2021/22 NEXEN TIRE ESG Report

Contents
2021/22 Key Highlights
03
Introduction
Global CEO Message
05
NEXEN TIRE Profile
06
NEXEN UNIVERSE
07
NEXEN TIRE Value Chain
08
NEXEN TIRE UN SDGs
09
ESG Management 
ESG Management System
11
Double Materiality Assessment
16
Management Approach(MA)
20
Stakeholder Communications
22
Economic Dimension
NEXEN TIRE’s Economic Performances
24
R&D (Technological Innovation)
24
Drivers of NEXEN’s Growth
26
Digital Transformation
27
Environmental Dimension
Environmental Management System
29
R&D and Raw Material
30
Manufacture
32
Use
33
Recycling & Disposal
35
Response to Climate Change
36
Social Dimension
Human Rights
41
Occupational Health and Safety
43
Employees
47
Customers
55
Suppliers
63
Social Contribution
67
Information Security
71
Governance Dimension
Responsible Governance
76
Ethical Management
80
Risk Management
82
Appendix
Initiatives and Awards
86
ESG Data
87
SASB Standards Index
98
TCFD Standards Index
99
GRI Standards Index
100
Third-party Assurance
103
GHG Verification Statement
104
About this Report
105
Cover Story
In celebration of the 80
th anniversary 
of NEXEN TIRE, this cover was designed 
using the 80
th- anniversary emblem.
2021/22 NEXEN TIRE ESG Report      02
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

2021/22 Key Highlights
ENVIRONMENTAL
SOCIAL
GOVERNANCE
Environmental management system (EMS) 
implementation rate
Implementation rate of transition to  
Green Premium purchase
Designated as an excellent workplace for  
reducing particulate matter in 2021
Environmental training completion rate  
(based on domestic worksites) 
Ranked No. 1 in global customer satisfaction index for 
13 consecutive years (as of June 2022) 
Received the Grand Prize in Korea  
Labor-Management Cooperation Awards 2021
Recorded zero labor strikes for the 30 consecutive 
years
Selected as “Excellent Company in Quality 
Competitiveness” at the National Quality Management 
Convention (certificate and plaque from the Minister of 
Trade, Industry, and Energy)
Ratio of ethical risk assessment 
Ratio of ethics education completion
Liability insurance of directors
Number of corruption cases identified
Named “2020 Best Supplier of the Year” by Stellantis in 
2021
Acquired global information security certification TISAX 
in 2022
Ratio of sustainable (recycled, recyclable)  
raw material use 
Received prize in the general service sector of  
the 2021 National Service Awards
100%
1st
100%
98.2%
0case
30years
23%
100%
5.9%
2021/22 NEXEN TIRE ESG Report      03
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

05	
Global CEO Message 
06 
NEXEN TIRE Profile 
07	
NEXEN UNIVERSE 
08	
NEXEN TIRE Value Chain 
09	
NEXEN TIRE UN SDGs 
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Through 2021/22 ESG Report, which is published for the third time this year, we 
are sincerely grateful to share NEXEN TIRE’s ESG management performances, 
plans, and strategies over the past year with our stakeholders.
The past year has been a time of difficulty, full of confusion and uncertainties in 
the global economy due to the continued proliferation of COVID-19. In partic-
ular, various elements causing instability, such as reduced automobile produc-
tion due to semiconductor shortage, rapid rise in ocean freight as a result of the 
global logistics disruption, increased prices of raw materials, and anti-dumping 
tariff imposition by the US, wielded a negative impact on the tire industry. It also 
affected NEXEN TIRE. Despite record-high sales of KRW 2.0794 trillion, our oper-
ating profit was only KRW 4.4 billion due to the impact of the internal and exter-
nal environment. However, we established a basis for securing a future growth 
engine by producing remarkable performances, which include expansion of sup-
ply to premium automotive companies such as Porsche and Audi, designation as 
the best supplier by Stellantis, awarding Podium prize in Toyota 86/BRZ Race, and 
receipt of the Grand Prize in the Korea Labor-Management Cooperation Awards.
This year, although the unstable management environment persists, we will 
move forward to grow into a sustainable company by actively responding to the 
challenges and tasks we face. To this end, we will implement the following strat-
egies. In order to minimize the impact of instability in the global supply chain, 
NEXEN TIRE will establish mid- to long-term response strategies for shipping 
companies and increase the percentage of overseas sales by securing local dis-
tribution bases. We will also strengthen core competencies by business sector in 
order to realize customer delight, establish a multi-plant production system, and 
secure quality competitiveness in the market. In addition, we will create a new 
growth engine by implementing the second extension of our European plant 
located in the Czech Republic. At the same time, NEXEN TIRE will aggressively 
invest in future business items in the mobility field, such as eco-friendly vehicles 
and autonomous driving, in addition to securing technological competitiveness 
through the development of tires to lead the market in the future.
NEXEN TIRE will also actively promote ESG management in order to achieve 
sustainable growth. Recently, we won the Silver Medal from EcoVadis by scor-
ing high in environment, labor and human rights, and sustainable procurement 
items of the sustainability assessment. By improving from the Bronze Medal in 
2021 to the Silver Medal, we solidified our position as a sustainable company.
Last year, NEXEN TIRE derived the strategic tasks for internalizing the environ-
mental management system, finalized the strategy implementation roadmap, 
and established goals by stage. To enhance eco-friendly management, we will 
continue establishing environmental management policies covering all areas 
from climate response and reduction of air pollutants, greenhouse gas emis-
sions, and energy consumption to reduction of water consumption, local pollu-
tion, and waste generation, increased recycling, management of raw materials, 
and biodiversity protection. For environmental and climate change response in 
particular, we established “SHE Planning Team” to serve as a company-wide envi-
ronmental management control tower. Moving forward, we will organize ESG 
response Operating Committee and the ESG Committee to manage our ESG 
status and issues and approve mid- to long-term ESG plans through linkage to 
the management’s environmental change response and corporate strategies. In 
this process, we will internalize ESG management and consequently create an 
environment where ESG management is spread across the company. We also 
plan to share the goals and results transparently with our stakeholders in order 
to achieve further development.
This year, NEXEN TIRE is celebrating its 80th anniversary. We believe that it is the 
starting point of our journey towards becoming a sustainable company as well 
as the time for us to think prudently about our preparations for the future. In the 
era of ESG management, we will create the value of sustainable management to 
meet stakeholders’ expectations and focus on our long-term growth. We invite 
you to join NEXEN TIRE’s journey toward the future. Thank you.
Global CEO Message
Dear stakeholders,
I would like to express my sincere gratitude to our shareholders, cus-
tomers, employees, partners, local communities, and other stake-
holders for their unwavering trust and support for NEXEN TIRE.
NEXEN TIRE Global CEO Ho-Chan Kang
2021/22 NEXEN TIRE ESG Report      05
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

1940 
1942.6. 
Established Heung-a  
Tire Industry Co., Ltd.
1952.3.
Changed company name  
to Heung-a Tire Co., Ltd.
1956.6.
Produced automobile tires 
for the first time in Korea
1970 
1973.5.
Heung-a Tire Co., Ltd. 
undertaken by Wonpung 
Industry Co., Ltd.
1976.5.
Wonpung Industry Co., 
Ltd. listed in the Korea 
Stock Exchange
1979.8.
Wonpung Industry Co., 
Ltd. undertaken by the 
Kukje Group
1980 
1984
Commenced construction 
of the radial tire plant in 
Yangsan
1986.2.
Wonpung Industry Co., 
Ltd. undertaken by the 
Woosung Group
1987.6.
Established joint venture 
with Michelin Korea Tire 
Co., Ltd. (cooperation 
terminated in June 1991)
1990 
1991.10.
Signed technology 
cooperation agreement 
with Ohtsu Tires in Japan
1994.3.
Changed company name  
to Woosung Tire Co., Ltd.
1999.3.
Took over the management 
of NEXEN Corporation 
(formerly known as 
Heung-a Tire Co., Ltd.)
2000 
2000
Changed company name 
from Woosung Tire to 
NEXEN TIRE
2005.6.
Established America Inc.
2010 
2011.8.
Launched the eco-friendly 
tire brand N’blue Eco
2011.12.
Received presidential 
citation for labor-
management cooperation
2012.3.
Started operation of 
Changnyeong Plant
2013.2.
Held the earliest general 
shareholders’ meeting 
among all listed Korean 
companies for the 14th 
consecutive year
2013.3.
Commenced investment 
in the second extension of 
Changnyeong Plant
2014.6.
Signed joint investment 
agreement for European 
plant (Czech Republic)
2015.9.
Launched NEXT LEVEL, 
the first tire rental service 
offered by a Korean tire 
manufacturer
2015.10.
Commenced construction of 
European plant  
(Czech Republic)
2017
Commenced premium OE 
(original equipment) tire 
supply
2017.5.
Commenced construction 
of Magok R&D Center
2018.9.
Established and expanded 
research center in Europe 
(NETC)
2019.2.
Commenced tire 
production at European 
plant
2019.6.
Signed partnership 
agreement with global 
innovation accelerator Plug 
and Play
2020 
2020.3.
Launched contactless tire 
exchange service ‘NEXT 
LEVEL GO’ for the first time 
in the industry
2021.5.
Received the Grand Prize in 
Korea Labor-Management 
Cooperation Awards
Company Profile
Starting out as Heung-a Tire Industry in 1942, NEXEN TIRE has grown consider-
ably with its epoch-making achievements in the domestic tire industry, starting with 
the production of automobile tires for the first time in Korea in 1956. After chang-
ing its name from “Woosung Tire” to “NEXEN TIRE” in 2000, the company marked 
the highest sales growth rate and gained recognition for its technological leader-
ship. To date, NEXEN TIRE has expanded its operation beyond Korea, operating four 
plants in China and Europe. Centering on the Magok Central Research Institute, 
the company has established global R&D networks in the US, China, and Germany, 
responding rapidly to the diversifying market. NEXEN TIRE, which operates in more 
than 150 countries based on its expertise and technologies accumulated over 70 
years, will not slow down its pursuit for becoming a top-notch company that looks 
forward to the next generation.
Domestic and International Sales Network
Based in South Korea, NEXEN TIRE manufactures and sells tires through its global 
sales networks in China, US, Europe, and Southeast Asia. Since commencement of 
the European plant operation with a goal to establish global production bases in 
Europe and North America, NEXEN TIRE has been providing the best driving experi-
ence to customers around the world by securing quality and advanced productivity, 
and therefore enhancing quality competitiveness.
NEXEN TIRE Profile
Company History
○
● Milan Branch 
● Istanbul Branch 
● Dubai Branch 
● Kuala Lumpur Branch 
● Sao Paulo Branch 
● Bogota Branch 
● Johannesburg Branch 
EUROPE
AFRICA
ASIA
OCEANIA
MIDDLE EAST
NORTH AMERICA
SOUTH AMERICA
 Lyon Branch ● 
 Sydney Branch ●
■ Russia Inc. 
■ Shanghai Inc.
■ Japan Inc. 
Qingdao Inc./ 
Qingdao Plant 
Europe Inc./European Plant 
□■ 
□■
China Technical Center 
□■ Headquarters/
Yangsan Plant
○ Korean Central  
Research Institute 
Changnyeong □
Plant 
Domestic and International Sales Network
■ Headquarters/Sales Co., Ltd  
□ Plant   
○ Technical Center  
● Global Branch
  
○
Europe Technical Center/Frankfurt Branch
● Prague Branch 
■ Canada Inc. 
America Inc. ■○
 US Technical Center 
2021/22 NEXEN TIRE ESG Report      06
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Summer
N'FERA Sport
Winter
WINGUARD Sport 2
SUV
ROADIAN HTX 2
ROADIAN ATX 
All Seasons
N’FERA Supreme 
N’blue 4 Season 2 
Mission 
Creating Value for Tomorrow, Every Step of the Way
NEXEN TIRE’s mission of “Creating Value for Tomorrow, Every Step of the Way” is the foundation of NEXEN’s business activities as well as the guidelines 
spurring the company’s continuous change and growth. Every NEXEN employee’s thoughts and behaviors, including value-creating activities, aim to 
contribute to the world’s prosperity by creating a better future through the realization of satisfaction and expectations of mankind.
Vision 
Using innovative services and technologies that put people first, NEXEN TIRE will create a world where mobility can be enjoyed by all.
Code of Conduct 
 
NEXEN TIRE’s Code of Conduct, which embodies the company’s management 
philosophy, can be described as the “actions of NEXEN employees for 
Challenge, Creativity, and Collaboration.”
Entrepreneurship 
Humanity  
Principle  
 
We aim to benefit 
humanity and 
contribute to the 
betterment of the 
world.
Action  
Principle  
 
We constantly 
explore, collaborate, 
and strive for a 
better future.
Employee  
Principle  
 
We take pride in our 
competitiveness and 
ability to benefit the 
world by enhancing 
people’s life.
Product  
Principle  
 
We build trust 
in our products 
through our leading 
technological 
innovation that puts 
life first.
NEXEN UNIVERSE
Challenge
Achieving outstanding outcome through pas-
sion and confidence without fear of failure
Creativity
Presenting new ideas or alternatives by think-
ing out of the box, leading change to prepare 
for the future rather than settling for the present
Collaboration
Maximizing cooperation between individuals 
and organizations based on an active, positive 
mindset to create better performance 
Product 
Tire Brands & Products
Perseverance 
(Strongly in our own way)  
We make it happen even if others  
say it is impossible.
Center 
(Firm with confidence)  
We are determined to create 
 a better world.
Sincerity
(Upright for the benefit of all)  
We can bring change with  
the sincerity of hard work.
Cooperation
(Cherishing each other)  
We pursue long-term mutual growth 
rather than short-term profit.
2021/22 NEXEN TIRE ESG Report      07
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

1          R&D
NEXEN TIRE defines eco-friendly products as superior products that have higher energy consumption efficiency (e.g. in 
high rolling resistance performance) in comparison to market average. We are investing in R&D to develop such eco-
friendly products. In response to the strengthening of environmental regulations, we will continuously manage and 
increase the percentage of our eco-friendly products to achieve the GHG reduction goals and minimize particulate 
matter emissions.
2          Raw Material
Currently, approximately 23% of NEXEN TIRE’s products use sustainable materials. We are seeking to increase this figure 
by incorporating various recycled and reusable materials into our products. We also conduct research in cooperation 
with various partners to develop high-performance tires using eco-friendly raw materials. 
3          Manufacture
NEXEN TIRE is establishing and enhancing its Environmental Management 
System by acquiring ISO 14001 for entire domestic and overseas plants. We will 
continue minimizing environmental risks through systematic risk identification, 
assessment, and improvement activities. In addition, we are conducting a 
variety of investment activities to minimize environmental impacts by reducing 
GHG emissions, wastewater, garbage, and energy used in the process.
4          Use
Tires are directly related to driver safety as they are the only parts in 
contact with the vehicle and the ground. NEXEN TIRE manufactures tires in 
compliance with the strict technical specifications of IATF 16949 for product’s 
safety and quality. In addition, we wage safety campaigns and provide 
inspection services to customers in order to fulfill our product responsibilities.
5          Recycling & Disposal
Almost 100% of the waste tires processed from NEXEN TIRE’s domestic and 
overseas plants are recycled in various materials. They are broken down to 
obtain key ingredients such as rubber and steel. In domestic plant, these 
tires are reused to create thermal energy through incineration. The obtained 
rubber is used in eco-friendly rubberized asphalt.
NEXEN TIRE Value Chain
Percentage of plants with ISO 14001
100%
Percentage of eco-friendly  
products
Korea 6.6%, Europe 9.8%
R&D investment
Approx. KRW  85.1billion
Ratio of R&D investment to annual 
sales 
 4.1%  
Percentage of sustainable (reused/recyclable) materials
23.3%
Percentage of plants with IATF 16949
100%
Waste tire recycle rate (based on plants) 
Approx. 100%*
*Data from the Korea Tire Industry Association
Tire brands
5 Brands
Total number of employees
6,860 Persons
(domestic 4,000 + overseas 2,860)
Domestic  
and Overseas  
Business Portfolio
 
Tire Sector
·	 Products (tire)
·	 Others (rental, lease, and  
sales agency)
	
Non-tire Sector
·	 Transportation and storage
·	 Molding (tire mold)
·	 Bakery, etc.
GHG emissions (Scope 1 + 2)
368,296 tCO2eq
2021/22 NEXEN TIRE ESG Report      08
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Activities for the UN SDGs
Sustainable Development Goal
    Activities
Page
No Poverty
End poverty in all its forms everywhere
• Operating the NEXEN Wolsuk Cultural Foundation
69
Good Health and Well-Being
Ensure healthy lives and promote well-being for 
all at all ages
• Strengthening safety in worksites
• Managing employees’ health
• Implementing N-Change and quarter-day leave system
• Operating an in-house blood donation center, etc.
43-46, 
48
Quality Education
Ensure inclusive and equitable quality 
education and promote lifelong learning 
opportunities for all
• Operating the NEXEN Learning Academy (NLA)
• Providing ethics education and information security 
education, etc. to employees
50-51, 
74, 80
Gender Equality
Achieve gender equality and empower all women 
and girls
• Providing education on diversity
• Announcing the Declaration of Human Rights, etc.
41-42
Affordable and Clean Energy
Ensure access to affordable, reliable, sustainable, 
and modern energy for all
• Conducting industry-academic collaboration research to 
develop eco-friendly tire materials
• Implementing the eco-friendly product policy
• Signing the Green Premium contract
30, 33, 
36-39 
Decent Work and Economic Growth
Promote sustained, inclusive, and sustainable 
economic growth, full and productive 
employment, and decent work for all
• Getting consulting service to improve the organizational 
culture and HR system
• Holding labor-management council meetings and Labor-
Management talks
47-49, 
51-54
Industry, Innovation and Infrastructure
Build resilient infrastructure, promote inclusive 
and sustainable industrialization, and foster 
innovation
• Conducting R&D for eco-friendly products
• Revising information security and privacy regulations
33-34, 
71-74
Reduced Inequalities
Reduce inequality within and among countries
• Providing human rights education
• Operating a reporting center
41-42
81
NEXEN TIRE UN SDGs
Sustainable Development Goal
    Activities
Page
Sustainable Cities and Communities
Make cities and human settlements inclusive, 
safe, resilient, and sustainable
• Implementing a tire support project for local communities
• Operating the Children Safety Center
• Operating volunteer clubs by worksite
68
Responsible Consumption  
and Production
Ensure sustainable consumption and 
production patterns
• Revising the sustainable purchasing policy for suppliers
• Implementing the conflict minerals management policy
• Hosting the 2022 Golden Tire Awards
• Collecting VOCs from agencies through regular market 
survey and reflecting the market trend to policy 
development
• Providing accurate product information by distributing the 
pattern guidebook and price list for 2021 - 2022
57-58,
63-64
Climate Action
Take urgent action to combat climate change 
and its impacts
• Establishing a carbon neutrality strategy and RE100 
roadmap
• Developing energy-saving technologies
36-39
Life on Land
Terrestrial ecosystems
• Operating the environmental management system (EMS)
• Conducting on-site inspections of waste treatment 
companies
• Strengthening the supplier audit criteria
29-32 
Peace, Justice and Strong Institutions
Promote peaceful and inclusive societies for 
sustainable development, provide access to 
justice for all, and build effective, accountable, 
and inclusive institutions at all levels
• Implementing the sustainable natural rubber policy
• Holding the general shareholders’ meeting
• Providing cash dividend
• Holding an IR meeting
• Operating the reporting center
63, 
77-82
Partnerships for the Goals
Strengthen the means of implementation and 
revitalize global partnership for sustainable 
development
• Sponsoring sports competitions
• Joining the Global Initiatives
70, 86
2021/22 NEXEN TIRE ESG Report      09
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

11	
ESG Management System
16	
Double Materiality Assessment
20	
Management Approach(MA)
22	
Stakeholder Communications
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Supply Chain Management
NEXEN TIRE is creating a sustainable ESG supply 
chain system by supporting the growth of part-
ners based on transparent and healthy transactions. Since the 
Supplier ESG Management Policy  was established in August 
2019, we have been upgrading the policy annually according 
to customer needs and industrial trends. We are also support-
ing the spread of ESG value such as corporate ethics, labor and 
human rights, and environmental, health, and safety policies 
across the supply chain.
ESG Policy
NEXEN TIRE established ESG principles to grow with stakeholders and fulfill corporate social responsibilities in pursuit of 
the value of consideration, coexistence, and symbiosis. Our ESG principles set the guidelines as to how we must fulfill social 
responsibilities in the areas of business ethics, labor and human rights, environment, and supply chain management.
NEXEN ESG History
ESG Management System
	 2022 
·	 Received the Silver Medal from EcoVadis (Apr. 2022)
·	 Acquired the information security  
certification TISAX (Magok, EP, NETC)
·	 Joined ETRMA (European Tyre and  
Rubber Manufacturers’ Association)
·	 Joined K-ESG Alliance 
	 2021 
·	 Received the Grand Prize in the Korea Labor-Management Cooperation Awards
·	 Received the Bronze Medal from EcoVadis
·	 Participated in CDP (Climate Change) (Yangsan, Changnyeong, Czech Republic)
·	 ‘N’FERA Sport’ ranked No. 1 in the summer tire performance test conducted 
by German automobile magazine ‘ACE Lenkrad ‘
	 2020 
·	 Acquired ISO 45001 (Yangsan, 
Changnyeong, Cheongdo, Czech Republic)
·	 Acquired ISO 14001 (Yangsan, 
Changnyeong, Magok, Qingdao, Europe)
·	 Acquired IATF 16949 (Yangsan, 
Changnyeong, Qingdao, Europe)
·	 Joined the Global Platform for Sustainable 
Natural Rubber (GPSNR)
·	 Designated as an excellent workplace for 
reducing particulate matter
·	 Established a supplier CSR policy
·	 Named ‘2020 Best Supplier of the Year’ 
by Stellantis
·	 Participated in CDP (Climate Change) 
(Yangsan, Changnyeong)
·	 Participated in CDP(Water Security) 
(Yangsan, Changnyeong) 
	 2019 
·	 Published the ESG Report (2020)
·	 Won ‘the Grand Prize in the National 
Service Awards’ for NEXT LEVEL service (for 
three consecutive years from 2019 to 2021)
·	 Participated in EcoVadis
·	 THE NEXEN univerCITY acquired 
certification as an eco-friendly green 
office building
	 2017 
·	 Participated in NQC SAQ
	 2015 
·	 Conducted CO2 reduction target 
management  
(Changnyeong, Yangsan)
	 2013 
·	 Participated in CDP (climate change)
·	 Won the GM ‘Supplier Quality Excellence 
Award’ (for eight consecutive years from 
2013 to 2021)
	 2008 
·	Established the NEXEN Wolsuk Cultural 
Foundation
	 2009 
·	 Ranked No. 1 in the global customer 
satisfaction index (GCSI) (for 13 
consecutive years upto 2022)
	 2011 
·	 Acquired ISO 14001
·	 Conducted CO2 reduction target 
management (Yangsan)
·	 Won the Grand Prize in the Gyeongnam 
QCC Contest (Yangsan, Changnyeong) (for 
ten consecutive years from 2011 to 2021)
	 1995 
·	 Established the KNN Cultural 
Foundation
	 2003 
·	 Established the NEXEN Wolsuk Busan 
Leading Scholarship Committee
	 2007 
·	Acquired certification as an excellent 
workplace with health promotion activities 
(Yangsan) (for 13 consecutive years from 
2007 to 2021)
Labor and Human Rights
As a people-oriented company, NEXEN TIRE is 
committed to fulfilling its mission through human 
rights management that puts labor and human rights protec-
tion first in all business activities. To this end, we have estab-
lished a human rights management policy and announced the 
Human Rights Declaration to present the standards for value 
judgment that must be observed by all employees and stake-
holders, and we have pledged to practice them in all business 
activities. We plan to establish the ESG committee to conduct 
various activities aimed at establishing a human rights man-
agement system and reinforcing company-wide human rights.
Environment, Health, and Safety(EHS)
According to the environmental management pol-
icy, NEXEN TIRE, in the short term, is implementing 
tasks based on the roadmap, such as life cycle assessment (LCA), 
with the goal of establishing environmental policies. In the long 
term, we are systematizing the internal and external eco-friendly 
process development by reviewing and discovering new busi-
ness items for corporate sustainability and gradually increasing 
the percentage of eco-friendly products, etc. In terms of occu-
pational health and safety, according to the full enforcement 
of the Act on the Punishment, etc. of Serious Accidents, we set 
occupational health and safety as the core value of our manage-
ment activities and established and announced an independent 
occupational health and safety management policy. In addition, 
we are promoting substantial accident prevention by introduc-
ing and operating Occupational Health and Safety Assessment 
System for supervisors.
Business Ethics
NEXEN TIRE is striving to create a transparent, fair, 
and mature corporate culture based on its man-
agement principles and ethical standards to pursue the value 
of consideration, coexistence, and symbiosis while growing 
with stakeholders, such as shareholders, customers, suppliers, 
partners, local communities, and employees. We endeavor to 
practice ethical management, for example by conducting ethi-
cal management surveys among employees, providing regular 
education and operating a reporting center for ethical code vio-
lations in addition to running Ethics Management Team under 
direct control of COO. Moreover, the head of the Legal Affairs 
Team is designated as the compliance officer, and the Legal 
Affairs Team supports our compliance management.
NEXEN TIRE ESG Principles
2021/22 NEXEN TIRE ESG Report      11
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

ESG Implementation System
While fulfilling its corporate social responsibility, NEXEN TIRE is promoting 
sound growth together with all stakeholders such as customers, business 
partners, local communities, and employees. We are committed to practicing 
sustainable management under the ESG strategy system covering the com-
pany’s mission and vision as well as core values.
ESG Strategy System and Tasks
In 2021, NEXEN TIRE established the ESG strategy system that is connected to 
the company-wide value system. We set “Mark On,” which symbolizes the “skid 
mark” we made on the environment and society based on our sustainability, 
as well as the promotional directions for each of the ESG pillars. As for the 
direction of our mid- to long-term ESG goals, we reflected the requirements of 
various stakeholders including customers that wield significant impact on us. 
In addition, for the promotion of strategies by ESG pillar, items for which our 
level of response to domestic and overseas initiatives is insufficient are set as 
our tasks and reflected the recent changes in intiatives. Through this process, 
a list of strategic tasks for each of the ESG items was developed, which we will 
implement as response is required.
ESG Management Organization
NEXEN TIRE responds to key ESG-related issues through the Strategy Plan-
ning Team of the Business Administration Business Group under the CEO. In 
2022, for environmental and climate change response, we established the 
SHE Planning Team to serve as a company-wide environmental management 
control tower. 
We will organize the ESG Response Operating Committee and the ESG com-
mittee to manage our ESG status and issues and approve mid- to long-term 
ESG plans through linkage to the corporate and response strategies to envi-
ronmental change.
2022 
ESG management 
introduction
Set ESG goals and directivity
2023-24 
ESG management 
establishment
Improve ESG performance
2025-
ESG management 
advancement
Upgrade ESG management
ESG Strategy Promotion Roadmap
ESG Management Organization
(As of Apr. 2022)
CEO
1. Responding to the Act on the Pun-
ishment, etc. of Serious Accidents 
and the Occupational Safety and 
Health Act
2. Standardizing occupational health 
and safety management guidelines
3. Executing ESG-related response/
responding to environmental 
assessment, such as CDP
4. Assessing Occupational Health 
and Safety Management Officer of 
each plant
5. Responding to SHE requirements 
of stakeholders
6. Managing LCA
ESG supervising department
Strategy Planning Team
SHE Planning Team
• Overseeing the ESG Report publication
• Countering to external ESG assessment
• Managing and monitoring the  
implementation of ESG tasks
• Inspecting compliance with internal 
and external policies
• Responding to OEM ESG issues
• Collecting and managing data
Company-wide environmental  
management control tower
NEXEN TIRE’s ESG Strategy System
Creating Value for Tomorrow,  
Every Step of the Way


Mission
Vision
Mark on Society
2.1. Enhance employee happiness
˙	 Improving employee satisfaction
˙	 Expanding the basis for human 
rights management
2.2. Expand win-win management
˙	 Implementing responsible supply 
chain operation
˙	 Improving customer satisfaction and 
expand social contribution
Mark on Environment
1.1. Establish the basis for eco-friendly man-
agement	
˙	 Establishing an environmental  
management policy and the  
organization in charge
˙	 Managing the environmental  
management outcomes
1.2. Create an eco-friendly ecosystem
˙	 Activating eco-friendly communication
˙	 Strengthening the new eco-friendly business
Mark on Governance
3.1. Establish transparent governance
˙	 Upgrading the governance system
˙	 Improving the Board of Directors(BOD) 
operating system
3.2. Strengthen the ESG risk  
management system
˙	 Strengthening ethical management
˙	 Strengthening internal control and 
risk management


Pillars
Strategic 
Direction 
and Tasks
2021/22 NEXEN TIRE ESG Report      12
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

ESG Promotion Goals by 2025
●●●●● Completely fulfilled     ●●●●◯ 80% fulfilled     ●●●◯◯ 50 - 60% fulfilled    ●●◯◯◯ 40% fulfilled    ●◯◯◯◯ 20% or less fulfilled
ESG Pillar
Strategic Direction
Tasks
Short-term Goal (by 2022)
Mid- to Long-term Goal (by 2025)
Remarks
Detailed Goal
Fulfillment
Mark on  
Environment
Establishing the 
basis for eco-friendly 
management
Establishing an 
environmental 
management policy and 
the organization in charge
˙	Establishing environmental policy goals (GHG, energy consumption, etc.)
˙	Introducing the LCA (Life Cycle Assessment) system
˙	Establishing the organization in charge of SHE
In progress  ●◯◯◯◯
In progress  ●●●◯◯*
Completed   ●●●●●
˙	Establishing a climate change response policy
˙	Responding to climate change by expanding eco-friendly management
˙	Promoting the achievement of Net Zero 2039
˙	Promoting the achievement of RE100  
(plan to achieve EP by 2024, QP by 2024, YP by 2039, and CP by 2039)
* Promoting LCA 
consulting in 
2022
Managing the 
environmental 
management outcomes
˙	Setting a waste reduction goal
˙	Establishing energy intensity management indicators
˙	Establishing water consumption indicators
In progress  ●◯◯◯◯
In progress  ●◯◯◯◯
In progress  ●◯◯◯◯
˙	Increasing renewable energy use
Creating an  
eco-friendly ecosystem
Activating eco-friendly 
communication
˙Developing a hazardous substance and waste reduction program
˙	Redefining the eco-friendly product
˙	Increasing the percentage of eco-friendly products to 6.6% in Korea and 
9.8% in Europe
In progress  ●◯◯◯◯
In progress  ●●●◯◯
Completed   ●●●●●
˙	Increasing the percentage of eco-friendly products to 9.8% in Korea and 
14.3% in Europe
Mark on  
Society
Enhancing employee 
happiness
Improving employee 
satisfaction
˙	Establishing a health and safety policy for employees
Completed   ●●●●●
˙	Creating a sustainable work environment
Expanding win-win 
management
Implementing responsible 
supply chain operation
˙Establishing a supply chain policy
˙Establishing a supplier performance assessment system
˙Introducing and operating regular/constant communication channels 
with suppliers
˙Establishing a green procurement policy
Completed   ●●●●●
In progress  ●◯◯◯◯
In progress  ●◯◯◯◯ 
 
In progress  ●◯◯◯◯*
˙	Improving the supply chain management process
* Partially reflected 
to the supply 
chain policy
Improving customer 
satisfaction and expand 
social contribution
˙	Introducing a policy to encourage social contribution activities
Completed   ●●●●●
˙	Developing a sustainable management system for mutual growth with 
external stakeholders
Mark on 
Governance
Establishing 
transparent 
governance
Advancing the governance 
system
˙	Establishing a policy to ensure transparency of governance
˙	Establishing governance charters
In progress  ●●◯◯◯
In progress  ●●●◯◯
˙	Improving transparency in organizational structure
˙	Achieving transparent governance operation
˙	Minimizing ESG risks by upgrading inspection, internal control, and risk 
management system
Improving the BOD 
operating system
˙	Revising the Board of Directors(BOD) regulations and disclosing 
information on the website
In progress  ●●●◯◯
˙	Completed regulation revision, to be disclosed on the website
Strengthening the ESG 
risk management  
system
Strengthening ethical 
management
˙	Achieving 100% ethical management education completion
In progress  ●●●●◯
˙	Maintaining 100% ethical management education completion
˙	Acquiring and reviewing anti-corruption certification
98.2% in 2021
Strengthening internal 
control and risk 
management
˙	Upgrading the record storage period management system
˙	Revising the information security regulations
In progress  ●●●◯◯
Completed   ●●●●●
˙	Conducting third-party anti-corruption due diligence
	
2021/22 NEXEN TIRE ESG Report      13
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

ESG Performance
ESG Response to Customer 
NEXEN TIRE understands and strives to meet customers’ ESG-related requirements. We are implementing the detailed items we have set up for each category, such as acquiring ESG-related certifications, conducting self-assessment and external 
disclosure, joining related organizations and initiatives, and strengthening product competitiveness.
 
Acquired ESG-related Certifications
˙	ISO 14001(Yangsan, Changnyeong, Magok, Qingdao, Europe)
˙	ISO 45001 (Yangsan, Changnyeong, Qingdao, Europe)
˙	IATF 16949 (Yangsan, Changnyeong, Qingdao, Europe)
˙	TISAX (Magok, EP, NETC)
 
Self-assessment and Disclosure
˙	SAQ 4.0 of the NQC-Supplier Assurance Program development
˙	ESG Report publication
˙	Third-party verification of ESG Report
˙	ESG Training to all Employee
˙	LCA (Life Cycle Assessment) system
˙	Effort to achieve RE100
To satisfy customers’ demand for various certifications, NEXEN TIRE has 
acquired the ISO 14001 (environmental management system) certification 
for all plants along with the ISO 45001 certification. We have also acquired 
the IATF 16949 certification, which is a requirement of global customers, for 
all manufacturing plants. We annually collect the requirements designated 
by global customers and promote the necessary improvements based on the 
requirements through a third-party follow-up review. In 2022, our informa-
tion security management system has been strengthened further with our 
acquisition of TISAX (Trusted Information Security Assessment eXchange) cer-
tification, a global information security certification developed by VDA (Ger-
man Association of the Automotive Industry) to assess the information secu-
rity of parts makers, OEMs, and suppliers, etc. that contribute to the global 
automobile production supply chain.
SAQ 4.0 Assessment
For the degree of sustainable management, which has emerged as a 
key customer requirement, NEXEN TIRE assesses all plants using SAQ 
(Self-Assessment Questionnaire) 4.0 of the NQC-Supplier Assurance 
program, the criteria for supply chain assessment in the automotive 
industry. Through continuous improvement, we are obtaining improved 
scores year-over-year. 
ESG Training
To establish ESG management, NEXEN TIRE provides annual ESG training 
to all employees. Considering the manufacturing process of our products, 
the training particularly focuses on the areas of environment and safety. 
Recognizing the importance of ESG management, NEXEN TIRE will contin-
uously expand opportunities for our employees to join in the effort.
Effort to Achieve RE100
To fulfill RE100, NEXEN TIRE purchased the Green Premium for Chang-
yang and Yangsan Plants and completed renewable energy transition 
for 5.86% of total power use. Considering REC purchase and participa-
tion in the PPA for overseas manufacturing plants as well starting next 
year, we aim to achieve RE100 by 2039.
ESG Report Publication
NEXEN TIRE effectively and transparently communicates with stakehold-
ers about the ESG management activities by publishing the ESG Report 
and receiving verification from the third-party.
LCA System*
From 2022, with a goal to meet the continued demand from automotive 
companies and achieve more active eco-friendly management, NEXEN 
TIRE analyzes 12 environmental impact items including global warming, 
resource depletion, and land use for the three tire products manufac-
tured in Korea and overseas throughout their life cycle from pre-man-
ufacturing to manufacturing, distribution, use, and disposal according 
to the ISO 14040 and 14044 by following the Rules for Environmental 
Product Declarations.
*LCA data have been requested by key customers (BMW, Porsche, Hyundai Motor Com-
pany, Kia, etc.). LCA is conducted through the method of CML impact assessment using 
the GaBi operation program.
2021/22 NEXEN TIRE ESG Report      14
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Since 2020, NEXEN TIRE, as a company responsible for the natural rubber 
value chain, has been serving as a member of GPNSR (Global Platform for 
Sustainable Natural Rubber). We are also participating in CDP (Carbon Disclo-
sure Project) Climate Change. In 2022, we joined ETRMA (European Tyre and 
Rubber Manufacturers’ Association) as a member. By joining ETRMA, we are 
striving to understand and respond swiftly to changes in and regulations for 
global tire and rubber brands as well as relevant EU policies and regulations. 
In addition, since April 2022, we have been serving as a member of K-ESG 
Alliance. K-ESG Alliance was launched by the Federation of Korean Industries 
(FKI). FKI members, global enterprises, and startups, etc. are serving as mem-
bers of this ESG-related consultative body. As a member of K-ESG Alliance, 
NEXEN TIRE strives to improve related systems by keeping up with the ESG 
management trend, identifying the difficulties of ESG management in Korea 
and abroad, and making proposals to the government and the National 
Assembly, etc. To meet the requirements of customers such as global auto-
motive companies and consumers for tire replacement service, we are contin-
uously carrying out product development and policy establishment activities.
Sustainable Supply of OE(original equipment) Tires
NEXEN TIRE contributes to the enhancement of R&D compe-
tency as well as the value for a number of automotive compa-
nies by supplying quality OE(original equipment) tires. Having 
successfully completed new OE supply by meeting the strict 
requirements of automotive companies with advanced tech-
nological power, we are increasing our competitiveness in the 
global tire market. 
Securing Performance Optimization Technologies
To enter the premium OE market and develop top-quality products as required by cus-
tomers, NEXEN TIRE is conducting researches to optimize the four key performance 
indicators—fuel efficiency, wet braking, noise, and wear—by securing design tech-
nology and developing new materials. In addition, we are focusing on new-concept 
product development for Electric Vehicle(EV) and quality improvement, such as devel-
oping new patterns, applying new materials, and promoting optimization design, 
through the application of big data technologies to the product development process.
Downstreaming Product Screen
NEXEN TIRE is developing products by ana-
lyzing the needs of customers and markets in 
each global region and continuously invest-
ing in product screen with the goal of quan-
titative market analysis and performance 
improvement. In line with the further seg-
mented customer requirements and target 
markets along with the diversified vehicle 
models, we are creating specialized products 
to meet customer needs more successfully.
Market  
Segmentation
Global
N Series
NF Primus QX
For the Chinese market
NF Primus V
For the Central and South 
American markets
NF Primus AS T1
For Korean franchises
Performance  
Segmentation
Pattern(Present)
NF Sport
Ultra-high performance
NF Primus
High performance
NF Supreme
Improved riding and mileage
NF SU1
Sport handling
Pattern(Before)
NF AU5
Comport riding
 
Joining Related Organizations and Initiatives
˙	GPSNR (2020)
˙	CDP Climate (2013)
˙	ETRMA (2022)
˙	K-ESG Alliance (2022)
 
Strengthening Product Competitiveness
˙	Downstream the product line-up
˙	Securing performance optimization technologies
˙	Sustainable supply of OE(original equipment) tires
ESG Response to Customer 
2021/22 NEXEN TIRE ESG Report      15
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Double Materiality Assessment 
Double materiality
Introducing the Double Materiality Assessment 
With the increasing demand for ESG information disclosure from stakeholders, 
NEXEN TIRE’s materiality assessment in 2022 was conducted with the dou-
ble materiality concept, introduced by the GRI(Global Reporting Initiative) and 
the EU. The concept of double materiality, which was officially proposed in 
the Guidelines for Non-financial Reporting* of the European Union (EU) in 
June 2019, recommends that companies make materiality decisions from two 
perspectives. 
*Guidelines on Non-financial Reporting: Supplement on Reporting Climate-related Information 
NEXEN TIRE dedicates utmost effort to creating value for the company and stake-
holders by establishing strategies based on the analysis of mutual connection 
among social and environmental and financial impacts.
We will strengthen the transparent communication with stakeholders by ana-
lyzing the level of impact awareness of each stakeholder group identified 
through double materiality assessment, reviewing risk factors in relation to 
the material issues derived, establishing directivity for response strategies, 
and disclosing the relevance to the mid- to long-term ESG goals.
Impact  
on the company
Financial impact 
(financial materiality)
Impact of external  
ESG-related factors on the  
company’s financial condition
Impact exerted  
by the company
Social and environmental 
impacts (impact materiality)
Impact of NEXT TIRE’s  
management activities on  
society and environment
Employees
Shareholders  
and investors
General  
consumers
Government 
agencies and 
NGOs
Customers
Suppliers
Local communities
NEXEN TIRE’s Key Stakeholders
Sustainability Issues
Social and Environmental Impacts 
In relation to the sustainability issue, what impact does the com-
pany have on the society and environment (inside-out approach)? 
Financial Impact 
What impact does the sustainability issue have on the company’s 
financial conditions and performances, etc. (outside-in approach)? 
Environ-
mental
Others
Ethics
Climate 
change
Labor-
management 
relationship 
Human 
rights
Company
Social
Environment
Outside-In
Inside-Out
Concept of Double Materiality
2021/22 NEXEN TIRE ESG Report      16
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

The rankings of sustainability issues, the dis-
cussion with ESG manager, and the feedback 
received by stakeholders were considered in 
deriving utmost wielding material issues that 
cause the significant impact on NEXEN TIRE.
A total of 25 issues were identified through 
external (global initiatives, materiality assess-
ment issues in the industry) and internal (mate-
riality assessment issues in the previous year, 
items discussed by the BOD, items mentioned 
in the CEO’s message, and interview with the 
associated managers) environmental analysis.
The identified sustainability issues were ranked based on the results of media, international standards and inter-
nal data analysis (items discussed by the BOD and mentioned in the CEO’s message), social and environmental 
impact assessment, and financial impact assessment.
Double Materiality Assessment Process
NEXEN TIRE’s materiality assessment was conducted in three steps. 
	 Analysis on double materiality assessment 
results 
•	 Comparing awareness of social, 
environmental, and financial impacts by 
stakeholder group
	 Media analysis
•	 Reflecting the number of issues derived through  
media analysis  
- 1,913 articles (Jan. 1 - Dec. 31, 2021) 
	 Analysis of international standards 
•	 Reflecting the frequency of item covered by various 
global guidelines, standards, and indices
	 - GRI Standard, SASB, TCFD, MSCI, EcoVadis, ISO 
26000, UNGC, UN SDGs
	 Financial impact assessment
•	 Surveying internal and external stakeholders on  
financial impact
	 - 50 respondents (over ten days from May 31 to  
Jun. 9, 2022)
	 - Employees and ESG manager, etc.
Step 1. Identifying sustainability issues
Step 2. Ranking sustainability issues
Step 3. Selecting material issues
	 External environmental analysis
•	 Reflecting the global disclosure initiatives 
category  
- SASB, TCFD, GRI
•	 Reflecting materiality assessment issues in the 
industry
	 Internal environmental analysis
•	 Analyzing 2020 NEXEN TIRE’s materiality 
issues
•	 Analyzing the BOD topics
•	 Analyzing CEO’s message
•	 Interviewing ESG manager (May 19, 2022) 
	 Item review by the BOD 
•	 Reviewing items through the BOD 
	 - Reflection of item reported to and approved  
by the BOD 
	 Social and environmental impact assessment
•	 Surveying internal and external stakeholders on  
social and environmental impacts
	 - 69 respondents (over ten days from May 31 to  
Jun. 9, 2022)
	 - Employees, partners, local communities, etc.
	 CEO’s message 
•	 Reviewing and reflecting CEO’s message
	 Discussion with internal ESG manager 
•	 Discussing the importance of each issue 
considering feedbacks from the ESG manager 
and stakeholders
2021/22 NEXEN TIRE ESG Report      17
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

2021 Materiality Assessment Results
As a result of the materiality assessment, 10 out of 25 sustainability issues were selected as material issues for NEXEN TIRE in 2021. For the materiality assessment of 2021, the results by stakeholder group, along with the overall rankings, were 
comparatively analyzed. Therefore, the assessment results indicate differences in the level of awareness of the impact resulting from ESG issues by stakeholder group. In establishing and promoting strategies for sustainability response, NEXEN 
TIRE will continue strengthening communication with stakeholders.
Rank 
Area
Issue
Social and 
environmental impact
Financial impact
Employees
Partners
Local communities
External experts
❶
Social
Product quality
●
●
●
●
●
●
❷
Social
Safe work environment
●
●
●
●
●
●
❸
Environmental
Climate change response and reduction of carbon emissions
●
●
●
●
●
●
❹
Governance
Integrated risk management
●
●
●
●
●
●
❺
Economic
Technological innovation and future business
●
●
●
●
●
●
❻
Social
Customer safety
●
●
●
●
●
●
❼
Social
Supply chain management
●
●
●
●
●
●
❽
Environmental
Energy management
●
●
●
●
●
●
❾
Environmental
Management of water resources, hazardous substances, and wastes
●
●
●
●
●
●
❿
Governance
Compliance and ethical management
●
●
●
●
●
●
High ●     Medium ●     Low ●
25 Sustainability Issues
① Technological innovation and future business
② Value creation and distribution  
(economic activation)
③ Energy management
④ Climate change response and reduction of 
carbon emissions
⑤ Management of water resources, hazardous 
substances, and wastes
⑥ Circular economy
⑦ Eco-friendliness and environmental impact 
of products
⑧ Biodiversity protection
⑨ Safe work environment
⑩ Employees’ wellbeing and fair HR system
⑪ Talent fostering and recruitment
⑫ Supply chain management
⑬ Diversity and human rights
⑭ Raw material procurement
⑮ Raw material supply
⑯ Social contribution
⑰ Stakeholder communication
⑱ Customer safety
⑲ Product quality
⑳ Marketing and branding
㉑ Information security 
㉒ Labor-management relationship
㉓ Sound BOD
㉔ Integrated risk management
㉕ Compliance and ethical management 
2021/22 NEXEN TIRE ESG Report      18
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Material Issues of NEXEN TIRE in 2021
Ten selected material issues were analyzed from the perspectives of social and environmental impact, and financial impact.
Material Issue 1. 
Product quality
Maintaining and improving product and service quality is a key issue in the manufac-
turing industry and for NEXEN TIRE. With its high-quality and eco-friendly products, we 
will guarantee customers’ safety and lessen environmental impact of our business. As a 
result, we will solidify the reliability of the NEXEN TIRE brand and minimize financial risks.
Material Issue 2.  
Safe work  
environment
With the importance of occupational health and safety increasing, NEXEN TIRE strives to 
fulfill social responsibility by providing a safe workplace to employees.
Material Issue 3. 
Climate change 
response and 
reduction of  
carbon emissions
NEXEN TIRE is committed to implement the corporate environmental responsibility by 
developing mid to long-term carbon neutrality roadmap in response to the global cli-
mate change. We have also established a risk management process in order to control 
corporate risks that can occur due to the abnormal climate.
Material Issue 4. 
Integrated risk 
management
To NEXEN TIRE, managing financial and non-financial risks according to the rapid 
social and environmental changes as of late is very important. While identifying risks in 
advance through the establishment of an integrated risk management system, we are 
constantly monitoring, reporting, and responding to the risks.
Material Issue 5. 
Technological 
innovation and 
future business
With the expectation that future mobility market is to be driven by EV, NEXEN TIRE, as 
a tire company, will reinvent products through technological development and expand 
business areas by securing a sustainable business structure. In addition, by developing 
high-quality, eco-friendly products through continuous technological innovation, we 
will fulfill our social and environmental responsibilities at the same time while enhanc-
ing customer satisfaction.
Material Issue 6.  
Customer safety
Tires are closely associated with the safety of the driver, and any accident involving a tire 
has the risk of leading to a major accident. Therefore, NEXEN TIRE is dedicating its utmost 
effort to ensure customer safety through continued market monitoring even after the 
product launch along with strict quality verification. In doing so, we will fulfill our social 
responsibility of protecting the safety of customers and enhancing their satisfaction.
Material Issue 7. 
Supply chain  
management
EU is promoting the legislation of the Supply Chain Due Diligence Act, which will be 
enforced in 2024. In line with the global trend, NEXEN TIRE is supporting  the spread 
of ESG management among suppliers by conducting responsible supply chain man-
agement. By doing so, we aim to contribute to creating a socially virtuous cycle. 
Material Issue 8. 
Energy  
management
In keeping with the global trend of enhancing the efficiency of energy consump-
tion and increasing renewable energy use such as RE 100 and Net-Zero, NEXEN TIRE 
established a detailed roadmap, striving to become an eco-friendly company.
Material Issue 9. 
Management of 
water resources, 
hazardous  
substances,  
and wastes
In addition to climate change, NEXEN TIRE also pays attention to other environmental 
issues. In particular, we endeavor to manage water resources efficiently, control chem-
icals that are harmful to human health and environment, and minimize the environ-
mental impact of waste by adopting an appropriate waste treatment method.
Material Issue 10. 
Compliance  
and ethical  
management
As a global business operator, NEXEN TIRE is exposed to domestic and international 
risks concerning product liability, privacy protection, fair trade, corruption and bribery. 
These risks can impede the business activities of a company and wield a negative impact 
on its image. Therefore, NEXEN TIRE pays continuous attention to controlling the risks.
2021/22 NEXEN TIRE ESG Report      19
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Management Approach
For the 10 material issues derived through materiality assessment, NEXEN TIRE analyzes the ESG risk factors and conducts systematic management based on management strategies.
Rank
Issue
Definition
Risk Factors
NEXEN TIRE’s Management Strategy
 Performance  
Indicators
Performance in 2021/22
Page
Reporting 
Boundaries
1
Product  
quality
Activities to maintain and improve the 
company’s products and services
·  Maintaining a relationship of trust with customers
·  Strengthening market competitiveness
·  Meeting the needs of stakeholders
·  Quality risk
NEXEN TIRE preemptively grasps customers’ needs to 
provide products that meet them, and it is strengthen-
ing product competency and quality based on contin-
uous investment in R&D.
·  Quality issue 
monitoring
·  Conducting internal quality review 
and receiving third-party certification
25-26, 
60-62
Customers, 
shareholders
2
Safe work 
environment
Activities to continuously improve  
systems and work environment to  
provide safe workplace
·  Increased corporate responsibility for safety 
management according to the enforcement of the 
Act on Punishments, etc. of Serious Accidents and 
strengthening of the Occupational Safety and Health Act
·  Increasing interest of employees in safety
NEXEN TIRE strengthened safety management by 
establishing an organization in charge of occupa-
tional health and safety management. Our effort also 
includes the safety education of employees and sup-
pliers and operation of the safety management sys-
tem across all worksites.
·  Safety education 
completion rate
·  On-site safety 
inspection
·  Establishing an organization  
in charge of SHE
·  Providing occupational health and 
safety education
·  Conducting supplier risk assessment
43-46
Employees, 
local 
communities
3
Climate change 
response and 
reduction 
of carbon 
emissions
Activities to establish climate change 
risk management and response  
system to reduce the greenhouse gas 
emission
·  Increasing interest in global climate change issues
·  Increasing needs of external stakeholders
·  Strengthened regional regulations for air pollution
Every year, NEXEN TIRE reviews greenhouse gas 
reduction plans such as investment in equipment, 
facility improvement, and introduction of new tech-
nologies. We also constantly monitor for air pollut-
ants and conduct reduction activities as applicable.
·  Scope 1, 2 emissions
·  Product LCA
·  Fulfillment of 
particulate matter 
reduction agreement
·  Adopting a product LCA system
·  Conducting energy audit in European 
plants
·  Establishing the RE100 roadmap
·  Signing the Green Premium contract
·  Designated as a company with 
excellent performance in air 
environment improvement
36-39
Shareholders, 
government, 
local 
communities
4
Integrated risk 
management
Activities to identify financial and 
non-financial risks which may have 
potential impact on company, and 
build a company-wide risk manage-
ment and response system
·  Strengthened ESG assessment criteria
·  Strengthened global regulations for statutory 
violations
·  Statutory violation directly leading to damage to 
corporate reputation and reliability
Based on a company-wide risk management process, 
NEXEN TIRE conducts pre- and post-inspections on 
financial and non-financial risks. We also monitor risks 
frequently and review the key issues identified, which 
leads us to establish necessary response system..
·  Key risk indicators
·  Process Safety 
Management 
(PSM*) System
·  Conducting monthly risk monitoring 
and reporting
·  Obtaining S grade for Process Safety 
Management
82-84
Shareholders, 
employees
5
Technological 
innovation and 
future business
Activities to secure sustainable  
business structure and further its  
business sector through product  
innovation and investment expansion 
in physical and human resources
·  Need to secure market competitiveness according to 
environmental change
·  Meeting the needs of stakeholders
To discover new growth engine, NEXEN TIRE estab-
lished a corporate venture capital, and is investing in 
startups. While expanding the basic R&D personnel we 
focus on AI and big data research through industry - 
academic projects based on cooperative relationships.
·  R&D investment cost
·  Advancing the product life cycle 
management (PLM**) system
·  Developing the tire performance 
prediction system
·  Conducting R&D for smart tire sensor 
technology
24-27
Customers, 
shareholders
Management Approach
*PSM(Process Safety Management)
**PLM(Product Life-cycle Management System) 
2021/22 NEXEN TIRE ESG Report      20
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Rank
Issue
Definition
Risk Factors
NEXEN TIRE’s Management Strategy
 Performance  
Indicators
Performance in 2021/22
Page
Reporting 
Boundaries
6
Customer safety
Activities to enhance the product perfor-
mance or develop designs (including activ-
ities raising customer safety awareness) 
considering the safety of final consumer(-
customer)
·  Empowering market competitiveness
·  Customer satisfaction
NEXEN TIRE is restructuring the R&D implementation system for 
product performance improvement and design development 
considering customer safety, such as driving safety. We are also 
conducting related activities including product performance ver-
ification and research for tire development through industry-aca-
demic cooperation. 
·  Percentage of 
eco-friendly 
products
·  Restructuring the R&D organization to center 
on performance
·  Researching on product performance 
improvement
·  Investing in future-concept tire
25-26
Customers
7
Supply chain 
management
Activities to co-exist with partners, and to 
support the dispersion of ESG manage-
ment by managing the supply chain 
·  Likelihood of ESG risk occurrence
·  Increasing sanctions and initiatives in relation 
to the supply chain
While striving to create a shared growth culture with suppliers, 
NEXEN TIRE is committed to building a sustainable partnership 
in the long term. We strengthen the competitiveness of suppli-
ers through regular management from the stage of selection in 
order to create a sustainable supply chain. We are also dedicated 
to establish a healthy industrial ecosystem.
·  Supplier ESG 
assessment
·  Restructuring the supplier purchase policy·
·  Improving the supplier ESG assessment items
63-66
Suppliers
8
Energy 
management
Activities to expand the use of renewable 
energy and to reduce the amount or to 
improve the efficiency of energy used cor-
porate wide
·  Strengthened environmental regulatory 
criteria
·  Energy loss
NEXEN TIRE operates photovoltaic power generation facilities as 
an effort to expand renewable energy use. In addition, in order 
to reduce energy consumption, we are implementing efficient 
energy resource management strategies such as improving the 
system and applying high-efficiency energy-saving equipment. 
·  Energy 
consumption
·  Tire energy 
efficiency 
rating system
·  Developing performance and fuel efficiency 
prediction technologies through industry-
academic cooperation
·   Operating photovoltaic power generation 
facilities
·  Operating electric forklifts in European plants
31, 34, 
38
Government, 
local 
communities
9
Management of 
water resources, 
hazardous 
substances,  
and wastes
Activities to minimize the impact on the 
environment by efficiently managing water 
resources, hazardous chemicals that are 
harmful to human health and environment 
according to the standard, and managing 
the waste disposal appropriately
·  Increasing social interest in environmental 
protection
·  Need to reinforce employees’ consensus for 
environmental protection
·  Guaranteeing local residents’ right to live in a 
clean environment
Under the hazardous chemical management system, NEXEN 
TIRE conducts activities to control the hazardous chemicals 
included in the raw materials and tires. At the same time, we are 
dedicating effort to water quality management and process 
improvement in order to minimize impact on the water resource 
environment.
·  Hazardous 
substances 
training 
completion 
rate
·  Advancing the regulatory substances 
management program
·  Conducting a groundwater environmental 
impact assessment
32, 46
Local 
communities, 
customers
10
Compliance 
and ethical 
management
Activities to comply with domestic and for-
eign laws and regulations and to practice 
transparent and fair ethical management 
including anti-bribery, anti-corruption
·  Strengthened compliance-related regulations 
in Korea and abroad
·  Increasing financial/non-financial risks 
resulting from statutory violations
NEXEN TIRE declared ethical management and appointed 
the compliance officer for inspecting fulfillment of the compli-
ance criteria. Moreover, we provide regular ethics education 
to employees in order to strengthen compliance and ethical 
management.
·  Ethics 
education 
completion 
rate
·  Ethics-
related report 
handling rate
·  Providing ethics education
·  Conducting ethical management assessment 
and providing education
·  Conducting an anti-corruption examination
80-81
Government, 
shareholders, 
employees
2021/22 NEXEN TIRE ESG Report      21
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Stakeholder Communications
Key  
channels
· Consultative bodies with local communities
· NGOs (Korean Red Cross, Beautiful Store)
Areas of 
interest
· Social contribution considering the industrial 
characteristics
· Meeting socioeconomic requirements
· Climate change response
Key  
channels
· Education to suppliers
· Regular supplier monitoring
· Market survey by visiting agencies
Areas of 
interest
· Establishing a procurement policy for the sus-
tainable growth of agencies
· Preparing support measures to overcome the 
COVID-19 risk
Key  
channels
· Customer inquiry on the website
· Operating a customer satisfaction center
Areas of 
interest
· Providing products and services according to 
consumer needs
Key  
channels
· General shareholders’ meeting
· Investor relations (IR)
Areas of 
interest
· Management performance
· Governance
· Ethical management
· Compliance
Key  
channels
· Participating in domestic and overseas  
exhibitions and fairs
· Participating in global initiatives
Areas of 
interest
· Product innovation (product quality)
· Acquiring international certifications and meet-
ing the requirements
· Human rights and labor
· Climate change response
Key  
channels
· Policy talk
· Participating in domestic and global initiatives
Areas of 
interest
· Meeting socioeconomic requirements
· Climate change response 
· Fair trade
· Compliance
Local 
communities
Employees
Suppliers
Shareholders
and investors
Government  
agencies and  
NGOs
General 
consumers
Customers
Key  
channels
· Questionnaire survey
· Internal proposal system (N’ack-a-thon)
· NEMO
· Operating a reporting center
Areas of 
interest
· Organizational competency, organizational 
immersion, leadership
· Fair HR system (equality, rationality)
· Safe work environment, employee health
· Human rights protection, welfare benefits, edu-
cation for competency building
2021/22 NEXEN TIRE ESG Report      22
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

24	
NEXEN TIRE’s Economic Performances  
24	
R&D (Technological Innovation)
26	
Drivers of NEXEN’s Growth  
27	
Digital Transformation
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Improving Financial Stability   
NEXEN TIRE’s total sales in 2021 stood at KRW 2.0794 trillion, a 22% increase 
year on year. Despite the issue of semiconductor shortage, our OE sales con-
tinuously increased as a result of an increase in the supply volume of the exist-
ing SUV models and volume models. 
Due to the rapid rise in ocean freight and increased raw material price, how-
ever, our operating profit decreased by approximately KRW 3.5 billion com-
pared to the previous year. In response to this, we are solidifying the basis 
for improving profitability such as sales mix. Moving forward, NEXEN TIRE 
will dedicate its best effort to strengthening corporate competitiveness by 
responding to the rapidly changing external environment including oil price 
rise as a result of the war in Ukraine.
NEXEN TIRE is strengthening the core performance requirements of tires–
such as fuel efficiency, contact surface, stiffness, noise, and wear–in line with 
the changes in the automotive market trend of electrification, high output, 
and high load. To this end, AI and big data technologies are applied to the 
product development process in order to develop new patterns, apply new 
materials, and optimize design. In addition, as the transition from internal 
combustion engine vehicles to EV is accelerating, we are improving the prod-
uct development process in order to ensure more accurate performance veri-
fication and develop products that meet customer needs.
Advancing the R&D Implementation System 
NEXEN TIRE restructured the R&D organization with focus on performance in 
order to develop products that satisfy customers and strengthen market com-
petitiveness. We are securing future-oriented design technologies by expand-
ing basic research human resources to study and analyze the factors affecting 
product performance and improving the organization for the structure field 
and strengthening its functions. In addition, research activities to improve the 
core tire performances further are being conducted through the expansion of 
industry-academic research and application of the research outcomes to new 
material and technology development. The new R&D organization serves as 
the foundation for our advancement to a global tire company equipped with 
differentiated products, technologies, and performance competitiveness. 
NEXEN TIRE’s Economic  
Performances
R&D 
(Technological Innovation)
R&D Organization System
(as of Apr. 2022)
Central Research Institute (CTO)
CEO
Research Planning Subdivision
Research Division
Development Division
Ratio of R&D Investment to Annual Sales*
Sales Trend
Operating Profit Trend
2020
5.4%
2020 
KRW  
1.6981 
trillion
▼ 1.3%p
▲ 22%
(▲ KRW  
381.3 billion)
▼ 89%
(▼ KRW 35 billion)
2021
4.1%
2021
KRW 2.0794 trillion
2021 
KRW 4.4 billion
2020 
KRW 39.4 billion
*Internal trade removed
*Before the deduction of government subsidies
Total sales 
KRW 2.0794 trillion* 
(100%)
Sales from the tire sector 
KRW 2.0753 trillion* 
(98.1%) 
Sales from the non-tire 
sector 
KRW 4.2 billion* 
(1.9%)
NEXEN TIRE’s Sales Status* 
Category
Unit
2019
2020
2021
Total sales
KRW hundred million
20,223.5
16,981.2
20,794.1
By
business 
sector 
Tire
KRW hundred million
29,471.8
24,305.5
29,011.5
Non-tire
KRW hundred million
249.2
210.5
205.9
(Internal trade 
removed)
KRW hundred million
(9,497.5)
(7,534.8)
(8,423.3)
*Based on consolidated financial statements
2021/22 NEXEN TIRE ESG Report      24
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

One & Open R&D
NEXEN TIRE promotes One & Open R&D to create a creative culture that leads 
change and innovation. “One” refers to our focus on a unified goal, and “Open” 
refers to communication across our digital and global collaboration systems. 
R&D for Smart Tire Technology 
Joint Research for Smart Tire Sensor Technologies with a Silicon Valley-
based AI Company     In preparation for the near future where self-driving 
vehicles will lead the market, NEXEN TIRE is developing the THMS*, a smart 
tire sensor technology to self-diagnose tire conditions and either notify 
the driver directly or transmit the information to the central control system 
through the Cloud. 
In this regard, our Central Research Institute in Korea and the US R&D Center 
have been working together with REALITY AI, a Silicon Valley-based AI com-
pany, to conduct research on topics including the big data-based machine 
learning algorithm. 
*THMS: Tire Health Monitoring System 
Research for Product Performance Improvement 
NEXEN TIRE is conducting researches to optimize the four key tire perfor-
mance indicators—fuel efficiency, wet braking, noise, and wear—by secur-
ing design technology and developing new materials. In addition, to develop 
new-concept products for EV, we are focusing on product performance 
improvement—such as developing new patterns, applying new materials, 
and promoting optimization design—through the application of big data 
technologies to the product development process. 
Strengthening Synergy for Global R&D Competency     
NEXEN TIRE is operating four global manufacturing plants and four global 
R&D centers. Through our global R&D network consisting of the Central 
Research Institute in Korea and global R&D centers in the US, Germany, and 
China, we develop the best products by analyzing different road conditions 
and driving styles in each region. 
Research results for each region are shared across the R&D network, which 
contributes to the development of future innovative products reflecting  
customer needs. An evaluation office was opened in the Idiada Test Center to 
verify product performance, enhancing our capacity to set the right direction 
for development. In addition, the global R&D network contributes to improv-
ing our R&D capabilities by acquiring various kinds of expertise in each region 
and producing synergy among the regions.
US
Germany
Spain
Czech Republic
Korea
China
R&D Global Network
US Technical Center 
Richfield, Ohio, U.S
US R&D Center 
As the first building in the newly developed com-
plex in Richfield, Ohio, NEXEN TIRE’s R&D Center 
is strengthening its position in the US market by 
developing OE and RE tires that reflect the sourcing 
requirement of local automotive manufacturing com-
panies and customers. 
EU Technical Center 
Kelkheim, Germany
Europe Sales and R&D Center 
In September 2018, NEXEN TIRE integrated and transferred 
Europe R&D center and sales and marketing departments, which 
was separately located in Germany, into a newly constructed build-
ing. The new R&D Center located in Kelkheim serves as an outpost 
to target the European market. 
KOREA  
Central R&D Center 
Seoul, Korea
THE NEXEN univerCITY  
(Central Research Institute) 
In April 2019, the Magok Central Research Insti-
tute, also known as THE NEXEN univerCITY, was 
constructed at Seoul Magok Business Complex 
with a total floor area of 57,146m2 and ten-floors, 
consisting two floors underground and eight 
floors aboveground. The Magok Central Research 
Institute established the basis for enhancing 
next-generation technology through various 
research facilities including optimized OE/RE 
product design, AI, and virtual tire technology. 
IDIADA PG(Spain)
EP R&D Branch Center 
(Czech Republic)
CHINA Technical Center 
Qingdao, China
China R&D Center 
NEXEN TIRE’s Chinese R&D Center was established to enter the 
Chinese market, the largest consumer market in the world. It is 
playing the role of developing not only tires optimized for local 
conditions but also strategic OE and RE tire products for the over-
seas market. In addition, it is contributing to stabilizing the quality 
of finished products while improving production efficiency. 
2021/22 NEXEN TIRE ESG Report      25
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Research for Future-Concept Tires through Industry-Academic 
Cooperation 
In October 2021, NEXEN TIRE unveiled the future-concept tires developed 
through industry-academic cooperation with the Korea Institute of Design 
Promotion, a subsidiary public organization of the Ministry of Trade, Indus-
try, and Energy. The three future-concept tires—Conqueror, PUREBACK, and 
nGRIP—were manufactured through collaboration with KDM+ (Korea Design 
Membership Plus) of the Korea Institute of Design Promotion.
Individually, future-concept tires are a transform tire designed specially for 
icy roads in winter, an eco-friendly tire to prevent air pollution caused by 
micro-plastic debris generated due to tire wear, and a tire with improved grip 
and driving stability achieved with a special pattern designed after lizard foot.  
NEXEN TIRE will lead the future automotive industry trend by discovering 
creative ideas through the continuous promotion of industry-academic and 
industrial joint research projects.
NEXEN TIRE’s Future-Concept Tires
Identifying new businesses across the entire group
Macroscopic & lasting potential 
NEXEN-specific screening 
Entry barriers for new businesses 
Growth potential & profitability 
1st screening 
2nd screening 
3rd screening 
4th screening 
Global business areas 
(referring to various standard industrial  
classifications including KSIC and ISIC*)
NEXEN 
Fit
Supply/Demand, 
policy changes
Global market size 
and CAGR
Future-oriented, 
mega trend analysis
*KSIC: Korean Standard Industrial Classification 
ISIC: International Standard Industry Classification
Drivers of NEXEN’s Growth
Screening System to Discover New Businesses
Discovering New Business Items 
Screening System to Discover New Businesses 
NEXEN TIRE selected 15 promising industries in 7 areas by considering the future 
mega trend, macroscopic environmental changes, industry dynamics, etc. and 
established entry models suitable for each industrial sector. In detail, we are con-
sidering direct entry into each industrial sector (greenfield investment), acquisi-
tion of key companies (M&A), affiliation with leading companies (joint venture), 
and investment in companies with growth potentials (venture investment).
Based on each entry model, we are developing detailed business models and 
conducting a feasibility study for entry. At the same time, for M&A opportuni-
ties, acquisition feasibility is being examined for each case. The details will be 
shared transparently both internally and externally through public announce-
ment and IR activities following completion of internal review on new business 
entry and appropriate decision-making process such as approval by the BOD.
Venture Capital Operation
In December 2021, Next Century Ventures, a 
corporate venture capital (CVC) established 
by NEXEN TIRE, invested in the US Silicon Val-
ley-based UAM (urban air mobility) startup, ANRA 
Technologies. ANRA Technologies is a company 
developing uncrewed aircraft system traffic man-
agement (UTM) technologies in the UAM field. It has been implementing proj-
ects with the National Aeronautics and Space Administration (NASA) and the 
Federal Aviation Administration (FAA) of the US as well as the European Union 
Aviation Safety Agency (EASA). Next Century Ventures pays close attention to 
technologies and businesses that will be game changers in the mobility field. In 
particular, the company focuses its competencies on discovering virtuous tech-
nological power to bring about positive changes for mankind. In addition to dis-
covering and investing in startups, Next Century Ventures provides support to 
assist in the growth of such businesses. It will continue performing as a CVC to 
lead startup discovery, investment, and fostering.
2021/22 NEXEN TIRE ESG Report      26
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

NEPS Establishment and Advancement 
NEXEN TIRE established the Product Lifecycle Management (PLM)* system 
NEPS (NEXEN Tire Product Life Cycle Management System) and strengthened 
data accuracy and relevance by implementing an ongoing advancement project. 
We secured the data infrastructure for big data and AI technology application 
by connecting technical data for design, analysis, specifications, and assessment 
and establishing a global integrated Laboratory Automation System (LAS)*. 
In addition, we are making efforts to expand the corporate digital transforma-
tion by managing all R&D projects through the Project Management System 
(PMS)* within the NEPS. 
*PLM (Product Life-cycle Management): Process to manage the entire process from product 
design to final production 
   LAS (Laboratory Automation System): Program for automatically analyzing test data from a 
test instrument and delivering it to another system or software 
   PMS (Project Management System): Program to manage the quantitative outcome and prog-
ress indicators of a project 
Developing the Tire Performance Prediction System 
In April 2022, NEXEN TIRE developed a tire performance prediction system 
using AI technology through an industry-academic cooperative study with 
Korea University and Hanyang University. This system is expected to improve 
pre-manufacturing efficiency, such as reducing the number of prototypes man-
ufactured and development period, by accurately and swiftly predicting key per-
formance indicators (fuel efficiency, noise, steering, etc.) considered in the stage 
of tire development through the application of machine learning technology. 
Based on the tire performance prediction system, we have completed the 
development of the “virtual brain loop system,” a tire development system, 
by using a performance prediction technique based on the FEA*, a genetic 
algorithm, and our independently developed virtual design technology. This 
system will be applied to product development. Moving forward, we will pro-
mote continuous R&D investment for the virtual product development system 
and industry-academic joint research to foster talents and improve our R&D 
competencies. 
*FEA (Finite Element Analysis): Technique to analyze product performance through virtual 3D 
tire modeling and calculations in the computer using tire shape and material properties
Digital Culture Innovation in the Workspace 
With the opportunities for internal communication decreasing as a result of 
the prolonged COVID-19, NEXEN TIRE prepared an internal communication 
space by installing and operating various entertainment facilities (arcade 
machines, darts boards, billiards tables, etc.) to boost employees’ morale. In 
addition, to resolve employees’ inconveniences within the workplace, a VOC 
reception platform was opened through Kakao Channel to provide one-stop 
service, from receiving complaints to handling issues, to preserve the welfare 
of our employees. 
Digital Transformation
In-house  
Entertainment Space
VOC in Kakao Channel
Virtual Brain Loop System, a Tire Development System
NEPS Operation System
Document management
Optimal design using 
genetic algorithm
Virtual tire  
performance using AI
Virtual tire performance  
prediction system using FEA
Data collection for AI 
learning
Product planning  
management
Modification history  
management
LAS
Project management
Product information  
management
Spec. and test analysis
Collaboration  
management
Spec. management
Test evaluation
MIDAS
Pre-performance  
verification and  
prediction
New Idea
Concept
Design
Prediction
by AI
Detail 
Design
by GA
Virtual 
Test 
by FEA
Final Tire
Test
2021/22 NEXEN TIRE ESG Report      27
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

29	
Environmental Management System
30	
R&D, Raw Material
32	
Manufacture
33	
Use
35	
Recycling & Disposal
36	
Response to Climate Change
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

NEXEN TIRE’s Environmental Management 
Environmental Management System
By operating a company-wide environmental management system, NEXEN 
TIRE unified the environmental management standard documents of domes-
tic and overseas plants in 2021 and consequently established a systematic, 
unified process. Every year, we develop and implement environmental risk 
reduction measures through risk and opportunity assessment. In our Chi-
nese plant, ecological environmental and safety training, such as standardiza-
tion of hazardous waste handling and emergency response to environmental 
accidents, is provided once a year to all employees. 
Environmental Training 
NEXEN TIRE provides new technical employees with training on the compa-
ny’s emission facilities, emission prevention facility management status, and 
waste treatment-related processes. We also provide subcontractors with 
training twice a year on the treatment of wastewater and wastes that can be 
generated during operations. In addition, since 2020, NEXEN TIRE Europe has 
been participating in a project to provide environmental training and improve 
and protect the environment in Žatec and nearby areas of Czech Republic.  
Environmental Management Plan 
In 2021, NEXEN TIRE derived the strategic tasks for internalizing the environ-
mental management system, established a strategy promotion roadmap, 
and developed goals by stage. To promote eco-friendly management, we will 
continue establishing environmental management policies covering all areas 
from reduction of greenhouse gas emissions, energy consumption, water 
use, and waste generation to climate change response, recycling, raw mate-
rial management, biodiversity protection, and regional pollution reduction. 
Environmental  
Management System
ISO 14001 Certification
(Yangsan Plant/Magok THE 
NEXEN univerCITY, Chang-
nyeong Plant, Europe Plant,  
Qingdao Plant)
Managing environmental goals and establishing the organization in charge
•  Creating the basis for eco-friendly management promotion by developing envi-
ronmental management policies : Covering all areas from reduction of green-
house gas emissions, energy consumption, water use, and waste generation to 
climate change response, recycling, raw material management, biodiversity pro-
tection, and regional pollution reduction
•  Setting up an environmental management control tower to strengthen exper-
tise, clarifying R&R, and managing the environmental management performance
Managing the environmental performance management
•  Establishing a company-wide environmental performance management pro-
cess, developing short-, mid-, and long-term environmental goals and detailed 
promotional plans, and disclosing the implementation results
•  Implementing roadmap-based tasks to promote environmental management
•  GHG emissions, energy, water, waste, air, biodiversity
•  Conducting LCA, reviewing the climate change response
R&D and raw 
materials
•  Establishing a chemical substance management system
•  Conducting R&D of eco-friendly materials
•  Developing energy efficiency improvement technologies
•  Conducting R&D of tire fuel efficiency improvement
Manufacturing
•  Managing the concentration of air pollutant emissions, installing 
pollutant reduction devices
•  Saving energy by optimizing the curing time
•  Reducing water consumption and managing the concentration 
of contaminants in wastewater
•  Establishing targets to reduce waste generation in the 
manufacturing process, continuously monitoring waste 
treatment companies
Use, recycling, 
and disposal
•  Reducing GHG emissions by selling energy-efficient products 
including N’blue S
•  Managing recycling targets for waste tires and complying with 
the mandatory used tire recycling plans, designated by the 
Ministry of Environment
2025~ 
Long-term
2023~2024
Mid-term
~2022
Short-term
Develop the environmental 
policy and goal
Expand renewable  
energy use  
(RE100 implementation)
Advance the VOC 
processing technology
Establish an environmental 
management organization 
(the establishment of ESG 
organization is promoted at 
the strategy committee level)
Conduct environmental 
impact reduction activities 
such as water pollution 
prevention activity 
and hazardous waste 
reduction program
Use of waste energy
Conduct biodiversity 
protection activities
Introduce the LCA (Life Cycle 
Assessment) system
Establish a climate 
change response policy
Develop a climate change 
response process
Environmental training completion status
Category
Unit
2019
2020
2021
Target employees*
Persons
36
11
69
Employees who  
completed training**
Persons
36
11
69
Training completion rate
%
100
100
100
*Subject to new technical employees
**Based on domestic worksites
2021/22 NEXEN TIRE ESG Report      29
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

R&D of Eco-friendly Materials 
NEXEN TIRE is implementing the mid- to long-term plans it has established 
to develop and apply eco-friendly materials with the goal of securing the sus-
tainability of tire materials and reducing the use of petroleum resources. Eco-
friendly materials refer to recycled and renewable raw materials. We assess 
raw materials based on our mid- to long-term plans. 
As of 2022, we are assessing over ten types of reused/recycled raw materi-
als that have discovered. In addition, through a government-supported proj-
ect, we are researching tire development using sustainable raw materials 
together with a domestic raw material supplier and an automotive company*.
*In 2022, we conducted research on tire development using 30% sustainable raw materials 
with a domestic raw material supplier, including research on tire development using sustain-
able raw materials with an automotive company 
Discovering Eco-friendly Materials 
In order to replace the existing petroleum and mineral resources, NEXEN TIRE 
is researching the application of green silica, a raw tire material based on natu-
ral substances such as synthetic rubber made using ingredients extracted from 
natural substances as well as natural resin, oil, and waste tire and other indus-
trial recycled materials as raw materials for tire manufacturing. Moving forward, 
we will continuously conduct research projects, verifications, and assessments 
to discover a variety of reused and recycled raw materials and increase the rate 
of their application to products while maintaining tire stability and performance. 
Use of Sustainable Raw Materials 
As of December 2021, at least 23.3% of raw materials used by NEXEN TIRE are 
sustainable materials. In the long term, we plan to increase the percentage of 
recycled raw materials from waste tires and other products. In addition, we 
will gradually increase the rate of sustainable raw material use while reduc-
ing the percentage of petroleum and chemical resources by discovering and 
applying renewable materials from natural and bio resources. 
Industry-Academic Joint Research to Develop Eco-friendly Tire 
Materials  
To secure the sustainability of tires, various types of sustainable raw materi-
als need to be developed. In addition, to apply them to tires, manufacturing 
technologies to secure tire performance indicators—such as fatigue, wear, 
braking, and fuel efficiency—equivalent to those when using the existing raw 
materials are required. With the goal of increasing the efficiency of tire devel-
opment, NEXEN TIRE is promoting industry-academic joint researches (open 
innovation) with companies, government research institutes, and universities 
that wield great influence in the respective fields.  
In 2021, we conducted research on tire development using 25% sustainable 
raw materials by applying reclaimed synthetic rubber other than natural rub-
ber and reclaimed carbon black. In 2022, an R&D project for tire development 
using 30% sustainable raw materials—increased from the previous year—
was conducted. Through the joint research, we will develop various technol-
ogies to replace widely used raw materials such as polymers, fillers, oils, and 
cords with eco-friendly raw materials. 
R&D, Raw Material
Details of National Project
Detailed Task
Development of eco-friendly, highly fuel-efficient tire  
manufacturing technologies based on sustainable materials
- Zeus Oil & Chemicals Co., Ltd.: Eco-friendly oil development
- NEXEN TIRE Co., Ltd.: Eco-friendly oil development
- KOLON Co., Ltd.: Eco-friendly cord development
- D.Y Polymer: Recycled PET development
- Korea Automotive Technology Institute: Fatigue characteristic analysis 
methodology
- Korea Research Institute of Chemical Technology: Research on natural 
oil degeneration technology
Project Title
Development of eco-friendly tire technologies for future  
mobility using sustainable materials (Apr. 2021 - Dec. 2024)
23.3 %
 Ratio of sustainable raw material use in 2021
2021/22 NEXEN TIRE ESG Report      30
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Research on Energy Efficiency Improvement 
Technology
Research on Vehicle Fuel Efficiency Improvement
NEXEN TIRE has been applying to product design the aerodynamic reduction 
technology it developed in 2020 to improve vehicle fuel efficiency. Completed 
through joint research with Dassault Systems, this technology predicts the 
shape that minimizes air resistance through simulation and directly applies 
it to the product; thus improving vehicle fuel efficiency. In addition, we are 
actively responding to the needs of automotive companies by developing a 
traded-off performance fuel efficiency prediction technology in 2021 through 
cooperation with Korea University and Hanyang University. Based on the 
technologies, we are expanding cooperation with European automotive com-
panies, such as BMW, Mercedes Benz, and Volkswagen, for simulation, and 
obtaining recognition on our technological power for fuel efficiency improve-
ment. NEXEN TIRE will continue dedicating effort to achieving energy effi-
ciency* improvement for its products.
Research on Tire Fuel Efficiency Improvement
Research on Tire Rolling Resistance and Noise Reduction
NEXEN TIRE is continuously conducting research activities to reduce rolling 
resistance of tires in order to develop products with improved energy effi-
ciency. In 2019, we improved the rolling resistance class for our OE prod-
ucts supplied for the VW eighth-generation Golf models from B to A. In 2021, 
through continued structural and material research, we have also developed 
products with 25% enhanced rolling resistance compared to the existing 
A-class products. In addition, we have developed material technologies to 
enhance rolling resistance, braking, wear, and general tire performance indi-
cators. In particular, we developed materials with 20% increased wear resis-
tance, and applied them to the products for new vehicle OE, such as of HKMC, 
Audi, and BMW. Furthermore, our technological power was recognized both 
internally and externally as we secured remarkable results in rolling resis-
tance, braking, and low-noise performance at a competition hosted by HKMC, 
ranking second among seven domestic and overseas tire makers.
In addition, we developed a prediction system that can reduce tire noise 
using AI Big Data through research with Hyundai Motor Company, Kia and 
Inha University.
 
Research on Tire Weight Optimization
Through a research project for tire optimization, NEXEN TIRE reduced the 
use of raw materials by approximately 1,170 tons in 2021 while optimizing 
tire weight without quality deterioration. This year, we will continue reducing 
the use of raw materials and reviewing the application of new materials with 
greater performance while implementing weight optimization by reconfigur-
ing the design technologies for each component and optimizing the struc-
tures and materials. 
NEXEN TIRE operates a tire energy efficiency rating system. This is a system for measur-
ing the rolling resistance and wet grip of tires and grading them on a scale of one to five. 
Among the rating items, fuel efficiency indicates the rolling resistance of tire. The lower 
the rolling resistance, the less frictional resistance there is between the tire and the road 
surface, which increases fuel efficiency and reduces carbon dioxide emissions; thus con-
tributing to environmental protection. 
In Korea, the minimum energy consumption efficiency standard system has been 
implemented since December 2013 to ban the manufacture, sale, and distribution of 
products that do not meet the government’s minimum standards. NEXEN TIRE is manu-
facturing products that meet the minimum energy consumption efficiency standards.
Tire Energy Efficiency Rating System
1,170tons 
   Amount of raw material use reduction in 2021 
Aerodynamic
Research on Tire Noise Reduction Using AI Big Data Technologies
2021/22 NEXEN TIRE ESG Report      31
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Reducing the Emission of Air Pollutants 
To minimize air pollutant emissions, NEXEN TIRE controls the emission con-
centrations through monthly self-assessment. In addition, to increase the 
dust collection efficiency, we manage emission prevention facilities in the 
domestic worksites by investing KRW 165 million a year. As a result, the 
amount of dust emissions from domestic plants has been lowered by 18%*. 
*Ratio of reduction by 2 tons in 2021 in comparison to 2020 
(Amount of dust emission from domestic worksites: 10.9 tons in 2020, 8.9 tons in 2021)
Fulfilling the Particulate Matter Reduction Agreement 
NEXEN TIRE entered into a voluntary agreement with Gyeongsangnam-do 
Provincial Hall to reduce particulate matter generation for five years from 
2020 to 2024. After 2020, we fulfilled the particulate matter reduction agree-
ment for two years in a row. 
Designation as a Company with Excellent Performance in Air Envi-
ronmental Improvement 
Through the assessment on the implementation of voluntary agreement for 
particulate matter reduction concluded with Gyeong-
sangnam-do Provincial Hall in 2021, NEXEN TIRE was 
found to have reduced the emission of air pollutants 
and was consequently selected in September 2021 as 
a company with excellent annual performance in pro-
tecting residents’ health and improving the air environ-
ment to win the citation from the provincial governor. 
Waste Management 
To control and reduce the amount of waste generation in the manufacturing 
process, NEXEN TIRE checks the waste generation amount and establishes 
waste reduction goals through environmental impact assessment by process. 
Waste Classification and Management Systematization 
NEXEN TIRE classifies waste into general waste, scrap metal, paper, wood, 
plastic, and oil and uses different storage and disposal methods according to 
the classifications. 
Effort to Reduce Waste Discharge 
In 2021, the amount of waste discharge for commissioned treatment through 
landfill decreased by more than 100 tons from the previous year. In addition, 
NEXEN TIRE is making efforts to increase the waste recycling rate. As a result, 
we recycle 87.1% of wastes discharged from worksites. 
On-site Inspection of Waste Treatment Companies 
NEXEN TIRE conducts on-site inspections of waste treatment companies to 
evaluate their compliance with regulations. 
Strengthening the Supplier Audit Criteria 
For the Chinese plant, NEXEN TIRE supplemented the criteria for qualification 
review of the solid waste processing company by revising the waste manage-
ment program. 
Management of Water Resources 
To minimize the impact on the water resource environment and prevent risks, 
NEXEN TIRE is making efforts to increase the water reuse rate through pro-
cess improvement, while controlling water consumption and wastewater pol-
lution level. The amount and concentration of pollutants in wastewater are 
controlled through self-assessment as well as wastewater measurement con-
ducted twice a month within the respective industrial complexes. In addition, 
we prevent the risk of increase in pollution concentration by dredging the 
wastewater collection tanks three times a year. 
Investment in Non-point Pollution Reduction Facility Improvement 
In 2021, NEXEN TIRE replaced all filters of non-point pollution reduction facil-
ities at the cost of KRW 20 million in order to manage the quality of water dis-
charged from non-point pollution sources within the worksites. 
Conducting the Groundwater Environmental Impact Assessment
In January 2021, NEXEN TIRE conducted an environ-
mental impact assessment through a specialized 
agency to assess the groundwater quality and also 
check the appropriate amount of water withdrawal 
and impact on nearby areas and river. The assessment 
verified that we do not wield any impact on the Yang-
sancheon, a nearby river.
Manufacture
Citation of the Governor  
of Gyeongsangnam-do 
Groundwater Impact 
Assessment Report
Management of Air Emission Sources 
SOx 
management 
Particulate mat-
ter (PM) manage-
ment 
Management of 
volatile organic 
compounds 
(VOCs) 
NOx 
 management 
2021/22 NEXEN TIRE ESG Report      32
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Eco-friendly Products 
NEXEN TIRE defines eco-friendly products as those with minimum environ-
mental impact. We also conduct continuous R&D to manufacture products 
that comply with the established definition. In addition, we are fulfilling our 
social responsibilities by participating in the Extended Producer Responsibil-
ity (EPR) system through the recycling of waste tires. 
Operating an Eco-friendly Product Policy 
NEXEN TIRE is implementing an eco-friendly product policy to increase cus-
tomers’ understanding of eco-friendly products and consequently assist in 
their selection and purchase of the company’s products. According to the 
global greenhouse gas reduction plan, we define products with improved fuel 
efficiency as eco-friendly products. In addition, we specify the fuel efficiency 
ratings of our products and provide the information to general consumers.  
Environmental Review of All Products     For products supplied to areas 
where the eco-friendly labeling system for tire products is not mandatory, 
NEXEN TIRE also conducts the standardized fuel efficiency design, and con-
ducts environmental review. 
Product Design and Operation According to Environmental Regulatory 
Criteria     While strengthening design to place the highest priority on fuel 
efficiency in order to meet the CO2 emission criteria of automotive companies, 
NEXEN TIRE promotes the purchase of the same eco-friendly performance 
products in the future replacement market. 
Definition of Eco-friendly Products 
NEXEN TIRE defines eco-friendly products as those with excellent energy con-
sumption efficiency and tires with rolling resistance rating higher than 3 - 4, 
which is the average rolling resistance of tires for automobiles distributed in 
the Korean market as of 2020. 
According to the strengthened environmental regulations, CO2 reduction 
goals and rolling resistance requirements will be reinforced, particulate mat-
ter emission will be minimized, and EV distribution will be accelerated. There-
fore, we plan to establish goals that meet the global performance require-
ments and introduce and increase the percentage of eco-friendly products. 
Examples of Eco-friendly Products 
In response to the global environmental regulations, NEXEN TIRE is apply-
ing fuel efficiency improvement and noise reduction designs to each prod-
uct. In particular, new pattern supplied to Europe have been developed with 
the highest rolling resistance level to meet the environmental requirements 
in the respective markets. As for the products supplied to the American mar-
ket, which require not only high rolling resistance but also relatively longer 
lifespan, we apply a design technique to maintain performance even after a 
certain level of wear in order to extend the cycle of tire replacement, which 
becomes necessary due to performance deterioration caused by tire wear; 
thus reducing waste tire generation. As a new pattern developed using the 
Level Keeping Technology, NPRIZ S has been launched as an OE product for 
automotive manufacturing companies. The technology application will be 
expanded to general RE products. 
Eco-friendly Concept Tire of the Future     “PureBack,” as the name sug-
gests, is an eco-friendly tire designed in consideration of the discharge of 
micro-plastic debris caused by tire tread wear and which has emerged as a 
global issue. With the built-in suction system, micro-plastic debris generated 
during a vehicle operation is collected in a capsule located in the center of the 
tire. The driver can check how much micro-plastic debris has been collected 
inside the capsule by looking at the color of the LED lighting on the outside of 
the tire. It also ensures user convenience as the capsule is easily removed to 
discard the micro-plastic debris collected inside and mounted back on the tire. 
Use
PureBack, a Future-Concept Tire
2021/22 NEXEN TIRE ESG Report      33
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Developing Products for Eco-friendly EV     In line with the expansion of 
eco-friendly electric vehicle distribution, NEXEN TIRE is increasing products 
designed exclusively for OE supply targeting EV. We configured a product cat-
egory for EV in order to broaden consumers’ understanding of and choices 
when it comes to the products. As for the product names, we are applying 
a separate brand (“EV”) for distinction. For example, Roadian GTX-EV and NF 
Sport-EV were developed through application of pattern designs specializing 
in high-load, high-output performances characteristic of EV to prevent rapid 
performance degradation. By applying electric power instead of an inter-
nal combustion engine, the noise generated by vehicles has been reduced 
considerably. In addition, to create a low-noise driver environment, we have 
introduced an exclusive facility for noise reduction system application, and we 
are manufacturing products using the system. The system application will be 
expanded to the new products for EV to be launched in the future.
Roadian GTX-EV and NFERA Sport-EV, EV Tires     NEXEN TIRE supplies prod-
ucts for EV6, Kia’s electric vehicle EGMP platform model. Tire designs con-
forming to the EV characteristics and requirements are applied to improve 
rolling resistance performance along with absorber for noise reduction. In 
particular, we have established a separate automated production system to 
apply high-quality absorber, and are manufacturing and supplying products 
to automotive companies under this system. In case of the two products sup-
plied for response to EV load conditions and torque, we are applying the new 
pattern design and compound we have developed.
Eco-friendly Services
Tire Energy Efficiency Rating System
NEXEN TIRE contributes to energy saving and greenhouse gas reduction in 
Korea and abroad by distributing products developed through research on 
high-efficiency, eco-friendly products. Since 2013, we have been developing and 
supplying high-efficiency tires according to the government policy and in com-
pliance with the “Regulations on energy efficiency measuring, rating criteria, 
labeling, etc. of automotive tires.” The high-efficiency and eco-friendly products 
expand consumers’ choices and provide useful information to promote their 
eco-friendly tire purchases. 
With the high-efficiency tires supplied to consumers, we are not only funda-
mentally preventing issues concerning energy loss and environment but also 
contributing to energy saving and greenhouse gas reduction in the national 
transportation field.
Supply Products for Kia’s Electric Vehicle EV6 to Europe and America
	
In Korea
˙	Launching 65 products with efficiency rating of 1-2, contributing to sales/ 
distribution
˙	Achieving distribution of high-efficiency tires in Korea by 35% (1.2 million 
tires) in 2021 
	
In Europe
˙	Launching 193 products with efficiency rating of A - B according to the EU  
regulations (rating 1 - 2), contributing to sales/distribution
˙	
Achieving accumulated high-efficiency tire sales of approx. 4.3 million in  
2017 - 2021, recording KRW 134 billion in sales
High-efficiency (Low Fuel Cost-LRR) Tire (Rating 1-2)* Sales
Category
Unit
2019
2020
2021
Domestic
Quantity
1,000
471
722
1,198
Amount
KRW million
9,839
34,663
65,163
Overseas
Quantity
1,000
570
1,024
1,872
Amount
KRW million
5,650
34,145
82,969
Total
Quantity
1,000
1,041
1,746
3,070
Amount
KRW million
15,489
68,808
148,132
*Generally referring to tires with RR rating 1- 2 (domestic) and rating A - B (Europe) 
2021/22 NEXEN TIRE ESG Report      34
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Domestic Worksites 
Domestic Collection and Disposal 
In Korea, NEXEN TIRE is collecting and recycling waste tires in order to achieve 
the recycling target announced by the Extended Producer Responsibil-
ity (EPR). As a member of the Korea Tire Manufacturers Association, NEXEN 
TIRE handles waste tire collection, disposal, and cost settlement operations 
through consignment. If waste tire collection and handling are not carried out 
successfully, agencies distributing tires may experience difficulties due to lack 
of storage space. Therefore, we are striving to overachieve the target each 
year through active collection and handling of waste tires. 
Mandatory Recycling Implementation Plan Establishment and Target 
Management     At the beginning of each year, a mandatory recycling imple-
mentation plan is established through estimation of the shipment weight 
of new pattern for the year. In addition, waste tires collected through com-
panies designated by the Korea Tire Manufacturers Association, and weight 
of waste tires sent to recycling companies are recorded to manage recycling 
goals. Issues arising during the process of collection and recycling are resolved 
through close cooperation between the Association and its members. Each 
member of the Association reports the total quantity of tires distributed domes-
Classification and Definition of Waste Tire Recycling Methods 
Classification 
Definition 
Material Recycling 
To make rubber powder by crushing the collected waste tires 
and separating the iron rims, or to export used tires 
Thermal Recycling 
To use waste tires as alternative fuel in cement factories, or 
to supply waste tires to a solid fuel company where they are 
crushed and used in making fuel chips 
Recycling & Disposal
tically to the Korea Environment Corporation, which then compares the recy-
cling performances reported against data from collection and recycling compa-
nies to determine fulfillment of the mandatory recycling implementation plan. 
Domestic Recycling 
The collected waste tires are processed largely through material recycling 
and thermal recycling. According to the Act on the Promotion of Saving and 
Recycling of Resources, 30% of the mandatory recycling volume must be pro-
cessed through material recycling. 
Material Recycling     Rubber powder made with waste tires is mainly used 
for flooring with a buffer effect, or for making plastic black. Every year, NEXEN 
TIRE is striving to find new supply for this material. 
Thermal Recycling     Although over 70% of waste tires are processed 
through thermal recycling, waste tire consumption as an alternative fuel is 
decreasing according to the nationwide response to the excessive waste syn-
thetic resin generation as of late. Therefore, NEXEN TIRE is making efforts to 
secure demand in the relevant areas. 
Extended Producer Responsibility (EPR) 
Classification 
Material 
Cost 
Collection 
Collection and 
transportation 
companies (26 
companies) 
Collection process-
related expenses paid 
Production 
Shared waste tire expenses, 
administration fees 
Recycling 
Recycling companies (38 
companies) 
Discharge 
Agencies, car repair 
shops, junkyards, 
maintenance service 
centers, etc. 
Korea Tire  
Manufacturers 
Association  
(cooperative) 
Material recycling 
(rubber powder, used tire 
export) 
Thermal recycling 
(cement kiln, solid fuel) 
Tire manufacturers/
importers (35 
companies) 
Alternative Fuel  
(Furnace Fuel) 
Solid Fuel 
Thermal 
Recy-
cling 
Material 
Recy-
cling 
Buffer Material 
Plastic Dye 
Example of Material/Thermal Recycling 
2021/22 NEXEN TIRE ESG Report      35
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Overseas Worksites 
Overseas Disposal 
NEXEN TIRE Europe collects and processes waste tires only through compa-
nies verified according to the European law. 
Overseas Recycling 
NEXEN TIRE Europe recycles waste tires by crushing and turning them into 
resources only through verified companies. 
Climate Change Response System 
Importance of Climate Change Response 
In line with the recent rise in the demand for carbon neutrality from automo-
tive companies and expansion of environmental regulations, such as Carbon 
Border Adjustment Mechanism, the risk of carbon emissions becoming sub-
ject to taxation is heightening. Countries around the world are establishing and 
upgrading their respective national greenhouse gas reduction targets, and 
companies are also setting targets reflecting their commitment to fulfilling zero 
GHG emission before 2050 as the target year of global carbon neutrality. To 
express active will for carbon neutrality, NEXEN TIRE established a mid- to long-
term roadmap, reviewed the reduction plans, and set priorities by considering 
the expected benefits, investment cost, and time for the introduction of each 
plan. We manage GHG emissions through monthly monitoring. In addition, the 
goals established for each plant are managed by the relevant department and, 
if the goals are not achieved, the causes are analyzed. Moreover, we transpar-
ently disclose the external GHG verification and CDP results each year. 
Climate Change Response Management System 
For company-wide climate change management NEXEN TIRE recently estab-
lished the GHG inventory, and installed an organization in charge by designat-
ing managers in charge of management of emission sources, monitoring, and 
accounting management by manufacturing plant. We are striving to realize 
a more systematic climate change response, such as responding to climate 
change risks through the revision of the GHG management procedures and 
managing the monthly and yearly GHG emissions. 
Conducting Energy Audit in the European Plant     In 2021 - 2022, NEXEN 
TIRE’s plant in Europe is undergoing an energy audit through TUV-SUD 
according to the laws of the Czech Republic (40/2021 Sb, EA Typ 2.). Through 
the audit, mid- to long-term energy-saving action plans will be established. 
According to the plans, we will actively respond to climate change by continu-
ously investing in energy saving. 
Effort for Carbon Neutrality 
Reviewing the Application of Factory Energy Management System 
(FEMS) 
In 2021, NEXEN TIRE Yangsan Plant introduced the FEMS system to establish 
the basic infrastructure for energy saving. 
In addition, we installed an integrating watt-hour meter to check power con-
sumption in 164 locations. A flow meter showing the direct compressed air 
consumption amount has also been installed in 80 locations. By linking the 
information obtained using the system with the previously established MES 
system, the actual amount of energy consumption for manufacturing per unit 
facility is analyzed. If the general scope of use is exceeded, leak from air com-
pressors is decided, and alarm is automatically issued, with the situation noti-
fied to the respective maintenance part. This system is expected to produce 
an energy-saving effect as it will ensure swift identification and handling of 
facility failures and areas of energy waste. Currently, it is being applied to var-
ious processes that involve a large amount of power and compressed air use. 
The system application will be expanded through increased investment. 
Green Premium Contract 
For active response to climate change, NEXEN TIRE’s domestic plant in Chan-
gnyeong participated in the Green Premium at the time of its introduction in 
2021. With Yangsan Plant also participating in the system that same year, we 
recorded an RE100 implementation rate of 5.86%.
Response to Climate Change 
Tire Recycling Status 
Item 
Unit 
2019
2020
2021
Recycling Rate* 
%
78.0
75.1
-***
Target Set by the Government** 
%
78.6
79.0
79.6
*Recycling rate = Approved recycling implementation amount ÷ Waste tire generation volume 
**Changing each year according to the Notice of the Ministry of Environment 
***The recycling rate of waste tires in 2021 will be finalized through an investigation by the 
Korea Environment Corporation in September 2022 
•  Approved Recycling Implementation Amount: According to the detailed criteria 
for the method of waste tire use (for thermal areas, only 70% of the total manda-
tory amount approved), weight from thermal areas has been partially excluded. 
•  Waste Tire Generation Volume: Quantity of new pattern delivered x Wear rate (0.85) 
2021/22 NEXEN TIRE ESG Report      36
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Risks and Opportunities
NEXEN TIRE operates an assessment process annually in order to identify and resolve key management issues including climate change. The risks and opportu-
nities identified through the assessment are as follows:
Establishing a Carbon Neutrality Strategy and the RE100 Roadmap
Last year, together with a professional consulting firm, NEXEN TIRE established 
systematic carbon neutrality strategies as well as the RE100 roadmap. We set 
the RE100 fulfillment year by considering the industrial trend and require-
ments of automotive companies and designed a simulation tool for estimat-
ing the fulfillment rate and cost by selecting optimal plans and percentages 
according to the interim goals. For our domestic and overseas plants, we set 
the RE100 goals in line with the 2039 Carbon Neutrality. Considering short to 
mid-term convenience and economic benefits, we will use the Green Premium 
and certificate purchase as the means for implementation. In the long term, 
we plan for a transition to PPA and intend to expand the application.
Risk/Opportunity 
Factors
Impact
Response
Transition Risks
Policies and 
Regulations
Increased CER purchasing 
fees due to strengthened GHG 
emission regulations
NEXEN TIRE is continuously monitoring energy-saving activities to manage GHG emissions. We are review-
ing the application of GHG reduction facilities and new technologies, such as expansion of renewable energy 
use and replacement of equipment with high-efficiency models. In 2020, we invested KRW 340 million in the 
installation of low-NOx boiler burners and replacement of old steam traps and LED lighting with high-effi-
ciency equipment. 
Technology
Investment in transition to low-
carbon operation system
Market
Decreased tire demand as 
customers’ eco-friendly demand 
is not met
By establishing a system that is compatible with ISO 14001, we ensure the reliability of our environmental 
response actions and climate change-related reports. The accuracy and reliability of the established systems 
and GHG emission management are verified by a third party.
Physical Risks
Short-term
Losses caused by plant shutdown 
due to typhoon and flood
We conduct periodic facility inspections and risk investigations in relation to damage caused by natural 
disasters, such as typhoon and heavy rain. In addition, we continuously conduct safety inspections and 
repairs to make our buildings impervious to natural disasters. Crisis management experts from various 
fields such as fire, gas, electricity, and rescue operations were hired, with a dedicated emergency response 
team established. In addition, we provide regular training and conduct periodic safety diagnosis activities 
using the emergency response manual we created.
Market
Increasing sales by accessing new 
and emerging markets
GHG emission amounts are allocated to all companies according to the GHG emissions trading scheme. 
By reducing GHG emissions, companies can generate profits by selling the Certified Emission Reductions 
(CERs). NEXEN TIRE is conducting energy-saving activities to enter the carbon credit market through the 
reduction of GHG emissions. We plan to manage and reduce energy consumption in new facilities and plants 
continuously.
Technology
 Developing new pattern and 
services through R&D and 
innovation
One of NEXEN TIRE’s main products is winter tires. We predict the winter tire sales volume by collecting and 
searching big data and adjust the production rate accordingly. In addition, we are continuously developing 
tires with unique characteristics suitable for environmental change caused by climate change. 
Certificate of Renewable Energy Use
2021/22 NEXEN TIRE ESG Report      37
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Reduction of GHG Emissions
Every year, NEXEN TIRE is reviewing various GHG reduction plans such as 
investment in equipment, facility improvement, and introduction of new tech-
nologies. In addition to management of Scope 1 and 2 emissions, we recog-
nize the importance of managing Scope 3 emissions for complete and trans-
parent evaluation of GHG emissions, and therefore are expanding the scope 
of the activities. In 2021, using the GHG Protocol Scope 3 estimation tool, we 
estimated emissions for ten categories. This year, we plan to review the reduc-
tion of emissions through stabilization of the Scope 3 estimation tool. In the 
long term, we will join SBTi (Science-Based Targets initiative).
Effort for Reducing Exhaust Gas Emissions
All forklifts operated in NEXEN TIRE’s European plant are electric forklifts. We 
also plan to purchase electric models for all forklifts and tow trucks required 
for the stage 2 plant extension.
Application of Energy-Saving Operation System to  
Manufacturing Plants
For the stage 2 extension of the European plant, NEXEN TIRE plans to apply 
an improved control system for air compressor operation. Each compressor 
(four turbo compressors, one screw-type compressor) is sequentially and 
automatically operated in the load sharing system to extend the equipment 
lifespan and minimize excessive air production. As a result, reduction in the 
amount of power consumption for compressor operation and carbon emis-
sions is expected. We plan to apply this operating system from 2023.
Application of Energy-Saving High-Efficiency Equipment     NEXEN TIRE 
dedicates continued effort to improving energy efficiency in the production 
processes of each plant. In the Chinese plant, the amount of electricity use was 
lowered by reusing the residual heat from air dryers. In addition, we are con-
tinuously carrying out an operation to improve motor operation efficiency by 
replacing the motors with a high-efficiency type. 
Energy Saving through Collection and Reuse of Steam     NEXEN TIRE Chan-
gnyeong Plant has established a steam recovery system through which re-va-
porizing steam generated from the storage tanks of hot water and steam 
collected from production processes is reused in heating make-up water for 
the tanks. By saving energy used in heating make-up water, the amount of 
fuel consumption has been lowered, resulting in the fuel cost reduction by 
KRW 150 million a year, and, subsequently, reduction of carbon emissions. 
Expanded application of the system to other plants is being reviewed.
Developing Energy-Saving Technologies
Mixing Process Optimization     “Mixing process” is a process of mixing vari-
ous chemicals such as filler (carbon black, silica, etc.) and sulfur with the rub-
bers (natural rubber, synthetic rubber) for making tires. NEXEN TIRE is review-
ing a technology for optimizing the rubber mixing time in order to achieve 
productivity improvement and energy saving. 
In 2021, we optimized the order of material input by analyzing processes that 
can affect the mixing cycle. The process for feeding raw and subsidiary materi-
als, such as polymer and filler, was optimized to stabilize tire quality by improv-
ing filler dispersion, and keep the tire performance deviation to a minimum. As a 
result of applying the optimized process, the duration of mixing cycle for 14 com-
pounds (rubber compounds) was lowered by 10 - 40 seconds per compound.
As the idle time of the mixing facilities was increased by as much as the reduced 
mixing time, not only energy saving but also improvement of process manage-
ment competency was achieved. Through continuous optimization, we will pro-
mote more efficient process and resource management. 
 
 
 
100%
   Rate of Electric Forklift Operation in European Plant 
2021/22 NEXEN TIRE ESG Report      38
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Minimization of Energy Leak
NEXEN TIRE continuously reinforce facilities where heat loss occurs by 
using thermal imaging cameras in order to minimize energy leakage from 
worksites.
European Plant   To minimize energy leak and heat loss from steam pipes  
and curing facilities in the European plant, NEXEN TIRE continuously replaces 
old steam traps and insulates steam pipes. In March 2021, an external agency 
inspected all steam lines in the manufacturing plant using thermal imaging 
cameras and provided consulting service for energy efficiency improvement. 
According to the result, 18 steam traps were replaced and piping insulation 
was conducted in 23 locations in 2021. 
Yangsan Plant     In 2021, 58 steam traps in Yangsan Plant were replaced 
based on periodic inspections. The amount of resultant energy saving is 
approximately KRW 90 million. In addition, heat loss equivalent to over KRW 
15 million is being prevented each year through installation of high-perfor-
mance insulation covers on 234 steam unit piston valves in the curing pro-
cess, which is where the largest amount of heat energy is used. Moreover, 
along with the continuous replacement of constant speed motor with invert-
ers, old pumps are replaced with a high-efficiency type.
Eco-friendly Office
THE NEXEN univerCITY
THE NEXEN univerCITY, which brings together the growth DNA and identity 
of the NEXEN Group, is the core facility that leads the growth of global NEXEN. 
With total floor area of 57,171㎡, it consists of 2 floors underground and 8 
floors aboveground. The building, which is divided into the research block 
and the office block, is designed to help employees conduct creative activities 
in a horizontal, free atmosphere. The research facilities include an R&D center 
for studying product design, AI technologies, and virtual tires, a performance 
research center for developing matching performance between vehicles and 
tires, and a material research center where various materials are analyzed. 
The characteristics of the industry are visualized with the tire tread-shaped 
design on the outside of the building.
THE NEXEN univerCITY is a green building created with eco-friendly design 
elements such as photovoltaic power generation system, air conditioning 
system using geothermal heat, and green roof system for heat loss reduc-
tion. The courtyard, which is a green space in the center of the building, and 
the multi-helix green roof walkway surrounding it connect the overall space 
that serves as a space for continuous idea expressions. In particular, the first, 
second, and third floors are open to the public as a space where employees, 
local residents, and local communities can interact. Serving as an R&D con-
trol tower and the hub that manages the European Technology Institute in 
Germany, the Technology Research Institute in the US, and the Technology 
Research Institute in China, THE NEXEN univerCITY successfully conveys the 
identity and value of NEXEN TIRE.
Creating an Eco-friendly Work Environment
NEXEN TIRE offers flexible work hours and telecommuting system that allows 
employees to select their preferred work times. We have also launched a 
campaign to replace business trips with videoconferencing to save time and 
resources.
Building Energy Efficiency 
Rating 1
2021/22 NEXEN TIRE ESG Report      39
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

41	
Human Rights
43	
Occupational Health and Safety  
47	
Employees  
55	
Customers 
63	
Suppliers  
67	
Social Contribution  
71	
Information Security 
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Human Rights
Human Rights Management Policy
NEXEN TIRE incorporated human rights management into its mid- to long-
term ESG strategies to secure human rights and values in all management 
activities. In fulfillment of its responsibility to respect human rights, NEXEN 
TIRE supports and complies with human rights-related domestic and inter-
national standards and norms. In addition, we identify potential issues 
based on our human rights policies in all business activities, including our 
subsidiaries and suppliers.
Declaration of Human Rights
To fulfill its social responsibilities faithfully and pursue sustainable devel-
opment with all stakeholders, NEXEN TIRE has included human rights prin-
ciples in the Declaration of Human Rights, which must be observed by all 
members of the company. We are committed to promoting the principles 
of internationally recognized human rights, particularly those defined in the 
UN Universal Declaration of Human Rights and the UN Guiding Principles 
on Business and Human Rights. We also make the utmost effort to protect 
the human rights of all stakeholders and prevent human rights violations.
Prohibition of Child Labor and Forced Labor
NEXEN TIRE is conducting various activities to protect and promote human 
rights throughout all management activities. In particular, we adhere to the 
Ten Principles of the UN Global Compact and abide by the key agreements of 
the International Labor Organization (ILO), including strict prohibition of child 
labor and forced labor as stated, too, in our Declaration of Human Rights. 
Since our foundation, no human rights-related issues such as child labor, 
forced labor, and human trafficking have occurred in the company, and we 
will continuously work hard to prevent any legal issues during the business 
operation. Moving forward, we will perform our role as a responsible corpo-
rate citizen through the active practice of human rights management.
Human Rights Awareness Improvement
Human Rights Education
NEXEN TIRE respects freedom and human rights as the basic and inalien-
able rights of all people. In order to strengthen human rights management 
system, training is provided in all areas of human rights such as preven-
tion of sexual harassment and improvement of awareness of the disabled; 
efforts are also being made to establish an organizational culture that 
respects human rights.
Human Rights Education* Completion Status
Category
Unit
2019
2020
2021
Persons Subject to 
Education**
Persons
4,066
4,027
3,979
Persons Who Completed 
Education
Persons
4,034
4,005
3,937
Education Completion Rate
%
99.2
99.5***
98.9
*Including training on sexual harassment prevention and improvement of awareness of the 
disabled
**Based on domestic worksites 
***Human rights education completion rate of 2020 corrected due to display error
NEXEN TIRE’s Declaration of Human Rights 
NEXEN TIRE adheres to the human rights principles set by the 
UN Universal Declaration of Human Rights and the UN Guiding 
Principles on Business and Human Rights. 
All NEXEN TIRE employees must consider the following principles when 
performing their tasks, and all stakeholders in a business relationship 
with NEXEN TIRE are encouraged to respect the same principles:
①	
We respect the diversity of employees, and we are committed 
to ensuring that each employee or potential employee is 
not discriminated by gender, age, race, nationality, religion, 
disability, political orientation, and region of origin in 
all processes of human resource management such as 
recruitment, evaluation, compensation, and training.
②	
We prohibit child and forced labor and adhere to all ILO-
recommended, state-ratified labor principles regarding health, 
safety, working hours, etc.
③	
We provide sufficient communication opportunities to all 
employees and guarantee freedom of association and 
collective bargaining.
④	
We prepare appropriate support measures for a safe work 
environment for employees.
⑤	
We protect the human rights of local communities where the 
workplace is located.
2021/22 NEXEN TIRE ESG Report      41
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Diversity and Inclusion
Creating a Culture that Embraces Diversity
NEXEN TIRE seeks to create a culture that embraces diversity for securing 
and fostering excellent talents. We are promoting activities considering the 
universal factors of diversity, such as gender, age, and disability. To provide 
stable jobs to people with disabilities and fulfill our social responsibility, we 
established N’zel Withus a subsidiary-type standard business for the dis-
abled, in 2017. N’zel Withus provides bread and confectionery to the Yang-
san and Changnyeong plants and NEXEN Corporation. As of 2021, a total 
of 73 people with disabilities are employed. We strive to respect diversity in 
hiring employees.
In-house Broadcast for Exchange Among Generations 
NEXEN TIRE makes an active use of the in-house broadcast system to share 
and expand communication among the  employees. Providing contents 
such as “Talk Talk,” “N-Balance Game,” and “Introducing Our Team,” which 
are operated through employees’ direct participation, we strive to break 
down barriers and strengthen communication across generations. 
Providing Education on Diversity 
Through the in-house cyber campus, NEXEN TIRE provides education on 
gender equality and values of diversity to all employees. 
Prohibition of Discrimination and Harassment 
NEXEN TIRE prohibits workplace discrimination and harassment. The 
Human Resources Team is designated and operated as the department 
in charge of handling discrimination and harassment-related grievances. 
When any discrimination or harassment case occurs, a person in charge is 
assigned to the case, and the Personnel Disciplinary Committee is convened 
based on the evidence.  
Diversity in NEXEN TIRE
Category
Unit
2019
2020
2021
People with Disabilities* 
Persons
64
66
73
Foreigners
Persons
2,634**
2,506**
2,736
People of Old Age*** 
Persons
609
671
718
*Employees of NEXEN TIRE including those of N’zel Withus 
**Data for 2019 and 2020 were changed due to the data management tool modification, 
caused by the integration of internal HR management system
***Employees over 50 years of age
NEXEN TIRE’s Female Employees 
Category
Unit
2019
2020
2021
Female Employees 
%
6.9*
7.7*
8.9
Female Managers** 
%
0.1
0.1
0.1
Female Executives 
Persons
0
0
0
*Data for 2019 and 2020 were changed due to the data management tool modification, 
caused by the integration of internal HR management system
**Job position equivalent to manager and above
Number of Employees with Disabilities in NEXEN TIRE
2019 
64 
persons
2021 
73 
persons
Number of Foreign Employees in NEXEN TIRE
2019 
2,634 
persons
2021 
2,736 
persons
Number of Elderly Employees in NEXEN TIRE
2019
609 
persons
2021
718 
persons
2021/22 NEXEN TIRE ESG Report      42
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Occupational Health and Safety
Occupational Health and Safety Implementation System
Establishment of an Organization in Charge of Occupational Health and Safety
NEXEN TIRE is making the utmost effort to establish and implement the health and safety management system with the goal of recording zero severe accidents. 
To enhance the occupational health and safety of organization, we established the SHE Planning Team consisting of persons possessing professional qualifica-
tions and experiences in the health and safety fields as members. As an organization under the direct management of the CEO, the SHE Planning Team functions 
as a company-wide health and safety control tower and handles comprehensive health and safety management operations. NEXEN TIRE not only strengthened 
the efficiency and expertise of health and safety management by allocating additional personnel other than the safety and health managers appointed in each 
plant according to the law but also conducts real-time monitoring and other operations to prevent accidents in blind spots and assigns field patrol staff for swift 
response to emergency situations upon their occurrence.
Occupational Health and Safety Organization and its R&R
Occupational Health and Safety Improvement 
Activities
Revision of Health and Safety Regulations 
To establish health and safety R&R through the documentation of internal reg-
ulations, NEXEN TIRE established regulations for compliance with the Act on 
the Punishment, etc. of Serious Accidents and fully amended the occupational 
health and safety management regulations. We also established a process for 
responding to the Act on the Punishment, etc. of Serious Accidents and ana-
lyzed the occupational health and safety management status on each plant.
In 2022, to internalize substantial occupational health and safety management 
system, we will inspect the implementation status of occupational health and 
safety-related laws and regulations every six months. In addition, advanced 
education course shall be offered to enhance the occupational health and safe-
ty-related roles and responsibilities of management supervisors.
Occupational Health and Safety Education 
NEXEN TIRE provides occupational health and safety education to all work-
ers working in plants. Education is provided in Yangsan and Changnyeong 
plants in compliance with the occupational health and safety-related statu-
tory requirements. As of 2021, the education completion rate is 100%. 
Occupational Health and Safety Education* Status
Category
Unit
2019
2020
2021
Target persons**
Persons
3,502
3,486
3,459
Persons who completed 
education 
Persons
3,502
3,486
3,459
Education completion rate 
%
100
100
100
*Including regular occupational health and safety education, education of new employees, 
education of management supervisors, and practical training of firefighting safety 
management assistants 
**Subject to workers in plants, including double counting
NEXEN TIRE’s company-wide SHE  
(safety, health, environment) control tower 
1. Responding to the Act on the Punishment, etc. of Serious 
Accidents and the Occupational Safety and Health Act
2. Standardizing occupational health and safety management 
guidelines
3. Responding to ESG-related issue / environmental  
assessment such as CDP
4. Assessing level of occupational health and safety manage-
ment on each plant, such as the occupational health and 
safety management officer appointment rate
5. Responding to the SHE requirements of stakeholders 
6. Reflecting occupational health and safety related KPIs
SHE Planning Team  
1. Conducting on-site safety, health, environment, and  
firefighting operations in each plant 
2. Responding to the Occupational Safety and Health Act and 
related laws and regulations (domestic worksites)
3. Performing activities to prevent disasters and accidents in 
plants 
Safety & Environment Team in each plant
Occupational Health and  
Safety Policy 
Cultural  
Innovation  
Team 
THE NEXEN univerCITY
(YP)  
Global Safety & 
Environment Team
YP
(CP)  
Global Safety & 
Environment Team
CP
(QP)  
Global Safety & 
Environment Team
QP
(EP)  
Global Safety & 
Environment Team
EP
Management Officer
CEO
Department in Charge
SHE Planning Team
2021/22 NEXEN TIRE ESG Report      43
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Occupational Health and Safety Improvement Activities
Effort for Strengthening Safety in Plants
For workers’ occupational health and health, NEXEN TIRE organizes various health and safety activities, participated in 
by not only the safety management related departments, but also all employees. 
Safety Inspection of Plants   To strengthen on-site safety management as the basis of accident prevention, the man-
agement officer and health and safety managers conducted on-site safety inspections in each plant.  
Discovering and Improving Risk Factors by Each Plant   In each plant, risk factors of each department are identified 
and improvements are made on a monthly basis under the guidance of the management supervisor. In addition, risk 
prediction education items are selected and managed. Special safety patrol is conducted before and after holiday peri-
ods, during which employees’ safety awareness can be lowered, in order to prevent accidents. Moreover, along with the 
monthly labor-management joint on-site safety inspection, health and safety management officers participate in the 
improvement meetings to allocate the necessary budget and receive reports on the results of follow-up actions.
Operating Programs to Motivate Workers’ Participation in Health and Safety Management   In particular, to 
encourage workers’ participation in occupational health and safety activities, NEXEN TIRE secures and executes the 
budget necessary for operating health and safety management motivation programs such as paying zero accident 
incentives and presenting prize money in safety contests.
Expanding the Health and Safety Budget for Accident Prevention   In 2022, with the goal of preventing accidents and 
health damage of workers, NEXEN TIRE compiled the health and safety budget for an accident prevention project based 
on workers’ opinions at more than double the amount in 2021; thus contributing to creating a health and safety culture.
Health and Safety Risk Management at the Magok Central Research Institute   To create an accident-free workplace, 
the Magok Central Research Institute established the occupational health and safety management system; it is manag-
ing health and safety-related risks by developing measures to prevent severe industrial accidents. NEXEN TIRE is making 
company-wide efforts to prevent the recurrence of the same accidents by strengthening intensive management for each 
task. The Magok Central Research Institute provides safety training in relation to the handling of chemicals and test types 
in prior to commencing tests. Risk factors are assessed and the improvements are made on an annual basis, based on the 
internal checks and the external safety inspection conducted by a professional institution.
Risk Assessment and Monitoring for Suppliers
NEXEN TIRE makes every effort to prevent accidents of suppliers. 
Risk Assessment and Monitoring for Suppliers   NEXEN TIRE annually conducts risk assessment and monitors its 
validity.
Plant Inspection and Education for Internal Suppliers   For in-house suppliers, plant inspection and education of 
managers are conducted on a quarterly basis. In addition, NEXEN TIRE holds monthly committee meetings to discuss 
on technical support provision with subcontractors and make improvements on occupational health and safety related 
issues. As such, we seek to induce a mutual growth with, and prevent industrial accidents of subcontractors.
Occupational Health and Safety Inspection of Plant by COO
2021/22 NEXEN TIRE ESG Report      44
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Employee Health Management
Promotion of Employees’ Health and Disease Prevention
In order to contribute to the health promotion of employees, NEXEN TIRE is 
replacing old measuring and therapeutic equipment at in-house health man-
agement room to examine body composition of employees with cerebrovas-
cular disease and prevent any musculoskeletal related disease. We invested 
KRW 35 million in replacing low-frequency electrical stimulation and intermit-
tent pneumatic compression devices, and purchased extracorporeal shock 
wave therapy devices to provide health promotion program that can lower the 
likelihood of reclaiming shoulder and back pain among returning employees. 
We seek to reduce the number with musculoskeletal disease resulting from 
industrial accidents. Furthermore, we also invest in and conduct various pro-
grams for employees’ health management.
Through general and special health checkups, employees’ health condition is 
assessed. In addition, we perform health promotion activities (operating an 
obesity clinic, providing health counseling service, etc.) to manage employees 
in high health risk groups, such as those with high risk of cerebrovascular dis-
eases, those experiencing symptoms of musculoskeletal diseases, and those 
susceptible to job stress. Separately from the basic requirement, we regularly 
provide comprehensive health checkup service along with tumor marker test 
consisting of ultrasound examination and gastro-colonoscopy to employees 
and their spouses. 
In 2022, in order to reduce the number of employees suffering from hear-
ing-related diseases in plants, we will provide education on noise-induced 
hearing loss to members of departments that generate high level of noise. 
We will also conduct the hearing protection aid fitting test to manage employ-
ees with high risk of noise-induced hearing loss. Moreover, for employees’ 
mental health, we will assess employees’ job stress levels, analyze the results, 
and implement preventive measures based on the results along with health 
checkup and counseling data.
COVID-19 Prevention
For COVID-19 prevention, NEXEN TIRE periodically supplies disease preven-
tion items such as masks, hand sanitizers, and disinfectants to suppliers. In 
addition, to restrict the entry of potential suspect of COVID-19, three des-
ignated gates are operated. While the body temperature of people enter-
ing worksites is measured at six self-measuring stations, thermometers are 
placed in each department to enable employees experiencing fever and 
other abnormal symptoms to check their temperatures continuously. When 
a confirmed case occurs, we encourage employees to undergo self-diagnos-
tic test and leave work to prevent the spread of the disease. According to the 
government policies in line with the delta and omicron variants, we contin-
uously distribute ‘Manuals’ to employees and suppliers to prevent any mis-
understandings and confusion on response procedure. At the same time, to 
prevent the spread of the disease after holidays or plant closing, we encour-
age employees to conduct PCR test or self-diagnostic test before commuting 
to work. At the Magok Central Research Institute, entry route to the building 
is reduced, temperature check is conducted at each permitted entrance and 
public areas are disinfected twice a week. For directors and employees, we 
operate a flexible work arrangement in three groups and encourage telecom-
muting when the national social distancing level is elevated. 
Operating an In-house Health Management Room
NEXEN TIRE sets up an in-house health management room in the Magok Cen-
tral Research Institute where medical professionals (nurses) provide general 
first aid to employees when required, and assess and promote the health of 
employees.
Operating an Obesity Clinic
NEXEN TIRE operates an obesity clinic to encourage employees with high risk 
of obesity and those wishing to participate in the program to control their 
weight and gain healthy diet and exercise habits. We recorded an average 
success rate of 66% between 2019 and 2021 in body fat reduction and other 
goal achievement. In addition, employees are divided into three risk level 
groups according to their cerebro-cardiovascular disease risk levels as indi-
cated in the health checkup results. Each group is differently managed after 
expert consultations and distribution of education materials. In 2022, we plan 
to measure employees’ blood pressure, blood sugar level, and body composi-
tion in quarterly basis during the health counseling sessions.
Response to COVID-19
Temperature measuring for COVID-19  
prevention
Consultation with Medical Specialists
Consultation with Nurses
2021/22 NEXEN TIRE ESG Report      45
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Effort for Creating a Healthy Work Environment
Plant   NEXEN TIRE’s plants implement various activities to improve the work 
environment and to create a healthy workplace. The work environment assess-
ing company has been changed on a biennial basis to conduct a preliminary 
survey from various perspectives. The preliminary survey, which was con-
ducted to prevent the omission of assessment items, enabled us to categorize 
the risk factors by adding 16 assessing items and segmenting department 
processes. Having also improved ventilation and air supply environment, we 
plan to invest continuously in work environment improvement in 2022. 
In particular, we have measured the intensity of illumination once a year and 
installed additional lighting, replaced the existing lighting with LED lighting, and 
introduced a local lighting system in 59 locations. To maintain appropriate illu-
mination intensity, we are establishing and implementing improvement plans.
Magok Central Research Institute   To create a safe work environment, the 
Magok Central Research Institute conducts the legally required environment 
measurement twice a year including safety inspections and precise safety 
assessments through specialized inspection agencies for the improvement of 
hazardous work environment and prevention of accidents. For building main-
tenance, it strives to prevent all accidents by conducting annual structural 
safety assessments on buildings, elevators, gas facilities, electrical equipment 
(substation, etc.), and pressure vessels as well as mechanical facility mainte-
nance and performance inspection.
Management of Chemicals
NEXEN TIRE is making efforts to mitigate the negative environmental impacts 
by considering impacts across the product value chain. In particular, we man-
age the use of regulatory chemicals by upgrading the global regulatory chem-
ical monitoring system in the stage of product development. We also promote 
the continuous development of eco-friendly materials for application to tire 
products and technologies to improve energy efficiency.
Training for Management of Hazardous Substances
NEXEN TIRE provides training on hazardous substances to all workers in 
plants where hazardous chemicals are handled. In our Yangsan and Chan-
gnyeong plants, online training course is provided once a year as to the 
method of responding to chemical accidents, criteria for handling hazard-
ous substances used in the plants, and directions for using accident preven-
tion and personal protective equipment. As of 2021, a total of 3,317 persons 
received the education, and marked 100% education completion rate.
Advancing the Chemical Substance Management System
With the global chemical-related regulations tightening and the scope of 
application expanding, the importance of controlling the chemicals contained 
in raw materials has amplified. In 2022, NEXEN TIRE advanced the Regulated 
Substance Monitoring Program (RSMP) to accurately check the compositions 
of chemicals contained in raw materials including whether or not the sub-
stances are subject to regulation from the initial stage of raw material devel-
opment. Through the program, we regularly update the list of substances 
subject to regulation according to the EU REACH, the Chemical Substances 
Act*, and in the automotive and tire industries and monitor the total amount 
of such substances in raw materials and tire products. In addition, we regu-
larly check the hazardous substance test reports of suppliers to control the 
hazard caused by chemicals.
*Act on the Registration and Evaluation of Chemical Substances
Process Reestablishment According to the MSDS*
Process Reestablishment According to the MSDS (Material Safety Data 
Sheet)*NEXEN TIRE Europe assesses new chemicals from the perspective 
of workers’ health. In addition, it assesses the MSDS provided by suppliers 
through a professional company. The MSDS is reviewed and revised to meet 
the requirements of GHS** and CLP***.
*MSDS: Material Safety Data Sheet
**GHS: Globally Harmonized System of Classification and Labeling of Chemicals. A system 
aimed at establishing regulations for globally unified classification and labeling of chemicals 
according to their hazard and risk
***CLP: Classification, Labeling & Packaging. A system requiring the submission of identifica-
tion and hazard classification information for hazardous substances and those subject to 
the EU environmental regulations and registration
Status of Training on Hazardous Substances
Category
Unit
2019
2020
2021
Target persons*
Persons
3,134
3,259
3,317
Persons who completed 
training
Persons
3,134
3,259
3,317
Training completion rate
%
100
100
100
*Subject to workers in domestic plants
100%
  Hazardous substance training completion rate in 2021
2021/22 NEXEN TIRE ESG Report      46
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Employees
HR System Operation and Creation of a Good 
Workplace Environment 
NEXEN UNIVERSE
NEXEN TIRE operates the “NEXEN UNIVERSE,” which features a corporate 
value system enabling individuals to think and act together for the organiza-
tion. Through this, we are striving to foster competent members who uphold 
the fundamental values and seek to improve their abilities constantly.
We are committed to foster competent talents by investing in recruitment 
process, employee self-development training program and fair evaluation 
and compensation system. 
Fair Recruitment
NEXEN TIRE has set the NEXEN Tri-C as the ideal image of personnel and 
established a system for recruiting human resources accordingly. We recruit 
talented personnel based on their experiences and job characteristics. The 
recruitment takes place in an open process. To ensure fairness of recruitment 
and provide opportunities to a large number of applicants, we have intro-
duced the AI interview system. The detailed recruiting process varies accord-
ing to our recruitment criteria for new domestic employees, employees for 
domestic sales positions, and experienced employees. For gender equality, 
the interviewers receive training in prior to interviewing applicants. 
NEXEN TIRE’s Recruitment Process
Document screening & 
AI-driven interview
Securing the minimum 
job qualifications 
by determining the 
eligibility of candidates 
1st interview  
(job competency)
Evaluate the task 
performance competency, 
responses to specific 
situations, specialized 
knowledge, etc.
Final interview 
(executive interview on 
personality)
Comprehensively 
evaluate whether the 
candidate corresponds 
to NEXEN TIRE’s 
organizational value
Job Types in NEXEN TIRE
Management
Marketing  
and sales
Quality
R&D
Manufacturing  
support
NEXEN TIRE’s Ideal Personnel (NEXEN Tri-C)
A person capable of making bold attempts to 
change the market in a groundbreaking way with 
original and fresh ideas by thinking outside the box
A person who will broaden NEXEN’s step toward 
the future by taking on challenges that have not 
been attempted by others and experiencing 
trials and errors in order to break through the 
uncertain future
A person who makes the utmost effort in his or 
her own position while successfully working with 
others for a common goal by respecting different 
opinions and ideas
Creativity
Collaboration
Challenge
NEXEN 
Tri-C
NEXEN TIRE Recruitment Website
NEXEN TIRE Recruitment Announcement Website
2021/22 NEXEN TIRE ESG Report      47
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

System Improvement to Enhance Employee Productivity
NEXEN TIRE is making various investments based on the mindset that the happiness of employees is directly correlated to company’s competitiveness. We are revolutionizing our HR system to create a corporate culture for improving employees’ 
satisfaction and productivity by implementing various systems, from innovation in working methods to create a workplace with a high level of employees’ satisfaction to welfare benefits tailored to the lifestyles of the Millennials.
Working Hour Monitoring Campaign
To establish the statutory 52-hour work week system, NEXEN TIRE is conducting a 
campaign to monitor employees’ working hours. Since 2019 in particular, we have 
been operating the attendance registration system we have introduced for the 
qualitative improvement of working hours through quantitative business opera-
tion. Extended and holiday work are allowed only through prior approval, and data 
on monthly working hours are shared by organization to achieve gradual improve-
ment in working hours.
N-Change System
With the goal of improving the job competency of employees and helping them 
develop leadership, NEXEN TIRE has been implementing the N-Change system 
since June 2020 to encourage executives and team managers in domestic plants 
to take a leave at least once a month (monthly refresh). As of the end of 2021, 109 
employees take a leave under the system. N-Change contributes considerably to 
creating an environment where employees can freely take leaves while improving 
their concentration on their work.
Activating the Flexible Working Hours System
Since September 2020, NEXEN TIRE has been implementing the flexible working 
hours system for the Central Research Institute, allowing workers to select their 
working hours. As of the end of 2021, 523 employees are using the system, and 
it contributes considerably to helping employees maintain work and life balance 
and improve their performance.
Implementing the Quarter-day Leave System
In September 2020, NEXEN TIRE introduced the quarter-day leave system that 
allows employees to divide a one-day leave into four two-hour leaves. As of the end 
of 2021, 1,042 employees are using this system. It contributes considerably to creat-
ing a flexible work environment and helping employees, who takes a while to com-
mute, to achieve work-life balance.
2021/22 NEXEN TIRE ESG Report      48
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Fair Workplace without Discrimination
NEXEN TIRE is striving to secure outstanding talents regardless of gender and 
provide various opportunities for employees’ growth by creating a culture 
that respects diversity. In operating the HR system, we apply equal standards 
to both male and female workers in terms of position, performance manage-
ment, and promotion systems; thus preventing discrimination for all workers. 
Job and Career Development Support System
Operating the Job Transfer Support Program “Purple Challenge”    Since 
2019, NEXEN TIRE has been operating the “Career Challenge” system to pro-
vide employees with an opportunity for job transfer. In 2022, the system was 
renamed to “Purple Challenge.” With employees setting their career goals by 
themselves, the company identifies the demand for job transfer by employ-
ees according to their individual career goals and reflects such to the annual 
personnel appointment or when positions become vacant.
Service to Support Reemployment    NEXEN TIRE is making efforts to pro-
vide reemployment support service–such as career and aptitude examina-
tion, career design, job placement, and training for reemployment or business 
establishment–to workers who are scheduled for transfer or retirement, etc.
Fair Compensation
NEXEN TIRE has established a transparent, objective personnel assessment 
and compensation system to fairly assess and evaluate employees’ efforts. 
In 2021 in particular, we promoted change to a reasonable assessment and 
compensation system through external global consulting to provide persons 
producing the best outcomes with preferential treatment that is more read-
ily accepted by employees. In 2022, we are planning a change to improve the 
fairness and feasibility of assessment by reflecting the performance report 
and difficulty levels of each target. In terms of the assessment grade, we are 
preparing to introduce and implement an absolute assessment system.
The personnel assessment results are used in talent fostering, employee 
promotion, compensation and leader selection. Considering that the annual 
salary adjustment rate and bonus amount differentiated according to the 
assessment result, we are providing fair compensation based on employees’ 
performances without discrimination in terms of age and gender. We held a 
presentation in March 2022 for the successful establishment of the system 
change, and the Human Resources Team sincerely responds to employees’ 
individual inquiries about the system.
NEXEN TIRE’s Compensation Process
Compensation
Job management
Gap Analysis
Education/ 
Development
Performance management system
Competency
Assess-
ment
Continuous 
monitoring
Target 
setting
Performance
2021/22 NEXEN TIRE ESG Report      49
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Competency Building and Talent Fostering
Along with the rapid change in company’s management environment and work mode, NEXEN TIRE operates educational programs to foster “NEXEN-type talents” 
who will get through the waves of new change. We started making changes based on continued research and dedication to provide our employees with the best 
and optimal learning opportunities.
Creating an Environment for Employees’ Self-initiated Learning
Operating the NEXEN Learning Academy (NLA)    Considering the changed 
work environment brought about by COVID-19, NEXEN TIRE operates the 
NEXEN Learning Academy (NLA) where employees can engage in learning 
at anytime, at anywhere. Employees can unlimitedly access various com-
petency building courses offered at NLA. Through the partnership, we also  
provide YouTube and micro learning contents.
NEXEN-type Talent Fostering
NEXEN TIRE operates a range of educational programs to support job perfor-
mances for talent fostering.
NLA Website
NEXEN TIRE’s Education System
Phase 1
Basic competency
Leadership competency
Job competency
Core value
Sustainable management
Performance 
management
Change 
management
Talent fostering
General
Specialized
Executives
NEXEN UNIVERSE  
spread
Special 
themed 
lecture 
(UNIVERSE 
Class)
ESG & sus-
tainability 
training
Performance 
management 
executives’ course
Leadership of 
executives
Interviewer executives’ 
course
Remote training 
External training
Team managers
Performance 
management team 
managers’ course
Leadership of 
team managers
Interviewer team 
managers’ course
Language
Strategy
Business  
Administration
Accounting
Finance
Procurement
HR
Education
Marketing
Sales
R&D
Production
Logistics
…
New team managers’ course
Expatriate 
fostering 
course
Expatriate 
reinstate-
ment 
course
Team  
members
Senior  
managers
NEXEN 
UNIVERSE 
introduc-
tory course
NEXEN 
UNIVERSE 
practice 
course
Performance 
management 
advanced course
Leadership 
for change 
implementation
(1-day job-
themed)
Data reporting
EXCEL statistics
Digital literacy
Digital marketing
Technical 
document writing
Report review
Time management
…
Tire 
course
R&D Subdivision
PLM system, design automation
R&D open innovation
R&D patent seminar, etc.
Production Subdivision
SPC expert fostering
Shift/field leader training
ISO 45001 internal reviewer course
Sales Subdivision
Mr. Roadian training course
Service manager training course
Rental master training course
Intensive 
English 
course / 
Language 
in Com-
pany
Learning 
organiza-
tion  
CoP 
course
Internal 
instructor 
fostering
Senior manager promotion course
Managers
Performance 
management 
advanced course
Leadership for 
problem solving
Manager promotion course
Assistant  
managers
Performance 
management basic 
course
Leadership for 
work initiatives
Assistant manager promotion course
Staff
Performance 
management basic 
course
Leadership for 
self-management
Introductory course & mentoring course for new employees
Sexual 
harassment 
and 
discrimination 
prevention in 
workplace
Occupational 
health and 
safety
Awareness 
improvement of 
the disabled
Privacy 
protection
Phase 2
R&D  
Subdivision
Production  
Subdivision
Sales  
Subdivision
2021/22 NEXEN TIRE ESG Report      50
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

NEXEN UNIVERSE Leaders’ Training
To support leaders in the position of team manager or higher who will lead NEXEN TIRE’s future, the “NEXEN TIRE Leadership Program” is provided on an annual 
basis. The program consists of courses on organization management, performance management, personnel management, and competency building as the lead-
ership elements. New training programs are also being operated to reinforce communication between leaders and followers, which has been weakened due to 
prolonged COVID-19.
Building Global Competency
The NEXEN Learning Academy provides unlimited learning content to help 
employees communicate freely in foreign languages. It also offers intensive 
video learning as a preparatory course for expatriates. In addition, we seek to 
enhance the training program for expatriates by renewing the cross-cultural 
training program.
In-house Talent Management System for Talent Fostering 
NEXEN TIRE expands the target of mentoring service to experienced employ-
ees and newly appointed team managers to support the adaptation to  orga-
nization and the performance in their new duties.
Organizational Culture
NEXEN TIRE sets improvement goals on working processes and methods on 
each BG to improve their work efficiency. Through the flexible working sys-
tem, telecommuting, and “Core Time” for two hours a day, we provide work-
ing modes optimized to individual circumstances and create an environment 
where employees can immerse themselves in their work uninterrupted.
Strengthening Organizational Communication: Operating NEMO, 
a Gathering of NEXEN Members
NEXEN TIRE opened the “NEXEN Gathering - NEMO” website in 2020. NEMO 
is used as a platform for promoting small gatherings among employees 
wherein they share used goods, as well as for notifying employee benefits 
through corporate partnerships. We are continuously developing and shar-
ing new programs with our employees’ participation, such as regular in-house 
broadcasting, video content production for intergenerational understanding, 
and in-house radio broadcasting during lunchtime.
NEMO
* Targeting employees of domestic worksites and dispatched workers (expatriates, advisers, non-executive directors, security staff, and vehicle drivers excluded)
1.9sessions
   Average training sessions per employee
46,333hours*
Total training hours
11.5hours*
   Average training hours per employee
NEXEN TIRE’s Leadership Program
Education 
Roadmap
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Performance  
management
Organization  
management
People  
management
Organization  
managemen t
Performance  
management
SEASON BREAK
People  
management
Performance  
management
Performance  
management
Change  
management
(1 Day)
Organizational 
goal and  
strategy
(Video  
conference)
Clear work  
distribution and 
instruction
(Video  
conference)
Fostering by 
situation
(Video  
conference)
Cooperative  
organization 
building & stra-
tegic recruit-
ment (interview 
competency)
(Video  
conference)
Effective KPI 
interim assess-
ment
(Video  
conference)
Motivation, 
authority dele-
gation
(1 Day)
Fair perfor-
mance assess-
ment
(Video  
conference)
Enhancement 
of assessment 
and interview 
skills
(1 Day)
Change  
Management 
in the new  
normal era
Linked  
Education
Executive seminar
Executive seminar
Executive seminar
Online learning 
(e-learning, micro learning, etc.)
Insight special lecture
Knowledge letter service
2021/22 NEXEN TIRE ESG Report      51
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Organizational Culture Improvement Activities
Purple Wave Campaign
NEXEN TIRE conducts the “Purple Wave” Campaign to lay the foundation for an 
organizational culture that values creativity, promotes cooperation, and takes 
on new challenges and strengthen communication and trust among employ-
ees. We are strengthening internal training as part of the vision and value inter-
nalization activity. In addition, while discovering core value success cases, we 
are preparing to hold the “Purple Awards” for spirit to take on challenges and 
lessons learned from bold attempts that unfortunately did not lead to success. 
We are also operating the Purple Mentoring program, which is for the execu-
tives and members of different organizations to communicate through social 
contribution activities, and Purple Point system for the participants to exchange 
small gifts to express gratitude for work-related assistances received.
Efficient Meeting and Reporting Culture
To promote non-authoritative, efficient reporting process, NEXEN TIRE imple-
ments the OPR (One Page Report) document standard. While striving to pro-
vide clear and detailed work instructions and feedback from senior workers, 
we are encouraging direct reporting between the persons concerned to pre-
vent delays in reporting, caused by the absence of people in the line of report-
ing. We are also improving the speed of operation by recognizing various 
reporting methods, such as messenger, text message, e-mail, and note. In 
addition, the duration of sharing minutes is analyzed and notified across the 
company on a monthly basis to avoid unnecessary meetings, and all employ-
ees are participating in the effort to create a meeting culture that focuses on 
results and execution.
Operating an In-house Proposal System (N’Dea)
NEXEN TIRE is operating the “N’Dea” system, an in-house proposal system to 
collect creative ideas from employees and reflect them to the company man-
agement. It shall be the third-session in 2022, and ever since launching the 
N’DEA system in 2019, it  provides employees with an opportunity to partici-
pate in the company’s development. Over the past three years, a total of 298* 
ideas have been received through the N’Dea system. 
For the second season of N’Dea in 2021, the operating method was improved 
from the previous season. Through the system improvement, the conve-
nience of employees’ idea proposal has also been increased. At the same 
time, to activate the system, the compensation criteria have been strength-
ened. For the participants in the second season of N’Dea, for example, online 
coffee coupons were presented as basic rewards, and the best idea was 
received prize money of KRW 15 million.
As NEXEN’s take on the Hack-a-thon contest wherein participants come up 
with ideas, produce outcomes, and prove the feasibility within a limited span 
of time, N’ack-a-thon is highly effective in strengthening idea execution and 
securing the fairness and transparency of the result. Therefore, it will again be 
applied to the third season of N’Dea.
Lastly, among ideas suggested by employees, we select those that can be 
implemented swiftly to ensure operational efficiency. We hope the N’Dea 
system will serve as a space for communication where our employees can 
exchange their individual opinions through direct participation.
*N’Dea - 215 ideas (June 2019 - Dec. 2020) + NEMO - 82 ideas (Dec. 2020 - June 2022)
298cases
Number of ideas received over the past three years through the N’Dea system
N’Dea  
Season 1 HERO
(1st place)
Introduction of tracking system to prevent  
market disruption
Expected to build customer trust, strengthen sales power, 
help manage sales prices, and prevent sales drop
N’Dea  
Season 2 HERO
(1st place)
Consumption of and marketing for returned rubber 
through collaboration with EIDER
Expected to produce effect for consumption of and mar-
keting for returned rubber through tire compound appli-
cation to the shoes of outdoor brand 
2021/22 NEXEN TIRE ESG Report      52
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Labor and Management Promoting Shared Growth
Labor Union
NEXEN TIRE’s labor-management wage bargaining and collective bargaining 
agreement are executed every year and every two years, respectively. For the 
wage and collective bargaining agreement in 2020, labor and management 
agreed on a wage freeze without negotiation to share the difficulties caused 
by the global economic stagnation and the company’s sales decrease as a 
result of the COVID-19 pandemic. In 2021, labor and management achieved 
an agreement from wage negotiation in a short period of time based on 
mutual trust and contributed to increasing the company’s sustainable devel-
opment and the productivity of all employees by improving working condi-
tions and welfare. In addition, at the quarterly labor-management council 
meetings, employees’ health, safety, work environment, and welfare facility 
improvement, etc. are discussed. Moreover, labor and management execu-
tives communicate with the CEO through the annual meeting of the board 
of representatives. NEXEN TIRE’s labor and management have recorded zero 
strikes for 30 consecutive years. 
With a considerable number of automotive companies that are highly relevant 
to the tire industry falling under the influence of militant labor unions, the repet-
itive strikes each year and the establishment of multiple labor unions result in 
conflict among labor unions. However, NEXEN TIRE has achieved an exceptional 
record of zero strikes for 30 consecutive years. This is because, although the 
owner of the company had changed several times until the company name was 
changed to NEXEN TIRE, the belief that “a stable company guarantees employ-
ees’ stability” has been strongly instilled among employees. Communication 
between labor and management has been emphasized, based on the under-
standing that neither the company nor employees can develop without win-win 
cooperation. We established a foundation of trust between labor and manage-
ment by transparently disclosing our management status and discussing with 
the labor union to achieve agreement on material issues.
Activities for Labor-Management Harmony and Stabilization
Labor-Management Communication    The labor-management relation-
ship built through communication contributes to the organizational culture 
of trust and harmony. The union respects the company’s right to conduct 
business and does not interfere in the company’s rightful exercise of such 
right, while the company faithfully assists in the union’s decision making by 
providing documents and data necessary for the union operations. For suc-
cessful communication between labor and management, NEXEN TIRE holds 
quarterly labor-management council meetings and labor-management talks. 
Through the meetings, labor and management cooperatively perform activi-
ties to improve the work environment and welfare facilities.
NEXEN TIRE’s Labor Union
Category
Description
Union Name
NEXEN TIRE Labor Union of the Federation of Korean Rub-
ber Industry Trade Unions
Date of Establishment
June 2, 1961
Number of Members*
2,920 (as of the end of Dec. 2021)
*Based on technical workers (excluding assistant managers and those in higher positions, 
persons performing specific duties, commissioned workers, day laborers, etc.)
Wage agreement signing ceremony in 2021
˙	 Labor-Management executives holding the labor-management council  
meeting every quarter
˙	 Discussing items on the internal work environment and employees’ safety 
and health
Labor-Management Council
˙	 Quarterly meetings held with the attendance of labor union executives and 
team/part leaders of each department
˙	 Collecting suggestions and complaints from department members,  
discussing plans to improve the work environment and conditions
˙	 Providing feedback on items discussed in the previous quarter
Labor-Management Talk
99.7%
  Labor Union Membership Rate
30years
Zero strikes
21
Number of items processed through the 
labor management council
2021/22 NEXEN TIRE ESG Report      53
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Activities for Labor-Management    Harmony Around October each year, 
NEXEN TIRE’s labor and management hold a sports day event by department 
to promote regular engagement and build harmony among participants. We 
make efforts to create an opportunity for company-wide exchange by holding 
and expanding the scope of sports day events to compete for the awards of 
the labor-management council chairperson and the head of the Global Man-
ufacturing BG (Business Group), etc.
Outcomes of Labor-Management Cooperation    In May 2021, as a result of 
the effort to place emphasis on trust between labor and management, which 
led to the accomplishment of zero strikes for 30 consecutive years, NEXEN 
TIRE won the grand prize at the ‘33rd Labor-Management Cooperation Award’ 
hosted by the Korea Enterprises Federation.
We will continue dedicating the utmost effort to creating a cooperative cul-
ture of shared growth between labor and management with which we ensure 
employees’ happiness and contribute to the local communities by preventing 
industrial accidents and strengthening ESG activities.
Effort to Resolve Employees’ Grievances
NEXEN TIRE operates the “Change Agent (CA)” system to collect employees’ 
grievances and opinions. Through the system, we collect opinions about wel-
fare, CA activities, policies, and communication, etc, and develop solutions 
through discussion. Having continuously implemented the CA system since 
2020, we will resume the activities that have been suspended or have not 
been conducted due to COVID-19.
Supporting Employees’ Welfare and Benefits
Childbirth and Childcare Support System    NEXEN TIRE provides female 
employees with one-day monthly unpaid menstrual leave and 90-day leave 
when pregnant (120 days when pregnant with more than one baby). We also 
operate a maternity support system and a pre-mother care system to provide 
leave for at least 45 days (60 days if pregnant with more than one baby).
In-house Childcare Center    NEXEN TIRE operates in-house childcare centers 
at the key worksites, such as the Central Research Institute and manufacturing 
plants, to help employees work worry-free. To ensure the high-quality educa-
tion and safety of children, we maintain the number of teachers above the legal 
standards by age, receive educational programs from specialized institutions, 
and provide nutritional meals by using separate cooking facilities. Apart from 
government subsidies, all operating expenses are fully borne by the company to 
create a work environment where employees can take care of their children and 
work at the same time. At the parent satisfaction survey (on a scale of five points) 
conducted in 2021, we recorded an average score of 4.85 points, which consists 
of 4.9 points for childcare environment, 4.8 points for childcare program and 
interaction, 4.8 points for openness of facility operation and home-connected-
ness, and 4.9 points for nutrition, safety and health.
Prize Winning at the 2021 Labor-Management Cooperation Award (May 2021)
Change Agent
Change Agent Activity Process
etc.
· Reward trip
Life
· Commuter bus (manufac-
turing plants)
· Gift on holidays
· Free supply of tires
Leisure
· Summer vacation 
expenses
· In-house communities
· Recreational facilities
Health
· Comprehensive health 
checkup
· In-house gym
· Affiliated hospital
Family
· Children’s educational 
expenses
· Family events
Collecting grievances 
concerning welfare and 
self-development, etc.
Implementing response 
through e-mail due to 
COVID-19
Regular/irregular
Collecting employees’ 
grievances and opinions 
(e-mail, face-to-face/
contactless meetings)
Providing responses to 
and improve suggestions 
about issues
Sharing the overall 
improvement and 
operation results 
2021/22 NEXEN TIRE ESG Report      54
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Customer Satisfaction Management
Customer Satisfaction Promotion System
To provide higher-quality products and services to customers (car mak-
ers, general consumers, and dealers), NEXEN TIRE strives to promote con-
tinuous communication, secure product competencies, understand the 
needs of various customers through win-win management with suppliers, 
and reflect them to the products. In particular, we have been continuously 
collecting VOCs from general consumers (claiming customers), and we are 
making efforts to reflect the needs identified through consumer feedback to 
our after-sales service system and product development. In addition, we ana-
lyze data from the customer satisfaction call center, a VOC collection channel, 
monthly and quarterly to reflect the customer VOCs in detail.
Organization for Customer Satisfaction
NEXEN TIRE is operating the customized response strategies it has developed 
at various BGs, such as Customer Satisfaction Team, Global OE Quality Team, 
NEXEN LEVEL Team, Brand Communication Team, and Europe OE Technical 
Team, targeting customers by region and type.
Customer Satisfaction Promotion Activities_Car Makers
The global OE business sector builds relationships of trust with automotive 
companies by providing them with technologically innovative products. In 
addition, through continuous R&D competency improvement, it develops 
products optimized for new vehicle models; thus providing safety-based 
added values to the final consumers. As a result of such effort, NEXEN TIRE 
won recognition for supply stability and technological value from a number 
of global automotive companies. In 2021, we proved our value by supplying 
tires (OE) for a number of new vehicle models such as Staria of Hyundai Motor 
Company, EV6 of Kia, and A3 of Audi. We will continue promoting sustainable 
shared growth with customers by maintaining a relationship of mutual trust 
based on efforts to fulfill our social responsibilities.
Sharing the Product Operation Policy with Car Makers    NEXEN TIRE 
strengthens the stability and reliability of the quality of products supplied to 
customers by holding meetings and inspecting the procedures of compa-
ny-wide OE supply contract review. With the goal of developing and supplying 
products required by automotive companies at the right time, we preemp-
tively develop supply-standard products, share the details with customers on 
a regular basis, and consequently form a close network with them. In addi-
tion, to reflect the product operation policy to our mid to long-term product 
strategies and customers’ development policies, we have established a coop-
erative system with the relevant subdivision.
Supplying Products that Meet the Technical and Quality  
Requirements
Tire Supply for 8th-generation A6 and 4th-generation A3 of Audi    NEXEN 
TIRE started tire supply for the 8th-generation A6 and 4th-generation A3 mod-
els of Audi, a premium German automotive company. Based on technological 
power and expertise built through continued R&D investment and effort for 
quality improvement, we are successfully building a cooperative relationship 
with the premium German automotive company.
Designation as “2020 Best Supplier of the Year” by Stellantis
In 2021, NEXEN TIRE won the 
“2020 Best Supplier of the Year” 
by Stellantis, a global automotive 
company. At the award ceremony 
held online due to COVID-19, 
NEXEN TIRE became the only tire 
company to be named best company in the “Competitiveness” category. We are 
dedicated to becoming a supplier that grows with customers. With the best sup-
plier designation as momentum, we will strengthen our competitiveness in the 
global market based on excellent quality and technological power.
Winning the GM Supplier Quality Excellence Award 
Winning the GM Supplier Quality Excellence 
Award for Eight Consecutive Years     NEXEN TIRE 
was selected by global automotive company Gen-
eral Motors as “Best Supplier of the Year” for eight 
consecutive year at the 2021 GM Supplier Quality 
Excellence Awards. The award ceremony has been held annually since 1992. 
Through quality, logistics, and supply chain assessment, awards are given to 
suppliers that have contributed to GM’s value creation and innovation. 
Customers
Definition of “Customer” in Customer Satisfaction Management
Car makers  
(automotive  
companies)
General  
consumers
Dealers
Others
2021/22 NEXEN TIRE ESG Report      55
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Customer Satisfaction Promotion Activities_ 
General Consumers
In Korea where most households own a vehicle, customer interest in tire ser-
vice is high. Customers sharing their experiences and feedback in the social 
media affect the consumption trends, demanding innovations and changes 
in the tire industry. Tire services are gradually evolving into a new service 
platform presenting a completely different model of customer satisfaction. 
NEXEN TIRE is constantly developing a variety of highly reliable customer ser-
vices to meet customer needs and match the consumption trends. 
Improving Customer Satisfaction
Claim Consultation    NEXEN TIRE operates service centers across the coun-
try to provide swift consultations and services to customers. One-on-one cus-
tomized consultations are conducted at the designated service centers.
Happy Call    To receive the opinions of customers and assess their satisfac-
tion and quality of consultation service provided, NEXEN TIRE makes a Happy 
Call to customers who received services and claim consultations. We are striv-
ing to provide effective follow-up management by continuously monitoring 
our service quality.
Product Warranty
With confidence in the product and service quality, NEXEN TIRE has been 
operating the special warranty program since 2007, targeting customers pur-
chasing N’FERA and winter tire products. All customers who purchased the 
products covered by the special warranty are offered a one-time replacement 
with a new product when they raise claims even if the defect is caused by user 
negligence, not manufacturing negligence.
Strengthening Communication with Customers
NEXEN TIRE strives to become a customer-friendly brand by organizing 
events where customers can participate to obtain various experiences. We 
will communicate more actively and build closer relationships with customers 
by holding various brand events.
NEXEN TIRE’s NEXT LEVEL Golf Day    On April 25, 2022, NEXEN TIRE held 
the “NEXEN TIRE NEXT LEVEL Golf Day” at Gaya Country Club in Gimhae-si, 
Gyeongsangnam-do by inviting customers. This event was held targeting cus-
tomers who purchased or rented “The New N’FERA AU7,” a premium four-sea-
son tire released early this year through renewal. Customers participating in 
the event were provided with an opportunity to play golf on the ninth NEX-
EN-Saintnine Masters course along with a field lesson by a professional golf 
player. For the convenience of the selected customers, we prepared a range 
of benefits including a welcome kit.
80th-Anniversary Event for Customers Making Purchases    NEXEN TIRE 
held an 80th-anniversary event targeting customers purchasing or rent-
ing four of the N’Priz, a four-season high-performance tire ensuring stable 
driving performance, and Roadian GTX, an SUV tire, as well as all products 
of N’FERA, the company’s representative premium high-performance tire. 
Through a draw, 8,889 of the customers were presented with gifts.
NEXT LEVEL Golf Day
NEXEN - Saintnine Masters 2022
80th-Anniversary Event
Customer Complaint* Handling
Category
Unit
2019
2020
2021
Customer complaints received
Sessions
3,303
2,418
1,755
Complaint handling rate
%
98.8
99.3
99.9
*Subject to customers who raised claims
2021/22 NEXEN TIRE ESG Report      56
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Advancing Customer Service
NEXT LEVEL GO    The NEXT LEVEL service, NEXEN TIRE’s new service, is record-
ing continuous growth in line with the latest trend of contactless order, con-
tactless tire replacement service, and minimization of contact with other peo-
ple amid the COVID-19 pandemic. Launched in January 2020, the NEXT LEVEL 
service was used by 7,004 customers in the first year. The user count has since 
increased to 31,028 in 2021 and 19,894 by May 2022, totaling 57,926 so far. As 
such, the service is being used by a great number of customers. With the society 
returning to normalcy, majority of customers are selecting the service to make 
use of their personal time. As a result, the rate of customers using the service 
has increased from 44% in the first year of launch to 61% in 2021 and 69% as 
of May 2022. In addition to service expansion across the country and forging of 
partnership with Coupang, NEXEN TIRE is continuously advertising the conve-
nience of the NEXT LEVEL service through various marketing channels. We are 
also striving to develop additional services to meet customer needs.
NEXT LEVEL Rental    Having launched Korea’s first special tire rental ser-
vice by veering away from the conventional lump-sum payment purchasing 
model, NEXEN KOREA places the highest priority on creating customized 
services to meet the changing customer needs. In 2021, NEXT LEVEL Rental 
started a warranty service to replace damaged tires due to customer negli-
gence free of charge during the contract period in order to provide differen-
tiated service to achieve customers’ satisfaction. In addition, customers using 
relief assurance service (economic assurance product + alignment service) 
were additionally provided with a warranty service of free tire replacement for 
products mounted on vehicles with mileage of less than 30,000km since tire 
replacement and which have been affected with wear.
The “Let NEXEN do it for you” campaign, which was launched in March 2022, con-
veys NEXEN TIRE’s commitment to meeting customer needs that are diversifying 
further amid the fast-changing trend. 
In addition to the differentiated NEXT LEVEL services, we strive to improve cus-
tomer convenience at all contact points, from tire replacement to care, rental, and 
order, by providing products optimized to various vehicle models. In the global 
market, we are continuously conducting a brand campaign based on product per-
formance. We will develop into a brand that always communicates closely with cus-
tomers through the website and social media channels.
NEXEN TIRE’s Advertising Campaign
Promotional Event for BS Customers in Korea
Rate of NEXT LEVEL GO Service Use
2020  
(Launched) 
44%
2021 
61%
May 2022  
69%
NEXT LEVEL Website
NEXT LEVEL Rental Website
2021/22 NEXEN TIRE ESG Report      57
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Customer Satisfaction Promotion Activities_Customers
Supporting Customers’ Marketing Activities
NEXEN TIRE supports the marketing activities of global customers in order to 
assist in their sales and profitability improvement. We provide financial sup-
port to cover the cost of various online and offline marketing activities per-
formed by our customers in their respective countries. Furthermore, along 
with data and business operating guidelines that can be used for marketing 
purposes, interior and exterior guidelines, display items and promotional 
tires are provided for store interior improvement and product advertisement. 
In particular, for professional and improved customer service by our sales 
personnel, we provide an online product education service.
Participation in Tire Cologne 2022    NEXEN TIRE participated in “Tire 
Cologne 2022,” an exhibition held in Germany. Visited by 12,000 people 
from approximately 100 countries over the course of 3 days from May 24 
to 26, 2022, Tire Cologne is a global exhibition for the tire industry such as 
tire, wheel, and automotive parts makers. Participating in the exhibition for 
the second time following 2018, NEXEN TIRE introduced “N’Blue 4Season 2,” 
a new tire for all seasons that is optimized to the European environment. In 
addition, we exhibited “N’FERA Sport,” which is supplied as a new vehicle tire 
for “Panamera” of Porsche, together with the vehicle. We further strength-
ened our presence as a global premium brand by exhibiting “N’FERA Sport 
EV,” an EV tire supplied for Kia’s electric vehicle “EV6,” and other products 
developed exclusively for electric vehicles in the “EV Zone.”
2022 Golden Tire Awards    NEXEN TIRE organizes an annual event to  
thank and congratulate dealerships and suppliers that support and grow with 
the company based on trust despite the fierce competition in the domestic 
market. In 2021 and 2022, instead of holding the award ceremony, we visited 
the prize winners in person and presented them with the awards in compli-
ance with the government’s policy of practicing social distancing and prohib-
iting gathering amid COVID-19. At the Golden Tire Awards held in May 2022, 
a total of 59 dealerships received the awards. The top prize winner was pre-
sented with a plaque together with a department store gift voucher and a new 
product, the N’FERA AU7 tire.
2021/22 NEXEN TIRE ESG Report      58
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Customer Satisfaction Performance
NEXEN TIRE focuses on winning customers’ trust and strives to achieve customer satisfaction.
Winning the Trade, Industry, and Energy Minister’s Award at the 
23rd Korea Brand Awards
Having launched Korea’s first tire rental service in 2015, 
NEXEN TIRE has been making continued efforts to pro-
vide differentiated customer service. As a result of such 
efforts, we won the Trade, Industry, and Energy Minis-
ter’s Award at the 23rd Korea Brand Awards, an event 
hosted by the Ministry of Trade, Industry, and Energy 
and organized by the Institute for Industrial Policy Studies (IPS).
Korea Brand Awards are presented by the government to companies, institu-
tions, and local governments that improved industrial competitiveness based 
on creative brand management and contributed to national economic develop-
ment through remarkable brand development. 
Winning the National Service Awards for Two Consecutive Years
NEXEN TIRE achieved the remarkable feat of 
winning the National Service Awards in the 
category of general tire service for two con-
secutive years.
Customer Satisfaction Index
Top Ranking in GCSI (Global Customer Satisfaction  
Competency Index) Maintained 
Ranked No. 1 in GCSI’s Tire Category for 13 Consecutive Years     To secure 
international customers’ brand reliability and loyalty, NEXEN TIRE is seeking 
to acquire GCSI certification issued by the Global Management Association, 
a research and assessment subsidiary of the Ministry of Trade, Industry, and 
Energy. As of 2022, we topped the tire category for the 13 consecutive year.
GCSI Certification Ceremony in June 2022
This is a global assessment system established with the goal of enhancing aware-
ness of global customer satisfaction management and supporting high-quality 
customer satisfaction management by providing global industrial competitive-
ness indicators. In 2021, the assessment was conducted online targeting approx-
imately 97,000 valid samples. The assessment items consist of customer value, 
global competency, and loyalty as well as customer satisfaction elements.
*What is GCSI (Global Customer Satisfaction Competency Index)?
NEXEN TIRE’s Customer Satisfaction Scores
2019 
98.9points
2020 
96.8points
2021 
95.6points
Korea Brand Awards Ceremony in December 2021
2021/22 NEXEN TIRE ESG Report      59
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Quality Management System
Quality Management System
To achieve customer delight beyond customer satisfaction, NEXEN TIRE is 
actively reflecting global quality requirements to the business operations and 
continuously improving the overall quality system that encompasses pre-man-
ufacturing quality, manufacturing quality, and customer quality management. 
Every year, an internal audit is conducted to inspect the status of customer 
requirement reflection. We are striving to ensure customer safety and achieve 
customer delight through organic cooperation among business sectors.
Quality Management Organization
NEXEN TIRE’s quality management organization is largely divided into the 
Global Quality BG and Global Quality BS, which are subdivided into pre-man-
ufacturing manufacturing, and customer quality management organizations 
targeting domestic and overseas markets.
Quality Management Improvement Activities
Pre-manufacturing Quality
Strengthening the Internal Quality System    NEXEN TIRE conducts com-
prehensive monitoring to understand the needs of stakeholders, carries out 
strengthened internal audit on all processes, continuously improves on the 
weaknesses detected, and undergoes verification annually through third-
party certification.
Strengthening Risk Management    NEXEN TIRE focuses on activities to 
achieve zero-defect quality assurance by conducting quality management on 
prototypes in the stage of development, quality management of raw and sub-
sidiary materials based on the strengthened quality control of suppliers, and 
management of risks that can occur across all processes.
Manufacturing Quality
Error Proof System    In order to prevent fundamentally potential defects 
caused by operators’ mistakes and unexpected malfunction of production 
facilities during standard operations in each process, NEXEN TIRE has intro-
duced the Error Proof System to each process. 
Promoting Zero Quality Issues    NEXEN TIRE strives to achieve zero quality 
issues by establishing a quality assurance system for intermediate products 
and mixing agents based on the reinforcement of statistical quality control 
and a quality assurance system for finished products based on strengthened 
reliability test.
NEXEN TIRE’s Quality Policy
NEXEN TIRE’s Quality Assurance
“NEXEN TIRE is an advanced enterprise that pursues customer delight 
through continuous quality innovation activities to secure the world’s 
top-notch quality.”
The quality policy of NEXEN TIRE Corporation is described above. To 
implement the policy, quality goals shall be established and reflected 
to the management plan, with all employees dedicating efforts to ful-
filling the goals.
To this end, NEXEN TIRE has established a quality system that com-
plies with the IATF 16949 and the PL law, with the CEO declaring sup-
ply only of products that comply with product and environmental laws 
and regulations and which can satisfy customers through continuous 
R&D based on product safety and reliability as well as accumulated 
technological power.
In relation to the quality management system, all organizations and 
employees shall observe the following:
1. Actively respond to customer requirements;
2. Improve competitiveness by eliminating elements generating 
waste in the process of design and manufacturing;
3. Improve the quality level through continuous improvement activities.
Quality Management Organization System
(As of Apr. 2022)
(EU)  
Quality 
Team
Customer 
Satisfac-
tion Team
Quality 
Manage-
ment 
Team
(CP)  
Quality 
Team
(G.OE) 
Quality 
Team
(QP)  
Quality 
Team
Quality 
Assur-
ance 
Team
Global Quality  
Management BS
Global Quality  
Management BG
(EP)  
Quality 
Team
Definition of “Customer” in Quality Management
Car makers
Actual users
2021/22 NEXEN TIRE ESG Report      60
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Quality Management Improvement Activities
Customer Quality
Quality Monitoring Through Alarm Operation    To secure reliability for 
product quality in the global market, NEXEN TIRE regularly conducts sys-
tematic quality monitoring. When a quality issue arises, an alarm function 
is used to provide quick feedback to the research, manufacturing, and man-
agement departments.
Quality Management of Developed Products    The characteristics of tar-
get markets are analyzed and reflected from the stage of development plan-
ning. NEXEN TIRE strictly inspects performance requirements at each stage 
from product performance enhancement to finished tire product develop-
ment. Through this process, we ensure that products suitable for each mar-
ket are provided.
System for Response to Recalls    In case risk of damage to life, body, or 
property of consumers is expected due to a major product defect, NEXEN TIRE 
swiftly decides a recall, reports it to the relevant organizations, and notifies 
the details of the recall to customers and sellers, etc. To customers who pur-
chased the defective product in the market, we notify free replacement with 
normal tires and provide related services.
Systemization of Change Management for Mass-produced Products    
NEXEN TIRE developed a system of systematizing change management for 
raw materials and intermediate products as well as processes and design 
stage. We dedicate efforts to securing the consistent quality of products sup-
plied to customers by conducting standardized quality inspections on the 
changed products.
Measures to Prevent Recurrence of Product Issues    By developing 
improvement measures in relation to product issues, NEXEN TIRE makes con-
tinuous efforts to prevent the recurrence of the issues and secure productivity 
of high-quality products.
Quality Expert Fostering
To meet the increasing demand of stakeholders, NEXEN TIRE fosters qual-
ity experts and provides training to employees as required in each area of 
business. In particular, we produce and distribute educational materials to 
achieve customer quality satisfaction. 
Support for Innovation Activities in Manufacturing Plants
NEXEN TIRE activates quality control circle activities centering on the TPM 
(total productive maintenance) and consequently induces the productivity 
improvement of technical employees as well as efficient development and 
innovation of plants. 
We are solving issues in the areas of production, quality, loss, cost, delivery, and 
safety (PQLCDS) by applying employees’ proposals and making improvement 
of the manufacturing environment and sites based on the 3R 5S activities.
 
Production and Distribution of Quality Training Data
Korean Standards Association’s 60th-Anniversary Event (Mar. 2021)
Quality Management Performance
Winning a Plaque of Merit on the 60th Anniversary of the Korean 
Standards Association
At the 60th-anniversary event of the Korean Standards Association (KSA) held 
on March 11, 2021, NEXEN TIRE was given a plaque of merit together with 
eight other companies including Shinhan Bank, LS Electric, and Poongsang. 
Established in 1962 according to the Industrial Standardization Act, KSA is an 
organization that specializes in global standard and quality management. It 
provides services to the International Organization for Standardization (ISO) 
and ESG Management Consulting as well as the Korean Industrial Standards 
(㉿, KS), Korea’s domestic industrial standards. The event was attended by 
the heads of the relevant organizations such as the President of the Korean 
Agency for Technology and Standards and 1st Vice Minister Jin-kyu Park of the 
Ministry of Trade, Industry, and Energy.
Korean Standards Association’s 60th-Anniversary Event (Mar. 2021)
NEXEN TIRE is performing various activities with the Korean Standards Asso-
ciation, such as receiving consulting service on company-wide TPM field inno-
vation activities, practicing quality management, complying with domestic 
and international standards, and acquiring certifications. 
2021/22 NEXEN TIRE ESG Report      61
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Designation as Excellent Company in Quality Competitiveness at 
the 47th National Quality Management Convention in 2021
In 2021, NEXEN TIRE’s Changnyeong Plant was 
selected as Excellent Company in Quality Compet-
itiveness at the 47th National Quality Management 
Convention, an event hosted by Ministry of Trade, 
Industry, and Energy subsidiary Korean Agency for 
Technology and Standards and organized by the 
Korean Standards Association. This award is presented to companies that 
produced outstanding performances through quality control and contin-
uous innovation. In 2021, a total of 29 companies were selected to receive 
the award. The qualification as an outstanding company is given through an 
assessment on 13 items including strategy, management system, informa-
tion management logistics, small group activities, and proposal activities. 
As a result of performing strict quality control and quality innovation activities and 
continuously providing high-quality customer services including tire replace-
ment and rental services, NEXEN TIRE succeeded in acquiring the certification.
Winning Presidential Medals at the National Quality Control  
Circles Contest for 11 Consecutive Years
NEXEN TIRE internally holds the annual quality con-
trol circles contest. Since 2011, we have also been 
participating in the National Quality Control Circles 
Contest through regional preliminaries and winning 
Presidential medals each year. In 2021, our excel-
lent field competencies were again recognized by 
winning the Presidential Silver Medal in the catego-
ries of field improvement and non-manufacturing 
with “work time reduction through mold replacement process improvement” 
and “reduction of release processing time through transfer process improve-
ment,” respectively.
Year
Department
Quality Control Circle
Presidential medal (Category)
Number of Medals
2011
(YP) Curing Part
Himmoa
Presidential silver medal (TPM)
1
2012
(YP) Materials Part
Cheoeum
Presidential gold medal (site improvement)
1
2013
(YP) Curing/Mixing Part
C1/standard operation
Presidential gold medal (TPM)/ 
Presidential bronze medal (site improvement)
1
1
2014
(YP) Materials/Curing/Electricity Part
Bangatgan/ 
Gamasot/Beongae
Presidential silver medal (TPM) (site improvement/ 
TPM/preservation management)
3
2015
(YP) Materials/PCR Part
Yangsancheon/ 
Dure
Presidential gold medal (freestyle)/ 
Presidential silver medal (site improvement)
1
1
2016
(YP) PCR/Facility Preservation 1Part
BMN1/Tachyon
Presidential gold medal (field improvement)/ 
Presidential bronze medal (preservation management)
1
1
2017
(YP) PCR/(CP) Materials Part
Banggeul Banggeul/ 
Myeongpum
Presidential silver medal 
(site improvement/freestyle)
2
2018
(YP) Pressing/(CP) Quality Inspection Part Ganeumsoe/ 
Spillover
Presidential bronze medal(TPM/service, non-manu-
facturing)
2
2019
(YP) Curing/(CP) Materials, Curing Part
Ttambangul/Myeongpum/
Garam
Presidential gold medal (site improvement)/ 
Presidential silver medal (freestyle)/ 
Presidential bronze metal (TPM)
1
1
1
2020
(YP) Bead/(CP) PCR Part, Quality Inspec-
tion Team
Bangatgan/ 
Hero/ 
Spillover
Presidential gold medal (site improvement)/ 
Presidential gold medal (freestyle)/ 
Presidential bronze metal (non-manufacturing)
2
1
2021
(CP) Mold Part/(CP) Logistics Manage-
ment Team
Didimdol/ 
Geobugi
Presidential silver medal (site improvement)/ 
Presidential silver medal (non-manufacturing)
2
Total
14 Parts
23 quality control circles
Presidential medals won 23 times
7
11
5
2021/22 NEXEN TIRE ESG Report      62
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Policy for Shared Growth with Suppliers 
Responsible Supply Chain Management 
Responsible supply chain management means not only establishing a pro-
curement system for high-quality raw materials but also completing a supply 
chain through which the company’s economic, social, and environmental val-
ues can be delivered to the stakeholders. Having established a sustainable 
procurement process, NEXEN TIRE will advance as a sustainable global enter-
prise by tracking down and transparently disclosing procurement processes 
within the supply chain. 
Sustainable Purchase Policy for Suppliers 
Together with stakeholders such as customers, suppliers, local communities, 
and employees, NEXEN TIRE is establishing and implementing sustainable 
purchase policies to create a sustainable future. We are sharing the ESG man-
agement values across the supply value chain. In 2021, the supplier purchase 
policy was fully restructured with the goal of achieving carbon neutrality of 
suppliers by 2050. In 2022, we will enter into an agreement for purchase pol-
icy implementation with the tier 1 raw material suppliers of our global subsid-
iaries in order to improve suppliers’ ESG awareness. 
Sustainable Natural Rubber Policy 
In 2020, NEXEN TIRE jointed the GPSNR (Global Platform for Sustainable Nat-
ural Rubber) as a member of the natural rubber value chain and a responsible 
purchaser. In 2021, the GPSNR Committee distributed the sustainable natural 
rubber policy and action plan to the member companies. NEXEN TIRE plans 
to conduct the GPSNR activities accordingly. In the long term, we will select 
natural rubber suppliers by considering their GPSNR membership status and 
ESG competency levels. 
Conflict Minerals Policy 
NEXEN TIRE has an internal policy that prevents the inclusion of conflict miner-
als* in the supply chain for the company’s production process. The suppliers’ 
supply chain is thoroughly monitored, and on-site inspection and corrective 
measures are implemented when necessary to ensure responsible supply chain 
management. Prior to the procurement of new raw materials, we check whether 
the supplier handles any conflict materials. We also request suppliers to sign a 
contract that forbids the use of conflict materials prior to the commencement of 
a regular transaction in order to establish a responsible supply chain. 
Suppliers 
These refer to the minerals tin, tantalum, tungsten, and gold produced in countries 
under conflict, such as the Democratic Republic of the Congo and its neighboring 
countries. The mining process of the conflict minerals gives rise to social issues, such 
as human rights violations including child labor and forced labor. Additionally, the 
money raised through this process is used to fund armed forces that perpetrate 
civilian massacre, etc. within the country. 
※ For NEXEN TIRE, conflict minerals management is required for tin, which is used 
in the manufacture of bead wire. 
* What are Conflict Minerals?
Ethical Management Pledge 
Agreement for Supplier Purchase 
Policy Implementation 
Reflected practical elements in policy
Sustainable Procurement Process 
Implementation of the supplier ESG policy 
•  Sustainable purchase policy 
•  Sustainable natural rubber policy 
•  Conflict minerals policy 
•  Ethical management pledge 
Execution and monitoring 
•  Review for supplier approval 
•  Purchase agreement (including quality 
assurance) 
•  Supplier ESG assessment
Feedback
•  Compensation to the highest-level sup-
plier from the ESG perspectives (pref-
erential purchase and development 
opportunity, etc.) 
•  Measures by ESG level (warning/sus-
pension/revocation) 
Sustainable Natural Rubber Policy 
2021/22 NEXEN TIRE ESG Report      63
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Supplier Management 
Through regular internal reporting based on “fair trade and fulfillment of 
social responsibilities,” NEXEN TIRE internally manages shared growth with 
suppliers at the executive level. While strengthening our corporate competi-
tiveness by managing suppliers, we strive to create a sustainable supply chain 
and establish a healthy industrial ecosystem. 
Supplier Development and Selection 
To meet the global market demand and prepare for future changes in the tire 
market, NEXEN TIRE discovers and assesses high-quality raw and subsidiary 
material suppliers and processing companies. We select raw material suppli-
ers according to our raw material development procedures by comprehen-
sively considering the companies’ quality, environmental, and safety aspects 
as well as performance of the materials supplied by them. 
Field Inspection on Suppliers 
NEXEN TIRE performs regular quality assessments based on the results of 
manufacturing plant inspections, quality evaluations, certifications (ISO/IATF 
16949), delivery performances, etc. 
We update the list of approved suppliers twice a year, and suppliers must 
undergo scheduled factory inspections according to their quality grades. 
NEXEN TIRE’s factory inspectors have obtained qualifications as internal inspec-
tors within the purchasing, quality management, and R&D department along 
with the VDA 6.3 certification. They perform inspections on suppliers’ facto-
ries based on in-depth understanding of the suppliers’ production processes.  
In principle, factory inspection is conducted in the form of an on-site inspec-
tion. However, written assessment can be performed for suppliers that have 
obtained a grade of A or B in the previous evaluations, unless there are any par-
ticular issues such as product defect or noncompliance with the delivery terms.
Supplier Risk Examination 
NEXEN TIRE evaluates internal and external risks by comprehensively consid-
ering suppliers’ delivery terms and quality, management activities, and impact 
on the company. In particular, suppliers engaging in socially unacceptable 
conducts or purposely violating the terms of contract may be permanently 
barred from trading with NEXEN TIRE. In addition, to reinforce the mutual risk 
management system, we reexamine the qualifications for approval for sup-
pliers obtaining grade 3 or 69 points or less at the regular inspections for two 
consecutive years. 
Number of Suppliers Receiving Quality Assessment 
Percentage of Grade A Suppliers 
Comprehensive Grading Criteria 
Grade 
Grade A
Grade B
Grade C
Criteria 
90-100% 
80-89% 
70-79%
69% or less 
Incentives/
Penalties 
Review 
upgrade of 
payment con-
ditions and 
M/S 
Continue 
performing 
improvement 
activities 
① Perform special fac-
tory inspection 
② Required for grade 2 
or higher (registration 
canceled if grade 3 is 
maintained for two 
consecutive years) 
Cancel regis-
tration 
Grading Criteria for Regular Factory Inspection 
Grade 
Grade 1 
Grade 2 
Grade 3 
Criteria 
90-100% 
80-89% 
70-79%
69% or less 
Description 
Management 
for mainte-
nance 
Improvement 
required for 
inadequacies 
Improvement required 
for inadequacies and 
grade B or higher 
required (suspension of 
transaction if grade C is 
obtained in two consecu-
tive regular inspections) 
Suspension of 
transaction 
2020 
31cases
2020 
34%
2021 
106cases
2021 
44%
Comprehensive Evaluation Items (Points Allocated) 
4. Delivery  
(10 points)
3. Certification 
(10 points)
2. Delivery quality  
(20 points)
1. Factory 
inspection 
(60 points)
2021/22 NEXEN TIRE ESG Report      64
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Supplier ESG Assessment 
Supplier Subject to ESG Assessment     In 2020, NEXEN TIRE conducted the 
first ESG assessment targeting tier 1 raw material suppliers.
Through the assessment, we were able to understand the ESG competency 
levels of our suppliers. In the second half of 2021, we additionally reflected 
the requirements of internal and external stakeholders in relation to climate 
change response and tier 2 supplier management and partially revised the pol-
icy and assessment items. The revised supplier ESG assessment is being imple-
mented for 201 tier 1 suppliers of our manufacturing plants in Korea, China, and 
Czech Republic, with completion targeted for the third quarter of 2022. 
In addition, from 2022, we have made it mandatory to collect ESG policy 
implementation pledges from and conduct ESG assessment on suppliers for 
approval of new tier 1 suppliers. By doing so, we will encourage all our suppli-
ers to understand our ESG goals and requirements and consequently reflect 
them to the industry. 
Assessment and Result Management     Supplier ESG assessment is con-
ducted in the form of a questionnaire survey. Based on the response and sup-
porting documents, points are given according to the internal scoring crite-
ria. After the assessment, suppliers are graded by their competency level. For 
key suppliers, incentives such as preferential right for market share (M/S) and 
development opportunities will be provided. 
Targeting suppliers with low ESG competency, NEXEN TIRE plans to support 
their ESG competency improvement and ESG-related risk prevention by 
implementing appropriate improvement measures. In the long term, we will 
create a sustainable supply chain by expanding the target of assessment to 
include tier 2 and 3 suppliers. 
Assessment Criteria and Elements     The ESG assessment of key suppliers 
is based on NEXEN TIRE’s sustainable purchase policy and Code of Ethics. The 
assessment items consist of business ethics, labor and human rights, safety 
and health, environment, responsible purchasing, and ESG competency. The 
assessment information will be posted on our website in order to secure the 
transparency of the assessment and improve suppliers’ ESG awareness.  
 
Revised Supplier ESG Assessment Items 
Category
Assessment Details 
Internal policy
Raw materials 
Supply of materials that have a significant impact on vehicle performance and driver safety 
Supply of materials that have a partial impact on vehicle performance and driver safety 
Supply of materials necessary for basic tire production 
Sustainability 
Financial stability of suppliers assessed at least quarterly based on purchasing performance in the previous year 
Purchase amount 
Measured based on the previous year’s purchasing amount 
ESG areas
Business ethics 
Availability of official ethics policy, privacy and intellectual property right protection, anti-corruption/anti-bribery/conflict of interests, etc. 
Labor and human 
rights 
Principles of human rights and labor rights for employees, work environment improvement, competency development, promotion of activi-
ties for the socially vulnerable and minority groups 
Safety and health 
Internal safety and health management policy, regular safety and health status check, impact review targeting subcontractors, etc. 
Environment 
Internal environmental management policy, carbon emission reduction policy, status of holding valid environment management system-re-
lated certifications within the last three years, etc. 
Responsible  
purchase 
Status of responsible raw material purchasing policy establishment, supply chain traceability, transparency of raw material management, 
regular supplier assessment, etc. 
ESG competency 
Collection and handling of stakeholder complaints, grievances, and proposals, establishment of risk response and management policies, etc. 
Total Number of Suppliers 
2019 
135
2020 
133
2021 
131
2021/22 NEXEN TIRE ESG Report      65
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Sustainable Raw Material Procurement
Supply Chain Management Status and Plan
NEXEN TIRE has established sustainable raw material purchase guidelines 
and supplier ESG competency development plans. In the mid to long term, 
we plan to expand the development of outstanding suppliers of eco-friendly 
materials.
Enhancing the Traceability of Raw Materials
NEXEN TIRE defined the supply process in each stage in order to enable suppliers to fulfill their social, economic, and environmental responsibilities from the 
stage of manufacturing to supply and provide better values to stakeholders. To maintain responsible supply chain management, we will strengthen ESG risk man-
agement and raw material traceability in the supply chain based on the supply chain management system.
Supply Chain Management Status
Internal Policy
Sustainable Purchase  
Policy for Suppliers
Establish a sustainable purchase policy considering busi-
ness ethics and social responsibilities between NEXEN 
TIRE and suppliers
Establishment of Sustain-
able Natural Rubber Policy Join the global platform for natural rubber sustainability
Supply Chain Assessment and Training
Supplier Review  
(inspection/written 
assessment)
For supplier approval, give additional points to suppliers 
that have obtained related certifications (ISO 14001, etc.)
- Regularly check for certificate renewal
Supplier  
ESG Assessment
Measure and assess supplier ESG competency
- Scheduled to establish compensation and training sys-
tems by supplier ESG competency level through in-depth 
analysis of ESG assessment results
NEXEN TIRE’s Supply Chain Management System
Improve awareness of the 
supply value chain
Request improvement in 
awareness of the responsible 
supply chain by distributing the 
ESG policy to suppliers
Identify the risk status
Investigate and monitor 
suppliers for ESG risks, such as 
for human rights and business 
ethics, that can occur in the 
supply value chain of natural 
rubber and tin, etc.
Conduct field inspection and 
due diligence
If necessary according to the 
monitoring result, conduct 
field inspections and due 
diligence on suppliers through 
NEXEN TIRE’s supply chain 
management organization
Check the risk factors
Identify ESG risks based on field 
inspection and due diligence 
result and analyze the risk 
factors
Establish an improvement plan
Deliver the analysis result to the 
supplier in order to establish 
an improvement plan and take 
improvement actions
Mid- to Long-term Supply Chain Management Plan
NEXEN TIRE Supply Chain
Tier 3 suppliers
(Companies supplying 
materials to tier 1 suppliers)
Tier 2 suppliers
(Transportation and out-
sourcing companies for 
tier 1 suppliers)
Tier 1 suppliers
(Companies supplying raw 
materials to NEXEN TIRE)
Request sourcing and development of excellent ESG suppliers providing eco-friendly materials
Finalize guidelines for sustainable  
raw material purchase
Select outstanding ESG 
suppliers and conduct 
case study
2021
2022
2025
 
      2030
Expand ESG assessment areas and 
perform monitoring
Implement the ESG policy  
on tier-N suppliers
2021/22 NEXEN TIRE ESG Report      66
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Social Contribution 
Social Contribution Promotion System 
Social Contribution Strategy Development 
In 2021, NEXEN TIRE established the social contribution operation plan to promote employees’ interest and voluntary participation in social contribution activ-
ities. Despite the difficulties posed by the COVID-19 pandemic, we developed a portfolio to perform social contribution activities continuously according to the 
circumstances. In 2022, we plan to start various programs to encourage employees’ participation. 
Creating an Environment that Activates Employee Engagement 
Developing a System for Activating Employees’ Volunteer Work     NEXEN 
TIRE established a systematic foundation to activate social contribution activi-
ties through the voluntary participation of employees by providing them with 
welfare points according to the accumulated annual volunteer service hours. 
(Max. 100,000 points). 
Participation-based Volunteer Program     In October 2021, NEXEN TIRE 
organized a variety of volunteer programs with specialized organizations in 
order to increase engagement in social contribution. The scope of partici-
pation has been widened to include not only employees but also their fam-
ily members. In addition, we established a system with a page dedicated to 
employees on a platform of a specialized organization through which employ-
ees can conveniently apply for participation in the programs. 
Social contribution 
activities reflecting the 
characteristics of the tire 
industry 
NEXEN TIRE’s Social Contribution Promotion Portfolio 
Social contribution activ-
ities according to the 
characteristics of local 
communities 
Employees’ donation and 
supporting  
activities 
Operation of  
foundations 
Volunteer Programs (examples) 
Volunteer Work Platform 
Tires are the source that generates movement by being in contact with the ground. Through this movement, NEXEN TIRE seeks to grow into a company that infuses energy into 
all parts of society and shares the energy. We believe that a company must win people’s trust, contribute to the national economic development, aim for happiness of all that are 
related to us, and bring prosperity to the world. The energy will be spread across the world through NEXEN TIRE’s “N’ERGY.” 
Neighbor
Youth
Environment
Recover
Global
A company that infuses energy for the 
prosperity and happiness of mankind
Core Values of N’ERGY 
2021/22 NEXEN TIRE ESG Report      67
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Social Contribution Activities
Social Contribution That Reflects the Characteristics of  
the Tire Industry
NEXEN TIRE fulfills its social responsibilities by promoting shared growth and 
exchange with local communities using the characteristic elements of the tire 
industry.  
Tire Donation to Social Welfare Centers     To create a safe mobility environ-
ment for social welfare centers, NEXEN TIRE has been conducting an activity 
of replacing old tires and donating new tires since March 2022 through coop-
eration with local social security councils and welfare foundations in regions 
where each worksite is based.
Children’s Safety Protection Center Operation by Chain Stores under 
Direct Management     Since October 2021, NEXEN TIRE has been operating 
the Children’s Safety Protection Center* through regular chain stores under 
direct management located across the country as a social contribution activity 
to provide shelters to children as their protection from risks.
* Children’s Safety Protection Center: A system established to protect children through coopera-
tion with the police and local communities
MOU for Tire Supply with Busan and Yangsan Private Taxi Union
In February 2019, NEXEN TIRE and the Busan and Yangsan Private Taxi Union 
entered into an MOU. The MOU is for the supply and use of tires manufac-
tured at NEXEN TIRE’s Changnyeong Plant for approximately 14,300 vehicles. 
Based on the MOU, NEXEN TIRE is stably supplying tires for the taxis of Busan 
and Yangsan Private Taxi Union. By encouraging local consumers to use prod-
ucts made by a local company, we contributed to creating a virtuous cycle of 
corporate development and employment increase. The MOU was success-
fully concluded as Vice Chairperson Hyo-Jin Kim of the Yangsan City Council 
led communication with NEXEN TIRE’s labor and management. This MOU 
served as a momentum to boost the local economy through mutual coopera-
tion between local businesses.
Social Contribution According to the Characteristics of  
Local Communities
Operation of Volunteer Clubs by Worksite     NEXEN TIRE carries out social 
contribution activities in the respective regions of each worksite by operat-
ing volunteer clubs. Based on an MOU with the Yangsan-si Welfare Center 
for the Disabled, the Hope Sharing Club has been performing various activi-
ties including side dish delivery, heating kit donation, and participation in the 
Yangsan-si Children with Disabilities Day despite the difficult circumstances 
caused by COVID-19.
For our Changnyeong Plant, we plan to set up a volunteer club that will start 
participating in social contribution activities in 2022 according to the local 
characteristics through an MOU with the Changnyeong-gun General Welfare 
Center for the Disabled.
Blood Donation Promotion     Since October 2021, NEXEN TIRE has been 
fulfilling its social responsibilities by holding a blood donation campaign 
through which discount coupons for tires are presented to local residents 
participating in blood donation.
Tire Donation to Social Welfare Centers  
MOU with Private Taxi Union 
Korea Red Cross Summer/Winter Blood 
Donation Campaign
2021/22 NEXEN TIRE ESG Report      68
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Employees’ Donation and Supporting Activities
Voluntary Employee Donation System (N’Fund)     The voluntary donation 
system N’Fund is operated targeting NEXEN TIRE employees. Our employees 
can participate in the program by indicating the amount they wish to donate in 
person in the donation application form.
The monthly system operation status is transparently shared through the 
in-house community. The recipients of the donation to be provided with the 
fund raised through N’Fund will be decided by the participant’s vote.
Zero Waste Environmental Campaign     NEXEN TIRE, in cooperation with 
the Beautiful Store, holds an employee donation event (Zero Waste Cam-
paign). The donated items are sold to consumers at the Beautiful Store 
branches. This campaign is meaningful as it promotes environmental protec-
tion and donation of the proceeds from the sharing and selling of used items.
In-house Blood Donation Center     NEXEN TIRE’s employees voluntarily 
donate their certificate of blood donation to support those who are in need 
of blood transfusion.
Operation of Foundations
Through three cultural foundation—NEXEN Wolsuk Cultural Foundation, 
Wolsuk Busan Leading Scholarship Committee, and KNN Cultural Founda-
tion where chairman Byung-Joong Kang serves as the chairperson—NEXEN 
TIRE contributes to the development of local communities and enhancement 
of local culture. Established with the goal of returning profits to society, each 
foundation actively supports projects in the education, arts, culture, and aca-
demic fields. In particular, we provide scholarships and financial support to 
schools in Busan and Gyeongsangnam-do region annually; thus contributing 
to the development and fostering of talents to lead the future. 
NEXEN Wolsuk Cultural Foundation     With the goal of returning corporate 
profits to society, the Wolsuk Cultural Foundation was founded in January 2008 
with the support of chairman Byung-Joong Kang and NEXEN Group. The foun-
dation has been continuously expanding the target and scope of its support, 
starting with making donations to the socially underprivileged such as rice 
donation. The scope further extends to promoting academics and developing 
culture and art in local communities.
Wolsuk Busan Leading Scholarship Committee     The Wolsuk Busan Schol-
arship Foundation provides scholarships and living assistance twice a year to 
middle school and high school students living in the Busan region who have 
excellent academic records but experiencing difficulties in livelihood. So far, 
more than 2,000 students have benefited from the program.
KNN Cultural Foundation     Established in 1995, the KNN Cultural Founda-
tion implements major social contribution projects such as cultural awards, 
scholarships for developing science-gifted students, and various academic 
activities. Among local private broadcasting companies, the KNN Cultural 
Foundation, which has the largest amount of donations, is rated highly in 
terms of corporate profit return to society.
Zero Waste Campaign
In-house Blood Donation Center
NEXEN Wolsuk Cultural Foundation Scholarship Award Ceremony in 2021
Scholarships
Category
Unit
2019
2020
2021
NEXEN Wolsuk Cultural Foundation
KRW million
222
595
759
NEXEN Wolsuk Busan Leading  
Scholarship Committee
KRW million
60
60
60
KNN Cultural Foundation
KRW million
189
155
177
Scholarship beneficiaries
Category
Unit
2019
2020
2021
NEXEN Wolsuk Cultural Foundation
Persons
525
497
525
NEXEN Wolsuk Busan Leading  
Scholarship Committee
Persons
60
80
80
KNN Cultural Foundation
Persons
189
154
176
2021/22 NEXEN TIRE ESG Report      69
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Contribution to Local Cultural Development
Sponsorship of Sports Competitions
Motorsports    NEXEN TIRE is participating in various motorsports events 
to increase brand awareness and spread the excellence of its products. We 
made an unprecedented achievement in 2021 with our first set of racing tires, 
winning the first game during our first-ever participation in the SUPER 6000 
class in the SUPERRACE CHAMPIONSHIP one of the most prestigious motor-
sports competitions in Korea. We launched “N’FERA Racing Team” following 
the win, and we have been participating in racing competitions with our own 
team since then. NEXEN TIRE is producing excellent results despite its short 
history, winning the double podium in round 2 of the competition in 2022 and 
ranking No. 1 in the TIRE MAKER CHAMPIONSHIP. In addition, at the ADAC 
Total 24H Race in Nürburgring, Germany, which we entered for the first time 
in 2021, our racing team finished second in the class; thus proving the excel-
lent durability of our racing tires. We also produced a significant result of rank-
ing third among global tire makers in round 7 of Toyota GR 86/BRZ Race in 
Japan.
Football     NEXEN TIRE has maintained a partnership with Manchester City 
over seven seasons since 2015.  We are again officially sponsoring the team 
in the 2021 - 2022 season. Since extending our partnership with Manchester 
City in the Premier League in 2017, we have officially sponsored the Manches-
ter City FIFA Online 4 Cup, an e-sports event targeting the Generation MZ. 
We also held a celebratory event for Manchester City for its fourth win in the 
league. In addition to various offline events and activities on the social net-
work, NEXEN TIRE is using advertising campaign and TV advertising as a mar-
keting platform for communication with the fans.
Eintracht Frankfurt, a prestigious German football club we have been spon-
soring since 2011, won the UEFA (The Union of European Football Associa-
tions) Europa League after 42 years. Taking this as a momentum, we have 
expanded the target of sponsorship to other football clubs, and we are pro-
ducing excellent results. NEXEN TIRE serves as an official sponsor of SK Stavia 
Praha, a professional Czech team, for two seasons from the 2021 - 2022 to the 
2022 - 2023 seasons. In addition, we are officially sponsoring AC Milan, an Ital-
ian Series A team, over three seasons from the 2021 - 2022 to the 2023 - 2024 
seasons. AC Milan was the champion in the 2021 - 2022 season.
Hockey     NEXEN TIRE is officially sponsoring Anaheim Ducks of the National 
Hockey League (NHL) for three years from the 2021 - 2022 season. In North 
America, ice hockey is one of the most popular sports. Founded in 1992, Ana-
heim Ducks won the “Stanley Cup (NHL)” in 2007. Through the sponsorship, 
we obtained the right to expose our brand on the display and outdoor adver-
tising sections of Honda Center, the home stadium of Anaheim Ducks. Our 
brand exposure to various sports events including baseball and concerts in 
the stadium is expected to improve our sports marketing performance.
Golf     Since 2013, NEXEN TIRE has hosted the “NEXEN-Saintnine Masters” 
KLPGA Golf Competition with NEXEN Corporation. As the only KLPGA golf com-
petition in Busan and Gyeongsangnam-do region, the NEXEN-Saintnine Mas-
ters is held at Gaya Country Club located in Gimhae, Gyeongsangnam-do. We 
will contribute to the development of local culture as well as the golf industry 
by hosting the competition. NEXEN-Saintnine Masters is held for the ninth time 
in 2022. In celebration of NEXEN TIRE’s 80th anniversary and Saintnine’s 10th 
anniversary, a screen golf event was held for the fans. In addition to sponsoring 
domestic golf competitions, we have been sponsoring Yae-Eun Hong, an LPGA 
rookie, since 2020 to contribute to the better future of the golf industry.
Launch of ‘N’FERA Racing Team’
Participation in the ADAC Total 24H Race in 
Nürburgring, Germany
Ranked the First in TIRE MAKER CHAMPION-
SHIP in the Second Round of SUPERRACE 
CHAMPIONSHIP
Ranked Third in Toyota GR 86/BRZ Race
2021/22 NEXEN TIRE ESG Report      70
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Information Security Management System
The rapidly changing cyber environment and big data-based business has 
further increased the importance of information security and emphasized 
corporate responsibility to develop technologies for information security. For 
information security, NEXEN TIRE developed the information security man-
agement system by establishing the principles of information security and 
privacy protection. By implementing the system, we seek to ensure global 
top-tier information security. 
Information Security Policy 
NEXEN TIRE implements a information security policy according to domestic 
and international laws, such as the Act on the Promotion of Information and 
Communications Network Utilization and Information Protection and Per-
sonal Information Protection Act, as well as regulatory changes. We reestab-
lished the policy recently based on the security framework of the International 
Organization for Standardization (ISO). In addition, we conduct continuous 
security control and monitoring activities by establishing the Information 
Security Management System (ISMS) on the basis of the information security 
policy. Moreover, we guarantee the stability and reliability of the information 
system through risk management. 
Information Security 
*Established the ISO/IEC 27001 standard 
Information Security and Privacy Protection Regulations* 
[SNX-P-0001] Staff Security Guidelines
[SNX-P-0003] Security Incident Response Guidelines
[SNX-P-0005] User Security Guidelines
[SNX-P-0007] Physical Security Guidelines
[SNX-P-0009] Subcontractor/Supplier Security Management Guidelines
[SNX-P-0002] Information Asset Management Guidelines
[SNX-P-0004] Information Security Organization Operation Guidelines
[SNX-P-0006] Technical Security Guidelines
[SNX-P-0008] Information Security Risk Management Guidelines
[SNX-P-0013] Personal Information Protection Guidelines
[SNX-M-0001] Information Security Regulations
Information Security Incident Response System 
An incident response system has been established to minimize damage caused by an information security incident and prevent additional damage through 
swift response. In addition, internalization of the incident response system is promoted through regular simulation training. 
Recognize incident 
Report suspected details 
(To the information security 
department and  
information security officer) 
Organize an incident 
response team 
(If necessary) 
Report the status to  
the relevant reporting 
agency 
Establish and apply recur-
rence prevention measures 
Conduct monitoring  
and implement  
follow-up action 
Four-stage incident response process 
Stage 1  
Initial action
Stage 2  
Cause  
analysis
Stage 3  
Troubleshoot-
ing
Stage 4  
Follow-up 
action
Information Security Incident Response Process 
Privacy Policy 
For every worksite located in each country, NEXEN TIRE monitors the local and 
international personal information protection-related laws and ensures com-
pliance with the legal requirements of the services provided to customers. We 
dedicate the utmost effort to protecting customers’ information and guaran-
teeing the rights of data subjects. 
2021/22 NEXEN TIRE ESG Report      71
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Information Security Management System
Information Security Operating Organization
Recognizing the importance of information security, NEXEN TIRE, for domes-
tic and international compliance, separately operates a information security 
organization governed directly by the COO under the CEO. The company-wide 
information security organization is entrusted with the responsibility and 
authority with regard to information security. It handled overall information 
security-related operations, such as operating the information security man-
agement system, managing the information security business, and respond-
ing to incidents. For overseas worksites, we are also operating information 
security parts in each worksite in order to guarantee information security level 
equivalent to that in the headquarters. At the regular information security 
committee meetings, executives of each business sector discuss and check 
on various information security related issues.
Designation of Information security/Privacy Protection Managers    
NEXEN TIRE designates information security and privacy protection man-
agers in each organization to promote and encourage employees’ auton-
omous and active participation in the information security system imple-
mentation.
Information Security Certification Management
Acquisition of TISAX*      In 2022, NEXEN TIRE acquired TISAX (Trusted Infor-
mation Security Assessment eXchange) certification, a global information 
security certification, for the company’s information security management 
system recognized by the German Association of the Automotive Industry 
(VDA). TISAX is a certification that should be obtained by every global OE car 
maker. It is issued only when there is no non-conforming element in the com-
pany’s information security system based on a standardized security process. 
Therefore, to obtain this certification, a company needs to operate a security 
management system based on very high standards. NEXEN TIRE has been 
officially recognized for top-tier security management competency as the cer-
tification was acquired for not only domestic R&D centers but also key manu-
facturing plants and R&D centers abroad. While further developing our infor-
mation security management system and related technologies, we plan to 
grow as a global enterprise with the highest security level.
TISAX is a global information security management system certification scheme 
developed by the German Association of the Automotive Industry (VDA) to stan-
dardize security assessment criteria for automotive companies worldwide. Based 
on the ISO/IEC 27001 of the International Organization for Standardization (ISO), 
it assesses a company’s overall information security management system.
*What is TISAX?
Information Security Committee
Chair:  
Chief Information  
Security Officer (CISO)
Participating Members:  
Departments supervising information  
security in worksites/heads of  
information security-related divisions
Secretary:  
Information security  
supervising division
Information Security-related Departments in Domestic and Overseas Worksites
Information Security in General Departments in Domestic and Overseas Worksites (Each Department)
Company-wide Information Security Supervision
Chief Information Security Officer (CISO)
Company-wide Security Management
Information security supervising department (Information Security Team)
Security Management  
in Worksites  
(Czech Republic, Germany, China)
Department supervising information  
security in worksites
Information Security Department
Information security officer/information security manager
Physical and Facility Security
Department overseeing facilities
Personnel/System Security
HR/Legal affairs departments
Information System Security
Department in charge of IT
2021/22 NEXEN TIRE ESG Report      72
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Information Security Activities
Information Security Monitoring
To secure internal and external reliability along with the stability of the infor-
mation system, NEXEN TIRE conducts regular monitoring for data security 
and privacy protection. While operating a high-standard security system to 
respond to cyber attacks, we are regularly conducting risk assessment, vul-
nerability diagnosis, and improvement operations.
Simulation Training on Response to Cyber Threats
In 2021, NEXEN TIRE inspected the internal information security manage-
ment system by holding a simulation training on response to cyber threats 
jointly with the Korea Internet & Security Agency (KISA). The training was con-
ducted with the goal of improving employees’ privacy security awareness by 
sending social engineering hacking e-mails, which have recently emerged as 
an issue. In addition, with employees participating in the incident response 
simulation training, the company’s security threat detection and response 
system has been improved.
Inspection for Information Security
To secure external reliability, NEXEN TIRE conducted vulnerability inspection 
targeting its official website and information system. Based on the result, we 
are operating all information systems in such a way that a high security level 
is maintained.
Revising Information Security and Privacy Regulations
In 2021, NEXEN TIRE revised and integrated the 15 types of information secu-
rity policy, regulations, and guidelines as well as privacy protection guidelines 
into 11 types—such as information security regulations and guidelines and 
privacy protection guidelines—and also updated the regulatory response 
and management plans.
Information Security and Cyber Security-related Compliance
Category
Unit
2019
2020
2021
Penalties/Fines due to information 
security and cyber security-related 
violations
KRW
0
0
0
Number of customers suffering damage 
due to data violations 
Persons
0
0
0
Number of Violations Concerning Customers’ Personal Information 
2019 
0case
2020
0case
2021 
0case
Number of Information Security and Cyber Security-related Violations
2019 
0case
2020 
0case
2021
0case
Information Security Monitoring Activities and Achievements in 2021
Category
Operation of the 
information security 
management system
Internet data 
center (IDC)
Training for 
violations
Personal information 
DB monitoring
Document 
security
Employee 
training
Campaign activities
Disaster recovery and 
response training
Description
Systematically operate 
the information security 
management system (ISMS)
Identify and improve on 
vulnerabilities
Provide training for 
violations through 
cooperation with 
external institutes
Encrypt personal information 
and control and manage data 
within DB
Upgrade the document 
security system
Provide information 
security and privacy 
protection education
Improve and provide training 
for employees’ awareness of 
information security
Provide training on recovery 
from disaster upon occurrence
Key Activities 
and 
Achievements 
in 2021
·	 Operating an organization in 
charge of information 
security
·	 Strengthening the information 
security policy system
·	 Assessing and improving on 
information security risks
·	 Identifying vulnerabilities 
in the website and 
information system 
and implementing 
supplementary measures
·	 Holding simulation 
e-mail hacking training 
targeting employees 
·	 Providing map training 
for violations
·	 Encrypting all personal 
information in DB
·	 Monitoring DB access and 
control through the DB access 
control system
·	 Investing in and 
upgrading the document 
security system (DRM)
·	 Providing information 
security and privacy 
protection education to 
employees
·	 Waging an information security 
campaign using noticeboard and 
electronic boards
·	 Measuring the effectiveness of the 
monthly Information Security Day
·	 Providing training on accident 
response and minimization 
of damage according to the 
suspension of information 
system operation
2021/22 NEXEN TIRE ESG Report      73
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Education of Employees on Information Security
Since 2013, NEXEN TIRE has been providing information security education to 
all employees annually. In 2021, we provided information security education 
not only to the incumbent but also to newly recruited employees. 
In addition, personal information handlers are provided with education on 
the Personal Information Protection Act, one of the four required education 
programs. As such, NEXEN TIRE is making its best effort to internalize aware-
ness of information security. 
Information Security Risk Assessment
With contactless work activated due to COVID-19, NEXEN TIRE conducted 
information security risk assessment. In addition, to minimize external secu-
rity threats, we developed and applied security control procedures for prelim-
inary security review and creation of a safe work environment.
Activities to Improve Awareness of Information Security
To improve employees’ awareness of information security, NEXEN TIRE holds 
various campaigns and also inspects the status of employees’ information 
security by designating the monthly Information Security Day.
Privacy Protection Life Cycle Management
NEXEN TIRE promotes privacy protection life cycle management in order to 
manage information safely throughout the entire process of information col-
lection, storage, use, and destruction. In addition, we implement information 
security measures in administrative, physical, and technical areas to ensure 
further enhanced information security throughout the life cycle. We post the 
privacy policy on the website to notify details of collection, retention, use, and 
destruction of the personal information we collected from data subjects and 
enable them to check the status of their personal information management 
anytime. In strict compliance with domestic and international privacy-related 
laws such as the 『Personal Information Protection Act』 and the 『GDPR』, we 
provide a secure, reliable privacy protection environment.
Status of Information Security Education Completion (Compulsory Education)
Category
Unit
2019
2020
2021
Target Persons*
Persons
954
929
1,037
Persons who Completed Education**
Persons
880
859
987
Education Completion Rate
%
90.0
90.5
95.2
*Based on domestic worksites
Status of Completion of Education on the Personal Information  
Protection Act (Internal Education)
Category
Unit
2019
2020
2021
Target Persons*
Persons
65
82
101
Persons who Completed Education**
Persons
55
79
93
Education Completion Rate
%
84.6
96.3
92.1
*Education subject to personal information handlers
**Based on domestic worksites 
Processing of Privacy-related Reports (External Stakeholders)
Category
Unit
2019
2020
2021
Complaints Confirmed
Cases
0
0
0
Complaints Handled
Cases
0
0
0
Response Rate
%
-
-
-
Processing of Privacy-related Reports (Regulatory Organizations)
Category
Unit
2019
2020
2021
Complaints Confirmed
Cases
0
0
0
Complaints Handled
Cases
0
0
0
Response Rate
%
-
-
-
Collecting and Handling Privacy-related Complaints
NEXEN TIRE specifies through its privacy policy that data subjects can exercise 
their right to view, correct, delete, and suspend the handling of their personal 
information at any time. We also collect privacy-related grievances through 
various channels including website, written report, phone, and e-mail. Upon 
receiving privacy-related grievances, we handle them without delay accord-
ing to the established procedures and notify the results. We also collect 
reports on violations of not only general laws and company rules but also pri-
vacy policy and ethical codes through the ethical management reporting cen-
ter and operate an internal whistle blowing process.
Privacy Policy
2021/22 NEXEN TIRE ESG Report      74
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

76	
Responsible Governance 
80	
Ethical Management
82	
Risk Management
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Sound BOD 
NEXEN TIRE maintains stable, effective, and transparent governance to 
ensure sustainable growth and protect the profits of stakeholders. By dele-
gating decisions and tasks to the Board of Directors, we aim to have a stable 
management structure take root through checks and balances. In addition, 
we have established the Board of Directors (BOD) based on the judgment that 
expertise and diverse perspectives lead to an efficient governance structure. 
While holding regular and irregular meetings among members, we promote 
the establishment of transparent governance by adhering to the principle of 
disclosure in order to secure transparency in our operation processing crite-
ria, procedures, and results. 
Organization of the BOD 
According to the Articles of Association, NEXEN TIRE’s BOD can consist of three 
to nine members, and majority of the members must be non-executive direc-
tors. As of the end of December 2021, the BOD consists of two executive direc-
tors and three non-executive directors. All non-executive directors have no 
relations with the company, management, and major shareholders. Details of 
the BOD are disclosed on the website. 
BOD Committees
Non-executive Director Recommendation Committee     Executive direc-
tors and non-executive directors are transparently appointed through a fair 
process based on the recommendation by the BOD and the Non-executive 
Director Recommendation Committee, respectively. The term of office of all 
directors is three years, and vacant positions caused by early resignation or 
termination of the term are filled by individual appointments through the 
general shareholders’ meeting. 
Audit Committee     Consisting of non-executive directors possessing profes-
sional knowledge in each field, the Audit Committee of the BOD conducts sur-
veillance, diagnosis, and assessment of the company’s management activities 
and provides appropriate alternatives. The Committee not only ensures man-
agement transparency and enhances competitiveness but also minimizes 
management risks and reports the interests of stakeholders such as share-
holders and customers. 
Responsible Governance 
BOD Committees
Category
Composition
(Persons)
Functions 
Operation Status 
Audit Com-
mittee
Non-executive 
directors (3)
• Review accounting documents, 
audit procedures of accounting 
firm, and audit result 
• Request additional review of 
accounting books and related 
documents to accounting firm 
and review the result 
• Review the operational status of 
internal accounting control sys-
tem after receiving reports from 
the internal accounting manager 
4 sessions in 2019 
9 sessions in 2020 
6 sessions in 2021 
Non-execu-
tive Director 
Recommen-
dation Com-
mittee
Executive direc-
tor (1)
Non-executive 
directors (2)
Recommend non-executive direc-
tor candidates at the general share-
holders’ meeting  
2 sessions in 2019 
2 sessions in 2020 
1 session in 2021 
Composition and Purpose of Establishment of the Non-executive Director 
Recommendation Committee 
 
Name of 
Committee 
Category
Name
Purpose of Establishment 
and Delegated Authority
Non-executive 
Director Rec-
ommendation 
Committee 
Executive 
Director 
Byung-Joong Kang 
• Meeting the regulations 
specified in Article 542-8 (4) 
of the Commercial Act
• Recommending non-exec-
utive director candidates at 
the general shareholders’ 
meeting
Non-executive 
Director
Hyun-Jeon Kim, 
Han-Ik Yoo
Organization of the BOD 
BOD 
General Shareholders’ Meeting 
CEO
Ethics Management Team 
Non-executive Director  
Recommendation Committee 
Audit Committee 
Composition of the BOD 
Category
Name 
Gender 
Date of 
Appointment 
Expiration of 
Term
Executive 
Director
Byung-Joong Kang 
Male 
1999.6.
2023.3.
Ho-Chan Kang 
Male 
2001.3.
2022.3.
Non-execu-
tive Director
Seung-Hwa Kwon 
Male 
2020.3.
2023.3.
Hyun-Jeon Kim 
Male 
2016.2.
2022.3.
Han-Ik Yoo
Male 
2021.3.
2024.3.
2021/22 NEXEN TIRE ESG Report      76
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

BOD Operation
The BOD serves as the highest permanent decision-making body. To ensure 
that checks and balances are in place, decision-making and task execution 
roles are separately delegated to the BOD and management, with the man-
agement’s business execution status reported to the BOD. As a result, the 
BOD’s independence is secured, and a decision-making structure centered 
on the BOD has been formed. The Articles of Association also stipulate serving 
a BOD convocation notice at least one week in advance. In 2022, the directors’ 
liability insurance was purchased at the company’s expense. The regulations 
on the BOD and Committees are disclosed in the Governance Report. The 
information is also available in IR Data on the website.
BOD Convocation     The Articles of Association and the Regulations for BOD 
Operation stipulate overall matters concerning the BOD operation, such as 
authority and responsibilities of the BOD as well as the BOD operating proce-
dures. According to Article 38 of the Articles of Association and Article 6 of the 
Regulations for BOD Operation, BOD meetings are held separately as regular 
and extraordinary meetings. In 2021, a total of ten BOD meetings were held. 
NEXEN TIRE strives to ensure in-depth and efficient BOD operation by provid-
ing the directors with data necessary in discussing agenda items as well as the 
required explanations, as necessary, prior to the BOD meeting convocation. 
BOD Assessment System
Estimation of Remuneration According to Performance Assessment     
Remuneration is determined by considering the nature of delegated tasks 
and results of performance according to the executive remuneration regula-
tions (resolved by the BOD). In addition, incentives are paid in consideration of 
the previous year’s annual remuneration, management performance coeffi-
cient, and rate of increase on assessment grade. NEXEN TIRE is considering the 
establishment of fair internal assessment criteria through regular assessment 
of activities based on comprehensive criteria, such as attendance rate, inde-
pendence, and contribution, to the extent that the criteria do not impair the 
independence of each director. We also plan to develop a method for reflect-
ing the assessment results to remuneration and reappointment decisions.
Independence of the BOD
To ensure the effective monitoring functions on management, the right to 
elect and dismiss the CEO is given to the BOD according to the relevant laws 
and regulations. In addition, to guarantee that the function of BOD is not 
weakened due to its relationship with the management, the majority of the 
BOD members are organized with non-executive directors who are proven 
independent. Any director with special interest in a specific agenda item is 
denied the voting right for the item.
BOD Compensation System
The remuneration of directors is calculated based on the management per-
formance according to economic, social, and environmental performance 
indicators. In addition, separate stock options are not provided to non-exec-
utive directors.  
Remuneration Limit     Compensation for directors is paid according to the 
regulations within the annual remuneration limit of KRW 6 billion approved by 
the general shareholders’ meeting.
CEO-to-Employee Compensation Ratio
Category
Unit
2019
2020
2021
Total Compensation of 
the CEO
KRW million
971
998
1,068
Average Compensation of 
Employees*
KRW million
70.6
61.7
65.5
CEO-to-Employee 
Compensation Ratio
Times
13.8
16.2
16.3
*Based on domestic worksites
Remuneration of Directors
Category
Unit
Total
Executive 
Director
Non-executive 
Director*
Number of Executives
Persons
5
2
3
Total Remuneration
KRW million
1,684
1,549
135
Average Remuneration 
per Person
KRW million
337
774
45
*Based on the Audit Committee, including remuneration of non-executive directors who 
retired in the first quarter of 2021
10sessions
  Number of BOD meetings held in 2021
KRW 6 billion
Annual remuneration limit for directors 
IR Data
2021/22 NEXEN TIRE ESG Report      77
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Expertise of BOD Members
Category
Name
Gender
Position
Expiration of 
Term
Field of Expertise Career Highlights
Executive  
director
Byung-Joong Kang
Male
•  CEO
•  Chairperson of the BOD
•  Chairperson of the Non-executive Director 
Recommendation Committee
2023.3.
General company 
management
•  Chairman of NEXEN TIRE
•  Chairman of the Wolsuk Scholarship Foundation
•  CEO of NEXEN Corp.
Executive  
director
Ho-Chan Kang
Male
•  CEO
2022.3.
General company 
management
•  Global CEO of NEXEN TIRE
•  CEO of NEXEN Corp.
Non-executive 
director
Seung-Hwa Kwon
Male
•  Chairperson of the Audit Committee
2023.3.
Accounting, audit
•  CEO of EY Adviser
•  Former CEO of EY Accounting Firm
Non-executive 
director
Hyun-Jeon Kim
Male
•  Member of the Audit Committee
•  Member of the Non-executive Director  
Recommendation Committee
2022.3.
General company 
management
•  CEO of Hwayang Industry
•  Previously held a position at Samsung Techwin
Non-executive 
director
Han-Ik Yoo
Male
•  Member of the Audit Committee
•  Member of the Non-executive Director  
Recommendation Committee
2024.3.
General company 
management
•  CEO of RXC PRIZM (founder)
•  Chairperson of the BOD of TMON
Transparency of the BOD
In order to ensure the transparency of the BOD, NEXEN TIRE appointed two 
executive directors and three non-executive directors as a member of the 
BOD. We also operate Audit Committee under the BOD, constituted only by 
non-executive directors. The Audit Committee receives and reviews reports 
on the operation of the internal accounting control system from the internal 
accounting manager to prepare and disclose transparent, reliable account-
ing information. In addition, the Audit Committee supervises the work of 
directors and management and is in charge of approving the appointment 
of external auditors.
Through the Non-executive Director Recommendation Committee, NEXEN 
TIRE appoints competent directors with expertise and sense of responsibility 
transparently. The Non-executive Director Recommendation Committee com-
prehensively reviews the independence and competency of non-executive 
director candidates according to related laws as well as the company’s Articles 
of Association and the BOD regulations and recommends them to the general 
shareholders’ meeting. To enhance transparency in the process of non-execu-
tive director appointment, the BOD re-deliberates on the candidates.
BOD Diversity and Expertise
NEXEN TIRE imposes no limitations in terms of nationality, gender, religion, or race when appointing non-executive directors. In addition, we organized the 
BOD with diverse experiences and backgrounds so that the BOD can represent the interests of stakeholders including shareholders and engage in major deci-
sion-making and management activities considering social value.
improving the Expertise of Non-executive Directors     NEXEN TIRE appoints individuals with specialized knowledge and extensive experience in the fields of 
business administration and accounting, etc. as non-executive directors. To improve the expertise of non-executive directors, we are providing education in major 
subjects such as internal accounting control system, audit issues, and accounting policy change. We are planning to expand the scope of the education in the 
future. In 2021, the education was held in three sessions. In addition, non-executive directors can receive support from experts according to Paragraph 10, Article 
10 of the Regulations for BOD Operation.
Non-executive Education in 2021
Date
Education Provided by     
Content of Education
2021.3
N Culture Team, NEXEN TIRE
Issues related to the amendment of Commercial Act and general share-
holders’ meeting, etc.
2021.7
Ethics Management Team, NEXEN TIRE
Issues related to the revised quarterly and semiannual reports, etc.
2021.9
Ethics Management Team, NEXEN TIRE
Consolidated internal accounting control system and consolidated settle-
ment procedures, etc. 
2021/22 NEXEN TIRE ESG Report      78
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Shareholders and investors
Shareholder policy
In compliance with the provisions of Article 361 of the Commercial Act, etc. 
which regulates the convocation of general shareholder’s meeting, NEXEN 
TIRE sends a meeting convocation notice and discloses the details of the 
meeting, such as that of the date, location, and agenda items, through the 
electronic disclosure system (DART) two weeks prior to the meeting. This 
enables the shareholders to express their opinions at the general sharehold-
ers’ meeting, We ensure that our shareholders can exercise their voting right 
in written document (letter of attorney), which has the same effect as utilizing 
the electronic voting system. To provide our shareholders with a greater vari-
ety of options in exercising their voting right, we are considering whether to 
adopt the electronic voting system and to vote by proxy.
General Shareholders’ Meeting 
To increase shareholder convenience, even before the compliance program 
for the dispersion of general shareholder’s meetings was implemented in 
2018, NEXEN TIRE was the first to hold a general shareholder’s meeting for 20 
years from 2000 to 2019,  among listed companies undergoing settlement at 
the end of December.  During the last three fiscal years, we again held general 
shareholders’ meetings on the dates when meetings were not concentrated, 
with the only exception of 2021 when it was inevitably held on a concentrated 
date considering the consolidated settlement schedule of overseas subsidiar-
ies due to the impact of COVID-19.
 
Providing Cash Dividend
To improve shareholder value, NEXEN TIRE pays a considerable portion of its 
annual management outcomes as dividends despite the uncertain environ-
mental factors wielding a negative impact on the tire industry, such as COVID-
19, semiconductor supply shortage, and logistics disruption. The dividend 
payout ratio is determined with consideration given to the overall cash flow 
situations including investment for the company’s sustainable growth and 
management performance.
IR Meeting
NEXEN TIRE holds regular IR meetings with institutional and individual inves-
tors including analysts from securities companies and transparently discloses 
its management status and strategies for the future. 
We held a total of four IR meetings (Mar., May, Aug., and Nov.) in 2021. In 
addition, through one-on-one meetings and conference calls, we strengthen 
communication with shareholders and investors. As part of our effort to 
improve shareholder convenience, IR information is permanently posted on 
our website and IR Report disclosing our performance is published quarterly.
Shareholder Status
(As of the end of Dec. 2021)
Category
Unit
Description
NEXEN Corp.
Number of shares
Shares
43,217,425
Byung-Joong Kang
Number of shares
Shares
19,001,037
Ho-Chan Kang
Number of shares
Shares
3,174,222
Other Shareholders
Number of shares
Shares
32,275,193
Persons with shareholding by 5% or more excluding majority shareholder 
and affiliated persons
(As of the end of Dec. 2021)
Category
Unit
Description
National 
Pension 
Service
Number of shares
Shares
5,780,083
Ownership ratio
%
5.9
Transaction relationship 
with the company
-
-
64th General Shareholders’ Meeting (Mar. 2022)
Shareholding Status by Management*
(As of the end of Dec. 2021)
Category
Unit
Description
Byung-Joong Kang
Number of shares
Shares
19,001,037
Ho-Chan Kang
Number of shares
Shares
3,174,222
*Based on executive directors
Disclosure/Announcement Board
IR Report 
2021/22 NEXEN TIRE ESG Report      79
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Ethical Management System 
Based on our Code of Ethics and management philosophy which pursue 
mutual development and the value of consideration, coexistence, and coop-
eration with our stakeholders including shareholders, suppliers, partners, 
local communities and employees, NEXEN TIRE strives to foster a transparent, 
fair, and mature corporate culture. We are committed to achieve sustainable 
management by conducting regular education and ethical management sur-
veys for employees and operating a reporting center to receive reports on vio-
lations of the Code of Ethics. 
Declaration of Ethical Management 
On June 1, 2019, NEXEN TIRE declared ethical management through our website.
Ethical Management Organization 
NEXEN TIRE practices ethical management by establishing the Ethics Manage-
ment Team under the direct control of the Chief Operating Officer (COO). At 
the same time, we support ethical management by entrusting the CEO and 
COO with authorities such as supporting financial reporting, involving in the 
secretariat of the Audit Committee, investigating on the statue of internal 
accounting operation, operating the internal whistle blowing system, and 
inspecting employee’s corruptions. The role of the Ethics Management Team 
has been further elaborated as a central department that spreads ethical 
management practice by notifying the CEO’s messages and providing ethical 
management education.
Code of Ethics 
Code of Ethics and Action Guide     NEXEN TIRE strives to grow into a top-
notch global enterprise. In order to do so, we recognized that a fair, transpar-
ent corporate culture is essential, so we distributed the Code of Ethics and 
detailed rules as the basis for upright behavior and value judgment which 
needs to be respected by all executives. The Code of Ethics and rules are 
posted on the company’s website for easy access by all. 
Ethical Management Reporting
Ethics Education for Employees 
Ethical management is a corporate culture that makes an organization trans-
parent and efficient. The driver of NEXEN TIRE’s ethical management is the 
employees. We conduct an annual ethics education to fortify ethical manage-
ment among employees. In 2021, we provided online ethical management 
education to all employees (prevention of sexual harassment, awareness 
of the disabled, ESG management). 98% of the employees completed the  
education.
Diagnosis of Ethical Management Status  
NEXEN TIRE conducts annual diagnosis to understand the level of ethical 
management in each department and to prevent corruption. We examine 
the ethical standards of each department through a questionnaire survey of 
employees and by using monitoring information. Based on the results, spe-
cialized education is provided. In 2021, six teams including the Procurement 
Team were audited. We track all the items that needs to be improved after the 
audit on a quarterly basis and report them to the COO.
Ethical Management 
Ethics Education Completion in 2021 
Category
Unit 
2021 Remarks 
Prevention of sexual 
harassment, aware-
ness of the disabled
Target persons*
Persons 
1,048 Online 
education 
completed education 
Persons 
1,036
Education hours 
Hours/session 
2
Patagonia’s ESG man-
agement story
Target persons*
Persons 
1,026
completed education 
Persons 
1,000
Education hours 
Hours/session 
10
*Targeting workers at the headquarters and R&D centers (Magok, etc.)
Ethical Management Organization
(as of Apr. 2022) 
CEO
Ethics Management Team
COO
•  We provide satisfaction and trust to our customers by providing safe and 
quality tires. 
•  We constantly strive to improve our technology and contribute to the 
community through investment and development. 
•  We maintain honest and faithful work ethics and transparently disclose 
corporate management information. 
•  We establish a trustworthy corporate image by abolishing inefficient 
practices. 
•  We neither promote unfair benefits related to work nor abuse power in 
relation to our work. 
•  We establish a shared relationship based on trust and harmony and with 
pride that all workers and managers are owners of our company. 
NEXEN TIRE Code of Ethics 
Legal 
compliance
Prohibition of 
accepting any 
bribery
Ethical 
compliance of 
employees
Environmental 
protection
Respect for and 
protection of 
employees
Labor-
management 
relationship
Transparent 
management 
Contribution to 
country  
and society
Fair  
transaction
Compliance 
with the Code 
of Ethics
Action Guide
NEXEN TIRE Code of Ethics 
2021/22 NEXEN TIRE ESG Report      80
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Reporting Center
NEXEN TIRE receives reports on all acts that violate—or may violate—the 
Code of Ethics, including employees’ job-related fraud, damage to the compa-
ny’s image, and impairment of employee reputation. Not only the employees 
of NEXEN TIRE but also all external stakeholders can report through the com-
pany’s website. In 2021, we received five reports and implemented corrective 
actions for all of them. Reports on employees’ violation of the Code of Ethics are 
released after review, if the case involves any facts that needs to be disclosed 
according to the company rules. According to Article 16 of the Detailed Rules of 
the Code of Ethics, rewards and punishments are given to declare the manage-
ment’s commitment to implement ethical management.
Whistle Blower Protection
In principle, the whistle blower’s identity, content of the report, result, etc. are 
kept confidential according to the whistle blower’s intention. In addition, for 
the personal information collected at the time of reporting, the purpose of 
collection and retention period are specified in advance to protect the whistle 
blower.
Compliance Management
Compliance Officer Appointment and Operation
NEXEN TIRE appoints a compliance officer who is legally qualified to inspect 
whether the compliance criteria are being met and the details are disclosed 
in the Annual Report. The compliance officer monitors the compliance sta-
tus of executives and employees as well as legality of the company’s manage-
ment activities. At the same time, the compliance officer faithfully supports the 
company’s organization and business through various compliance supporting 
activities and reports the results of such activities to the BOD.
Anti-corruption and Anti-bribery
Aside from creating and distributing guidelines regarding compliance with 
the Improper Solicitation and Graft Act, NEXEN TIRE conducts regular inspec-
tions to ensure fair execution of operations by preventing any violations of the 
Act. Every year, we select worksites that will receive scheduled and unsched-
uled examinations about corruption. When a corruption case is identified, 
appropriate measures are taken in cooperation with the compliance officer. 
The corruption examination was conducted six times in 2021, and no serious 
case of corruption was identified. In addition, we provided education on com-
pliance with various anti-corruption laws not only in Korea but also overseas 
and completed the signing of pledge by all executives and employees. More-
over, in compliance with the Political Funds Act, we do not provide any political 
contributions such as political funds, campaign funds, and lobbying funds for 
specific political organizations. However, we contribute to the development of 
public policies and interest by regularly sponsoring associations promoting 
public interest that are guaranteed to be politically neutral.
Reporting Method
Internal e-mail for
reporting
ethics@nexentire.com
Website
Click “Report” at the top of the website  →
External e-mail for reporting
(nexenethicscenter@gmail.com)
Written report
Ethical Management Team, 7F THE NEXEN univerCITY, 
177, Magokjungang-ro, Gangseo-gu, Seoul, Korea
Status of Ethical Report in Process
Category
Unit 
2019
2020
2021
Number of Reports
Cases
2*
6
5
Processing Rate
%
100
100
100
*Total number of reports made since the integration of reporting center in Nov. 2019
6cases
Anti-corruption examinations 
conducted
0cases
Serious corruption cases 
detected 
Report Handling Process
Step 1. 
Report
Step 2. 
Report  
received
Step 3. 
Investigation  
on report
Step 4. 
Legal review
Step 5. 
Reporting of the 
investigation result
Step 6. 
Evaluation of 
necessity to con-
vene the Person-
nel Committee 
meeting
Step 7. 
Personnel  
Committee  
meeting
Step 8. 
Case closing
Reporting Website
2021/22 NEXEN TIRE ESG Report      81
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Risk Management System 
Risk Management Organization and Reporting System 
NEXEN TIRE appointed the Chief Risk Officer (CRO) and designated a risk 
management department in 2020 for preemptive and retroactive risk man-
agement through proactive recognition and analysis of and response to risk 
factors in the business environment. As of 2021, we are systematically mon-
itoring and managing a total of 42 risks such as financial, credit, and operat-
ing risks. With the risk monitoring results reported to the CRO monthly, we 
strive to achieve normalization and stable development of our management 
activities. In addition, we update the risk items through a company-wide 
agreement each year. 
Financial Risk Management
Being engaged in global business, NEXEN TIRE is exposed to various financial 
risks, foreign exchange risks, liquidity risks, and tax-related risks. Risk manage-
ment is essential for our entry into the second major growth phase through the 
operation of the European plant and for the establishment of a stable financial 
basis. To this end, we are constantly monitoring for risks, reviewing the identified 
major issues, and developing response strategies. 
Financial Risks 
While the required amount of operating fund is increasing as a result of the 
rapid rise in ocean freight and raw material price across the globe, NEXEN 
TIRE’s borrowings has also been increasing since 2021 following the sec-
ond investment in the European manufacturing plant. In response, we have 
established a financial risk management structure by expanding the propor-
tion of stable long-term and short-term borrowings to improve cash flows 
and strengthened financial stability through the sale of export bonds under 
non-recruiting conditions. At the same time, we are maintaining a stable 
financial structure with borrowings using the “swap” system. We have been 
improving our credit ratings and continuing stable financial activities by 
repaying borrowings using cash generated from sales as a financial source 
and through successful issuance of corporate bonds in 2020. 
Foreign Exchange Risks 
With NEXEN TIRE expanding global operations, exports accounted for 
approximately 82% of its sales in 2021. As a result, we are exposed to foreign 
exchange risks in relation to the collection and operation of foreign curren-
cies. In principle, assets and liabilities for each currency are matched to mini-
mize foreign exchange risks. Foreign exchange risks for surplus currencies are 
separately managed based on the cash flow analysis by currency. Currently, 
we are reviewing foreign exchange risk management internally through more 
sophisticated derivatives trading compared to the existing products, and we 
will establish a more specialized strategy based on the review. 
Risk Management 
Level
Definition
A
Normal
Ordinary risk (average over the last three years) 
B
Caution
Requiring caution/monitoring 
C
Warning
Requiring active response 
Company-wide Risk Classification 
Financial risks
Monetary risks
Liquidity risks
Foreign exchange risks
Tax-related risks
Non-financial risks
Business continuity risks
Information security risks
Legal risks
ESG risks
*KRI: Key risk indicator 
**Current Risk: Risk identified through recognition of unexpected risk occurrence or worsen-
ing of KRI that requires immediate management/control 
***KRIs are divided into levels A, B, and C 
Company-wide Risk Management Process 
Selecting full-
time manage-
ment items
Finalizing KRIs
KRI 
Monitoring
Preparing 
response plans
Selecting KRIs* 
according to full-
time management 
items
Receiving the 
KRI monitoring 
result
Reviewing 
control tower 
formation
Collecting 
and reporting 
response plans
Level C 
Level A & B 
Current risk** 
Reviewing the 
KRI level***
2021/22 NEXEN TIRE ESG Report      82
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Liquidity Risks
Through integrated and organic liquidity management between the head-
quarters and overseas subsidiaries, we are preparing for unpredictable liquid-
ity constraints. We are focusing on establishing a stable financial structure to 
respond immediately to global turbulences by selling export bonds and pro-
cessing a large-scale limited credit loan that can be borrowed and repaid at any 
time. Distributed transactions through multiple financial institutions under this 
credit line enable us to manage financial expenses and reduce risks from spe-
cific financial institutions.
Tax Risks
NEXEN TIRE preemptively identifies and manages tax-related risks by contin-
uously monitoring changes in tax-related regulations and policies. We faith-
fully fulfill our tax reporting and payment obligations at domestic and over-
seas worksites based on a reasonable tax strategy. Complying with tax laws 
and regulations in countries where our worksites are located, we prohibit the 
transfer of values to areas with low tax jurisdictions, refrain from using financial 
structures for tax evasion, shun transfer pricing, and avoid secrecy jurisdictions 
and tax havens.
Non-financial Risk Management
Stakeholders’ expectations as to the company’s non-financial factors are 
gradually increasing. Accordingly, we are subdividing internal and exter-
nal ESG management-related risk factors to identify risks preemptively and 
strengthen our response in order to secure market competitiveness contin-
uously.
Business Continuity Risks
NEXEN TIRE has established a process through which the Chief Risk Officer 
(CRO) can immediately form a control tower to respond systematically to 
the occurrence of a current risk (fire in manufacturing plant, natural disas-
ter, disease, war, etc.). We are also operating the dedicated department we 
have established. In the event of a current risk, we strive to overcome the risk 
through effective response and seize new opportunities to develop together 
with our stakeholders, employees, shareholders, and customers.
Legal Risks
As a global business, NEXEN TIRE is exposed to various legal risks both in Korea 
and abroad. The legal risks are derived from potential risks arising from (i) non-
compliance with domestic and foreign laws, (ii) disputes related to various 
projects or contracts, (iii) domestic and international litigation and other forms 
of litigation, and (iv) other business or social and environmental changes.
NEXEN TIRE is expected to experience as well the occurrence of legal issues 
in the fields of product liability, privacy protection, fair trade and e-com-
merce, and international trade, etc. with regard to the business operated in 
each country. Results from the occurrence of such risks may cause significant 
financial damage and adversely affect our business activities and reputation 
as well.
Meanwhile, in 2019, the Fair Trade Commission imposed a penalty onus for 
the case of “resale price maintenance.” Since the event, we have been imple-
menting effective response plans we have established for potential risks in 
the future, such as actively preventing conducts in violation of fair competi-
tion by controlling whether various transactions are being made appropri-
ately, providing company-wide education, conducting regular status survey, 
and taking improvement actions through the legal affairs and ethical man-
agement organization. For the systematic management of legal risks, we 
are building an organized review system by establishing a risk management 
team and promoting cooperation among the relevant departments. We are 
monitoring legal risks that can affect our business in addition to checking in 
advance for any violations of domestic and foreign laws and various interna-
tional treaties by strengthening the contract signing and screening process.
Information Security Risks
The importance of information security in the automotive industry is ampli-
fying along with compliance with information security-related laws that are 
being reinforced domestically and internationally. NEXEN TIRE is making var-
ious efforts to protect customer data and internal technologies from cyber 
attacks. Having established a information security management system, we 
are performing information security activities that conform to domestic and 
overseas systems and security standards. In addition, through the Audit Com-
mittee, the company’s security risks are being monitored constantly. We also 
appoint a Chief Information Security Officer (CISO) and a Chief Privacy Officer 
(CPO). The department in charge of risk management designates information 
security risks as a key risk indicator (KRI) and conducts monthly inspections. 
Our worksites in Korea and abroad have appointed specialized security oper-
ation personnel to perform information production inspection and improve-
ment activities organically with the headquarters.
ESG Risks
NEXEN TIRE’s risk management supervising department selects and man-
ages ESG-related risks annually and develops risk response plans. 
2021/22 NEXEN TIRE ESG Report      83
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Health and Safety Risks
Having improved the safety level 
by introducing a safety school pro-
gram, a safety reporting system, 
and a smart alarm system, discov-
ering risk factors, and operating 
improvement 
programs, 
NEXEN 
TIRE was commended by the Minis-
try of Employment and Labor and Korea Occupational Safety & Health Agency 
(KOSHA) for considerably contributing to the prevention of occupational acci-
dents. As a result, the safety manager of NEXEN TIRE’s Yangsan Plant received 
the KOSHA President citation. Among our domestic manufacturing plants, 
Yangsan Plant obtained a Grade S in the Process Safety Management (PSM), 
a system for reviewing process safety reports for the prevention of exposure to 
hazardous substances, fire, and explosion every four years from the first review, 
and it has maintained such assessment level continuously. In the case of Chang-
nyeong Plant, it first garnered a Grade M+. Through continued effort, however, 
it obtained a Grade S in 2017, and it has been maintaining such since then.
Fire Risks
To reduce fire risks, NEXEN TIRE invests in facilities, conducts facility management 
through daily inspections, and provides basic simulation training. Equipped with 
various firefighting facilities for each facility that involves the use of fire, we imple-
ment monthly firefighting facility inspections through specialist companies 
along with self-inspections on Fire Prevention Day and statutory inspections. In 
2021, the facilities were improved through investment of KRW 65 million. The 
improvement activities will be continuously performed in 2022. On Fire Preven-
tion Day every second Wednesday of the month, we prepare a self-inspection 
report and submit it to the fire station. In addition, we maintain a 24-hour fire 
monitoring system by operating an internal disaster prevention center. 
Response to COVID-19
Response to COVID-19 Risk
NEXEN TIRE’s Magok Central Research Institute is implementing the disease 
prevention guidelines it has established according to the guidelines of the Cen-
tral Disaster and Safety Countermeasures Headquarters (Korea Disease Con-
trol and Prevention Agency, etc.). It is strengthening the disease prevention and 
response system according to the situations.
 
COVID-19-related Supporting Activities
In 2021, for agencies experiencing difficulties 
due to consumer sentiment decline caused by 
COVID-19, NEXEN TIRE held four prize give-
away events for consumers (in Feb., Apr., Jul., 
Sep.). In December 2021, we distributed KF94 
masks through 1,297 agencies across the country to support their safe busi-
ness activities. 
	
  Response to Confirmed Case
	
       Disease Prevention Activities at THE NEXEN univerCITY
 
Response Activities 
Disease Prevention Activities
	
Confirmed Case in Worksite
˙	Instructing the employee concerned to leave work immediately and quarantine at 
home for seven days (paid leave)
˙	Conducting rapid antigen test on employees who have been in contact with the 
confirmed case (test expenses fully supported)
˙	Conducting disinfection along moving routes and in the office space of the 
confirmed case
	
Confirmed Case in Family
˙	Instructing the employee concerned to leave work immediately and take a PCR test
˙	Not ruling out from commuting to work if the employee holds negative COVID-19 
test result and has no symptoms for three days from the date of test(quarantine if 
confirmed) 
	
Monitoring of Symptoms Displayed by Confirmed Case  
(Quarantined Person)
˙	Monitoring symptoms and severity of confirmed case (over the phone)
˙	Encouraging employee displaying residual symptoms, such as coughing, after 
quarantine to telecommute 
	
At Entry
˙	Measuring and recording the body 
temperature of employees and 
visitors entering the building
˙	Placing a hand sanitizer for use in 
communal spaces and entrances 
	
Disease Prevention Rules in the 
Workplace
˙	Wearing a face mask at all times
˙	Conducting periodic disinfection and 
ventilation
˙	Implementing the flexible working 
hours system (3 shifts) and 
telecommuting for one third of all 
employees
˙	Refraining from group events, such 
as education and gathering 
	
Meetings in the Workplace
˙	Refraining from face-to-face meeting
˙	Refraining from drinking beverages 
during meetings and encouraging 
the use of hand sanitizer  
	
Cafeterias and Restaurants
˙	Social distancing (no conversation 
while eating)
˙	Sitting apart from other seats (no 
conversation while eating) 
	
Business Trip
˙	Providing guidelines for business trip 
according to the social distancing level
˙	Encouraging videoconference as 
much as possible
2021/22 NEXEN TIRE ESG Report      84
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

86	
Initiatives and Awards
87	
ESG Data
98	
SASB Standards Index
99	
TCFD Standards Index
100	 GRI Standards Index
103	 Third-party Assurance
104 GHG Verification Statement
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Initiatives and Awards 
Response to Initiatives     
Awards 
Design Awards
Initiative
Year of 
Membership 
Description
GPSNR (Global Platform 
for Sustainable Natural 
Rubber)
2020
A global platform for sustainable natural 
rubber established through cooperation 
among tire manufacturers, NGOs (non-
government organizations), rubber 
producers, and rubber processing companies
ETRMA (European 
Tyre & Rubber 
Manufacturers’ 
Association)
2022
An organization representing the 
regulations and interests of tire and rubber 
manufacturing companies in Europe and 
international society
FKI (Federation of 
Korea Industries) K-ESG 
Alliance
2022
An environmental, social, and governance 
(ESG) federation launched under the 
leadership of FKI
Date
Description
2022.6.
Ranked No. 1 in the global customer satisfaction index (GCSI)  
for 13 consecutive years
Won the Grand Prize at the Gyeongsangnam-do Quality Control Circle Con-
test 2022 (Yangsan Plant, Changnyeong Plant)
- Won the award for 12 consecutive years since 2011
Received prize in the general service sector of the 2021 National Service Awards
Won the GM Supplier Quality Excellence Award 2021  
(for eight consecutive years)
2021.11.
Selected as Excellent Company in Quality Competitiveness at the National 
Quality Management Convention (certificate and plaque from the Minister of 
Trade, Industry, and Energy)
2021.8.
Won the Presidential Silver Medal in two categories at the National Quality 
Control Circle Contest
- Won the Presidential Award for 11 consecutive years since 2011
2021.6.
2020 GM Supplier Quality Excellence
Received Award(Excellent Quality) (for 7 consecutive years)
Named Best Supplier of the Year by Stellantis, a global automotive company
2021.5.
Won the Grand Prize at the Korea Labor-Management Cooperation Awards 
of the Korea Enterprises Federation
2021.4.
N’FERA Sport ranked No. 1 in the summer tire performance test conducted 
by German automobile magazine ACE Lenkrad
2021.2.
Yangsan Plant certified as excellent workplace in health promotion activities 
for 13 consecutive years
Won prize in the product design category at the Red Dot Design Award 2022 
in Germany 
External Initiative Response Performance
Initiative
2020
2021
Remarks
EcoVadis
Bronze
Silver
Increased by 1 level
KCGS
Overall
B+
B+
Maintained
Environmental
B+
B+
Maintained
Social
B+
A
Increased by 1 level
Governance
B
B
Maintained
MSCI
B
B
Maintained
CDP
Climate Change
C
C
Maintained
2021/22 NEXEN TIRE ESG Report      86
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Economic Performance 
Financial Performance* 
Classification
Unit
2019
2020
2021
Sales
KRW 100 million
20,223.4
16,981.2
20,794.1
Cost of sales
KRW 100 million
14,056.9
12,598.0
16,398.0
Gross profit
KRW 100 million
6,166.5
4,383.2
4,396.1
Logistics cost
KRW 100 million
448.2
472.9
616.6
Sales and administrative expenses
KRW 100 million
3,644.6
3,516.1** 
3,735.6
Operating profit
KRW 100 million
2,073.7
394.2
43.9
Other income
KRW 100 million
37.0
49.0
46.4
Other expenses
KRW 100 million
140.7
59.7
97.5
Financial income
KRW 100 million
923.5
640.2
843.1
Financial expenses
KRW 100 million
1,050.1
1,150.5
671.1
Net profit (loss) before income tax
KRW 100 million
1,843.3
(126.8)
164.8
Income tax expenses
KRW 100 million
658.8
39.2
118.5
Net profit (loss) during the term
KRW 100 million
1,184.5
(166.0)
46.3
Other comprehensive income
KRW 100 million
215.7
156.2
585.6
Total comprehensive income
KRW 100 million
1,400.2
(9.8)
631.9
Current assets
KRW 100 million
10,885.5** 
12,002.7** 
14,760.0
Non-current assets
KRW 100 million
23,475.0
23,408.1
23,474.1
Total assets
KRW 100 million
34,360.5
35,410.8
38,234.1
Current liabilities
KRW 100 million
6,184.2
7,667.5
10,417.3
Non-current liabilities
KRW 100 million
12,597.3
12,273.8
11,817.6
Total liabilities
KRW 100 million
18,781.5
19,941.3
22,234.9
Total equity
KRW 100 million
15,579.0
15,469.5
15,999.2
*Based on consolidated financial statements 
**Figures adjusted through rounding
Performance by Business Sector*
Classification
Unit
2019
2020
2021
Total
Sales
KRW 100 million
20,223.4
16,981.2
20,794.1
Operating profit/loss
KRW 100 million
2,073.7
394.2
43.9
Assets
KRW 100 million
34,360.5
35,410.8
38,234.1 
Liabilities
KRW 100 million
18,781.5
19,941.3
22,234.9 
Tire
Sales
KRW 100 million
29,471.8
24,305.5
29,011.5
Operating profit/loss
KRW 100 million
1,808.4
177.7
(327.0)
Assets
KRW 100 million
43,960.0
44,315.0
46,984.8
Liabilities
KRW 100 million
23,071.0
23,640.4
25,927.6
Non-tire  
(transportation  
and storage)
Sales
KRW 100 million
154.0
100.0
99.7
Operating profit/loss
KRW 100 million
16.7
19.9
13.1
Assets
KRW 100 million
447.6
424.3
396.0
Liabilities
KRW 100 million
236.0
200.1
164.9
Non-tire  
(molds)
Sales
KRW 100 million
39.3
59.8
48.6
Operating profit/loss
KRW 100 million
(1.6)
2.1
(1.7)
Assets
KRW 100 million
41.0
54.0
50.1
Liabilities
KRW 100 million
5.0
14.6
6.6
Non-tire  
(bakery, etc.)
Sales
KRW 100 million
55.8
50.7
57.6
Operating profit/loss
KRW 100 million
0.2
(0.5)
(0.2)
Assets
KRW 100 million
4.3
4.3
17.0
Liabilities
KRW 100 million
1.0
0.9
1.2
Internal  
transaction 
removal
Sales
KRW 100 million
(9,497.5)
(7,534.8)
(8,423.3)
Operating profit/loss
KRW 100 million
250.1
195.1
359.7
Assets
KRW 100 million
(10,092.4)
(9,386.8)
(9,213.8)
Liabilities
KRW 100 million
(4,531.5)
(3,914.7)
(3,865.4)
*Based on consolidated financial statements
ESG Data
2021/22 NEXEN TIRE ESG Report      87
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Performance Distribution to Stakeholders
Classification
Unit
2019
2020
2021
Government
Income tax
KRW 100 million
658.8
39.2
118.5
Suppliers
Purchase cost*
KRW 100 million
7,863.0
5,481.0
8,609.0 
Employees
Total (wage and welfare benefits)
KRW 100 million
4,609.4
4,419.6
4,439.4
Wage**
KRW 100 million
4,075.7
3,929.9
3,925.8
Welfare benefits***
KRW 100 million
533.7
489.7
513.6
Shareholders
Dividends and interest expenses
KRW 100 million
316
291
300
*Consolidated, tire raw material purchase amount (natural rubber, etc.)
**Consolidated (wages, bonuses, allowances, miscellaneous allowances)
***Consolidated (four major insurances, health checkups, and other welfare expenses)
Launched Products and Services
Classification
Unit
2019
2020
2021
Number of launched products/services*
Products/Services
149
269
309
*Categorized as new products for two years from launch
Environmental Performance
Greenhouse Gas 
Classification
Unit
2019
2020
2021
Total
tCO2eq
347,786* 
309,222* 
368,296
Direct GHG  
emissions  
(Scope 1)
Yangsan Plant
tCO2eq
7,573
5,046
5,801
Changnyeong Plant
tCO2eq
24,598
20,158
23,412
Qingdao Plant**
tCO2eq
25,880
21,410
24,842
Europe Plant**
tCO2eq
7,211
9,757
13,177
Others***
tCO2eq
191
264
301
Subtotal
tCO2eq
65,453* 
56,635*
67,533
Indirect  
GHG emissions  
(Scope 2)
Yangsan Plant
tCO2eq
120,897
100,045
114,892
Changnyeong Plant
tCO2eq
58,568
50,003
58,300
Qingdao Plant**
tCO2eq
69,453
58,539
66,271
Europe Plant**
tCO2eq
31,241
41,977
58,539
Others***
tCO2eq
2,174
2,023
2,761
Subtotal
tCO2eq
282,333* 
252,587* 
300,763
GHG emissions reduced
tCO2eq
(41,583)
38,564
(59,074) 
GHG emissions 
intensity  
(Scope 1 + 2)
Total  
production  
weight
Yangsan Plant
ton
194,355
157,313
182,156
Changnyeong Plant
ton
109,337
85,661
105,147
Qingdao Plant**
ton
9,657
24,385 
41,886
Europe Plant**
ton
98,141
74,650
88,985
Others***
ton
0
0
0
Subtotal
ton
411,490
342,009
418,174
GHG emissions 
intensity  
(Scope 1 + 2)
Yangsan Plant
tCO2eq/ton
0.661
0.668
0.663
Changnyeong Plant
tCO2eq/ton
0.761
0.819
0.777
Qingdao Plant**
tCO2eq/ton
3.982
2.122
1.712
Europe Plant**
tCO2eq/ton
0.971
1.071
1.024
Others***
tCO2eq/ton
0
0
0
Subtotal
tCO2eq/ton
0.845*
0.904
0.881
*Data of 2019 and 2020 recalculated by including GHG emissions from Qingdao Plant
**Excluded from verification
***Daegu PG, THE NEXEN univerCITY, sales offices nationwide
2021/22 NEXEN TIRE ESG Report      88
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Air Pollutants
Classification
Unit
2019
2020
2021
Total
ton
210.3
171.2 
75.3
NOx emissions
Yangsan Plant
ton
48.2
48.2
41.0
Changnyeong Plant
ton
87.7
87.7
7.1
Europe Plant
ton
7.2
6.4
4.7
Qingdao Plant
ton
42.4
16.4
7.4
Subtotal
ton
185.5
158.7
60.2
SOx emissions
Yangsan Plant
ton
0.1
0.1
0.0
Changnyeong Plant
ton
0.2
0.2
0.0
Europe Plant
ton
-
-
-
Qingdao Plant
ton
0.8
0.4
0.2
Subtotal
ton
1.1
0.7
0.2
Particulate  
matter (PM)  
emissions
Yangsan Plant
ton
10.4
3.3
1.7
Changnyeong Plant
ton
12.4
7.6
7.2
Europe Plant
ton
0.4
0.7
1.7
Qingdao Plant
ton
0.5
0.2
4.3
Subtotal
ton
23.7
11.8
14.9
Energy
Classification
Unit
2019
2020
2021
Total
TJ
5,184
4,445
5,332
Fuel (LNG, LPG, die-
sel, etc.)
Yangsan Plant
TJ
　143
　95
111
Changnyeong Plant
TJ
　483
　396
460
Qingdao Plant*
TJ
　399
　329
440 
Europe Plant*
TJ
　145
　196
238
Others**
TJ
-
-
4
Subtotal
TJ
1,170
1,016
1,253
Purchased  
electricity  
consumption
Yangsan Plant
TJ
　1,608
　1,349
1,571
Changnyeong Plant
TJ
　1,206
　1,030
1,218
Qingdao Plant*
TJ
　311
　262
297
Europe Plant*
TJ
　131
　176
　232
Others**
TJ
-
-
57
Subtotal
TJ
3,256
2,817
3,375
Purchased steam 
consumption
Yangsan Plant
TJ
　758
　612
703
Changnyeong Plant
TJ
-
-
-
Europe Plant*
TJ
-
-
-
Qingdao Plant*
TJ
-
-
-
Subtotal
TJ
758
612
703
Renewable energy  
consumption
Yangsan Plant
TJ
-
-
-
Changnyeong Plant
TJ
-
-
-
Europe Plant
TJ
-
-
-
Qingdao Plant
TJ
-
-
-
Subtotal
TJ
-
-
-
Energy intensity
Yangsan Plant
TJ/ton
0.013
0.013
0.013
Changnyeong Plant
TJ/ton
0.015
0.017
0.016
Europe Plant
TJ/ton
0.029
0.015
0.011
Qingdao Plant
TJ/ton
0.007
0.008
0.008
Subtotal
TJ/ton
0.013***
0.013***
0.013
*Excluded from verification
**Daegu PG, THE NEXEN univerCITY, sales offices nationwide
***Data of 2019 and 2020 recalculated by including energy consumptions in Qingdao Plant
2021/22 NEXEN TIRE ESG Report      89
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Water resources
Classification
Unit
2019
2020
2021
Total
㎥
1,961,048
1,720,395
1,881,657
Water  
consumption
Yangsan Plant
Groundwater
㎥
1,059,210
906,529
953,111
Potable water
㎥
31,134
27,313
29,760
Subtotal
㎥
1,090,344
933,842
982,871
Changnyeong Plant
Industrial water
㎥
359,937
318,023
369,249
Domestic water
㎥
78,154
68,379
77,457
Subtotal
㎥
438,091*
386,402*
446,706
Qingdao Plant
Potable water
㎥
　369,634
　300,856
337,193
Europe Plant 
Surface water
㎥
62,979
99,295
114,887
Total
mg/L
150.6 
164.5
186.5 
Concentration of 
water pollutant  
discharge
Yangsan Plant
mg/L
64.3
75.7
85.7
Changnyeong Plant
mg/L
46.5
59.4
61.6
Qingdao Plant
mg/L
25.8
6.4
29.5
Europe Plant
mg/L
14.0
23.0
9.7
Total
ton
403,245 
327,354
282,221
Wastewater  
discharge
Yangsan Plant
Wastewater
ton
3,822
2,615
7,291
Changnyeong Plant
Wastewater
ton
29,789
23,883
43,080
Qingdao Plant
Wastewater
ton
369,634
300,856
113,481
Europe Plant
Wastewater
ton
-
-
118,369
*Figures of water consumption in 2019 and 2020 corrected due to display error
Waste
Classification
Unit
2019
2020
2021
Total
ton
9,798.7
8,608.8
10,323.3
General waste  
discharge
Recycling
Yangsan Plant
ton
2,630.7
2,160.8
2,480.1
Changnyeong Plant
ton
2,269.7
1,797.0
2,268.8
Qingdao Plant
ton
710.6
555.0
1,273.8
Europe Plant
ton
1,351.0
2,142.7
2,241.8
Incineration
Yangsan Plant
ton
-
-
0
Changnyeong Plant
ton
-
-
0
Qingdao Plant
ton
-
-
0
Europe Plant
ton
-
-
0
Landfill
Yangsan Plant
ton
36.2
61.1
54.3
Changnyeong Plant
ton
22.6
25.0
32.5
Qingdao Plant
ton
-
-
18.9
Europe Plant
ton
1,065.5
998.7
866.4 
Subtotal
ton
8,086.3
7,740.3
9,236.6
Hazardous  
waste discharge
Recycling
Yangsan Plant
ton
187.3
157.0
161.0
Changnyeong Plant
ton
228.5
133.0
192.6
Qingdao Plant
ton
134.1
150.0
183.1
Europe Plant
ton
636.2
203.1
195.4
Incineration
Yangsan Plant
ton
58.3
54.2
65.0
Changnyeong Plant
ton
34.1
33.0
80.7
Qingdao Plant
ton
160.8
138.0
152.2
Europe Plant
ton
272.7
-
56.7
Landfill
Yangsan Plant
ton
0.4
0.2
0
Changnyeong Plant
ton
-
-
0
Qingdao Plant
ton
-
-
0
Europe Plant
ton
-
-
0
Subtotal
ton
1,712.4
868.5 
1.086.7
2021/22 NEXEN TIRE ESG Report      90
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Raw Materials
Classification
Unit
2019
2020
2021
Total
ton
285,654
213,016
260,628
Raw material 
consumption 
Yangsan Plant
Natural rubber
ton
48,214
33,640
39,797
Synthetic rubber
ton
44,766
33,057
40,423
Carbon black
ton
44,150
34,412
40,005
Silica
ton
10,181
6,322
7,565
Textiles
ton
9,205
6,949
8,273
Steel cord
ton
15,757
12,463
15,202
Bead wire
ton
7,710
5,921
6,925
Subtotal
ton
179,983
132,764
158,190
Changnyeong 
Plant
Natural rubber
ton
26,269
19,671
24,991
Synthetic rubber
ton
27,842
22,254
27,518
Carbon black
ton
23,246
16,667
22,146
Silica
ton
10,412
7,459
10,350
Textiles
ton
5,249
4,053
4,974
Steel cord
ton
7,933
6,437
7,880
Bead wire
ton
4,720
3,711
4,579
Subtotal
ton
105,671
80,252
102,438
Environmental Management
Classification
Unit
2019
2020
2021
ISO 14001  
certification rate
All plants
ea
4
4
4
Implementing plants
ea
3
4
4
Ratio
%
75*
100
100
Environmental risk 
assessment rate
All plants
ea
4
4
4
Implementing plants
ea
3
4
4
Ratio
%
75*
100
100
*2019 figure corrected due to display error
Environmental Training
Classification
Unit
2019
2020
2021
Environmental training 
completion rate
Target persons*
Persons
36
11
69
Persons who completed training**
Persons
36
11
69
Training Completion Rate
%
100
100
100
*Subject to new technical employees
**Based on domestic worksites
2021/22 NEXEN TIRE ESG Report      91
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Social Performance
Occupational Health and Safety
Classification
Unit
2019
2020
2021
Lot Time Injuries  
Frequency Rate  
(LTIFR)
Employees
Yangsan Plant
Cases/one million working hours
1.000
0.670
2.002
Changnyeong Plant
Cases/one million working hours
1.208
0.295
2.385
Korea (Yangsan,  
Changnyeong)
Cases/one million working hours
1.074
0.509
2.130
Partners
Yangsan Plant
Cases/one million working hours
0
0
2.215
Changnyeong Plant
Cases/one million working hours
0
0
3.295
Korea (Yangsan,  
Changnyeong)
Cases/one million working hours
0
0
2.649
Accident rate
Employees
Yangsan Plant
%
0.291
0.146
0.479
Changnyeong Plant
%
0.339
0.084
0.498
Korea (Yangsan, Chan-
gnyeong)
%
0.309
0.123
0.486
Partners
Yangsan Plant
%
0
0
0.599
Changnyeong Plant
%
0
0
0.917
Korea (Yangsan, Chan-
gnyeong)
%
0
0
0.725
Work environment 
measurement
Number of cases surpassing  
the criteria
Services
-
-
0
Health and safety  
system application 
rate
Target persons
Persons
4,137
4,171
4,088
Persons covered by the system
Persons
3,806
3,837
3,860
Application rate
%
92
92
94
Internal audit rate
Target persons
Persons
4,137
4,171
4,088
Number of employees subject to 
implementation
Persons
3,806
3,837
3,860
Ratio
%
92
92
94
Occupational Health and Safety
Classification
Unit
2019
2020
2021
KOSHA-MS  
certification rate
All plants*
Products/Services
2
2
2
Implementing plants
Products/Services
1
1
1
Ratio
%
50
50
50
Health and safety risk 
assessment rate
All plants
Products/Services
3
4
4
Implementing plants
Products/Services
3
4
4
Ratio
%
100
100
100
*KOSHA-MS applied to Yangsang Plant and Changnyeong Plant only
Suppliers
Classification
Unit
2019
2020
2021
Percentage of  
suppliers subjected 
to ESG assessment
Total number of suppliers
Products/Services
135
133
131
Number of assessed suppliers
Products/Services
0
121
Not imple-
mented*
Percentage of assessed suppliers
%
0
91.0
Not imple-
mented*
Purchase cost**
KRW 100 million
7,863
5,481
8,609
*Some assessment items changed according to the supplier ESG policy revision, ESG assessment to be re-conducted in 2022
**Consolidated, tire raw material purchase amount (natural rubber excluded)
Employees
Classification
Unit
2019
2020
2021
Total
Persons
6,841*
6,669*
6,860
Gender
Male
Persons
6,369*
6,155*
6,252
Female
Persons
472*
514*
608
Age
Under the age of 30
Persons
1,155
884
947
30 - 50 years of age
Persons
5,077
5,114
5,195
Over 50 years of age
Persons
609
671
718
Nationality
Korea
Persons
4,207*
4,163*
4,124
Others
Persons
2,634*
2,506*
2,736 
Female employees
Number of female executives
Persons
0
0
0
Percentage of female executives**
%
0.1
0.1
0.1
Employees with disabilities
NEXEN TIRE
Persons
55
55
57
N’zel Withus
Persons
9
11
16
*Data for 2019 and 2020 were changed due to the data management tool modification, caused by the integration on internal  
HR management system
**Job position equivalent to manager and above
2021/22 NEXEN TIRE ESG Report      92
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Parental leave 
Classification
Unit
2019
2020
2021
Maternity leave 
Total
Persons
175
188
170
Male
Persons
172*
184* 
163
Female
Persons
3*
4* 
7
Rate of return after 
maternity leave
Total number of employees taking maternity leave
Persons
175
193
182
Employees who returned after maternity leave
Persons
174
193
182
Male employees who returned after paternity leave
%
99.4*
100.0
100.0
Parental leave
Total
Persons
9
16
14
Male
Persons
5*
12*
5
Female
Persons
4*
4*
9
Rate of return after 
parental leave
Total number of employees taking parental leave
Persons
9
16
14
Employees who returned after maternity leave
Persons
7
13
10
Rate of return after leave
%
77.8*
81.3*
71.4
*Data for 2019 and 2020 were changed due to the data management tool modification, caused by the integration of internal HR 
management system
Average Number of Years of Continuous Service
Classification
Unit
2019
2020
2021
Gender
Male
Years
8.9
9.8
10.2
Female
Years
4.6
4.6
4.4
Labor-management Relationship
Classification
Unit
2019
2020
2021
Labor Union
Number of employees subject to labor union membership
Persons
2,964
2,954
2,928
Number of employees who have joined the labor union (Ko-rea)
Persons
2,958
2,946
2,920
Percentage of employees who have joined the labor union 
(those subject to labor union membership)*
%
99.5
99.6
99.7
Labor-Management 
Council
Items handled
Cases
23
20
21
Total number of Labor-Management representatives
Persons
14
16
18
*Employees subject to labor union membership are limited to technical employees and entry-level office workers
New Recruitment
Classification
Unit
2019
2020
2021
Total
Persons
1,156
532
1,014
Gender
Male
Persons
999
411
764
Female
Persons
157
121
250
Age
Under the age of 30
Persons
636
257
569
30 - 50 years of age
Persons
465
257
427
Over 50 years of age
Persons
55
18
18
Region
Korea
Persons
197
117
234
Others
Persons
959
415
780
Employee Turnover
Classification
Unit
2019
2020
2021
Total
Persons
928
704
824
Gender
Male
Persons
816
626
668
Female
Persons
112
78
156
Age
Under the age of 30
Persons
407
287
331
30 - 50 years of age
Persons
449
360
423
Over 50 years of age
Persons
72
57
70
Nationality
Korea
Persons
198
152
266
Others
Persons
730
552
558
Turnover rate
Target employees
Persons
6,841
6,669
6,860
Employee turnovers
Persons
928
704
824
Turnover rate
%
13.6
10.6
12.0
Voluntary  
turnover rate
Target employees
Persons
6,841
6,669
6,860
Employee turnovers
Persons
404
331
463
Turnover rate
%
5.9
5.0
6.7
2021/22 NEXEN TIRE ESG Report      93
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Employee Diversity
Classification
Unit
2019
2020
2021
Total
Persons
6,841*
6,669*
6,860
Total number of 
employees  
by gender
Male
Under the age of 30
Persons
993
732
752
30 - 50 years of age
Persons
4,782
4,773
4,807
Over 50 years of age
Persons
594
650
693
Subtotal
Persons
6,369*
6,155*
6,252
Female
Under the age of 30
Persons
162
152
195
30 - 50 years of age
Persons
295
341
388
Over 50 years of age
Persons
15
21
25
Subtotal
Persons
472*
514*
608
Total number of 
employees by 
nationality
Korea
Under the age of 30
Persons
378
307
308
30 - 50 years of age
Persons
3,333
3,315
3,246
Over 50 years of age
Persons
496
541
570
Subtotal
Persons
4,207*
4,163*
4,124
Foreign
Under the age of 30
Persons
777
577
639
30 - 50 years of age
Persons
1,744
1,799
1,949
Over 50 years of age
Persons
113
130
148
Subtotal
Persons
2,634*
2,506*
2,736
*Data for 2019 and 2020 were changed due to the data management tool modification, caused by the integration on internal  
HR management system
Employee Diversity
Classification
Unit
2019
2020
2021
Number of 
employees  
according to 
employment  
contract type
Permanent
Persons
6,681*
6,474*
6,690
Male
Under the age of 30
Persons
932
650
697
30 - 50 years of age
Persons
4,725
4,704
4,766
Over 50 years of age
Persons
584
639
683
Subtotal
Persons
6,241*
5,993*
6,146
Female
Under the age of 30
Persons
139
130
151
30 - 50 years of age
Persons
286
330
368
Over 50 years of age
Persons
15
21
25
Subtotal
Persons
440*
481*
544
Temporary
Persons
160*
195*
170
Male
Under the age of 30
Persons
61
82
55
30 - 50 years of age
Persons
57
69
41
Over 50 years of age
Persons
10
11
10
Subtotal
Persons
128*
162*
106
Female
Under the age of 30
Persons
23
22
44
30 - 50 years of age
Persons
9
11
20
Over 50 years of age
Persons
0
0
0　
Subtotal
Persons
32*
33*
64
*Data for 2019 and 2020 were changed due to the data management tool modification, caused by the integration on internal  
HR management system
2021/22 NEXEN TIRE ESG Report      94
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Social Contribution (Foundation Operation)
Classification
Unit
2019
2020
2021
Total operating 
expenses
NEXEN Wolsuk Cultural Foundation
KRW million
222
595
759
KNN Scholarship
KRW million
189
155
177
Wolsuk Busan Leading Scholarship Committee
KRW million
60
60
60
Scholarship 
beneficiaries
NEXEN Wolsuk Cultural Foundation
Persons
525
497
525
KNN Scholarship
Persons
189
154
176
Wolsuk Busan Leading Scholarship Committee
Persons
60
80
80
Employee Diversity
Classification
Unit
2019
2020
2021
Number of employees 
according to  
employment contract 
type by region
Permanent
Persons
6,681*
6,474*
6,690
Korea
Under the age of 30
Persons
318
231
246
30 - 50 years of age
Persons
3,159
3,173
3,115
Over 50 years of age
Persons
457
507
542
Subtotal
Persons
3,934*
3,911*
3,903
China
Under the age of 30
Persons
372
232
184
30 - 50 years of age
Persons
1,138
1,176
1,226
Over 50 years of age
Persons
15
24
30
Subtotal
Persons
1,525*
1,432*
1,440
Czech Republic Under the age of 30
Persons
355
290
398
30 - 50 years of age
Persons
545
518
617
Over 50 years of age
Persons
70
68
84
Subtotal
Persons
970*
876*
1,099
Others
Under the age of 30
Persons
26
27
20
30 - 50 years of age
Persons
169
167
176
Over 50 years of age
Persons
57
61
52
Subtotal
Persons
252*
255*
248
Temporary
Persons
160*
195*
170
Korea
Under the age of 30
Persons
37
60
51
30 - 50 years of age
Persons
48
45
37
Over 50 years of age
Persons
10
11
9
Subtotal
Persons
95*
116*
97
Czech Republic
Under the age of 30
Persons
46
44
48
30 - 50 years of age
Persons
18
35
22
Over 50 years of age
Persons
0
0
1
Subtotal
Persons
64*
79*
71
Others
Under the age of 30
Persons
1
　0
0
30 - 50 years of age
Persons
0
　0
2
Over 50 years of age
Persons
　0
　0
　0
Subtotal
Persons
1*
0
2
*Data for 2019 and 2020 were changed due to the data management tool modification, caused by the integration on internal  
HR management system
Employee Training
Classification
Unit
2019
2020
2021
Average training 
hours and sessions 
per employee
Annual training sessions
Sessions
6,206
5,419
7,717
Total training hours
Hours
79,769
27,385
46,333
Number of employees*
Persons
4,130
4,138
4,033
Average training sessions per employee
Session/person
1.5
1.3
1.9
Training hours per employee
Hours/person
19.3
6.6
11.5
*Subject to employees of domestic worksites and dispatched workers (expatriates, advisers, non-executive directors, securi-ty staff, and 
vehicle drivers excluded)
Training for Hazardous Substances
Classification
Unit
2019
2020
2021
Education for  
Hazardous Substances
Completion rate
Target persons*
Persons
3,134
3,259
3,317
Persons who completed training
Persons
3,134
3,259
3,317
Training completion rate
%
100
100
100
*Subject to workers in domestic plants
2021/22 NEXEN TIRE ESG Report      95
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Information Security Education
Classification
Unit
2019
2020
2021
Completion rate
Target persons
Persons
954
929
1,037
Persons who completed education
Persons
859
840
987
Training completion rate
%
90.0
90.4
95.2
*Based on domestic worksites
Privacy Protection Education
Classification
Unit
2019
2020
2021
Completion rate
Target persons*
Persons
65
82
101
Persons who completed education**
Persons
55
79
93
Training completion rate
%
84.6
96.3
92.1
*Education subject to personal information handlers
**Based on domestic worksites
Human Rights Education*
Classification
Unit
2019
2020
2021
Completion rate 
Total number of employees**
Persons
4,066
4,027
3,979
Persons who completed education
Persons
4,034
4,005
3,937
Training completion rate
%
99.2
99.5***
98.9
*Including training for sexual harassment prevention and improvement of awareness of the disabled
**Based on domestic worksites
***Corrected 2020 human rights education completion rate due to display error
Occupational Health and Safety* Education
Classification
Unit
2019
2020
2021
Completion rate
Target persons**
Persons
3,502
3,486
3,459
Persons who completed education
Persons
3,502
3,486
3,459
Education completion rate
%
100
100
100
*Including regular health and safety education, education of new employees, education of management supervisors, and practical training of 
firefighting safety management assistants
**Subject to workers in plants, including double counting
Quality Management
Classification
Unit
2019
2020
2021
Ratio of R&D cost  
to sales*
Ratio
%
4.6
5.4
4.1
Sales
KRW 100 million
20,223.4
16,981.2
20,794.1
R&D cost**
KRW 100 million
926.1
915.0
851.0
Free inspection 
service
Number of services provided
Services
468
156
-***
Number of vehicles
Vehicles
13,706
4,929
-***
General and policy 
compensations
Cases
Sessions
304
154
127
Compensation
Products/Services
756
364
353
Special warranty 
compensations
Cases
Sessions
963
704
583
Compensation
Products/Services
1,019
733
619
*Based on consolidated financial statements
**Before the deduction of government subsidies
***Free inspection service ended in 2021
Customer Satisfaction
Classification
Unit
2019
2020
2021
Customer satisfaction score
Points
98.9
96.8
95.6
Customer complaint* 
handling rate
Customer complaints
Sessions
3,303
2,418
1,755
Customer complaints handled
Sessions
3,265
2,402
1,754
Customer complaint handling rate
%
98.8
99.3
99.9
*Subject to customers raising claim
2021/22 NEXEN TIRE ESG Report      96
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Shareholders and investors
Classification
Unit
2019
2020
2021
Shareholder status
NEXEN Corp.
Shares
42,253,845
43,217,425
43,217,425
Byung-Joong Kang
Shares
19,001,037
19,001,037
19,001,037
Ho-Chan Kang
Shares
3,174,222
3,174,222
3,174,222
Other shareholders
Shares
33,238,773
32,275,193
32,275,193
Shares held by founders
Byung-Joong Kang
Shares
19,001,037
19,001,037
19,001,037
NEXEN Corp.
Shares
42,253,845
43,217,425
43,217,425
Shareholding status  
by management*
Byung-Joong Kang
Shares
19,001,037
19,001,037
19,001,037
Ho-Chan Kang
Shares
3,174,222
3,174,222
3,174,222
*Based on executive directors
Governance Performance
BOD Operation
Classification
Unit
2019
2020
2021
Number of BOD sessions
Total
13
14
10
Number of audit committee meetings
Total
4
9
5
Non-executive 
director  
attendance
Total number of non-executive directors
Persons
3
3
3
Number of non-executive directors  
attending BOD meetings
Persons
3
3
2.9
Attendance rate
%
100.0
100.0
96.7
BOD Operation
Classification
Unit
2019
2020
2021
CEO remuneration
KRW million
971
998
1,068
Average compensation of employees*
KRW million
70.6
61.7
65.6
CEO - to employee compensation ratio
Times
13.8
16.2
16.3
*Based on domestic worksites
Ethical Management
Classification
Unit
2019
2020
2021
Ratio of ethical 
risk assessment
Target worksites
ea
5
2
6
Implementing worksites
ea
5
2
6
Ratio
%
100
100
100
Number of cor-
ruption cases 
identified
Disciplinary measures 
due to corruption
Disciplinary measures
Cases
0
0
0
Dismissal
Cases
0
0
0
Contract termination by partner due to corruption
Cases
0
0
0
Legal measures due to corruption
Cases
0
0
0
Total number of corruption cases*
Cases
0
0
0
Penalties
Anti-competition, monopoly, etc.
KRW 100 million
11.48
0
0.2
*Cases under investigation during the reporting period not included
Ethical Management Education
Classification
Unit
2019
2020
2021
Completion rate
Target persons*
Persons
1,038
1,010
2,074
Persons who completed education
Persons
1,025
1,010
2,036
Completion rate (Korean worksites)
%
98.7** 
100
98.2
*Education on sexual harassment prevention and improvement of awareness of the disabled targeting persons working at the headquarters 
and R&D centers, Patagonia ESG management story (overlapping persons included)
**Education completion rate for 2019 (Korean worksites) corrected due to display error
Organization of the BOD
Classification
Unit
2019
2020
2021
Total
Persons
5
5
5
BOD 
Executive  
directors 
Gender
Male
Persons
2
2
2
Female
Persons
0
0
0
Age
Under the age of 30
Persons
0
0
0
30 - 50 years of age
Persons
1
1
0
Over 50 years of age
Persons
1
1
2
Subtotal
Persons
2
2
2
Non-executive 
directors 
Gender
Male
Persons
3
3
3
Female
Persons
0
0
0
Age
Under the age of 30
Persons
0
0
0
30 - 50 years of age
Persons
1
1
1
Over 50 years of age
Persons
2
2
2
Subtotal
Persons
3
3
3
2021/22 NEXEN TIRE ESG Report      97
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Sustainability Disclosure Topics & Accounting Metrics
Classification
Index
Unit*
Code 
Page
2020
2021
Remarks
Energy management
(1) Total energy consumed
GJ
TR-AP-130a.1
89
4,445,000
5,332,000
(2) Percentage grid electricity
%
-
63.4
66.8
(3) Percentage renewable
%
-
0
0
Waste management
(1) Total amount of waste from manufacturing
Metric Tons(t)
TR-AP-150a.1
90
8,608.8
10,323.3
(2) Percentage hazardous
%
-
10.1
10.5
(3) Percentage recycled
%
32
84.8
87.1
Product safety
Number of recalls issued, total units recalled
Cases
TR-AP-250a.1
60-61
0
Undisclosed
Design for fuel efficiency
Revenue from products designed to increase fuel efficiency  
and/or reduce emissions
KRW 100 million
TR-AP-410a.1
-
5,918.1
10,565.9
Global sales of products that acquired certification of com-
pli-ance with the EU labeling requirements converted into 
Korean won (annual average exchange rate for 2021 applied)
Materials sourcing
Description of management of risks associated with the use of critical materials
-
TR-AP-440a.1
63
Maintained
Maintained
Refer to the NEXEN TIRE Conflict Minerals Policy
Materials efficiency
Percentage of products sold that are recyclable (based on sales)
%
TR-AP-440b.1
-
100
100
Percentage of input materials from recycled or re-manufactured content
%
TR-AP-440b.2
-
0.6
0.6
Percentage of reclaimed butyl rubber among the input 
materi-als in 2021
Competitive behavior
Total amount of monetary losses as a result of legal proceed-ings associated with 
anti-competitive behavior regulations
KRW 100 million
TR-AP-520a.1
-
0
0.2
2013. 08.~2016. 7. Fine of KRW 20 million imposed in 2021 for 
the measure for online agency to comply with the minimum 
selling price (resale price maintenance)
*Disclosure unit and display method changed from the previ-ous year’s report (display up to the first decimal place, amount display in KRW million and KRW 100 million)
Activity Metrics
Classification
Index
Unit
Code 
Page
2020
2021
Remarks
Activity 
Metrics
Number of parts produced
1,000
TR-AP-000.A
-
32,979
40,795 
Based on the production of tires
Weight of parts produced
Metric Tons(t)
TR-AP-000.B
-
337,055
417,914 
Based on the production of tires
Area of manufacturing plants
m2
TR-AP-000.B
-
1,858,134
1,858,134
Based on the site area (Yangsan, Changnyeong, Cheongdo, Europe (Czech Republic))
SASB Standards Index Domestic and overseas plants
2021/22 NEXEN TIRE ESG Report      98
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Classification
Index
CDP Index 
Note
Governance
Disclose the organization’s governance 
around climate-related risks and 
opportunities
a. Describe the board’s oversight of climate-related risks and opportunities
C1.1b, C1.2, C1.2a
2021/22 NEXEN TIRE ESG Report p.12, 36
b. Describe management’s role in assessing and managing climate-related risks and opportunities
2021/22 NEXEN TIRE ESG Report p.12, 36
Strategy
Disclose the actual and potential impacts of 
climate-related risks and opportunities on 
the organization’s businesses, strat-egy, and 
financial planning where such information 
is material
a. Describe the climate-related risks and opportunities identi-fied by the organization over the short, 
medium, and long terms
C2.1a, C2.3, C2.3a,  
C2.4, C2.4a, C3.1,  
C3.2, C3.2a, C3.2b, C3.3,  
C3.4, C-FS3.7, C-FS3.7a 
2021/22 NEXEN TIRE ESG Report p.37
b. Describe the impact of climate-related risks and opportuni-ties on the organization’s businesses, strategy, 
and financial planning
2021/22 NEXEN TIRE ESG Report p.36-37
c. Describe the resilience of the organization’s strategy, taking into consideration different  
climate-related scenarios including a 2°C or lower scenario
Risk 
Management
Disclose how the organization identifies, 
assesses, and man-ages climate-related risks
a. Describe the organization’s processes for identifying and assessing climate-related risks
C1.2, C2.1, C2.2, C2.2a, 
C-FS2.2b, C-FS2.2c,
C-FS2.2d, C-FS2.2e
2021/22 NEXEN TIRE ESG Report p.36
b. Describe the organization’s processes for managing climate-related risks
2021/22 NEXEN TIRE ESG Report p.29, 37
c. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into 
the organiza-tion’s overall risk management
2021/22 NEXEN TIRE ESG Report p.36, 82-83
Metrics and 
Targets
Disclose the metrics and targets used to 
assess and manage the relevant climate-
related risks and opportunities where such 
information is material
a. Disclose the metrics used by the organization to assess cli-mate-related risks and opportunities in line 
with its strategy and risk management process
C4.1, C4.1a, C4.1b,  
C-FS4.1d, C4.2, C4.2a 
C4.2b, C6.1, C6.3,  
C6.5, C6.5a, C9.1,  
C-FS14.0, C-FS14.1,  
C-FS14.1a, C-FS14.1b
In order to assess risks and opportunities, NEXEN TIRE 
monitors and manages greenhouse gas emissions, environ-
mental investment costs, and number of ISO 14001-certified 
worksites, etc.
b. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and related risks
2021/22 NEXEN TIRE ESG Report p.88
c. Describe the targets used by the organization to manage climate-related risks and opportunities and 
performance against targets
Having established the greenhouse gas inventory in 2021, 
NEXEN TIRE has been managing monthly and yearly green-
house gas emissions and allocating—and consequently man-
aging—the target reductions.
TCFD Standards Index
2021/22 NEXEN TIRE ESG Report      99
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Index Details 
Page
Remarks
GRI 100 Universal Standards
102:
General Disclosures
102-1
Name of the organization
06
102-2
Activities, brands, products, and services
06-07
102-3
Location of headquarters
06
102-4
Location of operations
06
102-5
Ownership and legal form
79
102-6
Markets served
06
102-7
Scale of the organization
06, 08, 25
102-8
Information on employees and other workers
08, 92, 
94-95
102-9
Supply chain
11, 63, 66
102-10 Significant changes to the organization and its 
supply chain
-
102-11 Precautionary principle or approach
82-84
102-12 External initiatives
15, 86
102-13 Memberships in associations
86
102-14 Statement from the senior decision maker
05
102-15 Key impacts, risks, and opportunities
37, 82-84
102-16 Values, principles, standards, and norms of 
behavior
07
102-17 Mechanisms for advice and concerns  
about ethics
80-81
102-18 Governance structure
76-78
102-19 Delegating authority
-
GRI Standards Index
Index Details 
Page
Remarks
102-20 Executive-level responsibility for economic, 
environmental, and social topics
82-84
102-21 Consulting stakeholders on economic, 
environmental, and social topics
-
102-22 Composition of the highest governance body and 
its committees
76
102-23 Chair of the highest governance body
78
102-24 Nominating and selecting the highest  
governance body
76
 
102-25 Conflicts of interest
-
102-26 Role of the highest governance body in setting the 
purpose, values, and strategy
77
102-27 Collective knowledge of the highest governance body 78
102-28 Evaluating the highest governance body’s 
performance
77
102-29 Identifying and managing economic, 
environmental, and social impacts
-
102-30 Effectiveness of risk management processes
82
102-31 Review of economic, environmental, and  
social topics
84
102-32 Highest governance body’s role in  
sustainability reporting
78
102-33 Communicating critical concerns
78
102-34 Nature and total number of critical concerns
76
102-35 Remuneration policies
77
102-36 Process for determining remuneration
77
102-37 Stakeholders’ involvement in remuneration
-
102-38 Annual total compensation ratio
77
Index Details 
Page
Remarks
102-39 Percentage increase in annual total  
compensation ratio
-
102-40 List of stakeholder groups
16, 22
102-41 Collective bargaining agreements
53
102-42 Identifying and selecting stakeholders
16, 22
102-43 Approach to stakeholder engagement
22
102-44 Key topics and concerns raised
22
102-45 Entities included in the consolidated financial 
statements
Page 3 of 
Annual 
Report
102-46 Defining the report content and topic boundaries
20-21
102-47 List of material topics
18-19
102-48 Restatements of information
88-97
102-49 Changes in reporting
-
102-50 Reporting period
105
102-51 Date of the most recent report
105
102-52 Reporting cycle
105
102-53 Contact point for questions regarding the report
105
102-54 Claims of reporting in accordance with the  
GRI standards
103-104
102-55 GRI content index
100-102
102-56 External assurance
103-104
103:
Management Approach
103-1
Explanation of the material topic and its boundary 18-21
103-2
Management approach and its components
11-13
103-3
Evaluation of the management approach
11-13
2021/22 NEXEN TIRE ESG Report      100
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Index Details 
Page
Remarks
GRI 200 Economic
201:
Economic Performance
201-1
Direct economic value generated and distributed
87-88
201-2
Financial implications and other risks and 
opportunities due to climate change
37
Refer to the CDP 
Climate Change
201-3
Defined benefit plan obligations and other 
retirement plans
-
201-4
Financial assistance received from the government -
202:
Market Presence
202-1
Ratios of standard entry-level wage by gender 
compared to the local minimum wage
-
202-2
Proportion of senior management hired from the 
local community
-
203:
Indirect Economic Impacts
203-1
Infrastructure investments and services supported 67-70
203-2
Significant indirect economic impacts
68-69
204:
Procurement Practices
204-1
Proportion of spending on local suppliers
88
205:	
Anti-corruption
205-1
Operations assessed for risk related to corruption
81
205-2
Communication and training on anti-corruption 
policies and procedures
80-81
205-3
Confirmed incidents of corruption and actions 
taken
81
0 case
206:	
Anti-competitive Behavior
206-1
Legal actions for anti-competitive behavior, anti-
trust, and monopoly practices
83, 97
207:
Tax
207-1
Approach to tax
83
Index Details 
Page
Remarks
207-2
Tax governance, control, and risk management
83
207-3
Stakeholder engagement and management of 
concerns related to tax
83
207-4
Country-by-country reporting
-
GRI 300 Environmental
301:
Materials
301-1
Materials used by weight or volume
08, 91
301-2
Recycled input materials used
08, 30
301-3
Reclaimed products and their packaging materials 30
302: 	
Energy
302-1
Energy consumption within the organization
89
302-2
Energy consumption outside of the organization
-
302-3
Energy intensity
89
302-4
Reduction of energy consumption
34, 36-39
302-5
Reductions in energy requirements of products 
and services
31
303: 	
Water and Effluents
303-1
Interactions with water as a shared resource
32, 90
303-2
Management of water discharge-related impacts
32
303-3
Water withdrawal
32
303-4
Water discharge
90
303-5
Water consumption
90
304:
Biodiversity
304-1
Operational sites owned, leased, managed in, 
or adjacent to protected areas and areas of high 
biodiversity value outside the protected areas 
-
Index Details 
Page
Remarks
304-2
Significant impacts of activities, products, and 
services on biodiversity
-
304-3
Habitats protected or restored
29
Policy establish-
ment scheduled
304-4
The IUCN Red List and national conservation list 
specify habitats in areas affected by operations
-
305: 	
Emissions
305-1
Direct (Scope 1) GHG emissions
88
305-2
Indirect (Scope 2) GHG emissions
88
305-3
Other indirect (Scope 3) GHG emissions
-
305-4
GHG emissions intensity
88
Scope 1+2
305-5
Reduction of GHG emissions
38-39, 88
305-6
Emissions of ozone-depleting substances (ODS)
-
305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and 
other significant air emissions
32, 89
306: 	
Waste
306-1
Waste generation and significant water-related 
impacts
08, 21, 32, 
35-36
306-2
Management of significant water-related impacts
08, 21, 32, 
35-36
306-3
Waste generated
35-36, 90
306-4
Waste diverted from disposal
35-36, 90
306-5
Waste directed to disposal
35-36, 90
307: 	
Environmental Compliance
307-1
Noncompliance with environmental laws and 
regulations
Not 
applicable
308: 	
Supplier Environmental Assessment
308-1
New suppliers that were screened using 
environmental criteria
-
308-2
Negative environmental impacts in the supply  
chain and actions taken
64-65
Key topics
Key topics
Key topics
2021/22 NEXEN TIRE ESG Report      101
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Index Details 
Page
Remarks
GRI 400 Social
401:
Employment
401-1
New employee hires and employee turnover
93
401-2
 Benefits provided to full-time employees but not to 
temporary or part-time employees
48-49, 54
Four social 
insurances, 
health 
management, 
compensation 
for injuries, 
parental leave, 
retirement 
pay, reward 
for continuous 
service
401-3
Parental leave
93
402:
Labor-management Relations
402-1
Minimum notice periods regarding operational 
changes
-
403: 	
Occupational Health and Safety
403-1
Occupational health and safety management 
system
29, 43
403-2
Hazard identification, risk assessment, and incident 
investigation
44
403-3
Occupational health services
45
403-4
Worker participation, consultation, and 
communication on occupational health and safety 53
403-5
Worker training on occupational health and safety 43
403-6
Promotion of worker health
45
403-7
Prevention and mitigation of occupational health 
and safety impacts directly linked by business 
relationships
44-45
403-8
Workers covered by the occupational health and 
safety management system
29, 92
403-9
Work-related injuries
45, 84, 92
403-10 Work-related ill health
45
Index Details 
Page
Remarks
404:
Training and Education
404-1
Average hours of training per year per employee
50, 96
404-2
Programs for upgrading employee skills and 
transition assistance programs
49-51
404-3
Percentage of employees receiving regular 
performance and career development reviews
-
405:
Diversity and Equal Opportunity
405-1
Diversity of governance bodies and employees
42, 78, 92, 
94-95
405-2
Ratio of basic salary and remuneration of  
women to men
-
406:
Non-discrimination
406-1
Incidents of discrimination and corrective actions 
taken
Not 
applicable 0 case
407:
Freedom of Association and Collective Bargaining
407-1
Operations and suppliers where the right to 
freedom of association and collective bargaining 
may be at risk
41, 53, 
63-65
408:
Child Labor
408-1
Operations and suppliers at significant risk of 
incidents of child labor
41, 63-65
409:
Forced or Compulsory Labor
409-1
Operations and suppliers at significant risk of 
incidents of forced or compulsory labor
41, 63-65
410:
Security Practices
410-1
Security personnel trained on human rights policies 
or procedures
-
411:
Rights of Indigenous Peoples
411-1
Incidents of violations involving the rights of 
indigenous peoples
Not 
applicable 0 case
412:
Human Rights Assessment
412-1
Operations that have been subject to human rights 
reviews or impact assessments
-
412-2
Employee training on human rights policies or 
procedures
41, 96
Index Details 
Page
Remarks
412-3
Significant investment agreements and contracts 
that include human rights clauses or which 
underwent human rights screening
64
413:
Local Communities
413-1
Operations with local community engagement, 
impact assessments, and development programs
67-70
413-2
Operations with significant actual and potential 
negative impacts on local communities
46, 84
414: 	
Supplier Social Assessment
414-1
New suppliers that were screened using social criteria 65
414-2
Negative social impacts in the supply chain and 
actions taken
64-66
415:
Public Policy
415-1
Political contributions
81
416: 	
Customer Health and Safety
416-1
Assessment of the health and safety impacts of 
product and service categories
08
416-2
Incidents of noncompliance concerning the health 
and safety impacts of products and services
Not 
applicable 0 case
417:
Marketing and Labeling
417-1
Requirements for product and service information 
and labeling
31
417-2
Incidents of noncompliance concerning product 
and service information and labeling
Not 
applicable 0 case
417-3
Incidents of noncompliance concerning marketing 
communications
Not 
applicable 0 case
418:
Customer Privacy
418-1
Substantiated complaints concerning breaches of 
customer privacy and loss of customer data
73
0 case
419: 	
Socioeconomic Compliance
419-1
Noncompliance with laws and regulations in the 
social and economic area
98
0 case
Key topics
Key topics
2021/22 NEXEN TIRE ESG Report      102
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Third-party Assurance
To readers of 2021/22 NEXEN TIRE ESG REPORT
Introduction
Korea Management Registrar (KMR) was commissioned by NEXEN TIRE to 
conduct an independent assurance of its 2021/22 ESG REPORT (the “Report”). 
The data and its presentation in the Report is the sole responsibility of the 
management of NEXEN TIRE. KMR’s responsibility is to perform an assurance 
engagement as agreed upon in our agreement with NEXEN TIRE and issue an 
assurance statement.
Scope and Standards
NEXEN TIRE described its sustainability performance and activities in the 
Report. Our Assurance Team carried out an assurance engagement in accor-
dance with the AA1000AS v3 and KMR’s assurance standard SRV1000. We are 
providing a Type 2, moderate level assurance. We evaluated the adherence 
to the AA1000AP (2018) principles of inclusivity, materiality, responsiveness 
and impact, and the reliability of the information and data provided using the 
Global Reporting Initiative (GRI) Index provided below. The opinion expressed 
in the Assurance Statement has been formed at the materiality of the profes-
sional judgment of our Assurance Team.
Confirmation that the Report was prepared in accordance with the Core 
Options of the GRI standards was included in the scope of the assurance. We 
have reviewed the topic-specific disclosures of standards which were identi-
fied in the materiality assessment process
 •   GRI Sustainability Reporting Standards
 •   Universal standards
 •   Topic specific standards
	
-	 Management approach of Topic Specific Standards
	
-	 GRI 205: Anti-corruption 
	
- 	 GRI 206: Anti-competitive Behavior
	
-	 GRI 302: Energy
	
-	 GRI 303: Water and Effluents
	
-	 GRI 305: Emissions
	
-	 GRI 306: Waste 
	
- 	 GRI 307: Environmental Compliance
	
- 	 GRI 308: Supplier Environmental Assessment
	
-	 GRI 403: Occupational Health and Safety
	
-	 GRI 414: Supplier Social Assessment
	
-	 GRI 416: Customer Health and Safety
	
- 	 GRI 419: Socioeconomic Compliance
As for the reporting boundary, the engagement excludes the data and infor-
mation of NEXEN TIRE’ partners, suppliers and any third parties.
KMR’s Approach
To perform an assurance engagement within an agreed scope of assessment 
using the standards outlined above, our Assurance Team undertook the fol-
lowing activities as part of the engagement: 
 •   Reviewed the overall Report;
 •   Reviewed materiality assessment methodology and the assessment report; 
 •   Evaluated sustainability strategies, performance data management sys-
tem, and processes; 
 •   Interviewed people in charge of preparing the Report;
 •   Reviewed the reliability of the Report’s performance data and conducted 
data sampling;
 •   Assessed the reliability of information using independent external sources 
such as Financial Supervisory Service’s DART and public databases. 
Limitations and Recommendations
KMR’s assurance engagement is based on the assumption that the data and 
information provided by NEXEN TIRE to us as part of our review are provided in 
good faith. Limited depth of evidence gathering including inquiry and analyt-
ical procedures and limited sampling at lower levels in the organization were 
applied. To address this, we referred to independent external sources such as 
DART and National Greenhouse Gas Management System (NGMS) and public 
databases to challenge the quality and reliability of the information provided.
Conclusion and Opinion
Based on the document reviews and interviews, we had several discussions with 
NEXEN TIRE on the revision of the Report. We reviewed the Report’s final version 
in order to make sure that our recommendations for improvement and revision 
have been reflected. Based on the work performed, it is our opinion that the 
Report applied the Core Option of the GRI Standards. Nothing comes to our 
attention to suggest that the Report was not prepared in accordance with the 
AA1000AP (2018) principles. 
2021/22 NEXEN TIRE ESG Report      103
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Inclusivity
NEXEN TIRE has developed and maintained different stakeholder communi-
cation channels at all levels to announce and fulfill its responsibilities to the 
stakeholders. Nothing comes to our attention to suggest that there is a key 
stakeholder group left out in the process. The organization makes efforts to 
properly reflect opinions and expectations into its strategies. 
Materiality
NEXEN TIRE has a unique materiality assessment process to decide the impact 
of issues identified on its sustainability performance. We have not found any 
material topics left out in the process. 
Responsiveness
NEXEN TIRE prioritized material issues to provide a comprehensive, bal-
anced report of performance, responses, and future plans regarding them. 
We did not find anything to suggest that data and information disclosed in 
the Report do not give a fair representation of NEXEN TIRE actions.
Impact
NEXEN TIRE identifies and monitors the direct and indirect impacts of material 
topics found through the materiality assessment, and quantifies such impacts 
as much as possible. 
Reliability of Specific Sustainability Performance Information
In addition to the adherence to AA1000AP (2018) principles, we have 
assessed the reliability of economic, environmental, and social performance 
data related to sustainability performance. We interviewed the in-charge 
persons and reviewed information on a sampling basis and supporting doc-
uments as well as external sources and public databases to confirm that the 
disclosed data is reliable. Any intentional error or misstatement is not noted 
from the data and information disclosed in the Report.
Competence and Independence
KMR maintains a comprehensive system of quality control including docu-
mented policies and procedures in accordance with ISO/IEC 17021·2015 - 
Requirements for bodies providing audit and certification of management 
systems. This engagement was carried out by an independent team of sus-
tainability assurance professionals. KMR has no other contract with NEXEN 
TIRE and did not provide any services to NEXEN TIRE that could compromise 
the independence of our work.
July 2022 Seoul, Korea
CEO E. J. Hwang
 
GHG Verification Statement 
2021/22 NEXEN TIRE ESG Report      104
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 

Reporting Scope 
The scope of this report includes all manufacturing plants (Yangsan and 
Changnyeong in Korea, China, and Europe) and R&D centers (Seoul Central 
Research Institute and R&D centers in the United States, China, and Ger-
many). The financial data is consistent with the consolidated standards of the 
Korea International Financial Reporting Standards (K-IFRS). For quantitative 
environmental data, data collected from all domestic and overseas plants 
(Yangsan, Changnyeong, Czech Republic, and Qingdao) were used as the 
standard. We have specified the detailed scope through separate notation 
where the performance of separate sites, including quantitative environmen-
tal data, has been included. 
Reporting Period 
NEXEN TIRE has been publishing the ESG report every year since 2020 when 
the 2019 - 2020 ESG Report was published. This report focuses on the activ-
ities and performances from January 1 to December 31, 2021. Some perfor-
mances from the first half of 2022 may also be included. 
Reporting Standards 
This report is based on the recommendations and suggestions of global stan-
dards, such as the Core Option of the Global Reporting Initiative (GRI) Stan-
dards, Sustainability Accounting Standards Board (SASB), and Task Force on 
Climate-related Financial Disclosures (TCFD). In addition, the financial perfor-
mance is based on K-IFRS. 
Reliability of the Report 
To ensure credibility of the report’s drafting process and content to the stake-
holders, NEXEN TIRE received third-party assurance from the Korea Manage-
ment Register (KMR), an independent audit entity. AA1000AS v3, an interna-
tional standard, and KMR’s SRV1000 were applied to the assurance process. 
The Assurance Statement is available on page 103 of this report.
Participating Teams 
The 2021 - 2022 NEXEN TIRE ESG Report encompasses the “NEXEN UNI-
VERSE” sustainability management philosophy and its performance in 
the economic, environmental, and social dimensions.  
The report has increased stakeholder engagement by gathering their 
opinions along with those of other domestic and foreign companies 
within the industry. The report also transparently discloses responsive 
strategies for each issue in compliance with global standards. 
NEXEN TIRE will continue to manage systematically its mid to long-term 
strategies and goals as well as risks and opportunities 
About this Report
Department　　Strategy Planning Team 
Contact　　+82-2-6210-0872 
E-mail　　dy.chae@nexentire.com 
Published　　in July 2022 
Published by　　NEXEN TIRE 
Verified by　　Korea Management Register 
SHE Planning Team 
R&D Planning Team 
Product Planning Team 
Procurement Team 
Accounting Team 
Cultural Innovation 
Team 
Brand Communication 
Team 
Ethics Management 
Team 
Information Security 
Team 
Raw Material Develop-
ment Team 
(YP)Global Safety & Envi-
ronmentTeam 
(CP)Gloal Safety &  
Environment Team 
(EP)Global Safety &  
Environment Team 
Facility Support Team 
Labor Relations Team 
Human Resources Team 
Human Resources  
Development Team 
Customer Satisfaction 
Team 
(CP) Production  
Management Team 
Domestic Sales Support 
Team 
NEXT LEVEL Team 
OE Sales Planning Team 
(Europe) OE PM Team 
Compound Development 
Team 
Design Analysis Research 
Team 
Legal Affairs Team 
(YP) Company Culture Team 
Global Sales Planning Team 
(CP) Human Resources 
Management Team 
Material Research Team 
Design Team 
New Growth Engine TFT 
Cost Innovation PJT 
Global Production  
Technology Team
G. OE Quality Team 
Quality Assurance Team 
Quality Management Team 
Finance Team 
Motorsports Team 
Overseas OE Development 
Team 1 
Overseas OE Development 
Team 2 
NATC 
Construction Research 
Team 
New PLM PJT 
Performance Research 
Team 
Production Planning Team 
Korea OE PM Team 
2020 - 2021 ESG Report 
2021/22 NEXEN TIRE ESG Report      105
INTRODUCTION 
ESG 
MANAGEMENT 
ECONOMIC 	
SECTION
ENVIRONMENTAL 
 
DIMENSION
SOCIAL 
 
DIMENSION
GOVERNANCE 
 
DIMENSION
APPENDIX 