Compliance
CEO Compliance Message
We will achieve sustainable growth based on compliance management.
Transparent and ethical management activities are the cornerstone of sustainable growth. In particular, as demands for transparency and fairness in corporate management are increasing in the global market, compliance management has become one of the key factors that determine a company's global competitiveness.
Compliance management refers to efforts to adhere to laws, international treaties, and internal regulations in all areas of business activities, including fair competition, safety and the environment, information protection, and human resources and labor. While compliance management was previously characterized by a “passive anti-corruption approach,” it has evolved into an “integrated illegal activity prevention program” that reflects the needs of all stakeholders, driven by the strengthening of ESG perspectives.
LG Display has been striving to promote free and fair competition under the LG Ethics Guidelines and to pursue mutual benefits with all stakeholders based on mutual trust and cooperation. Since introducing a company-wide compliance management system in 2009, we have continuously expanded its scope and range.
Going forward, we aim to further enhance our compliance program to meet international standards, thereby raising the level of trust from our customers, partners, and society as a global company.
LG Display will continue to pursue sustainable growth by leading the market through technological and product innovation while ensuring that each individual adheres to ethical standards and fulfills their social responsibilities.
Thank you.
Management Strategy
As the global market demands for transparency and fairness in corporate management increase, compliance management has become a key factor in determining a company’s global competitiveness. Accordingly, LG Display is continuing to advance and stabilize compliance management by introducing a compliance review function to the ESG Committee, a committee within the board of directors, and institutionalizing the board’s involvement in compliance. In the future, we will make various efforts to internalize a compliance culture, such as compliance monitoring and inspection, and education for all employees.
Management system
A series of recent rulings strengthening the directors’ duty of supervision have made it clear that companies have a duty to establish a compliance management system and to continuously monitor and supervise whether it is operating effectively. Accordingly, LG Display’s compliance support officer and compliance team evaluate the effectiveness of the compliance control system every year in accordance with the compliance control standards established under the Commercial Act and report the results to the board of directors. In addition, twice a year (first and second half of the year) they report the plan for implementing the advanced compliance management system, progress, and results to the ESG Committee.
Organization
The board of directors, including the CEO of LG Display, establishes and operates a compliance control system in accordance with compliance control standards, and verifies that the compliance framework and control system are operating effectively. The compliance officer oversees the compliance framework, evaluates the effectiveness of the control system, and reports the results to the board of directors. The compliance team is a support organization that assists the compliance officer in their duties, collaborating with the risk management department to practically manage the operation of the framework.
Risk Monitoring and Inspection
LG Display identifies and selects key risks such as fair trade, safety, and unfair competition prevention every year based on their impact in order to effectively manage compliance risks. The company then conducts activities such as focused monitoring, inspections, and training for the selected key risks. In 2024, the company selected “collusion” related to fair trade and “trade secret infringement” related to unfair competition prevention as key risks requiring concentrated management, and carried out customized education, inspections, distribution of card news and newsletters, and guideline updates.
Meanwhile, LG Display conducts annual key risk selection and self-compliance inspections for all domestic and overseas subsidiaries. In 2024, in addition to these regular inspections, the company visited its major production subsidiary in Vietnam to conduct on-site inspections of overall compliance risks.
2024 Compliance Management System Operation Report
ㆍReport on the operation of the compliance control system at the 2nd Board of Directors meeting in 2024
ㆍReport on the progress of the enhancement of the compliance framework at the 1st ESG Committee meeting in 2024
ㆍReport on the results of the implementation of the enhancement of the compliance framework at the 2nd ESG Committee meeting in 2024
Fostering a Culture of Compliance
LG Display provides various compliance training programs for its employees on topics such as trade secrets, anti-corruption, human resources, and safety and environment to ensure that compliance management is firmly rooted in the corporate culture.
Management System Certification
LG Display became the first company in the global display industry to obtain ISO 37301 (Compliance Management System) in 2022. The certification covers all LG Display workplace sites in Korea and includes five areas: fair trade, anti-corruption, corporate governance, product quality, and human resources. Following this, the company underwent two consecutive years of post-certification audits, officially confirming its sustained maintenance of a high-level compliance management system. Going forward, we will continue to enhance the transparency and reliability of our business operations through various means, striving to become a company that all stakeholders and customers can trust.
ISO37301 (Compliance Management System) Certificate
