• Implementation System
• Integrity Contract System
• Conflict of Interest Prevention System
• Endeavor to Eradicate Power Trips

Integrity Contract System

The Integrity Contract System requires both bidders and the administrative organization not to be engaged in any corrupt actions during bidding, contracting, and contract implementation processes and fulfill the agreement in order to prevent the costs being increased due to corrupt actions and to eradicate corrupt practices, including bid rigging and bribery in bidding, contracting, and contract implementation.

Description

Exchange of a written oath that each party will not receive or provide bribes to the other party between a bidder and an administrative organization, disclosure of information related to bidding process, restrictions on bidders infringing the integrity contract regulations (prohibition of bidding participation, cancellation of a contract, etc.), reprimand of directors/employees infringing upon the integrity the contract regulations

Integrity Contract Procedure per Stage

Integrity Contract Procedure per Stage

Item	Description
Bidding Notice	The Integrity Contract System is specified on the bidding notice or on the invitation to bid
Bidding Application	Only bidders submitting the written oath on the implementation of the integrity contract are allowed to participate in bidding
Contracting	A successful bidder submits the written oath on the implementation of integrity contract and the provisions and the implementation of the integrity contract shall be contained in the agreement
Implementation of Contract	In case of infringement of integrity contract, a relevant contractor is prohibited from participating in future bids, the agreement is terminated and the relevant directors and employees will be punished

Job Integrity Contract System for Directors

The Job Integrity Contract System for Directors is to strengthen the transparent and ethical management by clearly specifying the responsibilities of directors on integrity and infringement

Implementation Status

KNOC has been implementing the ‘Regulations on Job Integrity Contract for Directors’ since the establishment of those Regulations on Dec. 1, 2006

Directors shall execute the ‘Job Integrity Contract for Diretors’ within 3 months from the date of appointment (President, Executive Directors, Executive Auditors)

Implementation Status

Item	Description	Remarks
Purpose	The Job Integrity Contract System for Directors specifies the standards and procedures required to implement the System Subject of Application: Directors (except Non-executive Directors) The Job Integrity Contract System for Directors enhances the effectiveness of anti-corruption and vocational ethics by specifying the responsibilities of Directors on integrity and infringement	Article 1
Contract Method	Directors execute the integrity contract reflecting the obligations and responsibilities of Directors in accordance with the Regulations on Job Integrity Contract for Directors	Article 3
Compliance Obligations and Responsibilities	Directors shall comply with the integrity obligations during their term of office and shall be responsible for any infringement thereof	Article 4
Job Integrity Obligations	Directors shall not be engaged in bribery, exercise of authorities, disclose information related to job, facilitate of bribery, improper solicitation, or sexual harrassment	Articles 5-9
Punishment in case of infringement of the integrity obligation	Financial punishment depending on the type of infringement - In case of the monetary penalty: Retrieving up to 50% of the performance-based payment after the date of infringement - In case of imprisonment or heavier punishment: Retrieving 51%-100% of the performance-based payment after the date of infringement - Until the decision of penalty after prosecution: Performance-based payment will be delayed until the decision of penalty Punishment shall be applied to a retired director within 3 years from the date of retirement if the director received the criminal punishment due to infringement of integrity obligation during his/her term of office	Article 10
Report to Board of Directors, Deliberation and Resolution by Board of Directors and Notice	The Head of Ethic Management shall report any infringement of job integrity obligation within 15 days from the delivery date of the ruling on a certain punishment (Board of Directors deliberates and decides punishment) When deciding punishment, the Head of Ethic Management shall notify the amount to retrieve, the due date for payment, and the payment method to the Heads of Human Resource, the salary and the relevant director The amount to retrieve shall be paid within 30 days from the date of notice on punishment by the Board of Directors	Article 11