In October 2005, we became the first display panel company to receive accreditation as an
International Accredited Testing Laboratory by the Korea Laboratory Accreditation Scheme, which is operated by the Korean Ministry of Trade, Industry & Energy. In September 2006, we received international accreditation from TUV SUD,
EUs German accreditation agency, as a RoHS testing laboratory. Our efforts to keep pace with the increasingly stringent accreditation standards and to receive and maintain such accreditations are part of our
on-going
efforts to systematically monitor environmentally controlled substances in our component parts inventory. Moreover, we participated in reforming IEC 62321, an international testing standard published
by the International Electrotechnical Commission and used by RoHS, and the commission adopted our
halogen-free
combustion ion chromatography method in as IEC
62321-3-2,
which was published in June 2013. In 2017, in a joint effort with the global product testing/accreditation agency SGS, we became the first display panel company to develop Eco Label, an
environmentally friendly accreditation program for television display modules, and received the SGS Eco Label accreditation for our OLED and LCD television models in 2017 and 2018. For the IPS Nano Color for LCD, we received the Quality &
Performance Mark from Intertek, a global product testing/accreditation agency, by applying a technology to eliminate cadmium (Cd) and indium phosphide (InP). In 2018, we became the first display panel company to receive the Green Technology
Certification from the Korean Ministry of Science and ICT for improving the light efficiency technology of OLED to promote energy use reduction.
In June 2017, we were assessed a fine of
W
1 million, which we subsequently paid, for failure to meet certain waste
disposal subcontractor requirements under the Waste Management Act. To prevent such violations from occurring again, we are strengthening the periodic evaluation process for our waste management subcontractors.
In June 2017, we were audited by the Ministry of Employment and Labor in connection with the occurrence of a safety accident and found to be
in violation of certain provisions of the Industrial Safety and Health Act relating to supervisory obligations. As a result, we were issued a corrective order and assessed a fine of
W
2.4 million. In addition, the trial court
ordered a fine of
W
0.5 million on each of us and our chief production officer on the basis of certain other applicable provisions of the Industrial Safety and Health Act. In relation to the same matter, in May 2018, the
Prosecutors Office sought a fine of
W
3.0 million on each of us and our chief production officer on the basis of certain other applicable provisions of the Industrial Safety and Health Act. The trial court (Goyang Branch
of Uijeongbu District Court) issued a summary order confirming the same fine of
W
3.0 million on November 22, 2018. We and our chief production officer appealed the trial courts decision, and the case is currently
pending appeal at the Uijeongbu District Court. In order to prevent such accidents from occurring again, we are strengthening our safety management standards and training for our employees.
In January 2018, we were audited by the Ministry of Employment and Labor in connection with the occurrence of another safety accident and
found to be in violation of certain provisions of the Industrial Safety and Health Act relating to supervisory obligations. As a result, we were issued a corrective order and assessed a fine of
W
14.4 million. In relation to
this matter, in January 2019, the trial court (Goyang Branch of Uijeongbu District Court) assessed a fine of
W
1 million as a summary order on each of us and our chief production officer pursuant to certain other provisions of
the Industrial Safety and Health Act. In addition, in January 2019, the trial court sought a fine of
W
4 million and
W
2 million on us and the employee in charge of
on-site
safety management, respectively, on the basis of certain other provisions of the Industrial Safety and Health Act. Relevant authorities are currently conducting further investigations. In order to
prevent such accidents from occurring again, we are strengthening our safety management standards and training for our employees.
Also in
January 2018, the government of
Gyeong-gi
Province issued a warning and assessed a fine of
W
1 million on us, which we subsequently paid, for the failure to comply with certain
requirements relating to air pollutant emission and prevention facilities under the Air Quality Management Act. To prevent such violations from occurring again, we have shortened the air pollutant emission maintenance reporting period and
strengthened the verification process for relevant data.
In February 2018, we were assessed a fine of
W
0.04 million
by Paju City for stopping a vehicle in front of a day care center in violation of certain provisions of the Road Traffic Law. We have since paid the fine and are in the process of strengthening our parking guidance procedures to prevent such
recurrence.
In March 2018, we were audited by the Ministry of Employment and Labor in connection with our health and safety training
practices, and we were found to have omitted requisite health and safety training sessions for certain employees in our P9 facilities in 2016 and 2017. As a result, we were assessed a fine of
W
6.95 million, which we
subsequently paid, and have strengthened our efforts to promote health and safety training programs in advance as well as our management and supervision activities to ensure such programs are conducted.
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