C O N T E N T S

The LG Credo 02
LG Way and Jeong-Do Management 03
LG Code of Ethics
Preamble 06
Chapter 1 11
Responsibilities and Duties to Customers
Chapter 2 19
Fair Competition
Chapter 3 27
Fair Transactions
Chapter 4 37
Basic Ethics of Employees
Chapter 5 59
Corporate Responsibilities for Employees
Chapter 6 65
Responsibilities to the Nation and Society
Supplementary Provisions 73
LG Ethics Hotline 79
 LG Code of Ethics
The LG Credo LG Way and
“Jeong-Do” Management

The LG Credo What is LG Way?

LG believes in People-Oriented Management and through its practice we The LG Way is the management philosophy pursued by LG managers and
employees of 'Customer-Value Creation' and 'People-Oriented Management'.
aim to become the market leader in customer value innovation. In doing so, It is based on LG's strategic vision to become 'No. 1'. The LG Way is
we strive to fulfil our duties to our stakeholders and make meaningful implemented according to the high ethical standards of behavior delineated by
contributions for the benefit of our society. the "Jeong-Do" Management.

LG pursues sensible business expansions and seeks to prosper with our What is “Jeong-Do” Management?
customers by learning from them and providing them support while "Jeong-Do" Management represents LG's unique code of conduct. "Jeong-Do"
Management does not only stand for ethics management. True "Jeong-Do"
upholding the principles of the free market economy.
Management goes beyond ethics management. It encompasses producing
substantial results with the knowledge to thrive in a competitive world.
LG firmly believes that our employees are the source of our value creation.
The real spirit of “Jeong-Do” Management is to work diligently to improve
It is our responsibility to share this belief with our people and build mutual
essential competitiveness of the LG while preserving the integrity and pride of
trust in order for us to establish an organizational culture in which creative being part of the LG family.
thinking and individual autonomy thrive and talents are actively nurtured.
When "Jeong-Do" management was implemented as LG's code for work ethics,
the result was LG gaining the full confidence of its customers as it achieved
LG employees in return must make best efforts to develop individual consistent, and healthy growth.
capabilities and skills that are necessary to accomplish their tasks.
What are the structural elements of the “Jeong-Do” Management?
LG’s goal is to put forth collective efforts in order to achieve sustainable The “Jeong-Do” Management consists of 3 elements: fair competition through
and everlasting growth as the world’s top business group. integrity, fair transaction and performance.

“Jeong-Do”
Management

Fair Fair
Integrity transaction competition

Behavioral Principles
Work transparently Provide equal Improve capabilities to
according to principles and opportunities and fair win competitions fairly.
standards. treatment in every
transactional relationship.

2 3
 LG Code of Ethics

“
LG CODE OF ETHICS Structure

• Preamble
Preamble • Duties of Employees
All efforts to accomplish ‘No. 1 LG’ should be made on the
basis of the “Jeong-Do” Management.
• 1. Respecting Customers

We shall not focus on short-term achievements, but Chapter 1 • 2. Creating Value

Responsibilities and • 3. Providing Value
further our endeavor toward being the No.1 Company that Duties to Customers
can last 50 years, or even 100 years. We have witnessed
• 1. Pursuing Free Competition
the fall of many prominent enterprises, blinded by Chapter 2
• 2. Complying with Laws and Regulations
Fair Competition
immediate profits. Only corporations that demonstrate
integrity can gain a long-lasting reputation and thus • 1. Equal Opportunity
achieve greatness. With this in mind, it is our responsibility Chapter 3 • 2. Fair Transaction Process
to uphold “Jeong-Do” Management with unwavering Fair Transactions • 3. Pursuing Mutual Growth
commitment.
• 1. Basic Ethics

“The world calls for transparent management, which is • 2. Accomplishing Missions

aligned with our “Jeong-Do” Management. Dishonest Chapter 4 • 3. Self-development

Basic Ethics of Employees • 4. Fair handling of Job
practices, if any, shall be abolished, and management by
• 5. Avoiding Conflict of Interests with the
basics and principles will be constantly upheld.” Company

Koo Bonmoo, the chairman of LG Group “ Chapter 5

Corporate Responsibilities
for Employees

Chapter 6
• 1. Respecting Humanity
• 2. Fair Treatment
• 3. Promoting Creativity

• 1. Rational Business Operation

• 2. Protecting Stockholders’ Returns
• 3. Contributing to Social Development
Responsibility to the
• 4. Conservation of the Environment
Nation and Society

4 5
 LG Code of Ethics
Preamble Preamble

Preamble Duties of Employees

LG At LG, we share and believe in two key corporate management Guidelines for (1) All company employees shall learn their roles, acknowledge and
Code of philosophies: 「Creating Value for Customers」 and 「People oriented Practice observe the LG Code of Ethics and corresponding regulations,
Management」. Based on these philosophies and in the spirit of our and practice Jeong-Do Management when executing business
Ethics
Management Charter, we strive to promote autonomous duties.
management and responsibilities.
(2) All company employees shall promptly report to the Ethics
Our interest is to uphold the tenets of the free market economy, Bureau1) in accordance with the specified procedure when they
which embodies the spirit of free and fair competition. Committed or others violate the Code of Ethics.
to attaining our goal of becoming a world-class global company, LG
will continuously pursue mutual benefits of our stakeholders based ① Employees can elect to report ethics violations directly to their
on trust and cooperation. supervisors before submitting to the Ethics Bureau. Supervisors
must then report to the responsible executive prior to submitting
We hereby decided to adhere to our Code of Ethics as a standard relevant facts to the Ethics Bureau according to procedures
for moral conduct and judgement of values. governing report content.
② All company employees shall acknowledge that ignorance of the
LG Code of Ethics and corresponding regulations does not
exempt them from their responsibilities.

(3) All company employees must complete the 「Jeong-Do

Management Pledge of Practice」 and submit to the Company
on a periodic basis.

1) 
6 Ethics Bureau is an organization responsible for performing general duties in support of "Jeong-Do" 7
Management and ensuring compliance with the Code of Ethics.
Preamble

Jeong-do Management Pledge of Practice

(Executives and Employees)

① The 「Jeong-do Management Pledge of Practice」 shall be filled and

submitted when joining the Company or being promoted.
② Method for submitting the 「Jeong-Do Management Pledge of
Practice」 (online & offline), and the management department shall
be determined by each company.
③ Standard Form

「Jeong-do Management Pledge of Practice」

In conducting business tasks, I hereby pledge to obey the following:

1.. To respect team members, work towards mutual development with business
partners through fair transaction, create and provide the best value to
customers through fair competition and to work hard to fulfill responsibilities
and obligations related to stakeholders and society.

2. To create an intern Jeong-do Management culture as a LG Employee and to

work hard to fulfill responsibilities and duties in order to practice the Jeong-
do Management.

3. I understand that ignorance of LG Code of Ethics regulations does not

exempt me from responsibilities when performing my duties. I promise to
obey the LG Code of Ethics and related regulations and to never violate such
rules.

4. Unfair transactions, illegal actions or irregularities by LG Employees must be

reported immediately to the Company. Likewise, unfair transactions, illegal
actions or irregularities by business partners must also be reported
immediately to the Company.

5. I shall perform my duties to cooperate, including the submission of materials

requested by the Company, in case of regular and irregular investigations of
unfair transactions and illegitimate/improper acts that violate the LG Code of
Ethics.

6. I shall bear full responsibility for all consequences that may arrive from my
actions if I violate this agreement.

Date. . .

Department:
Employee no.:
Name: (SIGNED OR SEALED)

8
 CHAPTER 1
Responsibilities and
Obligations to Customers
Our customers form the foundation of our no period and
LG will always hold their views in the highest regard.
We seek to earn unconditional trust from our customers
by continuously providing them with practical value.

New York, USA

 LG Code of Ethics
CHAPTER 1 CHAPTER 1
Responsibilities and Obligations to Responsibilities and Obligations to
Customers Customers

1. Respecting Customers 2. Creating Value

LG 1) We value the opinions of our customers and validate their true LG 1) We work hard to create value for our customers. Through
Code of needs at all times. We regard our customers as the primary Code of customer satisfaction, we can build the foundation of our
standard for our decisions and conduct. sustainable prosperity.
Ethics Ethics
2) We continuously create practical value that fully benefits and
satisfies our customers.

Guidelines for (1) Customers have top priority, thus all cases are to be judged and Guidelines for (1) Generate innovative and differentiated ideas.
Practice evaluated from the viewpoint of consumers. Practice
(2) Stay one step ahead of customers and anticipate their needs
(2) Do not engage in unethical acts that can damage the effectively.
customer's benefits.
(3) Always search for better ways to accomplish your tasks and
(3) Maintain confidentiality of all information regarding customers. goals.
Do not disclose such information or use it for other purposes
without receiving prior consent from the customer or as
regional by applicable law.

12 13
 LG Code of Ethics
CHAPTER 1 CHAPTER 1
Responsibilities and Obligations to Responsibilities and Obligations to
Customers Customers

3. Providing Value Q&A

LG 1) We are always true to our customers and never fail to keep our Q A new delivery contract was closed with a client
Code of word. company. However, it was discovered that problems
can occur when the product (which already received
Ethics quality guarantee) is used for extended periods in
2) We offer the highest quality products and services at affordable
prices and respond to customers’ requests promptly and cold weather conditions. The person responsible from
accurately. the client company requests delivery of the product
'as is' since it was not a test item they required, and
because product launch could be delayed if delivery is
delayed until the problem is resolved. What should be
done?

A Quality issues cannot be compromised with deadlines

Guidelines for (1) Provide accurate information to enable customers to select the and must be considered from the viewpoint of the final
Practice best products and services. customer who will be using our product. Therefore, if a
possible quality control issue exists, it must definitely
(2) Provide the best products and services that exceed customers’ be resolved.
expectations.

(3) For items that require safety precautions, make sure that
customers have the information needed to fully understand the
details.

(4) Ensure customers do not feel dissatisfied due to defective

products or by providing poor service, etc. Respond promptly
and accurately to reasonable requests of refund, exchange or
services.

14 15
 LG Code of Ethics
CHAPTER 1
Responsibilities and Obligations to
Customers

Compete fairly! LG Twin Wash after 6 years of development, but as different countries
require thorough tests according to each environment, 2
more years of development were added to the process.
LG Electronics is
Attention should be given to problems of control of the
leading the market by
‘countercurrent phenomenon of residual water’ occurred in
changing the
the use environment of the US and the regulations to control
paradigm of washing
the approach of countercurrent water to the water tap to
machines.
less than 4cm that were solved by the research team during
the additional development period.
LG Twin Wash is an
innovative product
The thoroughly launched Twin Wash with its perfect
that enables
performance is arousing enthusiastic response from all
separating the laundry
corners around the world. It is all thanks to the dedication
and saving space by
and effort of the LG employees who tried at all times to
combining two washing machines into one for the first time
satisfy customer values by carefully researching about the life
in the world.
style of customers and their needs.
LG Electronics materialized the idea of "placing a washing
LG impressing customers by exceeding expectations with its
machine as a drawer" in the lower part of the existing
products, services and solution! Let’s not forget our pride of
washing machines after recognizing the great demand by
creating a better life for customers through our work!
customers of ‘separating’ the laundry. Obviously, it proved to
be a difficult achievement as the product required the
development of a 40% slimmer motor, a resonance control
(vibration amplification state), rapid drainage system, etc. From the ‘LG Washing Machines’ Innovation Surprising
the World’ – 70 Stories Celebrating the
It took 8 years to improve the technical perfection of the 70th Anniversary of LG
Twin Wash, more than 150 development personnel and an
investment of more than 20 billion won – 5 times more than
the creation expenses of a regular product.

The research team proposed the launching of the Twin Wash

16 17
 CHAPTER 2
Fair Competition
In all its business activities worldwide, LG shall gain
competitive advantage through fair methods by
respecting the laws and regulations of each region.

Hong Kong
 LG Code of Ethics
CHAPTER 2 CHAPTER 2
Fair Competition Fair Competition

1. Pursuing Free Competition Precautions related to the gathering and use of information

LG 1) We uphold the principles of the free market economic system Gathering confidential information on competitors from customers or
Code of and pursue open competition around the world. We earn our subcontractors is prohibited
customers’ trust through top-quality products and services.
Ethics When employing staff from previous competitors, do not under any
circumstances gather confidential information or request consultation from
2) We compete fairly and capably with our competitors and do not
competitors
interfere with their interests or exploit their weaknesses.
It is prohibited to provide information gathered directly from competitors
• Gathering information from competitors can be misunderstood as mutual consent
with competitors

It is prohibited to gather illegal information through survey agencies,

Guidelines for (1) Acquire general information on competitors through fair consulting companies and other specialists
Practice methods that will not be subjected to social criticism.

(2) Perform all types of activities to increase competitive Precautions related to the prohibition of unfair mutual consent
advantage through fair principles and methods.
① Do not plagiarize or infringe on competitors’ tangible/intangible Prohibition of mutual consent of prices and bidding with competitors
assets. • Agreement related to price calculation methods or the setting of prices, margin rate,
etc.
② Do not degrade competitors’ status or abuse their weaknesses. • Agreement related to successful bidder, bidding price, etc. in bids

(3) Do not inflict damage to customers and other businesses by Prohibition of mutual consent limiting product types, transaction quantities
unfairly colluding with competitors to set sales prices, sales and production facilities, etc.
conditions or market allocation. • Limitation of product/service types and quantities or expansion of production
facilities, etc.
(4) Obey regulations and guidelines related to fair transactions, and
immediately inform related department(s)in cases of Prohibition of mutual consent limiting competitors and transaction regions or
infringement or possible infringement. transaction partners
• Assignment of sales regions, allotment and fixing of traders, etc.

Prohibition of exchange of business information with competitors without

previous examination with the judicial affairs department

Prohibition of attending meetings with ambiguous purposes with competitors

• Can become an evasion of agreement or exchange of information, etc. with
managers and employees of competitors

20 21
 LG Code of Ethics
CHAPTER 2 CHAPTER 2
Fair Competition Fair Competition

2. Complying with Laws and Regulations Pledge of Compliance to Bribery Prevention Laws

LG 1) We conduct our domestic and overseas business activities in ① All employees must complete and submit the 「Pledge of
Code of strict accordance with local laws and regulations, and with Compliance to Bribery Prevention Laws」 when joining the company
respect to local business customs. or being promoted.
Ethics
② The department and methods (online & offline) related to the
「Pledge of Compliance to Bribery Prevention Laws」 shall be
determined by each company.
③ Standard form

「Pledge of Compliance to Bribery Prevention Laws」

Guidelines for (1) Compete through fair methods while respecting the regulations
I pledge to comply with the business principles of this Company based on
Practice and business customs and practices of related regions. the concepts of transparent and fair transaction according to the principles
of the free competition through equal participation in the performance of my
(2) Comply with all rules and regulations to prevent unfair duties, and with all rules and regulations related to corruption prevention
nationally and internationally according to the ‘Regulations related to the
competition, both nationally and internationally. Prohibition of Acceptance of Illegal Requests and Money and
① It is prohibited to ask or provide money or anything of value to a Valuables, etc.’ and the ‘Bribery Prevention Law related to Foreign Officials in
Overseas Transactions’.
public official (directly or indirectly) in order to receive a special
benefit or business advantage. 1. I shall observe the company policies regarding bribery in overseas transactions
and the prohibition of bribery in international commercial transactions.
② 「Bribery Prevention Law related to Foreign Officials in
International Business Transactions」 2. I acknowledge the laws and regulations prohibiting bribery in national and
overseas transactions and Company guidelines on prohibiting bribery in national
(Prevention Law Against Bribery in Overseas Transactions) and overseas transactions. I shall not commit bribery or express any intention
- It is prohibited to promise, provide or express the intention of to bribe foreign officials, etc. for the purpose of illegitimate gains regarding
providing bribery related to work to foreign officials directly or international commercial transactions.
indirectly with the purpose of gaining unfair advantages related 3. I shall fulfill my duties to monitor and supervise transactions to prevent bribery
to international transactions of foreign officials by overseas affiliates, or other third parties in international
commercial transactions, in compliance with the laws and regulations on
③ However, actions which do not violate the law and are within the prohibiting bribery in overseas transactions and company guidelines.
boundaries of socially accepted can be excepted.
4. I acknowledge that the Company will face losses and damages if the laws and
regulations on prohibiting bribery, or the Company guidelines are violated. I shall
(3) All employees shall complete and submit the 「Pledge of not raise any objection to any punishment and/or restitutions the Company
Compliance to Bribery Prevention Laws」 may impose on me for any violation of the related laws committed by myself.

Date. . .

Department :
Employee no .:
Signature :

22 23
 LG Code of Ethics

Q&A Q&A

Q I regularly attend business association gatherings and

Q It is common to miss sales opportunities due to the
often meet employees from competitors as such time spent in the customs clearance when launching
gatherings are also attended by other companies. a new product overseas. However, a local agent
However, during break times we sometimes discuss offers to solve this matter if the related agency is
prices or sales conditions, etc. Can this cause selected to represent the Company stating it is
problems related to collusion? common practice in the country to pay a separate
express charge to the customs representative. Is it a
problem even if the agent is responsible for handling
A Yes, only the sharing of ideas about prices or the matter?
production quantity, etc. during meetings with
competitors can be considered collusion. Such
situations must be avoided by informing participants A Direct or indirect bribery related to international
that discussion of those topics is strictly prohibited by transactions is strictly forbidden. In addition to being an
the Company's policies. Additionally, the Company’s infringement of international laws, it may seriously
Compliance Department must be immediately notified damage our corporate image. Therefore, during the
that the discussion of prohibited topics was promptly course of contract discussions, agents must be
avoided. informed that the offering or acceptance of briberies
related to the Company is unacceptable, and they
should be encouraged to respect such restrictions
through the contract or a separate pledge of
compliance.
Q Part of the technology used by a competitor was
disclosed from a new subcontractor that used to
conduct transactions with a competitor while
receiving a proposal for a new component. Would it
violate the Code of Ethics even if we are not using
this technology intentionally?

A One cannot be free from this responsibility even if the

unauthorized use of intellectual property rights was
done through a subcontractor.

24 25
 CHAPTER 3
Fair Transactions
All business transactions are based on the principles of
fair competition with equal opportunity guaranteed to all
entities. We build trust and cooperative relationships
through fair and transparent transactions pursuing long-
term mutual growth.

LG Electronics, UK
 LG Code of Ethics
CHAPTER 3 CHAPTER 3
Fair Transactions Fair Transactions

1. Equal Opportunity Precautions Related to the Selection of Business Partners

LG 1) LG offers equal opportunities to all qualified companies seeking

Prohibition of Limitations to transaction partners or transaction areas cannot
Code of Ethics to become our business partners. participation be applied without clear reasons in the selection or exclusion of
limitations specific companies
2) We register and select all applicants in a systematic manner
according to a fair and objective evaluation process.
Prohibition of Rejection of transactions without concrete reason such as legal
rejection of issues or disqualifications according to the Company’s
unilateral regulations
transactions

The application of different delivery price, quality conditions, etc.

Prohibition of without reason in order to favor or punish specific companies, or
discrimination adjust supply at ones’ discretion, or adjust priority order of
Guidelines for (1) Establish and utilize general regulations and systems related to transactions
Practice the [Business Partner Selection Process] to select and register
business partners based on a fair and transparent evaluation Receiving or offering favors to the person responsible or third
criteria in all transactions. parties with the purpose of influencing the selection of partners
Prohibition of
requests ※ The acceptance of favors related to the business received
(2) The [Business Partner Selection Process] shall include detailed from internal or external members must be reported
evaluation items and methods and the selection shall take into immediately to the Ethics Bureau.
consideration characteristics of the business.

(3) Provide fair opportunities to all business applicants according to

the principles and procedures established by the Company.
Additionally, specific companies cannot receive preferential
treatment or experience disadvantage without a legitimate
reason during the selection process.

28 29
 LG Code of Ethics
CHAPTER 3 CHAPTER 3
Fair Transactions Fair Transactions

2. Fair Transaction Process Precautions Related to Fair Trade Procedures

LG 1) We conduct all business transactions under equitable

circumstances. The terms and procedures of the transaction are Unfair transaction Discontinuing transactions with business partners or notably
Code of Ethics refusal prohibition decreasing transactions without cause
thoroughly discussed between the parties involved.
2) We never engage in any form of unfair transaction taking
Discriminatory The action of unfairly discriminating prices, transaction
advantage of any superior position. treatment conditions, etc. according to the transaction partner
3) We exchange transaction information through appropriate prohibition
procedures in a timely manner. Transaction results are evaluated
on a regular basis and mutual cooperation measures are taken. Prohibition of Selling products or services by force to customers of
forced competitors, such as tie-in sale, etc.
transaction

Guidelines for (1) Mutually agreed transaction terms based on coexisting • Selling products or services by force to those who have no
Practice principles must be obeyed through collaboration with business intention of purchasing them
partners, and sound opinions for the improvement and Prohibition of • Forced provision of economic benefits in return for transactions,
innovation of transactions shall be reflected in duties. status abuse or disadvantageous treatment during the transaction
during • Interfering with business partner’s management activities, such
(2) Regulations related to fair treatment during transactions with transactions
business partners and the unfair use of higher positions, as HR management, production, and transactions without just
mistreatment, etc. must be obeyed. cause

(3) Influence to obtain preferential treatment or to cause

disadvantage shall not be exercised in specific companies Prohibition of Requesting the condition of not making transactions with
without a fair reason. conditional competitors or other companies, or limiting the transaction
detention area or transaction partners
(4) Compensate business partners fairly for damages caused by transactions
errors on our part.
(5) Inevitable alterations to the transaction terms with business
partners must be reported to the executive board and the Prohibition of The action of unfairly disturbing business activities of other
disturbance of parties such as the unfair use of technology, unfair employment
superior before being approved according to the procedures business activities of personnel, moving of business clients, etc.
established by the Company; obtain agreement from the
business partner when necessary.
(6) Approval from the other party must be obtained when using its Prohibition of The action of providing excessive support to specific companies
technology or assets, and all information from business unfair support through unfair capital, assets, products, personnel support or
related to
partners provided for the transaction must not be revealed specific
addition of transaction levels, etc, causing relative disadvantage
externally without a written approval by the business partner. to other companies
companies
Losses to the operating activities of the related business
partner or to the outflow of human resources cannot be caused
by the provision of such information to competitors.
30 31
 LG Code of Ethics
CHAPTER 3 CHAPTER 3
Fair Transactions Fair Transactions

3. Pursuing Mutual Growth Jeong-Do Management Pledge of Practice (for business partners)

LG 1) We support the long-term growth of our dealers and vendors by ① The department and methods (online & offline) related to the
Code of Ethics enhancing their competitiveness through technological and 「Jeong-Do Management Pledge of Practice」 shall be determined
managerial assistance. We share the profits derived from by each subsidiary.
business innovations.
② The Ethics Bureau shall supervise the receipt of the 「Jeong-Do
Management Pledge of Practice」 from business partners, and the
2) We pursue mutual efforts and cooperate with our business
management levels.
partners in promoting a healthy business environment and
maintaining fair business processes. ③ Standard form

「Jeong-do Management Pledge of Practice」

We as a business partner (hereinafter referred as “We”, in conducting
Guidelines for (1) Establish and implement standards for supporting and helping
business tasks, hereby pledge to, actively practice the Jeong-Do
Practice the development of business partners. Management founded upon fairness, honesty and integrity, to maintain
integrity and transparency in all our dealings, and to pursue mutual growth
(2) Standards for helping the development of business partners by observing the following:
must state the requirements of business partners and include 1. We shall not pursue unfair dealings or commit illegitimate/improper acts in any
detailed operational standards, such as technical support and situation during transactions with your Company.
managerial guidance. 2. Unfair or irregular actions by managers or employees during transactions with
your Company will be reported immediately as a violation to the Jeong-Do
(3) Any profit generated from technical support or managerial Management to the report center (LG00 Ethics Office, Tel., Fax, http://).
guidance shall be fairly shared. 3. We shall do our duties to cooperate, including submission of materials
requested by the Company (e.g. documents required for investigation of unfair
dealings or illegitimate/improper acts), when We are requested to cooperate in
(4) To ensure that business partners adopt the Jeong-Do an investigation of unfair dealings and illegitimate/improper acts.
Management, the 「Jeong-Do Management Pledge of Practice」 4. With our keen respect to LG’s Jeong-Do Management, We are fully aware
must be submitted and administered accordingly. that eliminating all unfair dealings and/or acts of corruption is critical to ensure
that our business dealings with the Company are carried out in fair terms and
conditions. Therefore, We acknowledge that our compliance with this
agreement constitutes a critical element for our contractual and cooperative
relationship with the company. If We violate this agreement, We shall bear
responsibility for all consequences, but not limited to, termination of our
contract.
☞Two copies of this Agreement shall be made, one is to be held by the
business partner and the other is to be submitted to the Company.

Date. . .

Name of the Company :

Business Registration no. :
Attn: LG ( ) Representative Director : (SIGN OR SEAL)

32 33
 LG Code of Ethics
CHAPTER 3 CHAPTER 3
Fair Transactions Fair Transactions

Q&A Q&A

Q A previous senior who retired from the Company,

Q ‘A’ company, that was one of the existing business
established a new company and asked me to let his partners, demonstrated excellence in areas such as
company participate in the forthcoming bid. However, technology, price competitiveness, business response,
his company does not meet the predetermined bid etc. However, the lowest price in the forthcoming bid
standards on scale or experience. What should I do? was presented by ‘B’ company. Can the standards be
changed and a rebid be proceeded as the ‘B’ company
A The selection of business partners must be done fairly
had some quality problems in the past?

and transparently according to the operational

procedures and predetermined business partner A Predetermined procedures cannot be changed without
selection standards. Including a company that does not a fair reason. If the quality problem of ‘B’ company is
fulfill the standards just for the reason of being a likely to happen again, reasonable standards and
previous manager or employee of the Company is the procedures must be established to prevent it. If rebid is
provision of unfair special treatment and therefore unavoidable, a fair reason must be presented and a
should not be allowed. written agreement from the related companies must
be obtained stating that they will not appeal against
the decision taken.

Q Bid quotations are under progress and there is still

one company that did not submit its quotation yet.
However a close senior working in other department
asked me to inform him the quotations of other Q We are trying to reduce unit costs from business
partners in order to reduce the Company’s expenses.
companies so far, stating this information is related
It is believed that the related business partners will
to the work of his own team. Would it be a problem?
not face great loss as the cost of raw materials has
gone down.
A Disclosure of information related to bids is only allowed
to the person responsible for the bid and must be
strictly protected. Leakage of any information
A Fair reasons must be obtained when changes to
transaction terms with business partners are
(quotation cost, ranking information, name of
unavoidable. However, even if such reasons are secured,
companies, etc.) related to the selection of the
an agreement in advance with the related business
company during a bid is not permitted.
party must be obtained to avoid unfair transaction by
adjusting transaction terms unilaterally.

34 35
 CHAPTER 4
Basic Ethics of
Employees
Based on strong beliefs of honesty and fairness,
LG employees must build righteous values, continuously
develop themselves and perform their duties in a fair
manner in order to achieve their assigned missions.

LG Twin Towers, Korea

 LG Code of Ethics
CHAPTER 4 CHAPTER 4
Basic Ethics of Employees Basic Ethics of Employees

1. Basic Ethics of Employees 2. Accomplishing Missions

LG 1) LG Employees are proud of the Company and always act LG 1) LG Employees accomplish their duties in accordance with the
Code of honestly and fairly. Code of visions and policies of the Company.
Ethics Ethics 2) LG Employees perform assigned duties in the best possible and
2) LG Employees strive a high standard of morality and
professional manner while obeying relevant regulations.
continuously strive to maintain their personal dignity and the
Company’s honor. 3) LG Employees protect and preserve Company’s properties and
maintain confidentiality on information gained during
employment.
4) LG Employees openly communicate and cooperate with
colleagues and related departments to enhance work efficiency.

Guidelines for (1) LG Employees shall strive to behave morally and ethically to Guidelines for (1) Know Company policies and standards and observe them
Practice maintain the honor of LG Employees. Practice faithfully when conducting business tasks.

(2) LG Employees must obey the law or the Company’s (2) When conducting business tasks, employees shall clearly
employment regulations and shall not damage the Company’s understand their mission and do their best to accomplish the
name due to individual unfair practice not acceptable as a social mission, taking responsibility for the results.
practice.
(3) When serious situations damaging corporate assets have
(3) LG Employees shall not hinder a healthy organizational occurred or could occur, report them promptly and take
environment by starting and spreading rumors or creating an appropriate actions.
atmosphere of distrust.
① Verbal abuse/violence, sexual harassment, bullying or antisocial (4) Maintain confidentiality on all information acquired during
words or actions, etc. through the SNS (Social Networking employment. Do not disclose such information without prior
Service) or online media. consent of LG.

② Excessive cash loans out of social conventions between

employees within the Company.
③ Disorderly private life that may influence negatively duty
performance.

(4) Gift giving among employees within the Company is not

allowed.
① Exchange of presents, flower garlands, etc. due to promotion or
transfers, excessive intern protocols, etc.

38 39
 LG Code of Ethics
CHAPTER 4 CHAPTER 4
Basic Ethics of Employees Basic Ethics of Employees

3. Self-development 4. Fair handling of Job

LG 1) LG Employees understand the meaning of an ideal employee and LG 1) LG Employees carry out their duties based on honesty and
Code of constantly strive to meet these standards through self- Code of fairness, always seeking to contribute to fostering a sound
development. business culture.
Ethics Ethics
2) LG Employees do not accept any form of financial benefits from
stakeholders that may influence their clear judgement.
3) LG Employees do not engage or unethical behavior in performing
their duties.

Guidelines for (1) Employees shall understand the Company’s visions and targets Guidelines for (1) Employees shall prepare records and reports accurately and
Practice and actively strive to acquire required skills in order to achieve Practice honestly.
them.
① The manipulation of documents or figures, or false reporting are
subject to corrective action and judgment by the head of the
(2) Employees shall complete all required training programs, which related department, and should be considered as obvious
are critical components of the Company’s policies. misconduct capable of causing substantial harm or losses to the
Company.
② Ordering the falsification of documents or figures and following it
even if knowing it is wrongful are equally considered as
misconduct.
③ All the accounting documentation including the settlement of
accounts must be framed fairly according to the Tax Law and the
Corporate Accounting Standards, before being reported to
concerned persons such as stakeholders, etc.
(2) Regardless the reason, LG Employees or their family members
are not allowed to accept or request benefits1) from
stakeholders, and if such are accepted due to unavoidable
circumstances, it shall be reported according to related
procedures.
① As a rule, private transactions with stakeholders shall not be
conducted.
② Details not specified in the contract with stakeholders cannot be
required directly or indirectly.

40 1) 
Benefits from concerned parties are all types of actions recognized as bribery. 41
Please refer to the Forms of Prohibition for detailed contents.
 LG Code of Ethics
CHAPTER 4 CHAPTER 4
Basic Ethics of Employees Basic Ethics of Employees

Forms of Document and Figures Manipulation and Unfair Reporting

Guidelines for (3) Unfair transactions such as unfair share acquisition or joint Classification Contents
Practice investment, joint assets acquisition, etc. related to
stakeholders1) that LG can exercise influence over.
Manipulation ■Use of untruthful contents or numerical values
① The ownership of stocks of interested parties, joint investment, of documents - Data related to bid or Company’s results such as production,
joint assets acquisition, etc., must be reported according to and figures sales, etc., data about external market, etc.
predetermined procedures and handled as necessary.
② If this regulation is violated, the value related to the share based
on the real ownership relation can be considered as received from ■The action of correcting, deleting or disposing documents at
Delete, one’s discretion before the preservation period expires
the stakeholder. dispose according to laws and LG's management standards.
③ If the share is recognized as non-reported, the employee is documents at
one’s ■The action of concealing, deleting or disposing evidence data
responsible for all civil and criminal liabilities, and the transaction related to bid documentation, approval request, etc.
relations between the Company and the related business partner discretion
can also be severed.

(4) Employees shall perform the duties of their positions and titles, ■R  eporting unfair contents to the Company management or
and should not be involved in activities (even in private) that superiors
may incur losses to the Company or harm its reputation. ■S ubmitting or stating untruthful contents requested by the
internal audit department such as the Jeong-Do
① Possible risks must be recognized in advance, duties must be Unfair Management Organization, etc.
performed with care and attention, and problems must be reporting ■Transmitting untruthful contents to external stakeholders
handled with a sense of responsibility. Managers must strive to
■T he action of manipulating information intentionally to induce
supervise the work of subordinates.
misunderstanding by the information recipient, and reporting
② Unfair actions by employees must be ensured to do not reoccur contents falsely
or expand by sharing the fact with the related superior or the ■T he action of concealing facts or delaying or omitting reports
related department immediately, and effort must be made to
solve the matter.
③ Unfair directions or requirements related and unrelated to duties
by the abuse of position or rights are not allowed.
④ Decisions out of one’s duty rights and responsibility limits, or
promises not possible to be kept are not allowed.

1) 
42 Companies registered as a business partner and companies that the Company has influence on even if not 43
registered directly as a business partner.
 LG Code of Ethics
CHAPTER 4 CHAPTER 4
Basic Ethics of Employees Basic Ethics of Employees

Forms of Prohibited Money, Acceptance of Gifts Report Procedures of Money or Gifts Acceptance

Classification Contents Remarks

Provision of money or gift
(including money or gifts to congratulate special dates or for
■Cash, checks and other marketable condolence/ flower garlands)
Money
securities

Tuition ■Receiving tuition fees for lecturing in

fees events organized by concerned parties
YES Judge the possibility NO
of return
■Goods, vouchers of facilities, services, gift
Presents cards, admission tickets, sales promotions
or discounts limited to specific persons, etc.
Return directly Report to the department
Expenditure (bank transfer, delivery service, superior and to the Ethics
for ■Acceptance of congratulatory and It is prohibited to deliver directly, etc.) Bureau
congratu- condolences money or gifts (flower inform the
latory Enclose a Donate before reporting
and garlands, gold rings celebrating the occasion to return letter under the name of the to the Ethics Bureau in case of
condolence baby’s 1st birthday, etc.) stakeholders department superior (sending by perishable gifts
e-mail is also acceptable)
events

■Hire, set mortgages, free acceptance, Private Product handling by the Ethics
Report to the department Bureau
purchase, etc. of assets owned by transactions for superior and to the Ethics (interna auction / donation to
Borrowing / stakeholders such as movable assets / private Bureau welfare facilities, etc.)
purchase / real estate, etc. convenience and
sales ■Selling of Employees’ private assets to profits are Attach evidence of the return Announce (exceptions possible)
stakeholders prohibited (transfer confirmation, delivery contents related to the provider
service receipt, return e-mail, etc.) and enclose the name of the
department superior (sending by
e-mail is also acceptable)
Debt ■Payment of private debts such as credit
redem- card bills, credit payment, loans, etc. or
ption repayment by proxy

Unknown form
■Requirement of deposit related to loans
Deposit or offering of deposits
of loan or financial Completed
organization

■The action of borrowing money from

stakeholders, lending money to
Cash loan
stakeholders, and the payment of receipt
of related interests

44 ※ When declining or returning the gift immediately may be considered discourteous, report 45
to the Ethics Bureau first to arrange suitable return procedures.
 LG Code of Ethics
CHAPTER 4 CHAPTER 4
Basic Ethics of Employees Basic Ethics of Employees

Forms of Prohibited Meals, Entertainment and Convenience Acceptance Report Procedures of Meals, Entertainment and Convenience Acceptance

Classification Contents Remarks

Acceptance of Meals, Entertainment and Convenience
■The action of allowing concerned parties to
Burden of Return the expense
bear with eating and drinking expenses and in unavoidable cases
expenses other private expenses
Report to the department
Approval by the superior and the Ethics Bureau
■Receiving socially unaccepted treats for department superior
Meals is necessary even
business negotiations within the permitted
limit

Prohibited entering Judge the

such properties YES relationship with the NO
Unhealthy ■Entering unhealthy businesses and
business speculation business (casino, etc.) with Company’s work
stakeholders

■Gatherings for entertainment with

stakeholders except for official events must
be written approval Remit payment after handling it Remit payment from personal
- Golf, ski, fishing, traveling, etc. as the Company’s expenses finances
Sports /
trips ■Events unrelated to the Company’s work
invited by the stakeholders
- Training with the purpose of domestic or
international tourism/ seminars, etc.

In unavoidable cases
Accep- ■Accepting convenience from concerned for work reasons,
Send evidence to the
tance parties or, requesting the provision of receive the approval
Ethics Bureau (transfer
of convenience from concerned parties by the superior
confirmation, etc.)
conveni- - Training with the purpose of domestic or executive and pay
ence international tourism/ seminars, etc. fairly the required
price

■Asking or accepting sponsorship for the

Sponsorship
/ Company or department’s events Completed
support - Money, goods, etc.

■Promising or guaranteeing employment after

Future retirement from stakeholders
guarantee ■Promising transactions after retirement with
stakeholders

46 47
 LG Code of Ethics
CHAPTER 4 CHAPTER 4
Basic Ethics of Employees Basic Ethics of Employees

Forms of Prohibited Share Participation of Business Partners Report Procedures of Share Participation of Business Partners

Classification Contents
Business partner share (stocks, bonds, etc.) ownership1)
■Holding of stocks from all business partners with transactions
with the Company
Stocks ■Including all cases when the Company can exercise influence
when considering the relationship when the company is not Judge the possibility
registered as a business partner of report

■Acquisition of movable and immovable assets by joint YES

investment of capital with stakeholders by the Company
employees and their family members
Joint - Membership such as condominium, golf, health club, etc., real Report to the Ethics Bureau
investment / estate investment, etc.
joint asset
acquisition ■The action of owning business partners through transaction
relations with the Company by joint investment with
stakeholders under the name of the Company employees and
their family members
YES Judge the necessity NO
of arrangement

Concurrent ■The
 action of being registered as a Director in the company of Arrange immediately and prohibit
job with future sales
stakeholders or, having a concurrent job and performing real
business
duties to the related company
partners

Report the arrangement results

to the Ethics Bureau
(attach evidence)

Completed

1) 
48 Including ownership under the name of family members (parents, spouse, children, siblings and 49
the parents and siblings of the spouse), and borrowed names.
 LG Code of Ethics
CHAPTER 4 CHAPTER 4
Basic Ethics of Employees Basic Ethics of Employees

5. Avoiding Conflict of Interests with the Company Forms of Document and Figures Manipulation and Unfair Reporting

LG 1) LG Employees avoid personal behaviors or relationships that are Classification Contents
Code of in conflict with the Company’s interests.
Ethics 2) LG Employees do not use the Company properties to pursue ■Fixed Assets: exclusive & unauthorized use of tangible assets,
especially to generate private profits, with the exception of
personal interests. Misappro-
tangible assets used for business purposes, such as land,
priation
building, installation, machines, etc.
and Improper
use of ■Work assets: unauthorized use of assets for work such as
Tangible vehicles, PC, expensive supplies, office supplies, etc., provision to
assets family members, transferring of maintenance costs
Guidelines for (1)Employees shall not engage in the management of or invest in
businesses that are in direct/indirect competition with the Company. ■Corporate card: exclusive expense accounts, personal use, etc.
Practice
(2) Employees shall submit a report in advance and obtain approval if
employed by another company or perform business tasks similar to ■Using intangible assets for personal use or providing them to
the Company tasks in another company. Additionally, normal or fair competitors through disclosure of business/confidential
work cannot be disrupted by the management of private Improper information, product design or information systems etc.
businesses. use of
Intangible ■Gathering of information utilizing one’s position or personal
(3) If relatives of employees know stakeholders of the Company, the assets profit-making activities using knowledge
fact must be informed to the department superior. Contradictions
- Approval is required from a superior executive when external
with the stakeholders shall be avoided by changing duties, etc. lectures, business, consulting, etc. are necessary for work based
(4) Tangible/intangible corporate assets and expenses must be used for on knowledge obtained from the Company
the Company’s business activities and for authorized purposes only
according to related regulations. ■Private misappropriated donation of public money to
① If used for personal purposes, report the fact to the department stakeholders through unauthorized withdrawal of public money,
superior and executive; related expenses must be repaid to the personal loan, manipulation of accounting ledger, etc.
Misappro-
Company according to the applicable regulations.
priation
(5) All internal and external information related to work may only be and Improper ■Illegal use of the corporate card (illegal cash-back transaction)
used for authorized purposes and within permitted limits according use of ■Payment of expenses through false receipts
to related regulations. public money ■Abuse of the expense handling system without evidence
(personal use)
① Confidential and property information of the Company must be ■Unauthorized use or provision of the corporate card to family
protected from unauthorized disclosure. members/relatives
② Legal approval procedures and security principles must be obeyed
when sharing information with others.
③ Information protection includes the Company’s intellectual properties, ■Violation of the approval procedures and security guidelines
Violation of
personal information and information about third parties. when sharing information with others
the
information - Including personal information and information about third
(6) Potential conflicts of interest with the Company and cases where security parties
judgment is difficult should be reported to the person in charge as
well as the Ethics Bureau before being suitably handled.

50 51
 LG Code of Ethics
CHAPTER 4 CHAPTER 4
Basic Ethics of Employees Basic Ethics of Employees

Q&A Q&A

Q We had a get-together meal in a restaurant and a

Q I work in the Sales Department. My previous team
few team members got a little drunk and used swear leader who has already retired called me for dinner
words during a discussion. However, some people and he mentioned he is facing difficulties in the start
from the next room got a little upset and complained of a new business as an agent. Therefore he asked
stating it was a public place and that LG employees me to show the latest business strategy report,
did not seem to understand public etiquette. Our pricing policies, etc. of the Company to prepare his
team members got angry and a fight started company’s proposal. Can I show the required
between the two groups. A few days later the same information as he was not asking for the whole file?
people raised the problem on a cyber newspaper. Is it
also considered a violation to the Code of Ethics?
A Providing Company’s information to non-employees
including retired managers or employees is only
A LG Employees have the duty to act with dignity in and
permitted with an official approval when necessary for
out of the Company as a member of the LG family.
work purposes. The disclosure of documentation such
Even though the confrontation occurred after work
as the business strategies of the Company or pricing
hours outside the Company premises, it was still a
policies, etc. can cause serious losses to the Company.
violation of the Code of Ethics. LG Employees are
obliged to resolve such matters and to prevent their
recurrence. Any form of behavior that could damage
one's dignity as an LG Employee or evoke public
criticism (such as drunk driving, online swearing, etc.) is
prohibited.
Q I asked for additional purchase to a close agent as I
was worried about my assigned targets at the end of
the month. If I give product discounts or provide cost
support I think I can achieve my assigned target.
Q Colleagues from work opened an online chat room to
talk about work. However, during on of the A Unloading supplies is a representative example of
conversations, someone mentioned a colleague not unfair act, which hinders coexisting growth with
included in the chat room. At first they made business partners. Real joint growth can be expected
remarks about the colleague's personality, features, only through fair transaction and by respecting the
and clothing, but as the conversation progressed, position of others. The achievement of short-term
someone made a comment which could be results is not allowed as it can cause discomfort and
interpreted as sexual harassment. Should this be pressure on business associates and cause long-term
considered as poor humor, or as a problem? loss to the Company.
A
Criticizing or swearing at others in an online chat room,
etc. shared by many people hinders the creation of a
healthy organizational atmosphere and can seriously
hurt an individual’s feelings and self worth. Online
sexual harassment comments are particularly
egregious and should never be made.
52 53
 LG Code of Ethics
CHAPTER 4 CHAPTER 4
Basic Ethics of Employees Basic Ethics of Employees

Q&A Q&A

Q As part of a localization initiative to replace an

Q I witnessed an infringement of the Code of Ethics
imported raw material with a Korean material to save and reported to my team leader, but he asked me not
costs, a mass production test was already completed. to take any action, and to refrain from reporting to
Although the cost reduction effect is excellent and the Ethics Bureau. I'm concerned that the Company
the material exceeds quality standards, it may take might incur significant losses from this incident, but
over 6 months until approval is received from the fear personal repercussions should I report it since
client company for the component alteration. Since it only a few people are aware of this violation. Can
will likely be difficult to reflect the related results in informers really be protected? What should I do?
this year’s performance, would it be permissible to
change the component before receiving approval
from the client company, if the quality department A Actions which violate the Code of Ethics must be
agrees? reported to the person in charge. If no measures are
taken, the Ethics Bureau must be informed
immediately.
A Approval to change (4M alteration1), etc.) materials or
work methods that may influence the quality of
Informants, including their identity, are thoroughly
protected. If necessary, the method and
products must be received from the client company in period of investigation can be adjusted through
advance. No matter how long it may take, client consultation.
companies must be informed about the related
changes to avoid possible losses to the Company
originated from quality problems that can occur due to
the alterations made.

Q We received 2 bottles of wine for the get-together

dinner of our department from a client company as a
sign of gratitude for the latest successful product
delivery. Returning the bottles of wine may sound
discourteous. What should we do?

A Presents, regardless the price, cannot be received from

concerned parties. As a rule it should be returned but if
it turns out to be difficult to return it considering the
existing business relations with the concerned party,
the case must be reported to the Ethics Bureau for
help.

1) 
4M (Man, Method, Machine, Material) alteration: approval by the client company and the internal quality department
must be received in advance, especially for B2B companies, as it can influence the performance/function/reliability of the
54 product such as the raw material, work method, production installation, factory workers, etc. of products already being 55
produced in large quantities. Quality problems occurred due to alterations not notified to client companies can be object
of claim.
CHAPTER 4
Basic Ethics of Employees

Example of Jeong-Do Management Practice

Director A lost his father and did not inform the fact externally,
but one of the business partners learnt about the fact through
some acquaintances and sent him contributions for the
funeral expenses and condolence flowers.

Director A who got to know about it later on, returned the

contributions for the funeral expenses to the business partner,
and donated the amount of the condolence flowers (about 1
million won) to a charity group.

LG has enforced its Code of Ethics to ensure monetary values

for congratulatory occasions or condolences are not received
even to the socially accepted amount of 50,000 won from
business partners since 2013. Informing stakeholders of such
occasions (funerals, etc.) were also prohibited.

Additionally, the Company is participating in the ‘small wedding

ceremony’ campaign to minimize wedding presents and the
scale of guests by ensuring upper management above
executive directors avoid selecting extravagant locations, etc.
Alongside this campaign, the Company is offering support
activities for ‘small wedding ceremonies’ on the Company’s
dimension by renting ‘the Company’s facilities for wedding
ceremonies’, ‘requesting and donating rice wreath’, etc.

Major companies have many relationships with business

partners, and such business may face great burden with
occasions such as funerals, etc. This exemplar case shows that
we at LG are working to create a transparent business culture
by eliminating empty formalities and ostentation.

56
 CHAPTER 5
Corporate
Responsibilities for
Employees
All LG Employees are respected as dignified individuals,
treated fairly according to abilities and achievements and
encouraged to demonstrate creativity to its full extent.

LG Twin Towers, China

 LG Code of Ethics
CHAPTER 5 CHAPTER 5
Corporate Responsibilities for Corporate Responsibilities for
Employees Employees

1. Respecting Humanity 2. Fair Treatment

LG 1) LG treats each employee with warmth and trust and values LG 1) LG offers equal opportunities to all employees based on their
Code of every individual’s dignity. Code of abilities and talents.
Ethics Ethics
2) LG makes every effort to help employees feel pride and personal 2) LG evaluates the abilities and performance of its employees
fulfillment by giving them a sense of ownership in their jobs. using fair means and rewards.

3) LG has established regulations and educational guidelines and

takes necessary actions to assist employees in performing their
duties in a fair and effective manner.

Guidelines for (1) The Company shall establish an image of an ideal employee and Guidelines for (1) The Company shall not discriminate against its employees'
Practice create policies for human resources development. Practice based on education, gender, or regional origins in offering
opportunities to enhance their capabilities (training, transfer,
(2) The Company shall establish and fully promote a system which promotion, job assignment, etc.), Such opportunities shall be
nurtures its employes to be voluntary and creative. offered fairly.

(3) The Company shall assign tasks by taking into account the (2) The Company shall establish a criteria for evaluating employees
wishes, aptitudes and capabilities of each employee and talents, abilities and performance, and conduct fair evaluations
facilitate development of human resources through job in order to motivate self-development and ensure fair
execution. recognition.

(4) The Company shall strive to create a working environment

which helps employees improve their quality of life.

60 61
CHAPTER 5
Corporate Responsibilities for
Employees

3. Promoting Creativity
LG 1) LG makes every effort to create a working environment
Code of conducive to creative thinking and autonomous behavior.
Ethics
2) LG actively develops employee abilities and manages its human
resources based on a longterm plan.

3) LG respects personal lifestyles and creates a developed

organizational culture through mutual trust and understanding.

Guidelines for (1) The Company shall establish a system and corporate culture
Practice that encourages employees to freely express their suggestions,
opinions and complaints.
① Inappropriate discrimination, bullying, sexual harassment, physical
or psychological pressure, etc. must be prevented, and
procedures to protect and assist possible victims must be
applied.

(2) The Company shall take the measures necessary to ensure the
occupational health and safety of its employees. In particular,
the Company shall take appropriate safety measures at work
sites with hazardous elements.

(3) The Company shall protect the privacy of its employees as long
as the work environment and public morality are not adversely
affected.

(4) The Company shall not force its employees to participate in the
activities of particular religions or political parties, and it shall
respect the religious/political convictions of its employees.

62
 CHAPTER 6
Responsibilities to the
Nation and Society
LG protects the profits of stockholders as a sound
corporation through the execution of healthy business,
contributes to social development and increases the well-
being of citizens.

Incheon, Korea
 LG Code of Ethics
CHAPTER 6 CHAPTER 6
Responsibilities to the Nation and Responsibilities to the Nation and
Society Society

1. Rational Business Operation 2. Protecting Stockholders’ Returns

LG 1) LG conducts its business respecting local social values in all LG 1) LG protects its stockholders’ interests by earning healthy profits
Code of regions in the domestic and international markets. Code of through effective management.
Ethics Ethics
2) LG promotes its business expansion based on stable corporate
growth.

Guidelines for (1) In respect for societal moral values, the Company shall not Guidelines for (1) The Company respects the right of stockholders to know about
Practice engage in activities that harm the national economy or cause Practice the Company and announces publicly its information.
disharmony. The Company shall operate its business in line with
national sentiments. (2) The Company shall not unilaterally interfere with the returns of
minority stockholders for the purpose of protecting the returns
(2) The Company shall not act unsuitably by offering bribes or of large stockholders.
illegal political subsidies for unfair profits in the operation of its
businesses. (3) LG Employees shall not obtain profits from the unfair
transaction of stocks using internal information not announced
publicly, nor interfere with the returns of stockholders by
disclosing internal information externally.

66 67
 LG Code of Ethics
CHAPTER 6 CHAPTER 6
Responsibilities to the Nation and Responsibilities to the Nation and
Society Society

3. Contributing to Social Development 4. Conservation of the Environment

LG 1) LG contributes to national and social development through job LG 1) LG works hard to prevent environmental pollution and employs
Code of creation, tax contributions, and the promotion of cultural and Code of every measure necessary to preserve the natural environment.
welfare programs.
Ethics Ethics

Guidelines for (1) The Company shall provide employment opportunities and shall Guidelines for (1) The Company shall comply with all laws and regulations
Practice not discriminate based on education, gender, or regional origins. Practice regarding environmental protection and seek to operate its
business in a manner that respects the environment, such as
(2) The Company shall faithfully report and pay taxes. preventing global warming, saving energy and protecting water
resources.
(3) The Company shall strive to accommodate reasonable requests
of local citizens from all social classes and regions. (2) The Company shall secure and employ antipollution facilities
and operate personnel to prevent environmental pollution.

(3) LG shall do its best to protect the local social environment and
security through safe management practices and the
prevention of damages caused by accidents, disasters, etc.

68 69
CHAPTER 6
Responsibilities to the Nation and
Society

Q&A
Take full corporate social responsibility!
Q Employees from a business partner supplying
chemical substances to our Company tend not to ‘A master sergeant who lost his life while rescuing people
fasten valves during work or follow safety from a traffic accident’, ‘a fire fighter who passed away in a
regulations. However they are not LG employees and fire at Seohae Bridge’, ‘a lieutenant junior who saved critical
it is difficult for us to follow them to manage safety. lives in the subway station’, ‘an excavator driver who rescued
Who is responsible for a possible accident?
children from a fire site’…
LG is responsible for securing facilities and members of
A staff to prevent safety accidents and protect the Since 2015 LG is recognizing righteous people with
environment. Therefore, if an employee from a business compensations while assuming that ‘companies are socially
partner is not following the safety rules, contact the responsible and should contribute to national and social
business partner and the LG Safety Environment
justice by recognizing those who sacrificed themselves to
Department immediately and ensure safety rules are
followed. the society’. The Company confers the Righteous Person
Even if we cannot control employees from business Award to those who lost their capability of work or helped in
partners directly, we must take the necessary social justice through righteous work.
precautions to ensure damages or injures and
environmental pollution are prevented through the Additionally, LG is conducting various activities to contribute
contract with business partners and related to the society such as the ‘Love Multicultural School with LG’,
regulations.
‘aid project of utrophin (growth hormone) to children with
short stature’, etc. with the conviction that ‘interest and
support to minority groups is the social responsibility of
corporations’.

From the ‘Remembering and considering those

who protected social justice’ and ‘LG sharing
activities creating an independent life together’
– 70 Stories Celebrating the 70th Anniversary of LG

“ “
Some say that one of the attributes of corporations is earning
money, but as fish out of water cannot live, corporations must
consider the social welfare of the society it belongs to and
contribute to the far-sighted national policy. In order to do so, we
need to raise the corporation and help the society simultaneously.
Only such corporations can succeed perpetually.
<Koo Inhwoi, the founder of LG Group>
70
Supplementary
Provisions
Subject of application 74
Operational organization 75
Code of Ethics Revision 77
 LG Code of Ethics
Supplementary Provisions Supplementary Provisions

Subject of 1. Companies that are part of the LG subsidiaries group including Operational 1. An ‘Ethics Committee’ within the Company is to be established
Application LG Co., Ltd., and employees of affiliated companies and managers organization to act as the major decision-making organ related to the Jeong-
and employees of overseas corporations must obey the Code of Do Management practice and the compliance of the Code of
Ethics and Code of Ethics Guidelines (referred as ‘Code of Ethics’ Ethics. The CEO shall be the chairperson and the person in
hereafter). charge for the finances, human resources, judicial affairs and the
Jeong-Do Management organization. However, the ‘Ethics
2. For overseas corporations that LG exercises managerial rights, Committee’ can be substituted by conferences attended by the
part of the Code of Ethics can be changed considering local Company CEO and main management.
regulations and customs. However, main contents must be
discussed with the LG Ethics Bureau in advance. 2. The Company shall establish an ‘Ethics Executive Office’ to
execute general duties to the fulfillment of the Code of Ethics
3. LG must actively encourage independent third parties 1) with and the Jeong-Do Management practice to establish the Jeong-
transactions with LG to sympathize and participate in the Do Management policies and systems. However, the Jeong-Do
compliance with the contents of the Code of Ethics, and ensure Management organization can place its functions as stated
such contents are reflected in the transaction contracts. below:
1) The director of the Ethics Bureau (referred as ‘Ethics Executive
Office Director’ hereafter) shall be nominated by the CEO under
recommendation by the Ethics Committee. (However, the director
can be appointed in case of Jeong-Do Management organization
functions)
2) Regarding headquarters support and regions with executives and
business headquarters, etc. (referred as ‘related sector’ hereafter),
a ‘section ethics executive office’ can be established in the Ethics
Bureau to perform Jeong-Do Management duties autonomously.

3. Duties related to the Ethics Bureau

1) The Ethics Bureau can require the submission, inquiry or interview
about necessary data to perform duties smoothly. Employees
must cooperate actively unless a fair reason is presented.
2) The Ethics Bureau shall report the activity results of the Jeong-Do
Management and require interviews with the ‘head of the related
section’ when necessary to request support of Jeong-Do
Management activities.

1)
Independent third parties: investment companies, business partners, sales agencies, consultants, agents,
74 mediators, etc. 75
 LG Code of Ethics
Supplementary Provisions Supplementary Provisions

Operational 3) The Ethics Bureau shall conduct an investigation when the Jeong- Code of 1. Code of Ethics Revision
organization Do Management was found to be violated, or inquire an Ethics 1) Revision Requirements
investigation to the Jeong-Do Management organization. The
Revision ① Code of Ethics: it can be revised if alterations such as correction,
results obtained shall be reported to the Ethics Committee and supplementation, etc. of the Code of Ethics are necessary due to major
the ‘head of the related section’ and request rectification. changes related to the policies and system of the ‘LG Jeong-Do
4) The department or person in charge who perform the duties of Management’.
the Ethics Executive Office are not allowed to disclose the ② Code of Ethics Practice Guidelines: Contents can be corrected,
information obtained during the investigation to others without a supplemented, etc. when necessary to execute activities of Jeong-Do
Management smoothly.
fair reason.
2) Revision Procedures
5) The Ethics Bureau must report the handling results of the
① Code of Ethics: it can be revised after passing the final decision and
violation of the Jeong-Do Management considered important to
review by the LG Ethics Committee proposed by the LG Jeong-Do
the CEO. The example of violation shall be collected and reported Management TFT.
to the Ethics Committee. ② Code Ethics Practice Guidelines: it can be revised after the decision and
review by a consultative body formed by the LG Jeong-Do
4. Role Management TFT and the Jeong-Do Management of subsidiaries
1) Establishment and alterations to Jeong-Do Management proposed by the LG Jeong-Do Management TFT.
strategies and policies; establishment of operational directives for 3) Guidelines and Regulations Operation Related to the Code of Ethics
workers supporting Jeong-Do Management, such as the L G Co., Ltd. and subsidiaries apply the Code of Ethics and Code of Ethics
introduction of the Ethics Committee to make major decisions. Practice Guidelines, and they cannot change or revise contents
2) Receipt of reports, protection of informants, compensation of discretionally. However, when it is necessary to enforce and apply the
regulations of the Code of Ethics, contents related to the guidelines and
unfair corruption reports, and the management of systems
regulations can be established and revised.
related to the Jeong-Do Management such as all types of reports,
etc.
2. Code of Ethics Alteration History
3) Creation of a Jeong-Do Management culture by improving 1) 1994 : Enactment of the Code of Ethics
training systems and consulting related to promotion and the 2) 2004 : Partial revision (Enactment of the Standard Code of Ethics
Code of Ethics. Guidelines)
4) All other duties to activate the Jeong-Do Management. 3) 2008 : Partial revision (Alteration of the guidelines structure and
concretization)
4) 2012 : Partial revision (Alterations of standards related to congratulations
and condolences)
5) 2013 : Partial revision (Alteration to the contents related to CSR and
presents acceptance prohibition)
6) 2016 : Partial revision (Reflection of contents related to the Prohibition
Law of Illegal Solicitation)
7) 2017 : Partial revision (Reform of the Code of Ethics System, reflection of
social changes)
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LG Ethics Hotline
Reporting Method 80
Report Types and Informer Protection 81
LG Jeong-Do Management-Practicing Organization 82
 LG Code of Ethics
LG Ethics Hotline LG Ethics Hotline

Report method Report Type and Informer Protection

1. Online LG Jeong-Do Management Website http://ethhics.lg.co.kr/english Report Type The types of report include:
- manipulation of documents or figures
- false reporting
- act of receiving favors from stakeholders
- lack of transparency in the selection of business partners
- unfair share participation related to client companies
- illegal or unfair use of LG assets, etc.
However, untruthful slander or details related to individual’s private
life are not applicable.

Process Once you have submitted a report, you will receive a response in a
minimum of 7 to 10 days.
This time period allows us to carry out the verification process,
which includes investigations into the related department, etc.

Informer No information either directly or indirectly related to the informer

Protection will be disclosed without the prior consent of the informer. Any
adverse effect on the informer resulting from the Company’s failure
to protect such information will be compensated, and the Company
shall take appropriate responsibility.
2. Offline Jeong-Do Management Practice Organization by each company
☞ Refer to page 84 and page 85

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 LG Code of Ethics
LG Jeong-Do Management Practice LG Jeong-Do Management Practice
Organization Organization

 Holding Company  Chemicals

• Jeong-Do Tel. +82 - 2 - 2088 - 6088 Fax. +82 - 2 - 3773 - 2099 • Farm Hannong Tel. +82 - 2 - 786 - 9974 Fax. +82 - 2 - 786 - 9975
Management TFT Jeong-Do Management TFT, 28F, LG Twin Towers East Bldg., 128, Yeoui-daero, Farmhannong Audit Team, 6F, FKI Tower, 24, Yeoui-daero, Yeongdeungpo-gu, Seoul,
Yeongdeungpo-gu, Seoul, Korea. Zip Code: 150-721 Korea, Zip Code: 07320

 Electronics
• Electronics Tel. +82 - 80 - 337 - 3088 Fax. +82 - 2 - 3777 - 3099
LG Electronics Ethics Bureau, 29F, LG Twin Towers West Bldg., 128, Yeoui-daero,  Communication and Services
Yeongdeungpo-gu, Seoul, Korea. Zip Code: 150-721
• U+ Tel. +82 - 1644 - 8119 Fax. +82 - 2 - 6928 - 2028
• Display Tel. +82 - 2 - 3777 - 1112 Fax. +82 - 2 - 3777 - 0863
LG Uplus Ethics Bureau, 32, Hangang-daero, Yongsan-gu, Seoul, Korea
LG Display Ethics Bureau, 11F, LG Twin Towers East Bldg., 128, Yeoui-daero,
Zip Code : 04389
Yeongdeungpo-gu, Seoul, Korea. Zip Code: 150-721
• CNS Tel. +82 - 2 - 2099 - 0112 Fax. +82 - 2 - 2099 - 0015
• Innotech Tel. +82 - 80 - 660 - 5400
LG CNS Ethics bureau, 26F, FKI Tower, 24, Yeoui-daero, Yeongdeungpo-gu, Seoul,
LG Innotek Ethics Bureau, 16F, LG Seoul Station Bldg., 98, Huam-ro, Jung-gu,
Korea, Zip Code: 07320
Seoul, Korea. Zip Code: 04637
• N-sys Tel. +82 - 2 - 705 - 3050 Fax. +82 - 2 - 705 - 3030
• Lusem Tel. +82 - 54 - 470 - 0917 Fax. +83 - 54 - 470 - 0901
LG N-Sys Audit Department, 5F, LG Mapo Bldg., 155, Mapo-daero, Mapo-gu,
LUSEM Auditing & Management Consulting Team, 9, 4 Gongdanro 7-gil, Gumi-si,
Seoul, Korea. Zip Code: 04143
Gyeongsangbuk-do, Korea. Zip Code: 39422
• LG International Tel. +82 - 2 - 3773 - 5088 Fax. +82 - 2 - 3773 - 5099
Corp. LG International Ethics Bureau, 17F, LG Twin Towers East Bldg., 128, Yeoui-daero,
 Chemicals Yeongdeungpo-gu, Seoul, Korea. Zip Code: 07336
• Chemicals Tel. +82 - 2 - 785 2020 Fax. +82 - 2 - 3773 - 7099 • Serve One Tel. +82 - 2 - 6924 - 5180 Fax. +82 - 2 - 6924 - 5144
LG Chem Ethics Bureau, 24F, LG Twin Towers West Bldg., 128, Yeoui-daero, Serveone Ethics Bureau, 5F, LG Gwanghwamoon B/D, 58, Saemunan-ro, Jongno-gu,
Yeongdeungpo-gu, Seoul, Korea. Zip Code: 07336 Seoul, Korea. Zip Code:  03184
• Life and Health Tel. +82 - 2 - 6924 - 6780 Fax. +82 - 2 - 6924 - 6886 • Pantos Tel. +82 - 2 - 3771- 2290 Fax. +82 - 2 - 3771 - 2129
LG Household & Health Care Ethics Bureau, 9F, LG Gwanghwamun Bldg., 58, Pantos Logistics Ethics Burea, 41F,  FKI Tower, 24, Yeoui-daero, Yeongdeungpo-gu,
Saemunan-ro, Jongno-gu, Seoul, Korea, Zip Code: 03184 Seoul, Korea Zip Code: 07320
• Hausys Tel. +82 - 2 - 783 - 4646 Fax. +82 - 2 - 6930 - 1616 • G2R Tel. +82 - 2 - 705 - 2645 Fax. +82 - 2 - 705 - 2958
LG Hausys Ethics Bureau, 19F, One IFC, 10, Gukjegeumyung-ro, Yeongdeungpo-Gu, GIIR Audit Department, 15F LG Mapo Building. 155, Mapo-daero, Mapo-gu, Seoul,
Seoul , Korea.  Zip Code:07326 Korea. Zip Code: 04143
• MMA Tel. +82 - 2 - 6930 - 3821 Fax. +82 - 2 - 6930 - 3801 • Sports Tel. +82 - 2 - 2005 - 5705 Fax. +82 - 2 - 2005 - 5800
LG MMA Internal Audit Team, 23F, LG Seoul Station Bldg., 98, Huam-ro, Jung-gu, LG Sports Management Planning Team, 25, Olympic-ro, Songpa-gu, Seoul, Korea.
Seoul, Korea. Zip Code: 04637 Zip Code: 05500

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