KT&G operates a system of unethical act report in order to prevent unethical acts for settlement of transparent and ethical management.

• Act subject to report : Unethical acts related to the duties of officers, employees and interested persons
• Standards for payment of reporter’s reward
  Officers and employees (informant) : the reward will be paid under internal rules
  External person (informant) : the reward will be paid in amount of 20% of the value subject to the reward (limit on maximum payment: 10 million won)

※ Value subject to the reward: the amount which brings a recovery or increase of direct income to the company through the measures to remedy the reported unethical act
※ Exceptions of payment of reward

• 1. When the details of report are discovered as untrue as a result of investigation
• 2. When the report falls under the case which has been already investigated
• 3. When the calculation of reward is impossible or there is no money to be recovered (generated) from relevant report
• 4. Other matters which are set forth in the ‘Guidelines for protection of informant of unethical act’