due to Legal or Regulatory ViolationsCases000
Fair Trade Violations and Sanctions Status for Subsidiaries (DDI, DDPS)
CategoryUnit202220232024
DDIDDPSDDIDDPSDDIDDPS
Fair Trade Violations and Sanctions Status for Subsidiaries (DDI, DDPS)Cases000000
Monetary Fines Due to Unfair Trade PracticesMillion KRW000000
Number of Monetary Sanctions Due to Legal or Regulatory ViolationsCases000000

Fair Trade Training

SK D&D leads efforts to establish a culture of voluntary compliance with fair trade by conducting annual fair trade training not only for the purchasing department but for all employees across the organization. In 2024, to enhance employees’ awareness of fair trade, training was provided to all staff covering topics such as ESG supply chain management, fair trade compliance, and legal adherence.

Fair Trade Training Performance
Target GroupTraining ContentUnit202220232024
All EmployeesSupply Chain ESG Management (Anti-corruption, Fair Trade, Compliance, etc)Total Training Hours58258.7577
Training Hours per Person0.22100.43