Supplier Management
Suppliers of Shin Kong Security are primarily group businesses, such as Shinsoft Co., Ltd., which provides digital surveillance, access control products, smart logistics, and information platform services; Shincluster Electronics Co., Ltd., which primarily provides security control products (video intercom system, perimeter sensor, parking management system, access control and attendance system, monitoring management system, and various security equipment supply). Furthermore, according to the different business attributes of the business groups, the executives of each division at SKS are responsible for supervising the group's operations. In doing so, they not only improve communication efficiency, but also allow the concept and practice of corporate social responsibility to be implemented in the business group's operations, to create a sustainable supply chain.
Supplier Management Model
SKS regards suppliers as a key component of its sustainability efforts and requires them to comply with the Supplier Code of Conduct. The Code is based on balancing economic, social, and environmental considerations and supporting sustainable development. To this end, the Company has established a supplier engagement program covering supplier selection, audit and guidance, performance evaluation, and training, integrating sustainability requirements into daily supply chain management.
In addition, SKS holds regular monthly procurement meetings, or as needed, with warehouse and relevant business units to identify and manage risks such as insufficient supplier capacity, quality issues, and potential supply chain disruptions.
In 2025, 100% of new suppliers signed the Supplier Code of Conduct, and existing suppliers are required to comply with the Code upon contract renewal. The Company also conducts annual checks through the system for enterprises violating labor regulations to verify whether suppliers have been penalized for non compliance with local minimum wage requirements. Where violations are identified, suppliers are required to provide explanations and implement corrective actions.
- Suppliers must strictly comply with and sign the Supplier Code of Conduct Commitment Letter.
- Construction and related operations contractors must obtain occupational safety and health management licenses.
- Local suppliers must obtain a valid registration certificate issued by the local government in accordance with their business type.
- A supplier audit task force has been established to conduct audits in accordance with the Supplier Code of Conduct Commitment Letter, along with tracking and follow-up on corrective actions for deficiencies, with the aim of jointly improving supplier quality.
- Irregular training sessions are held to effectively improve occupational safety and health performance through various forms of guidance and communication. The courses cover occupational safety and health, as well as regulatory risks.
Number & Percentage of Suppliers Signing the Commitment
Supplier Categories
Supplier Evaluations
In 2022, SKS established the Supplier Quality System and Process Capability Evaluation Standards, classifying key suppliers into four tiers: A, B, C, and D. Suppliers that pass the vendor management evaluation are eligible for qualified supplier contract renewal at year-end, while those that fail to meet requirements may be placed under improvement management or disqualified from renewal eligibility. In accordance with the Supplier Evaluation and Reward/Penalty Regulations, certain suppliers may also be subject to corrective actions or penalties.
SKS aims to increase the proportion of sustainable suppliers through systematic supplier management. New suppliers are screened using the Vendor Periodic Evaluation Form, and social standards, including health and safety practices, are applied prior to formal engagement. In 2025, the supplier evaluation coverage rate reached 100%. Through ongoing collaboration with suppliers, SKS seeks to create positive social, economic, and environmental value, reduce potential negative impacts, and jointly advance toward a more sustainable supply chain.
Since 2021, due to the COVID-19 pandemic, on-site visits were limited, accelerating the Company’s digital transformation. For example, some in-person procurement meetings were replaced by remote communication, reducing cross-regional travel and supporting new service models. In 2025, SKS conducted on-site audits for 5 key suppliers and plans to increase the number of on-site evaluations in the future. The Company also conducts regular performance assessments and organizes training sessions as needed to strengthen supplier management and support, ensuring supply chain stability and sustainability.
Sustainable Environmental Education Practices
