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compliance program

LOTTE DEPARTMENT STORE endeavors to practice compliance
management through autonomous compliance program and
settle fair and ethical work environment.

Fair trade CP

Concept of CP

The Fair Trade Compliance Program (CP) stands for the supplementary system and norms of action set up by businesses to facilitate voluntary compliance to the fair trade laws.
The Fair Trade Commission encourages the Fair Trade Compliance Program by mitigating sanctions when businesses working under the CP are found to be guilty of a violation.

Key components of CP

  • Declaration by management for voluntary compliance Public declaration by the company president regarding the company’s willingness to the voluntary compliance on fair trade.
  • Appointment of compliance program administrator Appointing a CP administrator at the executive ranks with real responsibilities and authority.
  • Control human hazards The scope of discretionary authority for work may vary depending on employees.
  • Education program Differentiated education program for each department, at least 2 hours per half-year.
  • In-house monitoring system Creating a monitoring system to prevent violations, report to the board.
  • Sanctions for employees in violation if the regulations Preparing HR policy sanctions and disciplinary measures commensurate with the degree of violation.
  • Building a document Management system Provide the latest and most accurate information on CP by appointing an administrator for document management.

CEO Declaration

LOTTE DEPARTMENT STORE's Compliance Management Policy

Our Challenge Future of Retail

In establishing and operating the compliance management system aiming at anti-corruption, resolution of conflict of interests, and compliance with fair trade, LOTTE DEPARTMENT STORE sets forth and hereby declare to practice standards that all employees shall obey as standard of right actions and value judgement, in order to make fair and ethical work environment.

  • First, we will sincerely comply with domestic and international laws and regulations as well as the company regulations in conducting business of the company, and in no event, will we engage in any illegal act.
  • Second, we will recognize all the stakeholders of LOTTE DEPARTMENT STORE as subjects growing together with us and endeavor to make a fair and ethical corporate culture for mutual thriving.
  • Third, we will respect each and every member’s character and freedom and form a fair competition environment and pleasant work conditions, thereby making employees proud of the company.
  • Forth, we will actively engage in the company’s compliance activities and innovate practices in the parts, and make strenuous effort to take corporate social responsibility.

The above compliance management policy and the results will be published to all employees and there will be continued training and review to implement the policy.

In addition, LOTTE DEPARTMENT STORE is committed to conducting activities to improve compliance management system such as anti-corruption activities on an ongoing basis by setting up its compliance management objectives to implement compliance management policy and allowing autonomous compliance managers with independent authority and responsibility to do activities.

June 2018.

CEO & President of LOTTE SHOPPING CO., LTD Kang Hee-tae

CP Introduction

greetings

On September 19, 2001, the Lotte Department Store became the first in Korea’s retail to host a Fair Trade CP Declaration Ceremony by inviting our CEO.supplier officials, FTC officials, and the press, where we publicly declared our commitment to creating a fair and transparent retail transaction environment, preventing violations through voluntary compliance to the fair trade law, and leading the industry as a role model for fair trade. Furthermore, we created a Fair Trade CP Committee that offers training programs for all employees, monitoring and auditing, and sanctions for violation.

As part of our efforts, we became the first in the retail industry to host a website citizen complaints on fair trade, so as to compile opinions from suppliers related to fair trade and further develop.Please leave comments or suggestions related to any complaint, inconvenience, and other areas of improvement that you think of as our suppliers. We will humbly listen to these suggestions and try our best to address them soon.Employees and colleagues at supplier companies! We believe that your continued interest and support for our online complaint website will help both the Lotte Department Store and our suppliers to take a new step into our future. Thank you.

Lotte Shopping Co, Ltd Fair Trade CP adminstror

Commitment to CP

On September 19, 2001, the Lotte Shopping Co., Ltd. held a Fair Trade Compliance Program declaration ceremony by inviting Lotte’s CEO, directors and executives, Fair Trade Commission officials, the Korea Chamber of Commerce & Industry, department store association officials, and the press. On December 18, 2001, we won the approval of the board to appoint Fair Trade CP administrators who will report the monitoring results and future plans to the board once every half-year term. These measures show Lotte’s public commitment to creating a fair and transparent retail environment, preventing violations through voluntary compliance to the fair trade laws, and leading the industry to act as a role model in fair trade. The employees of Lotte Shopping Co., Ltd. will continue to develop a deeper understanding of the fair trade laws to ensure that there are no further violations.

Fair Trade Compliance Program background

The Compliance program administrator will hold all responsibilities and authorities related to fair trade in place of the CEO and provide CP training for all employees for the prevention of violation, monitor and improve CP performances, call forth a Sanctions Committee in case of violation, and submit a report to the CEO and board regarding the CP plans and operation results.

Fair Trade CP Committee organizational chart

The Fair Trade CP Committee is a unit directly reporting to the CEO, and it offers continuous training, monitoring, auditing, and sanctions for violations.

Cp Chart

CEO

  • CP Sanctions Committee - Discussion on sanctions for violations
  • CP administrator
    Fair Trade CP division
    Organization unit specializing in CP [5 full-time workers] Formulate CP policies, management of overall operations
    • Product headquarters CP division - Administrator in charge (7) + administrative staff (20) [Executive rank]
      • Fashion accessories 2 Teams
      • Women’s wear 2 Teams
      • Men’s wear/sports 4 Teams
      • Food Team 2 Teams
      • Living/fashion 2 Teams
      • Luxury Boutiques 2 Teams
      • GF Project Division 3 Teams
      • Global MD Team 1 Teams
      • Capital area 17 branches
    • Sales headquarters CP division - Administrator in charge (36) + administrative staff (36) [Executive rank]
      • Capital area 17 branches
      • Regional areas 19 branches
  • CP association - Discussion and decision-making for key issues in CP

Contact info for CP administrators

Contact info for CP administrators
By office Branch/department TEL Main number Administrator
Headquarters Fair Trade CP Division 02-2118-2162~4 02-771-2500 -
Product headquarters Fashion Accessorie MD 1 Team 02-2118-2867 02-771-2500 Kim, Hun-seong
Fashion Accessories MD 2 Team 02-2118-2469 02-771-2500 Park, Seong-ho
Ladies Fashion MD 1 Team 02-2118-2763 02-771-2500 Kim, Dae-won
Ladies Fashion MD 2 Team 02-2118-2802 02-771-2500 Lim, Jeom-tack
Young Fashion MD 1 Team 02-2118-2838 02-771-2500 Kim, Bo-young
Young Fashion MD 2 Team 02-2118-2816 02-771-2500 Han, Seong-hoon
Men’s MD 1 Team 02-720-7343 02-771-2500 Cheon, Ji-yong
Men’s MD 2 Team 02-2118-2338 02-771-2500 Park, Jeong-heon
Children/Sports MD 1 Team 02-2118-2691 02-771-2500 Kang, Woo-jin
Children/Sports MD 2 Team 02-2118-2669 02-771-2500 Lee, Ho-seok
Food MD 1 Team 02-2118-2625 02-771-2500 Kim, Tae-gun

CP Operation

CP operation summary

The Lotte Department Store carries out voluntary compliance to fair trade practices through efficient education, monitoring, sanctions,
evaluation, and feedback.

CP Operation

Establishing/the industry’s LEADING CP

Efficient education program

Regular training (more than once a quarter)
Participated by all employees of the sales and products headquarters
By rank (throughout the year)
Store manager/division head training, new recruit training, etc.
guest lecturers from FTC, online training, etc.

Company-wide monitoring system

Regular monitoring and random inspections
Review themes per month, quarter
Operates prior screening policy for all divisions
Operates prior screening for new transaction, sales promotion event, advertising labeling, etc.

Feedback on improving CP

  • Company-wide notification on violations and sanctions
  • Notification of analysis on violations and new work guidelines
  • Survey on supplier satisfaction
  • CP operation external auditor (FTC, etc.)

Strict sanction and evaluation system

  • HR sanctions for violations
  • Reflect in the evaluation of management
  • Impose fines on the violating department
  • Reflect in the evaluation of KPI (Key Performance Index)

CP operation progress

First in the industry to hold a
<Fair Trade CP Declaration Ceremony>

  • Date : Sept 19, 2001 (Wednesday)
  • Participants : CEO and executive ranks, FTC officials, press, etc.
  • Event details : Declaration of commitment to CP, appointment of CP administrators, etc.
  • Follow-up : upload in website, send notifications, distri-bute newsletters, etc.

International awards for fair trade

  • 2003.03

    Awarded with the gold prize for the 1st CP evaluation contest held by the Korea Fair Competition Federation

  • 2005.04

    Awarded with the FTC Chairman Award for the 4th fair trade day celebration

  • 2006.12

    Ranked AA in the CP evaluation by the FTC highest among 60 participating companies

  • 2009.01

    Ranked A in the CP evaluation by the FTC

Key progress

  • 2001. 09

    First in industry to hold a <Fair Trade CP Dec-laration Ceremony>

  • 2001. 09

    Appointed CP administrator

  • 2002. 05

    First in Korea’s retail industry to create a unit specializing in Fair Trade CP

  • 2002. 11

    Conducted supplier satisfaction survey

  • 2003. 01

    Hosted Fair Trade CP declaration ceremonies for each branch

  • 2004. 01

    Training for store managers/division heads in the product and sales headquarters

  • 2005. 05

    Introduced the fair trade online training program

  • 2006. 04

    Reflected CP results in KPI (Key Performance Index)

  • 2007. 05

    Held workshops to nurture fair trade professionals

  • 2008. 06

    Conducted fair trade tests for product and sales headquarters

  • 2009. 07

    Sent fair trade administrator letters

  • 2010. 03

    Held fair trade training sessions in collabora-tion with the Seoul National University’s Center for Competition Law

  • 2011. 02

    Workshop for CP managers and relevant staff in Feb (1 time) / May (1 time) / Nov (2 times)

  • 2012. 06

    Held workshop for persons in charge of CP

  • 2013. 06

    Held workshop for persons in charge of CP

  • 2014. 02

    Conducted the distribution win-win test for employees

CP Handbook

When to use the CP handbook

When you have any questions regarding the relationship with suppliers, labeling and advertising, and any other issues related to free trade, do not hesitate to refer to the CP handbook.

  • Target : All employees at the product/sales headquarters
  • Distribution method : Brochures, website, company online board, etc.
  • Details : Interpretation on regulations, work case studies, Q&A, guidelines for practices, etc.
  • Application scope : used as practical work guideline to prevent violations or educational materials to prepare for tests

CP handbook publication status

CP handbook
  • 2002. 02 CP handbook issue no.1
  • 2002. 09 CP handbook issue no.2
  • 2003. 11 CP handbook issue no.3
  • 2004. 12 CP handbook issue no.4
  • 2005. 12 CP handbook issue no.5
  • 2007. 03 CP handbook issue no.6
  • 2008. 07 CP handbook issue no.7
  • 2009. 05 CP handbook issue no.8
  • 2010. 06 CP handbook issue no.9
  • 2011. 08 CP handbook issue no.10
  • 2016. 02 CP handbook issue no.11

Archive

Compliance issues can occur across every part of our business and are associated with a wide range of regulations.
Accordingly, we provide you Acts and Guidelines in relation to Fair-trade,Anti-corruption that are the most influential areas of compliance in Korea.
For further inquiries, refer to the websites of the Korea Fair Trade Commission, Anti-corruption and Civil Rights Commission, and Office of Legislation.

CP handbook publication status

  1. 01

    Monopoly Regulation and
    Fair Trade Act
  2. 02

    Act on Fair Transactions in Large
    Franchise and Retail Business
  3. 03

    Act on Fair Labeling and Advertising
  4. 04

    Fair Transactions
    in Subcontracting Act
  5. 05

    Act on the Regulation of Terms
    and Conditions
  6. 06

    Product Liability Act
  7. 07

    Public Notice of Critical Information
    to be included in Labeling and
    Advertising
  8. 08

    Public Notice of Detailed Guidelines
    for Imposition of Penalty Surcharges
  9. 09

    Act on the Consumer Protection
    in Electronic Commerce, Etc
  10. 10

    Installment Transactions Act
  11. 11

    Improper Solicitation and Graft Act
  12. 12

    Enforcement Decree of the Improper
    Solicitation and Graft Act

Download fair trade educational documents

  1. 01

    FTC educational document
    on unfair transaction practices
  2. 02

    Lady Gong Jung-hae’s easy steps
    to fair trade

Links

  • Fair Trade Commission logo

    Fair Trade Commission

    Go
  • The Korea Fair Competition Federation logo

    The Korea Fair
    Competition Federation

    Go
  • Korea Consumer Agency logo

    Korea Consumer Agency

    Go