KBank has improved its procurement policies and regulations to serve as guidelines for sustainable supply chain management. Such guidelines cover both the supplier recruitment and selection processes, with emphasis placed on suppliers’ qualifications and the quality of their products and services, based on the assessment of their ESG-related responsibilities and controls, risk assessment and supplier classification, processes of monitoring, inspection and assessment, and supplier relationship management. 

In recognition of the importance of personal data protection and to prioritize compliance with personal data protection laws and other relevant regulations, KBank has determined related rights and responsibilities regarding the collection, use, or disclosure of personal data and has implemented appropriate control and security measures to prevent unauthorized or unlawful access, use, alteration, modification, or disclosure of personal data, as well as data leakages. These practices are upheld as standards for suppliers.

KBank attaches importance to and supports its suppliers to conduct businesses, with integrity and transparency in line with the relevant laws, rules and regulations. With this in mind, the Bank has developed the Supplier Code of Conduct, which covers business ethics, human and labor rights, occupational health, safety and work environment, risk management, product quality, supervision of community relationships and whistleblowing. All

suppliers are required to acknowledge and accept the Supplier Code of Conduct prior to being KBank’s suppliers. Once they are KBank’s suppliers, they must strictly comply with the Supplier Code of Conduct.

The Bank has produced the Supplier Handbook in accordance with the Operational Procedures on Procurement for suppliers to acknowledge and adhere to. The handbook covers the fundamental practices for suppliers to carry out their businesses in compliance with the relevant laws, regulations, the Statement of Business Conduct of KBank and business ethics. It also helps suppliers maintain their operational standards in alignment with the Bank’s Supplier Code of Conduct, ensuring that their operations are free from fraud and corruption in any form while preventing wrongful exploitation of duties and conflicts of interest. The Bank’s supplier handbook also encourages suppliers to join the anti-corruption network.  

The Bank has developed its work process through strategic procurement methods with suppliers. This is an important factor that has helped reduce the overall costs, enhance efficiency, and provide guidelines for systematic collaboration with suppliers. Aside from promoting continuous development and improvement in the Bank’s work process, such methods have helped mitigate potential risks arising from collaboration with suppliers while also fostering long-term relationships with them and supporting environmentally friendly procurement of goods and services.

The Bank has entered into an ESG (Green) Contract with suppliers. The Green Contract sets forth terms and conditions that are in alignment with regulations and policies concerning environmental conservation, occupational safety, health and workplace environment, social responsibility and penalties for any breaches of the agreed-upon terms and conditions.

Read more in KBank's Sustainability Report 2024 Chapter Sustainable Supply Chain Mangement