Jeong-Do Management/Anti-Corruption
LX Jeong-Do Management
LX’s Jeong-Do Management refers to a code of conduct to compete fairly and create results by continuously developing capabilities based on ethical management. LX Semicon encourages all employees to actively comply with Jeong-Do Management principles and will continue striving to elevate the standard and execution of this system. Through these efforts, the company aims to grow into a sustainable enterprise.
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Honesty
Working transparently according to our principles and standards
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Fair Treatment
Provide equal opportunity and fair treatment in all business contexts
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Fair competition based on competence
Develop the competence to compete and win fairly
LX Semicon regards the practice of ethical values as a core principle of corporate management and has established the fundamental direction of LX Jeong-Do Management to ensure that all employees act with ethics as their top priority. The LX Code of Ethics, established to underscore the importance of ethical management and prevent corruption, serves as a standard to guide employees in making the right decisions and ethical judgments. All members are encouraged to prioritize ethical values and actively practice them, thereby fostering a culture of Jeong-Do Management. Company-wide training programs on Jeong-Do Management are provided to all employees, and efforts are made to promote a commitment to ethical practices among suppliers. LX Semicon pursues free and fair competition and aims to create shared value with all stakeholders based on mutual trust and cooperation.
LX Code of Ethics
Pledge for Jeong-Do Management Practice
All employees of LX Semicon annually participate in the Pledge of Jeong-Do Management Practice, committing to compliance with the Code of Ethics and the active implementation of Jeong-Do Management. This pledge emphasizes the importance of ethical management and includes a commitment to the prevention of corruption and other unethical conduct. In addition, suppliers are also encouraged to actively participate in LX Semicon’s Jeong-Do Management efforts by joining the pledge, thereby promoting clean and transparent business practices.
Risk Management
Pledge Compliance with Anti-corruption Regulations
To reinforce its strong commitment to preventing corruption, LX Semicon requires all employees—both domestic and international, including the CEO—to annually complete and submit a Pledge of Compliance with Anti-Corruption Regulations. To accommodate overseas personnel, pledge forms are provided in English and Chinese, ensuring that consistent ethical standards are applied across all global operations.
Whistleblower Reward Program
In an effort to enhance transparency and eliminate unethical behavior that may undermine customer trust, LX Semicon operates a Whistleblower Reward Program. This initiative encourages both internal members and external stakeholders to report any acts of corruption or misconduct they become aware of. Through the encouragement of active and voluntary reporting, the company continuously strengthens its foundation for ethical management.
Reporting System for Gifts and Entertainment
LX Semicon mandates strict compliance with the LX Code of Ethics for all employees and prohibits all forms of unfair business practices. In accordance with the code, the company enforces strict restrictions on the exchange of money, gifts, hospitality, or entertainment with suppliers and business partners to maintain fair and transparent relationships. Prior to major holidays, a company-wide communication titled “No Giving or Receiving of Gifts” is sent to all employees, suppliers, and business partners in the name of the CEO to reinforce this transparent culture. In the event that money, gifts, or entertainment are offered, the company policy mandates immediate refusal or return. If return is not feasible, the incident must be promptly reported to the Ethics Bureau in accordance with established internal procedures.
Operation of the Ethics Hotline Ethics Hotline
LX Semicon operates multiple reporting channels, both online and offline, to ensure swift and fair handling of any violations of Jeong-Do Management principles. Online reports can be submitted through the Ethics Hotline, while offline reports can be made through in-person visits to the Ethics Bureau or via mail, phone, or email. The company has established a comprehensive system to accommodate these diverse reporting methods. The protection of whistleblowers’ identities is of the highest priority. All reports may be submitted anonymously, and reported cases are handled exclusively by a limited number of staff who are bound by confidentiality agreements. LX Semicon rigorously safeguards the anonymity of whistleblowers and internal reporters, strictly adhering to the principle of confidentiality. Reported issues are investigated to verify their validity. If any wrongdoing is confirmed, follow-up actions are taken, including disciplinary measures, improvements to operational processes, and strengthened ethics training, thereby ensuring the prevention of recurrence and reinforcing Jeong-Do Management.
Ethics Hotline
Anti-Corruption Compliance Monitoring and Board Reporting
LX Semicon annually reports its anti-corruption plan and prior year’s performance of its internal audit department to the Audit Committee. This regular reporting process enhances the implementation of anti-corruption initiatives and strengthens the supervisory role of the Board of Directors.
