KUMHO P&B CHEMICALS

SUSTAINABILITY

Human Rights Management

Human Rights Management Policy

Kumho P&B Chemicals is committed to protecting the fundamental human rights and dignity of all employees and stakeholders,
guided by our core value of Respect.
As a signatory of the United Nations Global Compact (UNGC), we uphold international standards of human rights management
and integrate them into our business practices.
We respect and support the principles of the UN Guiding Principles on Business and Human Rights (UNGPs),
the Universal Declaration of Human Rights (UDHR), the International Labour Organization (ILO) Core Conventions,
the OECD Guidelines for Multinational Enterprises, the Ten Principles of the UNGC,
and the relevant provisions of the Korean Labor Standards Act.
Through transparent and fair management, Kumho P&B Chemicals strives to safeguard the rights of all stakeholders
and to foster a corporate culture that values human dignity and ethical responsibility.

Human Rights Management System

To prevent human rights violations across all business activities, Kumho P&B Chemicals has established a
company-wide Human Rights Management System
and is implementing it in alignment with our ESG management framework.

Human Rights Management System
Core Area	Strategic Approach	Key Activities
Prevention of Human Rights Risks	Identify potential risks in advance	Conduct company-wide human rights impact assessments
Policy and Guideline Enhancement	Strengthen human rights management manuals and guidelines	Review and improve institutional systems and business processes
Education and Communication	Provide ethical management education for Employees	Conduct online training programs to raise awareness
Grievance Handling System	Operate anonymous reporting and protection procedures	Manage online reporting channels to ensure accessibility and confidentiality

Human Rights Impact Assessment

Kumho P&B Chemical conducted a company-wide human rights impact assessment to identify and prevent real and potential human rights risks that may arise throughout its management activities in advance. Based on the Human Rights Management Manual of the National Human Rights Commission of Korea and the Human Rights Guide of the Ministry of Justice, this assessment was conducted by upgrading the indicators to suit the characteristics of the company.

The evaluation items consisted of a total of 10 key areas, including corporate and human rights promotion systems, non-discrimination in employment and business, and prohibition of forced labor, and were conducted based on detailed checklist for each area. In addition, in order to secure objectivity and systemicity of the evaluation, we analyzed in-depth the self-inspection of internal executives and employees and professional diagnosis involving external experts.

As a result of the evaluation, each department is developing tasks that need improvement, and institutional supplementation is promoted through human rights policy inspection and work process diagnosis. Through this, we are preventing potential human rights risks early and strengthening the preemptive human rights management system that meets international standards.

Corporate and Human Rights Promotion System

Non-discrimination in employment/work

Guarantee of association and collective bargaining

Ban on forced labor

Ban on child labor

Safety and Health of Employees

Protection of human rights in the workplace

Human rights support for partner companies

Environmental
protection

Protection of consumer rights

Achievements in Human Rights Management

Achievements in Human Rights Management
Categories	Contents	Achievement linked in ESG
Implementation of Human Rights Impact Assessment	Implemented in 2024, Complete 10 Key Risk Checks	Practice of ESG management (in connection with the social sector)
Advancing Policy/Guidelines	Revised human rights policies and work manuals, strengthened management system	Practice of transparent management
Expansion of education	Confirmation of completion of human rights training in the company	Building Sustainable Partnerships
Establishment of grievance system	Operation of protection system for executives and employees	Compliance with UNGPs and UNGC principles

"Kumho P&B Chemicals realizes a sustainable future with ESG based on management that respects human rights."

(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.