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Responsible Management

Responsible management that ensures stakeholders’ value through integrity

Responsible Management

Hyosung Advanced Materials responds to the needs of various stakeholders and fulfills its role as a member of the social community. We strive to fulfill our social, economic, and environmental responsibilities through our business activities. With a goal to contribute to the enhancement of the various stakeholders’ and corporate value, we carry out responsible management activities in various sectors.

Ethical Management

In an effort to ensure more transparency in its business management, Hyosung Advanced Materials has adopted the ‘Code of Ethics’ so that all employees can refer to it as a set of guidelines to make decisions properly and ethically. Hyosung Advanced Materials will continue to facilitate healthy corporate culture and fulfill its social roles and responsibilities as a global corporate citizen.

Ethics management - Compliance with Laws and Regulations, Customer-respecting Management, Shareholder-oriented Management,
																							Employee-respecting Management, Employees Compliance Management, Suppliers Shared Growth Management, Social Responsibility Management

General Principles

  • I.Scope of Applicability

    The Hyosung Advanced Materials Code of Ethics applies to all affiliated companies including the holding company of Hyosung Advanced Materials and all employees.

  • II.Monitoring the
    Code of Ethics

    Hyosung Advanced Materials regularly reviews on the Code of Ethics and may require advice from the Legal Compliance Team when encountering unclear or ambiguous application standards.

  • III.Reporting Violations
    of the Code of Ethics

    All stakeholders subject to the Code of Ethics shall report violations to the Legal Compliance Team right after perceiving them without delay. Any decisions or actions against the Code of Ethics may be investigated and penalized according to the company regulations. Unethical behaviors or corruption can be reported through the Reporting Center. We guarantee identity of the informer is kept secret, and any disadvantage or discrimination against the informer is prohibited.

  • Ⅰ.Compliance with Laws and Regulations
    Compliance with national policies and regulations
    01

    We respect national policies and do not engage in illegal activities.

    02

    The company competes in good faith with its competitors based on products and services in business operation and does not engage in unfair competition.

    03

    We do not obtain information in an unethical or illegal way violating related laws.

    04

    Employees who work abroad respect and comply with the laws and social order of the host country so that their performance in the company is not interfered.

    05

    We do not only respect market economy order, trade customs and regulations of domestic territory but also overseas counterparts to ensure legitimate and fair business trades with our business partners.

    06

    As a member of the country and local communities, we comply with various laws and regulations concerning the prevention of corruption, bribery and money laundering, and report any suspicious transactions through due process and method.

    Compliance with the corporate regulations
    and basic corporate ethics
    01

    We share the company’s business philosophy and goals, comply with the corporate management policies and regulations, and focus capabilities to complete the imposed tasks in a timely and accurate manner based on ownership and responsibility at work.

    02

    In official works, the interests of the company are prioritized rather than those of individual person, and the work is carried out objectively and rationally.

    03

    We neither work for third party individuals or companies which have a conflict of interest with the company(HAMC), nor form any special relationships with them.

    04

    The company’s confidential or sensitive information is strictly protected, and important information is communicated immediately to the relevant person for work. And we neither distort information nor disseminate any false information.

  • Ⅱ.Customer-respecting Management
    Business trades with customers
    01

    With customer satisfaction as a top priority, we strive to provide the highest-quality products and services and fully comply with our promises with customers.

    02

    We make sure the trades with customers are carried out reasonably in an equal position based on mutual respect.

    03

    We do not abuse our superior position to ask customers for any kind of unreasonable demands.

    04

    We do not advertise and display false or exaggerated information. We do not conceal information and disclose information that customers need to know.

    05

    We are responsible for the entire lifecycle of our products in consideration of consumer safety from the procurement stage of purchasing raw materials, parts, and packaging materials that do not contain hazardous materials to product development, manufacturing, logistics, reuse, and recycling.

    Partnership with suppliers
    01

    We maintain mutual trust and respect with our business partners to promote shared growth and increase benefits among both parties.

    02

    The company provides equal opportunities in the event of bidding and signing contracts and carries out business trades reasonably by signing a contract in an equal position.

    03

    The company maintains constructive relationship with suppliers by finding and fostering excellent suppliers.

  • Ⅲ.Shareholder-oriented Management
    Protecting interests of shareholders and investors
    01

    We strive to make sound profits by efficient management activities and increase shareholders’ value by rational investment.

    02

    We manage and record financial status accurately and transparently in accordance with accounting standards.

    03

    We do not engage in unfair trade practices by using internal information for the private benefit of one’s own or others.

    Protecting shareholders’ right to know
    01

    We provide reliable and useful information about overall business status to stakeholders and investors in timely manner.

    02

    We try to ensure that our corporate value is evaluated properly through active advertisement and IR activities.

  • Ⅳ.Employee-respecting Management
    "Each of the employees is the most important
    asset of the company."
    01

    We respect individual characteristics of each employee, encourage their creative thinking and autonomy, and provide support for their capacity building as well as educational opportunities.

    02

    We provide equal opportunities to all employees and evaluate their performance and capabilities fairly.

    03

    We do not discriminate on the grounds of nationality, educational background, region, gender, age, religion, political inclination and marital status when it comes to employment, work and promotion.

    Facilitating a sound corporate culture
    01

    Employees do not engage in unethical conducts such as gambling, taking improper money, borrowing money, or writing joint and several liability among each other.

    02

    Employees do not conduct defamatory behaviors as well as any verbal, physical, sexual or visual behaviors which may offend other employees, and we respect personal privacy of each individual.

    03

    We do not favor or discriminate against certain individuals or organizations for reasons of nepotism, academic relations, religion, or gender and do not ask to cause disadvantage against other employees.

    04

    The company and employees create a creative and proactive corporate culture in order to achieve shared goals and do not engage in acts that encourage departmental selfishness or conflicts.

  • Ⅴ.Employees ethical management
    Transparent and fair work performance
    01

    A supervisor may not give his/her subordinates unfair work orders that conflict with the legal and corporate regulations. In response, the subordinates can refuse to perform his/her duties by clarifying proper reasons.

    02

    An employee should neither engage in any kind of solicitation that undermines the fair working performance of other employees for the sake of his/her own or others’ interests, nor receive or promise any bribes.

    03

    Employees should comply with national laws and regulations and follow company guidelineswhen giving and receiving gifts to and from stakeholders while performing their duties.

    04

    Employees strive to avoid any conflict of interest between the company and customers or between customers by using their superior status and personal interests. When a conflict of interest arises, they try to seek for resolutions to minimize damages to stakeholders.

    05

    Employees should strictly manage and protect corporate or customer data acquired during work, in accordance with relevant laws and corporate regulations, and should not leak it out or use it for personal purposes.

  • Ⅵ.Suppliers Shared Growth Management
    Pursuit of shared growth
    01

    When selecting suppliers, starting and continuing contracts with them, we consider whether they support human rights, environmental and social values which the company pursues.

    02

    We ensure that business trades with a supplier are carried out fairly in an equal position, and we thoroughly discuss trade conditions and process with suppliers and do not commit unfair trade practices, abusing our superior position.

    03

    We create a foundation for shared growth with suppliers by enhancing their sustainability through multi-faceted support activities.

    04

    We protect the intellectual property rights of our business partners and protect all information of our subcontractors.

  • Ⅶ.Social Responsibility Management
    Contribution to social development
    01

    We respect the values of the domestic and overseas local communities where the business operates and continue to create employment and fulfill our basic responsibilities as a member of society.

    02

    As an exemplary member of society, we actively respond to social demands imposed to the company such as CSR activities.

    03

    We strive for environment conservation and also actively participate in local environmental protection.

    Sound social life
    01

    We refrain from improper privacy, and take self-management. In addition, we do not engage in any conducts which can undermine the company’s reputation.

    02

    We do not engage in any political activities that benefit any specific party or social group, using the position in the company.

    03

    We properly assess the sustainability of suppliers and their products, and rightfulness of their production processes in the procurement activities in order to create a sustainable supply chain.

Code of Ethics Guidelines for Practice

We aim to become a trusted company with the honest management activities.

  • Ⅰ.Compliance with Laws and Regulations
    Compliance with national policies and regulations
    01

    We respect national policies and do not engage in illegal activities.

    02

    The company competes in good faith with its competitors based on products and services in business operation and does not engage in unfair competition.

    03

    We do not obtain information through unethical or illegal means violating related laws.

    04

    Employees who work abroad respect and comply with the local laws and social order so that their performance in the company is not interfered.

    05

    We do not only respect market economy order, trade customs and regulations of domestic territory but also overseas counterparts to ensure legitimate and fair business trades with our business partners.

    06

    As a member of the country and local communities, we comply with various laws and regulations concerning the prevention of corruption, bribery and money laundering, and report any suspicious transactions through due process and method

    Compliance with the corporate regulations
    and basic corporate ethics
    01

    We share the company’s business philosophy and goals, comply with the corporate management policies and regulations, and focus capabilities to complete the imposed tasks in a timely and accurate manner based on responsibility at work.

    02

    In performing work-related tasks, the interests of the company are prioritized rather than those of individual person, and the work is carried out objectively and rationally.

    03

    We neither work for third party individuals or companies which have a conflict of interest with the company, nor form any special relationships with them.

    04

    The company’s confidential or sensitive information is strictly protected, and important information is communicated immediately to the relevant person for work. And we neither distort information nor disseminate nay false information.

  • Ⅱ.Customer-respecting Management
    Business trades with customers
    01

    With customer satisfaction as a top priority, we strive to provide the highest-quality products and services and fully comply with our promises with customers.

    02

    We make sure the trades with customers are carried out reasonably in an equal position based on mutual respect.

    03

    We do not abuse our superior position to ask customers for any kind of unreasonable demands.

    04

    We do not advertise and display false or exaggerated information. We do not conceal information and disclose information that customers need to know.

    05

    We practice process responsibility for the entire lifecycle of our products to ensure customer safety from the procurement stage of raw materials that do not contain hazardous materials to product development, manufacturing, logistics, reuse, and recycling.

    Partnership with suppliers
    01

    We maintain mutual trust and respect with our business partners to promote shared growth and increase benefits among both parties.

    02

    The company provides equal opportunities in the event of bidding and signing contracts and we sign reasonable contracts in an equal position for all transactions.

    03

    The company maintains constructive relationship with suppliers by finding and fostering excellent suppliers.

  • Ⅲ.Shareholder-oriented Management
    Interest protection of shareholders and investors
    01

    We strive to make sound profits by efficient management activities and increase shareholders’ value by rational investment.

    02

    We manage and record financial status accurately and transparently in accordance with accounting standards.

    03

    We do not engage in unfair trade practices including stock trading by using internal corporate information for both private purposes and others.

    Protecting shareholders’ right to know
    01

    We provide reliable and useful information related to overall business status to stakeholders and investors in timely manner.

    02

    We try to ensure that our corporate value is evaluated properly through active advertisement and IR activities.

  • Ⅳ.Employee-respecting Management
    Respect for employees
    01

    We respect individual characteristics of each employee, encourage their creative thinking and autonomy, and provide support for their capacity building as well as educational opportunities.

    02

    We provide equal opportunities to all employees and evaluate them fairly based on their performance and capabilities.

    03

    We do not discriminate on the grounds of nationality, educational background, region, gender, age, religion, political inclination and marital status when it comes to employment, work and promotion.

    Facilitating a sound corporate culture
    01

    Employees do not engage in unethical conducts such as gambling, taking improper money, borrowing money, or writing joint and several liability among each other.

    02

    Employees do not conduct defamatory behaviors as well as any verbal, physical, sexual or visual behaviors which may offend other employees, and we respect personal privacy of each individual.

    03

    We do not favor or discriminate against certain individuals or organizations for reasons of nepotism, academic relations, religion, or gender and do not ask to cause disadvantage against other employees.

    04

    The company and employees create a creative and proactive corporate culture in order to achieve shared goals and do not engage in acts that encourage departmental selfishness or conflicts.

  • Ⅴ.Employees Compliance Management
    Transparent and fair work performance
    01

    A supervisor should not give his/her subordinates unfair work orders contrary to legal and corporate regulations. In case such an order is made, the subordinates can refuse to perform his/her duties after presenting rightful reason for the refusal.

    02

    An employee should neither engage in any kind of solicitation that undermines the fair working performance of other employees for the sake of his/her own or others’ interests, nor receive or promise any bribes.

    03

    Employees should strive to avoid any conflict of interest between the company and customers or between customers by using their superior status and personal interests. When a conflict of interest arises, they try to seek for resolutions to minimize damages to stakeholders.

    04

    Employees should strictly manage and protect corporate or customer data acquired during work, in accordance with relevant laws and corporate regulations, and should not leak it out or use it for personal purposes.

  • Ⅵ.Suppliers Shared Growth Management
    Pursuit of shared growth
    01

    When selecting suppliers, signing contracts and renewing them, we consider whether they comply with human rights, environmental and social values which our company pursues.

    02

    We ensure that a business trade with a supplier is carried out fairly in an equal position, and we thoroughly discuss trade conditions and process with suppliers and do not commit unfair trade practices, abusing our superior position.

    03

    We create a foundation for shared growth with suppliers by enhancing their sustainability through multi-faceted support activities.

    04

    We protect the intellectual and actual property rights of our suppliers as well as all information acquired from them.

  • Ⅶ.Social Responsibility Management
    Contribution to social development
    01

    We respect the values of the domestic and overseas local communities where the business operates and continue to create employment and fulfill our basic responsibilities as a member of society.

    02

    As an exemplary member of society, we actively respond to social demands imposed to the company such as CSR activities.

    03

    We strive for environment conservation and actively participate in environmental protection in the local communities.

    04

    We actively support our suppliers in the supply chain for sustainable management and consider whether they engage in sustainable management activities when selecting and evaluating our suppliers.

    05

    We actively encourage green procurement in accordance with the details of the Environment-friendly Procurement Policy.

    06

    We do not purchase any raw materials and materials that have problems in human rights violations, political disputes, and others in the production process, such as conflict minerals and other products in general. We also guide our suppliers within the lower supply chain to consistently apply this principle.

    Sound social life
    01

    We do not engage in any conduct which will undermine the company’s reputation, refrain from improper privacy, and take through self-management.

    02

    We do not engage in any political activity that benefit any specific party or nongovernmental organization, using the position in the company.

Hyosung Advanced Materials Code of Ethics :
Announced on June 01, 2018
Amended on August 30, 2019
Amended on June 30, 2020

Ethical Management Activities

2020년 제 17회 윤리경영 CEO 서약식 사진
Hyosung Advanced Materials established and distributed the Code of Ethics and the Code of Ethics Guidelines for Practice on June 1, 2018 to internalize employees' ethical awareness that strengthens corporate sustainability. In line with changes in laws and regulations, and sustainable management development, we continue to supplement our ethical codes and guidelines to enhance the awareness of ethical management among employees. Chief Executive Officer of Hyosung Advanced Materials has declared the implementation of the Sustainable Development Goals (SDGs) through the 2019 UN Global Compact Declaration in order to fulfill ethical management and social responsibility. In 2020, we also participated in the ‘17th B.E.S.T. CEO Pledge Ceremony 2020’ hosted by B.E.S.T. Forum(Business Ethics and Sustainability management for Top performance) and declared compliance with ethical management at both domestic and overseas business sites.

Ethical Management Education

2020년 반부패 교육 영상 사진
Business managers, team leaders, and executives who are likely to encounter compliance risks are obliged to enroll ethical management educations each year. Theses courses are designed to enhance ethical awareness of the participants. From 2020, we expanded the participants from selected employees to all employees in Korea as well as all managers at overseas operations. The contents were also upgraded - case-oriented concise contents were newly prepared to raise awareness of ethical management and to provide customized information on current ethical management issues. We are in the process of expanding the educations to all overseas employees. Recognizing the importance of ethical management, we are conducting activities to strengthen ethical management awareness not only at the head office but also at overseas subsidiaries. In Vietnam, all employees have made an ethical management pledge in 2019 to comply with ethical management. Ethics training is provided to middle managers and mandatory for all new recruits.

2019 Hyosung Advanced Materials
Ethics Training (Domestic)

2019 Hyosung Advanced Materials Ethics Education (Domestic)
Course Contents Trainee No. of Attendees Total Hours
Ethics and anti-corruption
  • Introduction to trade secret protection and management
  • Violation cases of the Trade Secret Protection Act
  • Cases of embezzlement, foreclosure, and forgery of documents
  • Education on the Anti-solicitation Law, etc.
All employees 95 150.5
Fair Trade
  • Key contents and violation cases of the Fair Trade Act
  • Cases of price-fixing(oligopoly) and unfair trade practices
  • Overview on Fair Trade Survey and procedure
  • Key contents of the Subcontracting Law and Fair Agency Transactions Act
All employees 23 49.5

Preliminary Monitoring & Audit

In order to establish a transparent and fair ethical management system, Hyosung Advanced Materials is operating multiple channels which employees can discuss grievances and ethical standards. We also perform preliminary monitoring and on-request investigations to audit the employees’ unethical conducts.
The audit team monitors employees' misconducts through regular and special audits at the head office and domestic and overseas business sites.
The whistleblowing center at our website enables various stakeholders such as customers, partners, suppliers, and local community to freely make reporting(both in real name or anonymously) on a range of issues. The confidentiality of the whistleblowing contents are strictly kept in accordance with the internal reporter protection rules and the audit team directly investigates the issue and reports and notifies the results.
Employees can also report employees' unethical behaviors and discusses grievances and ethical standards through the HR Counseling Center. When any issue raised requires additional investigation due to unethical behaviors in the received contents, the audit team takes over and handles them.

Contents Eligible for Whistleblowing & Reporting

  • Violation of Law or the Code of Ethics
  • Human rights violations and harassment at workplaces
  • Complaints on transactions or fair trade violations
  • Lack of transparency in selecting suppliers
  • Employees and suppliers grievance
  • Information security breaches
  • Child labor or forced labor
  • Transaction complaints and fair trade violations
  • Illegal and improper use of company assets
  • Other illegal and unfair acts, etc.
  • Anti-corruption and demand and acceptance of money and goods and entertainment
  • Manipulation of documents and coefficients and negative reporting

Whistleblowing/Audit & Disciplinary Action Status of Hyosung Advanced Materials

Whistleblowing/Audit & Disciplinary Action Status of Hyosung Advanced Materials
2018 2019
Domestic Overseas Domestic Overseas
Number of Disciplinary Action through Whistleblowing - 1 - 1
Number of Disciplinary Action through Investigations - 1 - 1
Number of Disciplines - - - 6

The number of disciplines is the number people that received either reprimands, reductions, suspensions, and dismissals (written warnings have been excluded from the number of disciplinary actions)

Compliance Program

Introduction of Compliance Program(CP) and its Objective

The Compliance Program (CP) is a series of activities and system operated internally by companies to monitor, educate, and supervise business activities to comply with fair trade-related laws. Hyosung Advanced Materials adopted Hyosung Corp.’s CP, which was introduced in September 2006, upon the spin off on June 1, 2018, in order to establish a desirable business culture for fair trade. Through CP operation, we will not only prevent risks from violations of laws, but also establish compliance and ethical management in the ways employees work and in our corporate culture. Hyosung Advanced Materials will faithfully fulfill our responsibilities in fair trade by tailoring our CP in accordance to the competition and our business situation to realize responsible management.

CP Organization & Compliance Program Officer

The Legal Compliance Team is responsible for the daily operation of the CP. We plan to minimize legal and other related risks by increasing awareness of the CP and its operation guidelines, fair trade & transaction training, and monitoring for all employees. The Compliance Program Officer, appointed by the CEO, is the key person in charge of running the CP, and has been empowered to report important issues directly to the Board of Directors and top management.

  • Social Contribution Committee
  • CEO
  • Board of Directors
  • Compliance Program Officer
  • Legal Compliance Team
    Audit, HR, Training
  • Risk Management
    Monitoring
    Internal/
    External whistleblowing
    Compliance Program Training
    Periodic education and revision of Compliance Program Handbook
    Reward System
    Awards & discipline related to CP
  • Establishment and Revision of CP Regulations
  • Top Management's Commitment for Compliance

Talent Management

Open and Supportive Talent Attraction

Fair and Open Recruiting

Hyosung Advanced Materials offers a variety of employment opportunities, including regular and occasional employment. All applicants have equal opportunities in the recruitment process and are not discriminated against by nationality, age, academic background, gender, or religion. In order to enhance the transparency of the recruitment process, the restrictions on foreign language grades, grades, and application age are removed, and the attached photo of the job application and the description of family matters are deleted. To ensure fair interviews, all interviewers are trained in advance on how to conduct interviews and guidelines for questions. In addition, we are operating a preferential employment policy for the socially vulnerable, such as the national merit and the disabled.

Picture of the Job Fair in Hyosung Vietnam Co., Ltd.
Job Fair in Hyosung Vietnam Co., Ltd.

Program to Support New Entrants Soft-landing

In order to help new employees well-adapt to the organization, we operate an in-house adaptation program that guides through company's core values, organizational systems, and other various systems for new employees from entry-level to experienced and executives level.
In the case of newly scouted executives, we provide guidance on the management status, organizational system, and system through a 1:1 session.
Through the group’s introductory training of new employees, new employees are provided with the basic competencies necessary for company life by improving the understanding of company's philosophy & business, future tasks, products, customers, and markets.
New employees take part in 1:1 on-the-job-training programs for three months upon joining their team and the senior team member selected as a mentor provides practical job training to help new employees adapt quickly to the team.

Picture of the Hyosung Advanced Materials’ winner of Excellent New Employee Award in 2019
Hyosung Advanced Materials’ winner
of Excellent New Employee Award in 2019

Respect for Diversity

Hyosung Advanced Materials, which employs employees of various nationalities in 17 manufacturing sites in 10 countries, recognizes human resources as the company's most important asset.
We do not make discrimination on the basis of nationality, academic background, region, gender, age, religion, disability, political orientation, marital status, etc.
As a global company, we respect the characteristics of each region's culture, strive to recruit local talent and continue to provide training and support by level to help locally recruited employees to grow into managers.
In particular, to strengthen the capabilities of employees in overseas manufacturing subsidiaries, we established training programs to strengthen sales capabilities for new employees in China and Vietnam, and established a strategy to foster top management from local workforce. As a result, about 50% of the managers in China and Vietnam are locally recruited and trained managers. In accordance with the company's Code of Ethics and Guidelines for practice, discrimination against employees is prohibited in all aspects of talent management, including employment, work performance, evaluation, and promotion, and the company provides support to individuals to fully utilize their abilities to generate performance. Hyosung Advanced Materials recognizes the importance of fostering female talent and is also focusing on fostering female managers. Especially in China and Vietnam, the percentage of female managers has exceeded 20%.

Hyosung Vietnam Co., Ltd. with Multiple Nationalities
Hyosung Vietnam Co., Ltd. with Multiple Nationalities
Korean nationality
13%
Other nationalities
87%
Hyosung Advanced Materials’ Ratio
of Employee Nationality

Talent Development System
Pursuing Growth

In addition to job training directly related to work competency, Hyosung Advanced Materials systematically fosters the talent through various education programs such as management philosophy, leadership education for each position, global education, and social/environmental responsibility practice education for all employees.

Hyosung Advanced Materials’ education curriculum - Level education

Management Philosophy (Executives)
Introduction to Executives
Responsible Management
Management Philosophy (Senior Manager, Assistant Senior Manager, Manager, Assistant Manager)
Introduction to Experienced Level
Management Policy and Working Attitude
Hyosung Way / Leadership / Humanities
Management Philosophy (Associate)
Entry Level Introduction
Field Job Introduction
Management Status and Philosophy
Leadership (Executives)
Executives MBA
Summer Seminar
Insight Forum
Leadership (Senior Manager, Assistant Senior Manager)
Leadership / Humanities / Trend
New Team Leader
Insight Forum
Leadership (Manager, Assistant Manager)
Leadership / Humanities / Trend
Leadership (Associate)
Class Leader Training
Job Competency (Manager, Assistant Manager)
Field-Focused Skill-Up Training
Job Competency (Associate)
Field-Focused Skill-Up Training
Entry Level Job and Field OJT

Hyosung Advanced Materials’ education curriculum - General education

Job Competency (Senior Manager, Assistant Senior Manager, Manager, Assistant Manager, Associate)
Common Job: Finance, Accounting, Negotiation, Problem Solving, Communication, Product Knowledge
Specific Job: Sales(Customer/Market/Credit/Stock), Manufacturing(Process/Facility/Quality/Innovation), R&D(Technology/Research/Management/Cost Accounting/Related regulations), IT/System
Social and Environmental Responsibility Activity(Executives, Senior Manager, Assistant Senior Manager, Manager, Assistant Manager, Associate)
Human Right: Preventing Sexual Harassment / Disability Awareness / Preventing workplace and others
Ethics: Hazardous Chemicals / Handling Process / REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals
Safety and Health: Industrial Health and Safety and others
Global (Senior Manager, Assistant Senior Manager, Manager, Assistant Manager, Associate)
Expatriate Training: Divergent Culture / Foreign Language
Training in Headquarter for local employees

Strengthening Job Expertise

Hyosung Advanced Materials continuously and systematically trains employees to acquire the necessary knowledge and skills to strengthen their job performance expertise.
We are developing competency for each position regardless of their job through common job training such as accounting, problem solving, and communication. We also promote trainings in the areas of leadership, job competency, and many others that are suitable for each job position.
In addition, as a materials company, all employees take product knowledge and process training as a common training to cultivate knowledge of the company's products.
Training for each job consists of a variety of training from beginner to expert level. In particular, we provide training to acquire certificates necessary for job performance, such as industrial safety and harmful chemical substance.
In the sales field trainings about market trends, customers, and sales strategies are conducted in the form of regular learning, led by divisions and teams, regardless of class, so that employees can quickly and effectively acquire the latest business trends.
In order to strengthen product quality, we provide training to ensure that the skilled workers who are on-site practitioners such as quality index, work standard, and safety can properly learn necessary skills.


Social and Environmental
Responsibility Training

In order to strengthen corporate social and environmental responsibilities, we have strengthened human rights trainings, such as preventing from bullying in the workplace, and raising awareness for persons with disabilities raising awareness of related fields and proactively responding to them.
In addition, we have strengthened education in various social and environmental fields such as ethics, anti-corruption, fair trade, environment, safety, and information security.
Since 2020, the training target has been expanded from team representatives to all domestic office workers and overseas expatriates. In terms of content, education has been expanded to cover more diverse topics.
We are also expanding training content support for business partners to fulfill their social and environmental responsibilities.

Picture of the Ethics Education
Ethics Education

Support for Growth through Fair Evaluation
and Reward

Hyosung Advanced Materials conducts periodic performance evaluations every year to enhance employee satisfaction and commitment. Differentiated rewards are provided to outstanding performers through performance evaluation with no discrimination in basic salary between men and women. Through clear feedback and coaching, we ensure that employees fully understand the evaluation results and strengthen their future work capabilities based on the feedbacks. Performance evaluation feedback is conducted face-to-face based on performance plans established by individuals at the beginning of the year and agreed with the team leader. In addition to achievements, two-way communication will be conducted on how to perform the work, desired work in the future, and training and support necessary to perform the work. At this time, the employees under evaluating can request a work assignment considering the CDP (Career Development Plan). The items discussed during the evaluation feedback are signed by the appraise and the evaluator before submission. In 2019, the existing evaluation system was supplemented so that individual KPIs can be changed at any time according to the work situation, and the evaluation system was reorganized to receive feedback on the progress of work throughout the year to create the performance of the respondents.

Ratio of Employee Performance Evaluation by Year
Country Year Evaluation Target (person) Evaluation Rate
Korea 2018 1,129 99%
2019 1,004 97%
Vietnam 2018 5,167 93%
2019 5,536 93%
China 2018 1,949 98%
2019 1,799 98%
Ratio of Employee Performance Evaluation by Year

Outcomes

Self-
evaluation
Evaluate the work performed by the appraise directly according to the KPI
Team Leader
Evaluation
Evaluate with reference to the changed appearance after the first performance interview
Executive
Final Evaluation
Evaluation confirmation
Feedback
Feedbacks for business performance and capacity building

Career
Paths

Self-evaluation
Request for future job/training
Team Leader Evaluation ~ Executive Final Evaluation
Review the opinions of the appraisee‘s desired job
Feedback
Feedback and advice on CDP

Providing Various CDP(Career Development Plan)
Opportunities

Hyosung Advanced Materials executes job rotation so that employees can experience various tasks and grow into experts within departments or through transfers between departments. Employees can consult with the evaluator about future jobs and its tasks during regular HR evaluation feedback. In addition, even if the changed job is different from the existing job, it can be carried out in consideration of various situations and proper support is provided to adapt to the new job. And employees can receive a CDP consultation based on job satisfaction with the HR team leader through the HR Consultation Center.

Technical Marketing
“I joined the company as an engineer of responsible for production lines. Later I shifted to the technical team and now I work at the sales team at the headquarters I was hoping for. I am growing as a sales expert through technical marketing that meets customers directly based on the product knowledge accumulated in the factory and delivers the value of our products."
Green Management
“After graduating from university, I joined the HAMC as a process management staff at the factory. But currently, I am working as a green management representative at the head office because I was given the opportunity to manage greenhouse gas and hazardous chemicals based on eco-friendly energy engineering, which I studied in university. There is a great sense of responsibility as the company's frontier contact point for environment, but it is fun because I feel I am growing through leanring.”
Strategic Planning
“I started my career as a researcher in the New Materials Research Team. I wanted to do something different from the previous job, so I applied for a job change as a planning manager who manages the company's business. Because the nature of the materials company, technical knowledge is necessary for work, and cooperation with R&D organizations is also necessary, so my previous job experience is very helpful for present position.”
General Affairs
“I was transferred to the planning management team of the head office from accounting manager in the plant through job counseling, and experienced various tasks for 8 years. Among them, I changed my affiliation to the General Affairs Team to perform the general affairs suited to the job aptitude. Recently, I have been working responsibly for the welfare of employees.”
Personnel Affairs
“After majoring in pedagogy at the Graduate School, I joined the holding company as a new member of the Human Resources Development Center to perform global education planning and execution. After that, I changed my affiliation to the human resources team of the operating company, and am in charge of evaluation, promotion, and rewards. I am delighted to have the opportunity to experience whether the new HR work is suitable for the job aptitude."
Production Managing
“In the past, only employees at a senior manager or higher position was possible to transfer to overseas subsidiaries. However, as overseas production bases have been intensively developed, it is possible for associates and assistant managers to transfer to overseas subsidiaries. I had worked for the Quality Assurance Team at the factory in Korea, and now I am collaborating with local employees to implement global standards in the Vietnam Tire cord Support Office."

Responsible Talent Management

Human Rights Policy and Human Rights Principles

Hyosung Advanced Materials respects the human rights of all stakeholders and includes the Universal Declaration of Human Rights adopted by the United Nations General Assembly, the ten principles of UNGC, core agreements proposed by the International Labor Organization (ILO), and OECD guidelines. And we comply with international standards.

Enhancing Human Rights Awareness

Hyosung Advanced Materials conducts sexual harassment prevention education, disability awareness education, and harassment prevention education for all employees in Korea to strengthen employees' awareness of human rights protection. Vietnam and Quang Nam subsidiaries offer sexual harassment prevention education. In the future, we will strive to strengthen human rights awareness by expanding human rights-related education in overseas regions, including China.

Human Rights Policy

All stakeholders including Hyosung Advanced Materials employees, customers, and local communities have the right to dignity and happiness that can not be transferred as human beings. We promise to grow together with all stakeholders through Hyosung Way, a value system of Hyosung that leads the better life of mankind based on the best technology and management capability. Hyosung Advanced Materials supports the UNGC principles, the OECD Guidelines for Multinational Enterprises, and the labor standards laid down by the ILO, as well as the Universal Declaration of Human Rights adopted at the UN General Assembly. In addition, we promise to comply with the standards of labor rights and working conditions of all the countries in which we operate, as well as our head office in Korea. This commitment is equally applicable to all stakeholders, including employees of Hyosung Advanced Materials Corporation, customers, local communities, and employees of partner companies.

Announced on June 01, 2018
Amended on August 30, 2019

Human Rights Principles

  • Non-discrimination

    One is entitled to have the right and freedom in all fields of political, economic, social and cultural life without unfair discrimination based on race, nationality, gender, language, religion, ethnicity, disability, political opinion, social background, academic background and age.

  • Equal Opportunities and Compensation

    Fair compensation is given according to individual ability and performance under fair working condition, and opportunities for self-development are provided.

  • Freedom of Assembly and Association

    Employees have the right to enjoy freedom of association for assembly without threat of retaliation or intimidation.

  • Safe Working Environment

    Employees have the right to work in a healthy and safe manner in a pleasant working environment.

  • Personal Privacy Protection

    No one can interfere with an employee’s personal information and privacy related to his/her family, housing and communication.

  • Compliance with Working Conditions

    We guarantee working hours determined by the country where our business is operating and comply with the regulations of regular paid leave.

  • Forced or Child Labor Banned

    We observe the minimum age for employment set by the country where our business is operating, and employees are not arrested mentally or physically or forced to work against their free will, such as slavery or human trafficking.

  • Fair Business Practices

    Recognizing a supplier company as a partner in an equal position, Hyosung Advanced Materials does not abuse its superior position and further contributes to improving human rights of supplier companies.

  • Commitment for Local Community Development

    Hyosung Advanced Materials recognizes its responsibility for the development of the local community and actively invests in the community development.

  • Information Transparency

    We provide the required information to shareholders and investors in timely manner and maintain accuracy of accounting data to ensure transparency.

  • Customer Information

    We recognize customer’s information as a valuable asset requesting minimal level of disclosure. For the information that we receive, we take technical and physical measures to protect the customer information.

Announced on June 01, 2018
Amended on August 30, 2019

Handling Employee Suggestions and Grievances

In order to protect the human rights of employees and create a good working environment, we have established communication channels that every stakeholders can make suggestions that are necessary to create a good working environment such as support necessary for work, improvement of work environment, and workplace relations. And they can freely report any discomfort and grievance cases.
Employees can freely present their opinions about the company and their duties, regardless of whether they are online or offline, and anonymously report matters such as corruption or unfair treatment. According to the principle of protection of informants, the confidentiality of the identity and contents is strictly guaranteed and retaliation is prohibited.

Table of the Handling Employee Suggestions and Grievance
Type of Reporting Report Method and Content Respondent Processing Procedure
Intranet
-HR Counseling Center
Receipt of grievances, such as job-related grievances, sexual harassment, embezzlement, and personnel corruption, by email or telephone HR Team Leader Process after consulting the HR team leader
Homepage
-Whistleblowing Center
Receipt of violation of company-related laws, employee corruption, unfair treatment, sexual harassment, etc. Person in charge of the Whistleblowing Center Process after receiving the report, request the related department to be processed or the audit team directly handled
Reporting to Audit Team Audit team
In-house real-name bulletin Submitting a proposal/suggestion/complaint on the blindness board Board operator person in charge Immediately communicates to relevant departments to respond to improvement proposals and informs the reason if improvement is not possible
In-house anonymous bulletin Submitting a suggestion/suggestion/complaint to an anonymous board

Labor-Management Committee

Hyosung Advanced Materials guarantees the legitimate labor union activities of its employees, and employees can join local labor unions and industry labor unions as well as the company-specific labor unions.
Each business site transparently discloses the company's management status to on-site employees through regular business status briefing sessions and shift workers meetings.
Meanwhile, the Labor-Management Committee at each business site holds quarterly regular meetings to discuss welfare, grievances, and health & safety.
Complaints received are managed on a company-wide level whose improvements are continuously checked. In Vietnam and China, over 90% of employees are subject to collective agreements.

Support for Employee Value Creation

Hyosung Advanced Materials conducts various systems and support activities to help employees create performance and value. Work & life balance greatly affects not only the life satisfaction of employees, but also work satisfaction, so we are striving to create a healthy workplace where work-life balancing is realized.

Flexible Working Hours System

We comply with the statutory working hours of 52 hours per week and implement a flexible working hours system to increase work productivity. Employees are free to choose between the selective working-hour system and the flexible working-hour system, and overtime work allowances are paid for work outside the specified working hours. Through the flexible work system, employees are realizing a work balance by appropriately allocating working hours according to each individual's workload.

Systems of Refresh Vacation
and Designated Holidays

We operate a vacation system that allows employees to have time to recharge and increase work immersion. In the ‘Refresh Vacation System', a total of 5 days of annual leave can be used at one time. In addition through the “Designated Holiday System”, long consecutive holidays are assured by the company through bridging weekends and weekday holidays by adding annual paid leave in between.

RPA (Robotic Process Automation) to increase Work Efficiency

For simple tasks, RPA is used to make employees focused on high value-added tasks.
We have begun applying it to repetitive tasks such as notification of industry trends and inventory management at the headquarters and business sites, and we plan to increase the work efficiency of our employees by gradually expanding the scope of RPA application.


A healthy and open organizational culture is an essential element of a good workplace. Hyosung Advanced Materials listens to employees' opinions through employee satisfaction surveys, and raises their will to work through recognition and compensation for their performance. In addition, various communication channels are operated so that all employees can better understand the management philosophy of the top management.
Through transparent and open communication, we actively listen to the voices of our employees and continue to create a good workplace.

Employee Satisfaction Survey

Through regular employee satisfaction surveys, we are striving to create a good company to work for. In order to deeply understand the sense of belonging and trust that employees feel about the company, we invited external experts in the field of organizational management in 2019 to conduct a survey of employee opinions. To understand the current organization and set the direction of organizational innovation to go forward, Group employees were surveyed and 1:1 in-depth interviews were conducted.

Picture of the Award of Hyosung Advanced Materials of the Year in 2019
Award of Hyosung Advanced Materials of the Year in 2019

Recognition and Reward for Performance

Hyosung Advanced Materials inspires employees' willingness to work through recognition and compensation for performance. Each business site presents awards in the name of the plant manager to employees who have contributed to the company's performance, and an company-wide awards ceremony is held every December. This year's Hyosung Advanced Materials Awards presents not only outstanding performers by job category, but also teams that have created results through collaboration, and awards are presented in domestic and overseas sectors. Regarding the creation of outstanding results, it is recommended as a nomination for the proud Hyosung Person of the Year Award at the group level.

Picture of the Presentation of Business Status for Field Workers
Presentation of Business Status for Field Workers

Operation of Internal Communication Channels

On the intranet of the company, employees share business information and workplace news, and operate a in-house board to exchange opinions. Communicators at each business site post the status of the business site with photos, so that employees can freely share on-site news. In addition, the company actively provides feedback on suggestions and proposals posted by executives and employees, providing an active place for interactive communication.

Conversation with Management

The CEO provides a meeting for executives and team leaders to directly discuss and share the company's major performance, issues, and management policies four time a year. At the same time, company-wide communication is promoted through question-and-answer sessions between CEO and employees in order to reinforce transparent management activities.
Business status briefings are held twice a year at each plant for shift workers to share the company's management policy and business performance. Overseas subsidiary heads and expatriates have time to understand management issues and directly communicate with management through leader meetings held twice a year during the Global Consensus Meeting.

Picture of the Leader Meeting for Overseas Subsidiary Heads and Expatriates
Leader Meeting for
Overseas Subsidiary Heads and Expatriates

Family-friendly Management
and Maternity Protection System

Hyosung Advanced Materials operates a variety of systems related to providing a work environment with a balance between work and life to enhance employee engagement and job satisfaction. In addition to Family Day when employees can interact with their families, the maternity protection system relieves the burden of female employees who are pregnant, giving birth, and raising children. We are also contributing to alleviating the burden of raising children of employees through the operation of in-house daycare centers at our major business sites.

Family-friendly Management

Hyosung Advanced Materials is striving to become a company that pursues a happy life through direct communication between employees and their families. We are operating various programs and maternity protection systems for employees and their families. Headquarters and business sites operate Family Day, which invites the children of employees to visit the work environment and enhance understanding of their parents.
In recognition of these activities, we obtained family-friendly certification from the Ministry of Gender Equality and Family in 2018.

Picture of the Family Day
Family Day

Maternity Protection System

We are implementing various maternity protection systems for female employees who are pregnant, giving birth or raising children. We provide 90 days maternity leave, leave for prenatal diagnosis, and reduction of working hours by 2 hours a day during pregnancy. We provide support for vacation and medical expenses even in case of miscarriage or stillbirth. In addition, we are implementing systems such as maternity leave for spouses, family care leave that can be used when the family is sick, and restrictions on night and holiday work for pregnant women.

Childcare Support System

Employees can take parental leave within one year after childbirth, or take advantage of the reduced work hours for child caring, which reduces working hours from 52 hours a week to 15-30 hours.
In addition, we are guaranteed a feeding time of 30 minutes or more twice a day for employees who need nursing, and a nursing room is in operation. Also, we operate daycare centers at workplaces in Mapo and Ulsan to provide quality childcare through daycare centers and support employees to focus on their work.

Picture of the Hyosung Daycare Center
Hyosung Daycare Center

Healthy Workplace

In order to provide a safe and comfortable workplace for its employees, we established a safety & health policy, and provides training continuously to comply with the policy. We also operate safety & health management system which focuses on the safety & health of the workplace and its employees. Each business site at Hyosung Advanced Materials established a safety and health management system based on the safety and health work manual. Moreover, under the management of Safety & Environment Team at each business site, we promote safety and health, practice accident prevention activities, and conduct regular safety checks led by the top management. In addition, we execute regular monitoring, training support and activities to raise the self-safety management capability and safety-related awareness of the employees from partner companies. Not only excellence in Korea, in case of overseas safety management activities, Jiaxing subsidiary was awarded with the Excellent Safety Management Award by the Jiaxing Economic Development Zone in February 2019.

Safety and Health Management System

At the business sites where the possibility of safety accidents always exists, we have established a safety & health management system based on the manual managed by the Safety & Environment Team at each business site, and operate various programs to promote the health of employees.

Report inspection result to the Green Management Committee after regular safety check supervised by plant manager.

Operation of Company-wide Safety Inspection Committee

In order to prevent safety accidents and improve the capability of safety management, we have established the Company-wide Safety Inspection Committee which consist of the heads of the Safety Environment Teams at each business site to conduct regular safety inspection twice per year since 2018.
The issues that are identified from the regular safety inspections at all domestic and overseas business sites are discussed and shared amongst representatives, and they are finally reported to the CEO.
Then, we take appropriate actions for each case to improve the safety management quality by sharing the best practices across our business sites.
In addition, we hold a meeting with representatives of safety and health from suppliers to identify major safety and health issues based on the importance and urgency, and discuss solutions. The important issues are shared with the Safety Inspection Committee.

Picture of the Safety Inspection Committee in first half of 2020
Safety Inspection Committee in first half of 2020

Executive-led Company-wide Safety and Health Inspection

HAMC conducts company-wide workplace safety and health inspections under the supervision of PU Presidents and Plant Managers in order to preemptively cope with workplace accidents that may occur in the production lines.
Plant managers, department managers and supervisors carry out safety inspections for key assets within plants, and the status of response in the event of an accident. Also, staffs of the Safety Environment Team and members of the Safety and Health Committee from labor union also participate in the inspection to enhance effectiveness. After the inspection, identified issues and areas for improvements are reported to the CEO and Green Management Committee.
We also check the employees’ status of health during certain season such as the summer heat wave. As such, we actively encourage our employees to be aware of environmental safety, fire awareness, and health care so that they make efforts to prevent accidents and disasters.

Picture of the Safety and Health Inspection at Ulsan Plant
Safety and Health Inspection at Ulsan Plant

Industrial Safety & Health Committee

HAMC continuously keeps track of safety and health issues that require decision-making through regular meetings of the Industrial Safety and Health Committee between labor and management. In particular, by operating the working-level safety and health committee between hourly workers and management to resolve related complaints at the working site in a timely manner, we are building trust between two sides and creating a safe workplace. In addition, we conduct regular labor-management joint inspection involving not only our employees but also supplier companies. In addition, we continue to invest in safety facilities and provide training and education to promote safety awareness.


Implementation of Continuous Safety Training

HAMC has established a safe workplace autonomically by improving employees’ awareness of safety. In addition to safety training, we are conducting various activities such as campaigns and improvement activities to prevent serious disasters preemptively through activities to spread safety culture. In accordance with the annual safety and health training plan, we provide regular safety and health training to all employees at each business site once a month. We also provide additional safety training to the supervisors as well as other necessary trainings such as cardiopulmonary resuscitation and hazardous chemicals trainings to employees working in the respective field. Employees of our suppliers especially those handling hazardous substances receive safety trainings as well.

Picture of the Safety Campaign at Ulsan Plant
Safety Campaign at Ulsan Plant

Safety and Health Management Activities by Department

Health and safety management activities are carried out by all departments, not by designated department alone, for the spread of safety culture in the workplace. In cooperation with the Safety Environment Team, each operational department finds risk factors through self-control safety inspection and carries out improvement activities after selecting a safety and health inspection theme that is suitable for its condition and characteristics. In addition, when a safety accident occurs, the head of the corresponding department immediately reports the details of the accident in accordance with the manual, and the plant manager establishes fundamental safety measure. Furthermore, we prevent similar accidents by sharing details and safety measure about the accident with other plants and business sites.


Activities to Secure Safety of Employees

Based on the safety management regulations, HAMC provides safety equipment to all employees including suppliers regardless of their affiliation on production and construction activities, and are required to wear them. We guide about mandatory wearing areas where they require protective gears such as safety helmets, gas masks, dustproof masks, earplugs, protective goggles, safety glasses, and heat-resisting gloves are required to wear by each process. In case of violation of the regulations, we give warnings to the violators and request improvement measures from the violator’s head of the department, and if they violate more than two times, we refer them to the disciplinary committee of the workplace.

Picture of the Wear Protective Helmet
Wear Protective Helmet

Activities of Hazardous Chemical Substances Management

HAMC conducts overall inspection on environmental and safety including facilities of hazardous chemical substances by designating an inspection day from each department and suppliers every week. In addition, we provide Material Safety Data Sheet(MSDS) training, which includes information on the hazard and risk of chemicals, to the managers working in the chemical handling department in advance. The training has been provided to the suppliers as well. As of 2019, a total of 1,001 workers have completed training on hazardous chemical workers at the Ulsan Plant. In case of loading chemical substances in the business site, staff members of the Safety & Environment Team, Production Team, and Quality Assurance Team are present to inspect the entire process from parking and stopping of chemical vehicles to connection and injection of piping for unloading materials.

Operation of Employees Health Promotion Program

HAMC conducts various activities to promote the health of our employees and the suppliers. In particular, we provide trainings on job-related stress, musculoskeletal disease prevention, hearing preservation, brain cardiovascular disease prevention, and operate health fund consisting of obesity, non-smoking, and musculoskeletal, and support improvement of health care facilities. To this end, Ulsan Plant was selected as “The Best Workplace for Promoting Workers’ Health” in 2018 for voluntary activities to promote workers’ health.

Picture of the selected as “The Best Workplace for Promoting Workers’ Health” in 2018
Ulsan Plant was selected as “The best Workplace for Promoting Workers’ Health” in 2018
Table of the Employees Health Promotion Program
Musculoskeletal Disease Prevention Program
  • Investigate 14 cases of on-site hazards
  • Test on musculoskeletal disease and guide how to exercise
  • Conduct health counseling with musculoskeletal disease potential patient and guide how to exercise
  • Musculoskeletal disease prevention program result :
    - Number of Participants : 799 total (Including employees from the suppliers)
    - Pain Reduction : 63%, Satisfaction : 84%, Re-participation : 77%
Obesity, Hearing Impairment, Stress Management
  • Guide on how to release job-related stress through employees’ health care center and fitness center
  • Conduct hearing reservation program and follow-up examination on patient with noise deafness and observer.
  • Connect with health examination center to receive counselling on health regarding job when needed
  • Conduct in-house follow-up tests and consult with doctors
  • Guide stop smoking program in public health center
Health Fund Program
  • Operate health fund for following employees: Those who want to enhance their muscle, those who are have obesity BMI 25 or higher, Smoker.
    Program Result : Achieved 36% of success rate by having 21 out of 59 participants succeeded
    (Obesity 11/32, Smoker 10/17, Musculoskeletal 0/10)

Operation of Health Care Facility

HAMC operates health promotion rooms, health care rooms, and exercise facilities at the workplace on a regular basis for employees’ health care. We improve and expand facilities for the convenience of all employees including suppliers.

Picture of the Health Promotion Room Equipped with Musculoskeletal Exercise Equipment
Health Promotion Room Equipped
with Musculoskeletal Exercise Equipment
Table of the Operation of Health Care Facility
Musculoskeletal Disease Prevention Program
  • Possess various kinds of exercise equipment such as massage, paraffin for finger joint pain, and pilates equipment
  • Conduct rehabilitation program for those who returned from industrial accidents due to musculoskeletal disorders
  • Facilities Improvement: Support for installing bars for shoulder and waist relaxation, and support for installing footrests for workers who suffer from shoulder pain when packing due to small heights.

HAMC Human Resource Management Performance

  • Rate of Female Employees8.6 →10.2%
  • Returning Rate after Parental Leave100%
  • Completion Hours for Safety Training7,881 hours
  • Training Hours per Person39.9 hours
  • Health Examination Rate of Employees97%
  • Accident Rate of Employees2.6%

Domestic standards in 2019

Risk Management

Hyosung Advanced Materials defines and manages potential uncertainties in the market as well as internal and external risks and opportunities within its risk management system. We established a risk prevention system that enables HAMC to tackle risks preemptively by drawing key risks in accordance with likelihood and impact of risk, in financial, business continuity and management areas. In particular, the Risk Management Committee(RMC), which is established under the direct management of the CEO, consists of the Head of corporate strategy(CSO), the Head of corporate finance(CFO), and the Head of corporate administration(CAO). In the event of an enterprise-wide risk situation, the RMC supports, prepares and promptly executes countermeasures with key executives and team leaders in charge of the relevant issues enabling effective risk management. In addition, risk prevention planning and activities are regularly checked and monitored, and its results are reported to the Sustainability Steering Committee.

  • Financial Risk

    Financial Risk

    Market risk and credit risk associated with financial factors such as liquidity, stock price and exchange rate fluctuation

    Current Management & Preventions Activities

    • Risk assessment, analysis and hedging through finance & trade finance specialists
    • Systematic risk management activities based on policy authorized by the Management Committee of the BOD
  • Risk to Business Continuation

    Supply Chain Risk

    Risk of delay in product delivery due to raw materials supply chain failure and/or interrupted production continuity

    Current Management & Prevention Activities

    • Periodic evaluation and audit of all major materials suppliers’ quality and environment based on international standards such as IATF16949 and ISO14001
    • Establishment and regular training of an emergency response system/protocol and training in accordance with the scenario of raw material supply chain failure to enhance customer responsiveness
    • Enhance responsiveness by defining emergency supply situations for final products, establishing emergency response system and training in accordance with the scenario of emergency supply situations

    Disaster and Safety Risk

    Risk of disasters (e.g. earthquake, fire) and safety accidents in the workplace

    Current Management & Prevention Activities

    • Establishment of emergency response organization for disasters and safety accidents, preparation of manuals including response and recovery measures for each accident scenario
    • Joint and independent training with public organizations covering accident scenarios involving fires and explosion on a regular basis
    • Yearly education of accident case studies and hazardous substances handling training to all plant workers
    • Regular safety patrol checks in the plant by the Safety & Environment Team of each plant, a specialized team designated for environment and safety issues

    Environment risk

    Risk of legal sanctions or penalties due to inappropriate response to environmental regulations related to GHGs and hazardous substances

    Current Management & Prevention Activities

    • Environmental risk specialized team operation
    • Real-time monitoring and analysis by GHGs emission system
    • Hazardous chemicals treatment through National Industrial Waste Discharge System and reporting the use of hazardous chemicals to the Ministry of Environment in accordance with Environmental Information Publication System
  • Management Risk

    Security Risk

    Risk of cyber terrorism or information loss due to data leakage

    Current Management & Prevention Activities

    • Establishment of corporate-wide security policy and operating standards and monitoring/management by a designated security organization
    • Enterprise-level knowledge management through Enterprise Contents Management(ECM)
    • Monitoring of documention – full monoitor from creation to demolition including modification and sharing through the introduction of secured multifunction printers, ECM, and secured-USBs
    • Regular training of ‘The 10 Principles of Information Security’ and ‘Corporate Security Guidelines’ as well as additional IT security training at least once a month

    Legal and Ethical risk

    Risk of lawsuits or contracts which may adversely affect the business
    Ethical risks which may arise in business such as unfair trade practices or corruption

    Current Management & Prevention Activities

    • Legal risk prevention by compliance with corporate’s contract screening policy and use of standard contract form
    • Practical training of acceptances and guarantees in foreign exchange practices, trade contract management and patents
    • Status of contract processing and lawsuit cases are regularly monitored and shared to raise awareness of legal risks
    • In addition to the ethical management pledge that all employees are obliged to sign and abide by, annual training of Improper Solicitation and Graft Act, Subcontracting Act, Fair Trade Act and practical cases of ethical management are carried out

    Reputation risk

    Risk of damaged corporate image from misinformation or negative communication

    Current Management & Prevention Activities

    • Training for all newly employed and promoted employees as well as team leaders to prevent corporate image damage caused by wrong media response, misinformation and negative communication.
    • Establishment and training of behavioral principles and communication processes for PR personals
    • Case studies education to enhance understanding of PR risk

    General Management Risk

    Operational risk caused by personnel or system errors

    Current Management & Prevention Activities

    • By using ERP (Enterprise Resource Planning) system, entire business processes including production, logistics, finance, accounting, sales, purchases, and inventory are integrated and managed efficiently
    • Systematic VOC(Voice of Customers) management and customer satisfaction enhancement through the application of the C-cube system

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