ESG Management

KCC’s “Jeong-Do” (Ethical) Management

Since its establishment in 1958, KCC has been fully committed to develop the country and industry by considering the Jeong-Do management a principle observing laws and ethics. The Jeong-Do management is our core value of creating a sustainable company fulfilling social responsibilities while observing laws and ethics.

According to the Jeong-Do management principle, executives/employees of our domestic and overseas corporations strive to conduct their business legally and ethically while fulfilling their corporate social responsibilities.
To practice the Jeong-Do management, we have established and operated the Code of Conduct befitting to the global standards. Our compliance regulations are comprised of the two main pillars of compliance and ethical management.

We operate a Compliance Program to achieve the Jeong-Do management. The Program is comprised of prevention, monitoring, and follow-up management activities and each activity is complementary to each other.

The Compliance Program Committee operates the Program twice a year. The Committee collects the items implemented and to-be-implemented for each half year to report them to the BOD and voluntarily disclose them.

COMPLIANCE PROGRAM

Prevention

Distribute the Guideline/Manual of the Compliance Program.
Train executives/employees.
Run the contract management system and the help desk center.
Sustainable Management Committee.

Follow-up management

Analyze causes.
Establish the reoccurrence prevention measures.
Take actions on those having violated the laws/regulation.

Monitoring

Inspect internally.
Receive/investigate reporting.
Respond to legal issues.

Practice Measures of the Compliance Management

We distribute the guidelines and manual of the Program to support our employees in observing the laws/regulations. We also conduct regular and occasional training programs and share newsletters to deliver the latest issues and improve some missing content.
By doing so, we establish a fair trading order, protect intellectual property, and prevent corruption to implement compliance management.
Practice Measures of the Ethical Management

Our executives/employees besides our suppliers and external stakeholders all gear towards the execution of ethical management activities and the observation of fair trade orders.
Recognizing that fair and transparent corporate management is essential to improve national competitiveness and achieve mutual economic prosperity, we do our best to practice ethical management including the prevention of conflict of interest to fulfill our responsibilities to our stakeholders including the customers, shareholders, suppliers, and communities.

The organization and regulations of the BOD

The organization and regulations of the BOD Data
	CEO Chairman of the BOD CHUNG MONG JIN	CEO JUNG JAE HUN	Internal director 차승열	External director/ Senior external director 신동렬	External director 한무근	External director 윤석화	External director 장성완
The latest appointment date	Mar 26, 2025	Mar 28, 2024	Mar 26, 2025	Mar 26, 2025	Mar 28, 2024	Mar 28, 2024	Mar 28, 2024
The current term (years)	3	3	3	2	2	2	2
Major career	[Current]Chairman of the KCC Corp. [Current]CEO (Singapore) of the KCC Corp.	[Current]President of the KCC Corp [Former] Vice President of the KCC Corp	[Current] CSEO of the KCC Corp (Chairman of the EHS Committee) [Former] Executive in charge of Safety and Environment of the KCC Corp.	[Current]Head Accountant of New Joy Accounting Firm [Former] Director of NTS Daejeon Regional Office	[Current] Senior Counsel of Haesong LCC [Former] Prosecutor at Chuncheon District Prosecutors’ Office	[Current]Professor of the SNU Business School [Former] Assistant Professor of Montclair State University	[Current] Executive Director of the Gwanggyo Accounting Firm [Former] Director of Samjung KPMG

The organization and regulations of the committees

Audit Committee

감사위원회 구성 및 규정 정보 제공
Major authorities	Internal director	External director
Review on the internal/external audit Evaluate the internal control system Create/submit audit reports	-	Chair 신동렬 Member 윤석화 Member 장성완

External Director Nomination Committee

사외이사후보추천위원회 구성 및 규정 정보 제공
Major authorities	Internal director	External director
Recommend a candidate for external directors Handle other items required for recommendations	-	Chair 한무근 Member 윤석화 Member 장성완

Sustainable Management Committee

지속가능 경영위원회 구성 및 규정 정보 제공
Major authorities	Internal director	External director
Establish and review the ESG related policy Review ESG-related major progresses Review and approve the internal transaction	-	Chair 윤석화 Member 한무근 Member 장성완

Major laws /regulations	Major details and guidelines
Fair Trade Act	The prohibition of unfair trade practices: One shall not use one’s superior position in trade to give disadvantages to the suppliers(Refusal of transaction, discriminatory treatment, forced trade, abuse of dominant position, constraint trade and the act of maintaining the resale price). The prohibition of abusing one’s dominant position in the market: In case of a dominant market player, one shall neither determine, maintain or change the price or payment for the services unfairly nor interfere in the business activities of another business or the entrance of a new competitor. One shall neither do trades to unfairly eliminate the competitors nor behave in a way that may harm the interests of the consumers. The prohibition of unfair common action(collusion): One shall not agree on the matters of restricting the competition such as restricting the competitor, price, production/sales quantity, trading area/opposite party, etc. One shall not exchange sensitive information that may have an impact on these matters directly or indirectly. The prohibition of an unfair common action(bid rigging): In the bidding process, one shall not discuss/agree on a prospective successful bidder and the bidding price with another party prior to the bidding. One shall not share the bidding information with the competitors. The control of suppressing the concentration of the economic power: One shall avoid unfair internal transactions among affiliates. In case of performing internal transactions, one shall obtain the approval of the Sustainability Management Committee in advance.
Subcontracting Act	One shall comply with the duty to prepare, issue and preserve the agreement. One shall perform an unfair decision on the pricing, delayed payment, unfair terms, unfair reductions, unfair order cancellation, unfair refusal of receipt, and unfair return. One shall not request one’s suppliers to provide the technical data. If necessary, the confidentiality agreement shall be concluded, and the data shall not be used for other purposes not stated in the agreement.
FAIR AGENCY TRANSACTIONS ACT	One shall observe the duty to prepare, issue and preserve the agreement. One shall not conduct forcing purchase, profit and sales targets, inflicting disadvantages, or interfering with management activities.
Other laws	One shall observe the duties and prohibited matters to be implemented by business in compliance with the Act on the Regulation of Terms & Conditions, Act on Fair Labeling & Advertising, Framework Act on Consumers, and Product Liability Act.

Purpose			Wall						Beam/pole	Floor	Roof/roof truss
Purpose			Exterior wall			Interior wall
Classification	Size story/ maximum height (m)		Bearing wall	Non-bearing wall		Bearing wall	Non-bearing wall
Classification	Size story/ maximum height (m)		Bearing wall	Concern for combustion	No concern for combustion	Bearing wall	Partition wall	Shaft-seal compartment wall
General facilities	12/50	above	3	1	1/2	3	2	2	3	2	1
	12/50	or below	2	1	1/2	2	1.5	1.5	2	2	1/2
	4/20 or below		1	1	1/2	1	1	1	1	1	1/2
Residential facilities	12/50	above	2	1	1/2	2	2	2	3	2	1
	12/50	or below	2	1	1/2	2	1	1	2	2	1/2
	4/20 or below		1	1	1/2	1	1	1	1	1	1/2
Industrial facilities	12/50	above	2	1.5	1/2	2	1.5	1.5	3	2	1
	12/50	or below	2	1	1/2	2	1	1	2	2	1/2
	4/20 or below		1	1	1/2	1	1	1	1	1	1/2

Grade	Grade standard (Rw+C)
1^st	63dB ≤ Rw+C and boundary walls not shared between households
2^st	58dB ≤ Rw+C < 63dB
3^st	53dB ≤ Rw+C < 58dB
4^st	48dB ≤ Rw+C < 53dB

Walls	Absorbers (Glass Wool, Mineral Wool)	Increase the density of a gypsum board	Increase the thickness of a stud and gypsum board	Use T-Silent-Stud System
Block the sound path by separating studs from each other.		Regular Gypsum Board< Perforated Sound Absorption Board
Around 10dB is reduced.	About 6dB is reduced.	About 2-3dB is reduced.	About 2-3dB is reduced.	About 7-15dB is reduced.

Levels	Awareness level
1dB	Felt no change
3dB	Felt a change
5dB	Surely felt changes
10dB	2 times greater changes are felt
20dB	4 times greater changes are felt