KUMHO P&B CHEMICALS

SUSTAINABILITY

Ethical Management

Introducing KPB’s Ethical Management

Acknowledging that ethical management is not only a necessary condition for continued business operations but also a key source of the competitiveness of an enterprise, KPB implements policies and practices of ethical management with strong commitment and determination. The seven major objectives of its ethical management policy are: achieving blameless management; promoting mutual growth with business partners; helping the vulnerable and people with disabilities; organizing blood donation drives; providing cultural and artistic support; fostering healthy labor-management relations; and pursuing an environment- and safety-conscious management.

Trust
“Blameless management” is achieved on the basis of transparent accounting practices and by keeping promises made to customers.
Mutual growth
A culture of “mutual growth” is established by promoting fair and healthy relations with business partners and labor representatives.
Care
We are ushering in a better and more hopeful world by actively reaching out our hands to those in need, through various volunteer works, blood donation drives, and cultural and artistic support for the marginalized.
Environment
We strive to achieve a working environment that is completely free of accidents and disasters.

(company-specific) Approved EXporter

This system has been introduced to provide support for time and cost savings at the time of issuing a certificate of origin as an increasing number of countries have signed free trade agreements.

A system where the customs authorities provide any exporter approved as capable of proving the origin of the goods with such benefits as simplified procedures for the issuance of certificates of origin, omission of the submission of attached documents, etc.

* Korea-EU FTA : In the case of the exportation of any consignment consisting of originating products whose total value exceeds 6,000 euros, only an approved exporter can self-issue a certificate of origin.
* Korea-ASEAN, China, India, Singapore, Vietnam FTA : Submission of attached documents may be omitted when applying for the issuance of a certificate of origin.
* Korea-EFTA FTA : When an exporter self-issues a certificate of origin, such exporter’s signature may be omitted.

Differences between the company-specific AEX and the product-specific AEX.

ㅇThe company-specific approved exporter system is a blanket authorization system where the procedures for issuing a certificate of origin are operated in a simplified way for all the free trade agreements and all the export goods.

ㅇThe product-specific approved exporter system is a system where the procedures for issuing a certificate of origin are operated in a simplified way after granting authorization as an approved exporter for each relevant FTA and the six digits of each relevant HS code.

AEO (Authorized Economic Operator)

An authorized economic operator (AEO) is a “party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national customs administration as complying with the World Customs Organization (WCO) or equivalent supply chain security standards.” Authorized Economic Operators include companies and parties concerned that are related to logistics such as importers, exporters, transporters, transportation brokers, warehouses operators, and customer brokers. The AEO concept was established by the WCO and the international community to ensure the security and smooth movement of goods in response to the U.S. trade security measures, which were reinforced after the September 11 attacks.

The introduction of the AEO program enables customs administrations to reject existing practices that had granted selective benefits of customs clearance procedures, which are based on fragmentary standards by the distributor and instead, evaluate the sincerity all distributors based on integrated standards. Consequently, once recognized as excellent, the company can enjoy comprehensive benefits in customs processes, which range from customs clearance for import and export to tax payment.

Three Features of the Korea AEO System

1. The integrated operation of the Business Evaluation System and the Security0 Management System can avoid the overlapping evaluation of a company.

2. The internal control system of a company is autonomously strengthened to increase the degree of law compliance.

3. The ASC concept is more specified. The Korean AEO system is focused on giving benefits by connecting overseas export networks with domestic import networks. Once an AEO status is given to all relevant companies, such as overseas producers and transporters (exporters), international transportation brokers, domestic cargo handlers, warehouse operators, customs brokers, and importers, they can receive unprecedented benefits.

Responsible Care

Responsible Care (RC) is a global initiative with regard to the environment, safety and health, where most of the developed countries and multinational companies are involved. This is the most comprehensive and long-term program practiced by the chemical industry. RC is a concept that even covers the local residents’ safety and the employees’ health by complementing the existing ISO 1400 (Environment Management), which was mainly engaged in the environment. It is also a voluntary management movement where companies participate with responsibility, which is different from existing regulations-centered environmental policies.

Even though the chemical industry has played a pivotal role in all the industries, it has been recognized as a culprit in the current negative issues because of the emphasis on the risks of chemicals. In this context, the purpose of this initiative is for chemical companies to have more endeavors to ameliorate environmental safety, thus simultaneously recovering its reliability and improving its image.

After adopting RC in 1992, Korea established the Korea Responsible Care Council (www.krcc.or.kr) in December 1999 and became a member of the Responsible Care Leadership Group in September 2000. Factory 1 of Kumho P&B Chemicals has also been actively engaged in the RC initiative after signing a voluntary agreement.