- 1. Purpose
- The purpose of this guideline is to contribute to the establishment of a fair subcontracting transaction order by enhancing transparency and fairness in the process of registering and operating subcontractors and to inform general matters regarding the company’s registration and operation of subcontractors.
- 2. Composition of the Guideline
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- 1) Matters related to new registration of subcontractors
- 2) Matters related to the modification and registration of changes made by subcontractors
- 3) Matters related to suspension of transactions with subcontractors
- 3. Definition of Terms
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1) The term "subcontractor" under the guideline means a company that develops and supplies general automotive parts and materials in accordance with the procedures for developing parts or materials, and is recognized as the company’s primary parts supplier or material supplier.
2) The term "subcontractor registration" means that it has been approved as the company’s subcontractor.
- 4. Disclosure of Criteria, Procedures, and Results for Evaluating the Registration of Subcontractors
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1) Matters concerning the criteria and procedures for evaluating the registration of subcontractors shall be included in this guideline, and notified and publicly operated as the company’s external foreign documents.
2) In the case of changing the criteria for evaluating the registration of subcontractors, this guideline shall be revised and notified as an external document issued by the company.
3) When the registration of a subcontractor is decided, the result shall be individually notified in writing (including electronic documents, hereinafter the same applies), and the reason for rejection shall be notified to the unselected company in writing or by wire.
- 5. Procedures for New registration of Subcontractors
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5.1 Application for registration
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A company that desires new registration shall submit the following documents after obtaining approval from the head of the department in charge of company selection.
1) General status of the company (subcontractor’s self-form)
2) A survey table of a new supplier (to be prepared after receiving the form from the department in charge of company selection)
3) Financial statements (certified by an accredited institution in the year immediately preceding the registration application date)
5.2 Evaluation of subcontractors-
1) The evaluation criteria for subcontractors shall be implemented in accordance with the company's supplier management procedures, and the evaluation items are classified as follows:
① Survey on the status of subcontractors
② Technical evaluation
③ Quality system evaluation
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2) Each department's evaluator evaluates the company according to the department's evaluation report.
5.3 Synthesizing evaluation results.-
The head of the department in charge of company selection conducts a comprehensive evaluation by synthesizing the evaluation results. As a result of the comprehensive evaluation, in principle, the transaction threshold of the company is at least approval (85 points or more/100 points) or conditional approval (65 points or more/100 points).
5.4 Request for approval of registration-
If it is determined eligible for transaction as a result of the company's evaluation, the head of the company's selection department shall prepare related documents and conduct new registration procedure, and the company requesting registration shall cooperate to prepare related documents.
① Business license
② A certified copy of the corporate register
③ Financial statements
④ Factory LAYOUT
⑤ Quality assurance certificate
⑥ New supplier registration evaluation
5.5 Registration.-
The head of the department in charge of company selection shall carry out the registration of a subcontractor in accordance with the following procedures:
1) The company and the newly registered company shall prepare 2 copies of the basic transaction agreement, the quality assurance agreement, the claim compensation agreement, and the compensation agreement for delay in delivery, respectively, and keep 1 copy each after the seal of both CEOs.
2) The head of the department in charge of company selection requests new registration of the subcontractor to the department in charge of computer registration and subcontractor CODE granting, and grants a new subcontractor CODE.
5.6 Notice of commencement of transaction- The head of the department in charge of company selection 1) notifies the details of the commencement of transactions with the registered company in writing (including electronic documents) to the subcontractor and the related business team within 15 days when a new CODE of the registered company is granted, and 2) requests the operation team of the SCM and the development quality information system to open the system for the registered company.
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- 6. Registration of Changes in the event of Changes in the Transaction Registration Company
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1) The company’s subcontractor shall notify the company's selection department and material management team of changes in registration details, such as change of name, change of representative, or relocation of location, etc.
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2) However, in the case of change of representative due to the sale of shares, or transfer to third parties, excluding changes due to inheritance, simple representative authority, etc., it is necessary to request the change registration to the department in charge of company selection and the material team, including the following matters in order to determine whether to continue transactions with the company
- Personal information of the new representative and grounds for ownership transfer
- In the case of a corporate investment plan, the previous company evaluation, the basic transaction contract and all documents shall re-signed and submitted .
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- 7. Cancellation and Termination of the Contract of the Transaction Registration Company
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1) The reasons for cancellation or termination of the contract shall be determined by agreement between the parties, and are classified into "cases possible to cancel or terminate without a notice" and "cases where a notice is necessary", but if a reason for cancellation or termination occurs, it shall be notified in writing without delay.
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2) The following are cases possible to cancel or terminate without a notice.
- Where the other party receives a suspension of transaction from a financial institution, or business cancellation, business suspension, etc. from a supervising authority
- Where it is deemed impossible for the other party to fulfill the contract due to serious business reasons such as bankruptcy, compulsory execution by a third party, bankruptcy, commencement of composition, and company reorganization procedures, etc.
- Where the other party decides to dissolve, transfer business, or merge with another company, or both parties admit that it is difficult to fulfill the contents of the basic contract or individual contracts due to a disaster or other reasons
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3) The following are the cases in which a notice is required, and in this case, a party may terminate the contract if it is not fulfilled within that period after notifying the other party of fulfillment of obligation setting a period of at least 3 months.
- Where the other party violates the important contents of this contract or individual contracts
- Where the company to receive delivery delays the implementation of the matters necessary for the manufacture of the ordered parts without justifiable reasons, which interferes with the supplier's work
- Where it is deemed difficult to deliver within the delivery date due to the supplier's refusal to manufacture the ordered parts or delay the launch without justifiable reasons
- Where there is a considerable reason for the supplier's lack of technical, production, and quality control capabilities so that the contents of the contract cannot be fulfilled smoothly
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