Compliance Risk Management

At LGE, we implement compliance management through the establishment of a compliance risk management system and the establishment of relevant organizations, in addition to setting compliance goals and managing performance. We provide various programs to our employees, such as compliance surveys and training, in order to help them internalize compliance management, while operating reporting channels with a view to creating a sound and transparent corporate culture.

  • Compliance Risk Management System

    • We reorganized and reinforced the personnel of the Compliance Bureau operating under the CEO
    • Compliance Team: Prevention and mitigation of compliance risks through compliance program design and operation, risk sensing and monitoring
    • Compliance Management Team: Legal and policy support including providing advice on global regulatory trends and compliance,
    • Compliance Investigation Team: Minimizes the possibility of compliance risks through ongoing and periodic

  • Goals and Plans for Compliance Risk Management Mid-to Long-Term Goals

    • Early identification of compliance risks and establishment of a preemptive response system
    • Upgrading compliance coverage and operations
    • Continuous improvement of worksite-oriented autonomous management systems

  • | Mid-to Long-Term Goals |

    • Early identification of compliance risks and establishment of a preemptive response system
    • Upgrading compliance coverage and operations
    • Establishment of worksite-oriened autonomous management systems

  • |Implementation Plans |

    • Strengthening of monitoring and responses to internal and external issues such as laws and regulations, international standards, and stakeholder requirements.
    • Evaluation of performance in terms of on-site risk mitigation and customized compliance consulting.

  • Compliance Program Cycle

Identification & Evaluation • Research recent regulatory developments • Risk sensing and risk pool management • Evaluate levels of risk management Improvement • Online/offline compliance training • Improve work policy and processes • Provide compliance advice and consulting • Respond to stakeholder requests Inspection • Compliance diagnosis and actions against violators • Inspect risk management activities • Operate key performance indicators in terms of compliance • Employees’ compliance self-check Reporting • Compliance council • Report to the BOD • Disclose to the public Identification & Evaluation • Research recent regulatory developments • Risk sensing and risk pool management • Evaluate levels of risk management Improvement • Online/offline compliance training • Improve work policy and processes • Provide compliance advice and consulting • Respond to stakeholder requests Inspection • Compliance diagnosis and actions against violators • Inspect risk management activities • Operate key performance indicators in terms of compliance • Employees’ compliance self-check Reporting • Compliance council • Report to the BOD • Disclose to the public
  • Compliance Risk Management Organization

HQ Compliance Bureau* / Divisions Compliance Manager** / Subsidiaries Compliance Manager** Business Division Compliance Manager** Risk Owner*** / Risk Owner**** / Risk Owner **** HQ Compliance Bureau* / Divisions Compliance Manager** / Subsidiaries Compliance Manager** Business Division Compliance Manager** Risk Owner*** / Risk Owner**** / Risk Owner ****
* Manages compliance matters at the company level
** Operates and supports compliance programs for relevant organizations
*** Responsible for managing corporate risks prioritized on a company-wide level
**** Responsible for managing risks of relevant organizations
  • Compliance Self-Check Surveys

    • Employees voluntarily check their level of compliance in terms of risks that are prioritized on a company-wide level
     - bribery, discrimination, sexual harassment, personal information, competitive information, collusion through contacting competitors, intellectual property rights, insider trading, advertising, quality

As of 2020
Division Survey targets
All 48,105
Korea 29,304
Overseas 18,801
Division Survey participants
All 45,574
Korea 27,531
Overseas 18,043
  • Provision of Customized Online Compliance Training

    • We organize training into courses subdivided by job, regionally specialized courses are operated in North America and the UK.
    • We Develop courses in collaboration with compliance training agencies and provide training content with various languages (Korean, English, Chinese, Spanish, Portuguese, Japanese)
    • Employees who have completed the training program are requested to submit the Pledge of Online Compliance (heads of organizations/general employees)
    • Establishment of Intensive Fair Trade Training Course for international sales staff both domestically and overseas

Results of Online Compliance Education
Category Online training – Korea
Subcategory Training targets
2018 29,715
2019 29,845
2020 29,304
Category Online training – Korea
Subcategory Training participants
2018 27,342
2019 27,578
2020 27,531
Category Online training – overseas
Subcategory Training targets
2018 18,253
2019 18,417
2020 18,801
Category Online training – overseas
Subcategory Training participants
2018 15,807
2019 16,389
2020 18,043
Category Online training – total
Subcategory Training targets
2018 47,968
2019 48,262
2020 48,105
Category Online training – total
Subcategory Training participants
2018 43,149
2019 43,967
2020 45,574
Offline Compliance Training Courses
Classification Training for new team managers
2018 leaders
2019 148(9)
2020 201(5)
Classification Leadership training for expatriate employees
2018 210(6)
2019 165(6)
2020 154(5)
Classification Training for new entrepreneurs
2018 -
2019 32(1)
2020 31(2)
Classification Onboarding training for expatriate management staff
2018 -
2019 8(1)
2020 24(2)
*Offline education was mostly replaced by online education due to the COVID-19 crisis.
  • Operation of Compliance Reporting Channel

    • An integrated hotline operated through LG Group’s online complaints system (http://ethics.lg.co.kr)
     - Reporting corruption, illegal acts, acceptance of money or favors, entertainment and wining and dining, and sexual harassment
     - Types of report: accepting gifts from stakeholders, improper equity participation in the companies of suppliers, lack of transparency in supplier selection, Illegal/unfair use of company assets, manipulation of documents/numbers, and false reporting, etc.

  • Provision and Company-Wide Dissemination of Legal Advice

    • Analyze major domestic and international laws and regulations in order to provide compliance advice and business guides
    • Frequently monitor the status of the enactment and revision of laws, share notes on major issues, and hold briefing sessions

  • Strengthening of anti-corruption compliance activities

    • All employees conduct business in a fair and transparent manner in accordance with the relevant principles and standards. Moreover, any corruption related to acquiring or maintaining business by illegal means, such as bribery, is prohibited.

    • Efforts to raise anti-corruption awareness among employees and prevent violations of related laws and regulations are as follows:
     - Conducting voluntary assessments of risk likelihood and impact at each place of business
     - Conducting voluntary inspections of employees' compliance with the relevant codes of conduct
     - Online training for all employees and collection of pledges outlining employees’ commitment to practicing compliance

  • Compliance Committee

    • Reinforce the leader's commitment to compliance and promote a culture of compliance within the organization
    • Review major legal regulations and sanctions by country and discuss practical issues and risks in the field
    • Establish an annual compliance risk improvement activity plan for worksites through the compliance committee and occasionally share progress