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Article 1. Purpose

The purpose of this Code of Conduct (hereinafter, “Code”) is to provide for and articulate the standards of conduct which must be complied with by the employees of the Busan Credit Guarantee Foundation (hereinafter, the “Foundation”) in accordance with the provisions of Article 8 of the Act on the Prevention of Corruption and the Establishment and Operation of the Anti-Corruption and Civil Rights Commission (hereinafter, the “Act”), with a view to preventing corruption and ensuring a clean public office atmosphere.

Article 2. Definitions

The terms used in this Code shall have the following definitions.

• 1. “Job-related person” refers to a person related to the duties of an employee, and is an individual (if an employee is in the position of a private person, this is considered an individual) or corporation or organization that falls under any of the following categories.

  • a. An individual, corporation, or organization that is clearly applying or intends to apply to the Foundation for civil affairs services
  • b. An individual, corporation, or organization subject to authorization/permission, inspection, audit, crackdown, guidance, etc.
  • c. An individual, corporation, or group that directly receives benefits or disadvantages from decisions, appraisals, tests, assessments, adjustments, etc.
  • An individual, corporation, or organization that clearly enters into or intends to enter into a contract with the Foundation
  • e. An individual, corporation, or group that requests a specific action from the Foundation, or is affected by financial interests due to the exercise or non-exercise of authority by employees
  • f. An individual, corporation, or organization that directly receives benefits or disadvantages from decisions or execution of policies, projects, etc.
  • g. Other individuals, corporations, or organizations related to work determined by the chairperson to prevent corruption

• 2. “Job-related employees” refers to employees who fall under any of the following categories, among the employees who directly receive benefits or disadvantages in connection with the performance of their duties.

  • a. A subordinate who receives official orders related to the duties of an employee
  • b. An employee of the organization who performs duties such as personnel, budget, audit, awards, or evaluations
  • c. When delegating or entrusting work, the employees who receive the work and are so delegated or entrusted
  • d. Other employees determined by the chairperson

• 3. “Money, valuables, etc.” refers to any of the following items.

  • a. All property interests, including money, securities, real estate, goods, accommodation tickets, membership tickets, admission tickets, discount tickets, invitation tickets, viewing tickets, and the right to use real estate, etc.
  • b. Provision of hospitality and entertainment such as food, alcohol, golf, etc., or conveniences such as transportation and lodging
  • c. Other tangible and intangible economic benefits, such as exemption from debt, provision of employment, granting of interests, etc.

Article 3. Scope of Application

This Code shall be applied to all employees of the Foundation.

Article 4. Handling of Instructions Impairing the Fair Performance of Duties

• ① Employees must not give instructions to subordinates that significantly impair the fair performance of their duties or are in violation of laws or regulations, for their own benefit or for the benefit of others.
• ② Employees who have received instructions from their superiors that violate Paragraph 1 must not follow the instructions and must explain the reason to their superiors through Form No. 1 or e-mail, etc. or must fail to comply with the instructions and submit Form No. 2 or an e-mail, etc. With regard to method, you may consult with an employee in charge of the Code of Conduct designated pursuant to Article 35 (hereinafter, “Code of Conduct Supervisor”).
• ③ If the same instructions are repeated even though the instructions have not been implemented in accordance with Paragraph 2, the person in charge of the Code of Conduct must be consulted immediately using Form No. 2 or e-mail, etc.
• ④ The Code of Conduct Supervisor who has received a request for consultation pursuant to Paragraph 2 or 3 shall check the contents of the instructions and report to the chairperson if it is deemed necessary to cancel or change the instructions. However, in the process of confirming the instructions, if the superior who gave an unreasonable instruction cancels or changes the instruction himself, the report may not be made to the chairperson.
• ⑤ The chairperson who has received a report pursuant to Paragraph 4 shall, if deemed necessary, take appropriate measures, such as canceling or changing the instructions. In this case, necessary measures, such as disciplinary action, may be taken against a superior who repeats the same instructions even though the instructions impairing the fair performance of duties have not been carried out in accordance with Paragraph 2.

Article 5. Reporting of Private Interests, Etc.

• ① If any of the following applies, employees must report the fact to the chairperson in writing (including electronic documents; the same shall apply hereinafter) according to the form in Appendix 3. However, this shall not apply if employees perform simple civil service tasks determined by the chairperson (Revised on April 17, 2018).
  • 1. If the employee is a job-related person (Revised on April 17, 2018)
  • 2. When an employee's relative within the 4th degree of consanguinity (referring to a relative under Article 767 of the Civil Act) is job-related person
  • 3. If the corporation or organization where the employee has worked for less than 2 years is job-related (Revised on April 17, 2018)
  • 4. If the corporation or organization in which the employee or his or her family member (referring to family under Article 779 of the Universal Law; hereinafter the same shall apply) serves as an employee or outside director is job-related (Revised on April 17, 2018)
  • 5. If the employee or their family member represents a person related to their job, provides advisory service or advice, etc. to a person related to their job, or belongs to a corporation or organization that performs such work as a representative, advisor or advisor (Revised on April 17, 2018).
  • 6. If a corporation or organization (hereinafter, “specially related business entity”) whose employees or their family members own more than the following percentage of stocks, shares, capital, etc. is job-related (Revised on April 17, 2018)
    • a. A business entity in which the total number of stocks owned by employees or family members is more than 30/100 of the total number of issued stocks.
    • b. A business entity in which the total number of shares owned by employees or family members is more than 30/100 of the total number of invested shares.
    • c. A business entity in which the combined amount of capital owned by employees or family members is more than 50/100 of the total capital.
  • 7. In addition, when a person who is determined by the chairperson to be in a relationship that makes it difficult to perform duties fairly is a person related to the job (Revised on April 17, 2018)
• ② If a person is related to a job or has an interest in the performance of an employee's duties, if the employee falls under any of the items in Paragraph 1, take measures such as reassigning the employee's job by submitting a written request to the chairperson of the board in accordance with the form in Appendix No. 4. In this case, the chairperson of the board may receive opinions from employees who are the subject of applications for measures such as job reassignment, and the employees concerned must submit their opinions in writing using Form No. 5 in the Appendix (April 17, 2018) (Revised on February 1, 2019).
• ③ Even if employees recognize that they have a personal interest other than those in the items of Paragraph 1 with a person related to their duties, they may apply in writing to the chairperson of the board for measures such as job reassignment in accordance with Form No. 6 (Revised on April 17, 2018).
• ④ If the chairperson of the board of directors who has received a report pursuant to the main text of Paragraph 1 or an application pursuant to Paragraph 2 or 3 determines that the fair performance of duties by his/her employees may be hindered, he/she may take the following measures against the employees (Revised on April 17, 2018):
  • 1. Temporary suspension of job participation (Revised on April 17, 2018)
  • 2. Designation of a representative or co-performer of duties (Revised on April 17, 2018)
  • 3. Job reassignment (Revised on April 17, 2018)
  • 4. Transfer (Revised on April 17, 2018)
• ⑤ Notwithstanding Paragraph 4, the chairperson of the board may, in any of the following cases, require the relevant employee to perform his or her duties. In this case, the chairperson of the board must have the Code of Conduct Supervisor confirm and check whether duties are performed fairly (Revised on April 17, 2018)
  • 1. It is extremely difficult to replace the employee performing their duties (Revised on April 17, 2018)
  • 2. The need to perform duties is greater due to the promotion of public interest (Revised on April 17, 2018)
• ⑥ The chairperson records the status of reports pursuant to the main text of Paragraph 1, applications pursuant to Paragraphs 2 and 3, actions pursuant to Paragraph 4, and confirmation and inspection pursuant to the latter part of Paragraph 5 in accordance with Form No. 7. •Must be managed (Revised on April 17, 2018).
• ⑦ In addition to the matters stipulated in Paragraphs 1 to 6, the chairperson shall determine matters necessary for reporting the personal interests of employees (Revised on April 17, 2018).

Article 6. Submission of the Details of Executives’ Private Sector Work Activities

• ① Executives (referring to standing directors and auditors under Article 24 of the Act on the Management of Public Institutions, and persons in equivalent positions; the same shall apply hereinafter), within 30 days of their date of appointment to the position or the start of their term of office, shall submit in writing the details of their business activities in the private sector prior to their appointment or the commencement of their term (for three years) to the chairperson (referring to the Code of Conduct Supervisor as per Form No. 8 in Appendix (Revised on April 17, 2018).
• ② The details of private sector business activities under Paragraph 1 shall include the following (Revised on April 17, 2018).
  • 1. Juridical company/organization where he/she worked and work details (Revised on April 17, 2018)
  • 2. Details of the business or commercial activity managed and operated (Revised on April 17, 2018)
  • 3. Other matters determined by the chairperson (Revised on April 17, 2018)
• ③ The chairperson of the board must store and manage the details of private sector business activities submitted pursuant to Paragraph 1 (Revised on April 17, 2018)

Article 7. Prohibition of Job Related Commercial Activities, Etc.

• ① Employees shall not engage in any of the following acts in connection with their duties. However, this shall not apply if permitted under other regulations (Revised on April 17, 2018).
  • 1. Providing labor or advice/advice privately to a person related to the job and receiving compensation (Revised on April 17, 2018)
  • 2. Representing the other party of an affiliated organization or providing advice or information to the other party when the organization to which one belongs is a party to a dispute, etc. or has a direct interest in the affiliated organization (Revised on April 17, 2018).
  • 3. Acting on behalf of foreign governments, institutions, corporations, or organizations. However, this requirement can be waived with the approval of the chairperson (Revised on April 17, 2018).
  • 4. Taking office in another position related to one’s job. However, this requirement can be waived with the approval of the chairperson (Revised on April 17, 2018).
  • 5. Job-related actions determined by the chairperson as likely to impede the fair and honest performance of duties (Revised on April 17, 2018).
• ② If the chairperson of the board determines that the conduct of an employee falls under any of the subclauses of Paragraph 1, he or she shall order the employee to suspend or terminate the conduct (Revised on April 17, 2018).

Article 8. Restrictions on Hiring Family Members

• ① An executive may report to the institution to which he or she belongs, the institution's affiliated institutions or contributing institutions, and subsidiaries, subsidiaries, and affiliated companies (referred to as directors' subsidiaries, etc.) pursuant to Article 2 of the Monopoly Regulation and Fair Trade Act. Undue influence must not be exercised, such as directing the hiring of a member of the executive’s family (Revised on April 17, 2018).
• ② Employees in charge of personnel affairs (including all employees who can actually exert an influence on personnel affairs) must not exercise undue influence, such as directing the organization to which they belong to hire members of their family (Revised on April 17, 2018).
• ③ Employees in charge of directing, supervising, regulating or supporting subsidiaries, etc. must not exercise undue influence, such as directing their family members to be hired at subsidiaries of the organization to which they belong (Revised on April 17, 2018).

Article 9. Restrictions on Entering into Private Contracts

• ① ① Executives must not enter into private contracts (hereinafter, “private contracts”) for goods, services, construction, etc. with the organization to which they belong, their affiliated organizations or subsidiaries, and their family members or affiliated business entities must not enter into private contracts with executives. Executives must not be allowed to enter into a private contract with the institution to which they belong, its affiliated institutions or subsidiaries, etc. (Revised on April 17, 2018).
• ② ② Employees in charge of contract work must not enter into a private contract with the institution to which they belong, and also must not allow their family members to enter into a private contract with said institution (Revised on April 17, 2018).
• ③ ③ Employees in charge of directing, supervising, regulating or supporting subsidiaries, etc. must not enter into private contracts with subsidiaries of the organization to which they belong, and must not allow their family members to enter into private contracts with those subsidiaries, etc. (Revised on April 17, 2018).

Article 10. Reporting of Private Contacts with Retired Person

• ① ① If an employee has personal contact with a retiree of his/her organization who is related to his or her job (applicable only for 2 years following the date of retirement), such as engaging in golf, travel, or engaging in speculative entertainment, he/she must notify the chairperson of the board using Form No. 9. However, this shall not apply if it is permitted according to other regulations or social norms (Revised on April 17, 2018).
• ② ② The type of personal contact, report details, reporting method, etc. pursuant to Paragraph 1 shall be determined by the chairperson (Revised on April 17, 2018).

Article 11. Exclusion of Preferential Treatment

In performing their duties, employees must not give preferential treatment to or discriminate against specific people due to regional origin, blood ties, academic ties, religion, etc. (Revised on April 17, 2018).

Article 11-2. Prohibition of Personal Use of Position

[Deleted] (Deleted on April 17, 2018)

Article 12. Prohibition of Use for Purposes Other Than Budget

Employees must not cause property damage to their affiliated organizations by using the budget for work performance, such as travel expenses and business promotion expenses, for purposes other than the intended purpose (Revised on April 17, 2018).

Article 13. Handling of Unfair Demands from Politicians, Etc.

• ① ① If an employee is forced to perform his or her duties unfairly or receives an unfair request from a public official, politician, or political party, he or she must report it to the chairperson of the board using Form No. 10 or by e-mail, or consult with the Code of Conduct Supervisor (Revised on April 17, 2018).
• ② The chairperson of the board who receives a report pursuant to Paragraph 1 or the officer in charge of the Code of Conduct who is consulted must take appropriate measures to ensure that the employees perform their duties fairly (Revised on April 17, 2018).

Article 14. Prohibition of Personnel Solicitation, Etc.

• ① Employees shall not allow others to request favors from personnel managers in order to unfairly influence personnel matters, such as their own appointment, promotion, or transfer (Revised on April 17, 2018).
• ② Employees must not use their positions to unfairly intervene in personnel affairs, such as the appointment, promotion, or transfer of other employees (Revised on April 17, 2018).

Article 15. Transparent Accounting Management

Employees must manage accounting accurately and transparently based on facts in accordance with relevant laws and generally accepted accounting principles (Revised on April 17, 2018).

Article 16. Prohibition of Interference for Interests, Etc.

Employees must not directly use their positions to gain unfair profits or allow others to gain unfair profits (Revised on April 17, 2018).

Article 17. Prohibition of Personal Use of Position

Employees shall not use or allow the use of methods such as announcing or disclosing the name or position of their organization for personal gain that is beyond the scope of their duties (Revised on April 17, 2018).

Article 18. Prohibition of Mediation, Solicitation, Etc.

• ① ① Employees shall not engage in mediation or solicitation that undermines the fair performance of duties by other public officials (refers to public officials under Items (a) and (b) of Subparagraph 3, Article 2 of the Act; the same shall apply hereinafter) for their own or others' unfair benefit (Revised on April 17, 2018).
• ② ② In connection with the performance of duties, employees shall not introduce job-related persons to other job-related persons or public officials for the unfair benefit of themselves or others (Revised on April 17, 2018).
• ③ Employees shall not exercise their official authority for the unfair benefit of themselves or others, or use de facto influence derived from their status or position, to make any of the following arrangements or requests to a person who is not a public official (Revised on April 17, 2018).
  • 1. Intervening with or influencing a specific individual, corporation, or organization to make investments, deposits, loans, appearances, contributions, donations, sponsorships, sponsorships, etc. (Revised on April 17, 2018)
  • 2. Intervening in or influencing personnel affairs or disciplinary affairs such as recruitment, promotion, transfer, etc. (Revised on April 17, 2018)
  • 3. Disclosing business secrets related to bidding, auction, research and development, testing, patents, etc. (Revised on April 17, 2018)
  • 4. Intervening in or influencing the selection of contracting parties, whether or not a contract is concluded, etc. (Revised on April 17, 2018)
  • 5. Requesting a specific individual, corporation, or organization to sell, exchange, use, profit from, occupy, or provide goods or services outside of normal transaction practices (Revised on April 17, 2018)
  • 6. Intervening in or influencing the affairs of schools at each level, such as admission, grades, and performance evaluation (Revised on April 17, 2018)
  • 7. Intervening in or influencing the selection of various awards, rewards, selection of excellent institutions or excellent candidates, selection of scholarship students, etc. (Revised on April 17, 2018)
  • 8. Selecting or excluding a specific individual, corporation, or organization from the subject of an audit or investigation, manipulating the results of an audit or investigation, or condoning the violation (Revised on April 17, 2018)
  • 9. Other acts determined by the chairperson to constitute mediation, solicitation, etc. that impede the fair performance of duties by non-public officials (Revised on April 17, 2018)

Article 18-2. Restrictions on the Receipt of Honoraria for External Lectures, Etc.

[Deleted] (Deleted on April 17, 2018)

Article 18-3 (Method of reporting excess key money, etc.)

[Deleted] (Deleted on April 17, 2018)

Article 19. Restrictions on Transactions Using Job Related Information, Etc.

• ① Employees must not use information learned while performing their duties to engage in property transactions or investments related to stocks, securities, real estate, etc., or provide such information to others to assist in property transactions or investments. (Revised on April 17, 2018).
• ② Information whose use or provision is restricted pursuant to Paragraph 1 refers to undisclosed information learned by employees while performing duties related to the following (Revised on April 17, 2018).
  • 1. Personal information (Revised on April 17, 2018)
  • 2. Credit information (Revised on April 17, 2018)
  • 3. All information investigated to determine creditworthiness, such as financial information and business information of guaranteed customers (Revised on April 17, 2018)

Article 20. Prohibition of Private Use and Profit of Public Property

Employees must not use or profit from assets owned by the Foundation, such as vehicles and real estate, and additional services such as airline mileage and accumulated points provided through the use of the Foundation's budget for personal purposes, without justifiable reasons (Revised on April 17, 2018).

Article 21. Prohibition of Requesting Private Labor

Employees must not receive, request, or promise private labor from job-related persons or job-related employees by exercising their job authority or by exercising the de facto influence derived from their status or position. However, this shall not apply if it is permitted according to other regulations or social norms (Revised on April 17, 2018).

Article 21-2. Prohibition of Unfair Acts by Exercise of Official Authority, Etc.) (Newly established February 1, 2019)

Employees must not exercise their job authority or actual influence derived from their status or position to engage in any of the following unfair acts.

• 1. For an employee in charge of authorization, permission, etc., to unfairly delay or refuse receipt in order to disadvantage the applicant or to give an advantage or disadvantage to a third party
• 2. Give unreasonable instructions or requests to job-related employees that are unrelated to their duties or beyond the scope of their duties
• 3. Unfairly transfer the performance of the obligations or burdens of the organization to which one belongs to a person related to the duties, or unfairly delay the processing of work in connection with contracts for goods, services, construction, etc. concluded by the organization to which one belongs
• 4. Unfairly transfer one’s duties within their organization to the organization to which the person belongs, or unfairly transfer the costs or manpower related to that work to the organization to which the person belongs
• 5. Engage in other acts that unfairly restrict the rights and authority of job-related personnel, job-related employees, or organizations to which one belongs, or unfairly request work for which one does not have an obligation

Article 22. Prohibition of Receipt of Bribes

• ① Employees shall not receive, request, or promise to receive money or goods exceeding KRW 1 million at a time or KRW 3 million in each fiscal year from the same person, regardless of whether it is job-related or classified as donations, sponsorships, gifts, etc. (Revised on April 17, 2018).
• ② In connection with their duties, employees shall not receive, request, or promise to receive money, goods, etc. below the amount specified in Paragraph 1, regardless of whether it is in return for compensation (Revised on April 17, 2018).
• ③ Honoraria for external lectures, etc. under Article 24, or money, valuables, etc. that fall under any of the following categories is not included in the types of money, valuables, etc. prohibited from being received in Paragraph 1 or 2 (Revised on April 17, 2018).
  • 1. Money, valuables, etc. paid by the head of a public institution to their dispatched employees, or provided by a superior to a subordinate for the purpose of comfort, encouragement, or reward (Revised on April 17, 2018)
  • 2. Money, valuables, etc. within the value range specified in [Appendix 2] (head of the institution may set stronger standards than [Appendix 2]) as food, congratulatory and condolence expenses, gifts, etc. provided for the smooth performance of duties, social gatherings, ceremonies, or assistance purposes (Revised on April 17, 2018)
  • 3. Money, goods, etc. provided by legitimate title, such as fulfillment of debt resulting from private transactions (excluding gifts) (Revised on April 17, 2018)
  • 4. Money, valuables, etc. provided by relatives of employees (referring to relatives under Article 77 of the Civil Act) (Revised on April 17, 2018)
  • 5. Money, goods, etc. provided to members in accordance with the standards set by employee mutual aid associations, clubs, alumni associations, neighborhood associations, social associations, religious groups, social organizations, etc. related to employees, and persons who have a particularly long-term and continuous friendly relationship with employees, such as members of such organizations. Money, valuables, etc. provided to employees in difficult situations due to illness, disaster, etc. (Revised on April 17, 2018)
  • 6. Money and valuables such as transportation, accommodation, food, etc. provided uniformly by the organizer to all attendees at official events related to the duties of employees within the usual range (Revised on April 17, 2018)
  • 7. Souvenirs or promotional items to be distributed to an unspecified number of people, or rewards or prizes received through contests or sweepstakes (Revised on April 17, 2018)
  • 8. Other money, valuables, etc. permitted according to social regulations (the head of the institution may specify and add money, valuables, etc. that are permitted to be received according to social regulations, to the extent that they do not undermine the integrity of employees) (Revised on April 17, 2018)
• ④ Notwithstanding Subparagraph 5, Paragraph 3, if a person with whom he or she has a particularly long-term or continuous personal relationship pursuant to the same item provides money, valuables, etc. as a job-related person or a job-related employee, employees shall report the receipt in accordance with Form No. 11, which shall also be reported to the chairperson of the board (Revised on April 17, 2018).
• ⑤ An employee may receive or request money, valuables, etc. which an employee is prohibited from receiving pursuant to Paragraph 1 or 2 (referred to as “receiving prohibited money, valuables, etc.”) in connection with his or her duties. You must not promise to receive it (Revised on April 17, 2018).
• ⑥ Employees shall not provide, promise to provide, or express the intent to provide prohibited money, valuables, etc. to other employees, or to the spouse, lineal ascendant, or descendant of such employee (Revised on April 17, 2018).
• ⑦ Employees shall not provide, promise to provide, or express an intention to provide money, goods, etc. to public officials or politicians related to their duties for the purpose of benefiting the Foundation. However, the cases stipulated in each Subparagraph of Paragraph 3 are excluded (Revised on April 17, 2018).

Article 23. Conclusion and Implementation of Integrity Contracts

• ① Employees must perform their duties fairly and transparently in accordance with the procedures set forth in the relevant laws and regulations in all bidding, contracts, and contract performance conducted by the Foundation (Revised on April 17, 2018).
• ② In the process of bidding, contracting, and contract performance under Paragraph 1, employees must not use their superior position in transactions to demand prohibited money, valuables, etc., or make unfair demands such as forcing unfair transaction conditions or interfering with management (Revised on April 17, 2018).

Article 23-2. Investigation Committee on Violations of the Code of Conduct

[Deleted] (Deleted on April 17, 2018)

Article 24. Restrictions on the Receipt of Honoraria for External Lectures, Etc.

• ① When employees give lectures, seminars, contributions, etc. (hereinafter, “external lectures, etc.”), a reward exceeding the amount specified in [Appendix 3] shall not be accepted as compensation (Revised on April 17, 2018).
• ② When giving an external lecture, etc. for which an honorarium is received, employees must report the details of the request for external lectures, etc. to the chairperson within 10 days from the date of completion of the external lecture, etc., using Form No. 12. However, this shall not apply if the person requesting the external lecture, etc. is the state or local government (Revised on April 17, 2018) (Revised on May 27, 2020).
• ③ When making a report pursuant to Paragraph 2, if employees do not know the detailed information or the total amount of the gratuity in advance, they must report the matters excluding such information, and then provide supplementary information within 5 days from the date of becoming aware of the relevant matters (Revised on April 17, 2018).
• ④ [Deleted] (Deleted on May 27, 2020)
• ⑤ If the chairperson determines that external lectures, etc. reported by an employee pursuant to Paragraph 2 may hinder the fair performance of duties, he or she may restrict the external lecture, etc. of the employee (Revised on April 17, 2018) (Revised on May 27, 2020)
• ⑥ If an employee receives a gratuity in excess of the amount pursuant to Paragraph 1, he/she must report it to the chairperson of the board and return the excess amount to the provider without delay (Revised on April 17, 2018).
• ⑦ If employees return the excess amount pursuant to Paragraph 6, they may request the return cost from the chairperson of the board using Form No. 15, attaching evidentiary materials (Revised on April 17, 2018) (Revised on February 1, 2019).
• ⑧ If an employee intends to give external lectures for compensation more than three times in a month, he or she must obtain prior approval from the chairperson of the board. However, external lectures requested by the national or local government or conducted with permission for concurrent positions are not included in the number of lectures (Revised on April 17, 2018).

Article 25. Method of Reporting on Honoraria, Etc.

• ① ① If an employee receives an honorarium for external lectures, etc. (hereinafter, “excess honorarium”) in excess of the amount determined by the chairperson, he or she must report it to the chairperson using Form No. 13 within 2 days from the date he or she becomes aware of the fact that the excess honorarium was received (Revised on April 17, 2018).
• ② For an employee who has not returned the excess gratuity, the chairperson of the board who has received a report pursuant to Paragraph 1 shall calculate the amount of excess gratuity to be returned within 7 days after confirming the report, and notify the relevant employee (Revised on April 17, 2018).
• ③ Employees who have received notification pursuant to Paragraph 2 must immediately return the excess gratuity (if the reporter already returned part of the excess gratuity, the difference) to the provider and notify the chairperson of the fact (Revised on April 17, 2018).

Article 26. Reporting Transactions with Job Related Persons, Etc.

• ① An employee may fall under any of the following cases if the employee, their spouse, lineal ascendant or descendant (applicable only to those who live together; hereinafter the same shall apply in this Article), or a specially-related business operator, is directly related to the employee's job or directly with a job-related employee. In cases where one of the following acts is performed (including gratuitous acts), it must be reported in advance to the chairperson of the board in writing using Form No. 19 (Revised on April 17, 2018).
  • 1. Borrowing or lending money and trading securities. However, the act of borrowing money under normal conditions from financial companies, etc. under Subparagraph 1 of Article 2 of the Act on Real Name Financial Transactions and Guarantee of Confidentiality and the act of trading securities are excluded (Revised on April 17, 2018).
  • 2. Trading real estate, automobiles, ships, aircraft, construction machinery, and other similar properties. However, trading activities through public auctions, auctions, bidding, and public drawings (hereinafter, “public auctions, etc.”) are excluded (Revised on April 17, 2018).
  • 3. In addition to the transactions specified in Subparagraphs 1 and 2, acts of concluding contracts for goods (excluding daily necessities), services, construction, etc. However, this excludes the act of concluding a contract through public auction, etc., or the act of concluding a contract repeatedly targeting an unspecified number of people due to transaction practices (Revised on April 17, 2018).
• ② If an employee engages in an act falling under any of the Subparagraphs of Paragraph 1 with a person related to his or her job, a job-related employee or a related business person, or the spouse, lineal ascendant or descendant of the same, he/she must report it in advance to the chairperson of the board using Form No. 19. However, this shall not apply if two years have passed since the date on which the duties related to the job or the job-related employees were completed (Revised on April 17, 2018).
• ③ 제1항 및 제2항에도 불구하고 직무관련자나 직무관련임직원 또는 직무관련자이었던 자나 직무관련임직원이었던 사람이「민법」제777조에 따른 친족인 경우는 제외한다.(2018. 4. 17 개정)
• ④ Notwithstanding Paragraphs 1 and 2, cases where a job-related person, a job-related employee, or a person who was a job-related person or a job-related employee are relatives under Article 777 of the Civil Act are excluded (Revised on April 17, 2018).
• ⑤ If it is difficult for employees to report in advance pursuant to Paragraphs 1 and 2, they must report in writing according to Form No. 19 within 5 days from the date of completion of the relevant transaction, etc. However, if it is not an employee's own transaction or a transaction was made through a brokerage or agency by a third party and it is difficult to know in advance and report it, the transaction must be reported within 5 days from the date of becoming aware of the transaction (Revised on April 17, 2018).

Article 27. Establishment of a Healthy Congratulations and Condolences Culture

• ① Employees must lead by example to establish a healthy congratulations and condolences culture (Revised on April 17, 2018).
• ② Employees must not inform job-related persons of congratulations or condolences. However, in any of the following cases, congratulations and condolences may be announced (Revised on April 17, 2018).
  • 1. When notifying relatives (referring to relatives under Article 767 of the Civil Act) (Revised on April 17, 2018)
  • 2. When notifying employees of an organization where they currently work or worked in the past (Revised on April 17, 2018)
  • 3. When a notification is given through newspapers, broadcasts, or internal communication networks that are only accessible to employees under Subparagraph 2 (Revised on April 17, 2018)
  • 4. When a notification is given to members of religious groups, social groups, etc. to which employees belong (Revised on April 17, 2018) Article 27-2. Prohibition of Unreasonable Demands by Supervisory Authorities (This article was newly established on February 1, 2019)

Article 27-2. Prohibition of Unreasonable Demands by Supervisory Authorities (This article was newly established on February 1, 2019)

• ① Employees belonging to organizations that conduct supervision, audit, investigation, evaluation, etc. (hereinafter, “supervisory organizations” in this Article) are subject to supervision, audit, investigation, evaluation, etc. in connection with business trips, events, training, etc. of the affiliated organization. Unreasonable demands falling under any of the following must not be made to an institution (hereinafter, “audited institution” in this Article).
  • 1. Requests for the provision of money, valuables, etc. that has no basis in law or does not correspond to the purpose and use of the budget
  • 2. Requests for courtesy and protocol that deviate from normal practices for employees
• ② An employee belonging to the audited organization who has received an unreasonable request pursuant to Paragraph 1 from an employee belonging to the supervisory agency must refuse to comply with the request, and if the same request is received again despite the refusal, the Code of Conduct Supervisor of the audited organization shall be notified in writing using Form 19-2. In this case, if the request falls under any of the items in the same Paragraph, the Code of Conduct Supervisor must promptly report it to the head of the affiliated organization.
• ③ If any of the items in Paragraph 1 falls under any of the provisions of Paragraph 1, the head of the audited organization that has received the report pursuant to Paragraph 2 shall notify the head of the relevant supervisory agency of the fact, and the head of the supervisory agency notified of the fact shall make the relevant request. Necessary measures, such as disciplinary action, must be taken against employees.

Article 28. Consultation on Violation

• ① Employees shall take action when it is unclear whether this Code has been violated in connection with mediation, solicitation, unfair acts in the exercise of official authority, etc., acceptance of money or valuables, acceptance of honoraria for external lectures, etc., notification of family events or condolences, unfair requests from supervisory agencies, etc., and it must be processed after consulting with the Code of Conduct Supervisor, and the Code of Conduct Supervisor must manage the contents of the consultation according to Form No. 21 (Revised on April 17, 2018) (Revised on February 1, 2019).
• ② The chairperson of the board shall take necessary measures, such as installing a dedicated telephone and counseling room, to ensure that the consultation as per Paragraph 1 can be conducted smoothly (Revised on April 17, 2018).

Article 29. Reporting on and Confirmation of Violations

• ① ① If anyone becomes aware that an employee has violated this Code, they may report it to the head of the organization to which the employee belongs, the Code of Conduct Supervisor in charge of that organization, or the Anti-Corruption and Civil Rights Commission according to Form No. 20. (Revised on April 17, 2018).
• ② A person who reports pursuant to Paragraph 1 must provide detailed personal information of the person and the violator, and the details of the violation (Revised on April 17, 2018).

Article 30. Guarantee of Reporter’s Identity Protection

• ① The chairperson of the board and the officer in charge of the Code of Conduct must guarantee the confidentiality of the reporter and the contents of the report pursuant to Article 29, and must ensure that the reporter does not suffer disadvantages due to the report (Revised on April 17, 2018).
• ② Notwithstanding the preceding Paragraph, a reporter who has suffered a disadvantage may request the Code of Conduct Supervisor, the chairperson, or the Anti-Corruption and Civil Rights Commission for protective measures and relief from disadvantages, and in such a case, the chairperson and the Code of Conduct Supervisor must take appropriate measures (Revised on April 17, 2018)
• ③ ② If a violation is discovered through a report pursuant to Article 29, disciplinary action against the reporter may be lessened or waived (Revised on April 17, 2018).
• ④ Paragraphs 1 to 3 shall also apply to consultations and reports pursuant to this Code (Revised on April 17, 2018).

Article 31. Investigation Committee on Violations of Code of Conduct (This article was newly established on April 17, 2018.)

• ① If necessary for a fair investigation into violations of the Code of Conduct by his/her employees, the chairperson may form and operate an investigation committee headed by the Code of Conduct Supervisor.
• ② The investigation committee under Paragraph 1 shall be composed of three or more people.

Article 32. Disciplinary Action (This article was newly established on April 17, 2018.)

• ① The chairperson shall take necessary measures, such as disciplinary action, against employees who have committed acts in violation of this Code, and the type, procedure, and effect of disciplinary action shall be in accordance with the disciplinary regulations of the Busan Credit Guarantee Foundation (Revised on November 11, 2019).
• ② When taking disciplinary action against an employee who violates Article 22, the chairperson shall take into account the standards for disciplinary action for violation of the prohibition on receiving money, valuables, etc. in Appendix 4. Notwithstanding the disciplinary provisions set forth in Paragraph 1, disciplinary action cannot be reduced on the grounds of merit (Revised on November 11, 2019).
• ③ If an employee violates Article 30 and imposes disadvantages on the reporter, the chairperson may impose additional disciplinary action. (Newly established on November 11, 2019)
• ④ When taking disciplinary action against an employee who performed his or her duties pursuant to an improper solicitation in violation of Article 6 of the Act on the Prohibition of Improper Solicitation and Acceptance of Money, Valuables, etc., the chairperson shall take into account the standards set forth in each of the following items (newly established on November 11, 2019).
  • 1. If the extent of misconduct is severe and intentional: Dismissal
  • 2. If the extent of misconduct is severe and gross negligence, or if the extent of misconduct is weak and intentional: Dismissal - Dismissal.
  • 3. If the extent of misconduct is severe and it is negligence, if the extent of misconduct is mild and it is gross negligence: Demotion - suspension.
  • 4. If the extent of misconduct is mild and progress is made: salary reduction – reprimand

Article 33. Reporting and Handling of Prohibited Money, Valuables, Etc. (newly established on April 17, 2018)

• ① Employees must report any of the following to the chairperson of the board without delay using Form No. 14.
  • 1. An employee receives prohibited money or valuables, or receives a promise or expression of intent to provide the same.
  • 2. An employee becomes aware that his or her spouse, lineal ascendant, or descendant has received prohibited money or valuables, or has received a promise or expression of intent to provide such money or valuables.
• ② In cases that fall under any of the Subparagraphs of Paragraph 1, officers and employees may not delay in returning money, goods, etc. to the person who provided the money, goods, etc. (hereinafter, “provider” in this Article) or to the person who promised or expressed an intention to provide the money, goods, etc. Such money, goods, etc. must be returned or made to be returned without notice, or the intention of refusal must be declared or made clear.
• ③ If an employee returns money, goods, etc. pursuant to Paragraph 2, he/she may request the chairperson of the board to pay the cost of the return using Form No. 15, attaching evidentiary materials.
• ④ If money, goods, etc. that are to be returned pursuant to Paragraph 2 fall under any of the following categories, employees must deliver or cause them to be delivered to the chairperson of the board.
  • 1. Money, goods, etc. for which there is a risk of loss, corruption, deterioration, etc.
  • 2. Money, goods, etc. for which the provider or providers' address is unknown
  • 3. Money, goods, etc. for which there are other circumstances that make it difficult to return it to the provider
• ⑤ If the chairperson receives money, valuables, etc. pursuant to Paragraph 4, he/she must immediately take a photo or record it on video and manage it using Form No. 16. Except in cases where there are special provisions in other laws, the following requirements shall be observed. Proceed accordingly.
  • 1. If it is confirmed that the money, goods, etc. are not prohibited: Return to the person who delivered the money, goods, etc.
  • 2. If it is confirmed that it is prohibited money or valuables, and it is necessary for follow-up measures such as additional investigation, audit, investigation, or disciplinary action: Submit as evidence to the relevant agency or keep until follow-up measures are completed.
  • 3. Notwithstanding the provisions of Subparagraphs 1 and 2, if it is determined that return, submission, or storage is difficult due to loss, corruption, deterioration, etc.: Dispose of the money, goods, etc. with the consent of the person who delivered the money, goods, etc. according to Form No. 17.
  • 4. In other cases, proceed according to revenue measures, donations to social welfare facilities, public interest organizations, etc., or standards determined by the chairperson of the board.
• ⑥ The chairperson shall manage the money, valuables, etc. processed pursuant to Paragraph 5 using Form No. 18, and shall notify the person who delivered the money, valuables, etc. of the processing results pursuant to Paragraph 5.
• ⑦ The chairperson may prepare and implement measures such as preferential treatment, rewards, etc. for those who report prohibited money, valuables, etc.

Article 34. Training (This article was newly established on April 17, 2018)

• ① The chairperson of the board of directors must establish and implement a training plan for employees to ensure compliance with this Code, and record and manage the results
• ② The chairperson of the board of directors must provide training pursuant to Paragraph 1 at least once per year, and training must be provided to new employees upon new appointment.
• ③ Training conducted pursuant to Paragraph 1 shall include the following. (Newly established on February 1, 2019)
  • 1. Information pertaining to the prohibition and restriction of receiving entertainment, money, etc. in connection with duties
  • 2. Information pertaining to the prohibition and restriction of personnel involvement, interest interference, mediation, solicitation, and unfair acts using one's position
  • 3. Rules that employees must adhere to in order to create a healthy public office atmosphere, including fair personnel management
  • 4. Information related to reporting and processing procedures for violations of the employee Code of Conduct and protection of reporters, etc.
  • 5. Other information necessary to prevent corruption and maintain the integrity and dignity of employees’ duties.

Article 35. Designation of the Code of Conduct Supervisor (Newly established on April 17, 2018)

• ① With a view to ensuring the smooth operation of this Code, the chairperson shall designate the head of the department in charge of auditing or ethics work in the institution and its affiliated organizations as the Code of Conduct Supervisor. However, if there is no separate department in charge of audit or ethics work, the supervisor may be designated from among those in charge. If it is not appropriate to designate the Code of Conduct Supervisor in the affiliated organization, considering the size, nature, and geographical characteristics of the affiliated organization, etc., the Code of Conduct Supervisor may not be designated.
• ② The Code of Conduct Supervisor may also serve as the officer in charge of the prohibition of improper solicitation, etc. pursuant to Article 20 of the Act on the Prohibition of Improper Solicitation and Reception of Money, etc.
• ③ The Code of Conduct Supervisor shall perform the following duties.
  • 1. Matters related to education and counseling regarding the Code
  • 2. Matters related to inspection and evaluation of compliance with the Code
  • 3. Matters related to reporting and investigation of code violations and protection of reporters
  • 4. Other matters necessary for operation of the code
• ④ The Code of Conduct Supervisor shall not disclose any secrets learned while performing duties under Paragraph 3.
• ⑤ As for the institutions where the Code of Conduct Supervisor has not been designated pursuant to the proviso to Paragraph 1, the Code of Conduct Supervisor belonging to a higher organization shall perform duties related to the institution's Code of Conduct.

Article 36. Inspection of Compliance (This article was newly established on April 17, 2018)

• ① The Code of Conduct Supervisor must inspect the status of implementation and compliance with the code by employees at least once a year.
• ② In addition to the regular inspection pursuant to Paragraph 1, the Code of Conduct Supervisor may conduct occasional inspections during periods of vulnerability to corruption, such as vacation seasons and before and after holidays.
• ③ The Code of Conduct Supervisor must report the results of the inspection pursuant to Paragraphs 1 and 2 to the chairperson of the board.

Article 37. Rewards (This article was newly established on April 17, 2018)

The chairperson may give preferential treatment or awards to employees who have contributed to the implementation and development of the Code.

Article 38. Operation of the Code of Conduct (This article was newly established on April 17, 2018)

The chairperson may establish and implement the necessary details for the operation of the Code.

Article 1. Date of Enforcement

This Code shall enter into force and become effective on September 28, 2016.

This Code shall enter into force and become effective on February 1, 2018.

Article 1. Date of Enforcement

This Code shall enter into force and become effective on April 17, 2018.

Article 2. Example of Application on the Submission of Details of Private Sector Work Activities of Executives

The revised provisions of Article 6 shall be applied to executives who are appointed or begin their term of office after the enforcement of these regulations.

Article 3. Example of Application on the Restrictions on Family Employment

The revised provisions of Article 8 shall be applied to cases in which the institution to which the relevant employee belongs, or the institution or subsidiary of that organization, commences the recruitment process for employees, etc. after the enforcement of this regulation.

Article 4. Example of Application on the Restrictions on Entering into Private Contracts

The revised provisions of Article 9 shall be applied from to cases in which the institution to which the relevant employee belongs, or the institution or subsidiary of that institution, commences the private contract process after the enforcement of this regulation.

Article 5. Example of Application on the Reporting of Transactions with Job Related Person, Etc.

The revised provisions of Article 26 shall be applied to cases in which transactions, etc. are conducted after the enforcement of these provisions.

This Code shall enter into force and become effective on February 1, 2019.

This Code shall enter into force and become effective on November 11, 2019.

This Code shall enter into force and become effective on May 27, 2020.

• 1. Food (referring to meals, refreshments, alcoholic beverages, beverages, and other similar items shared by the provider and public officials, etc.): KRW 30,000
• 2. Congratulatory and condolence expenses: The limit for congratulatory and condolence money is KRW 50,000. However, the limit for wreaths and artificial flowers in lieu of congratulatory money or condolence money is set at KRW 100,000.
• 3. Gifts: The limit for money, securities, all goods excluding food and condolences under Subparagraph 1 and congratulatory or condolence expenses under Subparagraph 2, and other equivalent items is set at KRW 50,000. However, the limit for agricultural and marine products (hereinafter, “agricultural and marine products”) pursuant to Subparagraph 1 of Article 2(1) of the Agricultural and Fishery Products Quality Control Act and processed agricultural and fishery products (processed using agricultural and marine products in excess of 50% of the raw materials or ingredients) pursuant to Subparagraph 13 of the same Paragraph (applicable only to products, hereinafter, “processed agricultural and fishery products”) is set at KRW 100,000.

Remarks

• a. The value range of each of Subparagraphs 1, 2, main text and proviso, and Subparagraph 3, main text and proviso shall be the sum of all applicable items.
• b. If a congratulatory gift or condolence money as per the main text of Subparagraph 2 is received together with a wreath or artificial flowers as per the proviso to the same Subparagraph, or if a gift as per the main text of Subparagraph 3 is received together with agricultural and fishery products or processed agricultural and fishery products as per the proviso to the same Subparagraph, the respective values are added together. In this case, the value range shall be KRW 100,000, but shall not exceed the value range of Subparagraph 2’s main text or proviso or Subparagraph 3’s main text or proviso, respectively.
• c. If two or more of the food of Subparagraph 1, the congratulatory and condolence expenses of Subparagraph 2, and the gift of Subparagraph 3 are received together, the values are added together. In this case, the value range shall be the highest among the value ranges of food, congratulatory and condolence expenses, and gifts received together, but shall not exceed the value ranges specified in Subparagraphs 1 through 3, respectively.
• d. The head of a public institution may set standards stricter than the above standards depending on the nature of the work, and may establish separate, more stringent standards for restrictions on receiving money, valuables, etc. from job-related persons, job-related public officials, or job-related employees.

1. Maximum honorarium for each public official

• a. Public officials under Items (a) and (b) of Subparagraph 3, Article 2 of the Act: KRW 400,000
• b. Heads and teaching staff of schools at all levels established pursuant to the Elementary and Secondary Education Act, the Higher Education Act, the Early Childhood Education Act, and other laws (if they also apply to public officials under Item (a), they shall follow Item (b): KRW 1,000,000
• c. Notwithstanding Items (a) and (b), the upper limit of honoraria for external lectures, etc. paid by international organizations, foreign governments, foreign universities, foreign research institutes, foreign academic organizations, and other foreign institutions equivalent thereto shall be determined by the payment standards of the person paying the honorarium.

2. Application standards

• a. The upper limit for Items (a) and (b) of Subparagraphs 1 shall be per hour for lectures, etc., and per item for contributions.
• b. Even if a public official, etc. under Item (a) of Subparagraph 1 gives a lecture for more than one hour, the total honorarium amount shall not exceed an amount equivalent to 150/100 of the maximum amount for one hour, regardless of the lecture time.
• c. The upper limit of Items (a) and (b) of Subparagraph 1 includes all honoraria provided by the provider of honoraria for external lectures to public officials, etc. in connection with external lectures, etc., regardless of the nature of lecture fees, manuscript fees, appearance fees, etc.
• d. Notwithstanding Item (c), if a public official, etc. does not receive travel expenses, such as transportation, lodging, and meals, from his or her agency, transportation, lodging, and meal expenses shall be provided at the actual cost level within the standards specified by the travel expense regulations applicable to each public institution, such as the “Public Official Travel Expense Regulations,” and are not included in the honorarium of Subparagraph 1.