Risk Management
Risk Management Process
LX Semicon implements risk management practices to mitigate the significant negative impact that unforeseeable critical incidents, accidents, or serious misunderstandings and rumors may have on overall business operations. To prevent a series of incidents and accidents that could severely damage the company’s image or result in financial losses, the company continuously updates its risk categories and management plans. These efforts ensure that potential crises can be prevented in advance and that, when necessary, LX Semicon can respond swiftly and effectively to manage and recover from any crisis situation.
Compliance Risk Management
LX Semicon has established and operated a company-wide compliance management system to enhance awareness and compliance with applicable laws and regulations across the entire organization. When there are matters such as large-scale internal transactions that require board approval by law, the ESG Committee first reviews the agenda and the board makes the final resolution in full compliance with legal procedures. An annual compliance work plan is established and systematically implemented, with continuous improvements to strengthen internal management practices. Each department conducts compliance risk self-assessments and proactively takes corrective actions on identified risks, thereby reinforcing the foundation for compliance-driven management throughout the company.
Compliance Response System
Risk Management Pool
Management/Evaluation Process
Fair Trade Compliance and Ethical Practice Management System
LX Semicon operates a compliance risk management system based on internal regulations such as the LX Code of Ethics/Guidelines for Practice and the Fair Trade Compliance Guidelines. Through this system, the company aims to strengthen legal compliance and establish a culture of ethical and transparent business conduct. LX Semicon’s Fair Trade Compliance Guidelines are designed to prevent any disadvantages that the company and its employees may face due to violations of fair trade laws. These guidelines outline the conduct rules for employees, ensuring that all employees, both domestic and international, clearly understand and adhere to the content specified in the fair trade guidebook. This helps to prevent legal sanctions from competition authorities in various countries or any damage to the company’s reputation. The Fair Trade Guidebook includes: 1. The necessity of complying with fair trade guidelines 2. The fundamental principles of fair trade guidelines 3. Provisions on fair trade in relation to competitors, such as “Prohibition of Cartels” 4. Provisions on fair trade with counterparties/suppliers, such as “Prohibition of Unfair Trade Practices”
Fair Trade Compliance Guidelines
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Article 1
Scope of Application
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Article 2
Purpose
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Article 3
Fundamental Principles
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Article 4
Obligations of Compliance Officers
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Article 5
Violation of the Guidelines
Information on LX Semicon’s compliance training and status of legal violations can be found in the Data Library.
