ESG (Corporate Sustainability Management) | Company

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KORLOY strives to become the most competitive company
in the world to share happiness with people in the world.

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ESG (Corporate Sustainability Management)

KORLOY is committed to ESG management for a better future.

KORLOY will contribute to the advancement of related industries, create employment, and fulfill its role and responsibility in contributing to the development of the country and local communities by continuously providing ESG management products and services in the cemented carbide cutting tool industry for the creation of economic, social, and environmental value in human life.

Social

To become a trusted company by stakeholders and work with society through disaster-free pursuit
and human rights management We pursue safety and health environment management
with the aim of growing and developing.

Human Rights Policy

KORLOY has established a new organizational culture centered on communication and collaboration
that recognizes and respects differences, through the re-establishment of core values via the 2022 Organizational Culture New Design.

2022.12

Human Rights Policy
Division	Contents	Year (No. of times)	Note
Autonomous improvement of working conditions	Employment contract, payroll and attendance records, employment regulations, labor-management council rules and meeting records, sexual harassment prevention education journal, and etc.	2022(once) 2021(once) 2020(once) 2018(2 times) 2017(once)	Headquarters, factory, branch office
Organizational culture Interview / Survey / Open-i	Representative themes of organizational culture, 64 questions based on a 7-point scale (structure, culture, performance, task, talent, strategy, organizational culture, and environment) “No Open, No Change” (Communication/ collaboration/ empathy/flexibility)	2022(3 times)	All employees / clients, companies
Personnel system Interview / Survey / Job analysis	Representative themes of organizational culture, 64 questions based on a 7-point scale (structure, culture, performance, task, talent, strategy, organizational culture, and environment) “No Open, No Change” (Communication/ collaboration/ empathy/flexibility)	2022(3 times)	All employees

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Complaint Handling System

KORLOY specifies the operation of the complaint handling system in its employment rules.
(Article 91 Complaint Handling ‒ The Company operates a complaint handling system on accordance with relevant laws, and strives for the voluntary resolution of workers grievances.)

Sexual Harassment report Reporting center for sexual harassment: Management and Administration Headquarters
Consultation and investigation Prompt and timely response, fair and careful investigation
Fact-finding and action Verification of consultation and investigation facts, and action depending on the severity if it is determined to be sexual harassment
Personnel measures and discipline In cases that the matter is severe, disciplinary action will be taken in accordance with the procedures.
Notification of results and prevention of recurrence Notification of the final results and continued management of the perpetrator and victim

Safety & Health Policy

Make Safety & Health Policy the priority!

Based on the "Happiness First" management philosophy KORLOY is implementing the following safety and health policies to realize safe workplaces and promote the health of our members.

01

Establish an autonomous safety and health management system with safety and health as the top priority in all business activities.
02

Create a healthy and safe working environment for employees by detecting, discovering, and improving potential risk factors in advance.
03

Through safety, health education, and training, the safety and health abilities of employees are continuously strengthened.
04

Follow the regulation and management policies of safety and health thoroughly.

All employees and partners shall comply with safety and health regulation and related business procedures. In addition, safety and health goals and detailed action agenda must be set and implemented annually to prevent industrial accidents, and the safety and health policies should be viewed or recognized by all employees.

The President of KORLOY JUNGHYUN YIM The President of KORLOY JUNGHYUN YIM

Safety and health policies

Operation of an Industrial Safety and Health Committee

Operation of an Industrial Safety and Health Committee made up of labor and management to make various decisions necessary for safety and health management, operated regularly every quarter.

Joint Labor-Management Safety and Health Inspection

Every month, labor and management, as well as internal partner companies, conduct joint safety inspections of the workplace to improve potential hazards on site.

Identification and Improvement of Potential Hazards

Participation of all employees for establishment of safety culture at each workplace, conducting risk assessment activities to evaluate and remove potential hazards within the workplace

Emergency Response Training

Regular training conducted on handling potential high-risk incidents in order to respond to accidents that may occur.

Support for partner company safety and health

KORLOY operates a monthly consultative body with resident partner companies in accordance with the Industrial Safety and Health Act
and supports a partner company safety and health win-win program.
We listen to the opinions of partner companies on safety and health through joint inspections every month.
To create a safe working environment, we provide technical support for partner company safety and health
and support safety activities to prevent disasters and safety accidents and ensure that safety activities become a culture.

Accident-free status

2023.03

Accident-free status
Category	Start date	Target date	Achievement date (Achievement period)	Achievement rate	Accident-free achievement record	Remarks
Cheong-ju	2021.10.27	196(2 times)	221 days (2 months)	56.40%	2 times (196 days)	1 time : 196 days
Jin-cheon	2014.02.10	2,094(14 times)	2,059 days (7 years and 10 months)	98.30%	13 times (1,898 days)	1time : 196 days

Industrial Accident Status

2023.03

Industrial Accident Status
Category		2021
Number of accidents and fatalities	KORLOY	0
Number of accidents and fatalities	Partner company	0
Number of accident and injury victims	KORLOY	0
Number of accident and injury victims	Partner company	0
Number of illness and injury victims	KORLOY	1
Number of illness and injury victims	Partner company	0

Status of safety and health inspection measures

2023.03

Status of safety and health inspection measures
Category		5S Activities	Work Environ- ment	Work Safety	Machine Safety	Electricity Safety	Substance Safety	Construct- ion Safety	Fire Safety	Total
Cheong-ju	Number of excavations	21	9	16	9	11	7	1	9	83
Cheong-ju	Number of actions taken	21	9	16	9	11	7	1	9	83
Jin-cheon	Number of excavations	19	13	19	14	15	15	0	3	98
Jin-cheon	Number of actions taken	19	13	19	14	15	15	0	3	98

Vehicle operation safety education

Vehicle operation safety education
Precautions during vehicle operation	Pre-checks before vehicle operation	Ways of defensive driving during vehicle operation	Guidelines and rules for drivers during vehicle operation	Speed limit for each type of road	Examples of traffic accidents while driving	Education materials
○	○	○	○	○	○	-

Occupational Safety and Health Committee

Safety accident/ Correspondence training for fire suppression

Conflict minerals (3TG)

KORLOY uses tungsten and tantalum among the 3TG minerals in its product production, using minerals produced in certified smelters.
All of our suppliers who supply us with tungsten and tantalum must purchase minerals from smelters certified to be free from conflicts,
and they must provide the origin of the minerals through the Conflict Minerals Reporting Template (CMRT) every year.

분쟁광물(3GT)
Metal	Smelting country	Smelter ID source material
Tungsten	KOREA/CHINA	RMI
Tantalum	KOREA/CHINA	RMI

Customer Satisfaction

KORLOY places customer satisfaction at the top of our priorities, and provides the best service to ensure customer satisfaction.

Customer Satisfaction
Year	2018	2019	2020	2021	2022
Customer satisfaction survey score	69	72	70	73	72

The number of recalls
Year	2018	2019	2020	2021	2022	2023
The number of recalls	1	0	1	0	2	0

Important Feedback Online/ARS customer
complaint reception at each
agency / office
Important Meeting Prompt visit completed,
quick assessment of the
situation, and contract with
the responsible manager
Important Analysis Conducting root cause
analysis, working with the
quality management team
for research and production
Important Measures Conducting root cause
analysis and countermea-sure
establishment,
implementing improve-ments /
education to
prevent recurrence
Important Report Providing results report,
customer compensation,
and improved service
delivery

Information Security

In order to protect KORLOY's key assets, including technical materials, trade secrets, and customer information,
all employees and company stakeholders strive to comply with security management regulations

Information Security System
- Governance: Operating an IT infrastructure security system and personal information protection system.
- Management Policy: Operating security managers and responsible personnel with expertise, conducting security education and promotion, and responding to security incidents.
- Management Unit: All employees and affiliated companies, as well as all IT equipment (servers, PCs, networks, and mobile devices).
- Information Security Organization: As stipulated in the Personal Information Protection Act, we have designated a Chief Information Security Officer who is responsible for information security, possesses expertise and experience in information and cyber security, and is dedicated to protecting KORLOY's tangible and intangible assets.
Strengthening Information Security Activities
- Managing the prevention of external leakage of technical documents through PLM and distribution systems.
- Prohibiting the use of paper drawings and implementing integrated management of company data.
- Continuing to build security management system by establishing secure connections for hybrid work environments in response to the prolonged impact of COVID-19.
- Introduced backup and DR solutions to ensure business continuity while maintaining security management and established a rapid recovery system.
Strengthening Information Security Awareness Improvement
- To continually improve employee awareness of security measures, information security and Personal Information Protection Act education is conducted once a year for all employees

Organization chart of Information Security

Emergency response scenario of DR

Declaration of Disaster

Disaster Assessment - Emergency Notification
- Operating a situation room
- Tracking disaster conditions and sharing relevant information

Decision to convert to a DR system - determining targets for recovery and prioritization
- Estimating the expected recovery time
- Establishing recovery plans
- Deciding to transition to a DR system
Disaster Recovery Activities

DR System Conversion chang-ing network configuration - Converting DR-targeted systems
- Confirmation of system restart
- Confirmation of service activation
- Procurement progress in case of irreparable damage
- Reviewing the feasibility of long-term operation
Return to
Main Center

Return to Main Center verifying the status of the main center - System conversion
- Confirmation of system restart
- Resuming normal operations
Normal Operation

Information Security

Information Security
Year	2018	2019	2020	2021	2022	2023	Range
Information security Education	○	○	○	○	○	○	KOREA

고객 개인 정보 보호 위반 관련 건수, 정보보안/사이버보안 위반 및 사고 건수 연도 별 내용을 포함하는 표.
Year	2020	2021	2022	2023
Number of cases related to violations of customer's personal information protection	0	0	0	0
Number of cases related to information security/cybersecurity violations and incidents	0	0	0	0