Procurement
Policy and Procedure
Transparency and equity
POSCO establishes fair business practices in all transactions conducted through its e-commerce system.
POSCO provides equal opportunities to qualified suppliers, improves payment conditions, and facilitates competition in bidding processes to create a solid supply chain.
Ethics in procurement
POSCO prioritizes ethics and rejects any type of pressure or unethical request.
POSCO encourages joint development with suppliers by accepting proposals for new technologies and products.
Partnership with POSCO
POSCO improves the competitiveness of the entire supply chain and contributes to national economic growth by creating shared value.
POSCO actively promotes business collaboration activities, such as benefit sharing and joint public-private investment for technological development, and extends them to second- and third-tier suppliers.
Procurement Ethics
As a global company, we will foster an ethical corporate culture by carrying out management activities faithful to basic principles and in compliance with laws and ethics.
Ethics practice and legal compliance
As a global company, we will foster an ethical corporate culture by carrying out management activities faithful to basic principles and in compliance with laws and ethics.
Money and other valuables
Money and other valuables include money, such as cash, gift certificates and memberships, and any item that may generate economic benefits.
Under no circumstances should employees request or receive money or valuables from stakeholders. However, this does not include promotional or advertising gifts that do not exceed KRW 50,000, souvenirs with the company logo, and gifts generally provided to all participants in events organized by stakeholders.
During overseas business trips, employees must not request or receive gifts from overseas affiliates.
If money or valuables are received unintentionally or unknowingly, they must be returned or, if this is not possible, reported to the compliance department.
Entertainment
Entertainment includes various activities carried out for business relations or business meetings, such as meals, drinks, golf, shows, and games.
Employees must not participate in entertainment activities with stakeholders that exceed KRW 100,000 per person. If this is necessary due to the nature of the business, prior approval must be obtained from the department head. If participation in an activity exceeding that amount was unavoidable, it must be reported to the Ethics Management Office.
Entertainment in venues with hosts or hostesses is prohibited regardless of the amount.
However, offering food and beverages of up to KRW 30,000 per person to related parties, including public officials, journalists, and educational staff, is allowed only when strictly necessary to facilitate work or maintain social relations.
Conveniences
Conveniences include benefits such as transportation, lodging, tourism, or event support.
Offering or receiving conveniences that exceed the customary level is prohibited, except those provided to all participants in an event.
If conveniences outside the usual level were inevitably received or offered, they must be reported to the compliance department.
Congratulatory or condolence money
Employees must not communicate personal events, whether their own or those of colleagues, to stakeholders. Communication through third parties is considered to have been made by the employee.
Information must be shared only through the corresponding internal bulletin board. The use of work email or formal invitations, such as wedding or funeral notices, is prohibited.
The permitted scope of family members is limited to grandparents, parents, and children of the employee or their spouse.
It is recommended not to spend more than KRW 50,000 among employees for these types of events.
The amount of money or gifts, including wreaths or flowers, for stakeholders must not exceed KRW 100,000. However, it must not exceed KRW 50,000 for those subject to anti-bribery laws.
Under no circumstances may employees receive money from stakeholders for these reasons. If this occurs unavoidably, it must be returned or reported.
At the request of the compliance area, records of these movements must be submitted. Condolence wreaths from stakeholders must not be accepted. If received, they must not be displayed.
Extravagant weddings in luxury venues such as five-star hotels should not be held.
Requests / Recommendations
Employees must not make or channel requests or recommendations through internal or external contacts, and must register them in the corresponding system when received.
- Requests for special favors in purchases or contracts
- Requests for preferential treatment outside normal standards
- Requests for negligence in inspections or repairs
No one should request public officials, directly or indirectly, to perform improper acts.
6. Financial transactions
Financial transactions with stakeholders, such as loans, guarantees, or leases, must not be carried out. If this occurs unavoidably, it must be reported to the compliance department.
7. Event support
No type of support, money or valuables, should be received from stakeholders for company-organized events. Any benefit is considered equivalent to receiving money.
8. Improper use of resources
Company resources must not be used for personal purposes. As a general rule, expenses must be made with a corporate card and in accordance with current regulations.
9. Protection of information
Confidential information must be strictly protected. Information must not be falsified or false information disseminated. Company facilities must not be used for personal purposes.
10. Compliance with competition laws
Antitrust laws must be respected and anti-competitive practices, such as agreements with competitors on prices, production, or markets, must be avoided. A dominant position must not be abused to demand improper benefits. The rights and property of third parties, including intellectual property, must be respected. Information from other companies must be obtained and used legally.
Balance between work and personal life
We will pursue personal growth and corporate development while maintaining a balance between work and personal life, and we will create a pleasant work environment by establishing a corporate culture of mutual respect.
1. Pursuit of balance
We will seek to improve the quality of life of executives and employees by providing benefits that contribute to maintaining a stable life. We will support executives and employees so they can achieve their individual goals by providing flexibility in working hours, places, and methods.
2. Education and growth
We will organize a work environment and systems that foster creativity. We will support the education of executives and employees, as well as their participation in development programs, so they can fully develop their potential.
3. Evaluation and compensation
We will implement an impartial and systematic evaluation system for executives and employees, based on their competencies and individual performance, and provide appropriate compensation accordingly.
4. Healthy culture
Executives and employees will work to foster an open corporate culture through transparent communication. Executives and employees will remove barriers between departments and promote a collaborative work environment.
Customer value and trust
Recognizing that the trust and success of our customers are our future, we will always respect their opinions, understand them, and create value that contributes to their growth.
1. Achieving customer satisfaction
We will carry out customer-oriented work, where their voice is heard and respected. We will actively address legitimate customer demands and reasonable suggestions.
2. Creating value for customers
We will meet customer needs by providing the best products through continuous technological development. Executives and employees will strive to understand market conditions both nationally and internationally, and will develop a service attitude that respects customers' culture and practices.
3. Earning customer trust
We will pay due attention to customer safety and health in our activities, and will not provide any product or service that may put their well-being at risk. We will protect customer information and comply with applicable laws and regulations. We will provide accurate information to customers in a timely manner.
Duty of good faith toward investors
We will maximize value for investors by obtaining legitimate profits through transparent decision-making and effective management.
1. Pursuit of increased shareholder value
We will generate profits through transparent decision-making and efficient management, while increasing the value of the company and its shareholders.
2. Fair provision of information to investors
We will not provide information that may influence investors' decision-making only to certain investors, nor provide partial information. We will not trade stocks or securities, nor recommend others to do so, using inside information obtained while working at the company.
3. Transparent preparation of financial information
We will process all financial information based on accurate transaction records, implementing appropriate processes and controls.
We will prepare financial reports in accordance with generally accepted accounting standards.
We will provide sufficient and accurate information about company management to investors, so they can make investment decisions freely and under their own responsibility.
Relationships with business partners
We will establish a fair trade system based on mutual trust and build a business ecosystem where stakeholders coexist and grow together.
1. Building mutual trust
We will promote fair business relationships with our partners under equal conditions and based on mutual respect.
We will strictly protect information obtained in transactions with business partners, in accordance with contractual terms and applicable law.
We will support our business partners so they comply with laws and regulations related to competition.
2. Pursuit of joint growth
We will promote mutual benefits by sharing positive results with our business partners.
We will cooperate and maintain open communication with business partners so they can provide high-quality products and services.
We will offer fair opportunities and reasonable negotiation conditions so they can develop as long-term business partners.
3. Support for continuous development
We will strive to build a stable supply chain by providing technical and financial support to our business partners.
We will seek to expand the potential group of business partners that can grow with us in harmonious development of the business ecosystem.
Contribution to Society and Human Rights
We will contribute to the growth of the country and society by fulfilling our responsibilities, support international human rights standards, and strengthen the dignity of all stakeholders by improving freedom, safety, and quality of life.
1. Human rights and personnel management
- No preferential treatment or special favors will be requested in personnel matters, including hiring, promotions, and rewards.
- We will support and respect international human rights standards, including the Universal Declaration, the UN Guiding Principles, the Global Compact, and the OECD Guidelines.
- We will establish clear policies and systems for the protection of human rights and strive not to violate them.
- We will support our business partners so they comply with these standards.
2. Due diligence
- We may carry out due diligence processes on activities that may violate rights or generate claims.
- We will strive to find reasonable solutions to violations.
- We will maintain communication with stakeholders regarding the results.
3. Protection of executives and employees
- Zero tolerance for sexual harassment and conduct that violates rights.
- Respect for privacy and protection of personal information.
- No work will be forced through physical or psychological coercion.
- Strict compliance with labor laws and minimum age requirements. Strict safety standards.
4. Respect and Equality
We will not discriminate based on race, nationality, gender, age, religion, and other similar factors. We will provide equal opportunities and maintain a diverse environment.
5. Working Conditions
We will take timely action in response to complaints. We will offer reasonable working hours that allow people to maintain a dignified life.
6. Commitment to the Community
We will strive to listen to community opinions and resolve issues related to human rights violations arising from our activities.
Supplier Code of Conduct
It establishes the basic standards that suppliers and subcontractors must follow. They must create a safe working environment, treat their employees with dignity, and operate ethically and in an environmentally responsible manner.
Based on version 7.0 of the Responsible Business Alliance (RBA) Code of Conduct.
Labor Rights
Suppliers must protect and respect human rights throughout all their business activities, including temporary and migrant workers.
1-1. Voluntary employment
- All work must be carried out voluntarily, with the freedom to resign without penalty.
- Forced labor, slavery, human trafficking, or coercion through debt is prohibited.
- Retaining identity or immigration documents, such as passports or permits, is prohibited.
- Clear and understandable working conditions must be provided at the time of hiring.
1-2. Prohibition of child labor
Child labor is strictly prohibited. Suppliers must comply with all local and international laws regarding the minimum hiring age and ensure that young workers do not perform hazardous tasks.
Procurement Procedure
Learn about the main stages for registration, contracting, ordering, and delivery within POSCO's procurement process.
Supplier registration process
Application and document submission
After reviewing the details of the sourcing group, a new candidate may apply to become a qualified supplier.
The applicant must enter their general profile, financial situation, production facilities, and submit relevant documentation such as business registration certificate, credit evaluation report, factory authorization certificate, among others.
Evaluation
POSCO will review and evaluate new supplier applications according to criteria such as credit level, facilities, experience, among others.
POSCO will select the suppliers that pass the document evaluation and will conduct on-site inspections.
Results and registration
The evaluation results will be communicated to each applicant.
POSCO will provide training on contracting processes and procurement ethics to new suppliers, and will grant them access to bidding processes.
Contracting process
Bid announcement
The request for quotation (RFQ) will be published in the e-Pro system and sent by email to suppliers.
The RFQ includes the bid name, method, date, delivery conditions, among other information.
Suppliers must submit a preliminary quotation according to the established conditions.
Bidding and negotiation
POSCO will notify the detailed bidding conditions to suppliers that submitted a preliminary quotation.
Suppliers invited to participate in competitive bidding or negotiations must submit their offers within the established deadline.
Once the process is completed, participants may check the results.
Purchase contract
Among the suppliers participating in the electronic bidding or negotiation, the bidder with the best offer will be selected as the awardee.
The awarded supplier must review the purchase order (PO) in e-Pro and sign the contract electronically using a digital certificate.
The electronically signed contract will have legal validity.
The contract type may be BPA, long-term, or a one-time contract.
Order and delivery
Delivery documentation
The supplier must issue the delivery receipt and material identification label in the e-Procurement system before making the delivery to POSCO.
Depending on the inspection criteria, drawings, catalogs, and test reports may be required.
Visit request
The supplier must enter the delivery schedule and request the visit through the e-Procurement system.
Delivery
The supplier must deliver the products at the designated location within the established deadline.