Under the banner “Contribute to Advancement in Driving: Making Life Better for Everyone through Safe Technology and Pleasant Driving,” Hankook Tire is committed to becoming a leading global tire company that contributes to the safety and welfare of humanity by providing top-quality products and services.

Based on the company’s business principles - Voice, Environment, People, Innovation, and Execution - Hankook Tire has instituted a Code of Ethics as a behavioral guideline for all of the company’s employees.

Every employee at Hankook Tire is respected and treated with dignity. As company representatives, all Hankook Tire employees shall uphold the prestige of the company, be conscious of their actions, and reflect on their behavior against the following questions:.

Is this against the rules?

Does it apply to the corporate bylaws and the company’s Code of Ethics?

Is it immoral or unethical or does it go against social conventions?

Does it do unnecessary harm to the company or its stakeholders?

Chapter 1. Hankook Tire’s Business Activities

Hankook Tire pursues co-prosperity that is built upon a mutual trust between the company and its stakeholders, from customers, employees and shareholders to business partners and society as a whole.

1. Respect for Customers

Under the belief that customers are the foundation for business management, Hankook Tire listens to every customer’s thoughts and opinions and strives to earn their trust.

Customer satisfaction is our top consideration before taking any action or making any decisions regarding management issues. At the same time, honesty is the basic principle in our engagement with customers, while promises are always honored.

Not only are sincerity and kindness the fundamental virtues in the company’s approach to customers, but Hankook Tire is attentive to the opinions of each and every customer.

A customer’s assets and trade secrets shall be valued and protected as much as if they were the property of Hankook Tire itself.

2. Respect for Employees

A person’s dignity and value are to be fully respected at all times. Specifically, employees in a position of power shall treat all their colleagues, including juniors and subordinates, with the same level of respect and dignity.

Hankook Tire provides every employee with a safe and agreeable work environment.

Hankook Tire ensures a lively workplace that places high value on creativity and professionalism, as it works hard to deal with every employee grievance.

Hankook Tire makes sure that all employees are treated fairly based on their performance and contribution to the company, and strives to continually improve employees’ quality of life in terms of health and education.

Hankook Tire practices fair and unbiased human resources management based on the competencies and achievements of its employees, and treats them fairly and in proportion to the effort and contribution they make towards the company.

3. Respect for Shareholders

In pursuit of transparent and sound management practices, the company aims for stable, long-term shareholder value.

Hankook Tire works tirelessly for cost reduction and management innovation to bring about value that is both steadfast and long term.

Hankook Tire makes every effort to earn shareholders’ trust by providing accurate information on business results in a timely manner.

Hankook Tire maintains all financials in line with the Korean Generally Accepted Accounting Principles (GAAP).

4. Mutual Development with Business Partners

Hankook Tire strives for mutual development with business partners under the principle of integrity, and does not make unjust demands or take advantage of business partners in any way.

Hankook Tire contends that the selection of business partners shall be done in due course by fairly and transparently evaluating the necessary criteria, that is, the quality of service and products, qualifications, and credibility.

Hankook Tire upholds the honor and dignity of the company, and ensures that all transactions with business partners are conducted in a fair and transparent manner.

Hankook Tire supports and cooperates with business partners in their attempts to increase their own competitiveness through technology assessment and management consulting.

5. Social Functions

Hankook Tire abides by all laws and regulations, advocating the commercial morality and transactional conventions of the nations and communities it operates in.

Hankook Tire does not make unjust profits in unfair ways that violate the principles of fair competition and commercial morality.

Hankook Tire is committed to protecting the environment and is aware of its environmental responsibilities.

Hankook Tire endorses and abides by the rules, the cultures, and traditions of the countries where it operates, while also contributing to the development of local communities.

Chapter 2. Employee Business Activities

With the belief that employees should uphold the rightful vocational ethics for fairness and integrity in the workplace, all Hankook Tire employees shall respect one another and practice morality and good manners. Every employee shall also uphold the highest levels of professionalism and creativity and consider corporate interests before making any decision, while pursuing the mutual growth of both fellow employees and the company.

1. Employee Honor and Dignity

Hankook Tire’s employees practice moral behavior and good manners, advocate for their own dignity, and respect the individual personalities and rights of coworkers.

Employees shall take pride in the fact that they are representatives of the company and behave in a righteous way while also observing good manners.

Employees shall fulfill their duties at work in a fair and proper manner, keep their word at all times, and abide by the company’s bylaws.

Employees shall not commit any form of sexual harassment, discriminate against the disabled, and under no circumstances act or speak in a way that is socially or culturally prejudicial.

2. Respect for Professionalism and Creativity

Employees shall respect the professionalism and creativity of other individuals and promote open communication among all employees.

Employees shall continuously cultivate globally competent expertise in all of the fields they operate in, and act and make decisions responsibly.

Employees shall respect creative ideas and suggestions, and advocate active communication and cooperation in both a bottom-up and top-down way, taking the initiative in practicing Speed Management.

3. Job Responsibilities & Goal-Oriented Attitude

Employees shall fulfill their responsibilities with a clear goal in mind, act in a way that reflects their beliefs and principles, and take full responsibility for their actions.

Employees shall not forge, exaggerate, or compromise data or facts for the benefit of a specific individual or department, and shall always deal with important information and data in a prompt and proper manner.

Employees shall fulfill their responsibilities in such a manner that meets the highest international standards, and in compliance with the established system and process of the company.

4. Distinguishing between the Company and Personal Affairs

Employees shall protect company property, draw a line between corporate and personal affairs, and not abuse their position in pursuit of personal gain.

Employees shall protect the company’s physical assets, intellectual property, and trade secrets, and not use corporate property for personal gain under any circumstances.

Employees shall refrain from embezzlement, kickbacks, unlawful entertainment or bribes, putting the company’s interests ahead of their own when at work.

Employees shall not reveal sensitive information outside the company without prior permission or approval.

5. A Modest Lifestyle and Healthy Family Culture

Employees should make it a principle to lead a modest lifestyle and support a healthy family culture.

Employees shall use company property sparingly, and as if it were their own.

Employees shall refrain from extravagancy, lavishness, gambling, showing off, and overspending in an attempt to live a modest lifestyle.

Employees shall promote a healthy family culture based on filial piety and family harmony, fully aware that the family unit represents an integral part of a stable society.

6. Safety at Work

Employees should maintain a safe and agreeable work environment.

Employees shall keep work areas neatly organized to ensure a safe and agreeable work environment.

Employees shall aim to prevent accidents at work by strictly abiding by all safety regulations and guidelines.

Employees are encouraged to be positive both in their thoughts and actions, and to help maintain a cheerful and liberal work environment.

7. Self-Development & Mentoring

Employees are ultimately responsible for initiating change within themselves through relentless selfdevelopment. Employees in a position of power take the lead at work by mentoring their colleagues and guiding them in the proper way.

Employees shall do their utmost in the name of self-development, equipping themselves with global competencies.

Employees shall guide coworkers down the right path and voluntarily promote mutual development.

Subordinates should respect their bosses and follow their lead. At the same time, bosses are obliged to mentor their subordinates in the proper way.

Chapter 3. Putting the Code of Ethics into Practice

The purpose of putting Hankook Tire’s Code of Ethics into practice lies in establishing a corporate culture based on trust and value creation. This is achieved through active ethics promotion programs such as continued ethics training, the establishment of ethics practices campaigns promoting ethics with business partners, and company-wide fair transaction activities.

1. Organization

The Business Ethics Subcommittee and Management Diagnosis Team oversee Code of Ethics practices on every Hankook Tire business premise.

2. Breach of the Code of Ethics

Any breach of Hankook Tire’s Code of Ethics shall be addressed by a ruling from the Business Ethics Subcommittee and the Personnel Committee after a thorough investigation is conducted.

Knowledge or suspicion of a Code of Ethics breach by an employee shall lead to an investigation by the company to verify whether there is any credibility to it.

When it is deemed necessary to revise the Code of Ethics, the Business Ethics Subcommittee can carry out a revision after due deliberation.

When a Code of Ethics breach proves true, the case shall be referred to the Personnel Committee for further deliberation and ruling.

3. Protection of Informant(s)

Informants who report unethical behavior within the company will have his/her identification concealed and be protected from any retribution or unfair treatment.

Authoritative Interpretation

Disputes over the interpretation of the Code of Ethics shall be settled by a ruling from the Business Ethics Subcommittee.

Chapter 4. Addendum

1. Revisions made to Hankook Tire’s Code of Ethics shall go into effect on August 1, 2001.
2. Revisions made to Hankook Tire’s Code of Ethics shall go into effect on February 1, 2005.
3. Revisions made to Hankook Tire’s Code of Ethics shall go into effect on July 15, 2007.
4. Revisions made to Hankook Tire’s Code of Ethics shall go into effect on October 8, 2010.
5. Should there be any overlapping problems or conflict with previous provisions governing a similar matter, this Code of Conduct shall override all previous provisions.

Code of Ethics & Code of Conduct (Guidelines)

As a means to provide judgmental and behavioral guidelines for the application of the Hankook Tire Code of Ethics to actual cases, the company has set out ethical behavioral guidelines for its employees as shown below. All Hankook Tire employees are expected to acquaint themselves with and fully abide by the provisions. The guidelines define the specifications regarding unlawful entertainment or bribery as stipulated in Article 4 of the Code of Ethics, Distinguishing between the Company and Personal Affairs, Chapter 2.

Chapter 1. Standards of Practice

1. General Principles

Any form of bribery, entertainment, special treatment, or benefits provided by a stakeholder may influence an otherwise rational decision-making process. In practice, all of the aforementioned should be turned down politely.

Anyone who unwillingly receives a bribe, entertainment, special treatment or financial benefits from a stakeholder that is connected to a business transaction shall immediately report on said fact and follow due course (as stipulated below), taking the proper action according to standard procedure. Anyone who voluntarily turns oneself in shall not be held accountable for their breach of conduct and will be protected and immune from punishment. However, any forbidden act that is carried out will not be immune from punishment even if the offender turns him/herself in voluntarily.

Employees are obliged to report on a colleague who has failed to report or correct any form of bribery or entertainment they themselves received as stipulated in the regulations.

2. Bribery

Forbidden Acts

Act	Examples	Appropriate Countermeasure
Bribery	Cash, checks, gift certificates, tickets, presents	Forbidden (You are obliged to report the returning of items in excess of the given limits.)
Reception of movable / immovable property/ joint investments	Movable or immovable property, business rights, memberships, equities	Forbidden
Surrogate redemption of liabilities	Credit card bills, bills, loans
Borrowing money	Borrowing money
Purchase of anything below market value	Making a profit by purchasing movable or immovable property at below market value
Indiscriminate notification of family affairs	Sending wedding or funeral invitations indiscriminately to business partners or agencies via phone, mail, email or fax, in person or through one’s attorney

Object of the Report
Any item received that exceeds KRW 100,000 in value shall be reported in accordance with the procedures listed at the back of this booklet and be returned or disposed of accordingly. However, items less than KRW 100,000 in value shall be returned and no report need be filed.

Exceptions to Bribery
The conventionally accepted give and take of items as provided below are within the generally accepted limit and shall not be considered bribes.
① Voluntary souvenirs, gifts or money for family-related events that come with no strings attached, and are within a limit generally accepted by social morals and customs (under KRW 100,000 in value)
② Contributions made in public to aid employees who are suffering from health problems or accidents
③ Wreaths of flowers and plants received from external stakeholders to convey congratulations for a promotion or inauguration

Reporting procedures: Any unwillingly received bribe shall be dealt with according to the following proceedings:
① General Procedures

A) The person filing the report shall declare the reception of the bribe by e-mailing or phoning the Management Diagnosis Team, or by filling out the form provided at the end of this booklet with evidence attached of how the bribe was returned or properly dealt with, and then submitting the form to the Management Diagnosis Team. Upon reception of the report, the Management Diagnosis Team shall thereupon take the proper action.
B) The person filing the report shall send an official letter to the person(s) providing the bribe or a representative of this person(s) who provided the bribe, requesting cooperation in establishing fair transaction practices along with the received item(s). When these two things are sent separately, a copy of the receipts for such delivery, return or donation of said item(s) shall be enclosed in an envelope with the official letter.
C) When the person who filed the report does not know where to donate the money/item or what to do with said item(s), he/she can consult with the Management Diagnosis Team, or entrust the Management Diagnosis Team to deal with it.

② When returnable: Cash, checks, or gift certificates shall be returned to the person(s) who provided them or to a representative of this person(s).
③ When not returnable:

A) In cases where an item(s) cannot be returned due to organic decomposition, degeneration, or damage, or due to the size or weight of the item(s), the item(s) shall be donated to a charity or religious association in the name of the company where the person who provided it works.
B) In cases where the item(s) has already decomposed and is unable to be returned, the item(s) shall be promptly disposed of and reported on along with the reason for its discarding.
C) In cases where it is impossible to identify the person(s) who provided it, the item(s) shall be donated to a charity or religious association under Hankook Tire’s name.
D) In cases where the item(s) has been used by the recipient, the equivalent amount in market value shall be donated in cash to a charity or religious association in the name of the company where the person(s) who provided it works.
E) The Management Diagnosis Team will be consulted with when there is an invaluable item(s) not suitable for donation, and an external entity shall be consulted with for disposal of the item(s), and ultimately be disposed of on the order of Hankook Tire’s Global CEO.

3. Entertainment/Treatment

Forbidden Objects

Category	Forbidden Objects (Pleasure Resorts and Entertainment Businesses)
Drinking	Room salons/High-end karaoke rooms/Nightclubs
Gambling	Casinos
Business Places of Ill Repute	Turkish baths/Massage parlors/Barber shops that provide illicit sexual services

Object of reporting: Dinner or drinking bills that exceed KRW 50,000 per person or KRW 200,000 in total

Reporting procedures: Any unavoidable and unwilling reception of entertainment or special treatment shall be dealt with as follows:
① Upon invitation to the entertainment venue or reception of special treatment, the person in question shall file a report beforehand to his/her immediate supervisor (team manager for team members and executives for team managers), who will then determine if the case was unavoidable and whether or not to go.
② The party in question taking part in the entertainment or special treatment must avoid receiving anything monetarily in excess of the amount stipulated in this guideline or take part in any activities that are considered forbidden acts.
③ When the entertainment or special treatment in question constitutes the “Object of the reporting,”the person filing the report shall send an official letter to the person providing said event or a representative of this person(s), requesting cooperation in establishing fair transaction practices and attaching a copy of the letter to the report form. After receiving approval from the supervisor, the report form shall be submitted to the Management Diagnosis Team.
④ The employee who ranks highest in the hierarchy among those who plan on participating in the reported event shall file a report both before and after the event.

4. Provision of Benefits

Object Act

Category	Examples	Countermeasure
Business trips paid for by an outside party	Train, airline, bus tickets or accommodation for visits or business trips to a stakeholder’s business premises	Expenses must be paid back in full from Hankook Tire
Vacation expenses paid for by an outside party	Train, airline, bus tickets, car expenses or accommodation for personal purposes	Forbidden act
Guarantee of future employment from an outside party	Guarantee of employment, placement plan or entering into an agreement for other benefits
Co-signing of loans	Co-signing a loan
Borrowing movable /immovable property	Lending or providing assets as collateral for loans

Object of reporting: Failure to repay monetary benefits provided by an outside party

Reporting procedure: After wiring the money to the person(s) who provided the benefits, or a representative of this person(s), a copy of the receipt shall be attached to an official letter to said person(s), requesting cooperation in establishing fair transaction practices. A copy of the letter shall also be attached to the report form, which shall then be submitted to the Management Diagnosis Team after receiving approval from the supervisor of the person who filed the report.

Chapter 2. Operation and Management of Code of Ethics and Ethical Behavioral Guidelines

1. Operation

Knowledge or judgment of any breach of the Code of Conduct by an employee shall call for an immediate audit. When a breach of the Code of Conduct proves true, the case shall be sent to the Personnel Committee for vigorous and impartial deliberation and resolution.

2. Authoritative Interpretation

Any dispute over the interpretation of these provisions shall be settled by a ruling of the Business Ethics Subcommittee and the Personnel Committee.

3. Punishment Clause

All executives and managers are obliged to guide and inspire their fellow colleagues to abide by all rules and principles, and any person who breaches regulations, regardless of their position at the company, shall be punished according to the company’s regulations.

Chapter 3. Addendum

1. The Hankook Tire Code of Conducts shall come into effect on October 8, 2010.
2. These guidelines shall have overriding authority in cases where there is an overlap or conflict with previous provisions.

1. They encourage positive participation by individual employees.
2. They have an established system in place for the practice of business ethics.
3. They not only practice business ethics but also recommend that their business partners practice business ethics.
4. They do not try to cover up anything when trouble arises, and instead come forward to deal with it.
5. They take a strategic approach to the practice of business ethics.
[LG Economy Weekly, December 15, 2004]

1. Legitimacy : Is this in line with the governing regulations or the company’s bylaws?
2. Fairness : Does every stakeholder agree with it?
3. Transparency : Are all procedures and content free of falsities and open to disclosure?

copyright ⓒ 2008 HANKOOK TIRE. All rights reserved.