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Sustainability

Fair Trade Compliance Program (Fair Trade CP)

Since 2002, Kia has been operating ’Fair Trade Compliance Program (Fair Trade CP)’ and continues to strive for establishing and implementing fair trade culture with active support from top management. We operate an in-house Compliance Council chaired by the Compliance Officer appointed by the highest decision-making body to prevent legal violations in advance. The Council regularly reports to the board of directors on compliance status and performance identified through internal monitoring.For executives and employees, we share internal and external fair trade issues through on-line and off-line training to build company-wide consensus on transparent management. We strengthen our internal monitoring system by distributing fair trade-related newsletters, guidelines, and checklists to working-level departments under the Compliance Council, and conducting regular inspections, while simultaneously encouraging executives and employees’ voluntary commitment to fair trade practices.For all transactions with suppliers, we have introduced competitive bidding principles to provide fair opportunities. For competitors, we have codified fair trade principles including prohibition of unfair trade practices, collusion, and unfair competition, which are published on official Kia website. Going forward, Kia will continue to fulfill its corporate social responsibility in fair trade by making sustained efforts to establish fair competitive order and transparent business practices.

Fair Trade CP Implementation Requirements

For the Fair Trade CP to operate effectively, the following eight implementation requirements must be met:

Establishment and implementation of Fair Trade CP standards and procedures
Establishment and implementation of Fair Trade CP standards and procedures
Top management’s commitment to and support for compliance
Top management’s commitment to and support for compliance
Appointment of the compliance officer responsible for Fair Trade CP operations
Appointment of the compliance officer responsible for Fair Trade CP operations
Development and utilization of compliance manuals
Development and utilization of compliance manuals
Continuous and systematic compliance training
Continuous and systematic compliance training
Establishment of internal monitoring system
Establishment of internal monitoring system
Disciplinary actions against executives and employees for fair trade-related violations
Disciplinary actions against executives and employees for fair trade-related violations
Effectiveness evaluation of Fair Trade CP and improvement measures
Effectiveness evaluation of Fair Trade CP and improvement measures

Declaration of Commitment to Fair Trade Compliance

Kia’s top management regularly declares and encourages commitment to fair trade compliance to all executives and employees to ensure internalization of Fair Trade CP.

Compliance with fair
trade laws and
regulations is not a
choice, but a
necessity

Dear Colleagues,I wish to express my deep appreciation to all members of the Kia team for your continued efforts in leading mobility innovation and shaping a sustainable future.The year 2025 marked both a pivotal turning point for Kia in our advancement towards becoming a Sustainable Mobility Solutions Provider and a period of unprecedented challenges. Global economic volatility and geopolitical tensions drove fluctuations in raw material prices and logistics costs, while the US tariff policies added further uncertainty to the business environment. In Korea, new regulatory developments, including amendments to the Commercial Act and the Labor Union Act, and heightened societal expectations around industrial safety called for a fundamental shift in business operations.In particular, fair trade has emerged as a core value critical to corporate sustainability, and attention from both society and regulators regarding unfair business practices has intensified more than ever. With the strict application of laws such as the Subcontracting Act and the Franchise Business Act, it is imperative to establish a fair and mutually beneficial economic order, one that prevents the misappropriation of SME technologies, unjust price reductions, and unfair treatment of franchisees.Amid these turbulent times, Kia continues to forge ahead with unwavering resolve, driven by the dedication and efforts of all employees and our steadfast commitment to customer-centric values. By leveraging our strong brand competitiveness, innovative technologies, and continuous excellence in quality, we are delivering results beyond market expectations, while confidently navigating uncertainties.To build on our achievements and further enhance Kia's value, a fair and transparent organizational culture is essential. I would like to take this opportunity to reaffirm the significance of compliance with fair trade practices for our sustainable growth and to share the key principles as follows :

1
Please ensure that you fully understand and comply with all laws and regulations relevant to your work.
It is important that we keep in mind that even a small mistake can have a serious impact on the company’s reputation and growth.
2
Embrace the spirit of fair trade compliance and prioritize transparency and fairness in all business processes.
This forms the foundation of our corporate culture and is central to the trust we earn externally.
3
Actively foster open communication and the value of mutual growth with all stakeholders, including partners and franchisees.
This serves as the cornerstone for a healthy industrial ecosystem that we are building together.

As we look ahead in today’s rapidly changing global landscape, it is through the fair and ethical actions of each and every employee that Kia can truly stand out as a leader in shaping a sustainable mobility future. I have full confidence in your wisdom and capabilities, and I look forward to the fair and transparent future we will create together.

November 2025

Ho Sung Song | President & CEO,
Kia Corporation

Fair Trade CP Organizational Structure

Kia has established a Compliance Council under the Compliance Officer to discuss and decide key matters related to Fair Trade CP operations on a semi-annual basis. In addition, Compliance Managers were designated as working leaders who directly perform fair trade compliance activities within Kia to continuously encourage the spread of compliance culture across all business sites.

Compliance Officer

On February 12, 2025, Jin Mo Kang, Head of Compliance Team 1, was newly appointed as Kia’s Compliance Officer through a board resolution.

Learn More

Compliance Organization

Kia’s Compliance Organization, which comprises the departments dedicated to compliance, supports the Compliance Officer’s operation of Fair Trade CP.

Compliance Council

The Kia Compliance Council is an advisory and consultative body responsible for the promoting and operating Fair Trade CP, which includes departments identified as high-risk for fair trade violations and those essential for Fair Trade CP operations. The Compliance Council is mainly composed of head of group level, who provide advice and support for Fair Trade CP activities. Furthermore, semi-annual meetings are held to consult and deliberate on key matters related to Fair Trade CP.

Compliance Manager

Compliance Managers at Kia implement departmental Fair Trade CP activities. They promote Fair Trade CP culture throughout the company by conducting Fair Trade Day and make efforts to reduce fair trade risks by providing self-training for department members.

Fair Trade Compliance Program Operation Regulations

Kia has established the Fair-Trade Compliance Program Operation Regulations to set out the fundamental procedures and standards that enable our employees to comply with fair trade-related laws.

Kia - Fair Trade Compliance Program Operation Regulations (PDF)

Key Fair Trade CP Performances

2025

Jan

Establishment of detailed plans for Fair Trade CP trainings
Fair Trade Day (Fair Trade Newsletter, self trainings, etc.)

Feb

Seminars for Fair Trade CP Organizations, compliance trainings for new executives
Appointment of the 2025 Compliance Officer
- Establishment of cooperative system for effective operation of Fair Trade CP activities such as the Compliance Council
Organization of regular council within the Legal Division to identify and tailor Fair Trade CP activities for operational teams
Fair Trade Day (Fair Trade Newsletter, self trainings, etc.)

Mar

’25 Fair Trade CP Evaluation Application and submission of the Performance Report
CEO’s ’25 announcement of commitment to Fair Trade CP
Tailored trainings for operational teams : Prevention of Unfair Management Interference (for the Procurement Div.)
- Introduction of compliance system, legal support policies, etc.
Survey for Compliance Managers on the utilization methods and improvement suggestions of the Fair Trade CP Guide
Fair Trade Day (Fair Trade Newsletter, self trainings, etc.)

Apr

Creation and distribution of video training materials on Open Source
Distribution of tailored guideline and related trainings for the Procurement Div
Tailored trainings for auto repair shops : Environment, Personal Information Protection, etc.
Development of checklist for working level and inspection interviews on Dark Pattern
Fair Trade Day (Fair Trade Newsletter, self trainings, etc.)

May

Seminars for Fair Trade CP Organizations, compliance trainings for new executives
Request for ’25 Compliance and Ethical Management Pledge
Survey on Fair Trade CP awareness and feedback for all executives and employees
Fair Trade Day (Fair Trade Newsletter, self trainings, etc.)

Jun

’25 1st half Compliance Council meeting
- Sharing key fair trade issues with head of group level of fair trade-related departments
Tailored trainings for the plants : Industrial Accidents
Fair Trade CP Academy
Compliance Self-Inspection on Technology Misappropriation and Trade Secrets
Fair Trade Day (Fair Trade Newsletter, self trainings, etc.)
Trainings on Agency Act (by Korea Fair Trade Mediation Agency)

2024

1Q	2Q	3Q	4Q
Jan ‘24 Fair Trade CP Plan Report to CEO	Apr Departmental Compliance Self-Inspection (Mar-Apr) : Greenwashing ’24 Fair Trade CP Evaluation Application and submission of the Performance Report ’24 Online employee Fair Trade CP training (Apr-May) : Abuse of Superior Bargaining Position Specialized Training for the Procurement Div. : The Subcontract Act Compliance Management Newsletter for Leaders : AI Act and Fair Trade Trends Compliance Newsletter : Precautions for Transactions with Suppliers Request for ’24 Compliance and Ethical Management Pledge (Apr-Jun) Fair Trade Day (Fair Trade Newsletter, self trainings, etc.)	Jul Fair Trade Day (Fair Trade Newsletter, Self Training, etc)	Oct Special Compliance Support and Inspection Trainings for auto repair centers and their heads : Franchise Business Act, Personal Information Protection Act On-spot inspections to identify risks related to internal transactions Fair Trade Day (Fair Trade Newsletter, self trainings, etc.) Fair Trade CP promotion events for executives and employees
Feb	May ’24 1st half CEO’s message on commitment to Fair Trade CP ’24 1st half Compliance Week Fair Trade Day (Fair Trade Newsletter, self trainings, etc.)	Aug Compliance Trainings for the CEO and executives: Introduction of Importance of Compliance Management, Greenwashing, etc. Compliance Newsletter : Fair Business Practices Fair Trade Day Activities (Fair Trade Newsletter, self training, etc.)	Nov Fair Trade Day (Fair Trade Newsletter, self trainings, etc.)
Mar CEO’s ’24 announcement of commitment to Fair Trade CP at the Shareholders’ Meeting Designation of Compliance Managers Fair Trade CP Academy : Greenwashing Group Compliance Academy : Greenwashing Compliance Newsletter : Greenwashing (Feb), Information Exchange Cartel (Mar)	Jun Fair Trade CP Academy : Management Interference Group Compliance Academy : Management Interference ’24 1st half Compliance Council meeting ’24 1st half Evaluation of the Effectiveness of Fair Trade CP ’24 1st half Trainings for new hires Departmental Compliance Self-Inspection (Jun-Jul) : Management Interference ’24 1st Half Key Fair Trade CP Activities Report to CEO Compliance Newsletter : ’24 1st half Compliance Week Results Fair Trade Day (Fair Trade Newsletter, self trainings, etc.)	Sep Fair Trade CP Guide Handbook for the Finance Div. Fair Trade CP Academy : Personal Information and Discipline Compliance Management Newsletter for Leaders : Deepfake Compliance Self-Inspection for employees Customized self-inspection on fair trade for high-risk departments. Self-inspection on fair trade for executives and senior-level employees Fair Trade Day (Fair Trade Newsletter, self training, etc.)	Dec Fair Trade CP Activities Award Ceremony for Leading Departments Awards for employees and departments based on exemplary fair trade compliance cases Addition of ‘Compliance Support’ tab in ‘Kia Wiki’ of the Autoway Introduction of compliance system, legal support policies, etc. Fair Trade Day (Fair Trade Newsletter, self trainings, etc.)