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Whistleblower system (Ombudsman)

A ship and three people with their hands together in the middle of the circle

The purpose of this system is to
clearly articulate and effectuate an
internal reporting process of any
inappropriate activities
(unlawful/unethical/corrupt activities)
that can occur inside and outside of the
company in the ordinary course of

    1. 1. Applicable Activities
      1. 1.1 Accepting inappropriate bribes, entertainment, or favors from stakeholders
      2. 1.2 Taking advantage of his/her job position to gain profit or causing damage to the company
      3. 1.3 Interfering with other employee's work to benefit oneself or others
      4. 1.4 Disclosing company's confidential information and customer information without permission
      5. 1.5 Collusion among stakeholders such as bid rigging to close a deal
      6. 1.6 Spreading malicious rumors and lies and damaging the company image or reputation of certain employees
      7. 1.7 Retaliation against whistle-blowers by exposing the identity or unfair treatments
      8. 1.8 Other activities in violation of code of ethics, employee code of conduct, and laws
    2. 2. How to File a Report
      1. 2.1 Although anonymous reporting is allowed under certain circumstances, using a real name is recommended.
      2. 2.2 Include the name of reporter (if reporting with real name) and the information of the person involved in the alleged misconduct in detail and provide the supporting documents if there is any.
      3. 2.3 Where to File
        1. (1) Online Report Channel: Company Website (www.dsme.co.kr) or Company Portal (DSME Portal)
        2. (2) Visit the Corporate Ethics Team or Call: Phone) 055-2321~5, Fax) 055-680-7177
        3. (3) Report by Mail: 1 Aju-dong, Geoje-si, Gyeongsangnam-do, DSME, Corporate Ethics Team (657-710)
        4. (4) Reports can also be filed at different locations by different methods upon request.
    3. 3. Duty of a Whistle blower
      1. A person who reports must not intentionally make a false accusation to defame or slander others.
    4. 4. Follow-up Procedures
      1. 4.1 The Corporate Ethics Team verifies the submitted information as soon as possible.
      2. 4.2 Reports the submitted information and the result of the verification to the Chief Ethical Officer and conducts an investigation. However, if after reviewing the submitted information, the alleged violation is determined to be not applicable or its obscurity makes it impossible to verify the report, or it is a minor violation that is not sufficient merit to an investigation, the Office can close the case at its sole discretion.
      3. 4.3 When the report turns out to be a false accusation, the applicable department can request disciplinary action against reporter to degree of damage.
      4. 4.4 Once the approval by the manager who has the authority is obtained, any disciplinary or corrective action necessary will be notified to the pertinent department.
    1. 1 Applicable Activities
      1. 1.1 Reporting of employee’s acceptance of bribes, entertainment, or favors
      2. 1.2 When the report of the violation resulted in increasing profit or reducing loss to the company.
    2. 2. Basis of Reward
      1. 2.1. Reward Amount Limit
        1. (1) A report of employee’s acceptance of a bribe, entertainment, or favors: KRW 50 million
        2. (2) When reporting the violation resulted in increasing profit and reducing loss to the company. KRW 500 million
      2. 2.2 When more than two grounds for the reward exist for a same case, whichever is larger will be applied.
      3. 2.3 The bribery amount or the effect of increased profit or reduced loss that turned out to be irrelevant to the submitted report the inspection is excluded.
    3. 3. Calculation of the Reward
      1. 3.1 Reporting an employee's acceptance of bribes, entertainment, or favors: Five times the received amount
      2. 3.2 When reporting the violation resulted in increasing profit and reducing losses to the company: in proportion to the amount contributed
      3. 3.3 A small financial reward can be paid to reporter of a submitted case in appreciation, if it is not applicable to the above described categories but applies to the one of the followings:
        1. (1) Contribution to the business or system improvement (removal of unethical risks)
        2. (2) Full cooperation with the inspection by offering testimony and supporting documents
    4. 4. Exclusion to the Reward
      1. 4.1 When the submitted report turns to be false or impossible to prove due to lack of evidence
      2. 4.2 When the report is released to the media or reported to the Corporate Ethics Team already
      3. 4.3 When the report is submitted anonymously, and it is not possible to identify reporter
      4. 4.4 When the report is submitted by a member of the Corporate Ethics Team
      5. 4.5 Other cases deemed to be inappropriate for reward
    5. 5 Leniency Program for Self-reported Misconduct
      1. 5.1 When an employee self-reports the acceptance of bribes, entertainment, or favors within 5 days of the acceptance, he/she will not be reprimanded.
      2. 5.2 When an employee self-reports his/her intentional act or mistake which caused damage to the company immediately after the recognition, the disciplinary action will be mitigated.
      3. 5.3 Exception
        1. (1) When the Corporate Ethics Team had already started an investigation of the pertinent case at the time of self-reporting
        2. (2) When the self-reporting employee refuses to return the inappropriately accepted benefits or compensate the company for the damage caused
      4. 5.4 When the employee whose disciplinary actions were exempted or mitigated under the leniency program makes a second offense for the same or similar activity is subject to aggravating circumstance.
    6. 6 How the Reward is Paid
      1. 6.1 To protect reporter's identity, the director of the Corporate Ethics Team receives and delivers the reward using a method chosen by reporter.
      2. 6.2 To ensure that the reward is processed without leaving the personal information of reporter in the accounting records, the relative departments must cooperate.
    1. 1. Prohibition of Exposing Identity or Tracking Down
      1. 1.1 Any employee who accidently or in his/her course of business comes across the identity of a reporter or the submitted claim shall not disclose the pertinent information to anybody.
      2. 1.2 The person involved in the alleged misconduct or anyone from his/her department shall not make any attempts to find out the identity of reporter by asking the Corporate Ethics Team or questioning other employees.
      3. 1.3 Anybody who violates any one of the above articles is subject to disciplinary action.
    2. 2. Managing the Exposed Whistle blowers and Prohibition of Unfair Treatment against the Whistle blower
      1. 2.1 When a reporter's identity is exposed, he/she shall report the incident to the Corporate Ethics Team, who will then track down the route and request disciplinary action.
      2. 2.2 Any discrimination or unfair treatment against reporter is prohibited, and any violator is subject to disciplinary action.
      3. 2.3 When a reporter believes he/she was discriminated or received unfair treatment or such actions are expected, he/she will request the Corporate Ethics Team for protection measures, such as a change of position. The Corporate Ethics Team shall make their best efforts to solve the situation without detriment to reporter after conducting through research.

DSME Anti-Corruption 3 Principles

: These principles apply to all employees and board members

1. Zero Tolerance to Corrupt Practice

The company and its employees reject all types of corrupt behavior.

2. Engagement of Leaders in Anti-Corruption Campaign

All leaders should influence their subordinates' ethical behavior and create an ethical environment in their respective organizations.

3. No Leniency for Corruptors

The company will never tolerate an employee or a partner company who are engaged in corrupt practices.