Taekwang Group establishes higher disciplinary guidelines

South Korean conglomerate Taekwang Group is cracking down on unfair and unethical behavior among its employees with the introduction of new disciplinary standards. The company has hired experts in economic and corporate crime investigations to bolster its audit capabilities and ensure compliance with the new rules.

In a recent announcement, Taekwang Group revealed that it has implemented a standardized disciplinary code of conduct across all its affiliates. This code sets out detailed standards for employee misconduct and outlines disciplinary measures for various unethical behaviors. Employees found guilty of causing financial losses through embezzlement, unauthorized corporate card use, or unjustified expenses will face severe consequences, including demotion or dismissal.

The company has also updated its “Taekwang Family Code of Ethics” for the first time in five years, emphasizing the importance of maintaining dignified conduct and promoting fair dealings between subsidiaries and partner companies. Additionally, Taekwang Group has introduced a group-wide internal audit regulation standard to ensure impartiality in audits and to facilitate the reporting of serious misconduct to law enforcement authorities.

These changes come in the wake of revelations of misconduct by former management council chairman Kim Ki-yoo, who is currently under investigation for pressuring a savings bank affiliated with Taekwang Group to lend money to a business associate and inflating construction costs at various subsidiaries. The company’s decision to strengthen its disciplinary measures and audit capabilities reflects its commitment to upholding ethical standards and maintaining transparency in its operations.

By Jung You-jung and Yoon Yeon-hae.