Future-oriented corporation Kukdong Jeyen Sustainability Report … JEYEN Sustainability...

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Future-oriented corporation Kukdong Jeyen

Sustainability Report 2019

Kukdong Jeyen Co., Ltd. –Disclosure on Sustainable Management Performance

Published Date: September 2019

Corporation: Kukdong Jeyen Co., Ltd.

Contents Toward Sustainability Business

Message From CEO

Company Introduction

1. Company Introduction

2. Corporate Sustainability Management Activities

3. Corporate Sustainable Management Performance

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Kukdong Jeyen Co., Ltd. has published its very first sustainability report.

With this report, the company hopes to review its economic, social, and environmental activities,

and evaluate its performance in terms of sustainable management to make sure it can create a stronger foundation for

sustainable management moving forward.

Kukdong Jeyen Co., Ltd. promises to actively communicate with all stakeholders with a vested interest in the success

of the company, and execute, manage its activities ethically and honestly.

Report Overview

This report is the first of its kind published by Kukdong Jeyen Co., Ltd. It complies with key guidelines on sustainable management, including the GRI standard (an international guideline on sustainable management), and ISO 26000 (an international standard on social responsibility). In particular, this report features performance indicators for Kukdong Jeyen Co., Ltd. pertaining to each indicator recommended by GRI.

① Reporting Period: July 2018 ~ June 2019

② Report Published Date: September 01 2019

③ Reporting Cycle: 1 year

④ This report complies with core provisions stipulated in the GRI Standard guidelines

⑤ CSR Report-related Inquiries: Homepage: www.jeyen.com / E-mail: [email protected] / Department: Support Division

Toward Sustainability Business

Message From CEO

September 01 2019

Kukdong Jeyen Co., Ltd.

Park, Jae Yoon

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§ Kukdong Jeyen Co., Ltd. was established in 1973 with aspirations to “contribute

to the society with top-quality products and services.” Today, the company has become

a global leader in auto-chemicals and fine chemistry that continues to ensure stability

and economic feasibility of automobiles and industrial machinery.

• Kukdong Jeyen Co., Ltd. understands the importance of spreading awareness of the fact

that the economic actions of a corporation have a dynamic impact on the society and

environment that surrounds it, and the company is fully aware of its responsibility to take

care of those economic, social, and environmental consequences stemming from its

corporate activities. In that vein, Kukdong Jeyen Co., Ltd., as a company, continues to do

its absolute best as a company to become a corporation trusted by the government, the

society, clients, and all other stakeholders.

• Inspired by its aspirations to become a trusted corporation, Kukdong Jeyen Co., Ltd.

published its very first sustainability report detailing all of its activities throughout 2018

in strict compliance with principles and core values stipulated in the GRI Standard and

ISO 26000, an international standard on corporate social responsibility.

Kukdong Jeyen Co., Ltd. hopes to use this report as an opportunity to review its activities,

and behave more responsibly as a company by communicating continuously with various

stakeholders.

01.


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• Company : Kukdong Jeyen Co., Ltd.

• Established Date : May 1973

• C E O : Park, Jae Yoon

• Business Category : Manufacturing

• Address : 286, Pyeongtaekhang-ro, Poseung-eup, Pyeongtaek-si, Gyeonggi-do

• Business Areas : Fine chemistry products e.g. anti-freeze, brake fluids, washer fluids,

heat transfer fluids, genuine A/S (repair and replacement) parts,

engine oils, aqueous urea solutions, etc.

• Places of Business : Domestic – Pyeongtaek, Seoul, Ulsan (Eonyang, Onsan), Busan, etc.

Global - U.S.A., China, India, Slovakia, Turkey

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Best quality to satisfy clients!

Kukdong Jeyen Co., Ltd. is ready

to usher in a new era.

The company continues to lead the

world with its eco-friendly cutting-

edge technology.

Best quality

Moving forward,

Kukdong Jeyen Co., Ltd. hopes to set

the standard for the global automobiles

industry and fine chemicals industry!

A new leap forward as a global leader!

Eco-friendly cutting-edge technology Global leader

Vision

History

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2010s

2000s

1970s~

1990s

2000s2017 Completed construction for a new factory in

India (expected in September)2016 Completed construction and acquired

approval for Factory 3 (Onsan-eup, Gyeongsangnam-do)

2015 Established a corporation in Turkey (Izmit)Completed construction and acquired approval for a factory in the USA (Alabama)

2014 Completed construction and acquired approval for Factory 2 (Eonyang-eup, Gyeongsangnam-do)Completed and acquired approval for a new factory in China (Shanghai)

2013 Began supply to AOS (Turkey)Established an overseas corporation in the USA (Alabama)Began supply to HMB (Brazil)Designated as a supplier for Hyundai Oilbank

2012 Established a corporation for the KukdongCentral Research Center

2011 Began supply to MMR (Russia)2008 Established an overseas corporation in India

(Chennai, India)Established an overseas corporation in Europe (Slovakia)

2007 Established an overseas corporation in China (Shanghai, China)Obtained the ISO/TS 16949 Certification

2006 Established subsidiary company NTG-Korea (Chilseo Local Industrial Complex, Haman-gun, Gyeongsangnam-do)

2004 Completed and relocated to the Factory 1 in Pyeongtaek

1999 Obtained ISO 9001 Certification1997 Designated as an antifreeze supplier for

Ssangyong Motor1996 Designated as an antifreeze, brake fluid, washer fluid

supplier for Samsung Motors (currently RenaultSamsung Motors)

1992 Initiated business with Samsung Total (currently Hanwha Total) (MEG, DEG, etc.)

1982 Began supply of antifreeze and brake fluid to Hyundai Motor Company

1985 Passed the Federal Motor Vehicle Safety Standard (FMVSS No.116)

1976 Designated as an antifreeze and brake fluid supplierfor Kia Industries, Kia Service, Asia Motors

1975 Designated as an antifreeze and brake fluid supplier for Shinjin Motor Company (currently GM Korea Corporation)

1973 Established the company as Kukdong Jeyen Industry (Busan)

Certificate

<IATF 16949-2016> <KS Certificate>

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Certificate

<Inno-Biz Certificate> <AEO Certificate>

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Anti-freeze - Researched and developed products in collaboration with Hyundai/Kia Motors

- Optimized anti-freeze performance to protect polymeric fuel cell systems

- Completed testing of anti-freeze products, became the first company in Korea to

mass-produce and supply anti-freeze

- Produces heat transfer fluids with semi-infinite service life

- Optimizes heat exchange fluids to protect heat exchangers by boosting

the anti-corrosive performance of heat transfer fluids

- Produces anti-rust agents for engines and engine mount fluids

Heat transfer fluids

Engine anti-rust agents

Brake fluids - Produces products with outstanding safety performance, approved under the

US Federal Motor Vehicle Safety Standards (FMVSS No. 116)

- Supplies brake fluids to Hyundai Mobis, GM Korea, Renault-Samsung, etc.

Washer fluids- Uses high-performance surfactants in washer fluids to help remove any foreign substances/oil film

on the front windshield of a vehicle, and secure a clearer vision ahead

- Produces washer fluids that do not damage the coating, rubberized parts, plastic parts, paint, etc.

of vehicles, and products with outstanding rest-prevention/anti-corrosion performance

- Produces Selective Catalytic Reduction (SCR) products for automobiles and industrial applications (vessels), and produces components for new vehicles, etc.

Aqueous urea solutions

Product Line

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CHUNIL CARGO TRANSPORT

CMF C&S CHUNIL I&C

CHUNILCARGO SERVICE

NTG KOREA

KUKDONG R&D CENTER

SCM, Trucking & Railing Services, Container Logistics,Container management & Transportation,

International Logistics

Automotive & Industrial Lubricants

R&D for Automotive & Industrial Fine Chemicals

Automotive & Industrial Chemicals

KUKDONG JEYEN

Automotive Repair, Maintenance Services

ASP, WEB, SI/Solution Business

Logistics of Automotive Parts, SCM

Local & International

Transportation Series for RSM

(Renault Samsung Motors)

Company Structure

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Support Division

Sales Division

Quality Assurance Division

Pyeongtaek Plant

Eonyang Plant

Human Resources/ General Affairs Support Team

Financial Support Team

Management Support Team

DomesticSales Department

InternationalBusiness Team

Overseas Corporation

QualityAssurance Team

OverseasQuality Team

Production Department

ProductionManagement Team

General Affairs and Finance Team

Operation Support Team

Operation Support Team

Quality Team

Production Department

Onsan Plant

Management Team

ProductionQuality Team

CEO Park, Jae Yoon

Board of directors

COMPANY ORGANIZATION

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Kukdong Jeyen Co., Ltd. Current Transaction Status

Domestic

Total of 4 facilities

Production Plant

Establishments(As of 2018)

Overseas

Total of 5 facilities

Corporate

Establishments(As of 2018)

Affiliates - Korea

Total 150

companies(As of 2018)

Domestic M/S

65%(Annual Average)

Affiliates -

Overseas

14 countries

30 companies (As of 2018)

Overseas M/S

5%(Annual Average)

Domestic Business

SEOUL OFFICE (Pangyo)

HQ/PLANT 1 (Pyeongtaek)

PLANT 2 (Eonyang)

PLANT 3/4(Onsan, Ulsan)

Kukdong Branch

Central Branch

South Branch

KUKDONG R&D CENTER(Busan)

NTG KOREA (Haman)

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International Business

Location: Montgomery, AlabamaClients: HMMA, KMMGProducts: Anti-freeze,

Brake fluids, ect.

Location: Trnava, SlovakiaClients: HMMC, KMS, MPE,

Slovakia MobisProducts: Anti-freeze,

Brake fluids, Washer fluids, ect.

Location: Chennai, IndiaClients: HMIProducts: Anti-freeze,

Brake fluids, ect.

Location: Shanghai, ChinaClients: Shanghai Mobis, Shanghai-

Automobile,동품 율룽Products: Anti-freeze,


Location: Izmit, TurkeyClients: HAOSProducts: Anti-freeze,


KUKDONG USA

SHANGHAI KUKDONG

KUKDONG INDIA

KUKDONG EURO

KUKDONG TURKEY

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Plant (Partner)

Partners

Client: HMMR, AvtotorProduct: Anti-freeze, Brake fluids,

Washer fluids, etc.

Global Partners

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MOSCOW, RUSSIA

TOLUCA, MEXICOClient: KMMProduct: Anti-freeze, Brake fluids,

Washer fluids, etc.

SAO PAULO, BRAZILClient: KMBProduct: Anti-freeze, Brake fluids,

etc.

GEBZE, TURKYClient: HAOSProduct: Anti-freeze, etc.

AMIRKOLA, IRANClient: Bahman GroupProduct: Anti-freeze, etc.

ULAN BATOR, MONGOLIA

TOKYO/OSAKA, JAPAN

GAOXIONG, TAIWAN

MANILA, PHILIPPINES

HAIPHONG, VIETNAM

Our Customers & Approvals (OEM)

東風 YULONBAHMAN GROUP

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Our Customers & Approvals (OES, A/S)

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Domestic Market Share

60% 100% 15%100% 100%

100%

0%50%

* Domestic Market Share by Automobile makers

100%

100%

60% 100% 40%100% 0%

Anti-freeze

70%

Brake fluids

80%

Washer fluids

55%

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02.

Corporate Sustainability Management Activities

by Kukdong Jeyen Co., Ltd.

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Corporate Sustainable Management Philosophy and Ethical Management Ideology

Kukdong Jeyen Co., Ltd. aspires to become a corporation that actively drives the

industry to affect change, rather than a company that passively complies with

changes made by others. The company wants to develop into a global leader in its

core business fields by creating and innovating new products and services.

Kukdong Jeyen Co., Ltd. changes the perception of consumers, corporations, and

the government pertaining to the fine chemistry industry, and it continues its

ascent as a leading player in eco-friendly initiatives designed based on low-carbon

and green growth policies set by the government.

Kukdong Jeyen Co., Ltd. boasts an impressive lineup of some of the best experts in

various fields. The company reflects the values and creative ideas of its employees

into its business operations, to make sure it can propose a vision that inspires all

employees to dream and have hope for the future.

A company thataffects change

A company thatvalues the environment

A company thatvalues people

Four Key StrategiesClient -

High Quality

Society -

Good Citizenship

Employees & Partners -

Good Relationship

Environment -Good for

Environment

A company thinking of

change, the environment and people

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4 Key Strategies Strategic Direction Key Activities

Clients- Improve the safety performance of products

- Generate growth opportunities through

sustainable

research and innovation

- Establish a roadmap to develop sustainable

technology

- Continue investment and support to innovate

research center capacities

Environment- Minimize environmental impact throughout the

supply chain to improve the efficiency of

environmental management (improve eco-

efficiency)

- Establish environment-related guidelines

pertaining to affiliated companies within the

supply chain, and train personnel with relevant

guidelines

Employees

and Partners

- Develop human resources, and ensure optimal

work-life balance

- Establish fair, long-term partnerships

with business partners

- Develop manuals featuring instructions on

establishing sustainable partnerships

- Offer support and programs to improve work-

related competencies and provide training to

personnel

Society

- Reinforce social responsibility as a corporate

citizen

of the society through strategic Corporate Social

Responsibility activities

- Host various meetings

- Engage in local volunteer work and donate

Four Key Strategic Directions and Key Activities of Kukdong Jeyen Co., Ltd.

03.

Corporate Sustainable Management Performance

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Financial Performance: Annual Sales

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692 704 714780

915

0

100

200

300

400

500

600

700

800

900

1000

2014년 2015년 2016년 2017년 2018년

Unit: One hundred million (KRW)

2014 2015 2016 2017 2018

Financial Performance: Outcome and Distribution

• Statement of financial position Unit : One Million (KRW)

Items / Year 2018 2017 2016

Assets 69,653 67,315 64,858

Liabilities 51,563 50,317 48,488

Capital 18,089 16,998 16,370

Liabilities and Capital 69,653 67,315 64,858

• Income Statement

Items / Year 2018 2017 2016

Gross Sales 91,446 78,035 71,412

Wage and Welfare 7,969 7,770 6,366

Business Profits 1,867 1,709 4,055

Net Profit during the term

1,180 1,244 3,152

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Unit : One Million (KRW)

Stakeholders

Of Kukdong Jeyen

Employees

Partners

NGO / Local

Community

Government/ Local

Organization

ClientsStock

holders

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Participation of Stakeholders• Kukdong Jeyen Co., Ltd. invites stakeholders to participate in its affairs to find new ways that can help the company

can overcome challenges and identify new opportunities.

• This report specifies how Kukdong Jeyen Co., Ltd. Communicates with employees, affiliated companies, clients, shareholders, and the local community.

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Stakeholder Issues Channel

Clients - Establish a customer-first business philosophy and reinforce the compliance of customer service standards

- Customer satisfaction surveys

Employees - Embed a performance-based culture to raise the collective capacity of all employees

- Establish a productive labor-management culture based on a symbiotic labor-management dynamic

- Workshops, events, training - Feedback from internal customers

Local Community

- Fulfill corporate social responsibility to reinforce public image - Actively exchange with civic community groups and bolsterstrategic promotional activities

- Volunteer work in the local community

Government& Local

Organization

- Generate synergy by establishing a mutually cooperative system with relevant organizations

- Meetings, conferences

Partners- Establish a partnership through trust and cooperation - Raise satisfaction and establish transparent transaction processes by innovating sourcing operations

- Meetings with affiliated companies - Create and manage a conference to ensure a win-win outcome for the company and society

Kukdong Jeyen Co., Ltd. always does its absolute best to establish a trustful relationship with stakeholders, create new

economic, environmental, and social values through various activities and continued communication.

Participation of Stakeholders

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Vision and Objectives for Social Contribution

Leveraging its brand as a corporation that contributes to our society, Kukdong Jeyen Co., Ltd. creates

networks with local communities to help marginalized people in our society exercise their economic,

social, and cultural rights, and it engages in a wide variety of activities that can help the company

contribute locally on multiple levels.

NEXTA company that thinks

about the next

generation

VISIONA company that

creates

new visions for the

society

ETHICA company that uses

its capacities

to spread the culture

of sharing

CSR vision-related objectives of Kukdong Jeyen Co., Ltd. aspires to achieve with responsible business activities

CSR Performance- Contributions to Customers/Local Communities

Responsibility

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Year Details Amount (KRW)

2018Special Olympics Korea (Seoul)Music in PyeongChang

2,000,00010,000,000

2017Association of Welfare for the DisabledSpecial Olympics Korea (Seoul)

20,000,0002,000,000

2016Special Olympics Korea (Seoul)School Development Fund (Sunhwa Girls Middle School, Busan Computer Science High School)

2,000,00010,000,000

2015A better world, a kinder dayIndustrial Bank of Korea, Youth Hope Fund

500,00010,000,000

Though modest, Kukdong Jeyen Co., Ltd. extends it support each year to help local communities grow and

make a warmer, better world to live in. Moving forward, the company promises to keep a keen eye out on

organizations and events with great goals it can participate and play an active part in.

Donations by Year

CSR Performance- Contributions to Customers/Local Communities

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Improvements to the Working Environment for Employees

<Gender equality training>

• Kukdong Jeyen Co., Ltd. does not violate the rights of not only its staff, but also its stakeholders,

including affiliated companies, clients, etc. The company also monitors all customer complaints to prevent

the breach of any rights to the extent possible.

• Kukdong Jeyen Co., Ltd. has carried out training sessions to help prevent sexual harassment, and improve

awareness on the disabled. With these initiatives, the company is doing its best to prevent any rights

from being violated over the course of working at the company.

<Annual out-sourced training plan for 2019 >

• Kukdong Jeyen Co., Ltd. in-sourced/out-sourced training plan

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<Completion Certificate>

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• Execute in-sourced training

- Frequency: 4 per year

- Venue: Corporate headquarters

in Pyeongtaek, and other branch offices

- Instructor: Out-sourced instructor and

Kukdong Jeyen Co., Ltd. executives

- Target: All employees / task force activities

- Training Time: 1 hour

<Training materials and training report>

• Execute in-sourced training

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<Training materials and training report on improving the awareness regarding the disabled>

• Execute training to improve

awareness on the disabled

- Date: Oct. 23, 2018 (Once a year)


in Pyeongtaek

- Instructor: Bang, Young ho

- Target : All employees

- Training Time: 1 hour

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• Employee Recruitment

Kukdong Jeyen Co., Ltd. strives to alleviate the polarization of its workforce by reducing number of non-regular

employees. The company also continues to pull resources in order to adopt an open recruiting process that

aims to bring more social equality, and one that improves fairness during the recruiting process

• Salary and Welfare

The remuneration of all employees at Kukdong Jeyen Co., Ltd. is based on a performance-driven annual salary

system. In terms of welfare and benefits, employees are entitled to a variety of systems in addition to the four

major statutory social insurances in Korea. With these benefits, the company hopes to meet expectations from

its workforce with regards to welfare. Moving forward, Kukdong Jeyen Co., Ltd. will continue to collate feedback

from its employee base to further improve and upgrade its welfare package.

• Personnel Evaluation

Kukdong Jeyen Co., Ltd. prohibits discrimination on grounds of academic background, age, or gender pursuant

to its human resource regulations and code of ethics. To monitor potential discriminatory actions, the company

uses its employee ombudsman system, auditing system, and whistle blower system, etc.

When it discovers an incident, Kukdong Jeyen Co., Ltd. suspends the offender and reflects his/her

transgressions during the personnel performance evaluation process.

Employees - Employment and Job Security

• Occupational Health and Safety Meeting



in Pyeongtaek

- Training time: 1.5 hour

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<Hosting of Occupational Health and Safety Meetings>

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• Details of Occupational Health and Safety-related Activities

<Daily On-site Safety Patrols> <Occupational Health and Safety Meeting: practical sessions – CPR>

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• Labor-management Dynamics

Kukdong Jeyen Co., Ltd. continues to sustain a mutually cooperative labor-management relationship. Thanks to

the collaborative efforts of the company and its employees, Kukdong Jeyen Co., Ltd. has been able to manage

its operations in a stable manner. Labor and management have established a collaborative partnership that

facilitates mutual growth, and the company is doing its utmost to make sure the labor-management

relationship progresses in a stable and constructive direction.

The company has a regulation that stipulates the scope of work responsibilities prescribed for different

positions to prevent staff with seniority or staff at a superior position/rank from allocating tasks unfairly to

particular people.

To create a safe working environment, Kukdong Jeyen Co., Ltd. carries out a number of different safety training

programs, and it hosts workshops, events, etc., to establish a fun environment to work in.

Employees - Labor-Management Activities

Spring Retreat

- Frequency: 1 per year (April each year)

- Objective: Offer employees an opportunity to find ways to establish a win-win environment,

to cooperate, and to grow together

- Details: Change in employee perception towards “safety and quality,” and applying the change

in perception to improve quality


- Workshop, held once per year

- Employee reward system

Commendations for outstanding employees,

outstanding work groups

Rewards for long-term employees

Partners-Supply Chain Management

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Invitational “Quality Day” event for affiliated companies


- Objective: Offer affiliated companies an opportunity to find ways

to establish a win-win environment, to cooperate, and to grow together

with Kukdong Jeyen Co., Ltd.

- Details: Change in employee perception towards “safety and quality,” and applying

the change in perception to improve quality

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Customers - Health and safety of products/customer satisfaction-related activities

• Customer satisfaction initiatives, customer complaint processing and improvements

Each business division has a customer complaints TFT to reduce the frequency and severity of customer

complaints. Kukdong Jeyen Co., Ltd. monitors customer feedback regularly to acknowledge complaints

and devise response measures immediately. The company actively attempts to improve its operations to

reduce and prevent customer complaints.

• Advanced inspection of new products

Kukdong Jeyen Co., Ltd. inspects the quality and labels of its products in compliance with its advanced

inspection process for new products to make sure every product is safe.

By doing so, the company provides customers with accurate information, which subsequently helps

prevent customer complaints.

• Management of hazardous materials

Kukdong Jeyen Co., Ltd. monitors products listed on hazardous materials lists prescribed under relevant

regulations and in-house regulations. To verify safety, the company uses a third-party testing

organization that specializes in hazardous materials. Once it receives any testing results, Kukdong Jeyen

Co., Ltd. responds swiftly and discloses the relevant information.

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• Environmental management implementation strategy and direction for Kukdong Jeyen Co., Ltd.

Kukdong Jeyen Co., Ltd. recognizes that environmental management is a social responsibility a corporation

must take seriously. Rather than implementing an environmental management system that does the bare

minimum to comply with relevant regulations, the company strives to respond actively towards environment

and climate change in a more comprehensive and systematic way. As part of its commitment to the

environment, Kukdong Jeyen Co., Ltd. has improved its internal environmental management system to

reinforce the discharging of pollutants. The company has also been responding aggressively against climate

change, which is aligned with the government’s low-carbon and green growth policy, to take the next step as

a truly eco-friendly corporation.

• Establishment of an environmental management system

Kukdong Jeyen Co., Ltd. monitors energy-saving measures and environment-related issues. It is also laying the

groundwork to create an eco-friendly corporate management structure at Kukdong Jeyen Co., Ltd. Moreover,

the company has appointed an exclusive “green management” officer to manage environmental factors at each

place of business, and to reduce the company’s emission of greenhouse gases. Overall, Kukdong Jeyen Co.,

Ltd. is pulling all of its resources to manage its performance related to the environment.

Environmentally Responsible Management -Implementation Strategy

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Supervising Department

Executing Department

Work Responsibilities Remarks

Management

Support

Division

Management

Support

Division

-Overall management and supervision of “green management” activities

- Configuration of resource/energy reduction targets

-Establishment of environment-related policies and mid/long-term green management plans

- Communication of green management issues, and maintenance/management of monitoring systems

-Execution of eco-friendly verification and management-related tasks

- Establishment of “green procurement” plans

- Monitoring of resource/energy consumption data

-Execution of initiatives to reduce resource and energy consumption

Sales Division-Handling of customer complaints regarding environmental

issues

-Execution of initiatives to reduce resource and energy consumption

Environmentally Responsible Management -Implementation Process

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• Initiatives to reduce energy consumption

Kukdong Jeyen Co., Ltd. leads the way in reducing energy consumption with a number of different initiatives,

including a campaign to turn all office lights off during lunch hours and after work. Also, the company records

any fluctuations to its energy consumption in accordance with the government’s “rational energy consumption”

policy. Kukdong Jeyen Co., Ltd. is trying to reduce the energy consumption of each building by closing windows

when heaters/air conditioners are on, turning unnecessary lights off, cutting power or unplugging idle appliances,

turning computers and monitors off when vacating the workstation for extended periods, using power-saving

timers, and preventing the use of personal heating devices.

• Water consumption and recycling

Led by the Management Division, Kukdong Jeyen Co., Ltd. regularly inspects its water consumption to prevent

the company from wasting any water resources, and to repair/replace deteriorating equipment preemptively to

reduce any unnecessary expenditure of resources. The company has also installed fixtures inside the recycling

storage unit that can help recycling. This minimized the volume of waste discharged by the company and

encourages employees to recycle resources.

Environmentally Responsible Management -Implementation Details

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• Initiatives to reduce water consumption

Kukdong Jeyen Co., Ltd. mostly uses water supplied for domestic use rather than industrial use for its showers,

toilets, laundry room, and equipment room. To reduce water consumption, the company plans to implement a

number of different initiatives, including the installation of water-saving taps and shower heads.

• Disposal of waste and recycling of resources

The Manufacturing Division reduces the volume of waste it produces by reducing its defect rate among finished

products. Also, the Manufacturing Division makes sure the company maintains its compliance with different

regulations on waste disposals. It follows storage expiration dates for each waste product according to its type

and shape, records relevant information in an inspection log, and inspects waste products at regular intervals. To

help save resources by reducing the consumption of disposable products, stimulate recycling, instill a culture of

saving resources from everyday activities, Kukdong Jeyen Co., Ltd. has eliminated all use of paper cups, and

encourages the use reusable cups such as mugs. It encourages all staff to use reusable cups when joining various

meetings and conferences.

Environmentally Responsible Management -Implementation Details

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2015 2016 2017 2018Sales (One hundred

million-KRW)704 714 780 914

Water (㎥)355 358 424 517

Electricity (kwh)40,212 42,227 47,722 57,061

0

100

200

300

400

500

600

700

800

900

1000

2015년 2016년 2017년 2018년

매출(억) 용수(㎥) 전기(mwh)

Environmentally Responsible Management -Details Regarding Energy-saving Initiatives

WaterSales Electricity

2015 2016 2017 2018

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Environmentally Responsible Management -Initiatives in Local Communities

Poseung Industrial Complex clean-up program


- Objective: Clean-up the local environment where the company is located. Kukdong Jeyen Co., Ltd. works with other

relevant organizations located nearby as well as other companies inside the Complex to clean-up the area

inside Poseung Industrial Complex.

<ISO 14001>

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<ISO 45001>

Environmentally Responsible Management -Certificate

•Kukdong Jeyen Co., Ltd. aims for ethical management. It has a “Voluntary zero-corruption initiative” to fight

corruption and to establish a corporate culture that values integrity. This is part of the company’s extensive range

of efforts to minimize the risk of corruption that inherently exists in business and in systems. Kukdong Jeyen Co.,

Ltd. Also has a Security Council that levies heavy penalties on people who engage in corrupt activities based

pursuant to the employee code of conduct and/or human resource penalty regulations.

<Whistleblower Protection Regulation><Organizing the Board of Security> <Security check list >

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Ethical Management and Sustainable Management

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Implementation/establishment of a

foundation

Implementation of a mindset driven

by ethical management principles

Establishment of infrastructure e.g.

organizations, systems, etc.

Stabilization of operations

Training and reinforcement of programs

Diversification of implementation

programs for different business categories

Supplementation of implementation

programs pertaining to the organization-

regulations-systems

Full implementation and development

Establishment of a voluntary

implementation system

Continued development of

implementation programs

• Full implementation and development of ethical management

Kukdong Jeyen Co., Ltd. has shared information on unethical actions, abnormal sales behavior, etc., and carried out training

sessions on ethical management whenever employees were dispatched into the field to establish a sense of ethics and

improve the image of the company among employees. Moreover, in order to reinforce the implementation of ethical

management methods, Kukdong Jeyen Co., Ltd. assessed the state of ethical management at each of its major affiliates,

and addressed poorly performing areas. By doing so, Kukdong Jeyen Co., Ltd. hopes to set a common direction in terms of

ethical management across the entire group, and the momentum to implement ethical management initiatives.


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• Monitoring of ethical management

Each year, the Management Support Division audits the ethical management activities at each department to

inspect and determine whether Kukdong Jeyen Co., Ltd. has been able to establish ethical management

successfully across the entire company. When the Division discovers an ethics violation, it issues a corrective order,

notifies relevant entities, and devises countermeasures to improve the situation. In terms of penalties, Kukdong

Jeyen Co., Ltd. Can dismiss or suspend an employee, reduce pay, reprimand, warn, or caution an employee.

• Popularization of a culture driven by ethical management based on system amendments

and promotional activities

Kukdong Jeyen Co., Ltd. strictly prohibits any behavior (e.g. speculative actions of employees, sexual harassment,

etc.) that may be detrimental to its solid organizational culture. The company also completely bans any unfair

intervention for a particular right, mediation/solicitation, accepting/giving of bribes, personal use of company

property, borrowing of money from entities with a business interest.

Employees must report to Kukdong Jeyen Co., Ltd. when hosting or participating in any lectures/meetings outside

the company, and refrain from using their position or title for personal gain.

Also, when purchasing products, signing a construction contract, signing a service contract worth KRW 20 million

or greater in value, both sides of signing the contract must also sign a pledge of integrity.


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<Ethical Management Programs>

· Survey on the awareness of ethical management among employees

Kukdong Jeyen Co., Ltd. carries out surveys to measure the awareness and perception towards ethical

management among all employees, and uses the results to support management, and to design and

execute initiatives aimed at encouraging ethical management and raising integrity levels among

employees.

· Submission of “Our Pledge” agreements

Kukdong Jeyen Co., Ltd. asks every employee to sign and submit a pledge of integrity stating that

he/she will learn the company’s “standards for ethical behavior” and comply with its provisions in order

to become highly competent and ethical employees.

· Readings on ethical management

Kukdong Jeyen Co., Ltd. includes readings on the subject of ethical management in its training program

for newly recruited employees to establish a strong sense of ethical management early on.


- Announced Date: September 2019

- Homepage:http://www.jeyen.com/

Sustainability Report 2019

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Future-oriented corporation Kukdong Jeyen Sustainability Report … JEYEN Sustainability...

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