KCC designates Q3 as special compliance period, tightens checks on subcontracting and dealership transactions

KCC has designated the third quarter of this year as a special voluntary compliance period, stepping up its review of fair-trade risks in subcontracting and dealership transactions. The company plans to reduce the likelihood of legal violations at transaction sites in advance through surveys of partner companies and dealership owners, as well as checks on the use of standard contracts.

KCC held a "Compliance Day" event at its Seoul headquarters on June 24 to promote a culture of fair-trade self-compliance, and announced the designation of the third quarter of 2026 as a special voluntary compliance period. The event was attended by CEO Jung Jae-hoon, the company's compliance officer, members of its compliance committee, and executives and team leaders from the sales division.

At the event, KCC shared its revised fair-trade voluntary compliance policy and future operational direction. Attendees signed a pledge to practice fair-trade self-compliance and reviewed the results of first-half compliance program (CP) activities. A CP is an internal compliance management system that companies establish to voluntarily observe laws and regulations related to fair trade.

Among the key first-half activities highlighted was a series of direct visits to major subcontractors nationwide to conduct CP audits on subcontracting transactions. Through the process, KCC checked the status of regulatory compliance and identified difficulties and areas for improvement among partner companies. Other first-half achievements included the establishment of a standard contract culture, a 90.6 percent participation rate in CP risk self-assessments, and a completion rate of more than 90 percent for integrity management and anti-solicitation law training.

KCC's emphasis on subcontracting and dealership transaction reviews reflects the nature of its business, in which dealings with partner companies and dealerships account for a large share of its major operations in building materials, paint and silicone. Areas such as raw materials price fluctuations, delivery condition adjustments and the use of standard contracts are recurring sources of fair-trade risk on manufacturing sites.

KCC said it will proactively identify fair-trade risks that may arise in the course of business, centering on voluntary compliance practice leaders within each organization. The company also plans to strengthen the operation of its pre-work consultation system and internal reporting system. It aims to improve the effectiveness of its compliance management framework through regular monitoring and self-inspections.

"Compliance management is an important foundation that underpins a company's sustainable growth and trustworthiness," said Kwon Seong-uk, KCC's executive director and compliance officer. "We will continue to strengthen education, prevention and inspection activities to spread a culture in which all employees practice voluntary compliance in their day-to-day work."