The compliance committee is directly supervised by the chairman and is comprised of 7 members, the chairperson, 3 third-party members, and 3 internal company members. External committee members are experts in the legal or accounting field with specialized knowledge and the rest of the committee members are employees currently working in one of the subsidiary companies. The term for each committee member is 2 years, and can be extended.
Member Appointment Background
In order to ensure that the Compliance Committee operates effectively and professionally, we have appointed a highly qualified individual from outside the company with a strong background in law, and whom we trust greatly, as chairman.
The external committee members that we appointed include a professor of business administration with expertise and knowledge of the field who is able to competently review issues in the financial field, and two lawyers who have accumulated experience in courts and prosecutor's offices.
We appointed internal committee members that include specialists in the area of compliance, including HR management, tax accounting and legal affairs, in order to make comprehensive review possible.
NameHyeong-Ki Min TitleChairman, Lotte Compliance Committee
(former) Presiding Judge, Seoul High Court
(former) Chief Judge, Incheon District Court
(former) Constitutional Judge
External Committee Members
NameKyung-Hoon Lee TitleLawyer, Bae, Kim & Lee LLC
(former) Chief Prosecutor,
Incheon District Prosecutor’s Office
(former) Chief Prosecutor, Seoul Estern District Prosecutor’s Office
NameSeong-Won Chang TitleLawyer, Lee & Ko Law Firm
(former) Presiding Judge, Seoul Central District Court
(former) Presiding Judge, Seoul High Court
NameHyun-Han Shin TitleProfessor of Financial Management,
(former) Nonexecutive Director, LG Innotek
(former) Board Member,
Voting Rights of the National Pension Fund
Internal Committee Members
NameTae-Sup Lee TitleHead of Integrity Management Division,
(former) Presiding Judge, Seoul Southern District Court
(former) Lawyer, Kim & Chang Law Firm
NameBu-Ok Chung TitleHead of HR Innovation Division, Lotte Group
(former) SM/BTX Business Unit Managing Director, Lotte Chemical
(former) Head of Operations of Polymer Department, Lotte Chemical
NameChoo Gwang-Shik TitleHead of the Financial Innovation Division, LOTTE Corporation
(former) Division Head of the Finance Division, LOTTE Confectionery
(former) Team Leader of Team 1 of the Financial Innovation Division, LOTTE Corporation
The compliance committee is managed based on deliberations and decisions are made involving “group compliance policies and the establishment of plans, monitoring subsidiary compliance activities, management and instruction, evaluation of subsidiary compliance activities, and inspection of compliance levels including legal compliance.”
Employees of the company or its affiliates may submit proposals containing specific details to the Committee in writing, and the chairman or other members may also submit proposals if deemed necessary.
The Committee may request documents necessary for deliberation and decision, or conduct necessary investigations, such as conducting site inspections.
The Committee meets at least once every quarter and holds meetings if deemed necessary.
Resolution of Group Compliance Policies
The Compliance Committee is currently in the process of establishing a group-level compliance system by organizing an integrity management group, establishing and expanding the compliance system, and establishing a compliance education system in order to implement group compliance policies.
The compliance organizations of the Group's major affiliates report the details of their compliance activities to the Committee every quarter, and then the Committee generates compliance business improvements based on these reports. These improvements are to be reflected in each affiliated company in order to strengthen communication between affiliates and members of the Committee. It is our goal to raise business synergy.
The Compliance Committee respects that compliance with global standards such as the Foreign Corrupt Practices Act of 1977 (FCPA), corporate transparency and employee ethics can greatly effect the survival of the company. As a competitive company in this type of corporate environment, we are devoting our efforts to becoming a global company.