Human Rights Management
Governance
LX Semicon has established an integrated decision-making structure linking the Board of Directors, responsible departments, and relevant units to ensure systematic human rights governance. In 2024, the company laid the foundation for human rights management and enhanced risk management by obtaining approval from the ESG Committee and establishing a Human Rights Management Policy. LX Semicon closely monitors risks with the potential to cause negative human rights impacts and operates a reporting channel to ensure that any issues are immediately reported to the CEO and prompt actions can be taken.
Human Rights Management Decision-Making Structure
LX Semicon is committed to practicing human rights management that respects the rights and values of all stakeholders, including employees, customers, and partners, equally across all areas of its business operations. To proactively prevent human rights violations and ensure systematic management, LX Semicon has established the "LX Semicon Human Rights Management Policy" based on the key international standards and guidelines, including the Universal Declaration of Human Rights, the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, the 10 Principles of the UN Global Compact (UNGC), the UN Convention on the Rights of the Child, the UN Guiding Principles on Business and Human Rights (UNGPs), and the OECD Due Diligence Guidance for Responsible Business Conduct. To encourage the participation of business partners in human rights management, LX Semicon has included human rights provisions in its Supplier Code of Conduct, thereby establishing a foundation for managing a wide range of human rights risks. The full text of LX Semicon’s Human Rights Management Policy and Supplier Code of Conduct is available in the Data Library.
Human Rights Education
Employee Education and Training
LX Semicon regularly provides Human Rights Education to all employees, including training on disability awareness in the workplace and sexual harassment prevention, in order to foster an inclusive organizational culture. For department heads, general managers, and team leaders, mandatory Human Rights Education is conducted once every half year, which includes modules on workplace bullying prevention and sexual harassment prevention.
Employee Education and Training
LX Semicon Human Rights Management Checklist
LX Semicon conducted a Human Rights Self-Assessment based on its Human Rights Management Checklist to identify potential human rights risks across all relevant departments. This process allowed the company to evaluate the current status of human rights management and derive specific improvement tasks for each detailed item. Building on the results of the self-assessment, LX Semicon conducted a Human Rights Impact Assessment this year to enable a more in-depth analysis of potential impacts. Through this, the company is promoting continuous improvement and proactive management of human rights risks.
| Human Rights Management Checklist | |||||
|---|---|---|---|---|---|
| Ensuring occupational safety and health |
Prohibition of child labor | Compliance with working hours |
Wages and benefits | Information security | Establishment of human rights management system |
| Prohibition of forced labor |
Freedom of association | No discrimination/ workplace bullying |
Responsible supply chain management |
Ensuring environmental rights | Operation of human rights management system |
Conducting a Human Rights Impact Assessment
LX Semicon conducted a Human Rights Impact Assessment for all employees to identify actual and potential human rights issues that may arise during business operations. This assessment aimed to integrate findings into the company’s human rights management practices, helping to prevent and mitigate negative impacts in advance. The 2025 survey was conducted with key stakeholders based on LX Semicon’s ESG material issues. Notably, the assessment indicators were developed in accordance with major international guidelines, including the Korean government’s K-ESG Guidelines, ILO Core Conventions, the Universal Declaration of Human Rights, the EU Supply Chain Due Diligence Directive, and Germany’s Supply Chain Due Diligence Act.
| Issues for Assessment | Survey Participants |
|---|---|
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| No. | Main Details |
|---|---|
| 1 | Are you aware of LX Semicon’s Human Rights Management Policy? |
| 2 | Please select the human rights issue that you believe is most vulnerable in LX Semicon’s business operations. |
| 3 | Do you believe LX Semicon is making appropriate efforts and exercising due diligence to prevent human rights violations among its diverse stakeholder groups, including employees, affiliates, business partners, customers, shareholders/investors, and local communities? |
| 4 | Please select the stakeholder group that you believe is most vulnerable to human rights issues in LX Semicon’s business operations. |
| 5 | Please select the internal employee group that you believe is most vulnerable to human rights issues in LX Semicon’s business operations. ※ This includes discrimination or disadvantages in labor and employment relationships. |
| 6 | Please select the group of partner companies that you believe is most vulnerable to human rights issues in LX Semicon’s business operations. |
| 7 | Have you ever had an experience - personally, or involving a colleague or another member of society - where you felt human rights were not sufficiently respected in relation to LX Semicon? |
| 8 | If you have directly or indirectly experienced a human rights violation involving LX Semicon employees, partners, customers, local residents, shareholders, or investors, please select the type of violation from the options below. |
| 9 | In relation to the experience above, did you, your colleague, or another individual take any action? |
| 10 | Please select how you or your colleague responded from the options below. |
| 11 | Please select the reason why no action was taken. |
| 12 | Do you believe that LX Semicon has appropriate grievance handling and remedy procedures in place, such as reporting channels, consultation, and resolution processes? |
| 13 | If you have any comments or suggestions for improving LX Semicon’s human rights management, please feel free to write them here. |
Grievance Handling Process
LX Semicon responds effectively to adverse human rights impacts through its grievance handling process, and operates multiple channels to provide practical remedies. The company continuously monitors incidents related to ethical violations, such as gender discrimination, disability discrimination, and workplace harassment. When a grievance is reported and an investigation is initiated, anonymity is strictly protected to prevent retaliation against the whistleblower, and protective measures, such as separation of parties, are implemented to prevent secondary harm. In the event of a rights violation, LX Semicon takes immediate corrective action to ensure swift resolution.
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Pre-Preparation
Identify Member Issue
Receive VOE Receive issues related to workplace bullying, working hours, way of working, etc.
Consult about and address grievances Handle issues and come up with remedies
Identify Organization Issue
Communicate through the CA at the organizational level Identify and understand issues within the organization
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Meetings by Organization
Implement once a month Discuss VOE and inform CA/HR announcements
Address employees’ grievances and provide feedback
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CA Council
Discuss meeting results by organization Share the best practices, VOE and grievances within the organization
Share issues by agenda Share activity details and issues/support matters
Determine agenda items to be on the table for the Grievance Handling Council
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Grievance Handling Council
Lead by the HR part, make decisions on grievance reported
Grievance Handling and Suggestion Channel
Grievance Handling Status
Operational performance by grievance channel and corresponding corrective actions are available in the Data Library under "Operational Performance."
Grievance Handling Status
| Category | Details |
|---|---|
| Reporting Workplace Sexual Harassment / Bullying |
(Online/Offline) Handled by the Organizational Culture Team |
| (Online) “Report Sexual Harassment / Workplace Bullying” menu available on the internal intranet | |
| Ethics Hotline (Online) |
“Ethics Hotline” menu available on the official company website
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| Bureau Reporting | Reports accepted via in-person visits, postal mail, email, and phone (online and offline channels available) |
