2018-2019

Sustainability Report + Annual Report

Enable
the Cabled
World
 About This Report

The 2018-2019 LS C&S Sustainability Report is our ninth sustainability

report prepared to share with our stakeholders the last year’s performance Overview
in economy, environment and society. To increase the credibility of the
Chairman’s Message 02
report, internal policies for sustainable management were analyzed and the
President’s Message 04
result of an employee survey was reflected through a material assessment.
In addition, reports from other domestic and overseas companies within About LS C&S and its Businesses 06
the industry were applied as references. We will continue our efforts to Our Products 08
communicate and listen to our stakeholders to provide information that Company Vision and Philosophy 10
meet their needs.
Global Business 12

Reporting guidelines Key Achievements 14

· GRI (Global Reporting Initiative) Standards Achievements in the LS C&S Way 16
· UN Sustainable Development Goals Corporate Governance 18
· ISO 26000
Risk Management 19

Reporting period Opportunities in the Cable Industry 22

From January 1 to December 31, 2018 (published annually) Sustainable Management System 24
· Three-year data from 2016 to 2018 is provided to keep track of Materiality Assessment 28
performance trends.
10 Key Topics
· Performances and issues in 2019 that are considered meaningful and in (Special Themes) 1. Customer First
need of reference are included and the point of time is specified.
New Technology and Products 34
Reporting scope Quality and Product Responsibility 44
Domestic worksites (the head office, Gunpo R&D center and plants in Gumi,
2. One LS C&S
Indong, and Donghae) and domestic and overseas subsidiaries
Social Contribution 52
Assurance Shared Growth 56
For the credibility of this report, internal review by the management and Respect for Human Rights and Diversity 62
third-party verification were conducted.
3. Rule&Responsibility

Publication date of the latest report Compliance Management 66

May 2018 Ethical Management 69
Workplace Safety 72
Currency
4. Expertise
All financial figures are presented in KRW in the report in Korean and in
USD in the English version. All won amounts are expressed in U.S. dollars Talent Management 76
LS (Leading Solution)
at US$1:KR￦1,180.1 the exchange rate in effect on December 31, 2018. Advanced Green Management 84
For LS Cable & System, sustainable management Appendix
Data collection means our belief in the value of going forward Consolidated Statements of Financial Position 95
We processed and used the data collected from seven working together. It is not simply a resolution, but some-
committees through the information management system. Consolidated Statements of Comprehensive Income 96
thing that must be put into action on a daily
· If there are any changes in a data collection method, adjustment is made Consolidated Cash Flow Statements 97
basis. We resolutely believe in and act upon our
using the 2018 method and details are specified in the report. Separate Statements of Financial Position 98
vision ‘Enable the Cabled World’ to enhance
Separate Statements of Comprehensive Income 99
Key changes in terms of the size, structure, and ownership of the organization the quality of life of our stakeholders, including
None Separate Cash Flow Statements 100
suppliers, customers, investors, and local com-
Independent Assurance Statement 101
munities. Our goal for sustainable management
Website: http://www.lscns.co.kr/kr/intro/sustainability_system.asp
is to create a society defined by coexistence and GRI Standards 103
Address: LS Cable & System Sustainability Coordination Group, LS Tower, 127 LS-ro, Dongan-gu,
Anyang-si, Gyeonggi-do, Korea a prosperous future. Additional Information 105
E-mail : csr@lscns.com
Tel : +82-2-2189-9104
02 03
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report Chairman’s Message

Chairman’s Message

LS C&S has been striving to achieve sustainable growth through

proactive communication with our shareholders, customers,
employees, suppliers, and local communities and through the
promotion of an organizational culture with work-life balance.

Distinguished stakeholders,
On the occasion of the publication of our ninth organizational culture of work-life balance.
sustainability report, I would like to take this
In 2018, numerous strategies, including our ‘leaving
opportunity to express my gratitude to all the
the office on time’ campaign and ‘PC-Off’ (automatic
stakeholders in our enterprise for your continued
shutting off of office computers) system, were
interest and support.
pursued in an effort to enhance productivity and
Over the last half-century, LS C&S has contributed performance by concentrating work and ensuring
to a solid foundation for the development of work-life balance.
the international cable industry and fueled the
Success in our endeavors is the key to preserving our
global economy through the construction of
company’s growth. To keep our business sustainable,
telecommunications and power-distribution
it is essential to maintain a positive corporate
networks. Utilizing our hard-earned experience and
culture. We will do our utmost to uphold a culture
expertise, we are aiming for a world where everyone
that encourages employees to be proactive at work,
has access to energy and information without any
heighten their competitiveness while supporting a
constraints of time and space.
healthy work-life balance that allows them a greater
Rapidly changing market environments at home and sense of control and ownership over their lives.
abroad have increased uncertainty. In response, we
Moving forward, we will continue our efforts at
have been proactively addressing challenges through
promoting the growth of both the company and our
refinements and innovations targeting sustainable and
employees and lock in future competitiveness. By
high-quality growth since 2016.
thoroughly communicating with our stakeholders
We have devised and implemented strategies tailored and fulfilling our corporate social responsibility, we
to the needs of respective markets, which has allowed will offer the best possible service to customers and
us to identify new business opportunities around become a trustworthy partner creating ever-greater
the world. Our efforts at developing an innovative value.
business model will keep us prepared for shifting
Thank you.
business environments and future uncertainty.

Meanwhile, in order to ensure our sustainable growth,

we have focused on proactively communicating
with our shareholders, customers, employees,
suppliers, and local communities while promoting an Chairman Koo Cha-Yub
04 05
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report President’s Message

President’s Message

LS C&S will continue its efforts to promote communication and

cooperation with its stakeholders and fulfill its social responsibility,
contributing to improving quality of life and building
a brighter future.

Distinguished stakeholders,
The 2018-2019 LS C&S Sustainability Report attract additional customers since product quality is
is published to transparently share with our the key in the manufacturing industry to win the trust
stakeholders the achievements and future directions of customers. To ensure quality, we will do our utmost
of our economic, social, and environmental activities to heighten our technological capacity and reach our
in support of sustainable management. goal of ‘zero failures’ for product quality and customer
requirements.
Over the last year, the global economy experienced
turbulence stemming from the trade war between the Our focus will also be on nurturing talent. Long-
US and China and sluggish economic growth in the term company policies will be formulated to
EU. Despite unfavorable global market conditions, we strengthen employee competitiveness and solidify
dedicated ourselves to expanding sales and winning the fundamentals that determine the survival of a
additional contracts by identifying emerging markets company.
and securing new customers. As a result, total order
In order to fulfill our corporate social responsibility,
volume for 2018 reached a record high for the second
we are conducting a wide range of local social
consecutive year and sales broke the USD 3,577
contribution activities in the areas around our
million level for the first time in five years.
subsidiaries. To achieve shared growth, we are
Meanwhile, in order to support a corporate culture also providing financial and training support to our
that promotes work-life balance, a wide range of suppliers.
programs have been operated to help our employees
LS C & S w i l l s u sta i n i t s e f f o r t s t o p r o m o t e
gain both enhanced productivity at work and
communication and cooperation with its stakeholders
improved quality of life.
and fulfill its social responsibility, contributing to
Over the course of this coming year, we will continue improving quality of life and building a brighter future.
our efforts to meet the expectations of our customers,
We look forward to your support and appreciate your
employees, and local communities by achieving
interest in our efforts.
robust business performance while promoting
sustainability through activities for ethical and quality Thank you.
management and shared growth.

In particular, we will focus on quality management to

President Myung Roe-Hyun
06 07
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report About LS C&S and its Businesses

About LS C&S and its Business

Company profile Financial results
LS C&S, a global leader in industrial electricity, electronics and ma- Company name LS Cable & System Consolidated sales for 2018 was recorded at USD 3,756 million, a year-on-year increase of USD 582 million, surpassing the USD 3,577 million
terials is providing state-of-the-art products, including HV/EHV, su- Head office 12th-16th Fl. LS Tower, 127 LS-ro, Dongan-gu, mark for the first time in five years. Operating profit rose to USD 99 million similar to that of the previous year and earnings before tax increased
Anyang-si, Gyeonggi-do, Korea (zip code: 14119)
perconducting, submarine and telecommunication cables to energy by USD 26 million to USD 108 million since total order volume for 2018 reached a record high through proactive investment and strategies
Domestic worksites Plants in Gumi, Indong and Donghae
agencies and telecommunication companies. In addition, our focus tailored to customer needs. As of the end of 2018, the total amount of assets stood at USD 3,329 million, a rise of USD 703 million year on year
President Myung Roe-Hyun
is also on identifying new growth engines such as HVDC cables and mainly due to increased tangible assets and trade receivable from expanded sales. Our financial structure has improved from the previous year
Date of establishment May 1962
components of electric vehicles to become a leading company in with USD 2,337 million for debt, USD 992 million for equity, and 235% for debt-equity ratio.
Primary Power/telecommunication/industrial cables
the global energy and IT industries. products and materials
Sales ■ Separate ■ Consolidated (unit: USD million) Operating profit ■ Separate ■ Consolidated (unit: USD million)
Subsidiaries 5 domestic subsidiaries and 14 overseas
subsidiaries
*as of Dec. 31, 2018 2,257 56
2016 2016
2,727 75
Company information * as of the end of December 2018; consolidated

2,709 90
2017 2017
3,174 100

Capital Sales Employees Subsidiaries Corporate tax 2,980 94

2018 2018
3,756 99
USD USD USD

992 million 3,756 million 4,497 21 24 million

Financial structure

Assets ■ Separate ■ Consolidated (unit: USD million)

Membership
History
1,966 · Korea Personnel Improvement · Korea Electrical Manufacturers
2016 Association Association
2,433 · SERI CEO
Establishment Qualitative · Korea Electrical Contractors
of foundation Growth growth · Korea HRD association Association
1962-1983 1984-2003 2004-2018 · Anyang Reserve Commander · Korea Information and Communica-
2,236 tions Contractors Association (KICA)
2017 Association
2,671 · Korea Emergency Planning Council · CIRED KOREA
1962 Established as the Korea Cable 1984 Established Goldstar Optical 2005 Changed the company name to LS C&S / Opened the LS
Industry Telecommunications, a joint Industrial Complex in Wuxi, China · Korea Employer’s Federation (KEF) · ICF
venture with AT&T for optical · Anyang Chamber of Commerce · Korea Wind Energy Association
1966 Opened an Anyang plant 2006 Opened LSCV, the 2nd plant in Vietnam
fiber production. 2,385
1978 Opened a Gumi plant 2007 Opened LSCI in India 2018 · Korea International Trade · FTTH Coucil Asian Pacific
1994 Opened LGMW and LGME in a
3,329 Association (KITA) · Korea Rolling Stock Industries
1982 Opened an Anyang R&D center joint venture with Malaysia 2008 Launched as LS holdings Co. Ltd
· Fair Competition Federation Association
1983 Opened a HV/EHV VCV tower at 1997 Opened an Indong plant in Gumi 2009 Opened the first submarine cable plant in Korea (Donghae) / Acquired
a Gumi plant HongQi Electricity of China (current LSHQ HongQi Cable & System) · Korea Listed Companies · Korea Railway Association
Completed the construction of
LG-VINA cable plant in Vietnam 2015 Declared the new company vision LS C&S Way / Founded LS Association · Korea Defense Industry association
C&S Asia (a holding company of Vietnam subsidiaries) Debt-equity ratio ■ Separate ■ Consolidated (unit: %)
2003 Branched off from the LG Group · Korea Electric Wire Industry
· Foundation Fieldbus Association
2016 LS C&S Asia listed on KOSPI Cooperative (KEWIC)
275% (FieldComm membership)
2017 Acquired the power business of SPSX (establishment of LSCUS) 261% · Korea Engineering & Consulting
· Korea Profibus Association
LS C&S Asia started the construction of a cable plant in Myanmar 235% Association (KENCA)
· CLPA (CC-Link Association)
Established LS EV Poland, and launched LS EV Korea 231% · Korean Institute of Electrical
240% Engineers (KIEE) · ODVA
2018 Incorporated GAON CABLE as a subsidiary / Established G&P 225%
(merger between GCI and Pountek · Korea Electric Association · CIGRE Korea
Built a subsidiary in Poland for optical cable production /
Established LS Alsco 2016 2017 2018
08 09
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report Our Products

Our Products

Energy Telecommu-
nications
Overhead HV/EHV cable Busduct system FTTA (Fiber to Optical fiber FTTH
transmission line the Antenna) /Optical cable (Fiber to
This efficiently transmits This has the advantage of distrib- the Home)
This is mainly installed in steel towers
large-capacity power uting power efficiently in confined This is installed in wireless This delivers large-capacity
for long-distance power transmission. This provides high-
with a voltage of 154kV or spaces with a high demand for base stations to efficiently data rapidly and accurately
OPGW (optical ground wire) is over- speed internet service
higher. electricity, such as factories or apart- send electric power and opti- by sending communication
head ground wire to which telecom- to homes using optical
ment buildings. cal signals to an antenna. signals using light.
munication features have been added. fiber cables.

LAN (Local Structured Coaxial cable

Area Network) cabling system

Power distribution Superconducting HVDC cable Submarine cable system This allows high-speed telecom- This supports the planned installation This stably transmits a
cable cable system munications networking within and operation of cables used for com- high frequency signal
This supports long-dis- This can be installed along the
This supplies power at This transmits and distrib- limited geographic areas. munications equipment and personal from base stations to an-
tance transmission with ocean floor to allow electric
0.6/1kV to 22.9kV to resi- utes large quantities of computers within buildings. tennas using broadband
reduced power loss by power transmission and com-
dential and commercial energy with little loss converting AC to DC. munications between islands
buildings and industrial since there is minimal or between the mainland and
distribution circuits. electrical resistance. an island.

Materials
Industries
Copper wire Aluminum Magnet wire
Industrial cable Automotive cables and Military cable
harnesses and modules This is high-purity cop- This is made of light- This is used to convert
These are used to for electric vehicles This is used to for per wire made exclu- weight, high-strength back and forth between
supply signals and signaling and powering sively with electrolytic aluminum with elevat- electric and mechanical
These are used to provide
power to electric and military vehicles, includ- copper to minimize ed conductivity. energy in electrical or
power to all devices required in
electronic devices and ing tanks, aircraft, and the loss of electricity. electronic devices.
a vehicle.
industrial robots. naval vessels.
* Products of LS EV Korea (LSEVK)

Rolling stock cable Wind power cable Marine and

offshore cables
This is used to power and This is used to transmit
control various rail vehi- to transformers the elec- These are used to power and control
cles, such as subway cars tricity generated from ships (such as an oil tanker or con-
and high-speed electric onshore and offshore tainer ship) and oil-drilling facilities,
trains (KTX). wind power generators. and also for telecommunications on
such ships and facilities.
10 11
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report Company Vision and Philosophy

Company Vision and Philosophy

LS C&S is striving to fulfill its responsibility to meet the unique needs of its customers as a cable system manufacturer and provider while offer- Management policy in 2019
ing the best possible value to stakeholders as a trusted partner making live more convenient and prosperous. To this end, we will continue our
Top priorities for 2019 will include operating businesses for profitable growth, promoting quality, and strengthening the capacities of our em-
efforts to devise innovative business models and implement management strategies based on willing winning the respect of our stakeholders.
ployees as our efforts at encouraging all employees to contribute to increasing sales and operating profits, strengthening our business portfo-
lio, and promoting an organizational culture of work-life balance produce results in the second phase of our business management.

LS C&S Way Strengthening business capacity based on the results of innovating our organizational
Direction
culture in the first and second phases of business management
Our LS C&S Way ideal provides a future direction and value system for LS C&S. It consists of the company’s vision and core values that inspire
the principles on which employees act.

Profit- • Securing competitiveness by improving business structures and product portfolios

Achieving profitable growth through competitive
oriented • Promoting cooperation with overseas subsidiaries (production/sales)
products and sales
Vision management • Optimizing our resources (human resources, inventory, receivables, tangible assets)

• Winning trust from customers and addressing quality risks with the goal of reducing
Maintaining a performance-oriented corporate culture
Quality Q-costs to zero
by securing product quality and streamlining internal
Our products, which bring to mind concepts such as connection, line, and light, are found management • Preventing the re-occurrence of the same or a similar failure in a product or in service
processes
in every aspect of people’s lives, and they connect the world through power and telecom- quality

munication technologies. In our vision of Enable the Cabled World, we dream of a world • Encouraging our employees to act on the core principles of the LS C&S Way at work Upgrading the organizational culture and the
Nurturing
where everyone has access to energy and information without any constraints of time and • Supporting our employees to become globally competitive and achieve their goals individual performance of employees based on the
talent
space. To realize this dream, we aim to become a leading global company as a total cable
at work LS C&S Way

solution provider.

Corporate philosophy - LSpartnership

Core Values LS Group affiliates are joining forces to become globally competitive by sharing and practicing the corporate philosophy of Greater Value To-
gether. Despite increasing uncertainties and sluggish growth in the global economy, we will continue our efforts to become a global leader in
the industry based on Lpartnership.

LSpartnership means employees armed with a sense of ownership achieve superior performance through mutual respect, care, and trust. They
cooperate based on open-mindedness and grow together with our stakeholders. LSpartnership was created with the participation of all mem-

C. O. R. E
bers of LS Group and provides the philosophy upon which employees should act. It serves as a driving force that will bring about a new future.
By practicing LSpartnership, we will create greater value with our stakeholders at home and abroad.

Greater value together!

Customer Expertise
First
Integrity Respect
Greater Value Together!
LS employees are ethical and LS employees respect diversity
Rule &
One LS C&S work with diligence by complying and work together with partners to
Proactively responding Responsibility Strengthening basic Global Perspective
with principles, standards and produce best results.
to customer needs competence at work procedures.
• Understanding changing • Concentrating on work Respect
Care Trust
customer needs to produce results
• Providing best values Maximizing synergies Ethical management • Broad and in-depth LS employees provide equal LS employees give trust to
technologies and knowl- opportunities to partners to help Care Trust stakeholders based on the
• Implementing differ- • Respecting diversity and • A sense of ownership
edge Integrity
entiation strategies in listening to others them reach their full potential and expertise in and responsibility for
• Sticking to the basics at
competition • Cooperating among work • Pursuing innovation achieve growth and success. what they do.
divisions LS employees are LS employees achieve greater
• Sharing failure cases and
trusted partners. results through cooperation.
• Valuing the benefit of all working on improvement
12 13
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report Global Business

Global Business

18 countries 18 plants 4 R&D centers LSCW

Location Wuxi, China
Date of establishment 2003
LS C&S Subsidiary Branch R&D center Building area 34,415m²

* as of the end of March 2019

Employees 349
Primary products Automotive cables;
industrial cables tubes, H&M, AL PFC
Myanmar
Annual capacity 1,680 million meters of
Manufacturing subsidiary LSGM - Thilawa
industrial cables; 557,000 units of H&M; 2,400
Vietnam tons of AL PFC; 54,000 sets of BD
Poland
Manufacturing subsidiary LS-VINA - Haiphong
Manufacturing subsidiary LSEVP - Dzierzoniow
Manufacturing subsidiary LSCV - Hochimin
Manufacturing subsidiary LSCP - Dzierzoniow LSHQ
China
US Location Yichang, China
Manufacturing subsidiary LSHQ - Yichang
Sales subsidiary LSCA Date of establishment 2009
- New Jersey
Manufacturing subsidiary LSCW - Wuxi Building area 141,587m²
India Manufacturing
Manufacturing subsidiary LSCUS Employees 438
subsidiary LSCI Office: Atlanta Primary products Primary products HV/EHV ca-
France bles; power distribution cables; overhead transmission
Office : Gurgaon Plant: Tarboro
Sales subsidiary LSCF - Paris Japan lines; industrial/specialty cables; submarine cables
Plant : Bawal
Sales subsidiary LSCJ - Tokyo Annual capacity 558km of HV/EHV cables;
UK Branch - San Francisco 3,276km of power distribution cables
Sales subsidiary LSCU - London Hong Kong Mexico
Holding company SPC Branch - Mexico City
LS-VINA
Taiwan Location Haiphong, Vietnam
Branch - Taipei
Bangladesh Date of establishment 1996
Branch - Dhaka Building area 29,337m²
Employees 480
Singapore
Primary products HV/EHV cables; power
Branch - Singapore Australia distribution cables; copper rod
Sales subsidiary LSCAU Annual capacity 63,000km of power cables,
Indonesia - Sydney and 100,000 tons of copper rod
Saudi Arabia Sales subsidiary - Jakarta
Branch - Riyadh

LSEVP LSCUS
UAE
Branch - Dubai Location Dzierzoniow, Poland Location Tarboro, US (plant)
Branch - Abu Dhabi Date of establishment 2017 Date of establishment 2017
Building area 6,000m² Building area 54,000m²
Employees 25 Employees 151
LS Buildwin - Gunpo Primary products Inter-connection board Primary products MV(Cu, Al), LV, C&I
GAON Cable - Seoul for EV batteries Annual capacity 4,044 tons of MV; 7,800 tons
LS C&S ASIA - Anyang Annual capacity 200,000 sets of MV; 1,356 tons of C&I
Head office - Anyang Plant - Donghae

LSEVK - Gunpo
GAON Cable plant - Gunpo
LS C&S R&D center - Gunpo LSCP LSCI
G&P - Chungju
GAON Cable R&D center - Gunpo Location Dzierzoniow, Poland Location Gurgaon/Bawal
LS Buildwin - Mungyeong
Date of establishment 2018 Date of establishment 2007
GAON Cable plant - Jeonju Building area 6,000m² Building area 29,000m²
Plants - Gumi/Indong
Employees 97 Employees 190
LS C&S R&D center Primary products Optical cables Primary products Primary products Tele-
(electric power) - Gumi communication cables (RF/FTTA); HV/EHV
Annual capacity 124 million fiber kilometers
LS C&S R&D center cables; and OPGW
(Industrial Cable/ Annual capacity 10,200km (RF cables); 720km
telecommunications) - Indong (HV); 600km (MV); 360km (LV); 3,000km (OPGW)

LS Alsco - Indong
14 15
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report Key Achievements

Key Achievements

We would like to share our achievements in 2018 in product development, new contracts, and investment with LS C&S stakeholders. Based on We recently concluded a five-year contract
the results, we will continue our efforts to become a top-tier player in the industry as a total cable solution provider. 04 with Western Power. As a preferred supplier,
we will provide 60% of Western Power’s low-
Signing a
and medium-voltage cable orders for five
preferred years. This is the largest achievement in the
supplier contract two years since the establishment of our sales

with Western
subsidiary in 2016. Seizing this opportunity,
we will step up our efforts to increase our
Power market share in Australia.

June 2018

We signed a USD 35,775 thousand contract

01
We invested USD 12,521 thousand to build
an optical cable manufacturing facility at 05 with Ørsted, a Denmark-based power com-

Facility our subsidiary in Poland in order to com-

HV/EHV cable
pany. We will be supplying HV/EHV cables
press the delivery process and prepare for Hornsea Project Two, helping build the
investment in for economic regionalization in Europe. supply for Hornsea world’s largest offshore wind farms in the
Europe Through this new facility, we aim to in- Project Two seas off of the UK.
crease our European market share that has September 2018
hovered in the 1-2% range to 10%.

April 2018

We signed a 67 million-dollar (72 billion won) Our tube products were placed on the Quality Products
two-year exclusive contract with Singapore’s 02 List of the US Defense Logistics Agency. Prior to registration 06
EMA to supply 22kV cables. This achievement
Winning an MV cable on the QPL, the tubes underwent rigorous testing in thirty
LS C&S tube
was possible due to our price competitiveness categories over the course of two years, including for tensile
and the good reputation we have built through supply contract from strength and thermal shock. Leading global chemical com-
products listed
previous contracts. This contract is meaningful Singapore’s Energy panies such as 3M are also on the list in the same product on the QPL by
since it indicates that our technology is recog-
Market Authority category. As only products on the QPL can be used for tanks,
the US Defense
nized in the Singapore market for its high quali- armored vehicles, and fighters starting from the second half
ty standards.
(EMA) Logistics Agency
of 2019, the sales of our tube product are expected to rise.

April 2018 September 2018

We recently became the first producer in the We signed a 125.55 million dollar (142.4
03 world to acquire HVDC cable certification. A
07 billion won) turnkey contract with the Elec-
pre-qualification (PQ) test for 500kV DC cables
Achieving the Winning a bid to
tricity & Water Authority of Bahrain. LS C&S
was conducted at the Donghae plant over six will be responsible for the supply of 400kV
world’s first HVDC months with observers from the Korea Electro- supply HV/EHV HV/EHV cables as well as electric and engi-
cable certification technology Research Institute (KERI) in atten- cables to the EWA neering work on a project to construct new
dance. The technology applied to the product
of Bahrain electrical grids across the nation.
was awarded official certification. This technol-
September 2018
ogy is held by only five companies worldwide.

May 2018
16 17
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report Achievements in the LS C&S Way

Achievements in the LS C&S Way

Since the declaration of LS C&S Way in 2015, a wide range of activities have been conducted to encourage employees to understand the mean- Efficiency at work
ing and importance of its core values and act on them. We will concentrate our efforts to reduce the inefficiency at work so that employees can We have conducted improvement activities for work efficiency. Rather than simply reducing working
take the initiative and concentrate on their works to produce results. hours, these activities are designed to help employees concentrate on their work and maximize their
performance by eliminating inefficiencies at work.

For the success of these activities, the role of team leaders is critical. In response, each team made a list
of consensus under the title of “Leaders, Promise Us the Following” and put it on the wall of the offices
4
Concentrating on working during office hours and leaving the to encourage team leaders keep their promise. In addition, activities to adjust the frequency and dura-
office on time tion of meetings were conducted at the business Group level.
To establish a work environment in which employees can concentrate on their
work during office hours and leave the office on time, announcements with back-
ground music have been made on an in-house broadcasting station at the start
Domestic subsidiaries Corporate culture promotion
and end of office hours since March 2018.
1 I Organizational competence I I Organizational vitality I
activities and organizational
This has helped minimize confusion from the PC-Off (automatic powering down of
79.1
diagnosis for subsidiaries
office computers) system implemented in July, and employees have begun feeling 87.1
70.4 As the role of our subsidiaries has become
74.5
comfortable with leaving work on time. Meanwhile, a weekly in-house broadcast- 69.2
52.7 58.6 57.3 increasingly important in our business,
ing program called Happy Wednesday Evening is being operated to deliver thank- 48.3 52
5 32
39.4 activities are conducted to help them un-
you and encouragement messages from employees and their family members.
derstand and promote the vision and core
values of LS C&S. Core Communicators
representing each domestic subsidiary
Work Diet workshop for teams
■ 2017
G&P LSEVK LS Buildwin G&P LSEVK LS Buildwin
■ 2018 are selected and they participate in our
To reflect the resolute commitment of management to a corporate culture pro- C.C meeting to share our corporate culture
moting work-life balance and to respond to changes stemming from a transition Overseas subsidiaries while making and implementing their own
in generations within the organization, it is essential to eliminate inefficiencies at I Organizational competence I I Organizational vitality I annual plan.
work. As a response, Work Diet workshops were held for diverse work teams. From 2 87.4 87.3 88.6 86.2
81.1 79.5 82.6 Meanwhile, a survey aimed for diagnosing
May to July, a total of 82 teams individually conducted a two-day workshop at the 75.9 78.4 79.4 81.8 78.2 79.2
72 72.7 their organizational competence and vital-
66.2 78.3 66.7 67.8
LS Group training institute or at their worksites.
ity was conducted for three domestic (G&P,
51.9
At these workshops, a total of 240 inefficiencies were identified at the head-office LS Buildwin and LS EV-Korea) and five
level and 640 at the enterprise level. In addition, 1,000 requests or expectations for overseas (LS-VINA, LSCV, LSHQ, LSCW and
cooperation among teams were raised. We have categorized these into eight areas LSCI) subsidiaries. Based on the result, im-
and have begun work with the pertinent teams on improvement measures. provement activities will be implemented
LSHQ LSCW LS-VINA LSCV LSCI LSHQ LSCW LS-VINA LSCV LSCI
at the subsidiary level.

Healthy and vital organization

To help employees concentrate on their work by reliev- the offices help them learn to deal with stress. In ad- Other programs for organizational vitality
ing stress at work and at home, we have instituted coun- dition, smoking cessation programs are being run at Following the previous year’s activities, “Core-up” activities were conducted and led by the Core Communicators
seling offices across all of our domestic worksites. Em- worksites to raise awareness of employee health. of each Business Group according to its particular needs. At the team level, a variety of activities, including birthday
ployees can receive support for job stress, interpersonal Starting from 2018, sandwich days falling between hol- parties, ‘lunch together’, ‘let’s compliment each other’, and team-based learning were conducted. LS Homepany
relationships, marital concerns, and childcare issues. idays are designated as company holidays. We are also programs were also provided at the company level with the aim of strengthening employee loyalty, such as Family
3 Happiness Camp, Dream Camp (for children), Go Camp (for adolescents), and Camp with Daddies. At these activi-
6
To help employees better understand their state of encouraging people to use all of their assigned annual
vacation days so that they can fully refresh themselves ties, LS C&S employees and their families joined in and gained a chance to come to further understand each other
mind and promote mutual understanding, we are
and restore their energy. Meanwhile, a system that and strengthen their family bonds.
operating programs including blood pressure tests,
stress diagnosis, psychological examination using powers down workplace computers outside of office In addition, overseas training for organizational vitality has provided for model employees since 2014. In 2018, a to-
drawings, dreamcatcher making, ‘chemistry between hours was implemented to encourage employees to tal of 81 employees participated in international exhibitions and conferences held in 16 countries in Europe, North
you and me’ couples counseling, diffuser making using concentrate on their work during business hours and and South America, and Asia. Participants reported that the training program gave them an opportunity to observe
natural aroma oils, and yoga lessons. For employees leave the office on time. global trends and refresh themselves through new cultural experiences and hoped this program will be extended to
with examination or test results that require attention, benefit more employees.
18 19
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report Corporate Governance / Risk Management

Corporate Governance Integrated Risk Management

Promoting management efficiency and transparency As an ever-wider variety of business is being conducted to provide products and services that meet different customer needs and the global
market rapidly evolves, unpredictable risks impacting business performance are on the rise. In response, we define key risks and pertinent
Auditor
management procedures. By preemptively managing risks, we aim to maintain management stability and soundness, promote corporate val-
We have one auditor in compliance with the related laws and articles of association in order to secure management transparency and legality.
ue, and create a friendly relationship with stakeholders, ensuring our foundation for sustainable growth.
To inspect and verify internal accounting and affairs, the auditor investigates overall financial status or requests accounting managers or sub-
sidiaries to immediately submit their sales reports as needed. In the general meeting of shareholders, auditor is selected and appointed among
those who have no reason for disqualification under the commercial law. Risk management system
Auditor profile : the profile details and background information of the auditor are specified in the published sales and business reports. Risk Management Committee Risk management organizations
The company-wide Risk Management Committee is the highest Our risk management activities are conducted by three groups: an
Enhancing shareholder value Board of directors (BOD) decision-making body that reviews the risk status and makes a de- execution team, monitoring team, and general management team.

Shareholder composition (As of the end of Dec. 31, 2018) BOD status (As of the end of Dec. 31, 2018) cision on response measures. The committee is led by the President The execution team implements action plans and takes response
Recom- Transaction Relations with the as the chairperson and the head of the Strategy and Planning Divi- measures when risks occur. The monitoring team makes a risk pre-
Appointed Respon-
Name mended with the largest and major
as by
sibility
company shareholders
sion as the Chief Risk Officer (CRO). Meanwhile, project bidding cas- vention plan at the Division or Group level and examines risks for
I Shareholder composition I Koo Cha-Yub Chairman - es are deliberated on in the Bidding Review Committee; the Copper prevention. When abnormal signals are detected, the team reports
Myung Roe-Hyun Internal President - Executive of the Futures Committee for copper management; and the Working-level them to the general management team. The general management
10.4 0.4 Ju Wan-Seob director BOD CSO - affiliate of LS
Investment Review Meeting and Investment Risk Review Committee team establishes a risk management plan at the enterprise level,
(full-time) Group
Lee Sang-Ho CFO -
for major investments. oversees its status, and operates the company-wide risk manage-

Board Meetings ment committee.

Risk Management Committee meetings
LS The Board Meetings are held on a regular basis according to the pre-es-
89.19 Meetings are held to review the risk status in detail, evaluate poten-
Minority tablished annual plan. Special meetings are convened for prompt deci-
shareholders tial losses and establish response measures on a quarterly basis
sion-making on major agenda items. In 2018, 18 board meetings were
Affiliated persons (unit : %)
(January, April, July, November). If necessary, special committee
held in which a total of 37 items were resolved, including the establish-
meetings are convened for which the monitoring team is required to
ment of a joint-venture sales subsidiary in Indonesia.
immediately provide the general management team with the report
Dividends
Evaluation and compensation on the risk and its impact on the business.
Dividends are determined from within available profit by consid-
Executives are evaluated in accordance with performance indicators
ering the management environment, investment needs for the
linked to the company’s business goals and evaluation criteria for fi-
sustained growth of the company, and shareholder interests. They
nancial and non-financial performance. Remuneration is determined
are paid by the resolution of the board of directors and the general
based on quarterly and annual evaluation results to increase accuracy
meeting of shareholders. In 2018, USD 8,407 thousand worth of cash
and objectivity. In regard to remuneration of the directors and auditor,
dividends were paid, and the company’s cash payout ratio based on
incentives are provided according to the evaluation results within the
consolidated financial statements stood at 11%.
amount approved by the general shareholders’ meeting. In 2018, the re-
2016 2017 2018 muneration limit at USD 6,350 thousand was approved in the meeting.
Chairperson: President
Cash dividends total (USD thousand) 84 84 84 (unit: USD thousand)

(Consolidated) cash payout ratio (%) 133.4 19.0 10.9 Total Average per
Person Note
remuneration person
Registered director 4 4,105 1,029 - CRO : Head of the Strategy
Audit Committee 2 36 18 - and Planning Division
BOD composition member or auditor
Directors are appointed at the general meeting of stakeholders. Total 6 4,141 689 -

Candidates are selected by the board based on their experience and *The above is the remuneration for the year 2018. The average remuneration per capita is based
on the calculation of the total amount of remuneration divided by the number of people.
expertise in industrial environments, finance, and law. As of the end *In the calculation, the remuneration for Director Lee Hak-Young, who retired during the period Construc- Legal Strategic Procurement Business
of 2018, the BOD features four internal directors. Chairman Koo Cha- Sales Production Quality Finance
from the start of the business year to working on the documents for disclosure, was included. tion Affairs Planning & Logistics Support
Yub was appointed chair considering his crisis responsiveness skills,
Director profile
expertise, and responsibility. President Myung Roe-Hyun is serving
The profile details and background information are specified in the
as a director.
published sales and business reports.
20 21
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report Risk Management

Integrated Risk Management

Risk management activities by type Operational risk Refining risk management criteria Examples used as criteria Risk (Y/N)
Penalties and fines handed down as administrative measures Y
In order to maintain the stability of the IT system, daily data backup
Defintion In March 2018, under a policy to refine risk management measures, Collusion/
Legal claims for payment or damage Y
for the entire system is conducted and the backup systems and data litigation
For LS C&S, risk refers to events that could degrade corporate value specific guidelines and examples were provided to help identify Incidental expenses for court decomposition or litigation (legal fees) N
are stored in a vault to prepare for disasters or accidents. Measures Debt Bad debts Y
and uncertainties that will or could impact our achievement of busi- risks. Classifications such as disaster, operational, and financial risks
in place to prevent the leakage of corporate and personal infor- Overdue debts N
ness targets. can feature room for subjective interpretation. To minimize sub- Overdue debts related to other issues, such as quality Y
mation include document encryption, authentication of external
jectivity, we devised six new categories: collusion/litigation, debt, Quality Construction loss due to disputes with customers or contractors Y
storage media, an approval process for exporting PCs, encryption
Disaster risk quality, withdrawal of business, subsidiaries, and miscellaneous. Construction loss due to cost overruns (including costs not reflected
in the quotation price)
N

systems, and firewalls. In regards to production, regular equipment

To prevent disasters and occupational accidents and minimize the In addition, examples of cases identified as risks were provided to Losses from inventory disposal due to a large volume of (unusual) Y
inspections are being conducted and a response manual has been defects in process (writing-down the value of inventory included)
damage when they do occur, we are conducting management ac- improve the efficiency of risk management and increase accuracy in
Inventory or loss from development and production activities (such N
established for any case of the disruption of equipment operation.
tivities including response policy formulation, inspection and diag- profit and loss estimations. as remaining PP, execution loss, development samples)
Quality claims raised by customers Y
nosis, and implementation of improvement measures. For accident
I System for personal information and corporate security I Withdrawal Asset impairment due to withdrawal of business Y
prevention at plants and construction sites, safety inspections are Risk management process of business
Subsidiaries Impairment of securities, liquidation loss, fund raising Y
carried out on a regular basis. At the same time, we have established a Technical security area Physical security area
Risk Identification Others Delivery delay, exceeding planned construction duration, and Y
management system and are maintaining a dedicated organization to unpredictable changes on the part of customers (such as contract
Integrated monitoring of possible
prevent and respond to emergency situations to prevent unexpected information leakage cases Intrusion At this phase, potential cases that may affect the company are iden- termination, bankruptcy, unreasonable requests)

detection Outer boundary Expenses or losses from ordinary business activities (test/certification N
accidents such as earthquakes from negatively impacting our efforts tified and then defined as opportunities or risks. Responsible teams fees, taxes, and additional cable length required at the start and end
Video General area of the manufacturing process)
to provide value to employees and customers. Even when production Leakage prevention surveillance host meetings to identify risks of each business process from quota-
Access Restricted areas
is disrupted by a disaster, we are still able to supply products from our control
tion to contract, production and delivery. I Process Map I
Controlled area
Asset import
overseas subsidiaries through cross-selling. In order to ensure that out PCs Serv- N/W DB APP
ers and export Risk Assessment Risk identification
subsidiaries provide comparable products, we operate an integrated Phase 1 and analysis
This is a phase of determining how much impact identified potential
Control Tower to support and manage the R&D, quality, and produc-
risks will have on our efforts to achieve goals. Qualitative or quantita-
tion technologies at our subsidiaries in a comprehensive manner. Managerial security area Phase 2 Risk assessment
tive methods are used in assessing risks. In the qualitative evaluation
Risk Category Item Impact Affected
Information asset management and evaluation system method, the likelihood of risk occurrence is indicated as high, moder-
Natural Natural disasters such as Suspension of sector Risk response
disaster typhoons, floods, earthquakes, production and sales All ate, and low while the results using a quantitative method is indicated
Setting management goals and
snowstorms, thunderstrokes
Security governance Security Personal information
in the form of frequency, percentage, and numerical value (amount). establishing strategies
management and
Accidents Fires and explosions loss due to fires, and Production (organizations and rules) audit
accident response system Phase 3 Devising response measures and
casualties, the suspension of
production and disruption Risk Response management index
of process operations Security training and change management system Implementing the measures
Disaster Risk response is a phase of establishing and implementing appropri-
risk Leakage of chemical Casualties and tarnished Production
substances (toxic materials) corporate images ate responses to eliminate or reduce identified risks. Risk responses
Serious accidents Causing victims and All
are largely classified into three steps: setting a goal and strategy; de- Risk monitoring
Phase 4
(including inhouse disruption of process Enactment and Report of infringe- Report and Response and Winning a (management index)
suppliers) operations revision of laws ment cases prevention investigation lawsuit vising measures and management index; and implementing them.
Others Wars and coups Disruption of process All

Risk monitoring
operations
Yes
Risk
Financial risk Legislative Government Reporter/Victim Ministry of the Court Risk monitoring is a phase of conducting a series of activities from No Management
body agency Interior Committee
We strictly prohibit currency and derivatives trading for speculative review to supervision, observation, and management in order to review
Managed by Importance / Yes
purposes beyond essential risk management. Since price fluctua- identify abnormal signs for the defined risks. Monitoring and gener- Urgency / New
responsible
teams occurrence
tions in raw materials heavily affect our profit structure, such risks al management teams check the status of risk cases and response
Other risks
are mitigated through futures trading. In particular, the Copper plans and share the results. No
Phase 5
Strategy risks are the chances that a company’s strategy will result in
Futures Committee regularly reviews related risks by sharing infor- Ad-hoc Risk Management Committee
losses due to changes in competitive environment or strategic part- Risk report and closing
mation, including copper commodity and futures related issues, op- Regular Risk Management Committee
ners or to a damaged reputation. Regulation risks could occur by vio- Risks are reported to management through the Risk Management
erational performance, and market conditions by period. In addition,
lating laws and regulations related to sales, environment, safety and Committee for their closing Based on the three criteria, importance,
to minimize risks stemming from to fluctuations in foreign exchange Taking measures based on the decision
health. We are proactively managing such risks through legal com- urgency, new occurrence, decisions are made on whether pertinent
rates, we implement a 100-percent foreign currency hedge policy
pliance activities since incompliance could have a serious impact on risks are reported to the committee. Once the risk case is closed, re- Evaluating the effectiveness and
when bidding on international projects. Our debt-to-capital ratio is
our business, such as business suspension and closing orders. reflecting improvement points
sults and completion date are documented.
reviewed on a monthly basis and improvement measures are taken
as necessary to maintain capital-structure soundness.
22 23
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report Opportunities in the Cable Industry

Opportunities in the Cable Industry

Cable business environment Mega trends

Increasing European investment in Growing global demand for electricity Increasing demand for new and renewable energy
telecommunications infrastructure
Led by France and Italy, investment in 5G network infrastructure Growth in the global cable market is expected to be driven by the With global environmental issues such as greenhouse gas emissions
in Europe has recently been growing. Telecommunications power cables needed to meet the forecast rising demand for new and pollution becoming increasing pressing, a variety of eco-
facilities in many European countries are outdated, and the speed and renewable energy and related equipment in the Middle East friendly energy policies are being formulated by the governments
of wireless internet is slower than in other regions. High-speed and Asia. Despite sluggish economic growth in China and anxieties of many countries. Germany has accelerated its nuclear phase-
telecommunications networks with 5G wireless are essential to over financial markets in emerging nations, demand for power out efforts since the Fukushima Daiichi nuclear disaster in 2011. In
prepare for the Fourth Industrial Revolution. In response, the cables is expected to steadily increase with the upgrade of power France, former president Hollande made a commitment to cutting
French government has announced a plan to invest in high-speed transmission facilities in the ASEAN countries and the construction the share of nuclear power by 50% and increasing the share of
networks prior to the 2024 Olympics in Paris. Investment is actively of offshore wind farms in the US, UK, and Northern European new and renewable energy. In addition as countries such as the
proceeding under this plan, with a goal of securing 8.5 million countries. According to research by our global support team, global UK, China, and Japan leading the trend toward green energy by
subscribers nationwide by 2022. The Italian government has also power cable demand is projected to reach an annual growth rate of implementing energy transition policies, the supply volume of
disclosed a plan to expand telecommunications infrastructure 3%, with ASEAN countries expected to record the highest rate. new and renewable energy, in particular solar and wind power, is
nationwide, which should boost the European optical cable market. growing significantly.

LS C&S established a sales subsidiary in France in April 2017. A man- In 2018, LS C&S achieved a record volume of orders received based We feel a great responsibility to address environmental issues
ufacturing subsidiary for optical cables was added to our Polish on businesses restructuring focusing on key products, including HV/ and participate in a wide range of related activities, including GHG
EV part plant with an annual capacity of 3 million fiber kilometers, EHV and submarine cables and global market strategies tailored emissions reduction and eco-friendly cable development, as part
equivalent to 7% of the European market. In 2018, we won 53 mil- to customer needs. In June 2018, we established a joint-venture of the response to climate change. In particular, offshore wind
lion euros worth of contracts in France and Italy. Moving forward, subsidiary with the Artha Graha Group in Indonesia, allowing us to power generation has caught our eye due to the relative ease of
we will continue our efforts to utilize our subsidiaries in France and expand our presence in the largest ASEAN cable market. Meanwhile, securing power generation sites and their capacity for scale. LS C&S
Poland to expand our presence and market share. in November 2018, our power cable plant in Myanmar started op- will supply 66kV submarine cables for installation at offshore wind
erations manufacturing overhead transmission lines and cables for farms in Yunlin County on the west coast of Taiwan by 2020. Careful
buildings. With our technological prowess, on-hand facilities, and attention is being paid to growing business opportunities as Japan,
production capacity, we intend to become a leading company in the China, and the US work on the revision of legal structures and im-
ASEAN market. provement of related systems along with increasing investment in
I Wireless internet speed (Paris vs. Seoul) I
offshore power generation.

140
I Cable demand forecast I I Forecast of wind and solar power generation I
(unit: GW)
120
(unit: 1,000 tons of conductors)
Country 2016 2025 2030 2035
100
Country 2018 2019 2020 2021 2022 Wind Solar Wind Solar Wind Solar Wind Solar
80 US 391 403 412 419 428 US 233 47 418 205 464 255 524 311
Europe 1,166 1,208 1,245 1,277 1,305 EU 320 107 562 157 693 178 835 200
60
GCC 1)
696 710 727 755 783 China 242 66 685 436 907 615 1,129 806
40 China 2,338 2,420 2,497 2,571 2,643 Japan 6 46 14 72 20 75 26 81
■ Uploading
20 ■ Downloading ASEAN 303 319 336 353 371 India 49 7 154 182 240 342 346 530
(unit: Mbps) Global demand 6,811 7,042 7,265 7,498 7,735 Others 131 30 359 212 513 362 687 543
0
Paris Seoul Source: Korea Telecommunications 1) GCC : Gulf Cooperation Council (Saudi Arabia, Qatar, Kuwait, Bahrain, Oman, UAE) Total(TWh) 981 303 2,192 1,264 2,837 1,827 3,547 2,471
Operators Association (KTOA) *Source: LS C&S global support team research *Source : IEA (International Energy Agency)
24 25
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report Sustainable Management System

Sustainable Management System

Sustainable management Sharing value with stakeholders (consolidated)
Strategy
In 2010, we established a mid-to-long term strategy and roadmap for sustainable management, focusing on 7 key topics, including customer
satisfaction, green management, social contribution, employee wellbeing, shared growth, compliance and fair competition, and ethical man-
agement. Next, a system to respond to ISO 26000 was implemented and roles and responsibilities were defined for seven working committees. Customers Shareholders and investors
In addition, the 2018 sustainable management activities of subsidiaries are included in this report. Starting from 2019, localized strategies to We pay a close attention to win the trust of We will do our utmost to improve profitability
promote sustainability at the global level will be formulated for activities tailored to the needs of respective regions. customers through quality management of by securing sales competitiveness and enhance
our products and services and strive to provide shareholder values by achieving robust business
unique value. In 2018, sales generated by cus- performance. Our management direction and
Roadmap for system implementation
tomers amounted to USD 3,756 million. business performance are disclosed through

Phase 1 Phase 2 Phase 3 public announcement, general meetings of

Communication channels: Corporate disclosure
Foundation building Internalization and promotion Integration and Differentiation shareholders, business reports, and company
system / Seminars for customers and meetings
(2010-2014) (2015-2018) (2019-) website. In 2018, USD 11 million was distributed
/ Business reports
to shareholders in the form of dividends, and
추진정책 Enhancing CSR operation, manage-
Establishing and implementing USD 45 million to investors in the form of interest.
ment and monitoring capabilities Implementing global CSR
a system for CSR strategies and
and promoting strategies at the strategies
expanding governance Communication channels: Corporate IR
enterprise level
전략과제 activities / Business reports / BOD Meetings /
- Establishing an organizational General shareholders’ meetings / Corporate
foundation at the enterprise level
disclosure system
: Setting up a consultative body; and - Strengthening a plan-implementa- - Integrating sustainability and man-
defining roles and responsibilities tion-check process agement strategies
for missions/key tasks of seven - Promoting the strategies to domes- - Developing localized strategies at
working committees tic and overseas subsidiaries the global level Employees Suppliers
- Implementing the system to re-
spond to ISO 26000 We strive to create an environment in which Achieving shared growth is not an option
our 1,944 employees are given equal op- but a must for laying a foundation for sus-
Organization portunities according to their abilities and tainability management. We will promote
contribute to our goal of becoming a global cooperation with our suppliers based on
The Sustainable Management Secretariat is in overall charge of this effort, and its seven working committees are carrying out tasks aimed at
leading company. As part of these efforts, the perception that their competitiveness is
increasing stakeholder value, such as discussion of CSR activities by working committees and response to CSR issues at home and abroad. In their performance evaluation and promotion a starting point to strengthen ours. In 2018,
addition, one-to-one meetings between the Secretariat and the working committees are being held to discuss the challenges they are facing in are conducted in a fair manner, and a variety USD 1,986 million was paid to suppliers for
conducting pertinent activities. Key issues and achievements are reported to the executive meeting, where decisions are made on implementa- of online and offline training programs are raw materials, energy, water, and repair and
tion measures to effectively respond to stakeholder needs. provided to employees to strengthen their other services.(non-consolidated)
Direction capacity. In 2018, USD 160 million was dis-
tributed to them for wages, employee bene- Communication channels: Supplier satis-
faction survey / Open discussion meetings /
Green fits, and training. (non-consolidated)
manage- Establishing action plans for seven working Shared Growth Council
ment committees in accordance with the enter- Communication channels: Monthly morning
Customer
Ethical prise-wide CSR roadmap assembly / Intranet / Cyber Reporting Chan-
manage- Planning
satisfaction nel / In-house training / Counseling office
ment
Local Communities
Sustainable We provide educational support and talent donation and
Management Implementing plans and sharing issues with participate in sharing activities to promote the prosperity
Secretariat the Secretariat (working committees).
of local communities. A variety of activities are conducted
(business Monitoring the progress and results of activities
Local strategy team) Compliance Sharing and Government in four domestic production sites in Anyang, Gumi, Indong,
communities manage- monitoring (Secretariat)
ment and Donghae, and overseas subsidiaries. In 2018, we donat-
The government establishes laws and systems to ensure
ed USD 447 thousand to local communities.
companies stably conduct business activities. We are mak-
ing every effort to fulfill our responsibility by complying
Establishing a system and developing Communication channels: Social contribution activities /
Shared with laws and regulations in good faith. In 2018, we paid
Employees Sharing activities by employees / Cooperation between indus-
growth evaluation indexes for effective performance
Performance USD 32 million worth of taxes and utility bills. try and academia
management management
system
26 27
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report Sustainable Management System

Sustainable Management System

Activities and responsibilities to promote stakeholder value

Throughout the production value chain, we closely communicate with stakeholders and reflect their requirements
in our business management activities. By considering raw material procurement from suppliers, pollutants
generated during production, and the range of value that our products bring to customers, we are striving to lay a
foundation for sustainable management for both our stakeholders and our businesses.

Corporate social
Enable Raw material
procurement
Production Use Reinvestment activities
the Cabled Raw materials procurement for
Product development, design and Customized products
Investment in R&D, Social contribution activities
World
manufacturing in six domestic and installed where needed and and social and legal
cable manufacturing, such facilities, and talent
fifteen overseas subsidiaries, and information for customer compliance through
as electrolytic copper,
construction and installation convenience ethical/compliance
aluminum, and
works at project sites management
compound

Domestic
and overseas
subsidiaries

21

Raw material procurement Production Use Reinvestment Corporate social activities

Responsibility _ Promoting shared growth Responsibility _ Providing a safe work Responsibility _ Contributing to energy Responsibility _ Contributing to the Responsibility _ Contributing to the
through transparent and fair trade with 331 environment, fair evaluation and rewards to 4,497 conservation and the development development of local communities development of local communities and
suppliers employees and complying with environmental of local communities by providing through increased employment, promoting the public good while reducing
Suppliers: domestic and international companies regulations products and information for customer and creating profits and enhancing social costs through legal compliance
supplying materials, electricity and water used for Employees: employees from LS C&S and its domestic convenience shareholder value through R&D Local communities: areas surrounding our
production, and services and overseas subsidiaries investment of USD 129 million Korean worksites in Anyang, Gumi, Indong, and
Customers: users of LS C&S products and
service, including electricity agencies, Donghae; the locations of our nine overseas
Shareholders and investors: those who
telecommunications service providers, manufacturing subsidiaries; and wherever our
make an investment in capital investment,
construction companies, shipbuilders, and large-scale projects are being operated.
R&D, and business operations.
device manufacturers.

129 447
R&D cost in 2018 Social contribution cost in 2018

331 4,497
Suppliers Employees
USD million USD thousand

*R&D and capital investment for LS C&S and its

subsidiaries
28 29
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report Materiality Assessment

Materiality Assessment
2018-2019 Key topics STEP 3 Finalizing

We conduct a materiality assessment on an annual basis to identify topics of greatest importance impacting our businesses and stakeholders A total of 10 out of the 30 topics identified through the material assessment have been selected as key issues. As we pursue our target of en-
at home and abroad. In 2018, a pool of topics was created utilizing our internal process, GRI Standards Index, ISO 26000, and Sustainable Devel- hancing shareholder value as a top priority, topics related to business management, such as strengthening quality competitiveness and devel-
opment Goals. Assessment results are reflected in the next year’s sustainability plan and report. Our 2018-2019 activities related to ten topics oping new technology and products were selected as key topics. In addition, ethical management and shared growth with suppliers were also
identified as highest priority are included in this report. selected as they are key to our business activities in order to achieve the goal of becoming a global leader in the cable industry.

Stakeholder’s interest
6.25
Topic selection process
Economic value
New technology
and products
STEP 1 STEP 2 STEP 3
Identifying Prioritizing Finalizing 5.0 Talent management

Work-life balance Securing future growth engines Ethical management

Fair evaluation and

compensation
STEP 1 Identifying 3.75 Compliance
CSR network for suppliers, management
Contribution to the development of
Selecting 30 topics by analyzing the company’s policies and strategies, benchmarking other companies, and checking press reports local communities,
On-site chemical management
Positive Quality and product
Nurturing talent in labor-management responsibility
local communities relationship
Services tailored to
STEP 2 Prioritizing 2.5 customer needs Shared growth with suppliers
Customer satisfaction
Considering employee survey results, interviews of nine working committees, and press reports
On-site waste discharge reduction
Environmental communication,
Respect for human rights
privacy protection GHG and diversity
Communication Product and packing Green product emission
Shareholder interest Business impact with suppliers materials recycling development reduction Risk management Social contribution
1.25 activities Workplace safety
The topics have been identified based on company policy items We analyzed and benchmarked the material assessment results of Communication with
considering the agendas discussed at the company-wide meetings, domestic and international companies in the areas of cables and local communities Advanced green management

pending issues, and the 2018 management policy and management energy. In addition, press report items were scored based on their
opinions regarding the policy, as well as on interviews with nine frequency of being reported in Korea in major newspapers, broad-
0.0
working committees and sales and support teams. For company cast news, and business magazines. The analysis indicates that oth- Business impact
0.0 2.5 5.0 7.5 10.0
policy items, new technology and products, ethical management, er companies paid close attention to topics such as shared growth
and securing and nurturing talent were considered most important, with suppliers and ethical management. Meanwhile the domestic
Key topics Reporting scope Page
while higher priority was given to topics including workplace safety, press placed greater importance on achieving financial perfor-
and respect for human rights and diversity in the interviews. mance and developing new products. Local Future
Customer Shareholder Government Supplier Employee
community generation

New Technology and Products ● ● ● ● ● 34

Customer First
Quality and Product Responsibility ● ● ● ● 44
5 4.7 Ethical management 5 9.4 E
 thical
management Social Contribution Activities ● ● ● 52

4 3.3 Compliance management 4 One LS C&S Shared Growth ● ● ● 56

Workplace safety 10
Respect for Human Rights and Diversity ● ● ● 62
3 4.7 Securing and nurturing talent 3 8.8 Social contribution activities
Compliance Management ● ● ● ● ● ● 66
Rule &
2 2.3 Shared growth 2 8.8 Securing and nurturing talent Responsibility Ethical Management ● ● ● ● ● ● 69

Workplace Safety ● ● ● ● ● ● 72
1 5.3 N
 ew technology and green 1 9 Shared growth
Talent Management ● ● ● 76
product development Expertise
Advanced Green Management ● ● ● ● 84
0.0 2.5 5.0 7.5 10.0 8.0 8.5 9.0 9.5 10.0
30 31
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report Materiality Assessment

Materiality Assessment
LS C&S and SDGs Area SDG targets 2018 activities and performance Page

* Promoting customer value with customized and

Ensure access to affordable, reliable, sustainable and differentiated products 33, 44
modern energy for all. * Satisfying the needs of global customers (quality)
The Sustainable Development Goals (SDGs) were set by the United Nations General Assembly in September
2015 as an effort to promote sustainability in the areas of economy, society, and the environment. SDGs con- Promote sustained, inclusive and sustainable economic
sist of 17 goals and 169 targets. We have set targets for achieving SDGs considering our business environment Customer growth, full and productive employment and decent work
for all.
* Enhancing technological competitiveness 34

and strategic goals and have conducted a wide range of related activities. We will actively join efforts to ad- First
Build resilient infrastructure, promote inclusive and sustain- * Strengthening businesses through R&D digital
dress global challenges and do our utmost to identify efforts that can contribute to meeting SDGs. 34
able industrialization and foster innovation. transformation

Make cities and human settlements inclusive, safe, resilient * Enhancing competitiveness in HV/EHV and submarine
34
and sustainable. cable products

Ensure healthy lives and promote well-being for all at all * Support for female employees
62
1 7 13 ages. * Employment of the disabled

Ensure inclusive and equitable quality education and pro- * LS Dream Science Class (science class for children)
52
mote lifelong learning opportunities for all. * Job Schooling program
Ensure access to
End poverty in all its affordable and Combat climate * Space for female employees / * Parental leave systems / *
forms everywhere clean energy change Achieve gender equality and empower all women and girls. LS daycare center 62

Ensure access to affordable, reliable, sustainable and mod-

2 8 14 * Electrical safety checks in traditional markets 52
ern energy for all.
Promote sustainable One LS C&S
*L  S Code of Ethics and Practical Guidelines (chapter 5.
economic growth, Conserve the Reduce inequality within and among countries. Corporate Responsibilities for Employees) 62
full employment and oceans, seas and * Respect for employee rights (including no discrimination)
End hunger decent work marine resources
* Training on procurement and subcontracting
Ensure sustainable consumption and production patterns. 56
* Subcontracting Review Committee
3 9 15
Promote peaceful and inclusive societies for sustainable
* No child/forced labor
development, provide access to justice for all and build effec- 62
* No discrimination
Ensure healthy tive, accountable and inclusive institutions at all levels.
lives and promote Protect terrestrial
well-being Build infrastructure ecosystems Ensure healthy lives and promote well-being for all at all * Activities for a healthy workplace
72
ages. * Workplace safety / * OHSAS 18001

4 10 16 * Activities for promoting safety at work

* Activities for a healthy workplace
Rule & Ensure sustainable consumption and production patterns.
* Safety and health management activities
69, 72

Responsibility * Official documents for cooperation to suppliers

Ensure quality Reduce Provide access to
education inequality justice for all * Ethical and compliance management training
Promote peaceful and inclusive societies for sustainable
* Upgrade of the standard form of contract and legal
development, provide access to justice for all and build effec- support / * Counseling center 66, 69
tive, accountable and inclusive institutions at all levels.
5 11 17 * Cyber Reporting Channel / * Evaluation of ethics

Strengthen Ensure inclusive and equitable quality education and pro- * Nurturing talent (leadership and job competence
76
Make cities and the means of mote lifelong learning opportunities for all. programs, and training support for overseas subsidiaries)
Achieve gender human settlements implementation and
Ensure access to affordable, reliable, sustainable and mod-
equality sustainable revitalize the global ern energy for all.
* Efficient use of resources 84
partnership
* Securing talent and promoting fair HR management
6 12 Reduce inequality within and among countries. (employment and evaluation) 76
Ensure sustainable
Expertise
* Operation of an environment management system
management of Ensure sustainable Make cities and human settlements inclusive, safe, resilient
* Efficient use of resources 84
clean water and consumption and and sustainable.
* Use of green materials
sanitation production patterns
* Efficient use of resources
Ensure sustainable consumption and production patterns. 84
* Use of green materials

* Response to climate change (reduction of GHG emissions)

Take urgent action to combat climate change and its
* Emissions and waste discharge management 84
impacts.
* Use of green materials
32 33
LS C&S OVERVIEW
2018- 2019 Sustainability Report + Annual Report

Ten Key Topics on C.O.R.E

One
LS C&S Expertise
· Supporting employees with
· Promoting social contribution
a sense of ownership in
to achieve shared and
their jobs to make a great
sustainable growth
achievement together
· Establishing a system to
· Strengthening
achieve shared growth in a
environmental management
sustainable manner
for zero accidents and
· Respecting the human rights pleasant work environment
and diversity of our employees and contributing to a
and pursuing global standards green society by reducing
greenhouse gas emissions

Rule &
Customer Responsibility
First
· Setting a vision for the compliance
working committee: spearheading
· Strengthening competitiveness
the efforts for promoting compliance
and securing future growth
management and reducing risks to
engines by developing new
zero
products and technologies
· Strengthening the foundation for
· Providing products and
ethical management and raising
services that meet customer
employee awareness
expectations and needs
anytime, anywhere and under · Ensuring a healthy workplace and
any circumstances achieving the goal of zero-accidents
by strengthening safety activities
34 35
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Customer First

VSC-type DC 320kV XLPE submarine cables

●

CUSTOMER FIRST Product overview Product concept

Strategic direction With green technologies gaining ground What is a VSC-type DC XLPE cable?
as new growth engines, photovoltaic and

New Technology
Strengthening competitiveness and securing future VSC and LCC types are used for DC trans- VSC-TYPE DC 320KV XLPE
growth engines by developing new products and wind power generation is on the rise. How- mission, depending on the power conver- SUBMARINE CABLES

and Products
technologies ever, these types of electrical generation sion method and XLPE materials. Polarity
require long-distance transmission due to reversal is required for LCC DC transmis-
Key tasks
their geographical limitations. AC (alternat- sion, but not for VSC. Depending on the
Enhancing technological competitiveness ing current) transmission presents advan- polarity reversal, different electrical prop-
Enhancing technologies in HV/EHV systems tages such as simpler power conversion erties are required for VSC and LCC DC XLPE
Strengthening the portfolio of submarine cable products and lower initial investment. Unfortunately, and different approaches must be taken in
Promoting customer value with customized and it results in ever-greater power losses with material development. If AC XLPE insulat-
differentiated products transmission distance. On the other hand, ing materials are used as-is in DC cables,
Developing high value-added cable systems for higher initial investment is required for DC by-products from cross-linking agent de-
Product advantages
telecommunication (direct current) transmission due to the As the size of this product 70% of
composition can serve as carriers, causing
Securing product groups to respond to new and need for inverters and converters, but less that of AC, less insulating materials
space charge accumulation in an insulator.
renewable energy are required. Its power transmission
power loss is incurred. As a result, more This leads to a higher electric field, reduc- efficiency is also higher than with
people are turning to DC over AC, and DC ing insulative properties. AC due to reduced power loss. In AC
Performance in 2018 cable systems are being actively developed transmission, a minimum of three
worldwide. In this regard, our VSC-type DC 320kV XLPE lines of cables are needed. Just a
Strengthened ·P
 assed long-term reliability tests for
competitiveness cables are formulated with a base resin, single line of cable can be used for DC
in HV/EHV and DC 500kV (MI1))
In line with this trend, LS C&S initiated its agents and antioxidants are cross-linked by transmission, meaning fewer cables
submarine cable · Developed inter-array cables for
VSC DC 320kV XLPE cable systems project and less space for transmission lines
products
offshore wind power cross-linking PE molecules in long chains
in 2015. In February 2017, we became the are required. As DC cables are unlimited
in order to withstand high temperatures.
Enhanced in terms of transmission distance,
· Developed multiple-conductor cables first company in Korea to acquire a KEMA Moreover, existing AC XLPE additives and hundreds of kilometers of land or
customer value and connection materials for 5G
by expanding Type Test certificate in accordance with organic additives are optimized to mini-
networks dozens of kilometers of submarine
the product CIRGE (International Council on Large Elec-
portfolio · Expanded the scope of FA (Factory
mize space charge, providing XLPE with power transmission line can be
tric System) recommendations. In addition, enhanced electrical properties and excellent installed, and construction costs are less
Automation), railway and military-
related products a PQ test was conducted at the KEMA Labo- compared to when using AC products.
dielectric characteristics.
ratories facility in the Netherlands from Au- Furthermore, no electromagnetic
· Secured onshore and offshore cables
waves are generated, reducing
gust 2017 to November 2018. This product
Strengthened the potential for interference with

“
·E
 stablished a R&D project
the business is expected to be applied to the building of
management system telecommunications lines and devices.
through cross-border power grids and super grids.
R&D digital ·B
 uilt a platform to formulate and
We focus on the research and development transformation develop cable compounds
·D
 eveloped a cable information
of: power transmission and distribution cable
monitoring system utilizing IoT
systems, construction technologies and
1) MI : mass impregnated
submarine fields; network solutions for the wire
and wireless fields; industrial, automotive, and Targets in 2019

special cables and cable materials. In addition, · Develop new products and technologies to enhance
global competitiveness
we develop power IT solutions to diagnose and
· Implement strategic tasks for digital transformation at
operate transmission and distribution power the enterprise level
and establish power networks for offshore wind · Secure future growth engines by developing new
products and expanding businesses
farms thereby enhancing customer value.
36 37
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Customer First

DC 500kV MI underground cable systems 66kV inter-array cables

● ●

Product overview Product concept Product overview Product concept

DC transmission has become an important Depending on the insulating materials, Recently, new and renewable energy has Offshore wind power cables are used with
topic with the recent trend toward large-ca- HVDC cables are classified as MI cables been increasingly emphasized as global fixed platforms in water of less than 50 me-
DC 500KV MI 66KV INTER-ARRAY
pacity and HV/EHV cables. It results in less (mass impregnated paper cables) or XLPE UNDERGROUND CABLES attention has turned to environmental pol- ters and with floating platforms in depths CABLES
power loss and shows advantages over AC cables (cross-linked polyethylene). MI ca- icy. In this regard, offshore wind power has exceeding 50 meters. Since fixed-type wind
for long-distance transmission in cross-bor- bles have traditionally been used for DC been taking center stage due to the relative farms are generally 600MW or higher, 66kV
der grids and new and renewable energy. transmission since long drum-length cables ease of securing such power generation cables are an appropriate response to this
In particular, as HVDC (High Voltage Direct can be manufactured and they show stable sites and their capacity for scale. As part of increased capacity. Floating-type wind
Current) allows the transmission of a large insulating performance. Manufacturing MI its phase-out of nuclear technologies, the farms are expected to be validated by 2021
volume of electricity over great distances, cables requires a high level of process tech- government of Taiwan has been investing through a pilot project being conducted. In
it is considered a core technology for a nology, including in winding and impregna- heavily in new and renewable energy, in- addition, dynamic properties are required
planned Asian Super Grid potentially con- tion. In particular, the winding process must cluding plans to build 5,480MW of offshore of cables for connecting floating bodies and
necting power networks in the two Koreas, be conducted manually and is heavily de- wind farms by 2025. they must be carefully designed and test-
Mongolia, China, Japan, and Russia. pendent on the proficiency of the workers Product advantages ed. Our products supplied to the offshore Product advantages
For this project, LS C&S will supply 170
involved. This product can be used at a higher wind farm project in Taiwan are intended As the scale of wind farms has
LS C&S became the first company in Korea kilometers of 66kV submarine cables for
maximum temperature (80℃) than for fixed-type platforms and have increased grown, the capacity of inter-array
to develop a DC 500kV MI underground The kraft paper previously used in our poly- installation at offshore wind farms in Yunlin
Kraft cables (55℃) and possesses a voltage. cables has increased from 33kV
cable system insulated with polypropylene propylene-laminated-paper MI cables has County on the west coast of Taiwan. In the
higher power transmission capacity. to 66kV. The efforts at developing
laminated paper. In the first domestic HVDC been replaced with polypropylene-lami- past, 33kV cables have commonly been 66kV cables have been mainly
To minimize the environmental im-
project, this product has been implement- nated paper with a triple structure of kraft pact, the size of the electric power used for wind power, but the application of undertaken by European
ed along the 35-km span between the paper-polypropylene film-kraft paper in conduit pipes has been minimized. 66kV cables is on the rise with the growth of companies.
North Dangjin Converter and the Goduk order to increase transmission capacity and large-capacity power generation. As LS C&S Our product allows the stable
Converter to facilitate the supply of three better withstand voltage. becomes the first in Asia to provide 66kV in- operation of cables: compounds
GW of power. The reliability of the product ter-array cables, it is expected to gain an ad- that inhibit water treeing

has been assured through certification vantage in the next-generation wind power are used so that the insulative
properties remain robust even
(Type Test) by the Korea Electrotechnology market.
when seawater penetrates the
Research Institute. In addition, a PQ test
surface of an insulated cable core.
over six months was completed in March
2018 to guarantee a 40-year product life.
38 39
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Customer First

High-performance HV/EHV cables Wireless and remote PD monitoring systems

● ●

Product overview Product concept Product overview

As transmission capacity grows in an envi- In our product, insulators have become There has been growing demand for sys- systems and provides services ranging from
ronment of demand for cable systems with thinner compared to previous HV/EHV tems to monitor power transmission lines installation to monitoring. Our experts re-
HIGH-PERFORMANCE WIRELESS AND REMOTE
a compact, cost-saving structure, we must cables through the application of special- HV/EHV CABLES and ensure stable operation. In this regard, motely analyze and report any abnormal CONTROL PD MONITORING
actively respond with differentiated strate- ly-prepared materials and advanced man- efforts are being made to apply PD (partial signals, and the data can be accumulated SYSTEMS
gies. Improved electrical properties in mate- ufacturing technology. For example, our discharge) monitoring systems on-site so to produce more accurate analyses for the
rials and advanced process technology are 220kV HV/EHV underground cables have that operators can plan cable replacement next diagnosis.
allowing us to devise HV/EHV underground insulators 25% thinner than others of the by observing PD signals before failures oc-
cables able to withstand a high level of elec- same degree of insulation. This was mainly cur. However, in order to implement such
trical stress. made possible through established statisti- systems, additional optical communica- Product concept
cal analysis theory and validation methods tions cables need to be installed along the Its signal detection device is powered by
Our high-performance cables are designed
that allow us to predict and confirm the reli- power transmission lines and operators photovoltaic or energy harvesting modules
to maintain optimal insulation properties at
ability and service life of the product. must independently conduct detailed anal- and the data is transmitted to a cloud server
line voltage. Any void or foreign substances
yses on the signals. Moreover, they cannot using 4G networks. Our PD experts analyze
Above all, this product is the outcome of our
that could cause serious defects in insu- Product advantages Product advantages
currently obtain and store the signal data. the data stored in the cloud server and
efforts to meet market demands for reduc-
lators are minimized. These cables have Thinner insulators create a more Since this product is wireless,
provide customers with analysis result and
ing the volume required for insulation.
been proven to function stably at operating compact cable structure that allows To resolve these difficulties, LS C&S has de- there is no need to install
device operation status.
temperatures. State-of-the-art cross-linking an increase in power transmission veloped wireless and remote PD monitoring telecommunications and power
technology and materials that do not cause due to reduced transmission loss. cables. High-maintenance servers
protrusions in the semiconductor layers are In addition, the smaller external do not need to be installed on-
I Product advantages I
used to keep residual insulator stress to a diameter reduces product weight, site and can be carefully managed
allows long drum-lengths cables, by LS C&S. As our experts with
minimum level. In particular, insulators have Requirements Monitoring service
and ultimately leads to drastic cuts pertinent skills and experience
become thinner and now allow our product
in construction costs and durations. conduct data analyses, customers
to withstand a high level of electrical stress.
can be provided detailed and
At the same time, fewer materials can be
accurate monitoring results.
used in cable manufacturing to improve en- Factory Communic- Server Remote
AC power
server action line maintenance monitoring
vironmental friendliness.

Expertise Valid Emergency Periodical

analysis maintenance alarm report

I Conceptual diagram of the system I

GIS1) terminations Solar powered or Cloud Solar Energy harvesting Outdoor

(Indoor/Outdoor) AC powered (Internet) powered module termination

1) Gas insulation switchgear Cable joint

40 41
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Customer First

Multiple Fiber Cables EV products

● ●

Product overview Product concept HV/EHV cables

5G networks, the telecommunications What is a micro air-blown cable? HV/EHV cables
infrastructure to support the Fourth Indus- Micro air-blown cables are laid inside micro MULTIPLE Due to the rapid expansion of environmentally-friendly vehicles, the EV PRODUCTS
trial Revolution through ultra-high-speed ducts using air-blowing installation equip- FIBER CABLES automotive market is expected to grow steadily. As some European
connections and minimal latency, demand ment. The cable laying cost is significantly car makers have shifted focus from cars with internal combustion
multiple high-density conductor cables. HV/EHV cables
lower than with hand installation. In addi- engines to eco-friendly or hybrid electric vehicles, the demand for
Product advantages
tion, enhanced utilization of existing ducts related products is rising apace. In this regard, LS C&S has devel-
5G networks provide up to 20-times faster This product was developed in
makes it easier to expand access networks. oped and launched an HV/EHV product line-up and cables with
speeds, 10-times higher connectivity, and accordance with ISO specifications
enhanced oil resistance that meet the requirements of automakers
10-times lower latency compared to 4G. The What is an ADSS cable? and has long-term heat resistance
and automotive electrical parts manufacturers.
sophistication of the networks is the key to properties. Its double-shielded
ADSS stands for all-dielectric self-support,
5G technologies. As societies around the design blocks noise, and its flexible
which is used for overhead cable laying. It Product concept
world experience a digital transformation, and oil-resistant PO materials
is nonmetallic and requires no sheathing With the spread of hybrid electric vehicles, the market for HV/EHV
the demand for high-density multiple fiber are highly applicable to electric
wire, so it costs less when laying cables Product advantages cables for such vehicles is also expanding. This product designed to vehicles.
cables is on the rise to meet the storage,
and earthing is not required. No additional Our multiple conductor cables with ensure the safe transmission of high-capacity voltage can be used in
processing, and operation needs of big
tension materials are needed, which makes enhanced fiber integration precisely hybrid electric, plug-in hybrid electric, and electric-only vehicles.
data.
it lightweight and compact. As a result, we meet customer needs. These
Charging cables
were able to develop cables that are easy to lightweight and easy-to-lay cables
In response to this trend, LS C&S has de- Product advantages
lay and cost-competitive. with a reduced external diameter Charging cables
vised advanced optical cables, including TPE insulating sheath materials
ensure ease of handling. All-dry
Max 864F(Fiber) with a micro-unit structure Product overview are used to enhance heat- and
What is a micro unit cable? micro unit technology allows us to
and Micro ABC, ADSS, and 396F with a With the increasing number of electric vehicles on the market, it is wear-resistance. The elevated
significantly reduce cable laying
Low-smoke zero-halogen or PVC is applied expected that the scope of charging-related business will continue
loose-tube cable structure. Furthermore, time compared to using existing
durability of this product makes it
to a micro unit tube protecting optical fi- to expand. Conventionally, people must go to charging stations suitable for use in a high-mobility
connective materials have been developed jelly-filling micro unit products. As
bers. The resulting cable is easy to handle for rapid charging. In response, LS C&S has launched standardized environment. In addition, meeting
to offer comprehensive solutions. for connection materials, rental
since no additional tools are required for charging cable products that can connect to general electrical out- the UL, EN, and IEC standards
costs are set according to the
cutting the tube. lets and allow users to conveniently charge their cars without a ded- provides us with an advantage
volume of connecting materials.
for entering US and European
To help our customers reduce icated charging station.
markets.
operation costs, we have developed
materials with a smaller volume Product concept
utilizing gel-block technology for This allows going from a discharged to a fully charged state in 4 to 5
waterproofing. hours. The 6 or 7kW cable can connect to any 220V outlet, allowing
users to conveniently charge their EVs.
42 43
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Customer First

Ring wire for solar modules Underwater cables for floating solar modules
● ●

Product overview idly shifting from ribbon-type to round-type Product overview Product concept
wire. Round wire is expected to be applied
Eco-friendly and renewable energy is quick- Electricity demand has been increasing What is an underwater cable for
to 50% of newly installed modules by 2020,
ly replacing coal and oil as one element of RING WIRE FOR SOLAR worldwide due to economic development floating solar modules? UNDERWATER CABLES FOR
and the sales of this product should only
the response to greenhouse gas emissions MODULES and rising standards of living. As a result, F-CV cables are commonly used in solar FLOATING SOLAR MODULES
continue to grow.
and the climate change they could cause. environmental concerns are growing and modules installed on land. However, issues
Great attention has been focused on de- the importance of new and renewable en- such as water treeing can occur if they are
Product concept
veloping technologies and manufacturing ergy has become greater than ever. Since applied to floating solar modules. Consid-
products that minimize carbon dioxide. In Usage this product is installed underwater, there ering that water treeing hampers the long-
this regard, we have been focused on new This product sends the electricity generated is no need for trenching or for damaging term performance of cable products, our
and renewable energy as a growth engine, by connecting solar cells to a junction box, wilderness or farmlands. Power generation underwater cables make use of rubber
and eventually devised solar ring wire. In the power collector for solar modules. efficiency using floating solar modules is insulators. To minimize water infiltration,
2015, we brought this product to market 1.4 times greater than on land due to the water-resisting sheath materials common-
Composition
for the first time in the world when it was cooling effect of the water. Idle reservoirs ly used in submarine cables are applied.
applied to solar photovoltaic modules by LG Solar wire comes in two types: ribbon and can be utilized to create power generation
Product advantages Eco-friendly materials are used in accor- Product advantages
Electronics. As a primary supplier, we have round. Its conductor is made from copper facilities.
The product’s excellent straightness dance with related laws and regulations for We offer structural designs
been providing this product to Hanwha Q plated with SnPb solder.
has reduced the rate of defects due resource protection, which has allowed us according to the intended
As electricity generated from floating so-
CELLS, the world’s largest manufacturer to misalignment. Since this product to have this product certified. environment for floating solar
Main characteristics lar modules needs to be sent to electrical
of solar cells, since 2017. Starting in 2018, has improved low-yield strength modules (such as in reservoirs
As solar cells grow increasingly thinner, it is and uniform plating thickness, it has rooms, underwater cables are run from be- or the sea). The durability of our
we have been supplying it to AU Optronics
necessary to use solar wire with low-yield greatly contributed to improving low the modules to the shore. These cables products has been tested to ensure
in Taiwan through the production part ap-
strength and uniform plating thickness to workability and product reliability for are exposed to water for long periods and long-term reliability. In addition,
proval process.
prevent cracking and ensure a stable con- customers. In addition, technological they shift along with the movement of solar this product can be supplied in the
The trend in the solar module market is rap- nection between the cells and wire. cooperation with tabbing machine modules. Therefore, it is essential that this form of optical-metal composite
manufacturers has allowed us to product possesses the durability demanded cables containing optical or signal
develop customized products and by the dynamic underwater environment. cables, which facilitates their
offer optimal specifications tailored installation. We provide customers
Our product has passed durability tests that
to the needs of the production with tailored products for their
apply reliability evaluation technology de-
system of each customer. specific environmental conditions,
signed for mobile and undersea cables, and
including with customized flexibility
its use is expected to grow both at home
and armoring materials.
and abroad.
Ring wire for solar Connecting a solar cell Ring-wire-applied
modules and ring wire module
 2
44 45
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Customer First

Satisfying the needs of global customers

CUSTOMER FIRST Strategic direction
Providing products and services that meet customer Activity 1
expectations and needs anytime, anywhere and under

Quality and Product

any circumstances Certification by area

Responsibility
To operate a quality management system tailored to customer needs worldwide and each
Key tasks product group, VoCs, pertinent laws and regulations, and global standards are identified and
Focusing on computerizing our quality management reflected within the system
system to meet the requirements of global customers.
Satisfying the needs of global customers
We are running a risk-based quality management system in line with ISO
Acquiring certification of a quality system by area;
Energy 9001:2015. For construction area. A dedicated quality system for construc-
establishing an enterprise-wide QMS1); conducting real- ISO 9001,
transmission / tion has been operated based on OHSAS 18001 certification. To meet cus-
time quality risk management KEPIC
Construction tomer requirements in Europe, in particular, we have worked on measures
Strengthening efforts for quality management for enhancing quality system in our energy business and applied them in
Conducting innovation activities (Speed up! 2018); the QMS IT system.
securing product quality evaluation technology; providing
quality training
Operating the quality control tower Activities are conducted to meet requirements on risk assessment and
IT TL 9000 disaster recovery as for optical communications products. In 2018, we
Setting the criteria for overseas subsidiaries
Conducting ‘level-up’ activities for suppliers obtained TL 9000 R6.0.

Performance in 2018
Activities have been conducted to ensure product safety in line with the
· Obtained additional quality system
Satisfying the IATF16949 certification, the Product Liability Act and the end-of-life vehicle
certification (two cases)
needs of global Automobiles IATF 16949 directive by the German Automotive Industry Association. In 2018, we
customers · Established a QMS IT system
acquired the IATF16949 certification (wire, tubes and magnet wire for
· Managed quality risks and VoCs in
automobiles).
real-time

Strengthening · 176 cases for quality circles

CPR, railways, Our products are globally certified by respective industries, including con-
efforts for quality · 33 cases for evaluation technology explosion
management struction, railroads, and shipbuilding, and have obtained additional certifi-
Others protection and
· Quality School cation in the areas of construction products regulation (CPR), railways, and
classification of
ships blast protection.
Conducting · Compared quality by product
quality
group among the head office and
monitoring
subsidiaries

“
activities
for overseas · Established standards for quality
subsidiaries index management
As our cable products are used for power and Activity 2

telecommunication transmission for industrial Targets in 2019 Establishing an enterprise-wide QMS IT system

infrastructure and people’s lives and applied to a A QMS IT system is designed to organically connect and manage data quality at the enter-
· Satisfying the needs of global customers: prise level with the goal of utilizing information as an asset and minimizing quality costs.
variety of power devices, we are proactively conducting review the feasibility of upgrading the QMS IT system
Starting from January 2018, as-is analysis, to-be process design, and program development
quality management activities to increase reliability and implementing the system in overseas subsidiaries
were conducted for system implementation. The system was officially launched in August
· Promoting proactive quality management: manage
and meet the need for eco-friendly products. In 2018, laying the foundation for our establishment of a global quality management system.
production lot; meet CTQ2); strengthen 4M control;
addition, considering the impact of our products has implement a QC Patrol function by product; secure core
evaluation technology
on local communities and the country, we establish a Jan. 3, 2018 Mar. 2018 Jun. 2018 Jul. 2018 Aug. 2018 Sep. 2018
· Operating a quality control tower: establish a quality Data accumulation (from 2019)
risk management system across the entire processes risk report process for overseas subsidiaries; prepare a
Project kickoff Integration test; training;
company-level business management index (Q-Cost) System development System launch;
and strive to secure the best possible product quality to meeting; as-is briefing sessions for System upgrade
and monitoring process; secure outsourcing quality (unit tests) system stabilization
analysis; to-be design employees and suppliers
meet the needs of our customers and stakeholders.
1) Quality management system
2) Critical to quality
46 47
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Customer First

I QMS IT system I Risk

Key improvements made through the system
Customer Product Issue Cause Action Worst Nomal Best Closed/Open
Customer claims Company A 220kV Damaged exterior Stabbed Replacement 100 10 0 Closing
Shop floor QMS IT System Interface Internal failure Company B 345kV BD Connection failure Training 500 50 10 Open
Customer claims Company C FA cables Cracks Mishandling Package enhancement 1,000 100 30 Open
QMS IT System
Real-time analysis and utilization WeLS
1. Monitoring Q-Cost perfor- Inspection
Data • Quality risks are classified as S, A, B, or C grade in consideration of their impact • Monthly monitoring results of key risks and VoCs are
mance and key issues Inspection
Q-Cost CTQ
management e-Proc and urgency. S- through A-grade risks are immediately reported in the form of a reported to management at an enterprise-wide meet-
2. Analyzing in real-time CTQ 5W1H report to the management and to stakeholders. ing to promote quality production. The progress of the
Faulty Risks of
and control charts utilizing Correction Inspection of
product NCR customer related issues are tracked in the quality meetings of
data measures optical fibers
management claims • In the QMS IT system, S-, A-, and B-grade risks are numbered to monitor their
each Group.
3. Monitoring and tracking the
Standards Project
Inspection of status in real-time. Under the supervision of the quality division, those risks can
state of progress in address- optical cables
management management be tracked and managed until a resolution is achieved. • To prevent the reoccurrence of similar risks, resolved
Audit
ing NCR and customer claims
management QPIS risks or VoCs that should be referenced by other
4. Reflecting changes and
• C-grade risks, ideas, and feedback from customers and stakeholders are being
Groups or during product development are placed on
improvement measures instantly shared on the VoC and issue management pages within the system.
OTIS the ‘lessons learned’ list in the QMS IT system.
through the comprehensive Standards
Big Data
operation of up-to-date man- management BIS I Quality risk classification I
agement and technology
standards Grade Criteria Examples of risks
S ·Risks that could cause a serious problem for Causing serious business issues such as contract termination or reduction
5. Monitoring the progress The scope of the QMS IT system is: 1) development/before-production quality; 2) material customers, the company, and the society Causing troubles in society, violating laws and regulations and going
at the construction sites at quality; 3) production quality; 4) test and management; and 5) customer quality manage- ·Risks that could impact the overall business against ethical management
home and abroad and stor-
ment. Data is being accumulated for enterprise-wide quality data management. A ·Product quality issues that could cost USD 8,944 Causing casualties in building fire
ing key information in the and more Accidents impacting social overhead capital facilities
database. ·Incidents that could lead to a product recall or to
Key improvements have been made during the implementation of the system. Data monitor-
suspending production/shipment
ing and statistical analyses allow us to track and quickly respond to any quality issues. Root-
B ·Product quality issues that could cost less than Causing environment issues such as harmful chemical spills
cause analysis and follow-up processes have been strengthened. In addition, up-to-date USD 8,944 (approved by a division head) Causing conflicts with local communities
company standards, enhanced search features, and an audit pool are significantly helping C ·Product quality issues that could cost less than Product liability issues and product recalls
our employees to better respond to our customers. USD 894 (approved by a team leader) Causing the stop of customer production lines and defects in a large quantity of products

Activity 3 I Customer claim risks and VoCs management I

Real-time quality risk and VoC management

VoC received Customer claim received Issue received
Since our products serve as a basis for industrial infrastructure and people’s lives, addressing The links of pertinent
VoC received issues provided for a Issue received
any product quality risks is critical, as is ensuring that there is a response system to swiftly
Identified Yes customer claim occurred
deal with any possible issues. In this regard, we implement preventive risk management pro- VoC received as a risk Issue received
cesses through which potential issues can be identified in the design review phase to mini- Quick reporting system
No
mize risks throughout the entire process. In addition, a risk tracking management system has (organization for response)

been implemented to mitigate losses if pertinent risks pass through into quality issues. Cause analysis
Details of VoCs from
customers of the QA,
Preventive risk management Risk minimization sales, and develop- Measures
Issues raised by cus-
ment teams are regis-
tomers are received and
tered with the QMS IT Validation
Product Production / Occurrence of Real-time check registered with the QMS
development Construction issues (QMS) Spreading lessons system and considered
IT system for history
learned and when identifying im- Revision of standards
DR1-DR6 risk Use of risk Risk report Monthly inspection preventing re- management
provement tasks.
management checklists (enterprise-/
(S/A/B/C)
group-wide quality occurrence
plans
meetings)
All of customer claims and VoCs are managed for customer satisfaction (utilizing the QMS IT system)
48 49
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Customer First

Strengthening efforts for quality management

Activity 3
For product quality management, CTQ and CTP tasks by product/process are identified. The tasks
Quality training
are incorporated into improvement tasks for Six Sigma, quality circle activities and engineers.
To resolve any potential quality issues through risk management, in-house or external programs,
Activity 1 on-the-job training, and task force activities are all provided. In particular, employees directly re-

Innovation activities on site in 2018 (Speed up! 2018) sponsible for QA, development, and production all attend annual Quality School events.

‘Speed Up!’ was the 2018 theme under which activities in terms of quality, cost and delivery In 2018, we focused on improving our quality process in line with the revision of IATF 16949
were conducted devised based on the results of the last three years to achieve the manage- and on operating a Quality School that provides key personnel in each function with consul-
ment targets of the year. Our motto for 2019 is ‘Clean Factory!’ as we work to achieve the goals tation and training. In particular, a course providing qualifications for supplier inspectors was
of reducing product losses and internal failure costs and ensuring an accident-free workplace operated and four employees from the procurement and production management teams
through safety promotion. To support the innovation activities of LSHQ, our subsidiary in were qualified in supplier evaluation.
China, employees from the head office were dispatched to check the state of progress and pro-
vide training. In the second half of 2019, LSHQ will visit the head office to present their achieve- A total of 109 employees are currently serving as quality examiners, internal inspectors and

ments at a performance-sharing meeting. supplier inspectors. Considering that their actions can directly impact our product and pro-
cess quality, their qualifications are re-evaluated every year through the QMS IT system.
I Performance in 2018 I
I QMS IT inspector and examiner management I
Theme task Clean task Safety task Total
Case(s) 128 22 26 176

Activity 2

Securing evaluation technology for product quality

I Purpose and action plan I
To prevent the potential impact of product defects on industries and people’s lives, we
continue our efforts to develop evaluation technologies. In response, we have secured tech-
Curriculum Target Date & Venue
nologies related to long-term reliability, electrical and material tests to ensure high product 1
Awareness Global quality management All employees July morning assembly
quality and win the trust of customers. Meanwhile, we are developing available substitute
raising - Risk Thinking, development quality, improvement at - Head office, and
characteristics. worksites, preventive management, and processes auditoriums at the Donghae
and Gumi plants
I Evaluation technology secured in 2018 I
I Evaluation technology secured I Quality management in development Engineers (QA and development) Jul. 4-5, Jul. 18-19
(2015-2018) (unit: case) 2 - Changing global trend in quality management - (Mandatory) Internal inspectors, and - Gumi training center
·HV/EHV PQ test monitoring system Understanding systems trainees from the QA team
45 Energy - Quality management in product design (APQP, CP) - (Optional) Engineers responsible for
·HV/EHV Quality evaluation system for superconducting cables of global quality
(10cases) systems - Failure mode and effects analysis (FMEA), and development and R&D
35 ·Submarine Integrated management system for DC cable test
production part approval process (PPAP) Engineers (QA and production) Gumi training center
33 voltage, current and temperature
29 Quality management in production - (Mandatory) Internal inspectors, and - Gumi training center
- Changing global trend in quality management systems trainees from the QA team
Distribution ·Distribution Long-term service life diagnosis system - (Optional) Engineers responsible for
- Production process development and management (CP)
/ Overhead production
·Overhead Composite core bending tests - Statistical analysis and SPC measurement system (MSA)
(8cases)

·Optical fibers Data processing software for optical fiber inspection Understanding of IATF Employees responsible for certifying Oct. 18-20
Telecom 3 - Understanding of IATF standards and GAP diagnoses automobile parts (QA, QM) - Gumi training center
-
equipment
-munication / IATF - Risk analysis and measures - (LS C&S) Indong and Gunpo QM
·Automotive wire Evaluation of cycling tests under complex environment
2015 2016 2017 2018 Industrial cables renewal Inspector qualifications - (Subsidiaries) G&P and LSCW QM Oct. 26-27
(8cases) conditions (temperature, humidity, current, voltage)
- Internal inspectors and supplier inspectors Internal inspectors for certifying - Gumi training center
·Industrial / Specialty Evaluation of fire-resistance properties of HCF automobile parts
Strengthening processes Nov. 15, Nov. 29,
- (LS C&S/Subsidiaries) Those who Dec.13, Dec. 27
Strengthening processes and reviewing the results qualified as internal inspectors
- Gumi training center
Materials / ·Magnetic wire Evaluation of PDIV in a low air-pressure environment Teams responsible for certifying
Busduct automobile parts
·Busduct Long drum-length sample PD test - (LS C&S/Subsidiary) Persons in
(7cases)
charge for each team
50 51
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Customer First

Quality Control Tower Future plans

The Quality Control Tower aims to cut Q-costs by comparing rates of defects or losses within ●

a given product group between the head office and eight overseas subsidiaries and devising
and implementing benchmarking and support tasks. In 2018, the volumes of production
Upgrading the QMS IT system and phasing the system in across overseas subsidiaries
scrap were compared. In 2019, an index will be developed as a tool to allow more accurate With the upgrade of the QMS IT system, a framework for quality accident prevention using big-data analyses will be es-
comparisons. tablished. This system will be gradually phased in across our overseas subsidiaries to create a quality management sys-
tem operating at the global level.

Activity 1
LS C&S quality management system
Establishment of Q-cost management standards for overseas subsidiaries
·Sharing information in real-time among the head office and subsidiaries
I Q-cost management I I Definition of scrap and loss I
·Increasing work efficiency; minimizing Q-costs at the enterprise level
Item ERP
Customer claim Disposal of defective products ‒ Total Loss
Loss Loss compensation, defect repair ‒ total loss = scrap + over thickness + over length
Shipping of returned products ‒ α β

Business travel ‒ System upgrade / phase-in across subsidiaries

Scrap
Delayed shipment (delayed repayment) ‒
Back claim (negative adjustment) ‒ Execution Customer QMS IT system upgrade Phasing in the system across subsidiaries
loss (start/ claim
Internal failure Discarded defective products (finished products) ERP stop) (disuse) ·Strengthening data integration and analysis in the system ·Introducing the system gradually across domestic and over-
Discarded defective products (semi-finished products) ERP Remaining Product
defect(FG) ·Analyzing correlation between compound and cable work seas subsidiaries (from 2020)
LES j a
Repair and rework ERP conditions and test data ·Improving failure cost through real-time quality information sharing
i b
Disposal of long-term inventory ERP ·Upgrading the system through monitoring and enhancement - Securing a communication channel and sharing best and
Remaining Product
h c
Design change ERP PP defect(SFG)
·Serving as a knowledge bank worst practices
Back claim ‒ g d
·Laying the foundation for a quality management system at a
Inspection f e Long Term
Production Execution loss for start and stop ERP global level
sample scrap
scrap Remaining PP ERP
Trial Design
Remaining LES ERP sample change
Disposal of inspection samples ERP
Trial samples ERP Promoting proactive quality management
Material loss Over-thickness ‒ Over Spec
• To prevent potential quality risks, real-time monitoring and history management of any changes in the process stream
Over-length ‒
will be conducted so that stable production quality can be maintained.
Act :
Spec : 10mm 10+αmm Demand : 100m
• On-site inspection (QC Patrol) will be conducted without a prior notice to check the status of quality management. Ac-
Provide : 100+βm
cording to the result, the pertinent plants will be requested to take measures for identified issues and devise plans to pre-
vent their re-occurrence. This process will be reflected in the QMS IT system, allowing us to monitor and follow up on the
state of progress.

Activity 2 • CTQ by Group and by product will be identified utilizing the QMS IT system. In order to minimize failure costs, test results
will be analyzed through control charts and Cpk (Process Capability Index) in real-time. Chronic issues will be addressed
‘Level-up’ activities for suppliers
by operating a company-wide Skill Team and the state of progress will be regularly monitored.
We developed and implemented a module for supplier within the QMS IT system in order
to strengthen quality management of raw materials and products from suppliers. Briefing
sessions were held not only to inform them of the purpose of the system but also to provide
training on product specifications check, quality checklist creation, and inspection result Implementing a 5W1H report system in overseas subsidiaries
management. Despite many trials and errors, active cooperation from suppliers has helped The scope of our 5W1H report system will be expanded to overseas subsidiaries so that they can quickly report in the
the system take root. Furthermore, their raised awareness allowed them to be able to supply event of quality-related emergency situations. Once a report is made, the head office will support them in identifying the
materials with better quality. cause, taking preventive measures and minimizing loss.
 3
52 53
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report One LS C&S

Local community support Chamsarang Society, a volunteer group

ONE LS C&S
established in 1999 at the Gumi and Indong
Strategic direction Designated donation to Donghae plants consists of 600 employees, while 200
LS C&S has been making an annual dona- employees at the Donghae worksite are

Social
Promoting social contribution to achieve shared and
sustainable growth tion of USD 89,437 to the city of Donghae working as volunteers of Jeongnanum Soci-

Contribution
to support people with disabilities. On Oc- ety that was started in 2009. They visit local
Key tasks tober 17, 2018, a donation ceremony was social welfare centers on a regular basis
held at which the Donghae City Hall provid-
Local community support
Designated donation to Donghae ed five welfare centers in the city with two
and conduct a variety of activities, including
cleaning, repairs, birthday parties, sports “
It was rewarding to see that
Employee activities passenger vans (Dream Cars) and support events, free meals, and free haircut services. our activities were so helpful
for facility repairs and equipment purchase In addition, fuel and food support, schol- to vendors who had been
Donation of talent
through the Community Chest of Korea. arships to child breadwinners, and cultural worried about outdated
Electrical safety checks in traditional markets
heritage protection are provided. At the electric installations. We are
Nurturing future talent
Since our submarine cable worksite was going to continue working
LS Dream Science Class (science class for children) end of the year, coal briquette delivery and
built in the city in 2009, a special bond has to bring such meaningful
Industry-academia cooperation kimchi making events for the elderly living
been formed between LS C&S and Dong- results to more vendors.
Global sharing activities alone are held.
hae. We are striving to sustain our efforts to Choi Jin-Wook,
LS overseas volunteer group
Local community support by overseas subsidiaries contribute to local communities through a Research Engineer of the

designated donation and sharing activities Energy Research Group

by employees.
Donation of talent
Performance in 2018
Electrical safety checks in traditional
Sharing activities by employees
Operated Sharing activities by markets
Conducted employees: visit to All employees of LS C&S have voluntarily
on-site training We have been providing monthly electrical
electrical safety social welfare centers
programs for donated up to USD 1 from their monthly
checks in traditional and children welfare safety checks in traditional markets since
industry-academia
markets facilities; kimchi- and coal salary, and the company matches its em-
September 2017. Employees with cable
“
cooperation briquette-sharing events
ployees’ charitable contributions. The funds
inspection expertise visit shops to check I feel grateful to all of the LS
LS overseas volunteer collected through employee donation is
Made a designated cable insulation performance, sheathing, C&S employees who visited
group activities:
donation to used to support children living with their
Ran the LS Dream participation by
and possible short-circuits. They offer edu- our market, checked our
Donghae employees; support for grandparents, people with disabilities, and
(USD 89,437
Science Class children’s education; cation on the risks posed by cable misuse. outdated lines, and replaced
per year)
LS Dream School senior citizens living alone. In 2018, we do- electrical installations to help
construction projects
nated USD 40,247. As of March 2019, such activities had been reduce the risk of fire. I feel

“
We strive to realize the vision Enable the Cabled
Targets in 2019 Our employee volunteer groups have sup-
ported people in need to help them stand
conducted at 200 shops in thirteen tradi-
tional markets not only in Anyang, Gumi,
and Donghae where our worksites are locat-
relieved now, and I can more
fully focus on my work!

Cho Myeong-Geun,
World which allows everyone to have access · Expand the scope of electrical safety checks in traditional on their feet. These groups cooperate with
ed but also in Busan, Daejeon and Gwangju. Yongwoon butcher shop owner
markets public agencies and the local governments
to energy and information. As part of the at the Daejeon Yongwoon Market
· Make a designated donation to Donghae (USD 89,437 per to meet the needs of local communities.
efforts, activities such as donation of talent and year)
sharing events with local communities at home · Promote the participation of employees at plants in
and abroad are conducted to fulfill our social supporting their local communities
· Conduct national projects through industry-academia
responsibility. By promoting social contribution,
cooperation, and provide on-site training programs for
we would like to create opportunities for shared college students
and sustainable growth. · Upgrade the LS Dream Science Class to increase the
satisfaction of participants
· Operate the LS overseas volunteer group program
Ceremony for donation and Dream Car handover Coal briquette delivery event Electrical safety checks in traditional markets
54 55
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report One LS C&S

Nurturing future talent experience participate as lecturers, allowing Social contribution in 2018 (domestic)
students to learn both theories and practices.
LS Dream Science Class Volunteer and sharing activities (unit: USD)

The LS Dream Science Class has served as a Activities Beneficiary / Organization Frequency Participants 2018
program helping children to increase their Global sharing activities Head office Electrical safety checks in traditional markets Traditional markets 12 times/year 60 21,465
interest on basic science since 2013. College Chamsarang Activities to keep children company; birthday Aehyang Welfare Home 15 times/year 30 3,130
LS overseas volunteer group Society parties; a sport day
students majoring in science and engineering
We have participated in the LS overseas Free meals; meal box delivery to the elderly living Gumi social welfare center 12 times/year 240 7,602
participate as teachers during summer and alone; cleaning and repairs
volunteer group program and elementary
winter vacations and teach science classes to A Support of daily necessities and house visits; fuel Uiseung Ansa Community (nursing home) 6 times/year 10 2,236
school construction projects in developing expense support; bathing support; cleaning
the elementary school students in Anyang,
countries, including Vietnam, India, Bangla- Free hair cut services; birthday parties; event Sunsan Seongsim sanatorium and 6 times/year 10 2,236
Gumi and Donghae where our headquarters
desh, and Cambodia, to improve their edu- sponsorship nourishing home
and worksites are located. In addition, a vari- Kimchi sharing events The socially vulnerable Annually 50 6,529
cational environment. Since 2007, 23 teams
ety of cultural activities and a ‘vision’ camp are Coal briquette-sharing events The socially vulnerable Annually 25 1,163
consisting of 900 college students and em-
conducted to help children think about their Monthly donation Korean Red Cross (Gyeonsangbukdo-Province) / Hwangsang 12 times/year ‐ 8,586
ployees have joined these program for 12
ambitions and how to make them come true. Children Center / heath centers / Seongsim nourishing home
years. Volunteer activities include outdated Jeongnanum Donghae Dream Start (science program) Elementary students from low-income families 2 times/year 2 21,465
Our researchers with master’s and doctoral classroom repair, taekwondo demonstra- Society Kimchi sharing events The elderly living alone and senior citizen Annually 25 6,605
centers near the location of the Donghae plant
degrees also take part in as one-day lecturers tions and K-pop concerts.
Total 81,017
to provide in-depth classes. This program helps
In addition, as part of LS overseas volun-
children to raise their interest in science by Donation and sponsorship (unit: USD)
teer group activities, the construction of LS
making magnetic levitation trains, transform-
Dream School buildings is underway near Activities Beneficiary / Organization Frequency Participants 2018
ers and optical fiber photo frames for them-
the location of our subsidiary to provide Enterprise- Donation Community Chest of Korea Annually - 277,256
selves and learning about scientific principles wide
students with better educational environ- Donation from monthly salary Children living with their grandparents; 12 times/year - 39,889
senior citizens living alone; children’s home
ments in Vietnam.
Donghae plant Sponsorship for local events, including the Donghae city; the Donghae Mureung festival Annually - 2,236
Industry-academia cooperation Donghae Mureung festival organization committee
Youcheon cultural festival Bugok-dong Living Ethically Campaign Annually - 89
We are actively promoting cooperation (environmental writing and drawing contests) Center
Local community support by
between industry and academia in order to Total 319,471
overseas subsidiaries
develop basic science and nurture talent.
LS-VINA and LSCV, our subsidiaries in Vietnam
Technological information regarding our
raise funds to support the socially vulnerable. Social contribution in 2018 (overseas) (unit: USD)
power transmission and telecommunica-
Employees regularly make a visit to schools Activities Beneficiary / Organization Frequency Participants 2018
tion projects is shared with universities. Our
for the blind and orphanages for volunteer ac- LS-VINA Donation for the needy and for housing construction The needy; Hải Phòng Federation of Labor Annually - 2,236
employees with expertise serve as men-
LS Dream Science Class (science class for children) tivities and donate PCs to rural schools. More- Presents for low-income families; support for schools for the blind, Low-income families; welfare centers; Annually - 4,830
tors, which allows college students to have Support for children with HIV/AIDS and for orphanages orphanages in Hải Phòng
over, they are also sponsoring the LS-Vietnam
chances to learn on-the-job skills. Support for the family members with disabilities Families of employees/retirees As need - 2,348
national go competition and the Hải Phòng of employees and for retirees
The Job Schooling, an internship program fireworks festival, contributing to promoting Global Friends activity support (presents and computers for Students in Bát Xát Annually - 4,025
started in 2012, provides the students of cultural exchanges with Vietnam. elementary/middle/high school students in underdeveloped areas)
Sponsorship for the Hải Phòng fireworks festival Hải Phòng City Annually - 4,472
Kangwon National University majoring in
For subsidiaries in China, LSCW provides a Donating PCs to Confucian schools in rural area Hải Phòng Federation of Labor Annually - 8,944
electricity and electronics and IT engineering
support fund for the local Korean vendor as- Sponsorship for the LS-Vietnam national go competition Go players; the Vietnam go association Annually 5 894
Industry-academia cooperation with with education and employment opportuni- Support for the flood victims in Hu’o’ng Khê-Hà Tĩnh Orphanages in Hu’o’ng Khê-Hà Tĩnh Annually - 10,732
Kangwon National University sociation and visits nursing homes as a vol-
ties. We signed MoUs with Kangwon Nation- LSCV Support for employees in need Employees 4 times/year - 1,073
unteering activity. Meanwhile, LSHQ selects
al University to provide training programs. Sponsorship for the LS-Vietnam national go competition Go players; the Vietnam go association Annually - 7,155
employees in need and offers their families International Women’s Day; Women’s Day in Vietnam Employees 2 times/year 80 537
The curriculum includes lectures on the monthly financial support. It also donates LSCW Support for employees in need Employees Annually - 626
systems, design, and manufacturing quality to low-income families selected from a list Support fund for the local Korean vendor association Korean vendor association in Wuxi As need - 1,789
management of submarine, industrial, and recommended by the city hall, and provides LSHQ Donation for the needy The needy in Yichang Annually 2 1,207

specialty cables. In particular, our research- financial support for volunteering activities Support for employees in need Employees 12 times/year 1 152
Sponsorship for the events by the Consulate Consulate General of Korea in Wuhan Annually 1 760
ers with master’s and doctoral degrees and organized by the Consulate General of Ko-
General of Korea in Wuhan
LS Dream School in Vietnam senior-level employees with expertise and rea in Wuhan. Total 51,780
 4
56 57
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report One LS C&S

Shared growth and fair trade

ONE LS C&S
Transparent procurement processes
Strategic direction

Shared
Establishing a system to achieve shared growth in a
sustainable manner

Growth Key tasks Supplier

selection
Contract Pricing
Delivery/
Inspection
Payment I Payment criteria by supplier type I
Shared growth and fair trade
Subcontracting
Transparent procurement processes
USD 268,312 or less
Awareness-raising of shared growth
Cash (paid on 15th of the
Supplier support following month of delivery)
Supplier selection unit price without sufficient reason is dis-
Finance; technology and training; sales channel; More than USD 268,312
In order to select suppliers in a fair and allowed. Suppliers can file for a purchase
local economy 45-day maturity cash from the
transparent manner, the entire process price adjustment at any time. If a valid rea- delivery date or the end of the
Supplier management system son exists, a contract price can be adjusted delivery month
from registration to final selection is man-
AVL (Approved Vendor List) program based on mutual agreement between with-
aged through our e-Procurement system.
Evaluation on environmental performance in 30 days from the date of request.
In principle, competitive bidding is always Non-subcontracting SMEs
Credit rating system conducted except in special cases such as
Delivery/Inspection USD 4,472 or less
the application of new technologies or cus- Cash (paid on 24th of the
After delivery and service are completed, an
Performance in 2018 tomer requests. Applicants are evaluated following month)
inspection is performed in accordance with More than USD 4,472
through both paper screening and on-site
the pre-agreed standards and procedures. and USD 17,887 or less
Provided USD 894 thousand of direct loan inspections. The results based on produc-
We strictly comply with pertinent rules and 60-day maturity cash from the
support to suppliers and utilized the win-win tion capability, quality, price, worksite sta- delivery date or the end of the
cooperation fund worth USD 35,775 thousand inspectors’ duties and due diligence to pre- delivery month
bility and other evaluation criteria are an-
vent the return of supplied goods without
nounced to individual applicants in writing More than USD 17,887
Helped suppliers achieve sales worth USD 38,190 sufficient cause.
within 15 days of the final selection. 90-day maturity cash from the
thousand through programs for supporting them in
delivery date or the end of the
expanding overseas and domestic sales
Payment delivery month
Contract
Offered free training programs to Payment criteria set according to transac-
We use a standard form of contract that in-
strengthen job competency of suppliers tion type and payment amount are avail- Large-sized companies
cludes the following information: payment
(73 employees from 17 suppliers) able through the e-Procurement system in
amount; payment methods; and price ad- USD 4,472 or less

“
In our rapidly changing global environment, Targets in 2019
justment conditions for raw material price
fluctuations. In principle, contracting par-
an effort to promote transparency.

For suppliers that have signed subcontract-

Cash (paid on 24th of the
following month)

ties’ signatures should be included on the ing contracts, payment is made on 15th More than USD 4,472
shared growth is emerging as one of the or USD 17,887 or less
contract. day of the following month after delivery. In
key elements for determining a company’s · Expand programs for supporting suppliers in 90-day maturity cash from the
addition, we made early payments to sup- delivery date or the end of the
competitiveness. Based on the LS C&S Way, we increasing overseas sales Pricing
pliers who faced financial difficulties ahead delivery
will support and cooperate with our suppliers · Review the feasibility of a Win-Win Payment System We set a reasonable price by considering of the New Year and Chuseok holidays. More than USD 17,887
product quality, quantity, and delivery as 120-day maturity cash from the
as we grow together in this Fourth Industrial · Strengthen efforts for shared-growth with secondary
delivery date or the end of the
well as market price. Unjustly lowering the
suppliers
Revolution era. delivery
58 59
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report One LS C&S

Awareness-raising of shared growth Supplier support

Financial support
To help suppliers improve their cash flow, Technological support
Training on
Subcontracting Raising we operate financial support systems, in-
News of shared procurement
Review awareness on We provide technical support to promote
growth and cluding direct loans, a win-win cooperation
Committee shared growth
subcontracting cooperation and help our suppliers en-
fund, and a network loan. We will further
hance their competitiveness. Product pur-
strengthen promotional activities to benefit
chase agreements have been made for the
more suppliers.
technologies we co-developed and govern-
Subcontracting Review Committee
I Sharing information on Direct support ment projects have been conducted togeth-
We are operating an internal Subcontracting Review Committee to enhance awareness of
shared growth and fair trade I er. In 2018, we have completed two national
shared growth and fair trade with our suppliers. The committee consists of three members, We offer a program of extending loans to
projects and have been working on three
including a CPO as a chairperson, the head of the legal affairs division, and the head of the suppliers using internal funds. In 2018, the
co-development projects targeting new
procurement planning team. A monthly meeting is held to review risks related to unfair trade. amount of direct loans totaled USD 894
customers from the Americas and Oceania,
Purchasing thousand. A total of 10 suppliers were pro-
and logistics Committee Head of the legal Head of the procurement allowing our suppliers to increase sales and
I I CPO vided with unsecured interest-free one-year
members affairs division planning team secure additional customers. Meanwhile, in
loans of USD 89,437 each.
annual due diligence for suppliers, our em-
Indirect support ployees with expertise in production pro-
Supplier Issues
cess and quality are dispatched to support Total amount of

894
I TOPIC I Subcontracting complaints related to We also provide a win-win cooperation fund
win-win direct loans in 2018
Legal affairs issues and pertinent them in resolving production process and
cooperation worth USD 35,775 thousand that was cre-
measures
quality issues.
ated in partnership with KEB Hana bank, as USD thousand
well as account receivable loan programs.
Activities
These allow our primary and secondary Training support
A preliminary review of subcontracting cases worth USD 894 thousand
·Sharing information on the
or more is conducted to check fairness in contract and pricing processes suppliers (who signed contracts with To support employees from primary and
government policies and
and compliance of pertinent laws.
industry trends primary suppliers) to secure loans at low- secondary suppliers to strengthen their
·Providing enterprise-wide <Examples of preliminary review items related to subcontracting laws> er-than-market interest rates. In addition, job competency, free training programs Suppliers provided

10
training on subcontracting I Details I · Compliance with the obligation of issuing written contracts with loans
we and the IBK (Industrial Bank of Korea) tailored to their needs are provided in part-
·Participating in external · Violation of the prohibition of unfair pricing
have operated a network loan worth USD nership with external institutions. In 2018,
training programs · Compliance with the obligation of opening a domestic L/C and providing suppliers
·Sharing best practices of payment guarantee
44,719 thousand since 2009 to support our 73 employees took part in 17 programs. We
other companies · Violation of the prohibition of forced purchasing of goods partners. will plan to expand the scope of training to
· Review of the criteria and procedures of cancelling registered suppliers all suppliers.
· Review of appeal cases against supplier selection or registration cancellation

73
I Network loan I I Win-win cooperation fund I 2018 training support
Information sharing
Fair trade issues and best practices of other companies are shared at the company level on a
35,775 thousand
employees
monthly basis in order to prevent any potential risks of unfair trade. In addition, related infor- USD
mation and news from the Korean Fair Trade Commission and Korea Commission for Corpo-
rate Partnership are shared. Our internal standard form of contract, detailed rules for work,
USD 17,887 thousand USD 17,887 thousand
and subcontracting training materials are updated accordingly based on the information.
Repayment Order Delivery

Training on purchasing and subcontracting

Loan support
Our purchasing and logistics division has its own subcontracting training manual for each Primary
and secondary
process. The manual covers potential subcontracting issues that employees may face due to suppliers
Primary and secondary suppliers
the lack of knowledge or misunderstanding. A quarterly training is being provided to those
Loan support
responsible for purchasing, quality, development and production.
60 61
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report One LS C&S

Support of suppliers in expanding their overseas sales Supplier management system

Not only do we help our suppliers operate their businesses in a stable manner through finan-
Approved Vendor List (AVL) system
cial and technological support, but we also provide opportunities for them to achieve growth
Since the introduction of the AVL system in 2016, we have been working to enhance the com-
by supporting them in expanding their overseas sales. As part of these efforts, we share infor-
petitiveness of key suppliers and manage risks together. Companies selected as key suppliers
mation with domestic suppliers on demand for raw and subsidiary materials by our overseas
under the AVL system are guaranteed one year of supply to LS C&S, allowing them to mini-
subsidiaries in China, Vietnam, and India. Moreover, selected suppliers with superior perfor-
mize uncertainties in sales. In addition, along with financial benefits, they receive support
mance are given an opportunity to supply products to our overseas subsidiaries and increase
for conducting improvement activities that are identified together with LS C&S. In 2018, 331
their overseas sales.
companies were selected as AVL suppliers.

I New domestic suppliers I Suppliers’ sales to our subsidiaries I

in 2018 I 331
Supply companies
234 16% market selected
Product
6 Business characte-
· Strategic
22 A full area ristics
Product group importance
14 purchase AVL benefits
USD 5 million 12 5 33 classification · Impact on Q.C.D.
list · Financial support
29 Purchase criteria Supply-
· Purchase volume
India demand · Technological
amount
Vietnam type support
8 4 Purchase
China volume · Support for
2017 2018 increased sales
(unit: USD 1 million)
Newly Number Sales from · Employee training
registered of orders contracts support
suppliers placed to with LS
suppliers C&S
Promoting local economy Evaluation of environmental Credit rating system
performance We operate an annual credit rating system
To promote the local economies in our international locations, overseas subsidiaries in Chi-
na, Vietnam, and India have created a supply chain worth USD 215 million, focusing on their To provide services in accordance with do- for our suppliers with high transaction vol-

respective local markets. Starting from 2019, our efforts will be expanded to Myanmar and mestic and international market standards, umes. The results are utilized as AVL suppli-

Poland where our new subsidiaries are located. newly registered suppliers are subject to er selection criteria. In addition, we monitor
the evaluation of not only their overall their financial risks in order to proactively
management, quality management, and respond to any signals of bankruptcy. In
I Procurement from local markets I
production management, but also their en- 2018, the credit of 143 suppliers was evalu-
vironmental and safety management. In ad- ated by two credit rating agencies.
Local procurement
Import dition, the results are updated in an annual
168 67 92 (unit: USD 1 million) evaluation of suppliers

100 I Suppliers subject to our environment I Credit rating results in 2018 I

75
68 and safety management standards I
40
(unit: company) (unit: company)
27 Accounting for 66%
17 of total procurement Total 331 A or higher
USD 215 million worth Excluded B or higher
of a supply chain
118 5 4 C or lower
Promoting local
Vietnam India China New 134
economies 8
Existing
18% 64% 143
40% 40% in compliance
205 with the
60% 60% 82% standards

*Nonferrous metals linked to international market prices are not included.

 5
62 63
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report One LS C&S

Respect for employee right the labor principles of the UN Global Com-
ONE LS C&S pact. As for forced labor, our employees
No discrimination
Strategic direction work only based on their free will. We do not
According to the Article 6 (Equal Treatment) force our employees to work at night or on

Respect for Human

Respecting the human rights and diversity of our
of the Labor Standards Acts, no employer holidays. Working hours are eight hours per
employees and pursuing global standards

Rights and Diversity

should not discriminate against workers on day and 40 hours per week. If anyone works
the basis of gender, or give discriminatory at night or on holidays with prior consent,
Key tasks treatment in relation to the working con- overtime payments are made.
Respect for employee rights ditions on the basis of nationality, religion
No discrimination / Education on human rights or social status. Our Code of Ethics clearly
protection / No child/forced labor states discrimination against employees. In
Labor-management
the Chapter 5, we prohibit unfair discrim-
relationships for shared
Labor-management relationship for shared growth
ination for reasons of gender, academic
growth I LS Code of Ethics and Practical
Operating a labor union
background, age, nationality, religion and Guidelines I
Facilitating communication Labor union
birthplace in regard to recruiting, promotion, Chapter 5. Corporate
Joint Social Contribution Our labor union was launched as the Anyang Responsibilities for Employees
On-site satisfaction survey compensation, and education opportunity.
branch of the GoldStar chapter of the Federa- 1. Nurturing talent
All employees are given equal opportunities,
Respect for diversity tion of Korean Metal Workers Trade Unions in 1) The company establishes, supports,
and reward is made based on their perfor-
Support for female employees 1976, and has celebrated its 20th anniversary and promotes the system to nurture
mance. To prevent any unfair act, we operate employees as autonomous and creative
Employment of the disabled with 872 members as of the end of 2018.
support systems, such as the help center, talent.
‘Those who work at LS C&S worksites’ are
grievance channel, cyber reporting channel 2) Team leaders give advice and
eligible for union members and have a right
and appeal against employee performance guidance to their team members
Performance in 2018 to freely join or discontinue membership at considering their aptitude and abilities
evaluation results where anyone can freely
any time. Both the labor and the manage- with determination to nurture them
Respect for · Promoted diversities get counseling and report in anonymity.
ment are working hard to establish a sound as those who are strong and challenge
employee
· Implemented no-discrimination themselves.
rights, and no and harmonious relationship. The manage-
policies Education on human rights
discrimination 2. Treatment based on abilities and
protection ment strives to ensure employment stabil-
performance
No child/forced ity and compensation based on business
· Implemented
 no child/forced In order to raise employee awareness of 1) The company provides employees
labor and labor policies performance while the labor union actively
human rights based on the understanding with equal opportunities for improving
ensuring labor-
union activities of · Promoted labor-management conducts task and activities to achieve the their abilities (training, job rotation, and
of social and cultural diversity, we conduct
employees relationships for value creation company’s business goals. Based on these position assignment decisions) and

“
related educational sessions. In addition, does not discriminate them for reasons
relationships, we agreed on the extension
annual training on the prevention of sexual of academic background, gender, age,
Support · Took support measures for of retirement age and introduced a wage
Employee satisfaction is a starting point that allows us harassment is provided. In 2018, a total of religion, birthplace, age, disability,
for female female employees
peak system in 2007. We have cooperated
to meet the needs of customers, suppliers, and local employees, and
· Signed an employment contract 1,955 employees participated in the pro- marital status, nationality, and race.
employment of to address critical issues related to internal 2) The company establishes, discloses,
communities. Respect for employees is essential to their the disabled with a company for employees gram. Ethical management, including sexu-
with disabilities and external labor environments. As a result, and complies with the specific
al harassment prevention is covered in the
satisfaction. We respect our employees and treat them there have been no labor disputes for the last criteria for evaluating the abilities and
introductory training programs for newly performance of employees in order to
fairly. We nurture and secure talent and ensure that 30 years since 1989.
recruited employees and in the develop- create a culture of fair competition.
people can reach their full potentials and produce the best Targets in 2019 ment programs for overseas employees.

possible results. To promote work-life balance, a variety of

· Encourage employees to take more vacation time
No child/forced labor
support measures are in place. We also put considerable (e.g. by using ‘sandwich’ days or annual ‘refresh’)

872
We strictly prohibit any labor by children Labor union membership in 2018 Sexual harassment prevention
efforts into creating a pleasant working environment. Our · Promote measures to support female employees

1,955
training in 2018
under 15 years old and by adolescents who
management and labor representatives cooperate fully · Maintain employment policies for people with
are currently attending school in accordance employees
disabilities *All of 872 production workers are employees
based on a sound relationship. with the Labor Standards Act of Korea and labor union members.
64 65
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report One LS C&S

Facilitating communication Respect for diversity

To share corporate management information with our employees, including a labor union, on
Support for female employees I Female employees in
a regular basis, a variety of communication channels are utilized. We listen to the voices of our
We put major efforts into creating a women-friendly workplace where everyone can reach managerial positions
employee and work together in order to improve a working environment and welfare benefits.
their full potential. As of 2018, female employees accounted for 15.1 of all employees and (as for permanent employees) I
female managers for 5.1% of all managerial positions, but this has been rising for three con-
1)
16.8%
secutive years. To nurture more female managers, we plan to provide leadership training pro- 13.4% 15.1%
grams for female employees and actively support them through applicable welfare benefits, 168
Participation and Labor-Management including parental leave and flexible work hours. 156 153
A Monthly Meeting Cooperation Promotion working-level 1)The ratio of female managers: The percentage of female managers out of all managerial positions
Council Meeting meetings
LS daycare center
Management: led by the
An LS daycare center that was established in Anyang at the end of 2014 helps employees reduce Female
Participant Management: six persons head in charge of labor-
All employees including the president management affairs employee
Labor: six persons including Labor: led by a member fully
the burden of childcare and concentrate on their work. Currently, a total of 70 employees from LS (%)
the head of the union dedicated to the union Group subsidiaries are utilizing this daycare center. (unit: person)
2016 2017 2018
Frequency Monthly Quarterly Monthly/As needed
Space for female employees
Activities Sharing information on Sharing information Discussing improvement There are nursing rooms and lounges for female employees at our worksites. The female
business status, financial on business status and on working conditions and 5.1%
4.6%
performance and pending performance; Discussing employee benefits employee club Arom Society is operated to provide counseling and promote good fellowship
issues systems and working 3.6%
among female employees.
conditions
30 31

Parental leave 23
Joint Social Contribution activities
Employees with children aged eight (second graders) or younger can take parental leave up to
Since the labor-management agreement was made in 2007, we have operated a program one year and their return to work is guaranteed. In 2018, a total of 20 employees took the leave,
Female
that all employees of LS C&S donate up to USD 1 from their monthly salary and the company and three of them were male employees. In addition, our working hour reduction system for manager
matches its employees’ charitable contributions. In addition, volunteer activities, such as childcare allows employees subject to parental leave to reduce their working hours over one year (%)
living expense support for the underprivileged, and kimchi- and coal briquette-sharing events rather than taking a leave of absence. A working hour reduction system for pregnant employees is (unit: person)
2016 2017 2018
I On-site survey items I are conducted. Employees also participate in environmental cleanup activities, including the also implemented to help reduce their physical stress with less working hours.
One Company One Stream campaign, to fulfill corporate responsibility.
Manager Employment of the disabled

On-site satisfaction survey Consideration for employees with physical disabilities

Supervisor In accordance with the Act on Employment Promotion and Vocational Rehabilitation for Dis-
An annual on-site satisfaction survey is jointly conducted by the labor and management to
abled Persons, we hire those who with physical disabilities at our plants. As of 2018, a total
diagnose and improve a working environment and organizational culture at our plants. The
Communication of 36 employees with physical disabilities are working in our worksites, which is an increase
survey consists of the following items: 1) manager; 2) supervisor; 3) communication; 4) orga-
from 35 of the previous year. We actively support and help them successfully adjust to and do I Employees with disabilities
nizational culture; 5) labor-management relationships; 6) labor union; 7) working environ-
Organizational culture their jobs through guidance and preparatory training so that they can stand on their feet. (accumulated) I
ment; 8) job management; and 9) welfare benefits. Based on the survey results, we take im-
provement measures for issues identified to raise employee satisfaction level at work. At the 1.8%
Increasing the number of employees with disabilities through indirect employment 1.7%
Labor-management
relationships same time, a grievance system is implemented by plant to deal with employee complaints 1.4%
An indirect employment contract was signed with Butyi in April 2017 and it has been renewed
regarding their jobs and working environment. 35 36
on an annual basis ever since. The company was established to provide stable jobs to the so-
Labor union
cially vulnerable, including the disabled, according to the ‘subsidiary-type standard business 30
I Labor union membership by plant I system’ of the Korea Employment Agency for the Disabled and the Act on Employment Pro-
(unit: person)
Working environment
motion and Vocational Rehabilitation for Disabled Persons.2)
2016 2017 2018
Anyang 12 7 6
Job management Butyi helps people with disabilities have jobs and provides related support. Employees are selected
Gumi 495 498 469
from the day-hospital3) center named Haeddeulnal within the Yongin Mental Hospital, the only WHO (unit: person)
Indong 262 273 260 2016 2017 2018
Welfare benefits psychosocial rehabilitation cooperation organization in Korea. They receive training prior to starting
Donghae 200 146 137
work, and all cases of trainees are managed to provide support them to continue working.
Total 969 924 872
2) Legal basis: The Act on Employment Promotion and Vocational Rehabilitation for
3) Day hospital is an outpatient facility where patients attend for assessment, treatment or rehabilitation during the
day and then return home or spend the night at a different facility.
 6
66 67
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Rule & Responsibility

Strengthening compliance activities

RULE & RESPONSIBILITY
Compliance training
Strategic direction
To help our employees internalize the value of compliance management, we provide regular

Compliance
Setting a vision for the compliance working committee:
training targeting newly-hired career and non-career employees. This training aims to pro-
spearheading the efforts for promoting compliance management

Management
vide guidance on the standards for conduct at work. In addition, we operate regular sessions
and reducing risks to zero
on competition and anti-corruption laws. To prevent risks associated with expanding over-

Key tasks seas sales, we are also working on practical programs that can be utilized on-site.

Strengthening compliance activities

Compliance training
Facilitating the operation of an in-house bulletin board ·Fair business transactions (career employees):
Analyzing the potential impact of revision and enactment of laws For LS Miraewon (Feb. 6) and Gunpo research center (Feb. 27)
and sharing analysis results newly-hired
·The Agency Act and the Fair Trade Act (career-/non-career):
employees
LS Tower (Jul. 25)
Conducting risk prevention activities on international projects (4 sessions)
Reviewing checklists for each step of bidding process ·Introductory legal course (career): LS Miraewon (Sept. 13)
Training for newly-hired

4
Providing support for bids on large-scale project employees
·Receivables management: LS Miraewon (May 31)
Upgrading the standard form of contract and providing legal For sales sessions
·International project contract and claim management:
consultation employees
LS Tower (Aug. 28)
Reviewing contracts and the related laws (3 sessions)
·The Subcontracting Act: LS Tower (Aug. 28)

Performance in 2018

Compliance ·‘One-strike out’ system (subcontracting), and anti-cor- Training for sales

3
Provided seven sessions of
No risks related to bulletin board ruption laws employees
ad-hoc compliance training
competition laws
targeting small groups of
occurred sessions
employees

Conducted activities to
prevent potential risks in
Minimized cash “To help our employee internalize the value of
outlays due to lawsuits compliance management, we provide training
bidding on international
or damages targeting newly-hired employees
projects
(career/non-career) on a regular basis.

“
We announced the LS C&S Way and four core values Targets for 2019
that inspire the principles on which employees act.
· Provide task force team support to minimize risks in
Under the value of ‘rules and responsibility’ we are
overseas business
pursuing compliance management to fulfill our
· Refine checklists for each step of bidding
corporate responsibility and win the trust of our
· Minimize cash outlays due to lawsuits or damages
stakeholders. Heightened employee awareness of
· Strengthening activities with an increased number of
compliance will lead to a reduction in both internal CP1) officers
and external risks. This in turn will bring us closer to 1) Compliance Program

our ultimate goal of ‘zero risks’ and lay a foundation

for corporate social responsibility.
 7
68 69
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Rule & Responsibility

Conducting risk prevention activities on international projects

RULE & RESPONSIBILITY
To prepare for saturation in the domestic cable market and to become a leading company
on the global stage, we are focusing on expanding overseas sales. As our management views Strategic direction

Ethical
elevated customer requirements and market entry barriers to be the risk factors involved, ac- Strengthening the foundation for ethical management
tivities are being conducted to address these challenges. From 2018, efforts are being made and raising employee awareness
to support bidding on large-scale projects through a variety of tools applicable to work and
with legal assistance.
Management Key tasks
I Checklists for each step of bidding I
Strengthening the foundation for ethical management
From the perspective of Refining the Code of Conduct and guidelines for
Focus Contract terms
construction management implementation
1 Limitation of liability Cable laying depth
Bidding Conducting a thorough
- Less than 100% of the contract amount
Operating an organization and systems
preparation analysis of contract/ - Applying reasonable endeavors rather
- Consequential and indirect damages than best endeavors
Counseling center
(bidding announ-
construction terms
cement)
excluded - Specifying the criteria for achieving Ethical management website
- A minimum level of exceptions in the laying depth Cyber Reporting Channel
limitation of liability
Method of construction Reporter protection program
2 Data provided from the owner - Checking owner’s requirements of
Contract Identifying advantages/ Reward for reporting
- Making the owner responsible for the data construction methods
preparation disadvantages and Clean Company
-R
 eviewing whether it is possible to extend - Simultaneous cable pulling and
(before the final receiving a quotation
construction duration and charge additional laying, and pre-trenching
notification)
construction cost if geological features are Raising awareness of stakeholders
- Route clearing (PLGR)
different from the data provided Ethical management training / Promotion / Official
- Back-fill: engineering/natural back-fill
Bidding document structure document for cooperation to suppliers / Evaluation of ethics
- Cable laying, dredging, and HDD (Y/N)
- Checking which information in bidding - Construction for cable protection
3
Preparing a plan A and plan B
Construction
documents will be used for a contract (Y/N) Performance in 2018
for negotiations
Variation / Change Order - Deep sea: cable pulling (Y/N)
- Identifying what is subject to variation, and Feasibility
Soil data check assessment
checking whether it is possible to make a The evaluation result of ethics was
proposal for the variation and what are the - Analyzing data provided by the for the need
utilized to review the need of the
compensation procedures owner and reviewing the need of an of revising
4 Increasing the odds of additional survey the Code of revision of the Code of Conduct.
Maintenance winning future contracts with Terms on construction impracticability - Determining the construction method Conduct
period the owner - Standby rate criteria and payment based on the analysis
- Force Majeure A total of eleven reporting cases from
Reporting Cyber Reporting Channel and in
*Subcontracting contract: strengthening bargaining power in negotiations by bringing multiple subcontractors to the table.
cases writing were received, investigated

Upgrading the standard form of contract and providing legal

“
Ethical management means conducting business
Employee
and addressed.

Training on ethical management

consultation activities in a transparent and fair manner by putting training
was provided to employees to be
dispatched overseas.
We review contracts from the perspectives of risk identification, customers, suppliers, ethical values on top priorities. It allows companies
fair competition, and CSR. This approach is reflected in the compliance guidelines upon
to give trust and confidence to their customers,
which our employees act. These guidelines will help our employees remain fully in com- Targets in 2019
pliance with laws and regulations and serve as a basis for us to prevent economic loss to employees, competitors, suppliers and shareholders.
the company and to society. Our management philosophy is that we should fully · LS C&S Code of Conduct and implementation
guidelines: refining the Code of Conduct and guidelines
I Contract review and legal consultation I abide by principles, laws, and regulations and be for implementation
2016 2017 2018 ethically responsible while doing business. Based on · Promotion activities: introducing programs for
Domestic Contract review 167 138 170 implementation and diversifying promotional content
our philosophy, we would like to achieve our goal of
Legal consultation 1,886 2,369 2,606
· Intensive training : for employees of the head office and
Overseas Contract review 173 216 223 becoming “Your No. 1 Creative Partners”.
subsidiaries to be dispatched overseas
Legal consultation 2,295 2,585 2,885
70 71
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Rule & Responsibility

Strengthening the foundation for get general information on ethical manage- Reporter protection program Training sessions (unit: session)
ethical management ment and advice on how to interpret and We operate programs to protect report- 2016 4
apply the Code through the Cyber Report- ers from being disadvantaged due to the
Implementation of the Code of Conduct 2017 4
ing Channel, phones or emails. Reports are reporting. Their identities, evidence pre-
We established our Code of Conduct to pro-
received and handled confidentially, and sented by them, any other information that 2018 4
vide a framework in which employees per-
the secretariat does not disclose the per- could identify them, and measures taken
form their work ethically and in compliance
sonal information of anyone reporting and based on the results are strictly kept confi- Training hours (unit: hour)
with laws and regulations and fulfill our cor-
the reported details without their consent. dential to protect reporters.
porate social responsibility. This is applied to 2016 7.5
LS C&S and all of its subsidiaries. The Code Ethical management website 2017 7.5
Reward for reporting
of Conduct consists of six categories: respon- I Reporter protection program I
To introduce ethics management and pro- To prevent unethical acts and create a 2018 7
sibilities and obligations toward customers;
mote the implementation of its values, a sound organizational culture, those who Confidentiality
basic ethics for employees; fair competition;
dedicated website is being maintained. In- report irregularities such as cases of bribery Trainees (unit: person)
Identities of reporters, or any
fair business transactions; corporate respon-
formation, including a full text of the Code of are offered a reward of up to five times of other information that could
sibilities for employees; and responsibilities 2016 60
Conduct and the pertinent programs for its the amount of the bribe (USD 4 thousand identify them are strictly kept
toward the country and society. 2017 39 confidential.
implementation, can be found on the website. in maximum). Those who voluntarily report
It also features a Cyber Reporting Channel 2018 86
In addition, implementation guidelines unethical acts are exempted from responsi-
that allows employees as well as stakehold- bility and the money they received is used Guarantee of status
help our employees understand our Code
ers, including customers and suppliers, to for volunteer activities. We protect those who report
of Conduct and act upon it. The guidelines
report any unethical activities they witness or plementation guidelines and cases on the violations from being disadvan-
serve as criteria for making decisions and
disadvantages they suffer. Clean Company company intranet. In 2018, articles on whis-
taged or discriminated against
taking actions in ethically challenging situa-
in their teams or business
tions at work. Meanwhile, an ethics evalua- We established a system called Clean Com- tleblowing systems, win-win management,
I Cyber Reporting Cyber Reporting Channel relationships due to reporting,
tion has been conducted on an annual basis pany that helps employees voluntarily re- and inclusive organizational culture were providing testimony, or submis-
Channel process I
The Cyber Reporting Channel allows em- port any past acceptance of money or gifts.
to assess the utilization of the Code by em- posted. They received total 2,764 hits. sion of evidence.
ployees as well as stakeholders, including Once they fill out a report form and submit
· Customers ployees and review the need for revisions or
· LS C&S customers and suppliers, to report any un- it to the Ethics Secretariat, any money or Official document for cooperation to
refinements to it and related guidelines. Reduction and exemption
· Suppliers ethical activities they witness or disadvan- gifts received are returned to the givers suppliers
from responsibility
· Employees Operating organization and systems tages they suffer. We keep personal infor- with an explanation regarding our ethical Before the Chuseok and Lunar New Year’s
mation and reporting details of all reporters Those who voluntarily report
Delivering Counseling center management policies. If there is a situation holidays, we send an official document
confidential. Their identities are strictly kept unethical acts are exempted
the results Posting a report in which the received items are difficult to asking suppliers for cooperation in eradi- from responsibility or
The Ethics Secretariat is operating a coun- confidential to protect reporters. All of re- return, they are donated to social welfare cating practices of giving and receiving gifts, receive consideration in the
seling center for employees who face ports received, including anonymous ones, facilities or to religious groups under the entertainment, and money and informing disciplinary response.
ethical issues. They can not only have coun- are properly handled and addressed and name of the giver. them of our Code of Conduct and reporting
Cyber Reporting
seling on ethical conflicts at work but also results are delivered to reporters. channels. After the document is sent, it is
Channel Raising awareness of stakeholders also posted on the company purchasing in-
I Code of Conduct in LS C&S I
Transferring the Ethical management training tranet so that all of suppliers can check the
report
Responsibilities and
Basic ethics of employees
Fair competition To prevent any possible violation cases of information
obligations for customers (with competitors)

86
the Code of Conduct, ethics training is pro- 2018 trainees
LS C&S’s Internal Audit
· Prohibition of unjust action Evaluation of ethics
and Consulting Team using position or duty · Utilization of information vided to employees from the head office
Ethics Secretariat
· Respect for customers
· Honest and unbiased report
obtained in a fair manner
and subsidiaries to be dispatched overseas Since 2010, an ethics evaluation has been
· Provision of credible information · Advantages secured through fair
· Sense of decency
competition before leaving. The training programs in- conducted for all employees on an annual
· Response to customers
· Avoidance of conflict of interest basis to identify improvement areas for
· Prohibition of collusion
· Value to customers
· Prevention of sexual harassment clude: the concept of ethical management;
· Protection of customer interests in the workplace
· Compliance with laws and
internal ethical management system and our ethical management activities. The
commercial practices
· Self-development
the Code of Conduct; and violation cases. In evaluation survey consists of 25 questions
Fair business transactions Corporate responsibilities Responsibilities for the 2018, four ethical training sessions (7 hours) in three categories: the basis of ethical
(with suppliers) for employees country and society Hits of promotion
were conducted for 86 employees. management, implementation of corporate

2,764
materials posted
· Supplier selection through a fair
· Prohibition of unethical and
ethics, and ethics being practiced in our
process
· Fair business transactions and
· Nurturing talent anti-social business activities Promotion of ethics management workplaces. The results are reflected in the
· Reward based on performance · Contribution to the development
evaluation
of the country and society The secretariat has been posting articles next year’s activities.
· Sound expression of will ensured
· Clean business transaction
· Workplace safety and health · Protection of shareholder interests on ethical management, including news,
process
· Protection of the environment
· Support to suppliers the Code of Conduct, ethics systems, im-
 8
72 73
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Rule & Responsibility

Safety promotion activities

RULE & RESPONSIBILITY Strategic direction
Establishing five safety rules at worksites
Ensuring a healthy workplace and achieving the goal of
To create a workplace that emphasizes safety as its top priority, five safety rules were es-

Workplace
zero-accidents by strengthening safety activities
tablished. We are conducting promotion activities, including handouts to employees and
Key tasks
Safety
visitors, postings on our intranet, campaigns, and in-house broadcasting. To strengthen com-
Conducting activities to promote safety
pliance, employees who frequently violate the rules are subject to penalties.
Five safety rules at worksites / Workplace safety /
Zero-accident campaigns / Safety passage for pedestrians
Eliminating risks of potentially dangerous equipment Five safety rules at worksites [head of labor relations and environment division]
Risk evaluation of all processes
Safety means saving lives.
Safety diagnoses of cranes and forklifts • No one is exempt from safety accidents.
PSM evaluation at the Gumi and Indong plants • Always identify risk factors and stick to the rules to protect yourself and your colleagues 관리감독자 임명장

Creating a healthy workplace

연번 : 19-G-1

Always use safety passages and crosswalks while walking. Do not enter working
소속 : Bucduct개발생산팀
직책 : 반장

Occupational disease / lifestyle disease prevention activities

성명 : 박명환

areas outside your own designated areas! 위 사람을 산업안전보건법 제14조 및 같은 법 시행령 제10조에 의거, 다음 각 호의 안

Safety and health management activities

전ㆍ보건관리에 관한 업무를 수행할 관리감독자로 임명합니다.

Do not use cell phones or earphones while on the move. Always remain aware of
Occupational Safety and Health Committee / OHSAS 18001
1 해당 작업과 관련된 기계·기구 또는 설비의 안전·보건 점검 및 이상 유무의 확인

your surroundings while walking.

2 소 속 된 근 로 자 의 작 업 복 · 보 호 구 및 방 호 장 치 의 점 검 과 그 착 용 · 사 용 에 관 한
교육·지도
3 해당 작업에서 발생한 산업재해에 관한 보고 및 이에 대한 응급조치
4 해당 작업장 정리정돈 및 통로확보에 대한 확인·감독

Performance in 2018
5 산업보건의 및 안전관리자·보건관리자의 지도·조언에 대한 협조

Operate forklifts at 10km/h or slower. Steer clear of areas where forklifts are working.
6 위 험 성 평 가 를 위 한 업 무 에 기 인 하 는 유 해 , 위 험 요 인 의 파 악 및 그 결 과 에 따 른
개선조치의 시행
7  해하거나 위험한 작업에 근로자를 사용할 때 실시하는 특별교육 중 안전에 관한 교육(산업
유
안전보건법 시행령 별표 2)
8  밖에 해당 작업의 성격상 유해 또는 위험을 방지하기 위한 직무 수행&작업시작 전 점검(산
그

Do not jeopardize yourself with risky behaviors! Alert colleagues of any unsafe acts.
업안전보건기준에 관한 규칙 별표 2 및 별표 3)

· Established five safety rules at worksites 2019년 1월 1일

for compliance Always report issues and act as directed. LS전선(주) 대표이사 명노현 (서명 또는 인)

· Provided safety training: offline for

Safety
managers/supervisors (16 hours) and
promotion Certificates of responsibility
online for office workers (12 hours); and
activities Strengthening a workplace safety
for safety
revision of daily report format
· Repaired exterior pedestrian passages at
Safety management system at including researchers. In addition, the daily
all worksites
worksites report format was revised to improve the
Risk We have refined the safety management effectiveness of group training.
· Conducted risk evaluation of all processes
elimination system to ensure the safety of our employ-
· Examined the safety of cranes and forklifts Employees subject to
of potentially Promoting safety communication

221
ees and suppliers. Managers and supervi- safety training
dangerous · Provided the PSM evaluation at the Gumi
sors are given certificates of responsibility Safety communication activities are con-
equipment and Indong plants
for safety to encourage them to take greater ducted to identify potential risks and raise
responsibility for these roles. awareness. Monthly meetings with supplier
Targets in 2019
representatives are held to discuss perti-

“
To ensure the right of employees to a healthy, safe, • Conducting activities focusing the prevention of four
critical risks
Strengthening safety training
For a total of 221 employees, on-the-job
nent issues and improvements. A safety
reporting channel is maintained so that em-
training focusing on practical exercises was ployees can present suggestions and ideas.
and pleasant environment, we make employee - Cranes, forklifts, rotating equipment, and fires/explosions provided to managers and supervisors (16 Communication regarding external safety
safety and health our top priority. To this end, an - Create and promote risk prevention rules; and revise hours), while quarterly three-hour online issues takes place through text messages
safety rules of each process programs were operated for office workers, sent within teams/divisions/plants.
occupational safety and health management system
• Strengthening the safe management of suppliers
is operated in accordance with the safety and health - Promote safety activities of suppliers: monthly meetings,
management system OHSAS 18001 to ensure a and programs for safety diagnosis
- Prevent risks related to subcontracting : improvement in
disaster-free workplace. In addition, labor and work permission processes
management are working together to strengthen the • Conducting activities to promote a heathy workplace
- Integrated MSDS management, work environment
management of accident and disaster prevention.
measurement, and special examinations
• Responding to internal and external safety issues
- Review the enforcement decree of the revised Industrial Establishing five safety rules at worksites Strengthening safety training Repairing pedestrian passages
Safety and Health Act
74 75
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Rule & Responsibility

Zero-accident campaign Conducting safety diagnoses of Creating a healthy workplace Safety and health
A zero-accident campaign is launched ev- cranes and forklifts management activities
Occupational disease prevention
ery February and employees write a safety Safety examinations are regularly per-
activities Occupational Safety and Health I Occupational Safety and
pledge to raise awareness of safety. In the formed on potentially dangerous machines
Committee Health Committee I
winter, each team conducts fire prevention and devices. Monthly safety checks of Working environment measurement
activities, including elimination of fire risks cranes are provided by an on-site subcon- and general/special health checkups The Occupational Safety and Health Com-
I Number of accidents occurred I
and a slogan contest. tractor. For six cranes and 66 hoisting acces- Work environment measurement is conduct- mittee is operated under the labor relations President/
2016 2017 2018 and environment division/CLO. Key health CEO
sories identified for their potential high risk, ed biannually for all processes (233 sites) to
Accidents Gumi 1 3 1 Repair of exterior pedestrian detailed examinations were conducted by create a pleasant working environment. The and safety issues are jointly reviewed and
(case) Indong 0 0 0 passages decided by representatives of labor and
external specialists. A total of 43 issues were results are monitored to determine whether
Labor relations and
Donghae 0 0 1 To ensure employee safety, we repaired a found and addressed, and one crane will be harmful factors are exceeding set limits or management through this committee.
environment division/CLO
Company 1 3 2 1,360-meter pedestrian passage: sidewalk replaced in 2019. abnormal phenomena are occurring. In ad-
total It is composed of 15 members from man- Occupational Safety and
blocks were installed and painted; safety dition, general and special health checkups Health Committee
Company-wide 0.08 0.22 0.16 Forklifts are being managed by an on-site agement, including a person responsible
industrial accident fences were erected to separate the paths are provided for all employees (980 and 514
subcontractor. In a non-destructive inspec- for safety management, and 15 labor
rate (%) for forklifts and trucks from pedestrian pas- employees respectively) on an annual basis.
representatives, including the head of the
Industry-wide 0.19 0.29 0.28 sageways; and a door was installed at the tion of 54 high-load forklifts, a minor crack Gumi Indong Donghae Constru-
ction
industrial accident was found in one forklift and improvement Lifestyle disease prevention activities labor union. Key considerations include: plant plant plant projects
access road to a crosswalk.
rate (%)
measures were taken. making a plan to prevent industrial acci- [ HSE [ HSE [ HSE
Smoking cessation programs team ] team ] team ]
[ HSE
dents; establishing and revising pertinent team ]
As part of the efforts to promote employee
PSM evaluation at the Gumi and regulations; providing training to workers;
health, smoking cessation programs were
I Frequency rate of injury I Eliminating risks of potentially Indong plants checking and improving the working envi-
operated for six months from February to July.
dangerous equipment We implement process safety management ronment; managing employee heath; and
2016 2017 2018 Ten employees at the Gumi and Indong plants collecting statistics on industrial accidents.
Risk evaluation of all processes (PSM) to prevent fires and explosions at
Frequency Gumi 0.75 2.12 1.53 successfully completed the programs and
rate of copper smelting furnaces and boilers that
Indong 0 0 0 Regarding the potential risks in each pro- were able to quit smoking. The committee meets on a quarterly basis
injury use LNG. This covers twelve categories,
Donghae 0 0 0 cess, we have continued to evaluate their to consider and vote on key issues. Ap-
including process safety material manage- Employee health management I OHSAS 18001 certification I
Company total 0.40 1.17 0.83 frequency and degree, identify critical risks, proved items are announced to all employ-
ment, emergency measures, and internal
and devise related improvement measures. Employees who receive abnormal find- ees. In 2018, a total of 65 items were consid-
* Frequency rate of injury = Number of audits, according to which our PSM status
industrial accidents / (Yearly working hours) The pertinent company rules have been re- ings in their health checkups are provided ered and decided, and actions have been Domestic Gumi, Indong,
X1,000,000) is evaluated by the Ministry of Labor every worksites and Donghae
vised to more systematically re-examine our with consultations with doctors and drug taken in response.
four years. We have so far maintained an
full range of improvement measures span- prescription benefits. In addition, flu vacci-
acceptable S rating. OHSAS 18001
ning from risk elimination to safety gear. nations are offered to employees and their
families in partnership with local clinics to We have been carefully maintaining OHSAS Overseas
LSHQ
worksites
promote their health. 18001, an international standard for safety
and health management.
Power transmission
Constru- line laying;
Every year, management reviews the per- ction and submarine
formance over the previous year, sets goals projects cable installation
(underway)
for the current year, and operates programs
for improvement. Each team internally
analyzes implementation status, identifies
issues, and conducts independent improve-
ment activities.

1 4
Our OHSAS 18001 compliance status is eval-
uated by the certification organization UL
on an annual basis to ensure we are meet-
ing global standards for safety and health
management.
1) Conducting safety diagnoses of cranes
and forklifts
2) Establishing five safety rules at worksites 4) General and special health checkups
for all employees
3) Installing safety fences at worksites 2 3 5
5) Smoking cessation program
 9
76 77
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Expertise

Improving employee satisfaction

EXPERTISE
Organizational competence/vitality indexes
Strategic direction
Organizational competence recently recorded 54/100 points, the same as in the previous

Talent
Supporting employees with a sense of ownership in
year, while organizational vitality rose two points from 2017 to reach 72 points. Among the
their jobs to make a great achievement together

Management
five elements on the organizational competence index, the score for team member capacity
Key tasks rose slightly (two points). Organizational vitality, an element of organizational effectiveness
Improving employee satisfaction showed a significant increase of four points. I 2018 organizational
Organizational competence and vitality / Worksite competence/vitality indexes I
I Organizational competence index I Organizational vitality index
satisfaction
(three-year trend) I (three-year trend) I
Securing talent and ensuring fair HR management
Employment / Performance management / Fair Organizational direction 66 66 Organizational effectiveness 58 62
evaluation / Appropriate compensation System capacity 44 45 Work effectiveness 70 71
Employ welfare benefits Functional capacity 46 47 Individual effectiveness 73 75

54
Organizational competence
C.O.R.E.Prize Leadership capacity 60 60 Relationship effectiveness 83 84

Nurturing talent Team member capacity 64 66

Launching a mobile app training program (Touch 72 72
54 54 54 70
Class) / Offering leadership training / Strengthening job
competence / Promoting One LS C&S for suppliers /
Supporting overseas subsidiaries

72
Organizational vitality
Performance in 2018
Securing talent (unit: point) (unit: point)
Nurturing
and ensuring fair C.O.R.E. Prize 2016 2017 2018 2016 2017 2018
talent
HR management

Worksite satisfaction level

· Operated a · Launched a mobile app for employee
performance training The company-wide composite satisfaction level increased 0.9 points from the previous year.
management · Offered leadership training: an assimilation For the worksite satisfaction level, it has improved at all worksites except the Gumi plant. We
system workshop, and training for each job position will continue in our efforts to improve the working environment at all our facilities.
· Appropriate · Strengthened job competence: technology
rewards: sales training, DX academy, and growth
Customer First facilitator course I Company-wide composite satisfaction level I
and R&R prizes · Supported overseas subsidiaries: leadership

“
Based on our belief that sustainable performance can be
training for team leaders at LSHQ
· Promoted One LS C&S for suppliers: 20
power distribution suppliers
74.5

73.2
73.6
74.5

achieved only through the efforts of the people involved, 72.8 0.9points
72.3 increase year
we strive to secure and nurture creative talent. The
on year
Targets in 2019
talent we seek includes: professionals with outstanding
• Improving employee satisfaction
2013 2014 2015 2016 2017 2018
job competence; members leading the development - Enhance organizational vitality index
of the organizational culture by implementing its core - Increase worksite satisfaction index
I Worksite satisfaction level I
• Securing talent and ensuring fair HR management
values; and global leaders actively responding in an ever-
- Optimize HR management Gumi Indong Donghae
changing environment. We aim to create an environment - Enhance employee competitiveness
2016 71 2016 73 2016 80
• Nurturing talent
in which the company and its employees grow together,
- Focus on the training of Korean and local employees in overseas 2017 71 2017 74 2017 78
thereby creating greater value. subsidiaries (local team leaders, and dispatched employees)
2018 2018 2018 79
71 77
- Operate programs for job competence
78 79
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Expertise

Securing talent and ensuring fair HR management Employment welfare system

Employment We operate a welfare system that covers six areas crucial to employee health and economic
I Employment process I We strive to find the right people for the company who are positive, creative, and profession- stability, thus allowing them to take pride in the company and concentrate on their work. In
al. We employ people for non-career, career, and job-type tracks through the process of paper addition, we are offering programs to promote family-friendly management so that a positive
1 screening → personality and aptitude tests → working level interview → executive interview. working environment can be created.
Paper In 2018, as part of these efforts, we invited the family members of employees to an event
screening In order to strengthen our competitiveness, we also hire international professionals through
an overseas recruitment network. named “Homepany.” This helped lessen the barriers between them and the company. In
2019, we will encourage employees to take their vacation days on sandwich days falling
2 Performance management between two holidays in March, April, May, October, and December so that they can refresh
Personality We operate the SPCM (Strategic Performance & Competency Management) system to achieve themselves and restore their energy.
and aptitude
tests outcomes that align the company’s goals with individual goals.
Healthy life Cultural life Energetic life

Once key tasks are set to ensure each functional organization and team achieves its man-
3
agement goals, employees establish a development plan for the competencies required
Working level for reaching performance targets for the defined key tasks. The advantages of SPCM are as
interview
follows: employees feel more responsible for their work when they take part in the setting of · Medical expense reimbursement for employees
· Support for in-house club activities · Reward for long-term employees: vacation
· Medical expense reimbursement for family
performance targets. They are motivated to determine a direction for their career develop- · Gift cards for anniversaries, including and financial gifts for employees with 5, 10,
members of employees by using a company
ment in a systematic manner by analyzing their strengths and identifying what needs to be birthdays or wedding anniversaries 20, 25, 30, and 35 years of service
4 welfare fund
· Cultural events such as the provision of · Free recreational facilities such as
Executive improved and developed. · Free medical checkups for employees and their
condominiums and a Baekam training center
spouses sports game tickets and lectures for family
interview members of employees · Company outings: twice per year (in spring
I SPCM (Strategic Performance & Competency Management) system I · Sports facilities for employees
and autumn)
· Healthcare rooms or clinics at worksites
Communication / Consensus
· Counseling programs at the head office and R&D
I Composition of employees I • Allocating tasks / center
Setting performance targets
Number of Producing
• Adjusting the targets /
results Organization
employees Checking the progress Stable life Hopeful life Prosperous life
Permanent Office 992 Business Division Team Individual • Measuring performance
worker Plan targets targets targets Growth
• Setting targets for
Production 872 capacity development
Developing
worker • Providing support and guidance,
capacity and checking the progress
Subtotal 1,864 Individual
· Family occasion support: money gift or · Monthly in-house online training programs · Financial aid of middle school, high school
• Measuring capacity
Temporary 80 condolence money for family occasions of on job skills, leadership, foreign languages and college tuitions for the children of em-
Total 1,944 Communication / Consensus employees such as weddings or funerals ployees
· Mid-/long-term educational support for
· Dormitories or employee apartments at local graduate schools, MBA, and intensive · Housing loan support
Fair evaluation worksites
foreign language programs · Discount for our sister company products
In order to evaluate performance in a fair and objective manner, we disclose our evaluation crite- · Group life and health insurances for
· Outside training programs on job skills and (LS Networks)
employees
ria and follow a pre-defined process. Coaching and progress check are provided to help employ- foreign languages · Retirement gifts
· Commuting support: commuting bus services
ees produce results and develop capacity. The results are released to the pertinent employees,
teams, or divisions to ensure transparency and they are allowed to raise their objections to the
I Employee welfare fund I
results. While doing so, employees become more receptive to evaluation results.
2016 2017 2018
We also make a variety of efforts, including self-development planning and coaching, to effi-
In-house welfare Beneficiaries (person) 322 339 361
ciently link the evaluation of employees to nurturing talent. Amount (USD thousand) 440 447 447
fund provided
School expense Beneficiaries (person) 577 420 365
Appropriate compensation support Amount (USD thousand) 2,302 2,100 1,914

Based on our HR policy, we operated a compensation system reflecting employee perfor-

Retirement pension system
mance. Compensation is provided based on the evaluation results of group and individual
performances in the form of annual base salary, management incentives, and individual in- Since 2011, the retirement pension system has been operated for all employees. They can
centives. Employees with outstanding performance are provided with overseas training and choose between DB (defined benefit) and DC (defined contribution) plans.
awards as well.
80 81
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Expertise

I C.O.R.E.Prize I Leadership training by job position

We provide leadership training to promotion-track employees, newly promoted employees,
I C.O.R.E. Concept I and team leaders to help them define the leadership required by their job position and fulfill
C.O.R.E. represents four principles on which our employees should act. Just like a cable has a core at its center, their roles as leaders.
our C.O.R.E. values should stand at the center of the minds of all our employees.
Group coaching programs for team leaders
These programs aim to help team leaders strengthen the ability to guide their teams and
Customer First One LS C&S
produce results. In 2018, CORE coaching programs were conducted for newly-promoted team
LS C&S is always thinking about its LS C&S values benefits that are shared
leaders at headquarters and the Gumi plant. They were provided in four three-hour sessions Group coaching programs for

16.5
customers. We work to understand their by all. We listen to one another and work team leaders
(three hours per session) from mid-August to early-December. On the theme of performance
needs, put ourselves in their place, and together for sustainability. We are one. The
management from establishing targets to evaluation and follow-up, a variety of methodolo-
stand at their side. To strengthen customer- One LS C&S Prize goes to employees who
hours
oriented management, employees with produce substantial results through support/
gies including scenario practices and video toolkit were applied to enhance their implemen-

C O
outstanding sales performance are awarded cooperation on behalf of all LS C&S. tation. Participants reported that they will apply what they learned during the training to
the Customer First Prize. running their teams and it will be useful in carrying out their roles as team leaders.

R E
Before the programs Group coaching programs After the programs
Rule & Responsibility Expertise
LS C&S sticks to the principles and fundamentals Expertise provides the foundation of LS C&S. Orientation 1st session 2nd session 3rd session 4th session Follow-up sessions
for all processes. We take initiative, work We are professionals committed to innovation
honestly, and learn lessons from failures. To and to challenging ourselves to go beyond the Preparatory
Revie- Evalu-
Setting wing ating Follow-up
enhance compliance with principles and basics, bounds of what had been considered possible. programs for Design targets perfor- perfor-
Reflec-
sessions
performance workshop tion
(Plan) (optional)
we award the Rules & Responsibilities Prize The Expertise Prize is designed to strengthen management mance mance
(Do) (See)
to employees with excellent performance in the expertise and is granted to employees who
production/development. contribute to business performance through 3h 1.5h 3h 3h 3h 3h

R&D activities.

Design workshop Group coaching programs Five follow-up

emails

Surveys and diagnosis

Evaluation / Diagnosis

Result report
Problem-solving
Nurturing talent
· Group coaching Announcement to participants
program orientation center
Sending text messages seven days and
· Design workshop
I Mobile app for employee training I Launching a mobile app for employee training one day prior to each session Problem-solving
- Identifying targets Reading materials center
As part of the efforts to proactively respond to changes in IT stemming from the Fourth Indus- - Checking the current
Emailing reading materials seven days
Telephone and
state and targets email services that
trial Revolution, we launched a mobile app for employee training. To enhance productivity and 14 days after each session allow participants to
- Agreement on the
ask questions or talk
and performance by concentrating working efforts and ensuring work-life balance, ‘LS C&S group session schedule Utilizing social media to promote the
about difficulties
programs
- Ground rules by group
WorkWay’ mobile-based programs were put into operation on June 1, 2018. they are facing
- Defining R&R by group Using Naver BAND, a mobile application at work after the
to manage tasks and communicate with programs (open for
Employees can take courses on our products using this app, including ‘LS Biz Master’ and Un- coaches. six months)
derstanding Product Technology in the Energy Business, or complete compulsory programs
such as on sexual harassment prevention and awareness-raising on people with disabilities.
Lectures for executives
Offering leadership training
We invite renowned experts from different fields to give quarterly lectures to executives and
Assimilation workshop the leaders of teams, divisions and Groups. These lectures on topics ranging from AI to tech-
We provide an assimilation workshop early in each year to help newly-promoted or trans- nology trends to leadership as seen through the lens of psychology, literature, and classical
ferred executives and heads of Groups or teams to win the trust of their team members and music serve as opportunities for them to learn more about current trends and issues and
ensure continuity in the work environment and the results of their Groups or teams. For this respond more positively to changes.
three-hour program, the management principles and directions of Groups and questions and
requests from members are shared with their leaders.
82 83
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Expertise

Strengthening job competence Growth facilitator program Supporting overseas subsidiaries CHINA
Technology sales training This Core Communicators program aims to Leadership training at LSHQ China
enhance communication and facilitation We provided leadership training to team leaders at our Chinese subsidiary LSHQ. This ac-
Our technology sales training consists of 41
skills for cooperative work, discussion, and tion-learning-based program is aimed to help them proactively seize the initiative by recog-
programs, with job competence tracks for
decision-making and promote the use of nizing changes in the role of leadership. They learned not only about prioritizing tasks for
general sales and technology sales, target-
these skills on teams. their teams and conducting tasks through performance management, but identifying the
ing assistant mangers and rank-and-file em-
ployees. We plan to operate these programs roles of leaders in contributing to interactions with team members and achieving results
I Five programs for Promoting One LS C&S for suppliers
throughout the process. We plan to phase in this program across other overseas subsidiaries.
on a regular basis. CHINA
strengthening job competence I For our suppliers in the power distribution
Dispatch programs for exemplary local employees
Understanding DT and DT Academy area, lectures on the roles and responsibil-
Local employees of overseas subsidiaries who show exceptional performance at work were INDIA
programs ities of leaders were given to CEOs. We also VIETNAM
given opportunities to gain experience at our domestic production worksites and receive LS
Understanding DT is a program to help exec- provided sales employees with training pro-
Technology sales C&S Way training. These programs are aimed at motivating them to take pride in the compa-
utives and division heads understand digital grams, including on understanding LS C&S
training ny and contribute to producing results by learning our management philosophy and culture.
transformation (DT) to recognize the direc- and raising loyalty, sales capacity building
Local employees from Vietnam, China, and India took part and reported that the programs
tion of social changes and prepare for the for new products, bond management and
were highly useful and satisfactory. In addition, they received positive evaluation results from I Three-year employee training status I
future. Meanwhile, working-level employees marketing and promoting networking and
their mentors and team leaders at the head office and domestic worksites. We will continue
cooperation between LS C&S and its suppli- 2016 2017 2018
join a DT Academy, a four-day program with
Understanding to devise increasingly effective programs through a continuous program of improvement. Average training hours 51 42 54
of DT, five sessions covering the background of ers. Participants from 20 suppliers showed a
per employee (including
DT Academy DT, utilization of big data, and programming positive response. production workers)
HR development system
with R and Python. Average training hours per employee by job position
Our HR development system is classified into five tracks and six development stages. They Executives 41 20 24
include programs for newly recruited career/non-career employees, the SLP (Solution Leader (including heads of divisions)
DT course for team leaders and
Program) course, leadership programs, common/specialized training courses, and foreign Managers (from managers 102 77 78
DT course for team members to general managers)
language programs. There are also programs on sexual harassment prevention, aware-
leaders and In this program, team leaders learn the Assistant managers and 30 97 136
members ness-raising on people with disabilities, workplace quality, and environment safety and that rank-and-file employees
process of understanding DT, big data uti-
are compulsory for all employees. Training expenses 2,755 2,728 2,773
lization, and analysis and planning. Desig- (USD thousand)
I Our HR development system I
nated team members identify tasks related
to their work for analysis and planning B. Business management and leadership C.Job
A. Value D. Global E. Misc.
Capacity- Newly-promoted employees and leadership Key talent Common Specialized
using big data and implement the results.
strengthening
program This program is provided to the production S-ELP1)

Executives
Programs for EMP2)
group and will be expanded into other ar- new executives

New entry (for newly-hired career employees)

Business
eas, including sales, R&D, and support.

Vision and core values (for all employees)

LCP3) management
and leadership Mid-/long-term
Capacity-strengthening programs

Programs for employees dispatched over

managers

Short-term English programs (presentations/negotiations)

seminars

In-house/external foreign language programs

General
for team leaders
Evening
Capacity-strengthening program

Intensive- Chinese/English/ China Biz-Academy

On-boarding course graduate school
Growth facilitator Programs for newly-promoted team
Following a similar program for managers LS MBA

LS partnership
program
leaders

LS-SKKU Job competence

in 2017, the scope has been expanded to

Deputy general
managers
Promotional training -
technology training modules (12)

Environment safety training

general manager
management
include assistant mangers and rank-and-file course
Problem-solving
Training
Teamwork Roadmap

Quality training

Patent training
DT: digital transformation employees and support them in achieving Promotional training -
Management Strategic by Job

Solution Leader Program

deputy general manager
academy management (sales,

Managers
performance targets. Basic accounting R&D
Programs for new
managers Cost analysis quality,
etc.)
Information analysis
Planning ability

managers employees
Promotional training

Assistant Rank-and-file
– newly-promoted enhancement
manager
Decision making
New Entry
Self-leader
(open) Interpersonal skills
Promotional training -
assistant manager
Presentations
Negotiations

1) Senior Executive Leadership Program. 2) Executive Management Program. 3) Leadership Challenge Program.
 0
84 85
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Expertise

Operation of an environment HSE support activities for overseas

EXPERTISE Strategic direction management system and domestic subsidiaries
Strengthening environmental management for zero To support our domestic and overseas sub- HSE diagnoses
HSE1) System

Advanced
accidents and pleasant work environment and contributing sidiaries and perform health, safety, and
to a green society by reducing greenhouse gas emissions. Certification transition to 〮 [LSEVK] Internal evaluation for
environmental management at the global ISO version upgrade

Green Management
ISO 14001:2015
level, we conduct diagnoses on their HSE 〮 [LSHQ] Proposal of wastewater
Key tasks Since we announced our HSE policy for the treatment measures
processes. From 2016 to 2017, all of our do-
Operation of an environment management system sustainable development of the surround- 〮 [G&P] Support in devising plans
HSE system / Investment in environmental facilities
mestic overseas subsidiaries were examined to manage fugitive dust emission
ing environment and local communities, facilities
Efficient use of resources in the areas of environment, safety, heath,
we have been pursuing environmental
Usage of key resources / Water resource at plants / Plastic and firefighting. We confirmed the actions to June / May / First quarter
collection and recycling management that enables both business
be taken for identified issues and the state of
Use of green materials growth and environmental conservation.
progress of established improvement plans. HSE activities by subsidiaries
Product lifecycle management / Chemical management at In 2018, we contracted with a professional
plants / Chemical management of products consulting firm and worked together on an We regularly met with subsidiaries to discuss 〮 [G&P] Training on transition to
Response to climate change ISO 14001:2015 transition plan. A gap anal- ISO 14001: 2015
Climate change response system / Energy use and GHG issues and response measures regarding
ysis was conducted based on the changed 〮 [LSHQ] Support in establishing
emission management / Reduction of GHG emissions their HSE activities. For new subsidiaries, we safety management rules
requirements. Internal review by the com-
Emissions and waste discharge management provided support for environmental facilities First quarter / August
Air management / Waste water management / Waste pany and verification by an external agency
and the approval process.
management were performed for new specifications,
including ‘opportunities and crises in an In addition, our HSE rules were translated HSE cooperation
Performance in 2018 organization,’ and ‘lifecycle-thinking in envi- into English to build an enterprise-wide
〮 [LSEVK] HSE workshops
Operation of an · Conducted the certification transition to ronmental risk assessment.’
environment
database, and disaster and environment (issues and response measures)
ISO 14001: 2015; established a company-
management wide HSE database; and supported management indexes for HSE were an-
system subsidiaries in HSE In September, we completed the transition February
alyzed. In 2019, we will launch an HSE
following the Stage 1 and primary evalu-
Efficient use of · Strengthened the efforts to implement the
planning team to improve our support for
agreements on product plastic collection ations performed respectively in July and
resources Support for new subsidiaries
and recycling
August. We have been maintaining OHSAS domestic and overseas subsidiaries as they

· Built a system to manage harmful 18001 through an annual evaluation. For reduce their risks. 〮 [LSEVP] Specifications of
Use of green chemicals; and complied with the Act on the environment facilities
the transition to ISO 45001 by 2020, we have 1) Health Safety Environment
materials Registration and Evaluation of Chemicals in 〮 [LS Alsco] Approval process
regards to imported chemical substances initiated working-level training and a con-
tract with a professional consulting firm. We First to third quarters /
Response to · Established GHG inventories for domestic First to fourth quarters
climate change and overseas subsidiaries will systematically continue these sustain-
able development efforts.

“
LS C&S is pursuing the goal of becoming a leading
Emissions and
waste discharge
management
· Conducted activities to reduce risks of
harmful materials; and responded to laws
on fugitive dust emissions I The 2018 ISO 14001:2015 I The 2018 OHSAS 18001:2007
certification I certification I
company in the areas of health, safety, and
environment (HSE). To this end, we have promoted Targets in 2019

green management to perform our business in an · Operation of an environment management system: strengthen
the role of HSE Control Tower enhance HSE management; and
eco-friendly manner. We are striving to minimize upgrade the HSE certification version.
· Efficient use of resources: make a plan for facilitating product
the environmental impact of every aspect of our
resource recycling
business by applying standards that surpass the legal · Use of green materials: strengthen chemical management
conduct Clean Factory activities, and build inventories of
requirements for pollutant management. Considerable imported chemicals.
efforts are being made at our domestic plants and · Response to climate change: provide training on company-wide
response to climate change
overseas subsidiaries to manage HSE on behalf of our
· Emissions and waste discharge management: proactively
employees and local communities. respond to the pertinent laws and regulations
86 87
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Expertise

Efficient use of resources

Securing transparency in HSE Investment in environment facilities Usage of primary resources
Report and disclosure of a chemical Improvement of treatment facilities We conduct a variety of activities to efficiently use resources, such as metals and plastics, to
release survey for harmful chemicals establish a resource recycling system. Our development and production teams review and
A chemical release survey aims to encour- We repaired two harmful chemical treatment develop ways for efficient use of primary resources, including electrolytic copper and alumi-
age companies to voluntarily reduce their facilities for the magnet wire production num used for conductors, and polyethylene and polyvinyl chloride for insulators, and identify
2018 volume of water

27,000
release of chemical substances by report- process through the replacement of leakage measures to recycle raw materials and products. In addition, we successfully completed the resource saved
ing to the government on the release and protection walls and firewalls and the instal- resource recycling performance management system projects with the Ministry of Environment
transfer of chemical substances in their lation of forced exhaust systems in accor- to further promote the recycling of wastes. tons
business operation. We will commission an dance with the Toxic Chemicals Control Act. I Usage of primary resources I (unit: ton)
external agency to conduct a survey on the
chemicals used by our plants (15 types of 2016 2017 2018
I Replacement of leakage protection Electrolytic copper (Cu)         256,910 289,494 288,368
chemicals including copper for Gumi, ten

3.1%
walls and firewalls and the installation Aluminum (Al) 34,784 32,113 22,302 Water use intensity
including aluminum for Indong, and three
of forced exhaust systems I Polyethylene (PE) 12,803 23,474 15,626
including copper for Donghae). This annual
Polyvinyl chloride (PVC) 7,660 4,165 3,629
survey is conducted in April. The survey
results will be submitted to the Ministry of Water resources at our plants
Environment and disclosed in its PRTR (pol- Use and management of water resources To address global water resource issues,
lutant release and transfer register) system. we are engaging in activities to minimize risks related to water supply needed for our business I The flow chart of
water resources I
operations. Water resources use at plants includes cooling water for both the cable extruding
process and for the melting furnace for electrolytic copper and aluminum. Water is also re- Source of supply
Gumi/Indong:
quired for human uses such as drinking and sanitation. As a result of water conservation activi-
Nakdong River
ties in 2018, total water consumption dropped by 27,000 tons from the previous year. Due to an Donghae:
10.1% decrease in production volume, water use intensity rose by 3.1%. Going forward, we will Dalbang Dam
continue our efforts to conserve water resources based on our medium-/ and long-term plans. Public water supplies:
514,951 tons
I Water usage and water use intensity I (unit: ton) Industrial water:
2016 2017 2018 25,966 tons
For human uses         491,678 514,951 447,904
For industrial uses 33,127 16,250 25,966 Manufacturing
Underground water 6,538 5 0 processes
Installation of chemical leakage Company total 531,343 531,206 503,870 LS C&S
sensors Water use intensity [Usage (ton) / 1.38 1.27 1.31
In-house
Disclosure of corporate environment treatment
Disclosure of environment Chemical leakage sensors and gas leak de- Production volume (ton)]
information plants :
information
tectors were installed at chemical treatment 59,318 tons
To fulfill our corporate social responsibility, Plastic collection and recycling
facilities, along with related processes allow-
we disclose the environment information of Collection and recycling of plastic from power/communication cable wastes Sewage
ing an immediate response to any possible treatment plants
all of our worksites, including headquarters As our power and communications cables have long-term durability, products that were sold
chemical or gas leakage.
and plants, in accordance with the Act on the decades ago are now generating wastes. To promote the recycle of plastic from power/commu-
Support for Environmental Technology and nication cable wastes, we signed a voluntary agreement on plastic waste collection and recy- Discharge
Industry. The information includes green man- I Leakage sensors / Gas leak detector I cling with the Ministry of Environment. Since then, we have collected and recycled plastic from
agement, resource and energy conservation, power/communication cable wastes. We are providing support to recycling companies who
GHG emissions and environment pollution. also signed the voluntary agreement in order to explore new markets through increasing the
volume of recycled plastic and enhancing the quality of recycled compound.
Purchase of pollution insurance policies
To compensate for any environment and I Voluntary collection and recycling of plastic from power/communication cable wastes in Korea* I
Pollution insurance policy
pollution accidents that could occur in our 2016 2017 2018
*Products for collection and recycling are
business operations, we have environmental Plastic used (ton) 20,966 21,708 22,799 limited to finished products sold to end-cus-
pollution liability insurance in line with the Plastic collected and recycled (ton) 3,627 3,578 4,163(E) tomers. The 2018 recycling volume will be
confirmed after June 2019.
guidelines of the Ministry of Environment. Plastic collected and recycled (%) 17.30 16.48 18.26(E)
88 89
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Expertise

Extended Producer Responsibility for plastic packaging materials Chemical management at plants
The EPR(Extended Producer Responsibility) is being implemented in which domestic producers Chemical management
using plastic packaging materials are required to collect and recycle wastes. To fulfill our obli- The use of toxic chemicals in our plants has steadily decreased as a result of efforts to minimize I Use of harmful chemicals I
gations for recycling plastic packaging materials, we have joined the Recycling business mutual such substances. However, with the solid lead used in the lead sheathing process being placed
aid cooperative and are proactively reporting on the volume of packaging materials delivered, on the list of toxic chemicals under the revised Toxic Chemicals Control Act, our designated use 1,313
including OEM products. We are regularly paying our recycling contributions. of harmful chemicals significantly increased. In response, we took necessary measures in accor-
dance with this revision, including gaining approval for our processes using lead, conducting off- 872
I Plastic packaging materials recycling I I Plastic packaging delivery and recycling in Korea I (unit: tons)
site risk assessment, and supplying all employees handling chemicals with pertinent training
849
2016 2017 2018 1) and personal protective gear. We are also maintaining an emergency response system for any
Public-
Private Plastic packaging delivered 235 211 - possible chemical leakage, fires, or explosions. Since detailed diagnoses were conducted in 2017,
collection Required volume of recycling 178 156 - facility improvements have been made. In 2018, we replaced firewalls and lights, repaired leak-
system Recycling volume 235 212 -
age protection walls, applied corrosion-resistant paint, and installed forced-air exhaust systems. (unit : tons)
1) The 2018 recycling volume will be confirmed after June 2019. 2016 2017 2018
Contribu- Strengthening harmful chemical management process
tions

Use of eco-friendly materials To promote the safe management of harmful chemicals and prevent accidents, we launched
Pulic- chemical safety communities in cooperation with the Ministry of Environment. Worksites
Recycling Private Product lifecycle management
cooperative waste sorting joining the communities share information on pertinent laws and regulations and on mea-
plant The goal of our product lifecycle management is to bring value to customers by manufacturing sures to safely manage chemicals. They also benchmark best practices of others. In addition,
products that efficiently transmit energy and information with a minimal impact on the envi- mock exercises are practiced to respond to any potential accidents. Joint emergency rescue
ronment. In response, we are concentrating our efforts on developing products that meet a drills are being conducted with the Ministry of Environment and local governments. As part of
Financial Waste variety of user environments, allow the transmission of large volumes of electricity, and can be
support resource the efforts to reduce the use of harmful substances, we are testing chemicals to replace cur-
rating utilized for new and renewable energy. Meanwhile, we are operating a chemical management rently-used methyl ethyl ketone in printing. When the tests are completed, the findings will
system
Distribution system, promoting the recycling of collected wastes, supporting the recycling industry, and be applied to production.
center Deregula-
tion conducting activities for energy conservation in production and for reducing GHG emissions.
Moreover, the introduction of the CMS (Chemical Management System) is being reviewed.
Our activities After the decision-making process is complete, the findings will be implemented for more
efficient and systematic management.
R&D Design Procurement Production
Recycling
companies · Developing high- · Conducting · Managing · Conserving energy
efficiency products resource-saving and analyzing / Reducing GHG Product chemical management I Management of chemicals I
· Developing design chemicals emissions
products in new · Applying eco- · Promoting green · Improving
We monitor trends in domestic and international environment regulations through various
energy businesses friendly materials procurement productivity channels and reflect them in our in-house chemical substance management rules. Seminars on ELV
environmental laws are provided to our employees and suppliers, allowing them to proactively
Product lifecycle
manage any risks related to the enactment or revision of laws and fulfill their legal obligations.

65

Ro
Propositionia
n

HS
Califor
Compliance with the Act on the Registration and Evaluation of Chemicals

Ⅱ
Raw material Logistics / Product use / Disposal / Domestic companies importing or manufacturing more than one ton of phase-in chemical
collection and Production
Construction Maintenance Recycling substances or 100 kilograms of non phase-in are subject to conducting hazard evaluations
processing

CH
EE

EA
and submitting the report to the Ministry of Environment. We annually report to the govern-

W
-R E
/K
REACH
ment the volume and purpose of imported chemical substances and fulfill the obligation of
Value we bring to our stakeholders
registration of the pertinent chemicals in consultation with their suppliers.
Suppliers LS C&S  onstruction
C Customers Waste
companies / collection/ I In-house and external seminars on environmental regulations I
· Saving · Creating new Customers · Achieving product safety recycling
resources/ business · Securing service stability industry
energy opportunities · Saving energy · Mitigating loss from
· Establishing · Saving raw and cost for energy transmission · Reducing
a green materials and logistics and wastes
construction · Ensuring the ease of
partnership energy · Increasing
maintenance work
· Reducing wastes/ a resource
· Reducing the Scope 3
waste water/ recycling rate
emissions of customers
emissions
90 91
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Expertise

Response to climate change GHG inventories for domestic and overseas subsidiaries
Climate change response system As part of the effort to find opportunities to reduce GHG emissions, we identified the sources
I Climate change risks of GHG emissions at four domestic and overseas subsidiaries and established an inventory. I Refrigerating machine
Strategies for climate change response
and opportunities I Our GHG emissions calculations and management activities will be expanded to all of our replacement at the Gumi
To respond to climate change at the company level, different teams from HSE, facilities, pro- and Indong plants I
subsidiaries.
Risks duction, finance, and legal affairs are working closely together. They are required to report on Low-performing refrigerators
trends and their performance to management. We provide customers with information on our were replaced by high-
R Weakening price I Sources of GHG emissions of domestic and overseas subsidiaries I
efficiency versions, allowing
competitiveness due to increased responses to climate change through the CDP (Carbon Disclosure Project) supply chain. Inter-
LSHQ LSCW LS Buildwin G&P plants to reduce their use of
carbon cost for the response to the nal experts monitor trends in the carbon market and international climate change agreements electricity and minimize their
domestic emission trading scheme Scope 1 Stationary combustion -
and share them at the company level in order to refine the understanding of the pertinent laws impact on the ozone layer
Mobile combustion through a new refrigerant.
P Additional cost for damage and customer requirements.
Process emissions - - -
prevention/recovery and clean-
room management Scope 2 Electricity
Management of energy use and GHG emissions Steam - - - -
O Possible loss of business
opportunities for not being able to Energy use
meet customer needs
We set a target for energy use by worksite and production team and follow up with tasks to
Reduction of GHG emissions
O More efforts required for GHG meet them. The state of progress is monitored based on monthly energy use and cost data. A
emissions reduction and energy
variety of activities to reduce energy use are being conducted and best practices are shared Energy conservation and GHG emissions reduction at worksites
transition
and benchmarked among worksites through technology exchanges. We have continued with investment in energy conservation and GHG emissions reduction.
Energy conservation activities worth USD 1,342 thousand were conducted focusing on UT
Opportunities optimization, facilities and UT efficiency, and improvement of energy-consuming processes
I Energy usage and intensity I (unit : TJ)
R Increase in sales of products (facilities). As a result, GHG emissions were successfully reduced by 1,311 tCO2eq.
related to new and renewable 2016 2017 2018
energy (superconducting,
Fuel 734 719 656 Publication of a mobile company magazine
submarine, industrial and new-and-
Electricity 2,152 2,133 1,999 The publication of a mobile monthly company magazine starting in 2018
renewable-energy-related cables)
Steam 147 157 159 allowed us to reduce the monthly number of printed magazines by 300.
R Strengthening competitiveness Total 3,033 3,009 2,814 I Fuel economizer
through high-strength, heat- As a result, we saved 468 kilograms of resources and eliminated 524kg- (feed water preheater)
Energy use intensity (TJ / KRW 100 million) 1.190 0.987 0.844
resistant, and fire-resistant cables CO2eq of GHG emissions generated from paper production. replacement at the
* Based on electric energy conversion: 9.6MJ/kWh (including loss from power transmission/ distribution and production) Donghae plant I
P Enhancing competitiveness
through advanced construction Solar farms construction plan by LS Buildwin The replaced fuel economizer
technology for climate anomalies GHG emissions LS Buildwin will construct 2.5MW solar farms utilizing rooftop at an industrial increases the temperature of
We have been monitoring and managing the Scope 1 and 2 GHG emissions of our worksites boiler feed water from 90℃
O Enhancing corporate images cable building within the Indong plant to respond to growing energy transi-
to 120℃, resulting in lower
by strengthening external on a regular basis, and independently calculating Scope 3 emissions, indirect emissions re- tion requirements and the government’s “Renewable Energy 3020” policy. consumption of boiler fuel.
communication
garding waste disposal, use of fuel, energy production, and leased assets.

R Regulatory factors
P Physical factors I Scope 1·2 GHG emissions and intensity I (unit: tCO2eq)
O Others
2016 2017 2018
Emissions and waste discharge management
Scope 1 40,937 40,077 36,595 Air pollutants management
Scope 2 112,519 112,058 105,638
To address PM10 issues and comply with the Clean Air Conservation Act, we have continued
Total 153,457 152,135 142,233
GHG emission intensity (tCO2eq/KRW 1 0.060 0.050 0.043 our efforts to reduce air pollutants. we have upgraded outdated facilities, and operated air
million) pollution control facilities in an optimal manner to reduce pollutants.

I Scope 3 GHG emissions I (unit: tCO2eq) The air pollutants we produce are mainly dust, NOx, HCl, and HF. In 2018, due to a decrease

2016 2017 2018 in facility investment and production volumes and facility operation hours, NOx, accounting
Waste disposal 2,677 3,396 1,767 for over 90% of our air pollutants, was drastically reduced. As a result, the intensity dropped
Fuel/energy production 6,087 5,962 5,430 46%. Meanwhile, in order to efficiently reduce NOx, known as substances causing PM10, we
Leased assets 4,885 5,182 7,030 plan to invest in RTO (regenerative thermal oxidizer) and SCR (selective catalytic reduction)
* Calculation is internally made based on domestic and international criteria. systems and introduce low-NOx burners.
92 93
LS C&S 10 SPECIAL THEMES
2018- 2019 Sustainability Report + Annual Report Expertise

I Primary air pollutant emissions I (unit : kg)

I Waste disposal I
(unit: ton)

2016 2017 2018 2016 2017 2018

Dust         1,667 1,856 1,326 Incineration               2,103 1,830 756
NOx       40,567 44,224 20,621 Landfill            443 395 434
HCl         1,456 2,120 1,746 Recycling        10,307 12,055 11,107
HF            298 202 144 Recycling rate (%)              84 84 90
Total 43,988 48,402 23,837
Intensity [kg / Production volume (1,000 tons)] 117.0 117.6 63.6 Resource recycling performance management system
City/Province performance
Resource recycling performance management refers to activities for increasing recycling and management
I Waste disposal process I Waste water management
decreasing disposal across the processes from the generation of wastes to their final disposal. In · Household wastes within the
The cooling water for the cable manufacturing process is re-used for a specific period, treat- other words, it is a system to minimize incinerated or landfill wastes and maximize recycling rates. jurisdiction
ed, and then discharged. As we apply in-house limits on water contaminants that are stricter · Wastes generated from
I Work process of the resource recycling performance management system I businesses operated by local
Raw/subsidiary than the legal limits, all of our worksites are operating waste water treatment systems. Due
governments
materials to a decrease in production volume and water usage, water contamination material dropped Target year-2years Target year-1years Target year Target year+1years

28% and an intensity was reduced 18%. Although none of our worksites are located in or near End of Jun. Mar. End of Jul. End of Sep. End of Dec. Jun. to Dec. Mar. End of May Setting and managing
targets considering
water source protection areas, restricted zones, special management zones, or biodiversity Ministry of Discussion on setting targets
(Ministry of Environment and a group
Follow-ups national policies and
Production by LS C&S protection areas, We have worked continuously to reduce water contamination by effectively Environment of business operators)
(preference) conditions of the
jurisdiction
· Setting targets to reduce operating wastewater treatment plants. Announ- Data
Target Plan
Evaluation of
K-eco validation/ performance
wastes cement gathering setting review
results Achieving
· Making waste reduction I Discharge of primary water contamination materials and intensity I Submission of Submission Submission of national goals of
(unit : kg) Business Implemen-
programs by team operators
performance of action
tation
performance resource circulation
data plans results
2016 2017 2018
· Final disposal rate
BOD          62 109 25 · Recycling rate
Wastes generated
COD 1,003 1,128 940 Continuous analyses of air and water pollutants
· Separating and recycling SS 191 203 112 We continuously measure and analyze both raw materials and emissions to identify air/water Target setting and
wastes / Transferring wastes implementation
to storages T-N 313 396 247 pollutants generated during business operations. Analyses are made regarding substances de- management
Total 1,569 1,836 1,324 fined as harmful materials under the pertinent laws. Root causes are recognized and improve-
Intensity [Discharged volume (kg) / 4.4 4.4 3.5 Business operators subject to
ment actions are performed. In 2018, an overall inspection was conducted for newly-added air performance management
Storage of wastes Production volume (1,000 tons)]
pollutants and periodic analyses of water pollutants were made to minimize any risk. · Business operators generating
· Storing wastes by type/ a large volume of wastes
property Waste management
Activities for dioxin reduction, including checking dust collectors, reduction catalyst replacement, (18 business types)
· Abiding by the defined To properly manage wastes and protect the environment in local communities, we keep in place
and facilities upgrades, were conducted to operate facilities and equipment in an optimal condi- · Based on the average volume
storage period
a waste disposal process from product development to final disposal. To recycle wastes into of three-year wastes
tion. In addition, an environmental facility maintenance system consisting of internal experts is - 100 tons of designated wastes,
resources, we signed a resource recycling performance management agreement* with the Min-
in place to provide regular repairs and maintenance and prevent environment-related risks and 1,000 tons of general wastes
Transport of wastes istry of Environment and has strived to increase our waste recycling rate. Due to the characteris-
accidents.
· Signing a contract tics of energy/communication cables, wastes generated during the manufacturing process are
with an authorized
wastes made of plastic such as HDPE and PVC. In 2018, wastes totaled 12,319 tons. Incinerated Response to laws on fugitive dust emission facilities
transport company
· Checking the wastes fell 59% but landfill wastes rose 10%. Recycled wastes decreased by 948 tons year-on-
Fugitive dust (HAPs) emission facilities management We manage fugitive dust emission
transport status year. However, the recycling rate increased from 84% in the previous year to 90% as some previ-
facilities through which hazardous air pollutants (HAPs) are directly released to the air in accor-
ously incinerated wastes became recyclable.
dance with pertinent laws. Since an overall inspection was performed in 2016 upon the enforce-
Final disposal
I Wastes generated and intensity I ment of a new law, we have conducted annual examinations and submitted the results to the
(unit: ton)
· Conducting preliminary
Ministry of Environment. In addition, with a plan to invest in emissions facilities for the magnet
physical inspections and 2016 2017 2018
checking permission details
Designated wastes 1)          1,981 2,234 2,021
wire processes in place, facilities upgrades will contribute to reducing environment risks.
· Checking whether wastes
are properly treated and General wastes 2)        10,331 12,147 10,298 Violation of laws and regulations To comply with laws, our management standards are set
disposed Total        12,312 14,381 12,319
at levels 20% to 30% stricter than the legal limits. We disclose compliance with environment
· Conducting physical Intensity [Wastes generated /           32.1 34.4 32.1
inspections and evaluation Production volume (1,000 tons)] and safety laws and regulations while monitoring their status. Revised laws and regulations are
on a regular basis
1) Designated wastes: waste oil, waste organic solvent, paint waste, and waste acid
applied to our management standards and pertinent risks are reviewed. In addition, to prevent
2) General wastes: cable scrap, waste synthetic resins, rubber wastes, and residential wastes such risks we identify potential violations that could occur during our business operations.
94 95
LS C&S APPENDIX
2018- 2019 Sustainability Report + Annual Report

Consolidated Statements of Financial Position ‘December 31, 2018, 2017 and 2016’
(Unit: USD million)

2016 2017 2018

Total current assets 1,631 1,870 2,211
Cash and cash equivalents 164 201 179
Financial deposits 39 27 48
Trade receivables 788 829 1,129
Other receivables 42 62 60
Available-for-sale financial assets 1 - -
Financial assets at fair value through profit or loss 17 19 4
Derivative financial assets 34 89 17
Firm commitment assets 33 23 52
Inventories 349 458 549
Other assets 165 161 173
Non-current assets held for sale 17 44 41
Total non-current assets 785 758 1,077
Property, plant and equipment, net 640 608 899
Assets Intangible assets, net 37 38 50
Investment properties, net 10 12 20
Financial deposits 1 1 1

APPENDIX
Trade receivables 24 29 34
Other receivables 25 26 32
Investments in joint ventures - - 0.5
Available-for-sale financial assets 5 2 -
Financial assets at fair value through other - - 2
comprehensive income
Financial assets at fair value through profit or loss - - 1
Derivative financial assets 4 8 4
Firm commitment assets 0.4 0.1 3
Deferred tax assets 21 15 11
Other assets 18 20 20
Total assets 2,433 2,671 3,329
Total current liabilities 1,270 1,372 1,557
Trade payables 544 504 586
Borrowings 390 493 623
Derivative financial liabilities 28 20 45
Firm commitment liabilities 43 99 19
Consolidated Statements of Financial Position 95 Other payables 127 113 126
Consolidated Statements of Comprehensive Income 96 Current income tax liabilities 12 20 9
Provisions 12 2 12
Consolidated Cash Flow Statements 97
Liabilities Other liabilities 113 122 138
Separate Statements of Financial Position 98 Total non-current liabilities 515 559 779
Separate Statements of Comprehensive Income 99 Borrowings 474 514 705

Separate Cash Flow Statements 100 Derivative financial liabilities 0.4 0.4 4
Firm commitment liabilities 4 8 0.2
Independent Assurance Statement 101 Other payables 0.03 0.1 0.2
GRI Standards 103 Net defined benefit liabilities 10 9 11

Additional Information 105 Deferred income tax liabilities 1 3 45

Provisions 24 25 13
Total liabilities 1,785 1,931 2,337
Equity attributable to owners of the Parent Company 578 628 703
Share capital 84 84 84
Share premium 485 485 485
Equity Accumulated other comprehensive income 0.1 (23) (21)
Other components of equity 263 301 312
Accumulated deficit (254) (220) (157)
Non-controlling interests 70 112 289
Total equity 649 740 992
Total liabilities and equity 2,433 2,671 3,329
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LS C&S APPENDIX
2018- 2019 Sustainability Report + Annual Report

Consolidated Statements of Comprehensive Income Consolidated Statements of Cash Flows

(Unit: USD million) (Unit: USD million)

2016 2017 2018 2016 2017 2018

Revenue 2,727 3,174 3,756 Net cash outflows from operating activities 145 (79) (206)
Cost of sales 2,462 2,868 3,415 Cash generated from operations 188 (29) (140)
Gross profit 265 305 340 Interest received 4 3 3
Selling and administrative expenses 186 206 232 Dividends received 0.05 0.1 0.03
Credit loss (reversal) 5 (0.6) 10 Interest paid (29) (36) (45)
Operating profit 75 100 99 Income taxes paid (17) (17) (25)
Other income 234 313 300 Net cash outflows from investing activities (40) (93) (49)
Other expenses 238 296 234 Decrease (increase) in financial deposits (2) 11 (3)
Continuing operations Interest income 5 4 4 Decrease (increase) in other receivables 7 (3) 8
Other finance income 0.3 2 0.3 Proceeds from disposal of available-for-sale financial assets 2 4 -
Finance costs 33 37 45 Proceeds from disposal of financial assets at fair value through profit or loss 53 81 44
Share of profit of equity method investments, net - - 77 Proceeds from disposal of property, plant and equipment 4 20 1
Other non-operating expenses 9 4 93 Proceeds from disposal of intangible assets - 2 -
Profit before income tax 34 82 108 Proceeds from disposal of other investment assets - 0.01 -
Income tax expense 6 32 24 Payments for acquisition of property, plant and equipment (30) (63) (107)
Profit from continuing operations 28 50 84 Payments for acquisition of intangible assets (2) (2) (2)
Discontinued operations Loss from discontinued operations, net of tax 16 1.5 3 Payments for acquisition of available-for-sale financial assets - (0.1) -
Profit for the year 12 49 81 Payments for acquisition of financial assets at fair value through profit or loss (61) (82) (29)
Profit from continuing operations 22 46 80 Loss of control over subsidiaries - 4 0.02
Loss from discontinued operations 16 1.5 3 Payments for acquisition of investments in subsidiaries, associates and joint ventures - - (2)
Profit is attributable to Owners of the Parent 6 44 77 Payments for acquisition of business - (30) -
Profit is attributable to
Company Decrease (increase) in derivative financial instruments (11) (34) 40
Profit from continuing operations 6 5 4 Net cash inflows from financing activities (172) 215 232
Profit from discontinued operations - - - Proceeds from borrowings 45 161 206
Profit is attributable to Non-controlling interests 6 5 4 Repayments of borrowings (400) (49) -
Items that will not be reclassified to profit or loss 0.3 (1.2) (4) Proceeds from issuance of debentures 143 159 224
Remeasurements of post-employment benefit 0.3 (1.2) (4) Repayments of debentures - (98) (210)
obligation
Cash inflows from consolidated equity transactions 47 40 33
Items that may be subsequently reclassified to 1.3 (18) 2
profit or loss Cash outflows from consolidated equity transactions - - (10)
Gain (loss) on valuation of available-for-sale (0.04) (0.8) - Dividends paid (10) (11) (11)
Other comprehensive income
financial assets, net Issuance of shares 3 15 2
Gain (loss) on valuation of financial assets at fair - - 0.02 Others (0.5) (0.5) (0.9)
value through other comprehensive income, net Net increase (decrease) in cash and cash equivalents (67) 44 (23)
Cash flow hedges - 0.3 0.4 Cash and cash equivalents at beginning of the year 229 164 201
Exchange differences 1.4 (17) 2 Effects of exchange rate changes on cash and cash equivalents 1.5 (6) 0.6
Other comprehensive income (loss) for the year, net of tax 2 (19) (2) Cash and cash equivalents at end of the year 164 201 179
Total comprehensive income for the year 13 30 79
Total comprehensive income Owners of the Parent Company 9 20 75
for the year attributable to Non-controlling interests 5 10 3
Earnings per share from continuing operations $1.2 $2.4 $4.3
Earnings (losses) per share Losses per share from discontinued operations $0.9 $0.1 $0.2
Basic earnings per share $0.3 $2.4 $4.1
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Separate Statements of Financial Position ‘December 31, 2018, 2017 and 2016’ Separate Statements of Comprehensive Income
(Unit: USD million) (Unit: USD million)

2016 2017 2018 2016 2017 2018

Total Current assets 1,168 1,412 1,470 Revenue 2,257 2,709 2,980
Cash and cash equivalents 92 109 106 Cost of sales 2,058 2,467 2,730
Financial deposits 13 16 8 Gross profit 199 242 250
Trade receivables 628 717 826 Selling and administrative expenses 138 153 154
Other receivables 17 55 62 Credit loss (reversal) 4 (0.3) 2
Derivative financial assets 27 79 13 Operating profit 57 90 94
Firm commitment assets 32 23 43 Other income 221 276 187
Inventories 227 296 276 Other expenses 221 271 173
Continuing operations
Other assets 132 116 135 Interest income 3 2 2
Non-current assets held for sale 2 2 - Other finance income 4 2 0.6
Total Non-current assets 796 822 915 Finance costs 24 26 30
Property, plant and equipment, net 460 443 435 Share of profit of equity method investments, net - 9 35
Intangible assets, net 29 29 36 Other non-operating income (expenses) 39 32 (3)
Assets Investment properties, net 9 10 11 Profit before income tax 80 112 114
Financial deposits 0.02 0.02 0.02 Income tax expense 3 21 16
Trade receivables 24 29 34 Profit from continuing operations 77 91 97
Other receivables 24 24 24 Discontinued operations Loss from discontinued operations, net of tax 15 3 8
Available-for-sale financial assets 4 1 - Profit for the year 62 88 90
Financial assets at fair value through profit or loss - - 0.2 Items that will not be reclassified to profit or loss 0.2 (1.1) (4)
Financial assets at fair value through other - - 0.5 Remeasurements of post-employment benefit 0.2 (0.7) (4)
comprehensive income obligation
Derivative financial assets 2 8 4 Remeasurements of post-employment benefit - (0.5) (0.2)
Firm commitment assets 0.4 0.1 1 obligation of subsidiaries
Investments in subsidiaries 231 267 358 Items that may be subsequently reclassified to (0.05) (14) 1.3
profit or loss
Investments in joint ventures - - 0.5 Other comprehensive income
Gain (loss) on valuation of available-for-sale (0.05) (0.8) -
Deferred tax assets 12 11 10
financial assets, net
Other assets 0.5 0.4 0.4
Gain (loss) on valuation of financial assets at fair - - (0.001)
Total assets 1,966 2,236 2,385 value through other comprehensive income, net
Total Current liabilities 869 1,058 1,046 Cash flow hedges - 0.3 (0.2)
Trade payables 454 462 407 Share of other comprehensive income (loss) of - (14) 1.5
Borrowings 137 282 381 equity method investments, net

Derivative financial liabilities 27 15 34 Other comprehensive income (loss) for the year, net of tax 0.2 (15) (3)

Firm commitment liabilities 37 90 17 Total comprehensive income for the year 62 73 87

Other payables 106 86 94 Earnings per share from continuing operations $4.1 $4.9 $5.2
Current income tax liabilities 11 18 8 Basic earnings per share Losses per share from discontinued operations $0.8 $0.2 $0.4
Provisions - - 11 Basic earnings per share $3.3 $4.7 $4.8
Liabilities
Other liabilities 96 104 94
Non-current liabilities 503 519 605
Borrowings 473 485 596
Derivative financial liabilities 0.4 0.1 1.3
Firm commitment liabilities 1.7 7 0.1
Other payables 0.05 0.2 0.1
Net defined benefit liabilities 9 6 6
Provisions 19 20 0.9
Total liabilities 1,372 1,577 1,651
Share capital 84 84 84
Share premium 485 485 485
Reserves 0.4 0.4 0.4
Equity
Accumulated other comprehensive income (1.5) (16) (15)
Other components of equity (0.1) (0.1) (0.1)
Retained earnings 26 105 180
Total equity 594 658 734
Total liabilities and equity 1,966 2,236 2,385
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Separate Statements of Cash Flows Third Party’s Assurance Statement

(Unit: USD million)

2016 2017 2018 To the Readers of 2018-2019 LS C&S Sustainability Report: · Energy: 302-1, 302-2, 302-3, 302-4

Net cash outflows from operating activities 155 (60) (160) · Water: 303-1, 303-2
Cash used in operations 183 (29) (112)
Foreword
Interest received 2 1.4 1.3 Korea Management Registrar Inc. (hereinafter “KMR”) has been · Emissions: 305-1, 305-2, 305-3, 305-5, 305-7
Dividends received 4 4 4
requested by of LS Cable & System (hereinafter “LS C&S”) to verify · Effluents and Waste: 306-1, 306-2, 306-3, 306-5
Interest paid (22) (25) (30)
the contents of its 2018-2019 Sustainability Report (hereinafter
Income taxes paid (12) (11) (23)
· Environmental Compliance: 307-1
Net cash outflows from investing activities (10) (74) (41) “the Report”). LS C&S is responsible for the collection and presen-
Decrease (increase) in financial deposits 11 (3) 8 tation of information included in the Report. KMR’s responsibility · Employment: 401-2, 401-3
Decrease (increase) in other receivables 11 (15) (13) is to carry out assurance engagement on specific data and infor-
Proceeds from disposal of available-for-sale financial assets - 4 - · Labor/Management Relations: 402-1
mation in the assurance scope stipulated below.
Proceeds from disposal of investments in subsidiaries 47 45 36
· Occupational Health and Safety: 403-1, 403-2, 403-4
Proceeds from disposal of property, plant and equipment 0.6 20 24
Proceeds from disposal of intangible assets - 2 - Scope and standard · Training and Education: 404-1, 404-2, 404-3
Payments for acquisition of available-for-sale financial assets - (0.05) -
Payments for acquisition of investments in subsidiaries (38) (56) (76) LS C&S describes its efforts and achievements of the corporate so- · Diversity and Equal Opportunity: 405-1, 405-2
Payments for acquisition of property, plant and equipment (24) (44) (56) cial responsibility activities in the Report. KMR performed a type2,
· Child Labor: 408-1
Payments for acquisition of intangible assets (2) (1) (0.4) moderate level of assurance using AA1000AS (2008) and SRV1000
Decrease (increase) in derivative financial instruments (16) 0.01 2
from KMR Global Sustainability Committee as assurance stan- · Forced or Compulsory Labor: 409-1
Others - 0.01 2
dards. KMR’s assurance team(hereinafter “the team”) evaluated
Net cash inflows from financing activities (211) 153 197 · Security Practices: 410-1
Proceeds from borrowings 45 129 193 the adherence to Principles of Inclusivity, Materiality and Respon-
Proceeds from issuance of debentures 143 159 224 siveness, and the reliability of the selected GRI Standard indices · Rights of Indigenous Peoples: 411-1
Repayments of borrowings (389) (27) - as below, where professional judgment of the team was exercised · Human Rights Assessment: 412-2, 412-3
Repayments of debentures - (98) (210)
as materiality criteria.
Dividends paid (8) (8) (8) · Local Communities: 413-1
Others (0.5) (0.4) (1.1) The team checked whether the Report has been prepared in ac-
Net cash outflows from others - (1.2) - · Supplier Social Assessment: 414-2
cordance with the ‘Core Option’ of GRI Standards which covers the
Decrease due to split-off - (1.2) -
followings. · Socioeconomic Compliance: 419-1
Net increase (decrease) in cash and cash equivalents (65) 18 (4)
Cash and cash equivalents at beginning of the year 157 92 109 This Report excludes a data sand information of joint corporate,
| GRI Reporting Principles
Effects of exchange rate changes on cash and cash equivalents (0.1) (0.05) (0.1)
contractor etc. which is outside of the organization, i.e. LS C&S,
Cash and cash equivalents at end of the year 92 109 106 | Universal Standards
among report boundaries.
| Topic Specific Standards

· Management approach of Topic Specific Standards Our approach

· Economic Performance: 201-1, 201-3, 201-4 In order to verify the contents of the Report within an agreed scope
of assurance in accordance with the assurance standard, the team
· Market Presence: 202-1
has carried out an assurance engagement as follows:
· Indirect Economic Impacts: 203-1, 203-2
| Reviewed overall report
· Procurement Practices: 204-1
| Reviewed materiality test process and methodology
· Anti-corruption: 205-1, 205-2, 205-3
| Reviewed sustainability management strategies and targets
· Anti-competitive Behavior: 206-1
| Reviewed stakeholder engagement activities
· Materials: 301-1, 301-2, 301-3
| Interviewed people in charge of preparing the Report
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GRI Standards

Our conclusion communication with stakeholders. Topic Disclosure Page Assurance

GRI 102: General Disclosures
Based on the results we have obtained from material reviews and
102-1 Name of the organization 6 O
interviews, we had several discussions with LS C&S on the revi-
102-2 Activities, brands, products, and services 6, 8-9 O
· The assurance team could not find any evidence that LS C&S’s
sion of the Report. We reviewed the Report’s final version in order 102-3 Location of headquarters 6 O
counter measures to critical stakeholder issues were inappropri-
to confirm that our recommendations for improvement and our ately recorded in the Report. 102-4 Location of operations 6 O
revisions have been reflected. When reviewing the results of the 102-5 Ownership and legal form 18 O
We could not find any evidence the Report was not prepared in ac- 102-6 Markets served 12-13 O
assurance, the assurance team could not find any inappropriate Organizational Profile
102-7 Scale of the organization 6-7 O
contents in the Report to the compliance with the principles stip- cordance with the ‘Core Option’ of GRI standard.
102-8 Information on employees and other workers 78 O
ulated below. Nothing has come to our attention that causes us 102-9 Supply chain 56-61 O
to believe that the data included in the verification scope are not Recommendation for improvement 102-10 Significant changes to the organization and its supply chain 1 O

presented appropriately. 102-11 Precautionary Principle or approach 19-21 O

We hope the Report is actively used as a communication tool for 102-13 Membership of associations 7 O
| Inclusivity: Inclusivity is the participation of stakeholders in devel- stakeholders and recommendation for improvements. 102-14 Statement from senior decision-maker 2-5 O
Strategy
102-15 Key impacts, risks, and opportunities 22-23 O
oping and achieving an accountable and strategic response to sus-
| LS C&S publishes an annual sustainability report to share both 102-16 Values, principles, standards, and norms of behavior 70 O
tainability Ethics and integrity
financial and non-financial performances with transparency. The 102-17 Mechanisms for advice and concerns about ethics 69-71 O
· LS C&S is developing and maintaining stakeholder communica- organization is advised to improve intuitiveness (understandability
102-18 Governance structure 18 O

tion channels in various forms and levels in order to make a com- 102-22 Composition of the highest governance body and its committees 18 O
and credibility) of the sustainability achievements by using quan-
102-23 Chair of the highest governance body 18 O
mitment to be responsible for the stakeholders. The assurance titative data and hire outside directors for greater transparency, 102-24 Nominating and selecting the highest governance body 18 O
team could not find any critical stakeholder LS C&S left out during thereby establishing the culture of sustainability in the organization. Governance 102-30 Effectiveness of risk management processes 19 O
this procedure. 102-32 Highest governance body’s role in sustainability reporting 24 O
102-35 Remuneration policies 18 O
| Materiality: Materiality is determining the relevance and signifi- Our independence 102-36 Process for determining remuneration 18 O
cance of an issue to an organization and its stakeholders. A mate- 102-37 Stakeholders’ involvement in remuneration 18 O
With the exception of providing third party assurance services, KMR
rial issue is an issue that will influence the decisions, actions, and 102-40 List of stakeholder groups 25-27 O
is not involved in any other LS C&S’s business operations that are
102-41 Collective bargaining agreements 105 O
performance of an organization or its stakeholders.
aimed at making profit in order to avoid any conflicts of interest and Stakeholder engagement 102-42 Identifying and selecting stakeholders 25-29, 105 O
· LS C&S is determining the materiality of issues found out through to maintain independence. 102-43 Approach to stakeholder engagement 25-29 O
stakeholder communication channels through its own materiality 102-44 Key topics and concerns raised 28-31 O

evaluation process, and the assurance team could not find any 102-45 Entities included in the consolidated financial statements 12-13 O
102-46 Defining report content and topic Boundaries 28-31 O
critical issues left out in this process.
102-47 List of material topics 28-31 O
102-48 Restatements of information 1 O
| Responsiveness: Responsiveness is an organization’s response to
102-49 Changes in reporting 1 O
stakeholder issues that affect its sustainability performance and is Reporting practice 102-50 Reporting period 1 O
realized through decisions, actions, and performance, as well as 102-51 Date of most recent report 1 O
102-52 Reporting cycle 1 O
102-53 Contact point for questions regarding the report 1 O
102-54 Claims of reporting in accordance with the GRI Standards 101-102 O
102-56 External assurance 101-102 O

May, 21th, 2019

CEO
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GRI Standards

Topic Disclosure Page Assurance Topic Disclosure Page Assurance

GRI 103: Management Approach GRI 408: Child Labor 408-1 Operations and suppliers at significant risk for incidents of child labor 63 O
103-1 Explanation of the material topic and its Boundary DMA O GRI 409: Forced or Compulsory 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory 63 O
Management Approach Labor labor
103-2 The management approach and its components 28-31 O
(DMA)
103-3 Evaluation of the management approach 28-31 O GRI 410: Security Practices 410-1 Security personnel trained in human rights policies or procedures 63 O
GRI 200: Economic topics GRI 411: Rights of Indigenous 411-1 Incidents of violations involving rights of indigenous peoples 105 O
Peoples
201-1 Direct economic value generated and distributed 6-7, 25 O
GRI 201: Economic 412-2 Employee training on human rights policies or procedures 63 O
201-3 Defined benefit plan obligations and other retirement plans 79 O GRI 412: Human Rights
Performance
Assessment 412-3 Significant investment agreements and contracts that include human rights 105 O
201-4 Financial assistance received from government 105 O
clauses or that underwent human rights screening
GRI 202: Market Presence 202-1 Ratios of standard entry level wage by gender compared to local minimum wage 105 O
GRI 413: Local Communities 413-1 Operations with local community engagement, impact assessments, and devel- 55 O
GRI 203: Indirect Economic 203-1 Infrastructure investments and services supported 52-55 O opment programs
Impacts 203-2 Significant indirect economic impacts 25-27, 55 O 414-2 Negative social impacts in the supply chain and actions taken 59 O
GRI 414: Supplier Social
GRI 204: Procurement Practices 204-1 Proportion of spending on local suppliers 25-27 O Assessment
205-1 Operations assessed for risks related to corruption 105 O GRI 419: Socioeconomic 419-1 Non-compliance with laws and regulations in the social and economic area 105 O
Compliance
GRI 205: Anti-corruption 205-2 Communication and training about anti-corruption policies and procedures 67, 71 O
205-3 Confirmed incidents of corruption and actions taken 71 O
GRI 206: Anti-competitive Behavior 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices 105 O
GRI 300: Environmental topics
301-1 Materials used by weight or volume 87 O
GRI 301: Materials 301-2 Recycled input materials used 87, 92-93 O

Additional Information
301-3 Reclaimed products and their packaging materials 87, 92-93 O
302-1 Energy consumption within the organization 90-91 O
302-2 Energy consumption outside of the organization 90-91 O
GRI 302: Energy
302-3 Energy intensity 87, 90, 92 O
Indicators Additional information
302-4 Reduction of energy consumption 90 O
102-41 All employees are subject to the results of collective bargaining agreements.
303-1 Water withdrawal by source 87 O
GRI 303: Water
303-2 Water sources significantly affected by withdrawal of water 87, 105 O 102-42 Our stakeholders are: (1) those who are affected by business activities; (2) those who affect business performance; and (3) those who are
305-1 Direct (Scope 1) GHG emissions 90 O legally, financially, and operationally responsible. We listen to their voices through a variety of communication channels and reflect them
in our business activities.
305-2 Energy indirect (Scope 2) GHG emissions 90 O
GRI 305: Emissions 305-3 Other indirect (Scope 3) GHG emissions 90 O 201-4 Government subsidies (unit: USD thousand)
305-5 Reduction of GHG emissions 91 O Category 2016 2017 2018
305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions 91-92 O
Tangible assets Land 13,928 13,928 14,402
306-1 Water discharge by quality and destination 92 O
Buildings 1,596 1,475 1,353
306-2 Waste by type and disposal method 92-93 O
GRI 306: Effluents and Waste Machines and equipment 233 201 172
306-3 Significant spills 105 O
Intangible assets Development cost 207 72 191
306-5 Water bodies affected by water discharges and/or runoff 87 O
GRI 307: Environmental Compliance 307-1 Non-compliance with environmental laws and regulations 105 O
GRI 400: Social topics
202-1 The ratio of entry level wage to legal minimum wage is 150%.
401-2 Benefits provided to full-time employees that are not provided to temporary or 79 O
GRI 401: Employment part-time employees 205-1 None of our worksites were found to have risks of any corruption cases according to the analysis results
401-3 Parental leave 65 O
206-1/419-1 We are striving to promote transparent and fair competition. However, some violation cases that occurred before implementing our compliance
GRI 402: Labor/Management 402-1 Minimum notice periods regarding operational changes 105 O
Relations programs are still under investigation and subject to lawsuits. For further details, please refer to our 2018 audit report. Going forward, we will
further strengthen our efforts to promote compliance activities of our employees and prevent any violations that could lead to market disruptions.
403-1 Workers representation in formal joint management–worker health and safety 75 O
committees 303-2 Our water resources are from the Nakdong River for the Gumi/Indong plants, the Paldang Dam for the Anyang plant, and the Dalbang
GRI 403: Occupational Health
403-2 Types of injury and rates of injury, occupational diseases, lost days, and absentee- 74 O Dam for the Donghae plant. They are purified by the K-Water and provided through water supply offices in each area.
and Safety
ism, and number of work-related fatalities
403-4 Health and safety topics covered in formal agreements with trade unions 75 O 306-3/307-1 There were no cases of harmful substance leakage and environmental violations in 2018.
404-1 Average hours of training per year per employee 83 O 402-1 We disclose key information and major changes regarding management and employee welfare in real time through our website.
GRI 404: Training and 404-2 Programs for upgrading employee skills and transition assistance programs 80-83 O
Education 405-2 Employees with the same positions and jobs are equally paid. There is no wage discrimination for reason of gender.
404-3 Percentage of employees receiving regular performance and career development 83 O
reviews 411-1 There were no violations involving the infringement of the rights of local residents during the reporting period.
GRI 405: Diversity and Equal 405-1 Diversity of governance bodies and employees 78 O
Opportunity 412-3 When deciding new investment, including the establishment of a worksite, acquisition, and joint venture, we review and consider local
405-2 Ratio of basic salary and remuneration of women to men 105 O
labor practices. As of now, there have been no human rights issues. However, if newly invested worksites do not meet the international
human rights standards, actions will be immediately taken to address these issues.
LS C&S
2018- 2019 Sustainability Report + Annual Report

2018-2019 LS Cable & System

Sustainability Report + Annual Report
Publication date May 31, 2019 (Korean version April 30, 2019)
Publisher Myung Roe-Hyun
Company LS Cable & System
Design reddot branding
Production management The Sustainable Management Secretariat
(Joo Wan-Seob, Kang Byung-Yoon, Choi Woo-Jin, Park Eun-Sung and Lee Ye-Lim)

Contributors

Working Committees
Technology Management Team Yang Hoon-Chul and Heo Gwang-Jin
Quality Management and Planning Team Lee Doo-Han and Kim Ho-Eun
Purchasing Planning Team Park Jun-Yong and Oh Seok-Jun
Public Relations Team Keum Dong-Hee and Han Jin-Hee
Corporate Culture & HRD Team Ahn Seung-Keun and Choi Jong-Wook
Labor Relations Planning Team Yang Kyeun-Woong and Koh Dong-Jin
Internal Audit and Consulting Team Choi Chang-Won and Hyun Jin-Young
Compliance Management Team You Chang-Woo and Kang Jong-Gu
HSE Team/HSE Planning Team Park Seok-Ho, Jang Jeong-Wook, Lee Jin-Tak and Kang Jeon-Lim

Others
Corporate Strategy Division Kwon Oh-Heung, You Yong-Phal, Jang Gue-Seong,
Hwang Yeo-Jeong, Dong Ju-Young and Kim Hee-Jeung
Human Resources Team Kim Tae-Hyun and Kang Eun-A
Accounting Team Choi Ji-Eun
Legal Affairs Team Kim Do-Han
Public Relations Team Kim Yoon-Suk and Hwang Hye-Rin
Business Support Team Kim Han-Soo and Kim Hyun-Kyung
HSE Planning Team Jeong Seong-Kyu and Lee Bong-Yi
Facility Management Team (Gumi/Indong) Koo Bon-Hag
Submarine Design and Production Team Kim Kyung-Soo
Underground Cable System Development Team Kim Jong-Soo
Underground Cable System Engineering Team Lee Chung-Hwan
Optical Fiber & Cable Development and Production Team Kim Jung-Mok
Automotive Wire/Tube Components Development/Production Team Son Ba-Reun
Communication/Industrial Cable & System Research Team Kim Jin-Woo
Distribution Research Team Seo Ju-Mi
LS Buildwin Cho Hyun-Ho and Kim Choong Gi
G&P Park Shin-Hwan and Lee Jung-Sook
LS-VINA Park Joo-Hwan
LSCV Lee Hyung-Woon
LSCI Lim Dong-Wook
LSCW Lee Ki-Hoon
LSHQ Lee Sang-Gab