Business ethics, as a set of standards for behavior that helps us determine how we ought to decide and act for stakeholders affected by our decisions or actions, refers to ethical standards that we should observe and are applied to our policies, organization and actions.
Ethical management values business ethics most to grow continuously, recognizing not only companies’ financial and legal responsibilities, but also their ethical responsibilities to society.
Hyundai Capital manages risk through ‘compliance activities’ focusing on legal compliance for our continuous growth. But our compliance does not stop with abiding by laws and regulations, but extends to improving value of various stakeholders like customers, shareholders, business partners, executives and employees, and communities to ensure that ethical culture becomes an integral part of our business.
Ethics regulations serve as guidelines or standards for understanding our ethical management direction and principles correctly, and how to decide and act correctly if ethical conflicts occur in the performance of one’s duties. Our ethics regulations were reflected into Hyundai Capital policies, regulations, business processes, etc. in order to ensure that they are observed at work. Also, Hyundai Capital executives and employees incorporate proper set of values aligned with our ethics regulations in the workplace.
Customer trust
Trust between employees
Stakeholder(shareholder, etc.) trust
Fair competition in market
Fair competition with partner
Fair treatment of employees
Mutual respect between employees
Transparent transactions with interested parties
Transparent performance of duties
Employee’s responsibility for society
Company’s responsibility for employees
Company/employee’s responsibility for society
We enforce three fundamental policies that we cannot compromise under any circumstances. Our Zero Tolerance Policy outlines that violators of these principles do not belong at HCS and will be held accountable.
The Company established organization, system and takes regular training, monitoring for ethical management activities.
Mandatory compliance training
Specialized Training
Compliance Review Board
Compliance Report System
Reporting Channels
Compliance inspection
Self-check Process
Various Reporting Systems
Obtained a certification for Customer Satisfaction Management System (ISO 10002)
Made comprehensive revisions to the Code of Ethics and created ethics guidelines
Enhanced whistleblower regard programs
Implemented new business review process(NBI)
Hyundai Capital, joined UN Global Compact, that recommends companies to fulfill social obligations and responsibilities
Renewed/opened external reporting channel, ‘The Voice’
Hyundai Capital, acquired the Compliance Management System Certification(ISO37301)
With consumer centered management(CCM) as top priority, Hyundai Capital strives to provide the best products and services to consumers. CCM is a management framework to organize all business activities focusing on consumers from the perspectives of consumers and improve these business activities continuously. To this end, Hyundai Capital held a Consumer Centered Management (CCM) proclamation ceremony in May 2022. It was an opportunity for all employees to strengthen their commitment to build solid consumer trust by making CCM the highest priority. To practice consumer centered management, CEO and related functions discuss issues at regular consumer protection meetings, and share improvement activities by issuing consumer protection activity reports on a monthly basis. Additionally, Hyundai Capital continues to emphasize consumer centered management to employees at CEO Townhall Meeting. In recognition of these efforts, Hyundai Capital was selected as CCM-certified company by the Fair Trade Commission in December 2022.
Hyundai Capital is dedicated to improving product and service quality by communicating with customers through diverse channels. To this end, Hyundai Capital set up a customer panel in March 2022 for the first time in the industry to diagnose product and service quality levels, and reflect customers’ opinions and ideas in its products and services. In addition, we place a great emphasis on service quality management by conducting customer satisfaction surveys to customers who used our customer center or Hyundai Capital website/App, and reflecting the results in key evaluation metrics for call center agents and related functions.
In parallel, we are strengthening digital-based communication with customers. A case in point is AI agent that calls a customer after a loan is confirmed to check if the customer is well informed about key product details such as interest rate. If any issues are identified, a human agent communicates directly with the customer to eliminate possibilities of mis-selling.
Moreover, to better serve the financially vulnerable customers such as the disabled and the elderly, we run a dedicated consultation desk at branches, and implemented a voice support system in Hyundai Capital App/website that provides description of key product features. We will continue to expand services for the socially disadvantaged who are lagging behind in the fast changing digital environment.
Hyundai Capital protects and manages personal(credit) information of customers in a thorough manner in accordance with privacy policies and credit information utilization status. In 2008, Hyundai Capital achieved ISO27001 Certification, one of the world’s best known standards for information security management systems for the first time in the industry, proving its excellent performance in information security area. We have renewed the certification by going through strict screening process every year. On top of this, to raise employee awareness of information protection and improve competency, we designated the first Thursday of every month as Information Security Day, and perform activities to prevent personal(credit) information leakage and provide information protection training. In addition, to effectively respond to the growing cyber threat such as hacking and DDOS and minimize potential damage to customers and the company, we perform company-wide security drills on a regular basis.
By linking the company's core identities of "global," "mobility" and "finance" with CSR promotion directions, Hyundai is striving to solve social problems such as fostering future talent and bridging the educational gap with the vision of “Our Capital as an Asset of Hope.”
Hyundai Capital has formed sisterhood relationships with elementary, middle, and high schools and is running a “One-Company, One-School” CSR program that teaches students essential financial knowledge such as a reasonable consumer life and credit management.
It also provides financial support to customers affected by natural disasters such as forest fires and typhoons, such as suspension of repayment and exemption of fees, and supports socially marginalized organizations by donating KRW 100 million in donations to the Korea Leukemia Pediatric Cancer Association over the past five years from 2018 to 2022.
Meanwhile, the Hyundai Capital Volleyball Team is running the Skywalkers Youth Volleyball Class, the largest youth volleyball education program in Korea, for youth from the vulnerable, multicultural families, and culturally underprivileged areas in six regions across the country.
In addition, it operates a plogging program called Green Step, where executives and employees walk and clean around the office buildings of Seoul Station. The program will expand to global activities with the overseas entities in the future.
In the future, Hyundai Capital will continue to think and practice to realize the challenges of the times required by our society and to become a company that fulfills its social responsibilities.
CP (Compliance Program) is an internal compliance system or code of conduct that a company voluntarily implements and operates to facilitate understanding of and autonomous compliance with fair trade related laws and regulations.
With a growing interest in ESG and trend towards mandatory non-financial reporting, CP is considered as a key indicator for ethical management that improves the social value in business. When a listed company is evaluated for ESG, its CP operations are reflected into the social value assessment.
When a company fails to fulfil its compliance requirements, its non-compliance can lead to not only fines, damages, legal fees and other financial penalties but
also tangible∙intangible loss like reputational damage when its non-compliance is covered by the media.
In this context, CP enables a company to prevent non-compliance driven loss, be competitive and achieve sustainable growth.
CP Officer shall be appointed by BoD and have roles & responsibilities to efficiently manage·operate CP.
Hyundai Capital shall put in place and implement policies and procedures to ensure that Hyundai Capital executives and employees clearly recognize and comply with fair trade laws and regulations. Policies and procedures shall be created in accordance with Hyundai Capital's document policies.
CEO shall deliver a message clearly by saying that CP is one of the key elements of management and executives and employees should comply with the
relevant regulations.
CP Officer shall be appointed by BoD and have roles & responsibilities to efficiently manage·operate CP.
Create Compliance Manual, which contains internal guidelines for Compliance Program, and distribute it to give executives and employees easy access.
Employee training shall be provided with detailed examples of CP violations. Departments or employees with roles and responsibilities likely to violate CP need to be trained appropriately.
As prevention and monitoring of violations are most important in CP operations, systematic internal supervision system (monitoring framework) that includes
audit, supervision, reporting, etc. shall be established·operated.
As quick and reasonable disciplinary actions are required for violations to build an environment for Compliance, company regulations need to be established to take appropriate actions against an employee who violates fair trade related laws and regulations.
Hyundai Capital is not obliged to report a disciplinary actions taken for violations to competition authorities and Fair Trade Commission shall not use it as
evidence to enforce competition laws.
Hyundai Capital shall monitor and assess CP criteria, procedure, operation regularly to ensure that CP is effectively maintained·operated and take remediation actions accordingly.
Dear Hyundai Capital colleagues,
Hyundai Capital, as the captive finance company for Hyundai Motor Group, has contributed to the growth of the automobile industry since its beginning in 1993. We are now on a journey to go beyond our current role as a credit finance leader in Korea to become a "Global Leader in Mobility Finance".
As part of our efforts for Ethical Management, Hyundai Capital earned Compliance Management System 37301 certificate and joined the UN Global Compact to meet expectations for compliance management, that are rising in line with our growth.
Recently, the Korean government has been placing emphasis on the importance of "fair transaction" in the national roadmap, highlighting “Fairness & Justice” in economic policy directions and taking strict legal actions against
market-leading companies' unfair acts. As witnessed by these moves, fair transaction is one of the critical social values that support Korea's economic innovation and growth.
To keep up with such changes, Hyundai Capital will be implementing Compliance Program 2.0 by strengthening our Compliance Program adopted in 2002.
To this end, all employees should be well aware of CP Manual and understand main risk areas regarding fair trade for Hyundai Capital through training so that they can clearly understand and meet regulatory requirements.
Furthermore, employees liable for violations shall be held accountable regardless of rank or status while those who contributed to preventing violations shall be rewarded.
Through these efforts, Hyundai Capital shall prevent anti-trust violations or unfair support for affiliates. Instead, Hyundai Capital shall protect consumers through fair terms & conditions and sales activities, and proactively satisfy fair trade demands from our stakeholders, such as customers, shareholders, and business partners, by ensuring fair transactions with counterparts.
I hope that declaration of CP 2.0 will present a good opportunity for you to always keep in mind that adhering to fair trade laws & regulations and putting them into practice are mandatory for our continuous growth and development. Your continued interest and support on this topic are crucial for Hyundai Capital to become a sustainable global company.
As the CEO, I will spare no effort at an enterprise-level in ensuring that we all fulfil our roles and responsibilities for CP.
Thank you.
CEO of Hyundai Capital Services Mok Jin-won
Obtains the Customer Satisfaction Management System Certificate (ISO 10002)
Expands the whistle-blower reward policy
Revises Ethics Code and enacts ethical practice guidelines
Launches an NBI (New Business Introduction) process
HCS joins the UN Global Compact that recommends execution of corporate social obligations and responsibilities
Renews/opens ‘The Voice’, which is an external whistle-blowing channel
HCS obtains the Compliance Management System certificate (ISO37301)
HCS executes ESG policies (Human Rights Charter, Ethics Charter, Guidelines, etc.)
Expands and improves the voluntary reporting program
Establishes corporate policies & procedures in line with the enforcement of act on prohibition of workplace harassment and improves the internal whistle-blowing program
Executes guidelines on product development and sales
Enhances CDD (identification of actual owner) to comply with the revised AML Act
Runs a Compliance Campaign [Come Play] (showing video clips produced by employees, compliance quiz)
Introduces a Compliance Three-strike out policy
Creates an NPI (New Product Introduction) for consumer protection
Opens an internal control ERP
Implements a vendor management program
Holds a compliance UCC competition
Runs a Compliance Remind Campaign (employee ethics, transparent transactions with vendors, conflict of interest and SNS-related matters to exercise caution)
Enforces a Leniency policy
Runs a Compliance Remind Campaign (No collision, customer information protection)
Sets up a hotline to receive a report from an external party
Produces and distributes a sexual harassment case book
Opens a system for personal information integrated file management
Establishes and executes an advertisement operation policy
Provides professional compliance training
Builds a system for Business Continuity Management
Provides compliance school sessions
Appoints a third Ombudsman
Provides special training in credit information act
Obtains Grade A in Compliance Program
Provides Team Lead training related to fair trade such as prevention of collision, etc.
Revises and distributes the Compliance Program Manual
Provides Branch Manager compliance training
Enhances the Ombudsman system
Sends an official letter to establish practices of transparent transaction with vendors / Publishes Compliance Guidelines
Provides advanced cyber courses for Compliance
Expands and executes 2nd Ombudsman policy
Obtains Grade A in Compliance Program
Obtains ISO27001 certificate in 'customer information security' section for the first time as a financial company
Revises and distributes the Compliance Program Manual
Enforces an Ombudsman policy / Provides compliance training in video
Starts sexual harassment counselling
Revises the Compliance Program Manual
Implements and runs a compliance Q&A system
Opens and promotes a Compliance logo
Provides an advanced compliance training program for all employees
Opens an intranet site for compliance
Provides a special ethical management training program for managers
Provides fair trade transaction courses
Enforces a policy on sharing of customer data with a third party
Provides a cyber class on ethical business management
Executes a Professional Ethics Compliance Agreement
Enforces a Zero Tolerance Policy
Introduces a Compliance Program (CP)
Produces a Compliance Program Manual
Appoints a Compliance Officer
Operates an internal control system and a compliance officer policy
Hyundai Capital became the first credit finance company in Korea to receive the Compliance Management System(ISO37301) Certification in 2021, gaining international recognition for internal controls and credibility. We make continuous efforts to comply with the Specialized Credit Finance Business-related laws such as the Specialized Credit Finance Business Act, the Act on Corporate Governance of Financial Companies and the Act on the Protection of Financial Consumers, and put in place systematic internal control regulations. As part of the effort, we operate a theme review reflecting recommendations of the regulatory bodies, mandatory leaves, pre-emptive control systems for compliance with the Improper Solicitation and Graft Act and an advertising review for protection of financial consumers. In addition, we operate the anti-money laundering(AML) risk assessment system and “The Voice”, a victim-oriented external reporting channel consulting external lawyers. Hyundai Capital will continue its efforts to ensure that compliance management culture takes roots as early as possible by leveraging its globally recognized compliance management systems, and continue to perform internal control activities for sustainable management.
Hyundai Capital joined the UN Global Compact (hereinafter “UNGC”) in June 2022 to establish the ESG management framework. The UNGC is the world’s largest corporate responsibility initiatives under the United Nations with more than 20,000 participants (companies and non-business signatories) in 170 countries. By joining the UNGC, Hyundai Capital proclaimed that it will comply with 10 principles in 4 areas; human rights, labor, environment and anti-corruption, and implement ESG management aggressively across the board. In addition, as a signatory to the UNGC, Hyundai Capital will disclose its efforts in implementing the UNGC 10 principles through the Communication on Progress(COP) on an annual basis.