We at SK hynix are fully committed to fair and free competition to help establish fair trade practices in the semiconductor supply chain and hereby declare that we will comply with all applicable laws and regulations on fair trade voluntarily.

1. With the full understanding that fair trade practices ingrained in our business dealings are the true source of our competitiveness, we will put fair trade ahead of everything in our management.
2. We will not be involved in any unfair business dealings to help ensure that fair trade practices are established in all fields and areas. We will consult with our trading partners on an equal footing.
3. We will offer training for all our members to help them fully understand, and comply with, all fair trade related laws and regulations.
4. We will reinforce our supervision and monitoring system by appointing a person responsible for our compliance with all fair trade related laws and regulations.
5. We will run a voluntary system for compliance to prevent any violation and impose our own sanctions on any violation identified.

A Compliance Program is an internal compliance system that companies adopt to ensure that fair trade related laws and regulations are fully followed. It provide clear standards by which their members should act, allowing companies to prevent violations and identify any violation as early as possible for prompt response. Our Compliance Program is designed and implemented based on the laws and regulations applicable in the jurisdictions we operate around the world, applicable international conventions, customer requirements as well as the unique aspects of the semiconductor industry.

First, key compliance risks and global standards to be followed by a world class company are identified. Then a five step process (principles setting - training - inspection - verification of improvement - reporting to management) is applied repeatedly.

• Principles of running our Compliance Program

• Step 1

  Policy Making

• Step 2

  Training

• Step 3

  Audit

• Step 4

  Correction

• Step 5

  Report

For substantive and effective compliance, we have compliance regulations in place and appoint a person to support compliance (Compliance Officer) who is responsible for supervising our compliance with all the applicable laws and regulations. Our compliance performance is reported to the Board of Directors annually.
We also publish different sets of guidelines containing highlights of applicable laws and regulations that our employees should know on their jobs and offer them training to keep all our members on the alert for compliance.