ESG

2025 Daekwang Sintered Metal Sustainability Report

Reporting period : 2025-01-01 ~ 2025-12-31

2025 Daekwang Sintered Metal Co., Ltd.

Sustainability Report

2025-01-01 ~ 2025-12-31

Daekwang Sintered Metal Co., Ltd.

Head office · Hyunpung Plant: 49, Techno sunhwan-ro 3-gil, Yuga-eup, Dalseong-gun, Daegu

Goryeong Plant: 248-9, Beolji-ro, Dasan-myeon, Goryeong-gun, Gyeongsangbuk-do

Published: 23 November 2026 | www.dksinter.com | 053-719-9900

GRI Content Index

Item Content
Statement of use Daekwang Sintered Metal Co., Ltd. has prepared this report with reference to the GRI Standards. (Reporting period: 2025-01-01 ~ 2025-12-31)
(Reporting period : 2025-01-01 ~ 2025-12-31)
GRI 1 used GRI 1 : Foundation 2021
Applicable GRI Sector Standard No applicable sector standard

Universal Standards

GRI 2. General Disclosures

Disclosure Content
Data table Document External link Business case
GRI 2. General Disclosures — 1. The organization and its reporting practices
DisclosureContent
2-1

Organizational details

Daekwang Sintered Metal Co., Ltd. is a specialist producer of sintered parts for automotive applications, established in May 1997. The company is unlisted and operates the Hyunpung Plant, which also serves as the head office (Dalseong-gun, Daegu), and the Goryeong Plant (Goryeong-gun, Gyeongsangbuk-do).
EXCEL
CategoryDetails
Company nameDaekwang Sintered Metal Co., Ltd.
Representative directorsPark Byeong-gon, Park Jeong-hwan (co-CEOs)
AddressHead office and Hyunpung Plant: 49, Techno sunhwan-ro 3-gil, Yuga-eup, Dalseong-gun, Daegu / Goryeong Plant: 248-9, Beolji-ro, Dasan-myeon, Goryeong-gun, Gyeongsangbuk-do
Date of establishment13 May 1997
Main productsSintered parts (automotive, home appliance, and machinery)
CertificationsIATF 16949 (until 26 Apr 2027), ISO 14001 (until 27 May 2028) — Hyunpung Plant, Korean Foundation for Quality (KFQ)
Employees115 (as of December 2025)
Websitewww.dksinter.com

2-1 Organizational details

[Attachment] Annex 1. IATF 16949 and ISO 14001 certificates
Annex 1-1. IATF 16949 certificate
Annex 1-2. ISO 14001 certificate
2-2

Entities included in the organization's sustainability reporting

The reporting boundary of this report is Daekwang Sintered Metal Co., Ltd., covering the head office and the Hyunpung Plant (Dalseong-gun, Daegu). The Goryeong Plant is excluded from this report because an environmental and safety data-collection system is not yet in place, and will be brought into the boundary in a later report. Where the boundary differs, a separate note is provided. This report sets out the company's main ESG direction and performance and will be published every year as a channel for engagement with stakeholders.

※ Headcount, occupational injuries, training, financial information, and governance are reported for the company as a whole. Environmental data — energy, greenhouse gases, water, waste, and air emissions — are reported for the Hyunpung Plant.
2-3

Reporting period, frequency and contact point

1. This is the company's first annual sustainability report and covers 1 January 2025 to 31 December 2025.

2. Financial information is prepared under Korean GAAP for non-public entities. The reporting currency is the Korean won (KRW).

3. The publication date of this report is 23 November 2026.

4. Contact: Administration Department, Daekwang Sintered Metal Co., Ltd. TEL 053-719-9900 / E-mail mgm@dksinter.com
2-4

Restatements of information

This is the company's first sustainability report, so there are no restatements of information from a previous report. If figures change from the prior year when data are compiled in the future, the change will be explained in a note to the relevant disclosure.
2-5

External assurance

This report has not been externally assured by a third party. To support reliability, the Administration Department collected data from each department and checked them against source records (electricity bills, waste-transfer manifests, air-emission measurement records, and personnel and payroll records). The Representative Directors reviewed and approved the final content. Calculation methods and sources are noted under the main indicators.
GRI 2. General Disclosures — 2. Activities and workers
DisclosureContent
2-6

Activities, value chain and other business relationships

1. Under the management principle that quality is competitiveness, the company earns customer confidence by automating production equipment and building quality-assurance equipment.

2. The company is a Tier-2 automotive supplier and delivers sintered parts to Tier-1 suppliers. Main products include engine, transmission, and oil-pump parts, supplied to 40 customers.

3. The principal feedstock, including iron powder and other metal powders, is sourced from specialized suppliers in Korea and overseas. The company trades with eight suppliers in total.
2-7

Employees

All employees are employed directly by the company (there are no fixed-term, daily, or dispatched workers). Headcount at the end of December 2025 was 115. Twenty-four foreign workers were hired through the Employment Permit System (EPS) of the Ministry of Employment and Labor, and their contract term follows the EPS rules.
EXCEL
CategoryUnit202320242025
Menpersons101109103
Womenpersons141212
Total employeespersons115121115
GRI 2. General Disclosures — 3. Governance
DisclosureContent
2-9

Governance structure and composition

a. As an unlisted small and medium-sized enterprise, the company operates under the joint responsibility of co-CEOs Park Byeong-gon and Park Jeong-hwan. The Representative Directors personally review key decisions related to ESG and financial performance.

b. An annual general meeting of shareholders is held within three months after the end of each fiscal year. The meeting receives reports and resolves on major management matters.

c. Under the articles of incorporation, the company has four inside directors (including two Representative Directors) and one statutory auditor.
EXCEL
CategoryNameRegisteredPosition
Representative DirectorPark Byeong-gonRegisteredCo-CEO
Representative DirectorPark Jeong-hwanRegisteredCo-CEO (Vice President)
Inside directorShin Mun-cheolRegisteredManaging Director
Inside directorMin Byeong-geunRegisteredDirector
Statutory auditorLee Han-yongRegisteredAuditor

2-9 Governance structure and composition

[Attachment] Annex 2. Articles of incorporation (amended 29 Dec 2017)
Annex 2. Articles of incorporation (amended 29 Dec 2017)
2-10

· 2-11 Nomination and selection of the highest governance body and its chair

Directors are appointed by resolution of the general meeting of shareholders, and the Representative Directors are elected by the Board. Representative Director Park Byeong-gon also chairs the Board. Conflicts of interest arising from that dual role are managed through mutual checks among directors and compliance with the code of ethics. As the company grows, it will consider greater diversity on the Board and the appointment of outside directors.
2-12

~ 2-14 Oversight of impact management, delegation of responsibility, and sustainability reporting

The Administration Department is designated as the ESG function. It is responsible for setting and carrying out the ESG strategy, responding to customers' supply-chain ESG due diligence, and publishing the sustainability report. The department reports material ESG issues to the Representative Directors for approval, and the Representative Directors review and approve the report before publication. An ESG council will be considered as ESG management is strengthened.
EXCEL
DateDetails
2025.04IoT monitors installed on air-pollutant stacks
2025.08Code of ethics and human rights policy adopted (22 Aug 2025)
First half of 2026Participated in the ESG supply-chain due-diligence self-assessment of Myunghwa Industrial Co., Ltd.
2026.09Approval to build the website ESG menu (sustainability, ethics, social contribution, and cyber whistleblowing); opened 9 Nov 2026
2026.11Supplier code of conduct adopted and compliance pledges collected from suppliers
2026.112025 sustainability report published
2-15

~ 2-20 Board operation and remuneration

There are currently no outside directors on the Board. The articles of incorporation allow outside directors where needed (Article 29) and committees of the Board (Article 38). A director with a special interest in a resolution may not vote (Article 41). A director who finds a fact that may cause significant harm to the company must report it to the statutory auditor without delay (Article 35). The Representative Director convenes the Board by notice to each director and the auditor at least one week before the meeting (Article 39). The Board does not separately evaluate sustainability performance. Remuneration of directors and the auditor is set by Board resolution under the articles, and retirement pay is paid under the formula in the articles, based on average annual remuneration for the most recent three years (Article 36).
GRI 2. General Disclosures — 4. Strategy, policies and practices
DisclosureContent
2-22

Statement on sustainable development strategy

"CEO Message" — Toward technology, trust, and a sustainable future

Since its establishment in 1997, Daekwang Sintered Metal Co., Ltd. has grown as a specialist producer of sintered parts, mainly for automotive components, on the strength of technical development and quality competitiveness. Under the principle that quality is competitiveness, the company has continued to automate production equipment and build quality-assurance equipment, and has earned the confidence of its customers.

The business environment is changing quickly. As expectations rise around carbon neutrality, tighter supply-chain ESG due diligence, and broader safety and health regulation, the company treats these not only as obligations but as a way to strengthen competitiveness.

Daekwang Sintered Metal, with regard for people and the environment

Based on respect for people, the company works to provide a workplace where employees can work safely and in good health, and to run a production system that limits environmental impact. In 2025 it set and carried out concrete environmental objectives, including lower electricity use, less waste, and zero violations of environmental law, and reduced electricity use by 6.1% from the previous year.


Furthermore, we pledge to build a sustainable partnership with our business partners, customers, and local communities, and to create a future of shared growth based on mutual trust and cooperation.


Park Byeong-gon and Park Jeong-hwan, Representative Directors, Daekwang Sintered Metal Co., Ltd.

2-23

Policy commitments

The company has adopted and operates a code of ethics (August 2025), a human rights policy (August 2025), a workplace harassment prevention and grievance procedure (August 2025), an environmental policy and objectives (ISO 14001), and a quality policy (IATF 16949). These are disclosed on the ESG menu of www.dksinter.com (sustainability, ethics, social contribution, and cyber whistleblowing). Each policy names the responsible department, and is embedded through employee training. In November 2026, after the reporting period, a supplier code of conduct was adopted.

[Attachment] Annex 3. Code of ethics, human rights policy, 2025 environmental policy and objectives, and workplace harassment prevention and grievance procedure

Annex 3-1. Code of ethics (22 Aug 2025)
Annex 3-2. Human rights policy (22 Aug 2025)
Annex 3-3. 2025 environmental policy and objectives
Annex 3-4. Workplace harassment prevention and grievance procedure
2-25

Processes to remediate negative impacts

a. Grievance and internal reporting channels allow employees and other stakeholders to raise negative impacts related to human rights, ethics, and safety.

b. The Administration Department consults on a report and completes the investigation within 20 days of receipt (extendable by 10 days where there is a particular reason), then reports the result to the Representative Directors. Where a fact is confirmed, the response includes discipline of the person responsible, protection of the affected person, and measures to prevent recurrence.

c. Negative impacts at suppliers will be checked, and improvement requested, through the compliance pledge and an annual self-check under the supplier code of conduct adopted in November 2026.
2-26

Mechanisms for seeking advice and raising concerns

Employees may freely raise views or concerns about how the organization is run through the grievance channel, the labor-management council, and the internal reporting channel. Reports may be made in writing, by telephone, by electronic communication, or in person. Confidentiality of consultation and investigation, and protection from disadvantage for the reporter and anyone who cooperates with the investigation, are required (Articles 7, 9, and 14 of the workplace harassment prevention and grievance procedure). External stakeholders may report through the cyber whistleblowing channel on the website, which opened on 9 November 2026.

[Attachment] Annex 3-4. Workplace harassment prevention and grievance procedure (adopted 22 Aug 2025) / Cyber whistleblowing: www.dksinter.com

Annex 3-4. Workplace harassment prevention and grievance procedure
2-27

Compliance with laws and regulations

There were no significant violations of law or fines during the reporting period.
EXCEL
CategoryUnit202320242025
Violations of environmental lawcases000
Administrative sanctionscases000
Violations of human-rights and labor lawcases000
Fines imposedKRW000
2-28

Membership associations

The company is a member of the Daegu Chamber of Commerce and Industry, the Daegu Employers Federation, and the INNOBIZ Association. It also works with its customers' supplier programs.
GRI 2. General Disclosures — 5. Stakeholder engagement
DisclosureContent
2-29

Approach to stakeholder engagement

1. Stakeholder groups and how they are identified: employees, customers, suppliers, central and local government, and the local community.

2. Purpose of engagement: to gather the information and views needed for sustainable development and to reflect them in management decisions.

3. How relationships are maintained: the company takes an active part in customers' ESG supply-chain due diligence. In the first half of 2026, after the reporting period, it completed the ESG supply-chain self-assessment of Myunghwa Industrial Co., Ltd.
EXCEL
StakeholderMeans of engagementMain topics
EmployeesGrievance channel, labor-management council (quarterly), lecture and talk led by the Representative Directors (quarterly), trainingViews on human rights, safety, and labor
CustomersESG supply-chain due diligence, regular meetingsQuality and ESG requirements
SuppliersCommercial discussions, integrity agreements, supplier code pledge (from Nov 2026)Human-rights and environmental risk
Government / local governmentLegal compliance, permits and licensesEnvironmental and safety obligations
Local communityLocal employment, environmental managementShared growth and social responsibility

2-29 Approach to stakeholder engagement

[Attachment] Annex 5. 2025 labor-management council minutes (1st to 4th meetings)
Annex 5. 2025 labor-management council minutes
2-30

Collective bargaining agreements

There was no trade union at the end of 2025, so the share of employees covered by a collective bargaining agreement is 0%. The company guarantees the freedom to form and join a union. Under the Act on the Promotion of Workers' Participation and Cooperation, the labor-management council meets quarterly to discuss working conditions, benefits, and other material matters. In 2025 regular meetings were held four times (March, June, September, and December). Main items included the business status (production and quality results, new orders, and equipment-investment plans) and safety activities (thaw-season, summer heat, and winter inspections, and consulting on the safety and health management system). Suggestions from worker members (shop-floor lighting, summer workwear, line noise, and the fit of personal protective equipment) are checked for follow-up at the next meeting. Working conditions of all employees not covered by a collective agreement are applied equally under the Labor Standards Act and the rules of employment.

GRI 3. Material Topics

Disclosure Content
Data table Document External link Business case
GRI 3. Material Topics — 3. Disclosures on Material Topics M
DisclosureContent
3-1

Process to determine material topics

The company reviews economic, environmental, and social issues together, identifies the material issues that affect its medium- and long-term growth and its stakeholders, and reflects them in management decisions. Material topics were determined from the internal and external issues, stakeholder requirements, and risk analysis carried out in the IATF 16949 and ISO 14001 systems, together with customers' ESG supply-chain due-diligence requirements.
3-2

List of material topics

As a sintered-parts manufacturer for the automotive industry, workplace safety, energy use and greenhouse-gas emissions, and control of air pollutants (dust from powder handling and sintering) are material environmental and social impacts. Customers also require respect for the human rights and labor standards of employees, including foreign workers, and ESG management of the supply chain.

1. Workplace safety and health

2. Energy use and greenhouse-gas emissions

3. Waste and air pollutants

4. Human rights and labor standards, including foreign workers

5. Supply-chain ESG, including responsible minerals

6. Ethical management and anti-corruption
3-3

Management of material topics

Indicators used to manage the material topics are set out below.
EXCEL
Material topicManagement indicator
Workplace safety and healthGRI 403 Occupational Health and Safety
Energy and greenhouse gasesGRI 302 Energy, GRI 305 Emissions
Waste and air pollutantsGRI 306 Waste, GRI 305-7 Air emissions
Human rights and laborGRI 401 Employment, GRI 402 Labor/Management Relations, GRI 406 Non-discrimination, GRI 407 Freedom of Association
Supply-chain ESGGRI 308 Supplier Environmental Assessment, GRI 414 Supplier Social Assessment
Ethics and anti-corruptionGRI 205 Anti-corruption, GRI 206 Anti-competitive Behavior

Topic Standards Disclosures

Disclosure Content
Data table Document External link Business case
GRI 201 : Economic Performance M
DisclosureContent
3-3_201

Management of economic performance

Financial statements are prepared under Korean GAAP for non-public entities. As an entity subject to external audit under the Act on External Audit of Stock Companies, the company is audited each year by Hwawoo Certified Public Accountants. The audit opinion for the fiscal years 2023 to 2025 was unqualified in each year. The financial statements are finalized with the approval of the annual general meeting.
201-1

Direct economic value generated and distributed

EXCEL
CategoryItemUnit202320242025
Economic value generatedRevenue + non-operating incomeKRW million42,77444,35740,859
Economic value distributedOperating costs (cost of sales and selling and administrative expenses, excluding personnel costs, depreciation, and taxes and dues)KRW million28,07029,51227,387
Employees (wages, retirement benefits, and welfare)KRW million7,0947,9227,717
Providers of capital (interest and dividends)KRW million1,031957886
Government (income tax expense and taxes and dues)KRW million432433359
Local community (donations)KRW million1000
Economic value retainedGenerated minus distributedKRW million6,1375,5344,510
EXCEL
ItemUnit202320242025
Operating income (loss)KRW million3,1242,2761,689
Net income (loss)KRW million2,9392,5321,614
Total assetsKRW million42,82342,44541,450
Total liabilitiesKRW million19,80817,32015,311
Total equityKRW million23,01625,12526,139

201-1 Direct economic value generated and distributed

※ Figures are rounded to the nearest million won. For 2023, liabilities plus equity (42,824) differ from total assets (42,823) by 1. Economic value retained includes depreciation, amortization of intangible assets, and other non-operating expenses (foreign-exchange losses, miscellaneous losses, and similar items). Dividends are the cash amount paid in the year.

[Attachment] Annex 6. Independent auditor's reports for fiscal years 2025 and 2024 (Hwawoo Certified Public Accountants, unqualified opinion). Figures for 2023 are the comparative prior-year figures in the fiscal 2024 report.
Annex 6-1. Independent auditor's report, fiscal year 2025
Annex 6-2. Independent auditor's report, fiscal year 2024
201-2

Financial implications and other risks and opportunities due to climate change

Physical risks from climate change include damage to the plants and interruption of production from heat waves, heavy rain, and other natural hazards. Transition risks include tighter greenhouse-gas regulation and higher electricity prices. The company uses a large amount of electricity to run its sintering furnaces, so electricity prices have a direct effect (electricity cost in 2025: KRW 2,550 million, up 3.0% from the previous year). Growing demand for electric-vehicle parts and for lightweight, high-efficiency sintered parts can also be a business opportunity. The company will continue reduction work based on energy intensity and its Scope 1 and Scope 2 inventory.
GRI 205 : Anti-corruption M
DisclosureContent
3-3_205

Management of anti-corruption

The code of ethics (adopted in August 2025; 7 chapters and 25 articles) sets principles for fair performance of duties, a ban on improper solicitation, avoidance of conflicts of interest, fair trade and integrity agreements, protection of customer information and intellectual property, and a ban on improper political involvement. It is published on the website. From 2026 a corruption-risk assessment will be carried out once a year by department. An internal reporting channel is in place, with confidentiality for the reporter and a ban on disadvantage.
205-1

Operations assessed for risks related to corruption

No formal corruption-risk assessment was carried out in the reporting period (2025). From 2026 the assessment will cover the whole company, including the head office (Hyunpung Plant) and the Goryeong Plant, once a year by department. No corruption incidents, related legal violations, or warnings from authorities were identified during the reporting period.
EXCEL
CategoryDetailsUnit2025
Operations assessed for corruption riskHead office (Hyunpung Plant) and Goryeong Plant (annual assessment planned from 2026)%0
Identified corruption incidentsTotalcases0
Action takenDiscipline / contract termination / legal actioncases0
205-2

Communication and training about anti-corruption policies and procedures

Anti-corruption and ethics training is provided to all employees at least once a year. Under Article 13 of the code of ethics, integrity agreements are the rule in dealings with suppliers. The supplier code of conduct adopted in November 2026 also prohibits bribes and improper benefits and names a reporting channel. The 2025 anti-corruption training completion rate was 100%.
205-3

Confirmed incidents of corruption and actions taken

There were no confirmed incidents of corruption and no legal sanctions related to ethics during the reporting period.
EXCEL
CategoryUnit202320242025
Corruption incidentscases000
Violations of ethics-related lawcases000
GRI 206 : Anti-competitive Behavior M
DisclosureContent
3-3_206

Management of anti-competitive behavior

The code of ethics prohibits anti-competitive behavior and unfair trade. Employee training is used to build a fair-trade culture.
206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

The company has no violations of laws on anti-competitive behavior or monopoly.
EXCEL
IndicatorUnit202320242025
Violationscases000
FinesKRW million000
Non-monetary sanctionscases000
Disclosure Content
Data table Document External link Business case
GRI 301 : Materials
DisclosureContent
301-1

Materials used by weight or volume

The principal feedstock is metal powder, including iron powder, sourced from specialized suppliers in Korea and overseas such as Höganäs AB (Sweden) and Hyundai Steel. Material safety data sheets (MSDS) are maintained for 51 raw materials.

A responsible-minerals sourcing policy is in place. Suppliers submit the Conflict Minerals Reporting Template (CMRT), and the origin and smelters of conflict minerals (tin, tantalum, tungsten, and gold) are tracked. The CMRT prepared in August 2025 (RMI Revision 6.5, company-wide) shows that, of the 3TG, only tin is used in the company's products and processes. Tantalum, tungsten, and gold are not used. The response rate of tin-related suppliers was 100%. One smelter in the supply chain was identified (PT Timah Tbk Kundur, Indonesia, RMI CID001477). No minerals were identified as originating in conflict-affected or high-risk areas, including the DRC and adjoining countries.
EXCEL
CategoryUnit202320242025
Raw material inputkg4,219,3784,508,3624,249,559

301-1 Materials used by weight or volume

[Attachment] Annex 7. Summary of the responsible minerals reporting template (CMRT), prepared 13 Aug 2025
Annex 7. Responsible minerals report (CMRT)
GRI 302 : Energy M
DisclosureContent
3-3_302

Management of energy

1. Actual and potential impacts: purchased electricity is the main energy used to run production equipment, including the sintering furnaces. LPG fuels the sintering-furnace burners. Continued energy use can affect greenhouse-gas emissions and climate change, and higher electricity prices go directly into the cost of sintered parts.

2. Policy and action: under the ISO 14001 environmental management system, the environmental objective is to reduce energy use by 1% from the previous year. Efficiency is improved through equipment inspection and maintenance, power management of idle equipment, and environmentally considered process design (four cases in 2025).

3. Tracking and evaluation: electricity use is compiled monthly and managed as intensity (kWh/kg of raw material input). Electricity use in 2025 was 6.1% lower than the previous year, so the objective was met (achievement rate 105%).

4. Stakeholder communication: energy use is shared with the relevant departments and disclosed externally through the sustainability report and customers' ESG due diligence.
302-1

Energy consumption within the organization

EXCEL
CategoryUnit202320242025
Electricity useMWh12,76013,61512,787
Electricity useGJ45,93849,01346,032
LPG usekg102,894105,753104,161
LPG useGJ4,7644,8964,823
Total energy useGJ50,70253,90950,855
Electricity costKRW thousand2,153,5122,475,1812,550,156

302-1 Energy consumption within the organization

※ Conversion to GJ: electricity 1 kWh = 0.0036 GJ; LPG (propane) 1 kg = 0.0463 GJ (net calorific value). LPG use is the tanker delivery quantity. Hydrogen is purchased in filled cylinders and is excluded from the energy total. Forklifts are electric, so their charging power is included in electricity use. Company diesel vehicles are excluded because consumption records are not yet kept.

[Attachment] Annex 8. Environmental performance intensity data, 2023-2025 (worksheets and source data for energy, greenhouse gases, water, and waste)
Annex 8. Environmental performance intensity data, 2023-2025
302-3

Energy intensity

EXCEL
CategoryUnit202320242025
Energy intensity (per raw material)kWh/kg3.023.023.01
GRI 303 : Water and Effluents M
DisclosureContent
3-3_303

Management of water and effluents

All water at the plant is municipal tap water. Groundwater and industrial water are not used. Water is used for employee facilities (cafeteria, toilets, and showers) and as cooling water for the sintering furnaces. Furnace cooling water is collected in a cooling tower and circulated by pump, so only evaporation losses are made up and process water use is small. The environmental objective is to keep monthly use at or below 6 tonnes per person.
303-4

Water discharge

The sintering process is a dry powder-metallurgy process and generates no process wastewater. Domestic sewage is discharged to the public sewage-treatment plant. Cooling-tower circulation water is discharged to the sewer when it is replaced.
303-5

Water consumption

EXCEL
CategoryUnit202320242025
Water withdrawal (municipal)t8,98210,2118,702
Groundwater and industrial watert000
Annual use per persont/person80.087.074.7
Average monthly use per persont/person-month6.677.256.23

303-5 Water consumption

※ Hyunpung Plant. Use per person is the annual sum of monthly figures divided by the number of people on site at Hyunpung (employees plus supplier, security, and cafeteria staff, 102 to 122 people a month). The monthly average is the annual figure divided by 12.

[Attachment] See Annex 8, environmental performance intensity data (water).
Annex 8. Environmental performance intensity data, 2023-2025
GRI 305 : Emissions M
DisclosureContent
3-3_305

Management of emissions

Greenhouse-gas emissions are a main environmental indicator. Direct emissions from LPG combustion in the plant (Scope 1) and indirect emissions from purchased electricity (Scope 2) are calculated and tracked by year. For air pollutants, dust from the sintering process is the main item controlled. Fabric-filter dust collectors are operated, and in April 2025 IoT monitors were fitted to the stacks for real-time monitoring.
305-1

Direct (Scope 1) GHG emissions

Direct greenhouse-gas emissions come from combustion of LPG in the sintering-furnace burners. Hydrogen used in the process is purchased in filled cylinders and does not generate greenhouse gas in use.
EXCEL
CategoryUnit202320242025
Direct GHG emissions (Scope 1)tCO2eq301309305

305-1 Direct (Scope 1) GHG emissions

※ Scope 1 = LPG use (kg) x net calorific value 46.3 MJ/kg x emission factors (CO2 63,100, CH4 1, and N2O 0.1 kg/TJ; global warming potentials CH4 21 and N2O 310), approximately 2.924 kgCO2eq/kg. Company diesel vehicles are excluded as immaterial (estimated at less than 1% of total emissions).
305-2

Energy indirect (Scope 2) GHG emissions

EXCEL
CategoryUnit202320242025
Indirect GHG emissions (Scope 2)tCO2eq5,7956,1825,806

305-2 Energy indirect (Scope 2) GHG emissions

※ Electricity use (MWh) x national grid emission factor 0.4541 tCO2eq/MWh (average for 2020-2022, published in March 2025). The same factor is used for all three years so the figures can be compared.

Scope 2 emissions in 2025 fell by 6.1% (376 tCO2eq) from the previous year as electricity use decreased.
305-4

GHG emissions intensity

EXCEL
CategoryUnit202320242025
Total emissions (Scope 1 + 2)tCO2eq6,0956,4926,111
GHG intensity (per raw material)tCO2eq/t of raw material1.441.441.44

305-4 GHG emissions intensity

※ Totals are summed before rounding, so they may differ by 1 from the sum of the Scope 1 and Scope 2 tables. Total emissions in 2025 were 5.9% lower than the previous year. Scope 1 is about 5% of the total; most emissions come from purchased electricity (Scope 2).
305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

Air pollutants are measured regularly under the Clean Air Conservation Act. Dust concentrations at every stack were within the legal limit and judged compliant.
EXCEL
StackEquipmentParameterLegal limit (mg/Sm3)Internal limit (mg/Sm3)Result (mg/Sm3)Judgement
Stack #4Sintering furnace No. 1Dust20 or below15 or below8.6Compliant
Stack #5Sintering furnace No. 2Dust20 or below15 or below0.3Compliant
Stack #9Sintering furnace No. 4Dust20 or below15 or below0.5Compliant
Stack #10Sintering furnace No. 5Dust20 or below15 or below0.4Compliant

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

※ Testing body: Kicho Environment Co., Ltd. Test date: 2 December 2025 (second-half 2025 self-monitoring, semi-automatic method). The legal limit is the emission allowance of 20 (15) mg/Sm3 or below. Results were submitted as the semi-annual self-monitoring report under the Clean Air Conservation Act (29 Jan 2026). Sintering furnace No. 3 was not operating during the reporting period and was excluded from measurement.

[Attachment] Annex 9. Second-half 2025 air-pollutant self-monitoring report and measurement log
Annex 9. 2025 air-pollutant self-monitoring log
GRI 306 : Waste M
DisclosureContent
3-3_306

Management of waste

Under the ISO 14001 environmental management system, waste is managed separately as general industrial waste and designated waste, and is treated lawfully through licensed contractors. The 2025 environmental policy is (1) to embed the environmental management system, (2) to improve environmental performance continuously, and (3) to reduce resources used and increase recycling. The environmental objectives below were set and pursued.
EXCEL
IndicatorTargetPrior-year result2025 resultAchievementEvaluation
Electricity use / GHG reduction1% below the prior year (13,478,552 kWh or less)13,614,699 kWh12,786,686 kWh105%Met
General waste reductionGeneration rate 1% below the prior year (1.17% or less)1.18%1.20%98%Not met
Designated waste reductionHold at the prior-year level (350 kg or less)350 kg350 kg100%Met
Environmentally considered process design4 cases a year4 cases4 cases100%Met
Environmental awareness trainingOnce a quarter (4 times a year)4 times4 times100%Met
Water-use reduction6 t per person per month or less7.25 t/person-month6.23 t/person-month96%Not met
Violations of environmental law0 cases0 cases0 cases100%Met
Inspection-reject scrap rate (CO2 reduction)0.20% or less0.22%0.20%100%Met

3-3_306 Management of waste

※ Achievement rate = target / result x 100 (for reduction indicators). Waste generation rate = quantity generated / raw material input.
306-3

Waste generated

Total waste generated in 2025 was 51,330 kg, 4.2% lower than the previous year (53,600 kg).
EXCEL
Category 1Category 2Unit202320242025
Waste generatedTotalkg57,02053,60051,330
General industrial wastekg56,67053,25050,980
Designated wastekg350350350
Waste treatedIncineration (general industrial waste)kg56,67053,25050,980
Landfillkg000
Recycling (refining of designated waste)kg350350350
Waste recycling rate%0.610.650.68
General-waste generation rateVersus raw material%1.341.181.20

306-3 Waste generated

※ Treatment methods follow the contractor's treatment route. All general industrial waste is incinerated. Liquid designated waste is refined and recycled. There is no landfill. Recycling rate = quantity recycled / total quantity treated x 100.

[Attachment] See Annex 8, environmental performance intensity data (waste).
Annex 8. Environmental performance intensity data, 2023-2025
GRI 308 : Supplier Environmental Assessment
DisclosureContent
308-2

Negative environmental impacts in the supply chain and actions taken

The human rights policy (August 2025) includes support for suppliers to build a human-rights management system and to prevent human-rights harm. The code of ethics requires fair dealing with suppliers. No separate environmental or social assessment of suppliers was carried out during the reporting period. To close that gap, a supplier code of conduct including environmental requirements was adopted in November 2026, after the reporting period. Compliance pledges were received from all eight suppliers, and an annual self-check is planned from 2027.
EXCEL
TimingSupplier ESG plan
Nov 2026Adopt the supplier code of conduct, issue it to all eight suppliers, and collect compliance pledges
First half of 2027Issue a self-check list covering human rights, safety, environment, and ethics
Second half of 2027Review the results and request improvement where gaps are found
Disclosure Content
Data table Document External link Business case
GRI 401 : Employment M
DisclosureContent
3-3_401

Management of employment

Fair hiring and fair treatment are managed as a core task, so that capable people are recruited and retained. Selection is based on capability, without regard to gender, age, or nationality. Foreign workers are hired lawfully, without a recruitment fee, through the Employment Permit System (EPS) of the Ministry of Employment and Labor. Every employee receives an employment contract and a pay slip. Foreign workers also receive an employment contract and a safe-work manual in their own language. Foreign workers keep their own identity documents and passports.

Working hours: the company observes the 52-hour weekly cap under the Labor Standards Act. Overtime is worked within the legal limit by agreement with the worker. The same rules apply to all employees, including foreign workers.
401-1

New employee hires and employee turnover

EXCEL
Category 1Category 2Unit202320242025
New hiresTotalpersons302210
GenderMen / womenpersons30 / 022 / 010 / 0
NationalityKorean / foreignpersons17 / 1315 / 75 / 5
Age30 or under / 31-50 / 51 or overpersons16 / 12 / 26 / 15 / 16 / 2 / 2
EXCEL
Category 1Category 2Unit202320242025
Employees who leftTotalpersons201715
GenderMen / womenpersons20 / 015 / 215 / 0
NationalityKorean / foreignpersons14 / 69 / 811 / 4
Age30 or under / 31-50 / 51 or overpersons9 / 10 / 18 / 7 / 22 / 10 / 3
Turnover rate%17.414.013.0

401-1 New employee hires and employee turnover

※ Based on employment-insurance acquisition and loss records (company-wide, excluding registered officers). Contract renewals and re-employment after retirement age with no break in service are excluded from hires and turnover. Departure of a foreign worker at the end of the contract is included in turnover. Age is as at each year-end. Turnover rate = employees who left during the year / year-end headcount (115, 121, and 115) x 100. Reasons for leaving, in the order 2023, 2024, 2025: voluntary resignation 18, 15, and 10; contract expiry 1, 1, and 4; retirement age 0, 1, and 1; other 1, 0, and 0.
401-2

Benefits provided to full-time employees that are not provided to temporary or part-time employees

All employees are directly employed, so benefits do not differ by employment type. Foreign workers receive the same benefits as Korean employees. Sixteen benefit programs are in place, including a dormitory, commuter buses, lunch and dinner, congratulatory and condolence leave and payments, resort use, and holiday gifts.
401-3

Parental leave

EXCEL
CategoryUnit202320242025
Employees who took parental leave (men / women)persons0 / 00 / 00 / 0
Employees who returned from parental leavepersons000

401-3 Parental leave

※ No employee took parental leave during the reporting period (employment-insurance leave records). Parental leave is available to men and women alike under the Equal Employment Opportunity and Work-Family Balance Assistance Act.
GRI 402 : Labor/Management Relations M
DisclosureContent
3-3_402

Management of labor/management relations

Under the Act on the Promotion of Workers' Participation and Cooperation, the labor-management council meets quarterly to discuss working conditions, benefits, safety and health, and other material matters. There were no labor disputes and no violations of labor-relations law during the reporting period.
402-1

Minimum notice periods regarding operational changes

Material operational changes that affect working conditions are discussed in advance through the labor-management council. A change to the rules of employment that is unfavorable to workers requires the consent of a majority of workers under the Labor Standards Act. For changes that affect employment, the advance-notice periods in the Labor Standards Act are observed (30 days' notice of dismissal, and 50 days' notice to the workers' representative in the case of dismissal for managerial reasons).
GRI 403 : Occupational Health and Safety M
DisclosureContent
3-3_403

Management of occupational health and safety

Prevention of industrial accidents and protection of workers' safety and health are managed as a core task. The company complies with the Occupational Safety and Health Act and the Serious Accidents Punishment Act, and finds and corrects hazards through periodic risk assessment and safety inspections. Safety signs and work manuals are provided in workers' own languages so that every employee, including foreign workers, can understand the hazards.
403-1

Occupational health and safety management system

A safety and health policy is in place, and each year a safety-management plan (objectives and detailed actions) is carried out with the approval of the Representative Directors. The system covers risk assessment, emergency plans, equipment safety inspection, issue of personal protective equipment, and standard work manuals. The safety and health manager is Representative Director Park Jeong-hwan, and seven supervisory managers are appointed on the shop floor. Safety-manager and health-manager duties are entrusted to the Korea Industrial Safety Association and the Korean Industrial Health Association, which provide technical guidance. The company does not hold ISO 45001 certification.

[Attachment] Annex 10. 2025 safety management plan (including the safety and health policy)
Annex 10. 2025 safety management plan
403-2

Hazard identification, risk assessment, and incident investigation

Risk assessment: assessments are initial, periodic, or occasional. Hazards in the process, equipment, work method, and work environment are identified, and reduction measures are set and carried out according to the risk level. A periodic assessment is done at least once a year. An occasional assessment is done when equipment or the work method changes, or when an incident occurs. Near-miss reports (one per person per month) and worker suggestions are included. The periodic assessment in June 2025 covered ten tasks — raw-material receiving, mixing, press compacting, sintering, sizing and coining, post-processing, inspection and packing, shipping, and maintenance — and identified 124 hazards. Reduction measures were set and are being carried out for 73 of them, including 39 rated above "slightly high", covering checks of guards, reinforcement of safety rails, insulating covers on live parts, and separation of forklift and pedestrian routes, so that residual risk is "moderate" or lower (118 of 124 "very low").

Routine inspections: a joint safety inspection and a fire-equipment inspection are carried out once a month. Hazardous machines such as cranes and conveyors receive a statutory safety inspection every two years, covering equipment condition, work method, and safety devices. A toolbox meeting (TBM) is held before each unit task, and a work-permit system is used.

Incident investigation and prevention of recurrence: when a caught-in incident on 1 October 2025 caused a fracture of a finger on the left hand, an occasional risk assessment was carried out at once, the hazards of that process were reviewed again, and recurrence-prevention measures were set and carried out. Guards and an energy-isolation device were fitted to the equipment. The case was built into safety training and risk assessment to prevent a similar incident.

[Attachment] Annex 11. 2025 periodic risk assessment (28 Jun 2025)
Annex 11. 2025 periodic risk assessment
403-3

Occupational health services

Workplace-environment measurements are taken twice a year (first and second half), and the workplace is improved from the results. General health examinations (production workers once a year, office workers once every two years), pre-placement examinations, and special health examinations (production workers once a year) are carried out, with follow-up for workers who need it. Local exhaust ventilation is operated at dust-generating points in the sintering process.
403-4

Worker participation, consultation, and communication on occupational health and safety

Workers can raise safety and health views through the labor-management council (quarterly) and the grievance channel. The relevant department reviews them and links them to corrective action. The occupational safety and health committee meets once a quarter to deliberate and decide material safety and health matters. Worker suggestions and near-miss reports are received on an ongoing basis.

[Attachment] Annex 12. Q4 2025 occupational safety and health committee minutes (11 Dec 2025)
Annex 12. Q4 2025 occupational safety and health committee minutes
403-5

Worker training on occupational health and safety

Statutory safety and health training is provided to all employees (100% completion in 2025). Training for new hires, training when the work content changes, and special training are run to match the work. Foreign workers receive safety-training material translated into their own language. The annual plan covers regular training (6 hours a quarter), supervisor training (16 hours a year), new-hire training (8 hours), special training for hazardous work (16 hours), and MSDS training (2 hours a year).
EXCEL
CategoryTraining2025 result (persons)
StatutoryRegular safety and health training115 (100%)

403-5 Worker training on occupational health and safety

[Attachment] Annex 13. 2025 occupational safety and health training records (delivery and completion by quarter)
Annex 13. 2025 occupational safety and health training records
403-6

Promotion of worker health

Health examinations are provided for all employees (100% participation in 2025). Follow-up for workers with findings, lunch and dinner, and the dormitory support employees in staying healthy.
403-7

Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

Risk assessment, routine safety inspections, workplace measurements, and health-examination results are used together to find hazards in advance. Prevention matched to the risk level includes equipment improvement, additional safeguards, changes to the work method, and issue of protective equipment. In-house suppliers (security, cleaning, catering, and similar services) follow the company's safety rules. The supplier code of conduct adopted in November 2026 includes safety and health requirements.
403-8

Workers covered by an occupational health and safety management system

Every employee, including foreign workers, is covered by the safety and health management system. Workers of in-house suppliers and visitors are also covered.
403-9

Work-related injuries

EXCEL
CategoryUnit202320242025
Injuriescases1 (caught-in, Goryeong Plant)01 (caught-in, finger fracture)
Injury rate%0.760.000.87
Serious accidentscases000
Fatalitiescases000
Peer-group average injury rate%0.740.760.75

403-9 Work-related injuries

※ The injury rate is the workplace industrial-accident rate issued by the Korea Occupational Safety and Health Agency (KOSHA) on 23 Oct 2026, calculated as injured workers / workers covered by industrial-accident insurance x 100. The number of injuries follows the date of medical-care approval by the Korea Workers' Compensation and Welfare Service. The three-year fatal-accident rate per 10,000 workers is 0.00 (peer-group average 0.45). The three-year average injury rate is 0.56% (peer-group average 0.75%).

[Attachment] Annex 14. Workplace industrial-accident rate inquiry (KOSHA, issued 23 Oct 2026)
Annex 14. Workplace industrial-accident rate inquiry
403-10

Work-related ill health

EXCEL
CategoryUnit202320242025
Cases of work-related ill healthcases000

403-10 Work-related ill health

※ The KOSHA inquiry shows an occupational-disease rate of 0.00% for 2023-2025 (peer-group average 0.20-0.23%).
GRI 404 : Training and Education M
DisclosureContent
3-3_404

Management of training and education

Statutory training and job training are run on a set plan. In 2025 the completion rate was 100% for safety and health training and for human-rights and non-discrimination training. Environmental-awareness training was held once a quarter, meeting the target of four times a year. Competence is assessed by job under IATF 16949, and gaps are closed through a training plan.
EXCEL
TrainingAudienceCompletionNote
Statutory safety and health trainingAll employees100%Annual
Statutory training on prevention of workplace sexual harassmentAll employees100%Once a year
Statutory disability-awareness trainingAll employees100%Once a year
Personal-information trainingAll employees100%
Human-rights and non-discrimination trainingAll employees100%Annual
Environmental-awareness trainingAll employees100%Once a quarter, four times a year

3-3_404 Management of training and education

[Attachment] Annex 15. 2025 statutory training completion
Annex 15. 2025 statutory training completion
GRI 405 : Diversity and Equal Opportunity M
DisclosureContent
3-3_405

Management of diversity and equal opportunity

Basic pay does not differ by gender or nationality, and the principle of equal pay for equal work is observed. At the end of 2025, 21% of employees (24 people) were foreign workers, so people of several nationalities work together.
405-1

Diversity of governance bodies and employees

EXCEL
CategoryUnit202320242025
Menpersons101109103
Womenpersons141212
Foreign nationalspersons242424
Registered directors (excluding the auditor)persons444
GRI 406 : Non-discrimination M
DisclosureContent
3-3_406

Management of non-discrimination

The human rights policy (August 2025) and the rules of employment prohibit discrimination on the grounds of gender, age, education, race, ethnicity, nationality, region of origin, religion, disability, or social status, and provide for prevention of sexual harassment and workplace harassment and for protection of affected people. Hiring is run so as to exclude prejudice. A human-rights impact assessment was not carried out during the reporting period; from 2026 it will be carried out once a year at every plant. Human-rights and non-discrimination training (100% completion) and a grievance channel are in place.

[Attachment] See Annex 3, human rights policy and workplace harassment prevention and grievance procedure.
Annex 3-2. Human rights policy (22 Aug 2025)
Annex 3-4. Workplace harassment prevention and grievance procedure
406-1

Incidents of discrimination and corrective actions taken

EXCEL
CategoryUnit202320242025
Incidents of discriminationcases000
GRI 407 : Freedom of Association and Collective Bargaining M
DisclosureContent
3-3_407

Management of freedom of association and collective bargaining

Employees are free to form and join a trade union. The labor-management council is used to exchange views and to prevent conflict. The supplier code of conduct adopted in November 2026 also includes freedom of association (Article 11). No plant had its freedom of association infringed or placed at risk during the reporting period.
GRI 414 : Supplier Social Assessment M
DisclosureContent
3-3_414

Management of supplier social assessment

The human rights policy (August 2025) requires human-rights protection to be included when contracting with suppliers, and an effort to keep suppliers linked to human-rights harm out of the supply chain. A responsible-minerals policy is also in place, with internal training and CMRT tracking. In November 2026, after the reporting period, a supplier code of conduct was adopted covering human rights and labor, safety and health, the environment, and ethics and responsible minerals.
414-2

Negative social impacts in the supply chain and actions taken

EXCEL
CategoryDetails
Supplier code of conductAdopted in November 2026 (after the reporting period); compliance pledges collected from all eight suppliers
Topics coveredHuman rights and labor (ban on forced and child labor, protection of foreign workers, non-discrimination, freedom of association, and related items), safety and health, environment, ethics, and responsible minerals (6 chapters, 31 articles)
Supplier checksAnnual self-check (planned to start in 2027)
Responsible mineralsInternal training and CMRT tracking

414-2 Negative social impacts in the supply chain and actions taken

[Attachment] Annex 4. Supplier code of conduct (adopted Nov 2026, including the pledge form)
Annex 4. Supplier code of conduct (1 Nov 2026)
GRI 418 : Customer Privacy
DisclosureContent
418-1

Substantiated complaints concerning breaches of customer privacy and losses of customer data

Internal rules and a policy on information security are in place, and awareness training is provided to employees. An internal reporting procedure allows stakeholders to report an information-security concern. There were no information-security breaches and no related legal sanctions during the reporting period. The company does not currently hold an external certification such as ISO 27001, and will consider obtaining one.
EXCEL
CategoryUnit202320242025
Breaches of personal information or information securitycases000
Corporate news
Information

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