Introduction of four major guidelines for fair trade

To overcome the lack of clarity on fair trade regulations and to promote accountability and transparency, TYM has introduced four guidelines to observe, practice, and comply with fair trade regulations.

1. Signing contracts for win-win partnerships between large and small businesses By sharing all necessary information on the guidelines, steps and requirements for businesses to enter contracts with TYM, we guarantee transparency and stability of business activities and achieve practical mutual development with current and prospective business partners. In addition, we have opened an anonymous communication channel for potential partners theough the Cyber Petition form, and opened up channels to accept proposals from new companies that want to do business with TYM.
   
   
2. Selecting and managing business partners In accordance with ISO procedures, TYM conducts reasonable and objective management of business partners. This includes evaluation and registration of prospective business partners, regular evaluation of existing business partners, and training and post-service for all partners.
   
   
3. Establishing and running an internal review committee for subcontractor transactions To proactively and autonomously counter unfair trade practices, TYM establishes and runs internal review committees to prevent violations of the law at the working level and secure the fairness of subcontractor transactions. The internal committee convenes once a month and can be called to convene at any time in case pending issues arise. Review items include fair conclusion of contracts, pricing processes for subcontract transactions above a specified amount, the legality of relevant laws that apply to subcontracting, and cooperation with subcontractors. Registration and cancellation criteria and procedures are also reviewed to determine adequacy.
   
   
4. Supplier management practices To enhance transparency and fairness in our supplier selection and operational processes, TYM provides clear business practice standards to internal purchasing teams and thereby establishes an order of fair trade for external suppliers. All purchasing managers at TYM pledge to conduct fair businesses by signing a pledge of integrity every year.

Supplier support system For small- to medium-sized businesses that have difficulty managing funds due to the domestic economy, TYM provides support by offering secured loans of credit sales and corporate purchase loans.

Secured loans of credit sales Alongside the implementation of an electronic payment system in 2007, a system was created for suppliers to receive loans though accounts receivable at low interest rates as collateral for early delivery. This enables us to see the effect of reducing financial costs.

Corporate purchase loans Instead of paying for goods through invoicing, the supplier can receive a loan and pay in cash, so goods can be collected in advance as required.

Q-Academy two times a year Twice a year, TYM hosts Q-Academy, a training session for suppliers that explains our policies, including pre-inspection of potential quality problems and training on how to prevent them from arising.

Quality inspections three times a year TYM undertakes efforts to maintain and manage set quality standards, enabling suppliers to cultivate awareness and autonomously manage and raise quality. Suppliers that fail to observe quality standards during inspections are notified of non-compliance and are required to improve processes and submit specimens.

Regular guidance on quality inspection and management TYM facilitates incremental improvements by evaluating suppliers based on practical work scenarios. To manage processes and workflows, we prepare work standards, offer guidance, and conduct inspections biannually. Once in the first half of the year, and once more during the second half of the year. In 2020, technical guidance was offered to eight TYM suppliers. TYM is also making efforts to comply with environmental laws as per business partner regulations and secure a safe working environment.