Procurement Policy

In line with the Compliance Code, our Group's principles of behaviors, KH Neochem Co., Ltd. (“Company”) has established the Procurement Policy as one of the guiding principles for our corporate activities. With the understanding and cooperation of our suppliers, The Company will conduct procurement activities taking into accounts corporate social responsibility.

1. Applicable Scope

This Policy provides the guiding principles on our procurement activities, with which the Company, including directors, officers, employees, contract employees, and temporary workers ("All Executives and Employees") will comply when procuring from outside the Company raw materials, production facilities, IT, logistics, and other services necessary for our corporate activities.

2. Guiding Principles

The Company will engage in responsible procurement activities based on the following principles:

Ensuring Fairness, Equitability, and Transparency

  • The Company will conduct fair, equitable, and highly transparent procurement activities.
  • The Company will provide fair opportunities for entry and introduce the principle of competition in the selection of suppliers. Moreover, the Company will objectively and comprehensively evaluate and determine a supplier based on technical capabilities and corporate philosophy (management policies, considerations to human rights, labor, safety and health, fair trade, ethics, etc.) in addition to quality, cost competitiveness, and delivery time.

Compliance and Confidentiality

  • The Company will comply with social norms, laws and regulations related to procurement activities and the spirit thereof, and our internal regulations, as well as act sincerely with high ethical standards.
  • The Company will not involve personal interests with any supplier, nor demand undue or improper advantage, nor select a supplier arbitrarily. The Company will refuse to have any relationship with antisocial forces.
  • The Company will maintain confidentiality of and appropriately manage important information provided by our suppliers.

Consideration for the Environment and Safety

  • The Company will strive to prevent pollution and reduce environmental impact by practicing procurement that considers the global environment.
  • The Company will aim to achieve zero-accidents and zero-disasters in procurement activities such as various construction work and transportation of our products by making intensive and continuous efforts to maintain and improve occupational health and safety.

Building Partnerships

  • The Company will strive to build mutual cooperation and relationships of trust with our suppliers and aim to contribute to achieve mutual business development.

3. Management System

The Company will establish and continue to improve related rules, standards, and guidelines in conformity with this Policy, thoroughly comply with these rules, and ensure appropriate procurement activities through management and supervision by our executives in charge of procurement. In addition, the Company will continuously review the rules, organizations, and systems in response to future changes in social conditions, business environment, and so forth.

4. Establishment of Regulations related to Procurement

  • The Company will educate All Executives and Employees and strive to have this Policy thoroughly implemented and complied.
  • The Company will strive to make our suppliers more understanding of this Policy, through action such as informing and explaining this Policy as required.