SK Square regularly conducts internal management diagnosis(audits) for the company and all subsidiaries where it exercises substantial management rights to prevent risks related to unethical behaviors and practice prevention-centered ethical management. In addition, SK Square continuously improves the internal audit level for the company’s major functions through self-checking systems.

To ensure high level of compliance with ethics-related requirements and values, we conduct regular ethical management audits on ourselves and on our subsidiaries at least once every three years. In addition to our self-examination, SK Group conducts regular ethics audit on its subsidiaries, including SK Square, to ensure objectivity and absence of bias. Such audits are extensive and are conducted for months on end.

These audits allow us to investigate into how well our organization is performing on conforming to the ethical standards of the industry and society. The objective is to identify, prevent and eliminate unethical behavior. The results of the audit on ethical standards are regularly reported to the Audit Committee, at least annually. The audited departments and subsidiaries establish/submit/implement measures to prevent recurrence of all matters that have been identified as requiring improvement as a result of the audit. The ethics management department checks the implementation results and makes every effort to prevent similar unethical risks from recurring. In addition, if individual corruption or misconduct is detected, it is strictly handled according to the principle of zero tolerance. The committee provides feedback to the management and the Ethical Management Team, and through further self-analysis and diagnosis, we continue to improve ways to ensure prevention and elimination of any unethical behavior.

Since the incorporation of SK Square in November, 2021, Year 2022 marked the very first year for our audit of ethical standards. Our ethics experts devoted their know-how and expertise to ensure we are starting off on the right foot. The results were as follows, and the additional audits scheduled to be completed in 2023 are as follows (both in alphabetical order)