Our Commitments
to Benefiting
the World
LocknLock 2022 Sustainability ReportAbout this report

Our Commitments
to Benefiting
the World
LocknLock 2022 Sustainability Report

We are delighted to publish our first sustainability report. This
report aims to provide an honest account of our progress on
sustainable management in a transparent manner.

Reporting Period

This Sustainability Report details our sustainability performancefrom January 1, 2021 through December 31, 2021. And
it also covers some of the key progress for early 2022. For
some of the key quantitative information, it contains data fromthe past three years to allow you to make comparisons.

Reporting Boundaries

This report provides an account of sustainable
management activities and per formance of ourheadquarters and domestic manufacturing sites (Asan,
Anseong). It also contains some of the data of our overseas
business sites (GHG emissions and energy consumption,water consumption and effluent discharge, raw material use
and reuse, and water pollutant discharge). The data in thisreport covers 100% domestic business sites.

Reporting Principles

This report aligns with the Core Option of GRI (Global
Reporting Initiative) Standards. And we comply with UN
SDGs (UN Sustainable Development Goals), a global initiative
for sustainable management, and SASB (Sustainability
Accounting Standards Board) Standards. We preparedfinancial data on a consolidated basis, following K-IFRS (theKorean Version of International Financial Reporting Standards).

Data Assurance

To ensure the reliability of the data and reporting process, thisreport has been subject to the third-party verification by the
Korean Standards Association. And AA1000AS v3 Type 2 hasbeen applied as the set of standards for the verification. The
results are available on page 98-99.

Contact Information

If you have any questions, feel free to contact us.

LocknLock ESG TF
Address 20F, Grand Central A, Sejong-daero 14, Jung-gu, Seoul, 04527, Republic of Korea
E-mail sunyoung.park@locknlock.com
Tel 02-520-1797
Homepage www.locknlock.com

Contents

Our ESG Story

Our ESG Topic

04

CEO Message

20

Our ESG Strategies

48

LocknLock Satisfying Customers

06

Company Overview

22

54

10

Business Overview[Environment]

LocknLock Keeping the Environment
at Our Heart

60

LocknLock Putting Safety FirstOur Energy Management for Carbon
Neutrality

32[Social]64

LocknLock Bringing Happiness to
Our Employees

40[Governance]

72

LocknLock Growing Together withSociety

Safe Products for Humans and Nature
Spread of a Sound Governance
Structure

LocknLock Trustedby Stakeholders

Appendix

80

Governance88

Economic Performance95

UN SDGs & SASB Index

82

Ethical Management

90

Environmental Performance98

Third-Party Assurance Statement

84

Materiality Assessment

90

Social Performance

100 Awards and Membership Status

86

Communication with Stakeholders

93

GRI Standards Index

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

04

CEO Message

Dear stakeholders,
LocknLock is aiming to make 2022 the inaugural
year for laying the foundation for ESG management.
Keeping people and the environment as our corevalues, we have made multi-faceted efforts to
manufacture products that benefit both people andnature and earn more trust from our customers. In
order to provide an account of our efforts and progresson our journey towards ESG management, we are
publishing our first sustainability report.

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

The unprecedented COVID-19 pandemic has persisted over the past 2 years, confronting uswith daunting challenges. Amid the unfavorable market conditions, we have done our best tousher in a sustainable future.
On the strength of our outstanding brand recognition and technological expertise, we haveraised our reputation not only in the domestic market but also in the markets of China andSoutheast Asia. We are also seeing robust growth in the U.S. and European markets. On
top of that, many efforts have been made to improve upon our success, such as securing
channels tailored to each country and redesigning our product portfolio. Keeping pace withthe changes in the digital marketplace, we have stepped up our D2C (Direct to Consumer)
strategies including our in-house online shopping mall.
LocknLock will make strides towards ‘Carbon Neutrality.’
We are striving to raise the awareness of the value of resource circulation through theupcycling of old plastic airtight containers. Along with this, we have conducted a tumbler use
promotion campaign targeting our employees and customers. One of our focuses is on the
mitigation of plastic waste. To this end, we endeavor to reduce GHGs emitted in the courseof disposal, thereby taking one step closer toward our goal, carbon neutrality.
LocknLock will pay more respect to the value of ‘stakeholders’ including our
employees.
Internally, we have refined our employee performance management system to ensure
fair compensation according to their performance. In detail, we have set up the Win-Win
Growth Committee in order to facilitate the communication between labor and management
while establishing the Safety and Health Team that takes charge of creating a safe work
environment where our employees can put their mind at ease. With a focus on our suppliers,
we also inspect their sustainability, regarding them as our partners for shared growth. Throughthese efforts, LocknLock aims to achieve people-centered growth.

Appendix

LocknLock 2022 Sustainability Report

05

LocknLock will create a ‘transparent’ governance structure that deserves more trustfrom stakeholders.
In an effort to earn more trust from stakeholders, efforts are being made to embed an ethicalculture in every aspect of our businesses. In detail, we have created the Ethical Management
Team and operate a ‘Hot Line’ channel for reporting and consultations regarding the ethics
issues. The channel guarantees the source’s anonymity. For the sake of expertise and diversityof the BOD (Board of Directors), we appointed the first female director and plan to phase in aset of standards regarding gender, nationality, and cultural backgrounds.
Based on these efforts, LocknLock aims to elevate the value of people and the environment,
and make our governance more transparent and professional, thereby solidifying thefoundation for sustainable growth. Staying true to our vision, ‘We benefit customers all aroundthe globe’, LocknLock will make sure that our efforts contribute to creating a better world.
I look forward to your support and attention to our commitments to benefiting the world on
this journey.
Thank you very much.

July 2022

CEO Sunghoon Ghim

Sungtae Kim

CEO Message

Company Overview

Business Overview

Company
Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report06

Company Profile
Company Name

LocknLock Co.

CEOCEO Sunghoon Ghim and Sungtae Kim

Date of Establishment

Nov. 11, 1978

AddressSeoul Office: Sejong-daero 14, Jung-gu, Seoul, Republic of Korea
Anseong Office: 1260 Mansae-ro, Wongok-myun, Anseong, Gyeonggi province

Homepagewww.locknlock.com(As of Dec. 31, 2021)

MarketCapitalization

Key ProductCategories

USD

502.3 million(KRW 598 billion)

Food Container, Beverageware,
Cookware, Small Appliance,
Others (storage container, travel
product, kitchen appliances, etc.)

No. of
Employees

Intellectual
Property

3,409

employees athome and abroad

Domestic

Overseas

52 applied,
522 registered
183 applied,
1,240 registered

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

07

Our Vision and Value
VisionTrusting Yourself

1 Uncompromising verification of quality

Sharpening the expertise andcapabilities of our employees

and safety

2 Responsibility for the environment andsustainability

3 Focus on process over results
4 Immediate, proactive execution

Core Values

People-centered

5 Fearless challenge with passionate spirit
6 Constant, creative pursuit of the new
7 Honesty to always do the right thing
8 Less talking, more listening
9 Modesty, empathy, and wit

Being in Unity
Based on the best team workand trust among employees

Benefitting Customers
All Over the World
Bringing an abundant andconvenient life to global consumers

LocknLock puts our vision into action on the basis of our ten core values.

10 Constant effort to understand peoples’

livesCEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

08

Key Businesses
Sales Share by Category

Sales Share by Country(As of Dec. 31, 2021)(As of Dec. 31, 2021)

34%
● 28%
● 17%
● 10%
● 11%
●

Food Container (airtight container)

25%
● 36%
● 13%
● 26%

●

Beverageware
Small Appliance
Cookware
Others

Korea
China
Vietnam
OthersAsia’s No.1 Household Goods Company 2018~

History
Establishment 1978~1997
1978• Established Kukjin Retail Co.
1994• Established Hana Mart Co.
• Distributed kitchenware, bathware andchild goods

Global Operations 2006~2017
Brand Integration & Growth 1998~2005
1998• Launched four-sided airtight locking
system Food container• Integrated into LocknLock brand based on
our choice and concentration strategy• Grew into a leading player in the global
food container market

2010• Listed on KOSPI• Expanded our presence into overseas
markets• Enlarged into Total Living-Kitchenware
brand

2018
• Acquired by private equity fund, Affinity
Equity Partners (AEP)• Renewed LocknLock Brand Identity• Established an innovation lab, LL Labs
• Built global design centers• Formulated growth strategies for four
categories (food container-beveragewarecookware-small appliances)
2020• Acquired ‘Jenniferoom’, small kitchen
appliance brand, to expand our business into
small kitchen appliance• Launched a variety of small kitchen
appliances such as ‘steam air fryer’st• Held the 1 LocknLock Design Contest:‘Design Your Life’

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

09

Overseas Operations
LocknLock, global leading player in the household product market

Germany● Trading company

China
Trading company: Shanghai, Beijing, Shenzhen
Plant: Suzhow

Korea
Trading company: Seoul
Plant: Anseong

The US

ThailandIndonesia

119 export destinations

Vietnam
Trading company: Ho Chi Minh, Hanoi
Plant: Vung Tau● Plant

Business
Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report10

Food Container
Since the launch of the four-sided airtight locking container LocknLock in 1998, we
have produced a variety of safe and diverse products in terms of function and materials
reflecting consumer needs in line with changing lifestyles, as a global brand beloved bypeople all over the world.

Sales of Food Containers Division

Share of Sales(Unit: KRW million)

34%

2019

2020

185,594

Business Overview

184,205

Company Overview

185,948

CEO Message

2021* Consolidated

CEO Message

Company Overview

Business Overview

Our ESG Story

Barohanggi

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

DosiLock

LocknLock 2022 Sustainability Report

11

Stainless Modular

Safe meals for my family

A professional edition of lunch box

Barohanggi Baby Food Container,
Barohanggi Glass, Barohanggi Ceramic

Lunchbox (airtight, non-airtight types),
Meal prep (salad and snacks)

Safe food storage for our family that can be
stored and used in the freezer, boiling water,and oven

A meal that suits my taste
Customized components based on my style

Modular system highly preferred by users
The smart Stainless Modular that can be usedin dishwashers, air fryers, and ovens

Top Class

Bisfree Modular

ECO Lock

A top-class glass container with safetyassurance

Stable and neat organization with a 6mm
hidden seal

Quality assurance (high resistance durability)
Temperature assurance (withstanding temperatures
ranging from a -20℃ freezer to a 400℃ oven)
Locking assurance (strong airtightness)

Using premium materials called ‘Tritan’ for aclear look like a glass without stains

Exclusively Korean sourced materials
and Korean production

100% food grade eco-friendly sealing
containers made of leftover recycledplastics
Sold in the largest retail shops in the UK(Tesco, Sainsbury’s)
Personalized designs with unique color matchesOur ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

12

Beverageware
LocknLock explored global consumers’ lifestyles and local cultures, thereby creating
our beverageware with a variety of functions and designs. We take the lead in the global
beverageware industry, creating a convenient and fun lifestyle anytime and anywhere.

Sales of Beverageware Division

Share of Sales(Unit: KRW million)

28%

2019

2020

153,872

Business Overview

128,867

Company Overview

138,857

CEO Message

2021* Consolidated

CEO Message

Company Overview

Business Overview

Our ESG Story

Metro Series

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

Bucket Tumbler (FLIP)

LocknLock 2022 Sustainability Report

13

Classic Tea Bottle

Global and local innovations for bicycle
and motorcycle riders

A product developed in consideration ofa Chinese market

Various product lines offering options tochoose by needs
Keeping good manners inside with silent stopper!
Easy carry thanks to outstanding cold/thermal insulation

Easy to mount while riding bikes with a drinklid used as a straw when drinking beverages

Classic Tritan tea bottle for easy brewing anddrinking of tea
Engraved grid lines on the container to checkthe volume

Kids Strap
Tumbler and Bottle

Dual Glass Tumbler

One Touch Water Bottle

Metro Mug, Metro Two-way Tumbler, Metro Drive Tumbler,
Metro Food Jar, Metro Double Tumbler, Metro Edge Tumbler

The Kids Strap Series has stickers andaccessories for kids to decorate their own
tumblers and water bottles, helping develop
healthy water-drinking habits for children

Safe with Heat-resistant glass andconvenient with a built-in straw, mug,and dual cap
Applying heat-resistant glass material free fromenvironmental hormones and scents

Safe with an easy one-touch release andlock-sealing system!
More convenient with a transparent body,
grid for checking the volume,
and a one-touch button

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

14

Small Appliance
LocknLock’s small appliances put health and environment first, created through exploring
consumer-oriented culinary culture and R&D, taking a leap forward as an innovative global
lifestyle brand.

Sales of Small Appliance Division

Share of Sales(Unit: KRW million)

17%

2019

2020

89,753Business Overview

66,671Company Overview

38,984CEO Message

2021* Consolidated

CEO Message

Company Overview

Business Overview

Steam Fryer S2á*Z\WLYZ[LHTTHRLZMVVKJYPZWPLYHUK
helps retain moisture, and the dedicatedapplication makes cooking easier and faster
Multi-cooking appliance allowing Home Meal
Replacement to specialty dishes

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

Kitchen Air Purifier
Air purifier for the kitchen

Creating a safer cooking environment as an
air purifier specializing in removing fumes*
generated during cooking

LocknLock 2022 Sustainability Report

15

Cozy Air Fryer
A compact-sized air fryer that suits the Chinese
kitchen environment* Cooking fume: Fine dust generated as the decomposition ofvarious ingredients during cooking with oil at a high temperature of
230℃ or higher

Vacuum Rice Container

Knife & Chopper Sterilizer

Storing rice, the staple food of Korea, in atastier and safer way for a more extended
period of time

Thorough sanitization, creating a safe andhygienic environment for knives and cuttingboardsFood Waste Cooler

Eliminating rotting and bad odors fromfood waste by refrigerating it
3L-capacity that matches the size of the mostused food waste bag making it practical

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

16

CookwareLocknLock’s cookware was created by developing new technologies and designs forhealthy and convenient cooking for consumers worldwide. We are in pursuit of being a
global premium cookware brand as a cooking culture creator.

Sales of Cookware Division

Share of Sales(Unit: KRW million)

10%

2019

2020

55,634

Business Overview

58,486Company Overview

55,182CEO Message

2021* Consolidated

CEO Message

Company Overview

Business Overview

DecoreA cookware that makes daily life
decorative

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

Hard and Light

LocknLock 2022 Sustainability Report

17

Salon

Hard and light frying pan and wok series

Premium cast iron pot

A stylish color and design, with a safe andcomfortable hand grip

Hard anodizing and titanium coating technique
Strong durability and light weight
Deep and practical size

Elegant design with a luxurious quilting pattern
Winner of two world design awards

Suit IH

Soma

Wave

The most optimized cookware forinduction

Small but definite difference found in
frying pan and wok series

The most optimized true wide full induction
floor technology for induction, rubber handles
with soft touch grip

1cm deeper, 3cm wider body
Strong titanium coating and HardLock technology
Comfortable handle

Premium cookware made by castingLightweight & more convenient
but luxury cast cookware
Winner of Red Dot Award 2020

32

Safe Products for Humans and Nature

20

SocialOur ESG Strategies

22
Environment

Our Energy Management
for Carbon Neutrality

40
GovernanceSpread of a Sound
Governance StructureOur ESG Story

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

Our ESG Strategy
LocknLock fulfills the environmental and social responsibility, building sustainable values and customer trust based on our sound governance.

1

1 | Climate Action

Environment•

Managing GHG emissions for carbon neutrality•

Researching bio plastics and eco-friendly products•

Eco-friendly packaging

2 | Responsible & Safe Management•••

Corporate culture respecting human rights and diversity
Promoting win-win and shared growth with partnercompanies
Assuring quality prioritizing the safety of users

ESG Management
3 | Sound GovernanceSocialGovernance

2

3

•

Establishing ESG governance

20CEO Message

Company Overview

Business Overview

Our ESG Story

Life Style
Innovation

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report21CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

STORY #1

Energy Management
for Carbon Neutrality
Commitment
Commitment

Introductionof the energy
efficiency system
BY 2022

Raising Energy
Efficiency

Carbon neutrality
Establishing
Company-wide
Carbon Reduction
Goals

CarbonNeutralBY 2050

Using Renewable
EnergyCommitment

30% of our energy usage
to be renewable energy
R&D for Green
Products andPackaging

BY 2031

There is growing awareness of the gravity and threat of climate change worldwide. Against this backdrop, oursociety is urging companies to disclose concrete implementation plans to minimize their environmental impact andreduce carbon emissions in the entire process of business. Companies should respond to this demand.
As the first step in action against climate change, LocknLock established a voluntary carbon mitigation goal andbegan to manage and calculate GHG emissions based on electricity consumption. Going forward, we will continue
to make efforts in company-wide energy-saving activities, expanding the use of new and renewable energy, andresearching eco-friendly products and packaging, thereby going toward carbon neutrality.

Appendix

LocknLock 2022 Sustainability Report22CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report23CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

AppendixCommitment 1. Mitigation of Carbon Emissions
UN SDGs Targets
resilience and adaptive capacity to climate-related hazards and natural
13.1 Strengthen
disasters in all countries

7.2

LocknLock 2022 Sustainability Report

24energy consumption and greenhouse gas emissions of
our headquarters and business sites in Korea and eachoverseas business site, including subsidiaries in China,
Vietnam, and the United States. Based on the results, wehave established a company-wide plan for systematicenergy consumption management. By introducing highefficiency power devices and using renewable energy
centering around domestic and overseas production hubs,
we will focus more on carbon mitigation activities throughthe reduction of power consumption.

By 2030, increase substantially the share of renewable energy in the global energy mix*

GHG Emissions* Energy mix: diversification of energy sources

Measurement Method

GHG emissions were calculated based on electricity
consumption, and both total emissions and intensity havedeclined since we started measuring in 2019.

Declaration and Goal
LocknLock declared the 2050 carbon-neutral goal andestablished detailed targets to meet the goal. We plan togradually build a GHG inventory, develop green products
and packaging materials, and expand the use of renewableenergy. Starting with the production and logistics sites
in Korea, we will expand the use of renewable energy to
production and logistics sites in China and Vietnam, thereby
raising the percentage of renewable energy by 30% by
2031.
LocknLock's final responsibility and decision-making
authority with regard to climate change rest with the
ESG Task Force (TF), which is comprised of executives
in charge of the environment, society, and governance.
The ESG TF takes the role of reviewing and discussing
GHG reduction targets, emissions, activities necessary
for reduction, and other significant decisions related toenvironmental management. LocknLock measures the

Ratio of Emissions

We checked the ratio of our GHG emissions by classifying
them into the sales stage (GHG emissions from officebuildings, such as headquarters and corporations), theproduction stage (emissions from business sites that
manufacture products), and the logistics stage (emissions
from warehouses for product storage). The largest amountof GHG is emitted during the production stage, whereplants are directly operated, accounting for about 92%. It
was found that GHG emissions from the Vung Tau plant in
Vietnam, our core production plant, accounted for about
74% of total emissions.

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

China

GHG Emissions● Shanghai, Beijing, Shenzhen,

Guangzhou, Manshan● Suzhou● Suzhou (East China), Tianjin (North China),
Guangzhou (South China)
Vietnam● Ho Chi Minh , Hanoi● Vung Tau● Long Hou, Bac Ninh

Appendix

Country● Sales

RegionKorea● Seoul● AsanTotalemissions● Anseong25

LocknLock 2022 Sustainability Report● Production

2019● Logistics

2020(Unit: tCO2eq)

2021

22,123Business Overview

22,750Company Overview

26,092CEO Message● Indonesia

Seoul ●
Korea
● Europe● Thailand

17.98

20.47

521.75486.89387.50

Anseong ●1,632.48

1,669.16

1,585.39

Shanghai ●263.66202.13181.51

Beijing ●

4.94

8.44

7.93

Shenzhen ●

9.14

8.52

6.95

Guangzhou ●

13.19

8.79

6.32

Asan ●Manshan ●

87.54

28.78

28.54

Suzhou ●2,490.54

2,353.72

2,416.01

Suzhou (East China) ●167.65147.98151.61

Tianjin (North China) ●

9.05

8.96

9.06

Guangzhou (South China) ●

24.19

22.70

21.33

Ho Chi Minh ●298.98332.25288.73

Hanoi ●

36.14

34.01

27.02

Vietnam Vung Tau ●19,911.10

16,814.27

16,434.35

Long Hou ●298.98332.25288.73

Bac Ninh ●290.38258.05216.40Indonesia ●

13.54

11.02

9.86

Thailand ●

-

-

30.69

U.S. ●

-

1.64

2.67

2.98

2.48

2.16

China

● U.S.

16.05

Europe ●* Calculated based on electricity consumption

CEO Message

Company Overview

Business Operation

Percentage of
GHG Emissions
by Stage

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

Sales stage

Production stage

Logistics stage

3%

92%

5%

Increase energy
efficiency at
offices

Introduce
renewableenergyConvertto electric
forklifts(as of 2021)

Carbon Reduction
Strategies

26

CEO Message

Company Overview

Business Overview

Our ESG Story

Action Plans
We analyzed our emissions, and the results show that thelargest amount of emissions is generated in the course of
manufacturing. Accordingly, we have established GHG
mitigation strategies with a focus on plants operated in many
countries. As part of the effort, we plan to use renewableenergy sources for electricity generation to power our
manufacturing plants.
Our ambition is to raise the share of renewable energy to
30% by 2031. Currently, the transition to electric forklifts
from internal combustion forklifts is underway. As of March
2022, the transition rate stood at 79%. In the years to come,we will continue to replace internal combustion engine
vehicles with hybrid and electric vehicles, thereby reducing
GHG emissions.

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

Targets of Renewable Energy Expansion
Target Year
2025

2028

2031

Korea(Anseong)

Vietnam(Vung Tau)

China(Suzhou)

30%

30%

30%

Country(Plant)Renewable Energy
Share Target(2021 baseline applied)27

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Commitment 2. R&D on Eco-friendly Products
and Packaging Materials
UN SDGs Target
2030, substantially reduce waste generation through prevention, reduction, recycling
12.5 Byand reuse

Eco-friendly R&D elements

LocknLock 2022 Sustainability Report

Appendix

28

Our Commitment and Goal
LocknLock is committed to developing clean, safe, andearth-friendly products by using eco-friendly materials(biomass materials included) to produce airtight containers,
or turning leftover plastic into upcycled products. And
we continue to put our best efforts into R&D activities toincrease the share of eco-friendly products.
Furthermore, the efforts will be made to make the productpackaging and delivery more environment-friendly by
adopting elements that favor the environment.

Eco-friendly Product Development Process• Environmental

impact reviewed
before incinerationor landfill• Minimized use ofresources

Materials

Eco-friendliness

Production• Minimized carbon

emissions

Disposal

Biomass raw materials• Making it easy torecycle• Use of biomass as raw materials• Efforts to reuse raw materials• Consumer safety

taken into
consideration• Lightweight packaging

SafetyRecycling

EDC (Endocrine disrupting
chemicals)-free

Making biodegradable
compostPackaging and
Delivery• Use of eco-friendly

packaging materials• Our products’Use

environmental
impact taken into
consideration

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

R&D on Eco-friendly Packaging

Action Plans

In order to ensure that products arrive undamaged at theirend location, we use the three-layer product packaging
which consists of a single-use vinyl for product protection, apackaging container, and industrial packaging. Most of thepacking materials we use are well-recyclable, and according
to the characteristics of a product, we use may air caps or
styrofoam (EPS) as cushioning materials.

As part of the effort to promote the circular economy,
LocknLock is researching into earth-friendly packing
materials. In detail, we are figuring out the way of replacing
one-time use vinyl, air cap, and tape with honeycomb kraft
paper and paper tapes made of environment-friendly vinyl
and paper. Going forward, the continuous endeavors will bemade to expand the use of sustainable packing materials to
cut down on waste generation.

Share of Each Packaging Material(Based on sales volume in 2021)

AS-IS

Review of Introduction

LocknLock 2022 Sustainability Report

Expected Effects• Reduce the use of Styrofoam (EPS)• Biodegraded when disposed• No toxic gases emitted whenincinerated• Easy to recycle due to the propertyof paper• Easier and more convenient forcustomers to separate and put out
the trash

70% HDPE (High-density Polyethylene) Vinyl● 20% OPP Film
● 5% Foam Vinyl● 4% EPS● 1% CPE Vinyl●

Introduce paper cushioning materials (pulp air cap, natural foam, pulp mold) as sustainable packaging

29

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

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AppendixCommitment 3. Improving Energy Efficiency
UN SDGs Target

7.3

Double the global rate of improvement in energy efficiency by 2030

Our Commitment and Goal
As part of the effort to reduce our carbon footprint, ourfocus is on the management of our energy use to improveenergy efficiency in addition to the utilization of renewableenergy sources. By doing so, we ultimately aim to curtailenergy consumption itself.

LocknLock 2022 Sustainability Report

30

Action Plans
With the aim of enhancing heat efficiency as well as reducing
power consumption, the Headquarters introduced a varietyof energy-saving activities in 2022. They encompass
introducing LED lights, turning off the lights outside ofworking hours, using automatically power off electronic
devices at the offices, and adopting standby power cut-off
devices.

Action Plan

Key Content

Switching
off the lights

Lights at the offices automaticallyturned off during lunchtime and after
work

Automatic
power-off

Automatic PC-OFF campaign
conducted and printers for public
use automatically turned off

LED lights

Less electricity used, electricity bills
lowered and carbon emissions
reducedStandby power
cut-off devices

Energy consumption when not inpresent use prevented

Our Energy Consumption
We identified power unnecessarily consumed at the office,such as computer standby power¹⁾ during lunch andafter work or the use of lights, through the analysis of ourenergy use. And we also found that heating inefficiency
during the winter is one of the causes behind the redundant
energy use. On the strength of these efforts, we haveseen company-wide total energy consumption and energy
intensity decline over the past three years.
1) Standby power: It refers to electrical power that a device consumes
when not in present use▲ Standby power off socket outlet

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Energy Consumption

Our ESG Topic● Trading Company

2019

Korea

China

LocknLock 2022 Sustainability Report

31(Unit: kWh, MJ)

2021

(kWh)

(MJ)

(kWh)

(MJ)

48,156,746

462,304,762(MJ)

475,403,002(kWh)49,521,146

Total
Consumption● Logistics Center

Appendix

Power
EnergyPower
EnergyPower
EnergyConsumption Consumption Consumption Consumption Consumption Consumption

545,245,162

Category● Plant

2020

56,796,371

Country

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Seoul ●

34,925335,280

39,137375,715

44,562427,795

Asan ●

1,135,704

10,902,758

1,059,835

10,174,416

843,500

8,097,600

Anseong ●3,553,510

34,113,696

3,633,344

34,880,102

3,450,996

33,129,562

Shanghai ●573,928

5,509,709

439,992

4,223,923

395,092

3,792,883

Beijing ●10,747103,171

18,360176,256

17,262

165,715

Shenzhen ●19,889190,934

18,536

177,946

15,128145,229

Guangzhou ●28,708275,597

19,139183,734

13,747

131,971

Manshan ●190,549

1,829,270

62,644

601,382

62,113596,285

Suzhou ●5,421,281

52,044,298

5,123,464

49,185,254

5,259,060

50,486,976

Suzhou (East China) ●364,935

3,503,376

322,122

3,092,371

330,027

3,168,259

Tianjin (North China) ●19,698189,101

19,500187,200

19,715

189,264

Guangzhou (South China) ●52,644505,382

49,413474,365

46,430445,728

Ho Chi Minh ●650,800

6,247,680

723,226

6,942,970

628,500

6,033,600

Hanoi ●

78,668755,21374,034

710,726

58,824

564,710Vietnam Vung Tau ●43,341,540

416,078,784

36,600,500

351,364,800

35,773,500

343,425,600

Long Hou ●650,800

6,247,680

723,226

6,942,970

628,500

6,033,600

Bac Ninh ●632,084

6,068,006

561,720

5,392,512

471,038

4,521,965

Indonesia ●29,465282,864

23,992

230,323

21,451205,930

Thailand ●

-

-

-

-

66,796641,242

The US ●

-

-

3,565

34,224

5,813

55,805

Europe ●6,496

62,362

5,397

51,811

4,692

45,043▲ LED Lights▲ Power-off during the lunchtime

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STORY #2

Safe Products for Humans
and Nature

Tightening Hazardous
Chemical Substances
Management

Commitment

Zero use of chemical
substances
restricted by EU
REACH

Ensuring
User Safety

Supply Chain ESG
Management

Commitment

Disclosure of key
raw materials on
our website

Companies are required to grasp what impact their products will have on the environment and people, such as
human toxicity potential, across all the stages ranging from materials procurement to production to use to disposal.
LocknLock strictly inspects all of our products for their chemical harmfulness and risks, starting from the procurementof raw materials. And the key raw materials used for products are transparently disclosed on our brand website
and in-house online shopping mall. Furthermore, the safety of our products has been verified by external reputableagencies. In addition, we will study to find an alternative of high risk chemicals so that we can respond to the global
regulations proactively.
As concerns mount over the human rights issues that occur within the value chain, companies are being faced withthe growing demand for the policies and activities to make their supply chain more responsible and transparent.
Against this backdrop, we have established our Code of Conduct for Suppliers in 2022 taking the issues of humanrights, labor, the environment, safety and ethics into account. All of our product and service suppliers are subject
to this Code of Conduct. LocknLock promises that we will monitor our suppliers’ compliance and their ESG risk
management, thereby fully discharging our duties and responsibilities as a global exporter to more than 120
countries.

Appendix

LocknLock 2022 Sustainability Report32CEO Message

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AppendixCommitment 1. Tightening Our Hazardous
Chemicals Management
UN SDGs Target

12.4

By 2020, achieve the environmentally sound management of chemicals and all wastes
throughout their life cycle, in accordance with agreed international frameworks, andsignificantly reduce their release to air, water and soil in order to minimize their adverse
impacts on human health and the environment

3.9

By 2030, substantially reduce the number of deaths and illnesses from hazardous
chemicals and air, water and soil pollution and contamination

Our Commitment and Goal

Our Toxic Chemicals Management

Consumer safety comes first. In 2009, we coined the term,‘Bisfree’ for the first time with the development and launchof BPA (bisphenol A)-free airtight containers. And then, we
succeeded in inventing the PFOA¹⁾-free technology andapplied it to all cooking utensils adopting Teflon coatings in
2010, and introduced the PFOS²⁾-free coating method in2015.
LocknLock complies with 「Act on the Registration and
Evaluation, etc. of Chemical Substances」 and does not
use SVHC (Substances of Very High Concern) designatedby EU REACH. Furthermore, we will carry out R&D activities
to develop alternatives of chemicals over which many
regulators have raised their concerns about the danger athome and abroad.

Our Efforts for Consumer Safety

1) PFOA: Perfluorooctanoic Acid
2) PFOS: Perfluorooctanoic Sulfonate

LocknLock 2022 Sustainability Report34

Our Efforts for Employee Safety

Mold cleaning detergents, rust inhibitors, sodium nitrateand sodium hydroxide are the hazards and toxic chemical
substances that we use in the course of manufacturing.
And we have all our business sites separate all thesubstances for preservation, and place MSDS on the shop
floor. In 2021, total amount of mold detergents and anti-rust
additives we used for manufacturing amounted to 1,748L.

We purchase raw materials 100%, which means that weare not subject to the registration of raw materials. However,
we make sure that the primary buyers of raw materials
register the chemicals they purchase through seamless
inspections when we procure the raw materials. On top of
that, the descriptions of the chemical properties subject
to management and MSDS (Material Safety Data Sheets)are comprehensively managed in our groupware, whichenables us to identify the harmfulness and risk of thechemical substances contained in our products. We haveobtained the GMP³⁾ certification for FCMs (Food Contact
Materials), and the RoHS4⁾ certification when it comes to theelectronics subject to the Eco-Assurance System.
3) GMP: Good Manufacturing Practice, production and quality control
standards that food contact materials manufacturer must follow
4) RoHS: Restriction of Hazardous Substances in Electrical andElectronic Equipment▲ Bisfree Modular

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Appendix

LocknLock 2022 Sustainability Report

35

Action Plans
As part of our efforts to tighten control over hazardous
chemicals and relieve the consumers ’ concerns, we
disclose the key materials of main products that account for
35% of total domestic sales in 2021 on our website and the
LocknLock online mall website. On top of that, the list of our
products that are GMP-certified or RoHS-certified are also
viewable on our website.

In addition, the set of standards for the management of
all chemicals that we use in the course of production andrelevant policies are in the pipeline. And we will formulate thecriteria to respond to a variety of global regulations, thereby
ramping up our consumer safety management.

▲ Disclosing key materials of our products

on official website

Our Chemical Substances Management Process

ImportConducting inspections
by material when going
through customers
formalities

Classifying chemicals into
6 phases according to theirrisks at the raw materials
procurement stageNon-use of SVHC designated by
EU REACH

Production

Conducting regularinspections by material

Obtaining RoHS certifications forelectric and electronic appliances

Disclosing the key materialsof our products on our official
website and the LocknLock
online shopping mall

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AppendixCommitment 2. Labor Practice Management in
Our Supply Chain
UN SDGs Target
Take immediate and effective measures to eradicate forced labor, and modern slavery andhuman trafficking and secure the prohibition and elimination of the worst forms of child labor,
including recruitment and use of child soldiers, and by 2025 end child labor in all its forms

8.7

Our Commitment and Goal
LocknLock is committed to creating a corporate culture of respect for human rights and diversity. As part of the efforts, we regard
suppliers as our salient business partners, and manage our supply chain in a transparent manner in order to forge an ecosystem
for shared growth. To this end, we have designated our key suppliers and put in place a process to put ESG management into
action.

Our Suppliers (as of 2021)■ All of suppliers

106

119

807

114

China

Vietnam

OfflineOnline

12

21

16

13

62

53
Korea

(Unit: number)Distribution

259

199

Development & Production■ Key suppliers

Overseas transaction

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Appendix

LocknLock 2022 Sustainability Report37

Our ESG Management Process for Suppliers

1

2

3

4

Policy and Standards

Evaluation

Recommendation of Correction

Monitoring• Our Ethical Principles• Suppliers’ self-evaluation• Code of Conduct for Suppliers• Our due diligence assessment• Corrective measures taken for the areas of• Monitoring the results of corrective measures• Award for good suppliers• Paying attention to stakeholders’ opinions

improvement

taken• Reflecting

the changes in international
standards and laws

Our ESG Management for Suppliers
We have formulated a set of standards for the selection of key suppliers given the gravity of
their business, such as trade volume. As of 2021, we selected 221 key partners among a totalof 1,560 suppliers. And we classified 82 suppliers as our key partners on the development
and production stage and 139 suppliers as key ones on the distribution stage.

And our suppliers’ ESG management process consists of four phases; ① the establishmentof policy and criteria, ② supplier ESG evaluation, ③ recommendation of correction, and④ monitoring. In 2022, we have completed the assessments of suppliers for their ESG
management which belongs to phase 2.

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Appendix38

Action Plans① Establishment of policy and criteria
LocknLock has established our Code of Conduct for Suppliers in line with the standards of
ILO (International Labor Organization) and RBA (The Responsible Business Alliance) to promote
the human rights of employees within our supply chain and ESG management. The Code of

Conduct consists of 5 areas and 25 detailed items. We design it to embrace the core items inthe sectors of the environment, society and governance, and evaluate the level of entire ESG
management.

Items of Our Code of Conduct for SuppliersClassification
Area
Detailed
Items

Environment
Environmental Pollution

Society
Labor & Human Rights• Environmental management• Ban on discrimination• Energy consumption and GHG• Salary and benefits

emissions• Effluent management• Air pollutant management• Waste management• Chemicals management• Working hours• Humane treatment• Guarantee of freedom of

association• Ban on child labor• Ban on forced labor

Governance
Safety & Health

Ethical Management

Management System• Occupational safety• Transparent management and• Education and communication• Response to emergency• Prevention of conflicts of interest

management
situations• Industrial disaster and disease

management• Safety diagnosis• Occupational healthmanagement

anti-corruption• Prevention of unfair transactions• Data protection• Operation of the grievancehandling system• Compliance with related

regulations

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Appendix② Evaluation of Suppliers’ ESG Management
LocknLock has developed the checklist of ESG self-diagnosis for suppliers. Based on the checklist, we identify their ESG
management status and compliance with the Code of Conduct for Suppliers, and grasp what ESG risks our supply chain has.
The checklist for ESG self-diagnosis disclosed on our official website is comprised of 15 items including human rights one. And
we distributed the checklist in languages of the countries where our key suppliers operate. As of 2022, a total of 45 suppliers
conducted ESG assessments and they are rated ‘Good’¹⁾ on average. Going forward, we will analyze the evaluation results bycountry and request poorly-received suppliers to correct the areas that need improvement.
1) Four-point scale evaluation: Excellent, Good, Average, and Poor. Recommendations for improvement by rating are provided on our official website

ESG Evaluation Results of SuppliersClassification

No. of Suppliers Receiving ESG Evaluation

Average Rating

Position within Value Chain

Korea

27 suppliers

Good

Development, Production, Distribution

China

17 suppliers

Excellent

Production

Vietnam

1 supplier

Excellent

Production

17suppliers

27suppliers

1supplierLocknLock 2022 Sustainability Report

39③ Recommendation of Correction
LocknLock plans to provide what should be improved
for their better ESG management based on their ESG
evaluation results. If a supplier is rated ‘Poor’ or there is an
identified high risk, we will ask the supplier to take corrective
measures to rectify the issue. For the well-received suppliers
rated ‘Excellent’, we will award them, thereby motivatingthem to promote their ESG management.
④ Monitoring
When it comes to the management of suppliers that werequest to take corrective action, we plan to keep track of
their progress and constantly provide solutions rather thansuggest one-time recommendations for improvement.
Furthermore, we will keep up with the fast-evolving ESG
trends and regulations to reflect them in the checklists anditems for ESG evaluation of suppliers. Especially, our focus
will be on the areas that can have a far-reaching impact
on us and the manufacturing business, such as the Act
on Corporate Due Diligence in Supply Chains. LocknLockpromises that we will make all-out efforts to embed humanrights and ESG management into every stage of our supply
chain.

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STORY #3

Spread of
a Sound Governance Structure

GovernanceSociety has raised a question over shareholder capitalism, and the active discussions on stakeholder capitalism
are underway. Pursuit of interests of diverse stakeholders ranging from customers to suppliers to local communities
requires diversity in BOD composition in terms of perspective and experience, which enables us to have a broader
view to make decisions.
Staying true to our management value, ‘We benefit customers all over the world,’ LocknLock puts our focus on
creating values to satisfy diverse stakeholders. As part of our effort to raise gender diversity in our Board of Directors(BOD), we appointed the first female outside director in 2022 while hiring other outside directors with expertise infinance and business area. All these efforts come together to create a sound governance structure that properly
functions in terms of checks and balances.

Appendix

LocknLock 2022 Sustainability Report40CEO Message

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LocknLock 2022 Sustainability Report41CEO Message

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LocknLock 2022 Sustainability Report

AppendixCommitment 1. Efficient Decision Making Structure
UN SDGs Target

16.7 Ensure responsive, inclusive, participatory and representative decision-making at all levels

42

With the aim of ensuring objectivity, the same opportunity
to speak is given to all directors. Our BOD listens to thevoices of a variety of stakeholders through external andinternal communication channels to reflect their thoughts
and opinions regarding our pressing issues, and make an
informed and balanced decision. And we make it a rule that
the CEO does not assume the role of the BOD chairman toensure a sound supervision of the management. To ensure
the board’s independence, we have appointed outside
director, Sungsik Ahn, as Lead Director while empowering
him to request required materials and information from thechairman of the BOD or the company and to convene andpreside board meetings for outside directors, thereby raising
the efficiency in performing their duties.

BOD Composition
Our BOD represents a wide range of stakeholders, including
shareholders, and assumes the roles of making decisions
on key business agenda items to achieve long-term growthand supervising the implementation. As part of our effort
to promote strategic decision-making, we made our BOD
consist of a total of eight directors; four outside directors,
two internal directors, and two non-executive directors
in April 2022. When it comes to the composition, manyfactors, such as gender, religion, nationality, and cultural
backgrounds, were taken into consideration. And thedecision was made at a general meeting of shareholders
that the tenure of the directors cannot exceed three years.

BOD’s Decision Making System
The very purpose of the BOD is to keep the managementin check. In an effort to make our BOD function properly, we
make outside directors make up the majority of the BOD in
accordance with the Article 542-8 of the Commercial Act(Appointment of Outside Directors) while appointing a female
outside director in March 2022 to promote gender diversity.

BOD Composition
Classification

Internal
director

Outsidedirector

Other
non-executive
director● Chairman

Name

Key Profile◎ Lead Director

Area of Expertise Gender○ Member

Tenure(As of April 2022)

Committee within
the BOD
BOD

Audit
Committee

Sunghoon
Ghim

CEOManagement

MaleMar. 31, 2022 ~Mar. 30, 2023○

Sungtae
Kim

CEOManagement

MaleMar. 31, 2022 ~Mar. 30, 2023○

Sungsik
Ahn

Vice President of Deloitte Korea

Accounting

MaleMar. 27, 2020 ~Mar. 26, 2023◎●

WonsooShin

CEO of LOEN Entertainment

Management& Strategy

MaleMar. 27, 2020 ~Mar. 26, 2023○○

Seungbeom
Ryu

Executive Director of Deloitte Korea

Accounting

MaleMar. 27, 2020 ~Mar. 26, 2023○○

YounahKang

Associate Professor of Humanities,
Arts & Social Sciences at theYonsei University

Consumer
Strategy & Design

FemaleMar. 31, 2022 ~Mar. 30, 2023○

Sam Lee

CEO of Affinity Equity Partners

Management

MaleMar. 31, 2022 ~Mar. 30, 2023

●

Hyeon
Choi

Vice President of Affinity Equity
Partners

Finance& Accounting

MaleMar. 31, 2022 ~Mar. 30, 2023○

* Board’s age diversity: <30 years: 0, 30~49 years: 3, 50+ years: 5 members

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LocknLock 2022 Sustainability Report

Appendix

43

Board Members’ Attendance Rates

2019

87

100

(Unit: %)

100

100

■ Attendance rate of other non-executive directors

82

100

100

■ Attendance rate of outside directors

100■ Attendance rate of internal directors

We have two types of BOD meetings; regular meetings
convened on a regular basis and temporary meetings held
on an occasional basis. The chairman of the BOD convenes
the meetings. In 2021, a total of 15 BOD meetings wereconvened. The directors are notified of the convocation threedays before the meeting. The details are disclosed in ourbusiness reports.

89

CEO Message

2020

2021

* Attendance rates refers to the board members’ average attendance rates at the BOD meetings annually held

BOD Operation
Classification
No. of meetings
convened
No. of agenda items
discussed(reported/decided)

BOD Composition Key Indicators
Unit

2019

2020

2021

Time

12

11

15

Case

4/21

8/17

9/30

Classification
Diversity

No. of female directors (ratio)

Expertise

No. of financial experts (ratio)

Independence

No. of outside directors within
the BOD (ratio)

Unit

Person (%)

2019

2020

2021

April 2022

0(0)

0(0)

0(0)

1(13)

2(29)

2(33)

2(25)

2(25)

3(43)

3(50)

3(38)

4(50)

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AppendixCommitment 2. Diverse and Professional BOD
Composition
UN SDGs Target

5.5

Ensure women’s full and effective participation and equal opportunities for leadership at alllevels of decision-making in political, economic and public life

Committees within the BOD
Audit Committee

To ensure our board’s independence, transparency, andfairness, we have operated the Audit Committee within
the BOD. The committee consists of all outside directors
including finance and accounting professionals. The rolesand duties of the committee range from accounting andauditing to asset investigation to activities to secure thelegitimacy of accounting process for the appointment
or change of external auditors, and fairness in business
operations. Furthermore, we require responsible employees
or external auditors to attend a meeting, if needed, andseek for the advice of external professionals. The EthicalManagement Team supports the smooth audits.

Audit Committee Composition
Classification

Name

Area of Expertise

Sungsik Ahn

Accounting

Wonsoo Shin

Strategy

Seungbeom Ryu

Accounting

Outside director

Audit Committee Operation
Classification

Unit

2019

2020

2021

No. of Audit
Committee
meetings

Time

3

11

7

No. of agenda
items discussed

Case

6

16

11

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45

LocknLock 2022 Sustainability Report

Appendix

Our Board’s Expertise and Diversity
Board Skills Matrix
Area

Sunghoon Ghim

Sungtae Kim

Sungsik Ahn

Wonsoo Shin

CEO, senior management

●

●

●

●

Global company

●

●

●

●

Management

●

●

●

Finance●●

Accounting●

Risk management●●

Seungbeom Ryu

Younah Kang¹⁾

●

●

●

●

●

●

●

●

●

●
●

●
●

1) Female outside director

Directors’ Remuneration
Remuneration for directors is comprised of basic remuneration and bonuses. When it comes to bonus, we take financial metrics(sales, operating profit, etc.) and non-financial metrics (contribution to the company, roles and duties) into consideration to decide
the bonus amount in accordance with the Rules of Executive Compensation approved by the BOD. The cap on directors’
remuneration for all registered directors including outside directors is decided at general shareholders’ meetings, within which the
remuneration amount is finally decided at the BOD and paid. We plan to launch the Compensation Committee within the BOD in
2023 with an aim of ensuring objectivity and transparency in management performance evaluation and compensation system.
Remuneration (paid in 2021)
No. ofdirectors

Registered director ²⁾

5

Outside director-

Audit Committee
members

3

Unit

KRW million

2) Two other unpaid non-executive directors included

Hyeon Choi●

Digital & Consumer

Classification

Sam LeeTotal
remuneration

Average per capita
remuneration

Remarks980

327

Outside directors and Audit Committee
members excluded--

Audit Committee members excluded

108

36

-

48

LocknLock Satisfying
Customers

54

LocknLock Keeping theEnvironment at Our Heart

60

LocknLock Putting
Safety First

64

LocknLock Bringing
Happiness to
Our Employees

72

LocknLock Growing
Together with SocietyOur ESG Topic

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LocknLock Satisfying
Customers

Context
The provision of products palatable to the new demands ofthe market is key to achieving sustainable growth. Putting
customers first, consumer goods companies are required
to manufacture safe and healthy products and reflect
customers’ feedback to maximize customer value. As thesafety of corporate communication network and data assets
has also come to the fore, companies are being faced withthe growing demand for more stringent information assets
management including personal data.

Our Approach
We are well aware that our growth and existence lies incustomers. Regarding customers as our most paramountvalue, we have been committed to managing customers’
data in a seamless manner. In the years to come, we will
pay close attention to customers’ voice and reflect theirsuggestions and thoughts so that we can immediately
handle their grievances and inconveniences.

Ranked 1st in K-BPI for
19 consecutive years* In the airtight food container category in 2022 K-BPI (Korea Brand Power Index)

Our ESG Topic

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Appendix

LocknLock 2022 Sustainability Report48

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Appendix

LocknLock 2022 Sustainability Report

49

01 Ensuring Quality for Customer Satisfaction
Strategy to Secure Consistent Quality
We keep the ‘ best quality and maximized customer
satisfaction’ at the heart of our management. To thisend, multifaceted efforts are being made including QC¹⁾
procedure management from the very initial stage of productdevelopment, sourcing, and the suppliers’ manufacturingphase, the prevention of defective products, and QR²⁾
standardization, thereby guaranteeing consistent qualitythat underpins the provision of distinguished products andservices. On top of that, we have built the quality management
system and put it into action at the company level while taking
the customer-oriented approach to develop new products
and harmonizing our talents with technologies to create thebest-in-class products and services.
1) QC: Quality Control, a process to verify the defined requirements for
quality2) QR: Quality Record, product specification and optimal quality
inspection work

Obtaining International Quality Certifications
With the aim of securing quality that satisfies our customers,
we obtained the international quality certifications, and haverenewed them by reflecting the recent changes in our quality
management. Our business sites in Asan and Vietnam
are certified to ISO 9001 for their combined manufacturing
process of injection molding, glass, and cookware, which is aclear demonstration of our standardized quality management
process at home and abroad as well as consistent quality thatguarantees consumer safety. When it comes to our airtightcontainers, we have obtained the GMP (Good Manufacturing
Practice) certification for the entire manufacturing process, a
representative regulation on FCMs (Food Contact Materials).

Helping Suppliers in Improving Their
Quality Management
To satisfy customers in terms of quality requires us not only
to focus on our manufacturing site but also to improve our
suppliers’ quality management. Accordingly, we pay a visit
to suppliers’ manufacturing sites on a monthly basis toprovide feedback on their procedures, and request themto take corrective measures, if needed, and monitor theiraction to check their improvement. In addition, we put inplace the system that monthly provides feedback on their
quality, thereby comprehensively managing their productquality and correction history.
▲ Support for production quality improvement

Process to Secure Quality

Analysis of
the consumer
environment

Product
planning

Product
development

Product
manufacturing▲ Support for development quality improvement

VOC (Voiceof Customer)
reflection

Analysis of themarket and
VOC

Sales

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We pay close attention to our customers’ inconvenience
Altering Materials of Container
CapsMore Convenient Vacuum Rice
Container

Improving UI and Sanitary ofKnife & Chopper Sterilizer

Renewal of Marimo Ultrasonic
Humidifier

Previous Euro Glass containers had
weak stability as they were prone toslipping when stacked, and their capintegrated wings had a high risk ofdamage in an emergency. Consumers
also pointed out that the translucent lid
made it harder to identify the contents.

The Vacuum Rice Bucket stores rice, thestaple food of Koreans, in a fresh andhygienic manner. The first generation of
vacuum rice buckets had an integrated
cap making it hard to clean the inside,and it had a wire for charging.

It is known that contaminated tableware
accounts for 25% of the cause offood poisoning. To resolve this issue,
LocknLock launched a Knife & Chopper
Sterilizer to help consumers maintaintheir clean and sanitary kitchen. But
some consumers pointed out that thesanitation indication level was obscure
to see the progress. Some commented
that checking water stains or residue
was difficult because the main body
could not be separated.

Marimo Ultrasonic Humidifier is popularfor its clean design and size, suitable forsingle-person households. However,there were many noise complaints.

We launched Top Class containers
with relatively concave caps to makethem less shaky when stacked anddetachable clip wings to reduce the riskof breakage. We also produced it with atransparent BPA-free material called Tritan
so that consumers can easily check thefood inside and use it more safely.

The second generation has both wired andwireless charging so that it can be placed
anywhere. In addition, its cap has been
updated to be detachable, making it easier
to clean inside. The start and stop of thevacuum is controlled with a one-touch button,
while a desiccant storage box and a built-in
scoop considerably raised user convenience.

In response to the complaints, wecreated an intuitive 4-level indicator to
select it easily while making the bodycover detachable in order to enable theinside cleaning and sanitation of thewhole chopping board.

We lowered the noise of the humidifierbody by switching out a motor. We also
used magnetic components to makeassembly convenient while adding alamp function to respond to suggestions
from our consumers.

50

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51

02 Facilitating Communication with Customers
No. 1 in Korean Brand Power
LocknLock takes the lead in the industry based on highconsumer trust. According to the 24th Korea Brand Power
Index (K-BPI), we are unrivaled, ranking No.1 in the airtightcontainer field for 19 consecutive years (2004-2022) and in
the kitchenware field for 6 consecutive years (2017-2022),
solidifying our top brand position. Nevertheless, we are notcomplacent about our current status, but are seeking tocontinuously grow by raising awareness and preference year
by year.

We design your lifestyle
iF Award in 2021

Red Dot Award in 2021

German Design AwardiF Design Award in 2022

Metro Edge Tumbler
Metro Edge Tumbler received
high marks in the iF Awardfor its ergonomic design. The
tumbler is popular not only
for its trendy balanced grip
curve and slim strap, but also
for excellent portability andconvenience.

Barohanggi
We won the Red Dot Awardfor the ‘Barohanggi’ series that
presents a practical designreflecting modern lifestyle aswell as safety. The optimal sizefor one meal portion and a ‘safe
cap handle’ made of silicone
notably received favorable
reviews for satisfying bothdesign and functional aspects.

Soma IH
Soma was recognized at theGerman Design Awards for its
design for comfortable use. Its
comfortable handle grip and its
weight lighter than a small packof milk received particularly
good reviews. The advantage
of applying IH technology
enables various ways to use it.

Food Waste Cooler
Its soft cube shape makes useof space in an efficient way in
a limited kitchen where many
appliances are placed. The
design reflected our customers’desires. The design teamwanted it to harmoniously fit
into any space without looking
like a food waste bin.

No. 1 in Korean Standard Well-being &Environment Index
We strive to be a company that puts the consumers’
higher quality of life first. In recognition of our efforts, wewere placed No.1 in the Korean Standard Well-Being &Environment Index (KS-WEI) in 2021, which conducts
surveys on the brand's health, environmental, safety,
sufficiency, and social aspects targeting the consumers
who actually used the products. The KS-WEI evaluated that
we appropriately consider the consumers’ living situationand needs. Going forward, we will make our utmost efforts
to create products that consumers feel safe to use.

Design Contest
Staying true to our brand value, ‘People-oriented lifestyle innovation,’ we have pursued the product design that benefits customers’ daily
life and at the same time, puts the environment at its heart. As a lifestyle innovation brand, we plan to host the 2nd Design Contest in 2022
that engages many creators with outstanding capabilities with the purpose of demonstrating our leading stature in terms of design.

Official Homepage Renewal

Customer Satisfaction Monitoring

In 2021, we extensively reformed our official website to
upgrade user convenience and convey the values of ‘life
innovation,’ ‘lifestyle,’ and ‘creator,’ which are our core brandidentities. As a mobile responsive web page, it enhances
consumer accessibility so that users can easily access it on
both computers and mobile devices.

In the second half of 2022, we plan to review the items formobile customer satisfaction and Net Promoter Score (NPS)
for small home appliance services. In case it is difficult toconnect through a phone call as all staff is busy counseling,
we operate a callback service that offers to contact the
missed number when the earlier counseling is completed.

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Appendix

52

03 Reinforced Security for Information and Personal Data
Information Security Management System

Responsibility for Information Protection

Information Security Activities

LocknLock has established an Information Security Management
System (ISMS) to safeguard the information assets to beprotected in a safe and effective manner. We also haveinformation security regulations in compliance with the Act
on Information and Communications Network and Personal
Information Protection Act. These regulations define tangible andintangible information assets as well as guidelines, procedures,and matters applicable to all employees, partner companies, andexternal personnel who use them. We review the feasibility of
information safety regulations at least once a year to upgrade theguidelines. We plan to enhance reliability by obtaining certification
in information protection systems from external institutions.

An executive-level information security officer (CISO),
designated by the CEO, is in charge of security management,
countermeasures for critical issues, countermeasuresagainst infringements, and recovery from those accidents.
The IT Innovation Team under the Operation Headquarters
is responsible for information security on the field andis divided into the PI part managing the operation andprocess of the enterprise ERP, and the IT part controllingthe server, network, IT assets, and shopping malls. Chinese
subsidiaries have formed their own information security
organizations in accordance with local laws and appointed
personal data protection managers.

Aiming to secure the safety of information assets andpersonal data, we utilize a variety of security systems thatroundly blocks external attacks. The key systems wecurrently use are as follows.

Information Security Systems
Classification

Organizations Responsible for Information Security

FirewallA security system that monitors traffic
flowing into the internal network fromoutsideWeb firewall

Blocking the malicious code or attacks byinspecting incoming traffic to the web

DB encryption

Storing securely encrypted data files
containing personal information

ATP

Cutting off incoming malicious code files

Server access
control

Enhancing the security by only allowing
authorized users to access the internal
serverServer antivirus
solution

Blocking malicious code entering theserverConfiguration
management
solutionManaging development source history

Client antivirus
solution

Preventing incoming malicious code fromcomputers

CEO

Information Security
Committee
Working-level Council

Non-IT Division

CISO

CPO

Information Security
Manager

Personal Data Protection
Manager

IT Division

LocknLock
Mall

Integrated
Members

Homepage• Persons in• Persons in• Persons inServer• Personal data security• System (server) security• Physical security• Network security• Human security• Audit security• Security training• DB security• Disaster restoration• R&D security• PC security• Security accident response

charge• Persons in
the field• Persons
responsible
for ITcharge• Persons in
the field• Persons
responsible
for ITcharge• Persons in

the field• Persons
responsible
for ITPC

Function

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Information Security Training

Customer Data Protection System

We provide personal information management training for our
employees once a year. The educational course presents thematters to be observed by the person handling personal informationby the management stage while emphasizing the understanding ofrevised latest laws, aiming to raise awareness of personal information
protection and elevate the application to work. In addition, information
security training for system administrators is provided once a year. It
is an education on the concept of information security and relatedlaws, as well as diverse cases and security management systems.

LocknLock regards customers' personal data as highly
valuable. Therefore, we capitalize both on technical andphysical means to manage personal data as safely as
possible. As a result of these endeavors, as of 2021, there
has been no violation of information security and personal
data protection for 3 consecutive years.

Performance of Information Security Training
Training
2021
Practical
Bible for
Personal
Data
Handlers

Training
Attendance
Target
Hour
Rate

Content
Recently revised laws
in relation to personal
information protection• Cases of applying
personal information
security at daily work•

1 hourAll100%
employees (418 people¹⁾)

Understanding theconcept of information
security and relevant laws
2021
• Recent trends andSystemInformation cases of cyber attacks
100%
1 hourmanagers (12 people)
Security •Systemandnetwork
Training
security• Information security
management system•

1) All employees except for on-site workers and sales workers

Personal Data Breach (Unit: case)
0

0

0

2019

2020

2021

LocknLock’s Principle for Customer Information Protection
1. We encrypt customers' personal data.
The communication section, in which the customers’ personal data ishandled, is encrypted, and the stored personal data is protected byencryption of 128 bits or more.
2. We make access control of personal data our daily routine.
We minimized the internal organization and the number of people handlingpersonal data so that it is used only for essential tasks. We also monitor
access to the system and the status of the database in real time, while
systematically managing password and access control rights of thesystem that processes personal information. We do our utmost efforts tosafely manage personal data through continuous audits and measures.
3. We control physical access to the personal data system.
The location of the system containing personal data is confidential. We
minimize the physical access by the operating personnel to the system
and keep the documentation of physical access history. We also
consistently systematize the management through regular internal audits.

the information security department takes an initial responseto resolve the accident and prevents the recurrence of an
accident through follow-up education and training.
Response Process to Information Security Incidents
Incident Occurrence

Incident Identification

Reporting anabnormality

Receiving thereportClassifying theDeciding theviolation incident level of incident

Eachdepartment

Working-level
CouncilWorking-level
Council(information andcommunication field)

Working-level
Council

Initial Response
Notifying theMaking emergency
urgency of the contacts regarding
accident
the accident
Information
security
manager

Personal dataprotection
manager

If it is an urgent or serious
accident that may be possibly
spread to social issues, wereport the matter to external
institutions (KISA, cyber police).

Problem solving
Resolving
technical issues
Finding causes and restoring it

Reportingthe violation
accident

Officiallyclosing theaccident case

Working-level
Council

Information
security
manager

CISO

Working-level Council(information andcommunication field)

Response to Information Security Incidents
With an aim to minimize the spread of damage in the event of
personal data leakage, we swiftly respond to the incidents inaccordance with our response policy for information security
incidents. Each department notifies the information security
department when an abnormality is detected at work. Then,

53

LocknLock 2022 Sustainability Report

Appendix

Prevention of Recurrence
In the case of customer
information leakage,
we notify the leaked
data, list, and handlingcompletion details to thesubject of leakage.

Monitoring
violation
accidents

Education
on violation
accidents

Audit security Security
managertraining
manager

Accident
response
drillsWorking-level
Council

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LocknLock Keeping
the Environment at
Our Heart
Context
The circular economy model has come into the spotlight as
an alternative to the linear economy that flows from materials,
production, and consumption to disposal. Besides, corporate
responsibility has been a critical issue in terms of using raw
materials that hardly allow natural degradation, such as
microplastics. As there is growing demand for products thatconsider the environment, eco-friendly and environmentallyconscious companies can gain a competitive edge in themarket, which can serve as an engine to promote newresearch and development for more eco-friendly products.

Our Approach
LocknLock has been developing a variety of productsthat result in mitigated carbon emissions. We also strive tocreate an eco-friendly household goods market by selling
environmentally-friendly products designed with our technology
and promoting related R&D. As part of our endeavors to fulfill
our corporate responsibility as a company utilizing plastic as
raw material, we will build an eco-friendly portfolio and actively
carry our plastic recovery and upcycling activities.

1,027Collectingkg
of old food containers(cumulative data from 2020)

Our ESG Topic

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55

01 R&D of Eco-friendly Products
Carbon Mitigation Plan within Product
Life Cycle
LocknLock complies with our 4R eco-friendly principle toreduce the use of raw materials (Reduce), enhance recycling
activities (Recycle), reuse raw materials and energy (Reuse), andreplace them with eco-friendly materials (Replacement) in theentire production process. We have continuously increased theratio of non-plastic products in our portfolio by expanding into
beverageware, cookware, and small home appliances besides
food storage, which is representative of airtight containers.
In particular, we upcycle the plastics to be scraped or raw
materials to mitigate the amount of carbon dioxide generated
in the disposal stage. We also apply plastics made of nonpetroleum using corn, wheat, and bamboo to products andpackaging materials, focusing on the carbon reduction fromthe production stage. Based on these 4R principles, we planto achieve the carbon neutrality goal by 2050.

R&D on Eco-friendly Materials andProducts
R&D-dedicated Organizations

LocknLock expanded our R&D organization in 2018 to securea technological competitive edge in key business areas, suchas technology and product development for small home
appliances, material development, and production technology
support in a continuous manner. Our Innovation Teamdevelops eco-friendly technologies that can contribute toresolving environmental problems and creating social values.

Eco-friendly Home Appliances

As a leading eco-friendly home appliance business model,
LocknLock concentrates on core materials and technology

Carbon Mitigation Plan within Product Life Cycle
Raw materials

Manufacturing

Packaging•••

Disposal

Use

Distribution

•

•

•

Reducing the use ofchemical raw materials• Using eco-friendly
materials• Utilizing recycledmaterials

Developing the products
using biodegradable
materials that do not
require incineration• Developing the
products that do not
generate much waste

related to the green air purification business. As part of it,
we have promoted eco-friendly projects that reduce CO2
in homes and improve air quality based on our technology.
We strive to create a better global environment throughcontinuous innovation in our eco-friendly business model.

Research on Biodegradable Plastics

Using biomass raw materials, we are researching biodegradable
plastic airtight containers that emit only half the carbon in
the manufacturing process compared to general plastics.
The eco-friendly multi-use containers made of corn are safefor the human body as it has no environmental hormones
detected. They are 100% biodegradable within 180 days anddo not leave microplastics, which enables them to be easily
recycled as compost. We are also conducting R&D to resolve
transparency, heat resistance, and ductility issues in comparison
to polypropylene (PP) or Tritan. We plan to release them as a
product in 2023 after sample production and product testing in
2022. Based on these R&D capabilities, we will expand ecofriendly products to 50% of our total product portfolio by 2027.

Using the renewableenergy, including solar
power• Utilizing non-fossil andlow-carbon fuels

Capitalizing on ecofriendly materials• Using grocery bags rather
than plastic bags
• Voluntarily reducing the useof disposable products

Using the packaging
materials that can beeasily recycled• Introducing eco-friendly
packaging materials• Changing packaging
and label materials
Using Electricity rather
than fossil fuels intransportation

Launch of Eco-friendly Single-use Kitchen Items

We have rolled out eco-friendly disposable kitchen
products, rollback and sanitary gloves. About 25% of raw
materials used for these products are sugar cane, which
reduces the use of polyethylene (PE), one of fossil fuels. In
recognition of this eco friendliness, we have obtained ecofriendly certifications.

Eco-friendly Packaging

We aim to maximize the reduced amount of carbon
emissions in the entire process by introducing eco-friendly
elements into our product packaging and transportation.
Styrofoam (EPS), widely used as a packaging material, isa type of plastic that is hardly removed, although it is easily
broken into microplastics. Thus, LocknLock is looking
into the ways to apply paper-based kraft honeycomb,
pulp paper, biodegradable air caps, and sponge foam asalternative eco-friendly packaging materials. By introducing
eco-friendly packaging materials, our objective is to reduce
50% of the amount of styrofoam we use by 2024.

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56

02 Facilitating Resource Circulation
Voluntary Participation in the Plastic
Recycling Agreement
In 2012, LocknLock signed a voluntary agreement with the
Ministry of Environment to recover and recycle plastic waste.
Since then, we have achieved the target recycling rate
every year, saving waste charges and promoting resource
circulation of plastic products¹⁾. Going forward, we willcontinue saving resources and increasing the recycling rateby making voluntary efforts to establish a product recovery
and recycling system.

Apr. 2009

Apr. 2012

Apr. 2014

Nov. 2019Feb. 2020‘Change Your Old FoodContainers’ campaign

Signing a voluntaryagreement for recycling
plastic items with the
Ministry of Environment‘Good PUR’ campaign

Signing a businessagreement with the Korea
Marine Environment
Management Corporation(KOEM) for reducing
plastics in the ocean

Launching ‘Love forPlanet,’ a year-roundcampaign for resource
circulation

led by direct affiliates
and discount shops

celebrating the
Earth Day and theEnvironment Day

1) Agreements were voluntarily concluded and implemented for the last 11 years
since 2012, except for 2015 when agreements were not signed

Plastic Upcycling
Love for Planet Campaign

Starting with the ‘Change Your Old Food Containers’
campaign in 2009, LocknLock has been conducting yearround campaigns aiming to create a resource circulation
culture with local community members for a healthy earthand sustainable life. We are introducing various upcycling
technologies, thereby taking the lead in making a plastic
recycling culture and spreading the meaning of resource
recycling.

Collection of Airtight Containers

Old airtight containers are collected at the LocknLock offline
stores or the collection points we operate. Going forward,
we will increase the collection points so that more and more
people can join this effort to create a resource circulation
culture together.

1,027

Collectingkg
of old food containers (cumulative data from 2020)

COME BAG Eco Bag

In 2020, we produced the first eco-bag that are upcycledfrom plastic airtight container and marine plastic in Korea.
We made eco-bags using polypropylene (PP), the primary
raw material for airtight containers, in 2021 for the first timein the industry, maximizing the plastic recycling effect. The
amount of plastic utilized to produce one eco-bag is about
40g, which is similar to the effect of recycling a single
100mL-sized airtight container, mainly used as a sauce
container.

Upcycling Bench

We regenerated a public bench made out of airtightcontainers collected from offline stores and discarded
marine plastics. The upcycling benches were installed along
the Jeju Olle Trail to provide shelter to local residents andtravelers in Jeju, which also raises awareness of resource
circulation in real life. The effect of producing the upcycling
bench is similar to the effect of recycling about 1,400 airtightcontainers with a size of 450mL.

▲ LocknLock Upcycling Bench installed in Jeju Olle Trail

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Carbon Mitigation Project

LocknLock contemplates various ways to take the lead inrecycling resources by reusing the plastic waste left overfrom the production process. As part of our endeavors, wehave cooperated with several companies to create cases ofadvanced resource upcycling.
In 2021, we collaborated with CJ Logistics to produce 300
Carbon ZERO Pallets¹⁾ and adopted them to the logistics
sites. After LocknLock provides plastic leftovers from theplant, a professional manufacturer produces carbonfree pallets, and CJ Logistics utilizes them. The amountof plastics that go into one Carbon ZERO Pallet is 28 kg.
However, 67.2 kg of carbon is generated if we simply
discard them. We provided 10 tons of scrap plastic for thisproject to produce 300 recycled pallets, which achieved
the same carbon dioxide reduction effect as planting 6,720
pine trees.

Effect of planting
pine trees yearlyAppendix

One Week Challenge for Healthy Seoul

20,160kg

In the second half of 2021, we launched a consultative
body for carbon-zero in collaboration with CJ Logistics and
A Twosome Place to take the initiative in carbon reduction
activities with companies and citizens. As part of this, we
conducted, ‘Hello, Zero Waste’ campaign, in which leftover
plastic generated from our plants and disposable waste
plastic collected from the branches of A Twosome Place
were upcycled into mufflers and multi-use storage boxes.
These upcycled products were sold through Wadiz, a
crowdfunding platform, and the proceeds from the sales
were donated for Big Issue Group, one of social enterprises
helping housing vulnerable groups, and the vulnerable
suffering from climate change.

We collaborated with the Seoul Health Family Support
Center in 2021 to conduct a tailored program under
the theme of environmental improvement, intending toencourage citizens to lead eco-friendly lifestyles. The‘One Week Challenge for Healthy Seoul’ was carried out
with different themes each week, such as using tumblers
instead of disposable cups or using multi-use containers at
supermarkets to spread environmental protection activities
in our society. In this challenge, a total of 300 Seoul citizens
participated and celebrating gifts were given to those
who had completed activities by the 5th week in order toencourage continuous engagement.

1) Palette: a flat supporting structure for loading goods and transportingthem with forklifts at a logistics site

▲ Carbon Zero Pallet▲ Group picture of Carbon ZeroCouncil57

Promotion of Green Marketing

6,720

Effect of reducingof CO2

LocknLock 2022 Sustainability Report▲ ‘Hello, Zero Waste’ upcycling

products▲ ‘One Week Challenge for Healthy Seoul’ Poster

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58

03 Efficient Use of Raw Materials
Certification in Environmental
Management System

Reuse Performance of Raw Materials

LocknLock has disclosed our firm will to perform all of ourbusiness in an environmentally friendly manner and take thelead in environmental protection and resource preservation
through continuously developing technologies and saving
resources in our Ethical Principles. We have acquired andmaintained ISO 14001 certification, an international standard
for environmental management, after going through external
professional audits toward 3 business sites in total, among
6 business sites including the domestic headquarters, Asansite, Anseong site, and overseas business sites.

PP Re-useton

ECO Lock
Production

Unit

2019

2020

2021

204

241

147

number

1,433,119

1,786,380

2,150,596

ECO Lock Sale number

620,510

720,883

857,443

KRW
million

926.5

1,031.5

1,142.2

ECO Lock
Revenue▲ ECO Lock

Efficient Use of Resources
Efforts to Reuse Raw Materials

LocknLock prevents wasting quality plastics to reduce waste
by manufacturing eco-friendly airtight containers made ofrecycled polypropylene (PP) fragments in our plants. As
we use scrap materials left from our plants, we are able
to maintain the same quality as other 100% food-grade
LocknLock products. Due to the nature of the recycled
product, it can be produced in a number of different colors,
making it unique to meet an individual's taste. It is being soldwith positive feedback in the UK's large retail supermarkets,
Tesco and Sainsbury's.

Water Management

In 2021, we achieved in reducing both water usage andrevenue intensity. Going forward, we will continue to lessen
the use of water and strive to use it efficiently.
Water UsageClassification

Unit

2019

Total usagem3

327,797 348,199 342,274

Intensitym3/
KRW million

Water

0.67

2020

0.69

2021

0.63

◀ ISO 14001 (EMS) Certificate

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59

04 Minimization of Environmental Impact
Water and oil that we dispose of from each business site
are separated and handled by an external waste company.
We separate recyclable items by dividing them from waste
generated in the field through the separation discharging
process, focusing on increasing the recycling rate of thewaste.
Waste Discharge
Classification

Waste

Total discharge
Intensity

Unit

2019

2020

2021

ton

4,660

4,537

5,519

kg/
KRW million

9.59

9.04

10.16

Effluent Discharge
Classification

Effluent

Unit

2019

Total usagem3

179,533 205,106 207,132

Intensitym3/
KRW million

0.37

2020

0.41

2021

0.38

Water Pollutant Discharge
Classification

Unit

Discharged BOD
concentration
Discharged COD
concentration
Discharged SS
concentrationppm

2019¹⁾

2020

2021

377

424

315

720

808

863

243

674

466

1) The figure of 2019 was measured from the second quarter

Sheet (MSDS), and is equipped with the safety protection
equipment necessary for handling. On top of that, weregularly provide safety training on hazardous chemicals
and dangerous substances once a year for employees in
the field to prevent accidents. We use a minimum amountof hazardous chemicals by diluting them with water.
The Vietnam plant that has an injection center only uses
environmentally certified paints and silicones to comply withlegal requirements.

Hazard Chemicals²⁾ Usage (Unit: L)

Air Pollutant Management

Air pollutants are monitored by an external professionalorganization. Our Chinese sites conduct regular air quality
measurements once a year under the supervision of theEnvironmental Protection Agency of the jurisdiction, and ourVietnamese sites perform regular air quality measurements
once a quarter through a specialized institution.

Chemicals Management

We comply with the ‘Act on Registration and Evaluation,etc. of Chemicals’ and do not use substances of very highconcern (SVHC) designated by EU REACH. Currently, there
are a few manufacturing sites using dangerous substancesor hazardous chemicals, such as mold cleaners, rust
inhibitors, sodium nitrate, and sodium hydroxide. We makesure each business site stores the relevant substances
separately by their properties, places a Material Safety Data

20192) Mold cleaner, rust inhibitor

2020

1,748

Waste Management

1,504

In 2021, total effluent discharge, including domestic andoverseas business sites, increased by 1% compared tothe previous year, but the intensity decreased by 5.3%. Our
Chinese business sites conduct yearly regular inspections,managing water pollution risks under the supervision of
the Environmental Protection Agency of the jurisdiction
where the business sites are located. The business sites inVietnam measure wastewater, analyzing BOD, COD, SS,
and other elements every month, and conduct quarterly
measurements led by a specialized agency, improving its
management capabilities for wastewater treatment. We willcontinue to minimize wastewater discharge and reducewater pollutants with an efficient wastewater and effluent
treatment system.

1,907

Effluent Management

2021

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LocknLock Putting
Safety First
Context
In 2022, the safety and health regulations have become
stricter; for instance, the ‘Serious Accidents Punishment
Act’ was enforced. Companies must put their employees'
safety and health first, striving to organize a safety and healthmanagement system to preemptively prevent potential risks
that may occur at business sites and embed a safety culturein the field. There are growing demands for mutual safety
and health management to support the safety and health ofstaff from partner companies in addition to our employees.
Therefore, it is required for companies to respond to it in a
reliable manner.

Our ApproachWith an aim to ensure on-site safety at worksites, wehave set up our own risk standards while identifying andimproving potential risk factors through a self-inspection
system. We provide safety training, targeting business sites
and sales agencies and hold ‘Safety and Environment
Day’ to award good sites in terms of safety management,
assisting in internalizing a safety culture in the daily work of
our employees.

The improvement rate of risk
factors in business sites

99%

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LocknLock 2022 Sustainability Report60CEO Message

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Appendix

61

01 Safety and Health System
Organization Dedicated to Safety and
HealthSystem for Securing Safety in the Field

We maintain the environment of headquarters and businesssites in and outside Korea to be safe in accordance with
our mid- to long-term master plan for a safe environment,
starting with the appointment of a company-wide safety
environment officer and the establishment of a safe
environment TF in 2019. The key performance, budget aswell as safety and health management plan are reported
to the BOD. In 2022, we plan to promote the safety andenvironment TF to a regular safety-dedicated organization
while supporting the acquisition of professional certificatesto enhance the competency of the organization in charge.

To create a safe working environment, the ‘5S principle’ and‘3Do activities’ have been introduced and operated. The 5S
principle is the first letter of five elements; Sort, Set in order,
Shine, Standardize, and Sustain. Based on this 5S principle,
we are creating a safe workplace through 3Do activities that
require removing unnecessary items, using items easily bysorting them and keeping the environment clean.

Standards for Field Safety Management

Establishment of Autonomous Safety
Management System

2021 is the first year of the establishment of the fieldautonomous safety management system. We focus on
identifying potential risk factors in the workplace while
preventing accidents by implementing a full-fledged selfrisk assessment that was previously conducted as a pilot.
The system includes activities to overhaul field management
guidelines, including basic safety and health management
regulations and emergency responses, and to check thecondition of facilities using 68 criteria in the safety checklists
by process facility. The manager in charge checks if there
is any non-compliance using about 10 checklists related
to each facility or process in person. We perform thoroughsafety monitoring if any required correction is detected byfilling out the details before and after improvement.

Sort

Shine

5S Principle

Sustain

Set in Order

Standardize

Applying to
LocknLock

3Do Activity
in the Field

Sort

Set in Order

Standardize

Removing
unnecessary items

Using items easily
by sorting them

Maintaining theenvironment clean

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Appendix

62

02 Safety and Health Activities
Safety and Health Management(Unit: case)(Unit: %)Reporting thesafety andhealth plan to
the BOD

Conducting
a safety
inspection

2020

2021

69

Developing
safetymanagement
checklists

2019

2020

2021

2019

Safety Education in the Store

No. of providing safety andhealth education

No. of participants in safety
and health education(Unit: case)(Unit: person)383
89Marking the ‘Safety and Environment Day’ in 2021, we heldan event to share safety environment improvement cases atour site throughout the year and to award excellent businesssites. We have improved 97% of high-risk factors production
and logistics sites in and outside Korea and repaired 100%of unacceptable risk factors, which demonstrates that weare actively preventing accidents. After we comprehensively
considered the evaluation criteria, including materiality,
completeness, difficulty, innovation, and teamwork, weawarded KRW 3 million to the best worksite and KRW 1
million each to the best improvement cases in order toencourage active safety management.

60

Safety and Environment Day Event

7

In addition to the manufacturing sites, LocknLock strives tocontrol the safety of our stores located in Korea, Vietnam,
and China. In 2021, we appointed 450 environmental safety
managers and supervisors for store facilities, providing
regular safety education for store managers and staff for
3 hours once a year. A standard fire safety management
checklist is distributed to each store, while the manager
conducts a daily safety check and the supervisor conductsa monthly safety check. In 2022, we plan to reinforce thetraining and inspection procedures to establish a store
safety management system.

2•

Providingsafetyeducation

177

LocknLock provides regular safety education and training
for production and logistics business sites. Field workers
are required to complete 2-hour safety training every
month; new employees must take it 8 hours a month. If
necessary, special safety and health training is offered. In
2021, we underscored the strengthening of managers'
accident prevention capabilities by reinforcing training forsite managers. As part of the efforts, we provided 6 hoursof video training utilizing the newly introduced self-risk
assessment and an opportunity to practice the Korea Risk
Assessment System (KRAS) of the Korea Occupational
Safety and Health Agency.

Establishinga safetyorganization

222

On-site Safety Education

Rate of improving risk
factors3•

No. of detected risks at
workplace99

Safety and Health Education and Training

96

5 Steps for Store Safety Management

68

Internalization of a Safety Culture

2019

2020

2021

2019

2020

2021

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Preventive Activities against Serious Accidents
Identification of Safety and Health Risks

LocknLock measures the level of risks within the workplace in accordance with the risk
assessment standards of the Occupational Safety and Health Agency, applying an appropriate
level of response. The level of risks is classified into six levels in consideration of both thefrequency of occurrence (1-5 points) and the intensity of the accident results (1-4 points),
followed by classifying them as ‘high risk,’ ‘unacceptable,’ and ‘acceptable’ factors. The risk
assessment of domestic and overseas business sites in 2021 shows that 70 types of highrisk factors, such as fire-fighting equipment and machinery, were identified as high-risk factors
requiring immediate improvement, while 107 types of fire-fighting equipment and hazardous
materials were classified as unacceptable factors requiring prompt improvement.

LocknLock 2022 Sustainability Report

Appendix

On-site Inspection and Evaluation by Experts

We implement both the self-risk assessment and the objective evaluation conducted bysafety and health experts, aiming at thoroughly managing safety risks on the production sites.
Each business site annually conducts a self-risk assessment and goes through an on-site
inspection implemented by the safety and health team at the headquarters or external experts
at least once every three years. In 2020, we checked risk factors and improvement areas atour business sites in Korea and Vietnam using a Quick risk assessment by external experts.
We plan to resume the on-site inspection by the safety and health team of the overseas sites
in 2022.

Emergency Response Management
Emergency Response Process

Stage6
Stage5
Stage4
Stage3
Stage2
Stage1High risk factor
Immediate improvement

Unacceptable risk factors
Prompt improvement

Based on our own emergency response management guidelines, we can swiftly andsystematically respond to emergencies in case of fire or explosion accidents. We conduct
virtual drills on a regular basis to make thorough preventive efforts, such as checking
evacuation areas and medical equipment for each situation and inspecting dangerous
machines. In case of an accident, our fire and rescue team, evacuation and relief team, andresource support team will take their roles to minimize casualties.

Occupational Accident
Mortality accident (Unit: case)Accident rate (Unit: %)Acceptable risk factors
Improvement if necessary

0

0

0

0

0

2019

2020

2021

2019

2020

0.21

Risk Assessment Criteria

63

2021

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LocknLock Bringing
Happiness to Our
Employees
Context
At the core of our sustainable organization lies a corporate
culture that respects the diversity of employees andsupports individual growth. That is because the diversity of
employees is directly related to the creative ideas required
for mid- to long-term development of the organization andthe identification of new business opportunities. Accordingly,
a company should provide reasonable evaluation andcompensation and various support programs to support
individual competency and growth while seeking work andlife balance.

Our Approach
LocknLock operates a performance-based objective
compensation system and non-discriminating recruitment
system. Besides, we support the development of individual
employees through various training programs. Aiming tocreate a happy work environment and a communication
culture for employees, we strived to improve it to become
a bottom-up corporate culture. We also raise the work
concentration of employees supported by the work-lifebalance system.

Female Ratio of theOrganization

52%(domestic)

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LocknLock 2022 Sustainability Report64CEO Message

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65

LocknLock 2022 Sustainability Report

Appendix

01 Human Rights Management and Securing Diversity in Employees
Human-oriented Value
We have specified ‘people-oriented’ values as our corevalues and practiced human rights management. Throughthe Ethical Principles and Practice Pledge, all of ouremployees pledge not to discriminate against any reason
unrelated to work, including regional ties, school ties, blood
ties, gender, and physical disability, and not to form any
factions in the organization. We stipulated the prohibitionof workplace harassment in our employment regulations.
In case we receive a report or become aware of theharassment, we immediately investigate to check the fact.
Every year, we provide human rights education as partof our efforts to prevent any occurrence of acts that areagainst people-oriented values.

Classification

Gender86

86

Equal Pay for Men and Women¹⁾ (Unit: %)82

Male (ratio)
Female (ratio)
Regularemployees(ratio)

Age

2021

589

2020
591

2021
534

270(45.8) 275(46.5) 254(47.6)
319(54.2) 316(53.5) 280(52.4)

61(10.4)49(8.3)26(4.9)52(8.8)54(9.1) 58(10.9)

Unit

Total No. of Employees

PersonDetails

Dispatched
Locally hired

2019

Person

2020

2021

3,543

3,175

2,875

98

95

87

3,445

3,080

2,788

Through the LocknLock Cyber Training Center, we provide
ethics education and legally required education for our
employees annually to improve awareness of the disabled,
prevent sexual harassment, and protect personal data. If
online courses are not accessible, separate offline training
was provided to help employees complete human rights
and ethics education.

99(16.8) 94(15.9) 102(19.1)

The disabled(ratio)2(0.3)

2(0.3)

2(0.4)

Youth interns(ratio)

0(0)

0(0)

2(0.4)High School
graduates(ratio)Classification

Human Rights Education

30~49 years Person
438(74.4) 443(75.0) 374(70.0)(ratio)(%)
50+ years(ratio)Diversity2019

528(89.6) 542(91.7) 508(95.1)

PersonEmployment(%)
Type
Non-regularor dispatchedemployees(ratio)Foreigners(ratio)1) Pay gap generated due to job duties

Person(%)<30 years(ratio)As of the end of 2021, LocknLock has a total of 3,409
employees, of which 534 are employees working in Korea.
The majority of employees at domestic sites are women.
In order for the realization of gender equality, we do notdiscriminate when it comes to roles, recruitment, and positions
and give equal opportunities depending on their performance.

2020

Unit

Total No. of Employees Person

Respecting Diversity

2019

Employees in Overseas

Employees in Korea

Person(%)

85(14.4) 125(21.2) 88(16.5)

0(0)

0(0)

0(0)

Human Rights Education
Classification

Unit

2019

2020

2021

Total hours of humanrights education

Hour

1,296

1,566

1,672

Hours of humanrights education per
employee

Hour

3

4

4

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Appendix

66

02 Human Resources and Performance Management
Recruitment and Employment

Fair Recruitment
In pursuit of becoming a lifestyle creator bringing life innovation
to reality, we recruited human resources who will grow into
global talents. In 2021, a total of 100 new employees were
hired in Korea, contributing to job creation in the domestic labormarket, which has been contracted in the aftermath of the
COVID-19 pandemic.
Despite the social distancing due to the pandemic, wehave exerted every effort to hire talents as safely and fairly
as possible. We conducted virtual interviews using a videoconference solution for non-face-to-face recruitment andused a non-regular recruiting system. As such, we have
prepared measures to preemptively respond to various
crises that may occur in the future as well as the COVID-19
pandemic and to secure suitable talent in a short period oftime if necessary.
As a global company, we hire competent and passionate
talents regardless of nationality or age. In particular, we
recruit people from local areas when we hire critical roles inmarketing and sales and assign them jobs and positions
based on their capabilities.

Classification
No. of new employees
GenderRecruitment

Age

Turnover

Age

Male

70

37

42

Female

114

60

58

<30 years

22

23

33

120

66

62

42

8

5

Seoul

143

73

89

Asan

14

6

1

Anseong

27

18

10

103

92

87

Male

33

31

42

Female7061

45<30 years

11

11

18

69

66

64

23

15

5

Seoul

84

81

80

Asan

4

6

1

Anseong

15

5

6

4.70

5.37

5.90

4.33

4.75

5.56

8.55

9.20

9.39

6.78

7.91

8.51

30~49 years
50+ years

Talent Recruitment Process
RegionApplication for
jobs

Interview(1st, 2nd)Years ofService
Application
document
review

HealthCheck-up

PersonPersonPersonAverage length of service for men(management, development, sales positions)

Final
Acceptance

2021
100

No. of voluntary turnover
Gender2020
97

30~49 years

Person2019
184

50+ years

RegionUnit

Average length of service for men (production positions)Average length of service for women(management, development, sales positions)Average length of service for women (production positions)Year

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Reasonable Performance Evaluation
Keeping in mind our principle of performance evaluation on
the development of employees' capabilities, improvementof their achievements, and the realization of a performancebased personnel system, we make endeavors to evaluate
the competence of employees based on objective grounds.
We conduct performance evaluations for all employees
once a year. Performance goals are agreed upon inmeetings between evaluators and employees every March,and interim feedback is provided in August. At the end of
the year, we give our employees a final evaluation rating inline with the 5-grade system and last feedback. The subjectof evaluation can raise objections to the evaluation results.
Upon receiving a complaint, the evaluator should faithfully
provide feedback concerning the evaluation results.
We implement promotions and give incentives inaccordance with the performance evaluation results. On
top of the annual performance evaluation, we carry out
performance-based personnel systems, such as an idea
and achievement award system, on a regular basis forgiving motivation by awarding prizes or vacations to talented
individuals who take on challenges.

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Appendix

LocknLock 2022 Sustainability Report

67

Performance Evaluation Process
Goal Setting(March)• Setting annual personalgoals after goal assignment• Agreeing on goals after

interview and review by anevaluator• Inputting them into theevaluation system

Interim Check

Performance Evaluation• Interim check on performance• Implementing final evaluation(August)achievement (setting goals
for the newly hired in the firsthalf of the year)• Conducting mandatory

midway interviews(December)of goal achievement• Having evaluation

feedback interviews• Inputting them into theevaluation system

Result Confirmation(January of the following year)• Confirming the final

evaluation gradeCEO Message

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68

03 Capacity Building and Welfare Benefits
Education for Employee

Operation of Online Education Platform

We operate a systematic education program for our employees with an aim to nurture
challenging future talents. In line with the education system, we provide leadership training tostrengthen teamwork and job training to sharpen work competency.

We support our employees to upgrade their work competency and immersion in education in
non-face-to-face situations through Multi-Campus, an online education platform. Employees
can easily take training courses by offering mobile learning programs or reference books foreach lecture. On top of that, we provide detailed programs in about 50 fields, giving employees
the freedom to take the training they want without time and space constraints.

Human Resources Development Programs

Training for Employees

Talent Development System

ProgramPurpose

Details• Sharing business strategies and performance by field

Sharing management
strategy and performance

2019

2020

2021

Hour

6,752

6,543

7,146

increasing the scope step by step

Training hours per person

Hour

11.46

11.07

13.38

through continuous expansion of training

Training costs per person

KRW

214,620

207,966

269,060

Average satisfaction level for training

Score

4.18

4.11

4.48

• Raising understanding of the company's strategic directionlevel through mandatory training for team leaders

Reinforcing leaders'management capabilities

Unit

Total training hours• Prioritizing domestic and Southeast Asian sales and gradually• Intending to develop self-leadership at the team member

Leadership
Training

Classification• Focusing on change management and team member

improvement• Recognizing the need for change management and applying

methods for each process to the field• Understanding the role of leaders to enhance effective

teamwork

Sharpening common job
competency

Job
Training

Providing education tailored
to demands• Conducting in-house basic competency building training forcommon jobs

• Selecting high-level courses after conducting an employee

training demand survey• Expanding the training based on the results after running an
open session for all employees• Requesting to sharpen expertise in key tasks such as sales,

Improving job expertise(to be implemented)

marketing, and development• Conducting pilot training focusing on sales and marketing in

2021• Expanding to various jobs after conducting a pilot training foreach job

Education on Work-from-home

In response to the non-face-to-face work style derived from the COVID-19 pandemic, we
provided training that improves efficiency for employees who are not accustomed to working
from home. We posted a video on YouTube named ‘Top 10 Techniques for Working from
Home Enabling Smarter Work,’ introducing useful tips and helping our employees to performtheir work effectively from home as if they were working at a company. We are reviewing thecontinuous application of the working-from-home system to reduce the pandemic risk andallow our employees to take care of their family members as needed.

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Creating a Healthy Workplace
Work-Life Balance

LocknLock has a variety of support systems in place tocreate a work environment in which our employees canwork autonomously and grow continuously. With an aim toincrease work immersion and maintain work-life balance,
we have prepared a flexible working system and PC-OFF
system. In addition, we operate an alternative vacationaccount system and a sandwich vacation system in orderto encourage employees to use their vacation freely. The
refreshment vacation and vacation expenses are offeredto employees every five years of service, giving ample
opportunities to recharge.

Family-friendly Business Certification

Our exemplary family-friendly management system isimplemented to support the work-life balance of ouremployees. LocknLock was certified as a family-friendly
company by the Ministry of Gender Equality and Family in
2013. To ensure that all employees and their families are
happy, we provide family-care leave and leaves related toinfertility and fetal examination.

Our ESG Topic

Appendix

Operation of Customized Welfare MallWe run a welfare mall as an optional welfare system for
employees in Korea. Employees can use the points weprovide that can be converted into cash based on theyears of service. Points can be used in shopping andaccommodation through the welfare mall or offline storessuch as convenience stores, cafés, and supermarkets.
Welfare Policy for Employees

69

LocknLock 2022 Sustainability ReportWelfare Expenses
Classification

Unit

2019

Annual welfare KRW
benefits in total million
Averageannual welfare
benefits per
employee

KRW

2020

2021

3,475

3,722

4,210

5,899,516

6,298,106

7,883,961• Flexible working system

AutonomousWork
Environment• PC-OFF system• Free use of vacation• Freedom of wearing any attire• In-house café operation• Refresh vacations and vacation expenses• Reward for work-related invention

Personal
Growth Support• Health check-up• Mentoring system• In-house training• Work-related books• External conference

Promoting Health of Our Employees

So as to make sure our employees lead a healthy life, we
provide a comprehensive health check-up service to all
employees once a year.

LocknLock Trusted by Stakeholders• Children's education expenses• Congratulatory events and condolences

WelfareSupport• Discount on company mall
• Fitness expenses• Resort• Holiday gifts• Breakfast

Use of Parental Leave
Classification

Male

Unit

PersonNo. ofemployees
Female Personusing parental
leave
Total Person
Rate of employees
returning to work afterparental leave%

No. of
Male Person
employees
working more
Female Personthan
12 months
Total Person
after return
Rate of employees
working more than
12 months after return

%

2019

2020

2021

0

4

4

5

11

11

5

15

15

100

100

100

0

3

4

4

10

11

4

13

15

80

87

100

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Appendix

LocknLock 2022 Sustainability Report70

04 Labor Relations and Organizational Culture
Win-Win Labor-Management RelationshipOperation of Grievance-Handling System

LocknLock established a labor union in 2021. As of December
2021, 60% of our employees joined the labor union. In
October, during the six-month negotiation period, we reached
an agreement on a total of 125 items, including improvements
in welfare benefits and reform of the personnel system.
The first collective agreement was also signed. The Labormanagement Council meeting is held once a quarter, a total offour times a year, to discuss safety, health, and compensation
issues. Going forward, we will create a healthy corporate
culture through cooperation between labor and management.

We have a grievance handling system in place where
employees in difficulties can consult and report grievances.
Our employment regulations notably stipulate the prohibitionof workplace harassment and sexual harassment.
Employees can file a report through the internal Help Desk,
and the informant's identity and the grievances' details arestrictly kept confidential. The reports we receive are informed
to the Audit Committee after a preliminary investigation. If
the facts are confirmed, the HR team sends them to the
Personnel Committee, followed by sharing the results of thecorrective actions in a transparent manner.

Receipt
Receiving the grievancesat the Help Desk

Confirm
Checking the truth of thecase and reviewing themeasures

Labor-Management Consultation and Resolutions• Proceeding of the general shareholders’ meeting

Grievance Handling Process

Grievance Handling• Announcing the regular promotion deliberation and

COVID-19 crisis• Giving the Excellence Award in 2020 and OnnuriAward in the second half of the year
• Changing the consumer members of the Cooperation
Promotion Committee

Receipt of Grievances from
Employees

Handling of Grievancesfrom Employees(Unit: case)(Unit: case)

6

1Q

6

employees to be promoted• Providing special incentives to overcome theTaking the measures tohandle the case

3Q

• Requesting the appointment of labor union worker

members• Appointing the different worker committee members

4Q

4

3rd quarter of 2021 and listening to the opinions of theworker members• Discussing the direction of the operation for the
Cooperation Promotion Committee

4• Sharing the timeline of major personnel changes in the

2Q

and appointing auditors• Explaining the agenda presented by worker members• Relocating of the Seoul officeHandling

Inform of Results
2019

2020

2021

2019

2020

2021

* Grievance handling system (Help Desk) has been operated since 2020

Informing the handling
results of the case to theinformant

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Appendix

LocknLock Newsletter

How to Work Smart and Well Project

We are not only focusing on the competitive edge of
products and services but also on creating a culture ofmutual respect and sharing the thoughts among theemployees working together. The principle of working at
LocknLock, called ‘How to Work Smart and Well’, wascreated by a total of 933 employees from 7 countries
over 144 days, contemplating the ways to respect, work
together, acknowledge, and listen to each other. By letting
our employees establish the principles and culture, we
strived to reorganize the organizational culture to a bottomup, breaking the existing vertical organizations. This wasproduced into a video so that it could be applied to actual
work and disseminated to all our employees.

We regularly publish an internal newsletter to sharecompany-wide notices and the news regarding otherdepartments. Newsletters containing essential information
are produced casually, taking a role as a channel toexchange creative ideas and promote communication
among employees by providing small gifts through quiz
events.

LocknLock 2022 Sustainability Reportin that it is recognized by colleagues who work together.
Its system is to recommend colleagues who have actively
and creatively innovated work. In 2021, we awarded 12
employees in the ‘Small But Highly Innovative’ area and 44
employees in the ‘Small But Firm Will’ area.

Small But Highly Innovative & Small But Firm
Will Systems

We give awards in the areas of ‘Small But Highly Innovative’&‘Small But Firm Will’ to reward employees who practiced
the company's core values and to encourage theircontinuous improvement of work performance. ‘Small But
Highly Innovative,’ introduced in 2018, has established as
LocknLock's unique culture, and it is all the more meaningful

Understanding Corporate Strategies andSharing Ideas

1st

Respect each other no matter
grade/gender/background/nationality.

2nd

Share the same goals eventhough we have different roles.

3rd

71

Think about ways to find solutions
rather than say ‘this doesn’t work.’

4th

Respect ‘differences’ rather thansay ‘it’s wrong.’

5th

Freely share thoughts and listenwith an open mind.

LocknLock shares business status and strategic directions
with employees while gathering opinions to reflect them into
our management or product strategies. The representative
cases include adopting the idea of an employee who
proposed the sale of a large-capacity water bottle to thepeople staying at home, whose population has increased
due to the COVID-19 pandemic, and operating an inhouse experiential group for employees to have handson experience of the main product first. We haveencouraged communication with employees so that they
can understand our vision and strategies. Based on thefacilitated engagement of employees, we also raised theunderstanding of products and reflected their feedback on
products.

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LocknLock
Growing Together
with Society

Context
Companies cannot grow without stakeholders suchas customers, suppliers, or local communities. The
development of local communities has a positive impact on
corporate business operations, and ultimately leads to theirpotential growth. Accordingly, companies should fulfill their
responsibilities and duties as the members of society, andgo hand in hand with various stakeholders to move forward
beyond profit generation.

Our Approach
As we are well aware that we may have a far-reaching
impact on local communities as a corporate citizen, we arecarrying out social contribution activities in both domestic
and overseas business sites tailored to local characteristics.
In China, Vietnam, and Thailand, we have helped local
people overcome the COVID-19 pandemic through a wide
range of activities including free lunch box offerings.

496

KRW
million invested
in social contribution

Our ESG Topic

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Appendix

LocknLock 2022 Sustainability Report72CEO Message

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LocknLock 2022 Sustainability Report

Appendix

73

01 Shared Growth with Suppliers
Principles of Fair Trade

Shared growth promotion System

Principles of Fair Transactions with Supplier

Our Ethical Principles stipulates that LocknLock pursues coprosperity with all our suppliers, based on which we aim
to strengthen our partnership underpinned by trust andcollaboration. To this end, we follow our fair set of standards
for the selection of suppliers in a rational and objective
manner. And all transactions with suppliers come after
preliminary discussions with them, and we make sure thatthe trades are conducted on a fair and equal basis. And we
do not allow any form of abuse of power.

Shared Growth Promotion

expertise• Entering global markets
together• Communication with
suppliers

Shared Growth promotion System

In an order to grow together with suppliers, and sharpen ourcompetitiveness, we have established a fair trading orderand lent support to them. The formulation of the strategies
for fair transactions is also part of the effort to embed fairand square subcontracting and to promote collaboration formutual growth. Staying true to the strategies, multifaceted
efforts are being made to spread a culture of shared growththrough active communication.

Scaling up suppliers’ volume• Sharpening suppliers’

LocknLock

Stepping
upcompetitiveness

Shared growth

Boosting
sales

Suppliers• Enhancing quality• Strengthening

technology prowess

Fair transactions

Improving quality• Raising productivity

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Appendix

74

02 Local Community Contribution Activity
Social Contribution Activity for theEnvironment
Campaign to Promote Multi-use Container
Usage

In order to usher in a zero-waste culture, we are making
various efforts to promote the usage of multi-use containers
instead of single-use ones. Our eco-friendly campaign
focuses on the promotion of the usage of tumblers andmulti-use containers instead of disposable cups andpackages.
• Single-use Cup LOCK Campaign

Our core value lies in our accountability for the environment.
To realize our value, we carry out a resource circulation
campaign, aiming to reduce single-use cup consumption
by encouraging employees to use tumblers. Three years
into the campaign, we saw the remarkable achievement of
reducing disposable cup usage by 323,000 at the Seoul
Headquarters, and about 87% of our employees agreed on
the discontinuation of single-use plastic straw provision.

▲ ‘Single-use Cup LOCK Campaign’ for single-use cup reduction

Multi-use cup usage promoted through‘Single-use Cup LOCK Campaign’(July 2018)

323,000 disposable cups reduced

Ban imposed on disposable cup& straw usage within the office(May 2022)

CEO Message

Company Overview

Business Overview

Our ESG Story• Cherished Container Challenge

LocknLock is committed to embedding a culture of multiuse container usage into citizens, local communities, andlocal shops. We took part in the campaign, ‘cherishedcontainer collection’ hosted by the Korea BroadcastingAdvertising Corporation (KOBACO) as a sponsor company,
garnering the strength to vitalize the usage of multi-use
containers. Going forward, the efforts will be made to
identify opportunities to collaborate with public institutions or
eco-friendly startups to have green container usage culture
permeate every corner of our daily life.

Our ESG Topic

LocknLock Trusted by Stakeholders

AppendixCollege Student Supporters Green Mate

LocknLock 2022 Sustainability Report75

Global Plogging Day

Green Mate program is also part of our effort to engage
college students who belong to generation MZ in driving
an eco-friendly culture. In 2021, the selected green mates
took on the roles of disseminating a culture of zero waste
and tumbler use on social network services, and also joined
the plogging and environment-friendly film making. With the
emergence of the COVID-19 pandemic, we converted thisprogram to non-face-to-face form. In the years to come, wewill find ways of delivering these eco-friendly programs in aconstant manner in line with this non-face-to-face era.

We have held ‘Global Plogging Day’, our eco-friendly initiativethat involves jogging and picking up trash in the parks,
beaches or streams adjacent to our domestic and overseas
business sites. This cleanup campaigns in local communities
enable us to fulfill our social responsibilities and also toreinforce the bond among our employees. The satisfactionlevel of the participants stood at 97%, and about 94% ofthem wanted to join this movement next time. So we areconsidering the addition of a campaign, such as ‘disposable
item-free picnic,’ following the plogging day event.

▲ Green Mate Activity▲ Global Plogging Day▲ Cherished Container Challenge• Various Activities for Global Multi-use

Container Usage

Our endeavors are also made in foreign countries to raise theirawareness of environmental protection as well as to promoteearth-friendly lifestyle. In detail, we have carried out diverse
events to donate items, such as street campaigns or zerowaste lunchbox provision, with the aim to deliver messages
regarding the gravity of the environment. By doing so, we haveplayed a contributing role in creating opportunities to protect
the environment in our everyday life globally.

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report76

Social Contribution Activity for Society
Pandemic and Natural Disaster Assistance

LocknLock provided goods and financial assistance withgratitude for medical and emergency workers who madepainstaking efforts to overcome the COVID-19 pandemic at
the forefront. In 2021, we offered the medical staff drinks in
500 ‘cool tumblers’ in the summer season.
As part of the support for local residents damaged by forest
fires in Donghae, Gangwon-do and Uljin, Gyeongsangbukdo, we donated KRW 480 million worth of kitchen andhousehold items to help them recover their daily life.
Given their situation where they were living in temporary
accommodation centers since their houses were burnt,
we selected and donated the most urgently needed items
in collaboration with Donghae-si, Ulgin-gun, and World
Vision. The selection included food containers for sanitarypreservation, cabinets, hangers and trash cans for efficientspace use. These items were delivered to 600 households
in Donghae and Uljin.

EROUN BOX, Complimenting Citizens
Benefiting the World

Staying true to our business philosophy, ‘ Benefitting
the World,’ we have put in place a program aimed at
discovering good citizens and rewarding them. Based on
our core values, we select good practices in two categories,‘courage to protect the environment’ and ‘courage to protect
humans,’ and deliver the ‘EROUN Box’ consisting of ourgoods. We continue to deliver this movement down theroad, hoping that we have a good and positive impact on
the society through this campaign.

EROUN BOX delivered to citizen Lee Sung-su

LocknLock’s Goods Donation

We are making every effort to contribute to the environment
by recycling items, and share our love with neighbors bydonating the proceeds from sales. In 2014, we signed anagreement with Beautiful Store and have donated items
on a monthly basis. 180,000 items on average have beenannually donated since then. We have also donated goods
to Goodwill Store, the welfare foundation where persons
with disability select and sell items by themselves. In
addition, we non-regularly hold in-house bazaars to circulate
and reuse items that are necessary for somebody else.

▲ Beverageware donation for the summer season

Our focus is also on educational support for children
in foreign countries. In an effort to improve learning
environments for children in poverty regions, we operate‘Hope Process’ project and ‘LocknLock Hope Computer
Class.’ Around 3.5 million yuan (KRW 650 million) were
donated in the form of funds for global leadership to Yanbian
University in China. On top of that, we run a project toreplace street lights in poor rural regions in the western partof China in collaboration with our representative model,
Gong Jun, thereby eliminating their inconvenience when
passing at night and improving their safety.

LocknLock Trusted by Stakeholders

Appendix

Support for Ukraine War Refugees

We provided humanitarian assistance for war refugees in
Ukraine. In 2022, we delivered approximately 95,000 daily
necessities and hygiene items (KRW 450 million worth ofitems), such as blankets or towers, to the refugees throughthe Polish Red Cross. We joined our hands to humanitarianassistance for overseas countries under dire circumstances.
In line with our management philosophy that puts people
first, we will provide assistance in a persistent manner.

LocknLock 2022 Sustainability Report

2019

Global Sharing

As a global company, LocknLock has lent support to thevulnerable with a variety of donation activities overseas.
In detail, we provided goods for the marginalized children
in foreign countries while donating items to Vietnam inpartnership with the Red Cross Society. In China, wemade donations with Shanghai Charity Foundation. Goingforward, we continue to give local communities a hand withsharing in nations where we operate including Thailand andIndonesia.

77

Investments in Social Contribution (Unit: KRW million)

496

Support for Global Future Generations

Our ESG Topic

2020

2021

0.10

Ratio of Donations to Sales (Unit: %)0.09

Our ESG Story

533

Business Overview

0.11

Company Overview

467

CEO Message▲ Daily necessities and hygiene items provided for Ukraine war refugees

2019

2020

2021

80

Governance82

EthicalManagement

84

Materiality
Assessment

86

Communication
with Stakeholders

LocknLock
Trusted by
Stakeholders

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report80

GovernanceInternal Control System

Internal Control Procedure

LocknLock has established and operated a global internal control system led by the Audit Committee with an objective toestablish a sound internal control culture and practice ethical management. In Korea, we operate an internal accounting
management system for the financial sector, while overseas subsidiaries plan to introduce them in 2023, aiming for a moreadvanced operating system.

Report of plans
for the Audit
Committee

Change control

Design of work
process

Improvement of
weak areas

Operation

Report of results
to the Audit
Committee

BOD

Audit Committee

South East Asia

Korea

China

Reporting

Reporting

ReportingInternal
Control
Department

Audit
Department

Business
Department
Implementing
internal control

Evaluation

Supporting andmonitoring internal
control

Monitoring

Internal audit

Independently
reviewing internal
control activities
Evaluation

CEO Message

Company Overview

Business Overview

Our ESG Story

Shareholders' Rights
Shareholder Status

A total of 67.82% LocknLock's shares are owned by
Consumer Strength, 1.09% by affiliated persons, 22.66%
by minority shareholders, and 8.43% by others.

Our ESG Topic

LocknLock Trusted by Stakeholders

Protection of Shareholders' Rights and Interests

LocknLock has adopted an e-voting system to enhance theconvenience of shareholders in exercising their voting rights.
In the convening of a general meeting of shareholders, weannounce that voting rights can be exercised electronicallyin accordance with Article 368, paragraph 4 of the「Commercial Act」 (Exercise of voting rights by electronic
method). Shareholders who own voting stock on the last
day of each settlement period can exercise their voting
rights from 10 days before the meeting to the day before
the meeting through the e-voting system provided by the
Korea Securities Depository instead of visiting the place.

Composition of Shareholders (As of Dec. 31, 2021)

81

LocknLock 2022 Sustainability Report

Appendix

Efforts to Expand the Engagement of Shareholders
Category

15th meeting

16th meeting

17th meeting

Distributing
generalshareholders'meeting---

Written vote

-

-

-

Electronic
votingRecommendationof proxysolicitation

Communication with Shareholders
Details of General Shareholders' Meeting
Category

15th meeting

16th meeting

IR Status
17th meeting

Announcement
Mar. 10, 2020 Mar. 16, 2021 Mar. 16, 2022
date
Date of generalshareholders' Mar. 27, 2020 Mar. 31, 2021 Mar. 31, 2022
meeting

67.82%● 22.66%● 1.09%● 8.43%●

Consumer Strength
Minority shareholders
Affiliated persons
OthersPeriodbetween theannouncementdate

17 days
15 days
15 days(2 weeks before the shareholders' meeting)

Notification
method for thematters related
to the generalshareholders'meeting

Electronic disclosure through the Financial
Supervisory Service and the Exchange andsending convocation notices

Target: Domestic and foreign institutional investors,
general investors, and the media
Format: Report on quarterly performance /disclosure on website
Main agendas: Quarterly performance
Date: April 26, August 3, November 15 in 2021
February 16 in 2022
Target: Domestic institutional investors
Format: Conference call
Main agendas: Business status and outlook,treasury stock purchase, and dividend policy
Date: September 10, September 13, October 15,
November 23, November 30, December 13,
December 22 in 2021
February 23 in 2022

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

82

Ethical Management

Ethics Supervisor

Ethical Principles

LocknLock has established ethical principles that serve as
standards for correct behavior and value judgment that all
employees and stakeholders must follow. We have selected
five themes; customers and shareholders, compliance andsocial responsibility, co-prosperity with partner companies,
basic ethics for employees, and compliance with ethicalstandards. We are committed to creating values forvarious stakeholders and playing a pivotal role in social andeconomic development.
Ethical principles are periodically modified in accordancewith domestic and international law revisions to reflect
the ever-changing circumstances. The internal reporting
procedure, the main updated area in 2021, defines theinternal reporting acts and stipulates personal protection
measures such as guaranteeing the informant's anonymity.
In 2021, a total of one ethical report was received.

Supervising Ethics

We annually conduct ethical audits through the internal
accounting management and reporting systems. The Audit

Committee, comprised entirely of outside directors, plays arole as an ethical management supervisory body, reviewing
the results of the operation of the internal accounting
management system and internal reporting system.

Report Types in Cyber Report Center• Receiving information from a stakeholder• Misconduct by employees• Lack of transparency in supplier selection

Cyber Reporting Center

We operate the Cyber Reporting Center where any
employees, affiliates, and external stakeholders cananonymously report violations of the Ethical Principles, unfair
business practices, unethical behaviors, and unfair tradepractices. The informant's identity and the report's content
are kept strictly confidential, and we guarantee that the
informant cannot be disadvantaged due to the reporting.
When a report is received, we check the facts and, if
necessary, take severe disciplinary action. In the case of
speculations regarding unfair or inappropriate acts, we
swiftly examine and find out the truth and share the resultsof handling the report with the informant. On top of that, we
will protect the accused from discriminatory treatment by
not disclosing the content of the report until the charges are
confirmed.

• Leakage of company information• Misuse or abuse of company assets• Other moral hazard• Improper investments in business partners

Operation Process of Internal Reporting System
Receipt of(anonymous) reports
through Hot Line

Ethics-related Reports
No. of ethics-related reports (Unit: case)2019• hot_line@locknlock.com• E-mail or postal reporting• Reviewing reported matters andFact check2020

conducting preliminary investigation• Conducting the investigation based on

the judgment of the Audit Committee

1

on
ati
uc
Ed
ics
Eth

Eth
ica
lP
rin
cip
les

Ethical Management System

2021* Hot Line for ethics-related reports have been operated since 2021

Reporting ofinvestigation results

Confirmation of report
processing result• Reporting to the Audit Committee• Giving notification to HR team andtaking disciplinary procedures• Giving feedback on the processing

result to the informant

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

LocknLock 2022 Sustainability Report

Appendix

Internalization of Ethical Culture
Pledge to Practice the Ethical Principles

LocknLock received the pledge to practice the ethical principles and the pledge to practice integrity from all employees, newemployees, as well as internal and external stakeholders, including partner companies, aiming to raise the ethical awarenessof them. This is a mandatory requirement by the ‘Act on External Audit of Stock Companies’ and the internal accounting
management system. Accordingly, the entire regular employees at all Korean business sites submit the pledge to practice theethical principles through an electric document every year.

83

100

% of Employees pledged topractice the ethical principles (in 2021)

100% of Partner companies
pledged to practice integrity (in 2021)

Ethics Education

Ethics Education(Unit: person)(Unit: %)In order to ensure transparency and consistency in accounting, we provide training on the internal accounting management
system as a compulsory course to be taken once a year for all employees and auditors of our Korean subsidiaries. This education
aims to secure reliable financial management and appropriate internal control in accordance with regulations and procedures. In
2021, 100% of our employees completed the internal accounting management system education.

OnlineEducational Program
Ethical Management 3.0:
Searching for Sincere EthicalManagement

2019

2020

2021

* Ethical education has been
provided since 2020

Performance of Ethics Education (as of 2021)
Type

414

Education on Internal Accounting Management System

Main Theme

Targetmanagement

Internal Accounting Management The concept, definition, and operation of theTraining
internal accounting management system

2020

2021

* All employees excluding the staff
on site, sales personnel, anddispatched employees

Participation Rate

Violation of Social Laws

• Choice, responsibility to customers• Preparation for the future, sincere ethical

2019

100

Participation rate of ethics
training

100

No. of employees
completing ethics training

337

LocknLock provides online ethical management education every year for all our employees, including non-regular workers, for thesake of strengthening compliance management. In 2021, the educational curriculum encouraged employees to raise their ethicalawareness by making employees present various ethical dilemmas that could be encountered in daily work. In addition to ethics
education, we provide training on personal data protection, raising awareness of the disabled in the workplace, and preventionof sexual harassment as legally required training, supporting all employees to raise ethical awareness through regular training. In
2021, 100% of our employees completed the ethics education.

All employees(including non-regular
workers)

100%

100%

No. of antitrust and anticompetition violations

Fines and settlements causedby antitrust and anti-competition(Unit: case)(Unit: KRW)

0

0

0

0

0

0

2019

2020

2021

2019

2020

2021

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

84

Materiality Assessment
LocknLock conducted a materiality assessment tofocus on and report the salient issues by analyzing thebusiness impact and stakeholder interests among various
sustainability management issues.
16 material issues were selected in 2022. We will manage
these topics identified as our material issues.

Step 1.

Composing an
Issue pool

Establishment of LocknLock’s sustainability management issue pool in line with
global initiatives, industry trends, legal system policies

Step 2.

Assessingmateriality

Analysis of business impact and stakeholder interests through media analysis,benchmarking, and internal policies

Step 3.

Identifying material
issuesStep 4.

Verifying

Methodology for Materiality Assessment
Media Analysis• Analyzing about 1,500 articles pertaining to LocknLock from2019 to February 2022

Industry Benchmarking• Three companies with excellent ESG evaluation such as MSCI

Identification of 16 highly prioritized critical issues out of 47 issues

and DJSI• Three companies leading the industry

Stakeholder Survey• Survey Period: March 2 to March 8 in 2022

• Survey Target: A total of 311 employees, including employees

in the headquarters and employees working in overseas sites

Review and final confirmation of the background of the identified material issues
and the need for responseCEO Message

Company Overview

Business Overview

Materiality Map

Our ESG Story

Our ESG Topic● Environment● Social

LocknLock Trusted by Stakeholders● GovernanceAppendix

LocknLock 2022 Sustainability Report

Material Issues

Stakeholder interest

Material Issues
Promotion of employee diversity andprohibiting discrimination

Welfare support
Prevention and management ofserious accidents
Objective performance evaluation andcompensation
Establishment of safety andhealth policies and related systems
Reduction of raw material usage andefficient use of resources

Establishment of win-win labor
management relations
Tightening of information security
and personal data protection
Responsible procurement of raw material

85

Report PageGRI Topic

p.54-59301-1~3
302-1, 3305-2, 4p.48-53

416-2
418 -1

p.60-63403-1~7403-9

p.64-71401-1~3402-1
404-1, 3
405-1~2

p.72-77414-2

p.80-83102-16405-1● Development of eco-friendly products andDevelopment of eco-friendly
products and promotion of
resource circulation

LocknLock
Keeping theEnvironment at
Our Heart

Efforts to enhance product safety

LocknLock
Satisfying
Customers

Mitigation of carbon emissions
and improvement of energy
efficiency
Human resource management
Securing of BOD expertiseand diversity● Mitigation of carbon emissions andimprovement of energy efficiency● Reduction of raw material usage andefficient use of resources

Internalization of ethicalmanagement
Safety and health educationand training

promotion of resource circulation● Efforts to enhance product safety● Tightening of information security andpersonal data protection● Establishment of safety and health policies

LocknLock
Putting SafetyFirst

and related systems● Safety and health education and training● Prevention and management of serious

accidents● Promotion of employee diversity andprohibiting discrimination

LocknLock
Bringing
Happiness to
Our Employees● Human resource management● Welfare support● Objective performance evaluation andcompensation● Establishment of win-win labor

management relations

Business impact

LocknLock
Growing Together ● Responsible procurement of raw material
with Society
LocknLock Trustedby Stakeholders● Securing of BOD expertise and diversity● Internalization of ethical management

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

86

Communication with Stakeholders
LocknLock operates channels to communicate with various internal and external stakeholders. We make our strenuous efforts to reflect the stakeholders' opinions received through each channel inour business activities and sustainability management.

Major interest
Sound governance, corporate
value enhancement, andcontinuous corporate risk
management

Communication Activity (frequency)• Business report and public disclosure(once a year)• General shareholders’ meetings(once a month, if necessary)• IR meetings

Transparent disclosure of
information, communication
on ESG data andperformance, sustainable
development of newtechnologies• Eco-friendly new materials

Social contribution
activities in and outside
Korea, job creation for theunderprivileged, eco-friendly
regional development,
corporate social responsibility,
employees' volunteer
activities• Sustainability Report (once a year)

and product development
activities (at all times)• Carbon ZERO Council(at all times)• Sustainability
management initiatives(at all times)

Academia andExperts

CustomerKey
stakeholders• Local community campaigns andvolunteering (at all times)(at all times)

groups (at all times)• Communication with the government andlocal governments (at all times)• Social contribution programs (at all times)• LocknLock website, blog

Facilitating communication
with customers, safe productquality, product and service
consultation and A/S service,consumer privacy,
understanding consumer
needs• ESG self-diagnosis of

Win-win communication,
support for win-win
cooperation with partners,
fair trade, sustainable supply
chain

and social media (at all times)• Customer consultation
channel and callback
service (at all times)• Receiving consumer
complaints (at all times)• Mobile customer satisfaction
survey (at all times)
suppliers (at all times)• Social media and press releases• Interactions with citizens and public interest

Work-life balance, personal
growth, ensuring of a safe
workplace, fair treatment, free
corporate culture

Council (4 times a year)• ‘How to Work Smart andWell’ (at all times)• LocknLock newsletter(1-2 times a month)• Grievance handlingsystem (at all times)• Safety and Environment
Day Event (once a year)

Employee

Shareholder andInvestors• Labor-Management

Local
Community

PartnerCompanies

Appendix
88

Economic
Performance

90

Environmental
Performance90

SocialPerformance93

GRI Standards Index

95

UN SDGs & SASB Index

98

Third-Party
Assurance Statement

100Awards andMembership Status

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

88

Economic Performance
Consolidated Financial Statements
Statement of Financial Position
Category(Unit: KRW million)

2019

2020

2021

Category

2019

2020

2021

Current assets

409,500

413,964542,041

Other current liabilities

9,456

10,711

33,119Cash and cash equivalents

113,980

168,623

191,773

Current lease liabilities

10,000

9,766

8,222

Deposits from financial institutions

45,26916,46525,203

Income tax payable

4,486

3,838

3,694

Account receivable

72,68972,40976,901

Deferred revenue

441

461

477

Other receivables

9,153

6,068

13,884

Refund liabilities

-

-

290

Inventories

155,602139,284

191,555

Provisions for current liability

934

1,111

631

Other current assets

11,313

10,95812,059Non-current liabilities

48,50647,76934,450

48

157

27

Defined benefit liabilities

11,98012,53917,045Current income tax assets
Assets held for sale

1,447

-

30,639Long-term other financial liabilities

2,515

740

-

Non-current assets

390,434

369,221287,683

Lease liabilities

30,276

26,451

8,116

150

1,554

227

Deferred Revenue

1,189

1,189

1,189

8,357

8,381

3,415

Provisions for liabilities

470

756

1,121

Deferred tax liabilities

Long-term deposits from financial institutions
Long-term other receivables
Long-term other financial assets
Tangible assets

4,424

1,898

2,421

2,075

6,093

6,980

268,518

245,302

197,702

Total liabilities

115,925

117,857

135,773

Controlling interests

683,861

665,162

693,793

Capital stock

27,50027,50027,500314,836

314,838

314,838

-314

-743

-15,549

Intangible assets

19,45333,57333,282

Investment in real estate

11,171

10,922-Right-of-use assets

68,75061,23642,972

Capital surplus

Other non-current assets

2,138

1,694

1,340

Capital adjustments

Deferred tax asset

7,473

4,662

6,323

Accumulated other comprehensive income-44,515-51,447-2,073

Total assets

799,934

783,185829,725

Retained earnings (deficit)

386,353

375,014369,077

Current liabilities

67,41970,088101,323

Non-controlling interests

148

166

159

Account payables

25,42325,77629,556

Total Equity

684,009665,328

693,951

Other liabilities

14,57916,35918,140Total Liabilities and Equity

799,934

783,185829,725

Other financial liabilities

2,100

2,067

7,194

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Consolidated Statement of Comprehensive Income

Appendix

Economic Value Distribution (Domestic)

Income Statement(Unit: KRW million)

Category

2019

LocknLock 2022 Sustainability Report

2020

2021

89

(Unit: KRW million)

Category

2019

2020

2021

Employee

Wages, Benefits, andeducational expenses

30,42630,792

31,730Government

Corporate taxes

1,823

3,677

-2,109Supplier

Raw and subsidiary materials
procurement expenses

69,172

59,861

68,567

Local community & NGO

Total investments in social
contribution

467

533

496

Shareholder

Dividends

-

-

-

Sales

485,993501,985

543,038

Cost of goods sold272,634

278,323

310,423

Gross profit

213,358

223,662

232,615

Selling and administrative expenses

189,587

195,049

199,455

-545

-314

641

Operating income

24,31628,92832,519Financial income

3,501

3,715

3,904

Financial expenses

1,669

1,129

973

Other non-operating income

10,337

11,75911,832Other expenses and losses

8,070

12,397

24,107

Restoration of impairment losses on other receivables

-

-19

-28

Gain on disposal of subsidiaries

-

-

1,140

Income before income taxes (loss)

28,41530,85624,287

Korea

243,540-659-2,109

Income tax expenses

12,038

19,100

8,131

China

226,545

14,907

5,332

Net income (loss)

16,377

11,756

16,156

Vietnam

163,363

7,799

1,917

Indonesia

16,0082,783

689

Thailand

11,774806

219

Germany

6,618

127

106

The US

1,805

-219

1

Lockeroom

10,187

-18

15

0

-17

-1

Restoration of impairment losses on receivables

Credit Rating
Credit Evaluation
Category
NICE Information Service

Tax Payment
Corporate Taxes (paid in 2021)
RegionIndia(Unit: KRW million)

Sales

Operating Income Corporate Taxes

2019

2020

2021

Others-136,802

7,010

1,963

BBB

BB+

BB+

Total

543,038

32,5198,131

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

Appendix

LocknLock 2022 Sustainability Report

Environmental Performance

Social Performance

Key Environmental Indicators

Key Social Indicators

Category
Unit
Sales
KRW million
Materials consumption
tonMaterials
Amount of materials reused (PP)
ton
Total
consumption
TJ
Energy(Scope2)
Consumption per unit of sales MJ/KRW million
Total emissions
tCO₂eq
GHG emissions(Scope2)
Emissions per unit of sales
tCO₂eq/KRW million
Total water consumption
m3
Consumption per unit of sales
m3/KRW million
Korea
Water
China
Vietnamm3
Indonesia
Europe¹⁾
Total dischargem3
Effluents
3
Discharge per unit of sales
m /KRW million
Total waste generation
ton
Waste
Generation per unit of sales
kg/KRW million
Waste recycling rate²⁾%
of airtight containers
Plastic collected Amountkg
collected
Discharged BOD concentration
Water pollutant³⁾ Discharged COD concentrationppm
Discharged SS concentration
Harmful chemical Amount of mold detergent andLsubstance
rust inhibitor used
Environmental
Business sites certified to ISO
management
case
14001
certification
Product sales

Eco-friendly product Sales
sales performance
Products sold(Eco container)
Non-compliancewith
Non-compliancewith environmental environmental laws and regulations
laws andFines incurred by non-complianceregulations andwith environmental laws andincurred fines
regulations

KRW million
case

2019
485,993
13,370
204
545
1,122
26,092
0.05
327,797
0.67
13,82943,400270,50212
54
179,533
0.37
4,660
9.59
100

2020
501,985
10,689241475
947
22,7500.05
348,199
0.69
12,78835,990299,365947205,106
0.41
4,537
9.04
100

2021
543,038
11,804147
462
851
22,123
0.04
342,274
0.63
11,99739,908290,3618
207,132
0.38
5,519
10.16
100

-

477

550

377
720
243

424
808
674

315
863
466

1,907

1,504

1,748

2

2

3

927

1,032

1,142

620,510 720,883 857,443

case

1

KRW

800,000

01

0 1,850,000

1) The water consumption of Europe (German entity) in 2021 will be calculated in November 2022
2) Based on the mandatory recycling ratio stipulated in the ‘voluntary agreement of plastic waste collection-recycling system’3) Autonomous management. The figure of 2019 was measured from the second quarter

90

Employee Status
Domestic Employee Status
Category
Total no. of employees
Male (%)
GenderFemale (%)
Regular employee (%)
Contract
Contract and dispatchedType
employee (%)<30 years (%)
Age
30~49 years (%)
50+ years (%)
The disabled (%)
Youth interns (%)
Diversity
High School graduates (%)
Foreigners (%)

Unit
PersonPerson(%)

Person(%)
Person(%)
Person
(%)

2019

2020

2021

589
270(45.8)319(54.2)528(89.6)

591
275(46.5)316(53.5)542(91.7)

534
254(47.6)
280(52.4)508(95.1)61(10.4)49(8.3)26(4.9)52(8.8)438(74.4)99(16.8)2(0.3)0(0)85(14.4)0(0)54(9.1)443(75.0)
94(15.9)2(0.3)0(0)125(21.2)0(0)58(10.9)374(70.0)102(19.1)2(0.4)
2(0.4)
88(16.5)0(0)※ Overseas Employee Status

Category
Total no. of employees
Dispatched
Details
Locally hired

Unit
PersonPerson

2019
3,543
98
3,445

2020
3,175
95
3,080

2021
2,875
87
2,788

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Recruitment and Retention

No. of new hires
Male
GenderFemale<30 years
Age
30~49 years
50+ years
Seoul
RegionAsan
Anseong

Category
Unit
Person

2019

2020

2021

184
70
114
22
120
42
143
14
27

Person

97
37
60
23
66
8
73
6
18

100
42
58
33
62
5
89
1
10

• Voluntary Turnover

Category
No. of voluntary leavers
Male
GenderFemale<30 years
Age
30~49 years
50+ years
Seoul
RegionAsan
Anseong

LocknLock 2022 Sustainability Report91

Parental Leave• New Recruitment

Category

AppendixMale
No. of employees using
Femaleparental leave
Total
Rate of employees returning to work afterparental leave
No. of employees working Male
more than 12 months after Female
returnTotal
Rate of employees working more than
12 months after return

Unit
PersonPersonPerson

2019

2020

2021

0
5
5

4
11
15

4
11
15

%

100

100

100

PersonPersonPerson

0
4
4

3
10
13

4
11
15

%

80

87

100

Unit
KRW million

2019
3,475

2020
3,722

2021
4,210

KRW

5,899,516

6,298,106

7,883,961

Fringe Benefit
Unit
PersonPerson

2019

2020

2021

103
33
70
11
69
23
84
4
15

92
31
61
11
66
15
81
6
5

87
42
45
18
64
5
80
1
6

• Retention

Category
Average length of service of male employees(in managing, R&D, and sales positions)Average length of service of male employees(production worker)
Average length of service of female employees(in managing, R&D, and sales positions)Average length of service of female employees(production worker)

Unit

Year

2019

2020

2021

4.70

5.37

5.90

4.33

4.75

5.56

8.55

9.20

9.39

6.78

7.91

8.51

Category
Total annual benefit expenses
Annual benefit expenses per capita on
average

Employee Education
Category
Total no. of trainees
Average hours of training per year per
employee
Educational expenses per capita

Unit
Person

2019
2,141

2020
3,019

2021
1,718

Hour

11.46

11.07

13.38

KRW

214,620

207,966

269,060

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Labor Practice

Unit
%

2019

Case

-

2020

4

-

2021

4

60
4

• Employee Communication²⁾

Unit
Case
Case

2019

2020
-

2021
4
4

6
6

2) Grievance handling system (Help Desk) has been operated since 2020
• Fair Remuneration³⁾

Category
Ratio of remuneration of women to men

Unit
%

2019

2020
82

2021
86

86

3) Pay gap generated due to job duties• Industrial Accident4⁾

Unit
Case
%
Case

2019

2020
0
0
0

2021
0
0
0

1
0.21
0

4) Zero fatalities in 2019 to 2021, contractor and suppliers included

Unit
Number

2019
1,515
181

2020
1,539
201

2021
1,560
221

2019

2020

2021

Social Contribution
Unit
KRW million
%

467
0.10

533
0.11

496
0.09

5) In accordance with ‘Political Funds Act’, we do not donate for political purpose

Quality Management
Category
Rate of business sites certified to ISO
9001
No. of products recalled

Unit

2019

2020

2021

%

-

-

33

Case

0

0

1

Unit
Case
%

2019

2020
68
69

2021
222
96

177
99

• Education on Occupational Safety and HealthCategory
Unit
No. of educational programs provided on
Caseindustrial safety and healthNo. of employees receiving occupational
Personsafety and health education

Category
Investments in R&D
Ratio of R&D costs to sales
Intellectual property rights
PatentDesignTrademark

2019
3,041
0.63
1,509
24
604
881

2020
3,677
0.73
1,574
4
626
944

2021
3,746
0.69
1,762
5
733
1,024

2019

2020

2021

Unit
KRW million
%
Case
Case
Case
Case

Data Security• Improvement in Risk Factors

Category
No. of risk factors of business sites
Rate of risk factor improvement

92

R&D

Occupational Safety and HealthCategory
Employee
Accident rate
Contractor and supplier

Category
Total no. of suppliers
No. of core suppliers

Category
Investments in social contribution
Ratio of donations to sales5⁾

1) LocknLock’s labor union was established in 2021

Category
No. of employees’ grievances
No. of grievances handled

LocknLock 2022 Sustainability Report

Supplier• Labor Union¹⁾

Category
Union membership rate
No. of Labor-Management Councils
convened

Appendix

2019

2020

2021

3

2

7

60

89

383

Category
No. of employees trained on data
security (common training)
No. of employees trained on data
security (training for managers)
No. of employees trained on data
security (suppliers’ employee)
No. of data security-related violations
No. of customer data privacy-related
violations
Total fines and penalties incurred by data
security-related breaches

Unit
Person

416

430

418

Person13

15

12Person

7

8

8

Case

0

0

0

Case

0

0

0

KRW

0

0

0

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93

GRI Standards Content Index
Topic

Index

Reporting Requirement

Universal Standards
102-1
102-2
102-3
102-4
102-5
102-6
102-7
Organizational
profileStrategy
Ethics andintegrity

Governance

Stakeholder
engagement

Name of the organization
Activities, brands, products, and services
Location of headquarters
Location of operations
Ownership and legal form
Markets served
Scale of the organization
Information on employees and other102-8
workers102-9 Supply chain
Significant changes to the organization
102-10and its supply chain
102-11 Precautionary Principle or approach102-12 External initiatives
102-13 Membership of associations
102-14 Statement from senior decision-maker
Values, principles, standards, and norms
102-16of behavior
Mechanisms for advice and concerns
102-17
about ethics
102-18 Governance structure
Composition of the highest governance102-22
body and its committees
102-23 Chair of the highest governance body
Nominating and selecting the highest
102-24governance body
Highest governance body's role in102-32sustainability reporting
102-35 Remuneration policies
102-36 Process for determining remuneration
102-40 List of stakeholder groups

Page

Additional data

Reportingpractice

91
22
95-97
100
4-5

Seoul Head Quarters
relocated (May 2022)

82
82
42-43
44-45
42
42
45
45
86

102-41 Collective bargaining agreements

92

102-42 Identifying and selecting stakeholders
102-43 Approach to stakeholder engagement102-44 Key topics and concerns raised

86
86
86

Index

Reporting Requirement

Entities included in the consolidated
102-45financial statements
Defining report content and topic
102-46
Boundaries
102-47 List of material topics

6
10-17
6
6, 9
81
6-17
6
92

Topic

ESG TF

100% of employees
covered by collective
bargaining

Page

Additional data-

Business report

84-85
85

102-48 Restatements of information-

102-49 Changes in reporting-

102-50 Reporting period
102-51 Date of most recent report

About this report-102-52 Reporting cycle
Contact point for questions regarding
102-53
About this report
the report
Claims of reporting in accordance with
102-54
About this report
the GRI Standards
102-55 GRI Index
93-94
102-56 external assurance
98-99
Explanation of the material topic and its
103-1
Boundary
Management
22, 32, 40, 48,
Management approach and its
103-2
approach54, 60, 64, 72
components
103-3 Evaluation of the management approach
Topic-specific Standards)-Economic Disclosures (GRI 200)
Economic
Direct economic value generated and
201-1
89
performance
distributed (EVG&D)
Indirect
Infrastructure investments and services
economic
203-1
74-77, 92
supported
performance
Communication and training about anti205-2
83
corruption policies and procedures
Anti-corruption
Confirmed incidents of corruption and205-3
82
actions taken
Legal actions for anti-competitive
Anti-competitive
206-1 behavior, anti-trust, and monopoly
83
behavior
practices

1st reportpublished in 2022
1st reportpublished in 2022
1st reportpublished in 2022
Annually reported

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Reporting Requirement

Page

Topic-specific Standards)-Environmental Disclosures (GRI 300)
301-1 Materials used by weight or volume301-2 Recycled input materials used
Materials
Reclaimed products and their packaging
301-3
materials
302-1 Energy consumption within the organization
Energy302-3 Energy intensity
303-4 Water discharge
Water andeffluents
303-5 Water consumption
305-2 Energy indirect (Scope 2) GHG emissions
Emissions305-4 GHG emissions intensity
Management of significant waste-related
306-2
impacts
Waste
306-3 Waste generated
Environmental
Non-compliance with environmental laws
307-1
complianceand regulations
Supplier
Negative environmental impacts in theenvironmental 308-2
supply chain and actions taken
assessment
Topic-specific Standards)-Social Disclosures (GRI 400)
New employee hires and employee
401-1
turnoverBenefits provided to full-time employees
Employment
401-2 that are not provided to temporary or parttime employees
401-3 Parental leave
Labor/
Minimum notice periods regarding
management 402-1
operational changes
relations

Our ESG Topic

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Additional data

Appendix

Topic

403-1

58, 9058, 90403-2

58, 90403-3
Occupational
health andsafety31, 9090
59, 9058, 9025, 9090

Training andeducation

59, 9090

Diversityand equal
opportunity
Human rights
management

36-39

66, 91

Local
communities

69, 91

-

403-4
403-5
403-6
403-7

55, 9069, 91Index

At least 30 days priornotice before a change
in management

Supplier social
assessment
Public policy
Customerhealth andsafety

403-9
404-1
404-3
405-1
405-2
412-2
413-1
414-2
415-1
416-2
417-1

Marketing andlabeling

417-2
417-3

Customer
privacy
Socioeconomic
compliance

418-1
419-1

LocknLock 2022 Sustainability Report

Reporting Requirement

Page

Occupational health and safety management61
systemHazard identification, risk assessment, and63
incident investigation
Occupational health services
69
Worker participation, consultation, and62
communication on occupational health and safety
Worker training on occupational health and safety
62
Promotion of worker health69
Prevention and mitigation of occupational
health and safety impacts directly linked by68
business relationships
Work-related injuries
63, 92Average hours of training per year per employee 68, 91
Percentage of employees receiving regular67
performance and career development reviews
Diversity of governance bodies and employees 42, 65, 90
Ratio of basic salary and remuneration of65, 92
women to men
Employee training on human rights policies or
65
procedures
Operations with local community engagement,
impact assessments, and development
74-77
programs
Negative social impacts in the supply chain and36-39
actions taken
Political contributions
92
Incidents of non-compliance concerning thehealth and safety impacts of products andservices
Requirements for product and service
35
information and lab
Incidents of non-compliance concerning
product and service information and labeling
Incidents of non-compliance concerningmarketing communications
Substantiated complaints concerning breaches
53
of customer privacy and losses of customer dataNon-compliance with laws and regulations inthe social and economic area

94

Additional data

No violation

No violation
No violation
No violation
No violation

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Appendix

LocknLock 2022 Sustainability Report95

UN Sustainable Development Goals
The UN Sustainable Development Goals (UN SDGs) are to be achieved by the international community by 2030 to resolve global poverty issues and realize sustainable development. We will ensurethat our corporate strategies and activities align with the Sustainable Development Goals aiming to contribute to future-oriented development. In promoting them, we will also protect the environmentand consider social and economic growth.

UN SDGs

LocknLock’s Main Activities• Setting the management process of chemical substance

Goal 3. Ensuring healthy lives for all and promoting well-being• Non-use of EU REACH Substances of Very High Concern (SVHC)• Disclosure of the key materials of main products on official website• Securing safe workplace

Goal 5. Achieving gender equality and empowering women and girls

Goal 7. Ensuring sustainable energy for all

Goal 8. Pursuing constant, inclusive and sustainable economic growth together withproductive full employment and decent jobs

Goal 12. Establishing sustainable consumption and production patterns

Goal 13. Implementing urgent action to confront climate change and its impacts

Goal 16. Promoting peaceful and inclusive societies for sustainable development
and judicial system accessible for all and building effective, accountable and inclusive
institutions at all levels• Securing diversity in governance by appointing the female non-executive director• Fair recruitment and ensuring diversity in employees• Increasing the proportion of renewable energy to 30% by 2031
• Introducing the office energy efficiency system by 2022

• Securing Fair recruitment and employee benefits• Enacting code of conduct for business partners in accordance with international human rights standards suchas ILO and RBA• Prohibition of all forms of child labor in the supply chain by managing ESG management of partner companies• Research on eco-friendly products and packaging materials• Promoting resource circulation through plastic upcycling• Declaration of carbon neutrality by 2050

• Establishment of strategies on GHG reduction in production sites centered on Korea, Vietnam and China• Establishment of a sound governance structure where balance and checks are available• Efficient BOD operation• Ethics and human rights management

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96

SASB Index
We take the framework of Sustainability Accounting Standards Board (SASB) to assess our economic, environmental, and social performance. The sustainability indicators that fall under the containerand packaging sectors only belong to our airtight container business while the indicators for household & personal products are limited to kitchenware.

Household & Personal Products
Topic

Water management

Product environmental, health,and safety performance

Packaging Lifecycle
Management

Environmental & Social
Impacts of Palm Oil Supply
Chain

Disclosure

Code

Page

(1) Total water withdrawn, (2) total water consumed, percentage of each in regions with High or Extremely HighBaseline Water Stress

CG-HP-140a.1

p. 90

Description of water management risks and discussion of strategies and practices to mitigate those risks

CG-HP-140a.2

p. 58

Revenue from products that contain REACH substances of very high concern (SVHC)

CG-HP-250a.1

p. 34

Revenue from products that contain substances on the California DTSC Candidate Chemicals List

CG-HP-250a.2

p. 34

Discussion of process to identify and manage emerging materials and chemicals of concern

CG-HP-250a.3

p. 35

Revenue from products designed with green chemistry principles

CG-HP-250a.4

p. 55(1) Total weight of packaging, (2) percentage made from recycled and/or renewable materials, and (3) percentagethat is recyclable, reusable, and/or compostable

CG-HP-410a.1

Discussion of strategies to reduce the environmental impact of packaging throughout its lifecycle

CG-HP-410a.2

Amount of palm oil sourced, percentage certified through the Roundtable on Sustainable Palm Oil (RSPO) supply
chains as (a) Identity Preserved, (b) Segregated, (c) Mass Balance, or (d) Book & Claim

CG-HP-430a.1

p. 28-29

N/A

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Containers & Packaging
Topic
Greenhouse gas emissions

Disclosure
Gross global Scope1 emissions, percentage covered under emissions-limiting regulations

Code

Page

RT-CP-110a.1

p. 90

RT-CP-110a.2

p. 22-27

RT-CP-120a.1

Not disclosed

Air quality

Discussion of long-term and short-term strategy or plan to manage Scope1 emissions, emissions reduction targets,and an analysis of performance against those targets
Air emissions of the following pollutants: (1) NOx (excluding N2O), (2) SOx, (3) volatile organic compounds (VOCs),and (4) particulate matter (PM)Energy management(1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable, (4) total self-generated energy

RT-CP-130a.1

p. 90(1) Total water withdrawn, (2) total water consumed, percentage of each in regions with High or Extremely HighBaseline Water Stress

RT-CP-140a.1

p. 90

Description of water management risks and discussion of strategies and practices to mitigate those risks

RT-CP-140a.2

p. 58

Number of incidents of non-compliance associated with water quality permits, standards, and regulations

RT-CP-140a.3

p. 90

Amount of hazardous waste generated, percentage recycled

RT-CP-150a.1

p. 90

Number of recalls issued, total units recalled

RT-CP-250a.1

p. 92

Discussion of process to identify and manage emerging materials and chemicals of concern

RT-CP-250a.2

p. 35

Percentage of raw materials from: (1) recycled content, (2) renewable resources, and (3) renewable and recycledcontent

RT-CP-410a.1

Revenue from products that are reusable, recyclable, and/or compostable

RT-CP-410a.2

Discussion of strategies to reduce the environmental impact of packaging throughout its lifecycle

RT-CP-410a.3

p. 28-29

Total wood fiber procured, percentage from certified sources

RT-CP-430a.1

N/A

Total aluminum purchased, percentage from certified sources

RT-CP-430a.2

N/A

Water management

Waste management
Product safety

Product lifecycle management

Supply chain management

p. 58, 90

97

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Appendix

LocknLock 2022 Sustainability Report98

Third-Party Assurance Statement
Dear Management and Stakeholders of
LocknLock
Introduction

The Korean Standards Association (“KSA”) was commissioned
by LocknLock ( “ LocknLock ” ) to perform a third-party
Assurance Engagement of ‘2022 LocknLock SUSTAINABILITYREPORT’ (the “Report”). KSA presents independent opinions
as follows as a result of feasibility of the data contained in thisReport. LocknLock has sole responsibility for content andperformance contained in this Report.

Independence

As an independent assurance agency, KSA does nothave any kinds of commercial interest in businesses of
LocknLock apart from undertaking a third-party assurance
on the Report. We have no other contract with LocknLockthat may undermine credibility and integrity as anindependent assurance agency.

Assurance Standards and Level

This Assurance Engagement followed the AA1000AS v3
assurance standards to provide Moderate Level assurance.
We checked the four principles of inclusivity, materiality,
responsiveness and impact in combination with informationcredibility of the Report. We also reviewed whether theReport content was created in accordance with the GRI
Standards.

Assurance Type and Scope

This Assurance Engagement followed the AA1000AS v3
assurance standards to provide Type 2 assurance, whichmeans that the assurance assessed the accuracy and reliabilityof the company’s statements and performance data provided
in the Report. The assurance scope is from January 1, 2021 to

December 31, 2021 and the assurance focused on systems
and activities including policies and goals, businesses andprograms, standards, and achievements of the Company’ssustainability management. While the company’s environmental
and social data as well as financial data was verified, the scopeof review concerning stakeholder engagement was limited tothe materiality assessment process.

that will increase their participation. LocknLock
has selected stakeholders including governmentand related employees, customers, partnercompanies, local communities, academia andprofessionals, shareholders and investors toreceive diverse feedbacks and opinions.
Materiality

Assurance Methodology

We used the following methods to gather information,
documents and evidence with respect to the assurance
scope.
• Analyses of articles related to LocknLock ’ s sustainability

management published by domestic media outlets• Review of management system and process used in improving

the performance of sustainability management and preparing theReport• Review of the consistency between the financial performance data
and the company's audit report/publicly announced data
• Examination of internal documents and basic materials

Assurance Results and Opinions[On an assurance principle/process level]

KSA reviewed the draft version of this Report to present our opinions
as an assurance provider. Modifications were made of the Reportcontent if deemed necessary. We were not aware of any significant
errors or inappropriate descriptions in this Report as a result of our
Assurance Engagement. As such, we present our opinions of the2022 LocknLock SUSTAINABILITY REPORT as follows.
Inclusivity

Has LocknLock engaged its stakeholders instrategically responding to sustainability?
KSA believe LocknLock is aware of theimportance of stakeholder participation and ismaking an all-out effort to establish a process

Has LocknLock included material informationin the Report to help stakeholders makeinformed decisions?
We are not aware of any significant omissions or
exclusions of data that is material to stakeholders.
We verified that LocknLock conducted materiality
assessment with issues identified from analyses
of internal and external environments andreported according to the result.

Responsiveness Has LocknLock appropriately responded to
stakeholder requirements and interest in thisReport?
We verified that LocknLock responded
stakeholders ’ needs and interests throughreflecting stakeholders’ opinions in the Report.
We are not aware of any evidence that
LocknLock’s response to significant issues of
stakeholders was reported inappropriately.
ImpactHas LocknLock appropriately monitored its
impact on the stakeholders?
We verified that LocknLock is monitoring andassessing its impact on the stakeholders byconducting an enhanced verification of its
standard business activities. Furthermore, it
has been verified that LocknLock appropriately
publishes its findings in the Report.

GRI Standards Disclosure

We confirmed that this Report was prepared in accordancewith GRI Standards Core Option. Based on data LocknLockprovided, we also confirmed a validity of the contents related
to General Standard Disclosure and Specific Standard
Disclosure.

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Universal Standards

We have verified that the Report complied(s) with therequirements of the Universal Standards of Core Option, and(have) reviewed the following disclosures:
102-1 ~ 102-13(Organizational profile), 102-14(Strategy),102-16 ~ 102-17(Ethics and integrity), 102-18, 102-22, 102-23,
102-24(Governance), 102-40 ~ 102-44(Stakeholder engagement),
102-45 ~ 102-56 (Reporting practice), 103(Management Approach)

Topic-specific Standards

We have checked the material topics identified from amateriality test process in which content to be disclosed.
We examined disclosures below:

Our ESG Topic

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Appendixdevelopment to upcycling, supporting stakeholders in various
aspects from all walks of life, including local communities,
shareholders, and the government. This report reflects the
economic impact of such activities, providing stakeholders
with information on a broader range of economic values than
the general financial information disclosed to stakeholders
and consequently helping stakeholders better understand thecompany’s ESG commitments. We hope that LocknLock
quantitatively reports the company's economic achievements
through responsible management and transparent accounting,in accordance with the global guidelines.

Environment

We present the following recommendations to help
LocknLock establish a company-wide sustainability
management strategy and respond to continuous issues ofsustainability.

LocknLock acknowledged the impact of business activities
on the environment, society, and the economy, and publisheda sustainability report in line with global environmental trends.
The company combined all environmental indicators anddisclosed them as part of its corporate social responsibility.
It also disclosed the indicators identified as material issues inaccordance with the global guidelines in this report despite
the fact that this is the first sustainability report published by
the company. LocknLock’s management of the indicators
as such is praiseworthy, as it may lead to the reduction ofenvironmental pollution and increase of social values. We
recommend that LocknLock manage its sustainable supply
chain and the indicators related to the environmental impacts of
its products; and that it sets goals for each issue; and sets up
a performance management system.

EconomySociety201-1, 203-1, 205-2, 205-3, 206-1, 301-1, 301-2, 302-1, 302-3,
303-4, 303-5, 305-2, 305-4, 306-2, 306-3, 308-2, 401-1, 401-3,
402-1, 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-9,
404-1, 404-3, 405-1, 414-2, 416-2, 417-2, 417-3, 418-1• We conducted the assurance of the indicators to determine LocknLock’s

compliance with the GRI standards based on the company's
headquarters and local plants.

Opinions and Recommendations[Performance/Issues]

LocknLock is communicating with stakeholders at home andabroad and building trust by disclosing its business activities
and ESG commitments in detail through this report. The
company is undertaking a wide range of activities with ESG
in mind throughout the entire product lifecycle, from productLocknLock published its first sustainability report in 2022
to report on its economic, environmental, and social
performance and the robustness of its governance; and to
introduce its three strategies for ESG integration, namely:“measures to put climate change into action,” “responsible

LocknLock 2022 Sustainability Report99

and safe business activities,” and “a robust governance”
─ laying the foundation for ESG in business. In an effort
to actively respond to ESG issues in the supply chainthat are taken seriously these days, LocknLock set up
an ESG management process for its subcontractors anddistributed the ethical principles of LocknLock and the codeof conduct for subcontractors, conducting an evaluationof subcontractors’ ESG commitments, which is quite
remarkable. It is also noteworthy that the company organizeda relevant body in accordance with the tightened regulations
on occupational safety, including the Serious Accidents
Punishment Act; and expanded the occupational safety
and health policy to include its subcontractors as well. We
suggest that LocknLock take the safety and health businessactivity to the next level by building a world-class business
management system ─ and obtain the occupational safety
and health management system certification (ISO 45001)
for each plant including the headquarters.
June 2022
Myung Soo Kang
KSA Chairman & CEO

The Korean Standards Association (KSA), established as a special
corporation in accordance with the Law for Industrial Standardization in 1962,
serves as a knowledge service provider that distributes and disseminates
such services as industrial standardization, quality management, sustainability
management, KS certification and ISO certification. The KSA is committed
to the sustainable development of Korean society as an ISO 26000 nationalsecretary, certified GRI training partner, AA1000 assurance provider, KSI(Korea Sustainability Index) operator, and UN CDM DOE (development
operational entity), and as an assurance provider of the Korean government’s
greenhouse gas energy target management system.

CEO Message

Company Overview

Business Overview

Our ESG Story

Our ESG Topic

LocknLock Trusted by Stakeholders

AppendixAwards History

LocknLock 2022 Sustainability Report

Membership Status

AwardsHost Institution

Date of Award

Korea Listed Companies Association

2019 Korea Brand Power Index (K-BPI) (No.1)

Korea Management Association Consulting

Mar. 2019

Korea Plastic Single Material Association

2019 China Brand Power Index (C-BPI) Golden Brand Award

Chnbrand

Apr. 2019

Korea Chamber of Commerce and Industry

2020 German Design Award (winner & special mention)

German Design Council

Aug. 2019

Korea Fire Safety Institute2019 Top 100 / Top 10 Reliable Brand for Vietnamese Consumers

Consumption Advisory Magazine

Nov. 2019

Korea Electric Engineers Association

2019 World Class Product of Korea

Ministry of Trade, Industry and Energy

Dec. 2019

Korea Mech. Cons. Contractors Association

2020 iF Design Awards

iF International Forum GmbH

Feb. 2020

2020 German Red Dot Design Award (winner)

German Red Dot Design

Mar. 2020

2020 Korea Brand Power Index (K-BPI) (No.1)

Korea Management Association Consulting

Mar. 2020

2020 China Brand Power Index (C-BPI) Golden Brand Award

Chnbrand

Apr. 2020

2020 International Design Excellence Awards (winner)

Industrial Designers Society of America

Jun. 2020

2020 Korean Standard Well-Being & Environment Index (KS-WEI)(No.1 in the kitchen airtight container area)

Korean Standards Association

Jul. 20202021 German Design Award (Winner)

German Design Council

Aug. 2020

2020 World Class Product of Korea

Ministry of Trade, Industry and Energy, Korea TradeInvestment Promotion Agency

Dec. 2020

2020 Top 100 / Top 10 Reliable Brand for Vietnamese Consumers

Consumption Advisory Magazine

Dec. 2020

Progressive Housewares Award 2020

Progressive Housewares

Dec. 20202021 Korea Brand Power Index (K-BPI) (No.1)

Korea Management Association Consulting

Mar. 2021

2021 German Red Dot Design Award (winner)

German Red Dot Design

Mar. 2021

2021 iF Design Awards

iF International Forum GmbH

Apr. 2021

2021 Korean Standard Well-Being & Environment Index (KS-WEI)(No.1 in the kitchen airtight container area)

Korean Standards Association

Jun. 2021

2021 K-Design Award

DESIGNSORI CO.,LTD

Aug. 2021

2022 German Red Dot Design Award (winner & special mention)

German Design Council

Oct. 2021

2021 World Class Product of Korea

Ministry of Trade, Industry and Energy, Korea TradeInvestment Promotion Agency

Dec. 2021

2022 German Red Dot Design Award (winner)

German Red Dot Design

Mar. 2022

2022 Korea Brand Power Index (K-BPI) (No.1)

Korea Management Association Consulting

Mar. 2022

2022 iF Design Awards

iF International Forum GmbH

Apr. 2022

2022 Korean Standard Well-Being & Environment Index (KS-WEI)

Korean Standards Association

Jun. 2022

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