Namkwang Engineering will lead
in creating a clean company culture.

Corruption Prevention Special Transaction Conditions

Article 1 (Basic Principles)

Namkwang Engineering Co., Ltd. (hereinafter referred as ‘Company’) and the other party to transaction (hereinafter referred as ‘other party’) are to sincerely fulfill Corruption Prevention Precautions to prevent corruption and to settle fair trade order.

Article 2 (Scope of application)

This conditions is applicable for every transactions and contracts between the company and the other party provided that there is no clear agreement which excludes the application of this condition.

Article 3 (Cooperation between companies)

  • ① Executives and staff members of the company must comply to this conditions in every transaction with the other party; upon concluding a contract or commencing a transaction, the executive or the staff member must inform this condition to the other party and receive a confirmation from the other party.
  • ② The other party must understand the Framework Act on the Construction Industry and the intention for an ethical management by the company; the other party must cooperate with the Corruption Prevention Precautions of this conditions. If necessary related to Corruption Prevention Precautions, the company can request a browse of related materials to the other party, under prior consultation and secrecy; the other party must actively cooperate.

Article 4 (Corruption prevention – Restriction of types of violation)

  • ① The other party does not perform actions mentioned in the following subparagraphs regarding transactions and contracts, which violate the corruption prevention, to the executive and staff member of the company or the personnel who was entrusted by the company to perform a task.
    • 1. Violation of 2 of Article 38, Framework Act on the Construction Industry (Prohibition of Acquiring or Providing Wealth or Gain of Property through Unfair Request, etc.) 2 of Article 38, Framework Act on the Construction Industry Regarding the conclusion of contract for construction or the construction by the construction company, the ordering body, contractor, subcontractor, or the party concerned must not acquire or provide wealth or gain of property through unfair request.
    • 2. Provision of money or valuables other than typical level of souvenirs or gifts; providing or entertaining treatments such as meal, feast, or golf
    • 3. Provision of convenience, such as transportation, accommodation, tourism, event support, etc. which exceeds the typical level
    • 4. Monetary or real estate transaction which causes hindrance to fair task performance, such as cash loan, guarantee for bank loans, real estate closing or lease, etc
    • 5. Other actions conforming to Subparagraphs 1 through 4 which cause hindrance to the fair task performance of the executive and staff member of the company or the personnel entrusted by the company.
  • ② ‘Typical level’ in Subparagraphs 2 and 3 of Paragraph 1 refers to a level that is universally valid and acceptable when judged by common sense of the general society; it is a level which the recipient can fairly perform the task without any burden.
  • ③ If the other party performs actions mentioned in each Subparagraphs of Paragraph 1, the company can take the following measures based on the level of violation:
    • 1. Violation of 2 of Article 38, Framework Act on the Construction Industry, by action specified in Paragraph 1, Subparagraph 1: suspension of all transaction with the company, revocation or cancellation of the contract, and compensation for direct and indirect damages inflicted on the company
    • 2. Acquisition of profit of wealth or property equivalent to 500,000 KRW or more by the executive and staff member of the company or the personnel entrusted by the company through actions specified in Subparagraphs 2 through 5 of Paragraph 1.
    • 3. Applicable to any actions specified in each Subparagraphs of Paragraph 1 above, regardless of the amount of wealth or property: Restrictions to participating in various contracts and bidding of the company (two years)
  • ④ In case of money, valuables, treatment, entertainment, provision of convenience, cash loan, guarantee for bank loans, etc. specified in Subparagraphs 2 through 5 of Paragraph 1, application of Paragraph 3 converts the profit in property by the executive or staff member who has benefitted; the ‘profit equivalent to property’ is calculated based on the total amount provided, regardless of the number of times, time period, and the number of providers and recipients.
  • ⑤ In taking measures specified in Paragraph 3, the company may offer a chance for opinion or statement from the other party except for unavoidable circumstances which require emergency.

Article 5 (Date of Implementation)

This condition is implemented as of July 20, 2006

Article 6 (Interim measures)

This condition takes effect from the moment of signature or seal on this condition by the other party for contracts or transactions that have been concluded prior and are in fulfillment.