포스코엠텍

The Fair Trade Act, which acts as the basis for the fair trade system, lays down basic regulations regarding improvement of trade forms aimed at enhancing market structure to promote free and fair competition.

• - Prohibition of mutual investment: Prohibition of stock acquisition and ownership of affiliated companies that own their own stocks.
• - Prohibition of total investment : Prohibition of holding stocks of other domestic companies (including affiliates) in excess of 25% of the Company's net assets.
• - Prohibition of new debt guarantees : The prohibition of new debt guarantees to affiliates. Existing debt guarantees to be resolved within one year after new designation of large-scale conglomerates.
• - Board of directors (BOD) resolution and disclosure of large-scale internal trade : When trading 10% or more of the company's capital or KRW 10 billion or more funds or assets with an affiliated party. (Subject to: Top 10 conglomerates.)

• - Price abuse: An act of unfairly determining, maintaining or changing the price of goods or services.
• - Adjustment of sales: Unfair adjustment of sales of products or services.
• - Interruption of sales: Unreasonable interference of business activities of other business operators.
• - Exclusion of competing business operators: Unfair exclusion of competing business operators or when there are concerns that such actions would significantly limit the interest of consumers.

• - Pricing: The act of determining, maintaining, and changing prices jointly with other business operators.
• - Making decisions on trade terms: Joint decision making of terms for product sales and services, or the payment for those products and services.
• - Trade restrictions: Restrictions on trade areas or counterparts for trade.
• - Product restrictions: The act of restricting product production, the type of products sold and product specifications.
• - Interference of business activities: An act of interfering or restricting business activities or the content of business of other business operators

• - Unfair rejection of trade: Unfair rejection of trade.
• - Discriminations: Unfair discriminations (e.g. with price, trade conditions, discriminating in favor of affiliated companies).
• - Exclusion of competing business operators: Actions that are likely to exclude themselves or competitors of affiliated companies by unfair dumping or unfair purchase at higher price.
• - Abuse of positions in trade: Forcing purchase of goods or services, forcing others to provide benefits or sales goals, providing disadvantages, interfering with business management.
• - Unfair internal trade: Unfair provision of funds, asset, human resources to affiliated companies or people in special relationships.

• - Unfair limitations of competition due to wrongful joint actions.
• - Limiting the number of present or future business operators in a given trade area.
• - Unfair restriction of business content or business activities of a business operator who is a member of the business group.

• - Not issuing subcontract agreements (e.g. purchase order) or shipping receipts.
• - Non-payment or delayed payment of subcontract payment, non-payment of bill discount rates and interest for arrears.
• - Rejection to receive goods, unreasonable return or price reduction, lack of fair and just inspection standards.
• - Forced purchase of goods, unreasonable demand for early payment, unreasonable payment in substitutes, unfair interference in management, etc.

• - Not issuing subcontract agreements (e.g. purchase order) or shipping receipts.
• - Non-payment or delayed payment of subcontract payment, non-payment of bill discount rates and interest for arrears.
• - Rejection to receive goods, unreasonable return or price reduction, lack of fair and just inspection standards.
• - Forced purchase of goods, unreasonable demand for early payment, unreasonable payment in substitutes, unfair interference in management, etc.

• - Prohibition of unfair labeling and advertising: False, exaggerated, deceptive statements, unfair comparison and slander
• - Important labeling: Information designated and notified by the Fair Trade Commission to be disclosed mandatorily.
  · Matters that often cause consumer damage and are difficult to be recovered after the damage.
  · Matters that have decisive impact on consumers choice to purchase goods or services, such as important flaws or limitations in trade terms.
  
• - Advertisement substantiation system Business operators must be able to substantiate facts claimed in labels and advertisements they have made.