WEMADESUSTAINABILITYREPORT 2022

02

Executive Summary

Range of the Report· This report is the first sustainability
report that lays out Wemade’s ESG
management performance andplans. Wemade plans to publish asustainability management report eachyear to transparently disclose its ESG
management strategy and future goals
and use it as a communication channel
with stakeholders.

· Financial Report: The financial report
was created based on consolidated
financial statements in accordancewith Korea International Financial
Reporting Standards (K-IFRS).
· Non-financial Report: The non-financial
report was prepared based on thereports of Wemade and its 7 major
subsidiary companies. Environmental
information was prepared based on
Wemade and its 6 major subsidiaries
located at Wemade Tower.

Criteria for Writing the Report· This report follows the standards set
by the Global Reporting Initiative (GRI),
an international organization that hasdeveloped Sustainability Reporting
Guidelines.
Reporting Period

ABOUT
THIS REPORT· This report covers the period fromJanuary 1, 2022, to December
31, 2022, but also includes majorachievements of the Company up to
April 2023.

( Contents outside above range of the report aremarked by comments or additional information.)

Verification of the Report· The reliability of the report is ensured
through third party verification by
the Korea Management Certification
Authority, an independent verification
agency. Independent report on theverification is included on page 81.
Inquiries About the Report· Contact: ESG Team· Address: 49 Wemade Tower,
Daewangpangyo-ro 644beon-gil,Seongnam-si, Gyeonggi Province· Email: esgteam@wemade.com· Website: www.wemade.com

03

CONTENTS

04

INTRODUCTION

1

05

CEO Message

Hello, I am Chang Hyun-guk, CEO of Wemade.
Wemade is a company that has been bringing the joy of playing games
to our customers for the past 20 years, and now, we are taking on
various challenges to build the WEMIX ecosystem, which is a digital
economy platform that will ensure continuous growth through theconnection of games and blockchain.
In October 2022, we officially launched our new mainnet, WEMIX
3.0, which is the culmination of our blockchain technology, and it
was followed by the launchings of WEMIX.Fi’, a decentralized financeplatform that offers a safe and secure transaction and conversionof our own stable coin ‘WEMIX$’; ‘WEMIX PLAY’, a global blockchain
gaming platform; and ‘NILE’, a blockchain-based platform in whichuser can create and manage various decentralized autonomous
organization projects at art exhibitions and concerts. WEMIX
experienced a range of difficulties in the process, but it has been listed
on many markets inside and outside of the country while establishingitself as the foundation of the WEMIX ecosystem.
In addition, Wemade is responding to the rapidly changing global
business environment by committing itself to promote ESG
management as the foundation for our innovative business befitting its
status as the leader in the blockchain gaming platform market. Wemade
created the ESG Committee in 2021 to put together working groups
dedicated to various ESG activities designed to practice and internalize
ESG management. Wemade set up a few ESG promotion strategies thatreflect our essential ESG promotion value of “sustainable growth andcreation of a future ecosystem”. They are as follows.

First, we are committed to reducing our environmental impact. We
will identify areas of environmental impact within our business to findmeasures to minimize our environmental footprints and continuously
manage our energy use and greenhouse gas emissions. We will also
encourage all our employees to practice climate action and strengthen
cooperation with our stakeholders in this matter.
Second, we will strive to support future generations and expand
the ecosystem. We will actively support the growth of our business
partners including small and medium-sized companies, while
supporting the production of future global leaders by expanding
our support for human resource programs at local communities andeducational institutions.
Third, we will establish and operate transparent governance. We
will expand communication with stakeholders and strengthen thetransparency and reliability of the board of directors. We will also
promote ethical management activities and ensure transparency in
information disclosure.
You can rest assured that, as a blockchain company, Wemade
will continue to increase management transparency and fulfill
our social roles and responsibilities for sustainable growth.
Thank you for your continuous support and encouragement for
Wemade.

Chang Hyun-guk,
CEO of Wemade

06

Company Overview
About Us1)

As of 4Q 2022

Major Subsidiaries

3)

Company
Name

Wemade Co., Ltd.

WEMADE Max

Founded

10-Feb-00

CEO

Chang Hyun-guk

WEMADE Play

Headquarters 49, Daewangpangyo-ro
644beon-gil, Bundang-gu,
Seongnam-si, Gyeonggi
Province
No. of
Employees

1,044

WEMADE M

As of 4Q 2022

Business Lines
Game Business

Online game development and publishing

Metaverse

Building a metaverse with independent
political, economic, social, and cultural systems
that project or expand the real world

Intellectual
Property License

Licensing and merchandising business basedon intellectual property rights created andaccumulated through game development andservice

NFT/FT

Digitization of assets based on decentralized
blockchain

Investment

Growth of the company and game markets
and the creation of healthy game and IT
ecosystems through discovery and investment
in competitive companies

WEMADE XRWEMADE Plus

33,796,962 shares
No. ofIssued Shares

ChaunQi IP

Capital17.2 billion KRW

Most Popular
Games

Legend of Mir 2, 3, Mir 4,
Mir M, Anipang, and manyothersThis Means War

1) Prepared in accordance with the business reporting consolidated standards
2) Prepared based on major subsidiaries
3) “Major subsidiaries” refers to the affiliated companies included in this report

07

Company Overview
History
2000

02 Wemade Entertainment is founded

2001

03 Legend of Mir 2 is officially released
11 Legend of Mir 2 is released in China

2004

12 A
 warded Special Prize and Export
Contributions Prize for the 2004 Korea
Cultural Content Export Awards, Awarded
Export Contributions Prize2006

09 Office relocated to Guro Digital Complex

2009

12 Listed on KOSDAQ

2010

02 Wemade celebrates 10th anniversary
07 Joymax is acquired2013

01 Office is relocated to Pangyo
11 Wind Runner> is awarded the Best Game<in the Mobile category for the 2013 Korea
Game Awards

12 A warded the Ministry of Science, ICT
and Future Planning Minister Prize in theBusiness category for the 9th Korea GrandInternet Awards

2014

03 Chang Hyun-guk is appointed CEO
04 ICARUS is officially released11

 warded the Outstanding Company forA
Social Contributions for the 2014 Korea
Game Awards

2017

05 ChaunQi IP is established

2018

04 Fishing Striker is released
07 ICARUS M is officially released
08 ICARUS M is awarded Game of the Month in
the General Game (Blockbuster) category

2019

03 Wemade IO changes name to Wemade ICARUS
 warded Seongnam City Honest Taxpayer
A
Commendation for the 53rd Taxpayers Day
08 Won the red dot design award 2019 (Brand &Communications category)

2020

01 W
 emade Tree’s blockchain platform WEMIX
is launched
02 Wemade celebrates 20th anniversary
06 Wemade and Wemade Service are merged11

Mir 4 is officially released

12 Birdtornado is launched.
 haunQi IP is awarded Trade Day “$10 Million
C
Tower of Exports Award”

2021

01 07 ESG Committee is created ir 4 is awarded Game of the Month in the
M
General Game (Blockbuster) category
08 Wemade’s blockchain game Mir 4 Global isofficially released
09 Wemade Tree acquires ISMS certification
for WEMIX platform11

 emade-UNICEF centers social
W
contribution agreement

12 SUNDAY TOZ is acquired

2022

01 W
 emade’s first-ever DeFi protocol KLEVA is
launched
02 Wemade and Wemade Tree are merged
03 SUNDAY TOZ changes name to WemadePlay
05 Acquired two international standards for its
information security management system,
ISO27001 and ISO27701
06 Mir M: Vanguard and Vagabond is officiallyreleasedInformation security management system
certification is acquired
07 B
 lockchain gaming platform WEMIX PLAY is
launched
08 Wemade-UNICF enters long-term
partnership agreement
10 Blockchain mainnet, WEMIX 3.0 is launched ecentralized finance platform, WEMIX.FI isDlaunched11

 AO & NFT platform, NILE, is officiallyD
released

08

Business Overview
Game
Legend of Mir IP

Genre

MMORPG

Platform

PC, Mobile

ServiceReleased in over 170 countries around the world

Legend of Mir is an online martial arts
genre MMORPG developed by Wemade. It
started service in Korea in 2001 and thenin China in November 2001, where it has
been incredibly well received. In particular,
the fictional universe, characters, andstorylines of The Legend of Mir 2, which
are reminiscent of martial arts novels,
immediately captivated Chinese users.
The game recorded cumulative sales of
2.2 trillion KRW worldwide at the timeof service in 2011. In 2020, Wemade
innovated the Legend of Mir series forboth Korea and worldwide and released
Mir 4, the MMORPG for mobile platform,in addition to the book, The Chronicles of
MIR: The Land of Dragons and the Historyof Fire and Magic .
Mir 4 hit the 3-million participants
record in just two months after taking
pre-registration before releasing in

Korea. In 2021, Wemade launched
Mir 4 Global, which was developed
by applying blockchain technology to
Mir 4. Mir 4 Global was a tremendous
success with the highest number ofsimultaneous users hitting 1.4 million. In
2022, Wemade released Mir M as partof the series, and in January 2023, a
blockchain version, Mir M Global.
Cumulative users recorded in
China in 2008

200million

Mir 4 Global records thehighest sales of

2,200billion KRW

Mir 4 Global records the highest
simultaneous users of

1.4million

09

Business Overview
Game
Anipang

Wemade Play is the developer ofAnipang, a mobile game developerthat became affiliated with Wemade in
2021. Anipang is the company’s mostpopular mobile game released in 2021,
and it is considered a national game thatheralded the popularization of mobile
games in Korea and the golden daysof the mobile game market. The gamerecorded over 40 million downloads,
and Wemade Play has been releasing
sequels of the original Anipang series,
Anipang 2, Anipang 3, and Anipang4.
Wemade Play is expanding the scope of
Anipang IP with ‘Anipang Sachunsung’and ‘Anipang Dualgo’, each catering to
the taste of different customer bases
for higher customer satisfaction andexpansion of various business lines.
Wemade Play is also introducing NFT
and One-token Multi-use policy to theglobal market, starting with blockchain

Genre

Casual Puzzle Game

Platform

Mobilegames such as Anipang Match andAnipang Coins as well as Anipang Club.
Acclaimed as the most popular games
enjoyed by men and women of all ages,
Anipang IP’s mobile games will continue towrite history in Korean-born mobile games
as they have been for the past 10 years.
Cumulative number of Anipang
downloads1)

115million
Highest daily users of Anipang2)

10million
National game, Anipang,serving the users for 3)

10years1) As of the end of 2022
2) As of September 2012
3) As of July 2022

10

Business Overview
Game
Night Crows
Genre

MMORPG

Platform

PC, Mobile (Supports cross play)

Night Crows is a new cross-platform
MMORPG from Wemade and MadEngine
built with the latest technology on Unreal
Engine 5. It was officially released on
April 27, 2023.
Set in a medieval European world, thegame features fun elements such as
the interserver-based battlefield and
PvP combat on a gigantic scale, not tomention glider-utilized actions.

Legend of Ymir(soon to be released)
Genre

MMORPG

Platform

PC, Mobile (Supports cross play)An ultra-realistic MMORPG built on
Unreal Engine 5, Legend of YMIR is a new
addition to the MIR series following theauthenticity of the MMORPG, Legend of
Mir. The soon to be released game features
reinterpretation of Nordic legend of Ymir as
its fictional universe.
The game is expected to be highly
immersive with the narrative of the Mir
series and the Nordic legend combined.

11

Business Overview
Blockchain
WEMIX3.0 WEMIX3.0
WEMIX 3.0 is a true blockchain ecosystem in itself, designed to support theupcoming dApp (decentralized app), games, DAO (decentralized autonomous
organization), DeFi, NFT, and more.

Code base
EVM compatible(Ethereum Virtual
Machine)Consensus
SPoA (Staked-based
Proof of Authority) &RAFT Leader Election

The services provided by WEMIX 3.0 include the global blockchain game platform,
WEMIX PLAY; DAO & NFT platform NILE; and decentralized finance service platform,
WEMIX.Fi. Wemade plans to evolve WEMIX 3.0 into a dominant platform thatcovers areas such as games, finance, art, sports, and entertainment to complete acomprehensive blockchain ecosystem.

Processing

Block interval

Up to 4,000 TPS

1 second

Authority
40 qualified Nodes
Committee Partners

Permanent
Minting Reward
1 WEMIX per block

Reward distribution   Nodes Committee Partner Reward 50%   ECO Fund 25%   Maintenance 25%

12Business Overview
Blockchain

We have been pursuing fun in games. Now, WEMIX PLAY is here totransform the fun of games into fun that you have never experienced
before. WEMIX PLAY is the world’s largest blockchain gaming platform,
used by millions of users around the world.

Play With Games
Life is a game, and it starts with games.
Meet games with WEMIX PLAY to enjoy new gaming experience.
Earn With Tokenomics

Own With Marketplace

The time, effort, and cost spent playing games are not consumption anymore:
In Tokenomics of WEMIX PLAY, they are investment. Experience Tokenomics thatsatisfies your gameplay and asset management preferences.

Marketplace advances the digital economic cycle through ownership and trading.
We can acquire or own NFT to become stronger and special in games, andthrough trading among other users we can expand our experience.

Boost With GameFi

Grow With Community

When you transact, invest, lend or borrow through GameFi, your game tokens become
bigger assets. GameFi is the beginning of a new game economy and the center ofdynamic blockchain economy.

PAPYRUS helps owners of the same tokens to share productive conversations.
The opinions and cooperation of verified players, holders, creators, and fans move
WEMIX PLAY.

13

Business Overview
Blockchain

NILE (NFT Is Life Evolution) is a revolutionary idea that will change the way we
see new opportunities unlocked by the organization’s potential.
Imagine a DAO-based project where businesses such as concerts, art exhibitions,sporting events, investments, and even real estate operate on a transparent
and trustless blockchain network. Neith Protocol makes it all possible. The core
protocol for NILE, Neigh Protocol is designed to enable decentralized autonomous
organizations (DAOs) to operate in a unique and efficient way for common goals.
The Neith Protocol enables DAOs to operate without a hierarchy of centralised
management entities, from recruiting members to raising funds, executing projects,
and distributing profits, all in accordance with the rules set forth in smart contracts,with all members autonomously and transparently participating in joint decisionmaking to achieve their goals.

14

Business Overview
Blockchain

WEMIX.Fi is a safe and fully on-chain DeFi platform that supports storage,exchange, borrowing, settlement and investment of crypto-assets.
WEMIX.Fi is a safe and fully on-chain DeFi platform that supports storage,exchange, borrowing, settlement and investment of crypto-assets. WEMIX.Fi
supports safe service, with each service closely connected to the stablecoin
WEMIX$, which makes it possible for community members to use the DeFi
service through various DApps in many easy ways to manage their crypto
assets. Accessibility and serviceability have been greatly improved throughthe integration of WEMIX 3.0’s own wallet and fully decentralized WEMIX DeFi
service. Community members can use DeFi services to manage crypto assets
more easily in diverse ways on blockchain networks.

15

ESG FOUNDATION

2

16

ESG Management Framework

Pursuing ESG Values
and Strategy

In pursuit of our core values of “sustainable growth andcreation of a future ecosystem through innovative businessbased ESG management”, Wemade has establishedthree major ESG strategies. They include the reduction ofenvironmental impact, supporting future generations and

ESG Strategy Framework

expansion of the ecosystem, and building and operating
responsible governance. Wemade has implemented
strategic ESG tasks through organic collaboration between
the ESG Committee, ESG team, and working groups in eachdepartment.

ESG Governance
Board of Directors

Mid-to long-term and strategic decision-making
Sustainable growth and the creation of a future
ecosystem through innovative business based ESG management

Environment

Society

Governance

Reduction ofenvironmental impact

Support future generation andexpansion of the ecosystem

Building and operating
responsible governance

ESG Committee

ESG Team

Identify environmental impact
within the business and prepare
measures to minimize impact

Collaborate with small to mediumsized developer firms and offer
partner support.

Expand communication channels
with stakeholders

Management of energy use andgreenhouse gas emissions

Nurturing talent in local
communities and educational
institutions, expanding pipelines

Reinforce transparency andreliability of the board of directors

Support global future generation

Disclosure of EthicalManagement activities andtransparent information

Encouraging employees topractice climate action andstrengthening cooperation withstakeholders

ESG overall decision-making body

Consulting bodies (working groups) for each area
Environmental
Management
Working Group

Social Contribution
Working Group

Information
Protection Working
Group

Human Rights& Compliance
Working Group

GovernanceWorking Group

17

ESG Management Framework

ESG Implementation Roadmap

ESG Performance Management System

Wemade is carrying out ESG tasks following the ESG implementation roadmap
the company has prepared for an effective implementation and promotion of ESG
management. Starting with the introductory stage of establishing the foundation for
ESG management, Wemade is committed to continue its efforts to realize Wemade’s
core ESG values through step-by-step expansion.

Wemade has established an ESG performance management system based on
the PDCA cycle and considers ESG management throughout the business, while
proactively identifying and carrying out supplementary tasks. Wemade will continue its
efforts to ensure lasting effects and internalization of ESG management in Wemade.

2027 and after· Identify supplementary tasks
according to the evaluation results

2025–2026· Adjust promotion strategy

2022–2024

Groundwork for
ESG management

Strengthening
ESG management
capabilities

Advance ESG
management
system· Reflect in the next ESG managementplan· Analysis of internal & external
demands· Select and reflect tasks for each E,
S, and G sector· Inspect and confirm the promotion
plan by the ESG Committee

Phase 3. Expansion
Phase 2. Maturity
Phase 1. Introduction· Advance ESG strategy
system· Establish ESG promotion
system· Strengthen ESG andbusiness connectivity· Identify ESG promotiontasks· Expand company-wide
ESG promotion· Lay the ground for ESG
promotion· Link KPI and ESG· Accomplish ESG promotiontasks· Internalize ESG
performance evaluation· Inspect and monitor
implementation by the ESG team
· ESG committee report· Conduct performance evaluationof promotion tasks· Disclose promotion contents
transparently· Carry out tasks according to theschedule for each task
· Implement tasks in the ESG working
groups18

Materiality Assessment

Materiality Assessment
Process
Wemade conducted a criticality
evaluation by applying the conceptof Double Materiality based on GRI’s
Materiality Principle, a global sustainable
management reporting guideline. Basedon global sustainable management
standards and peer benchmarking,
ESG issues related to Wemade wereformed, and issues were prioritized byconsidering the significant social andenvironmental impact of Wemade andthe financial impact of external ESG
issues.

01

02

03

Composition of the
ESG issue pool

Analysis of social andenvironmental impact

Analysis of financial
impactSelect Wemade’s potential ESG issue poolbased on global standards and current statusof the industry (22 issues)

Assess the social and environmental impact
Wemade makes on the outside of theorganization based on media research andstakeholder surveys

Identify issues that impact the creationof Wemade’s financial values through theevaluation of investor requirements andrelated Staff·	Media research– Research period: Jan.1 - Dec.31, 2022
– Research subject: Analysis of
Wemade-related articles– Number of research materials: 1,245 in
total· Analysis of investor interest– Investment institutions’ ESG-related
inquiries and demands– Shareholder & investor survey andresponse·	Sustainability Management
Global Standard– GRI Standards, UN SDGs,
SASB, ISSB, etc.
· Domestic and overseas issue BM· Review ESG evaluation
requirements· Review internal ESG-related issues· Stakeholder survey– Survey period: May 2 - May 8, 2023
– Survey targets: Stakeholders such as
employees, customers, partners, local
communities & NGOs, and experts– Number of participants: 181 in total·	Evaluate by dedicated staffers andexperts– Evaluated by: Staffers in charge offinance, strategy, ESG and external ESG
experts· Evaluation by Staff in charge andexperts– Evaluate by Staff in charge offinance, strategy, and ESG andexternal ESG experts

Materiality Assessment

Materiality Assessment Results
Rank Area
1

2

3

4

GovernanceSocietySocietySocietyCore Issues
Strengthening crypto assetrelated transparency
Talent acquisition andretention
Strengthening the personal
information protection system
Strengthening information
protection system

ESG Materiality Assessment Result Matrix
Impact

GRI Link

Pages on Report

Cost Profit Risk

Non-GRI

p.40-41

5.0

Reporting Issue

Material Issue

4.0

Cost Profit Risk

Cost Profit Risk

GRI 401

GRI 418

p.47, 73-74

3.0

16

20

2.0

p.36–39, 75

9

14

19

13
18

1

2

6

Outside in

19

8

7 5
11 10

3
4
12

15
17

21

22

1.0
Cost Profit Risk

GRI 418

p.36–39, 75

0.0
0.0

1.0

2.0

Inside Out

3.0

4.0

Rank

Area

Reporting issues

순위

영역

보고 이슈

5

Environment

Efficient energy use

14

Environment

Develop environmental impact reducing services

6

Society

Strengthen consumer and investor communication

15

Society

Support employee competency development

7

Governance

Strengthen the soundness of corporate governance16

Governance

Advance ethical management system and strengthen anti-corruption activities

8

Society

Improve organizational culture

17

Society

Advance human rights management system

9Society

Fair performance evaluation and compensation

18

Society

Promote social contribution while considering business characteristics

10

Society

Build a structure for ESG management of business partners and mutual growth19

SocietyEnhance diversity and inclusion

11

Environment

Response to climate change

20

Society

Strengthen social safety and health promotion system

12

Governance

Create business opportunities

21

Environment

Reduce waste emissions

13

GovernancePrepare measures to prevent money laundering and illegal transactions

22

Environment

Reduce water use

5.0

20

Stakeholder Engagement and Communication

Stakeholder
Wemade defines major stakeholder
groups as those who are directly andindirectly affected by the company’s
management activities. This includes
shareholders, investors, game users,
employees, business partners, local
communities, and NGOs. Wemademanages issues of interest for eachstakeholder in connection with thecompany’s management strategies.

Stakeholder Engagement
Wemade collects stakeholders’ opinions
through various communication
channels. We reflect the collected
needs of our stakeholders by promoting
improvement and response activities
in response to the interests andexpectations of our stakeholders. Goingforward, we will provide information
through diversified channels whilereflecting the demands of stakeholders
in major management activities.

Definition of Stakeholders and Communication Channels
Classification

Shareholder and Investor

Game user

Employee

Business partner

Community and NGO

Definition

An entity that owns
corporate stocks or
crypto assets and directly
or indirectly participatesin company management

An entity that plays
a game serviced by
Wemade or a gameonboarded to WEMIX
PLAY

Executives andemployees participating
in internal activities

A company or individualthat trades services or
products with Wemade toincrease mutual benefits

A community that seeks
mutual growth within acertain area

Main Issues· Transparent informationand performance
disclosure· Launching of a newservice· Healthy and safe
working environment· Fair trade· Corporate social
responsibility· Improvement of existing
services and higher
satisfaction· Fair performance
evaluation andcompensation· Protection of workers’
human rights· Contribution to the UN
SDGs· Service accessibility· Stronger
competitiveness· Meeting with partnercompanies &· Local community council· Establishment of asound governancestructure· Preemptive risk
management· Shareholder-friendly
management· Private information
protection· Shared growth· Transparent and prompt
information disclosure· Job security andbenefits· Creation of business
opportunities
Communication · Regular shareholders’meetingchannels andactivities· IR data disclosure· Events to have dialogue
with shareholders· AMA (Ask Me Anything)event· Game homepage· Conference· Official social media
channels· Customer Center andConsultation Center· Labor-Management
Council· In-house portal· Report center, grievancehandling channel· Counseling Center· Corporate conference

21

Stakeholder Engagement and Communication

Shareholder and Investor Related Communications
Quarterly Performance Announcement Event

General Shareholders’ Meeting and Shareholder Meeting

Every quarter, Wemade hosts a performance announcement event for investors andshareholders, in which CEO Chang Hyun-guk takes part and interacts with attendees
directly. Depending on the formality of the event, we upload the YouTube link or the
conference call recording so that shareholders and investors can review performancerelated presentations or ask questions and get answers at any time.

Wemade holds a regular shareholders’ meeting for the annual settlement terms and an
extraordinary shareholders’ meeting when necessary. In these meetings, we deliver
sales overview and the shareholders’ meeting agenda. Wemade also distributes
agenda explanation booklets to provide shareholders with the information they need toexercise their voting rights.

IR Event (NDR, Conference, Etc.)

In addition, we hold regular shareholders’ meetings with CEO Chang Hyun-guk inperson as part of the company’s effort to promote dynamic communication between
the company and shareholders.

Wemade participates in various IR events such as NDR (Non-Deal Roadshow) andsecurities company conferences both inside and outside of the country. We areconstantly expanding opportunities to correct misinformation in the market, publicize
the company’s business, and communicate with investors.

Timely Disclosure of Information
In the event of an important issue that shareholders and investors should take noteof when making investment decisions, we ensure the disclosure of such information,in accordance with relevant laws and regulations, such as the Commercial Act andthe Capital Markets Act. The disclosures are written in details with clear explanation
regarding the content so that shareholders and investors can understand what’s
happening in the company.

22

Stakeholder Engagement and Communication

Game-related Communication
Before the Game Launch

Launching of a Game and Post-launch Operation

Wemade carries out CBT (Closed Beta Test) prior to game release to collect user
feedback and reflect it to improve service quality before the official launching launch.
We strive to reflect the opinions of the future users regarding its services by expanding
communication with users starting from the development stage.

Wemade communicates the game’s operational plans and direction throughshowcases, user meetings, launch events, and Q&A sessions, providing detailed
information to help users understand the game. Following a game’s release, we
communicate with players via a variety of communication channels and continuously
gathers user feedbacks regarding the game as part of its efforts to supply superior
services.

Communication method

Details

GM (Game Master) correspondence

It offers in-game events, progress plans, and detailed explanations of the structure and participating methods. It can be considered a quarterly milestone.

CM (Community Manager) video

CMs for each game offers user guides on updates, events, and other information on the game through a video.

Patch note

When a game is updated and changed, a patch note is provided to explain users what has been improved and what errors have been fixed.

Disclosure of errors and corrections

Disclosure of all identified issues and improvements associated with a game.
Wemade records all error reports from users and all those reports are open to the public afte the launch of the game. Users can confirm the issues that have been corrected
and when they were corrected.

Official community

Users can check announcements about the game in the official community, which the company is using as its dedicated window to collect user opinions.

Community channels (round the clock
communication)

Users can communicate with GM directly through such social media channels as Facebook and Discord in addition to the official community website. We proactively reflectuser suggestions collected through dedicated bulletin boards.

Customer service center

Wemade is continuously guiding users by providing answers to frequently asked questions on the customer service center website. Users can have a1:1 inquiry session
with an administrator to make suggestions or report inconveniences, which an administrator responds to directly, answering and providing solutions.

23

Stakeholder Engagement and Communication

Digital Asset-related Communication
Communication Direction

Diversification of Global Communication Channels

We always disclose WEMIX transmission in a transparent manner, the Foundation’s
WEMIX-related policies are grounded on trust, and we communicate accurately about
service issues.

Wemade is conducting effective communication in consideration of the blockchain
industry and major user communities in each country. We make announcements for
WEMIX holders in Korean and English, as well as making them available in Chinese,
Spanish, and Indonesian as well.

Communication directions of WEMIX
Transparency

Accuracy

WEMIX-related communication channels· Medium: A media-type community mainly used in the blockchain industry

Trust· Telegram: Social community mainly used in the blockchain industry

Regular Operation of Domestic Communication Channels
WEMIX discloses its policies on WEMIX transfer and coins through publicannouncement, and all matters related to WEMIX are disclosed for all stakeholders
to check through quarterly reports. CEO Chang Hyun-guk promotes close
communication with various stakeholders through such occasions as quarterly
investor and community inquiry sessions, AMA (Ask Me Anything), meetings withshareholders and media, not to mention press meetings.

· Twitter: A social media channel where short postings are possible, mainly used in blockchain
and various countries· Facebook: A social media channel mainly used in North America and South America· Reddit: A social media channel mainly used in English-speaking countries· Weibo: A social media channel mainly used by Chinese-speaking communities· PAPYRUS: A decentralized platform built on blockchain technology

WEMIX-related communication channels
Communication content

Target Stakeholder

MethodFrequency

WEMIX transfer and coin policy

All stakeholders

Medium post disclosure

At any time

WEMIX-related issues

All stakeholders

WEMIX quarterly report

Quarterly

Investor inquiries

Investor / AMA (Ask Me Anything)

AMA (Ask Me Anything)

Quarterly

Shareholder inquiries

Investor, Community

Media Conference

QuarterlyMedia inquiries

Reporter, media

Media Conference

Quarterly

WEMIX AMA(Ask Me Anything) Conference24

Stakeholder Engagement and Communication

Digital Asset-related Communication
Improving Satisfaction through Smooth Customer Support

Operation of a 24/7 Monitoring System

Wemade operates official WEMIX platforms such as WEMIX PLAY and NILE in addition
to customer support centers for each application in order to listen to the voice ofcustomers. In addition, we are improving the quality of customer support by receiving
customer inquiries round the clock to correct incomplete responses or provide
additional answers when necessary. Wemade reviews inquiries and feedbacks on adaily basis to identify matters that can be improved or reflected in business operation
as a part of the company’s effort to provide customer support tailored to individual
customers for higher customer satisfaction.

Wemade runs a 24/7 monitoring system for Telegram and PAPYRUS communities.
Through community monitoring, we quickly and accurately determine various service
failures and issues, and when issues are identified, have a response team resolving
the issue round the clock. Wemade has a management system in place to ensure thatissues are resolved quickly and not left unattended through continuous monitoring andassignment of response personnel.

Operation of Support Center

Business Contact Mail for Investment & Proposals

WEMIX PLAY

PLAY WALLETWEMIX WALLETWEMIX.FiNILE

PAPYRUS

Customer inquiry and answering process
Inquiries received

Confirm by thecommunity center

Confirm by thedeveloper

Guide to answer

Wemade supports smooth investment and proposal communication by operating abusiness email service through wemix.com’s inquiry service (hi_there@wemix.com).
Customers can send their proposal and suggestion for marketing, investment, or listingon various exchanges. Once received, the investment and proposals are first reviewed
on a daily basis before being forwarded to the responsible department for further
review. Wemade is committed to smooth communication with stakeholders by building
separate communication channels for business contact.

25

1

ENVIRONMENT

3

26

1

SUSTAINABLE
ENVIRONMENT

127

Environmental Management

It is critical to safeguard our planet’s environment, which serves as a home for us
and future generations. Wemade strives to provide a better future for all of us byimplementing a systematic environmental management system and roadmap.

Environmental Management System
Wemade identified three strategic tasks to reduce
the environmental impact of business activities andhas been taking proactive steps to achieve them.
The three tasks are responding to climate change,
increasing resource efficiency, and strengthening
cooperation and communication with stakeholders,
all are expected to support Wemade to “contributeto the sustainable future by practicing responsible
environmental management.”

1

Wemade has also created a step-by-step
environmental management roadmap with theintention to carry out environmental management
duties consistently in accordance with the strategic
milestones.

Environmental Management Strategy
Direction

Strategic
tasks

Contributing to the realization of a sustainable future through responsible environmental management

Response to climatechangeIncrease resource
efficiency

Reinforce cooperation andcommunication with stakeholders· Establishment ofgreenhouse gas
inventory· Reduce greenhouse gas
emissions· Reduce waste emissions· Save water resources· Sustainable use ofresources· Advance environmental
management governance· Encourage employees to internalize
environmental awareness· Reinforce community responsibility

Environmental Management Roadmap
Step 1: Environmental Management GovernanceStep 2: Practice environmental management· Establishment ofa performance
management system· Introduction of eco-friendly
facilities· Environmental impact
measurement andmanagement· Member participation
activities

Step 3: Expansion of environmental management
performance· Voluntary carbon offset
activities· Scope 3 environmental
information management· Increased use of renewableenergy28

Environmental Management

Establishment of Environmental Management Policy
Wemade’s environmental management master plan
was prepared by referencing global initiatives suchas the UN Sustainable Development Goals (UN SDGs)
and the Paris Agreement on Climate Change, as well as
domestic laws such as the Framework Act on Carbon
Neutrality and Green Growth. It reflects the company’s
direction and goals of environmental management,
which include reducing greenhouse gas emission,saving water resources, and encouraging employees tointernalize environment awareness.

1

Acknowledging the corporate responsibility and the role
to solve global environmental issues such as climatechange, Wemade declares commitment towards
supporting international standards and proactive
participation in environmental initiatives.

Wemade’s Environmental Management Policies
1

Wemade contributes to the realization of a sustainable future by practicing responsible environmental management.

2

Wemade practices systematic environmental management based on an integrated and consistent ESG promotion system and an effective
environmental performance system.

3

Wemade renovates business processes and infrastructure to minimize environmental impact throughout management activities.
Wemade responds promptly to internal and external changes and practice environmental activities aligned with environmental laws andpolicies.

4

Wemade cooperates and communicates with various stakeholders such as employees, customers, and business partners throughtransparent communication on environmental management.

5

Wemade acknowledges the importance and value of environmental preservation, and encourages its employees to practice environmental
actions in their daily work and life.

6

Wemade constantly works to protect the environment by cutting back on greenhouse gas emissions and taking part in international efforts
to address the crisis brought on by climate change.

Environmental Management Risk Management Procedure

Monitoring of internaland externalrequirements
and related laws

Identification of risks andopportunities

Risk review andmanagement

Monitoring and assessing
environmental performance

Feedback

29

Environmental Management

Environmental Management Governance
Wemade has an Environmental Management Working Group under the
ESG Committee, which is fully responsible for managing the organization’senvironmental management. The working groups are consulting bodies in theirrespective departments. Major environmental management-related issues
are reviewed and approved by the ESG Committee before the group members
perform their duties. The ESG Committee then regularly reports environmental
management performance to the board of directors for review. The working
groups promote environmental management that is based on the value ofsustainability by carrying out such activities as the management of Wemade’s
environmental issues and risks, environmental data management andperformance assessment, establishment of environmental investment plans
and inspection of the implementation of the plans.

ESG Committee

ESG team

Environmental Management Working Group· Environmental issues & risk management· Environmental data management andperformance evaluation· Establishment of environmental investment plans andinspection of their implementation

1

Environmental Management Organizations and Their Roles
Department

Roles

Tasks

ESG team

Environmental management
supervising department· Establishment of environmental management promotion system· Environmental issues & risk management· Environmental data management and performance evaluation· Establishment of environmental investment plans and inspection of their implementation

General Affairs OfficeEnvironmental management
working department· Environment & energy data management· Management of overall emissions and reductions of energy, water resources, waste, and recycling· Support for environmental management-related facilities, improvement, and operation

30

Environmental Impact
Reduction Activities
Response to Climate Change

gas policies to minimize its environmental impact.

Total Greenhouse Gas Emissions (Scope 1&2)

The international community is working relentlessly
to reduce greenhouse gas emissions, and there is
emerging global agreement on how to respond toclimate change. Wemade joins their efforts and strives
to proactively reduce greenhouse gas emissions andraise employee awareness of climate change throughvarious environmental management activities.

Wemade is also encouraging all personnel to participate
in this environmental action and take action, be it small orlarge. In May 2022, Wemade launched the ‘Carbon Neutral
Challenge’ and presented 10 actions all employees cantake to reduce the emission of greenhouse gas. A total of
92 Wemade employees participated in this challenge totake those actions and verified their participation. Wemade
will continue to develop activities so that small waves
created by Wemade can proliferate and become muchbigger waves.

■ Total greenhouse gas emissions (unit: tCO2eq)

Greenhouse Gas Emission Reduction

1

Wemade is aware of the international community’s concerns about climate change
and environmental pollution. Although the impact is small, Wemade is implementing
various activities to reduce the negative environmental impact of its businessactivities and contribute to the realization of a sustainable future.

To combat climate change, Wemade controls greenhousegas emissions. The Wemade Tower’s emissions ofgreenhouse gases over the past three years was internallycalculated, and emissions were verified by third parties.
According to the report, greenhouse gas emissions in
2022 totaled 2075.22tCO2eq, and the greenhouse gas
emission intensity was 0.86tCO2eq/100 million KRW.
The total amount of greenhouse gas emissions in 2022
increased in comparison to 2021 due to the inclusion of
direct emissions from mobile combustion. Although thetotal amount of the greenhouse gas emissions increased
in 2022 as a result of business growth and expanded
scope of greenhouse gas management, Wemade iscommitted in promoting a transparent disclosure ofgreenhouse gas emissions and implementing greenhouse■ Greenhouse gas emission intensity (unit: tCO2eq/100 million KRW)*

3.39

0.86
0.76

2075.221609.57
1206.562020
Employee Participation Campaign* Based on separate sales

2021

2022

31

Environmental Impact
Reduction Activities
Analysis of Climate-related Risks and Opportunities

Climate-related Risk Factors

Wemade establishes strategic response plans based on the analysis of climaterelated risks and opportunities. Wemade intends to manage risks and opportunities
by anticipating their timing, short-, medium-, and long-term effects, as well as thefinancial implications of each risk and opportunity factor.

Risk Types

Categories

Identified risks

Countermeasures

Financial impact Timing

Transition
Risks

Policy and Legal

Increased burden due to strengthened
obligations to report emissions

Transparent information disclosure based on the establishment and management of greenhouse gas
inventorylow

short-term

Technology

The need to develop and apply carbon
emission reduction technology

Introduction of eco-friendly facilities and research on technology

highlong-termMarketIncreased energy costs

Implement energy saving tasks such as introduction of an automatic control system for individual A/C andincrease the use of renewable energyhighmedium-term

Reputation

Negative stakeholder feedback or increased
climate-related concerns

Reinforced response and achieve greenhouse gas reduction targets through Scope 3 environmental
information management

middlelong-term

AcuteIncreased severity of abnormal weather
Preliminary inspection of equipment in preparation for building damage or equipment failure
phenomena (wildfires, typhoons, floods, etc.)

middleshort-term

Chronic

Average temperature increase and yellow
dust

Improve energy efficiency and expand air pollution prevention facilities in preparation for the increase incooling costs due to temperature risehighmedium-term

Dramatic changes in precipitation andweather patterns

Support for employee health checkups to minimize negative impacts (e.g. health, safety, absenteeism) on
the workforce

middleshort-term

Physical
Risks
1

Climate-related Opportunity Factors
Opportunity types

Identified opportunities

Countermeasures

Financial impact Timing

Resource efficiency

Reduce the use and consumption of energy and water resources

Advance facilities and equipment to improve energy efficiency

middleshort-term

Energy source

Utilize new technologies such as carbon emission reducing technology

Expected to reduce operating costs such as energy costhighmedium-termMarketCorporate image and brand reputation

Enhance the image of an eco-friendly company by actively disclosing
information and responding to climate change

middlemedium-term

Expand business area by developing carbon reduction technology

Develop carbon reduction technology and increase profits through it

highlong-term

32

Environmental Impact
Reduction Activities
Efficient Use of Energy
Wemade uses energy efficiently to minimize the environmental impact caused by
the work-related activities of employees and the maintenance and operation of theWemade Tower, while practicing various measures to reduce energy consumption.
Less Consumption of Energy
Aiming to eliminate unnecessary consumption of energy resources, Wemade pays
close attention to its internal systems and strives to establish improvement plans. We
ensure that lights are turned off after certain hours to reduce energy consumption
within the building. We also reduced the frequency of unnecessary elevator operation
by building a corridor on the 3rd floor that connects Wemade Tower and Dasan
Tower as a part of the company’s effort to save energy and practice environmental
management.

1

Wemade reviews energy waste factors on a continuous basis and strives to prepare
measures to improve energy efficiency. After confirming that power was wasted due
to A/C units in offices that are not covered by the central control system, Wemade set
up a plan to introduce an automatic control system in 2023 that stops operation of all
individual A/C units after certain hours. We are improving the efficiency of energy use
by sequentially replacing light bulbs in the Wemade Tower with LED ones. Wemadeplans to replace all the light bulbs used in the building with LED light bulbs in the near
future.

Raising Employee Awareness of Environmental Management
Wemade strives to save energy at the level of facility operation, while at the same timecarrying out activities to raise employee awareness of energy use. On March 25, 2023,
the company produced card news on the purpose and expected results of the Earth HourCampaign for employees. With the card news, we were able to address environmental
issues and also motivated employees to participate in the movement to keep the lights
off for an hour during the day. Going forward, Wemade will continue to carry out similar
campaigns to raise employees’ awareness of environmental management.

Earth Hour Campaign

Development of Environmental Impact Reduction Service
Wemade applied the power saving mode in most games including Mir 4 and Mir M
to save energy at the user level. The power saving mode offered in games has been
designed for users to activate at a time period they set by themselves. Wemade
supports efficient use of energy resources at the user-level by reducing battery
consumption caused by playing games.

33

1

Environmental Impact
Reduction Activities
Waste Management

Saving of Water Usage

Wemade is committed to reduce waste discharge and recycling discharged waste.
In 2022, the company discharged a total of 111.13 tons of waste, marking a risefrom the previous year. This increase can be attributed to a higher employee count.
However, the average waste discharge per person turned out to be 0.140 ton, whichshows the waste discharge has been decreasing compared to the previous year.
While it is important to grow business by hiring more talented human resources,
Wemade acknowledges the importance of reducing waste discharge emissions andtakes actions to make that happen. As part of the plan to expand recycling, Wemade
installed recycling bins on each floor of the Wemade Tower in 2021 with the intentionof encouraging employees to participate in the recycling effort more dynamically. We
received feedbacks from employees that it has become more convenient to recycle
waste. Going forward, Wemade will make continuous efforts to ensure businessexpansion and environmental impact reduction can go hand in hand.

Wemade installed a gray water system in the Wemade Tower and has been treatingwater within our premises in an effort reduce water consumption by reusing
wastewater discharged from the building. The system collects up to 52 tons of graywater per day and reuses it as toilet water from the 5th basement floor to the 1st
floor above the ground. Wemade ensures clean and efficient use of the system byperforming regular gray water quality inspections and membrane separation tank filter
cleaning. The total water withdrawal in 2022 was 17,070 tons. Although the measureexceeds that of the previous year, average water consumption per person was 21.580
tons, indicating a downward trend from the previous year. Wemade will continue to pay
close attention to save water usage and reduce its environmental impact.

Waste Discharge

Water Consumption
Category

Unit

2020

2021

2022

Total water withdrawalTon

13,306

16,764

17,070Ton

31.60641.80521.5801)Category

Unit

2020

2021

2022

Average water consumption per person

Total Waste Discharge

Ton

80.58

82.62

111.13

Ton

0.191

0.206

0.140

1) The range of water consumption per person is limited to the Wemade Tower, the same as the range of thetotal water withdrawal.

1)

Average Waste Discharge Per Person

1) The range of waste discharge per person is limited to the Wemade Tower, the same as the range of the total
waste discharge.

Support for Environmental Impact Reduction Activities
Bicycle Storage Facility
Wemade proactively encourages more employees to use eco-friendly means oftransportation so that they can contribute to reducing negative environmental impact.
To support employees in commuting without having to emit greenhouse gas, Wemade
provides them with a bicycle storage facility in the basement of the Wemade Tower.

34

1

2

3

SOCIAL

4

35

1

2

3

RESPONSIBLE DIGITALMANAGEMENT

136

Personal Information Protection
and Information Security

Recognizing the demands of stakeholders and the importance of information security
and the protection of personal information in the blockchain and game business, Wemade
is continuously strengthening its efforts to ensure the protection and security ofcustomers’ personal information. The company manages to actively respond to security
risks through an information protection system while taking domestic and foreign
information protection laws and changes in the business environment into consideration.

Dedicated Team for Information Security

1

2

3

Wemade places a high priority on the protection and security of its users’ personal
information and has been systematically developing a management and response
system. Wemade established a group-wide information protection systemthat includes participation from all employees, from top management to entrylevel workers, and ensures organic operation under the supervision of the chief
information protection officer (CISO) and the chief personal information protection
officer (CPO).
The Information Protection Committee is chaired by the company’s CISO, with leadmanagers from various departments serve as members to deliberate and makedecisions.
The Information Security Office is a working-level department that serves as thecompany-wide information security control center. It ensures that Wemade’s
company-wide security protection system is operated organically while improving
the company’s level of information protection. The Information Security Officeconsists of several teams, including a policy team that establishes and operates
Wemade’s information protection operation system; an infrastructure security teamand CERT team that are in charge of preventive protection measures to protect
assets and prevent data breaches; a personal information team that ensures thecompany achieves and maintains compliance with domestic and international
regulations and also establishes personal information protection operation systems;
and a security audit team that monitors whether this information security system
is clearly operating according to its purpose. In this way, Wemade strives to reduce
security risks by establishing a systematic information security organization.

Information Security Governance
CEO

CIO

Information Protection
Committee

Personal Information
Protection Committee

CISO

Policyteam

Infrastructure
security team

CPO/DPO

CERT
TeamSecurity
audit
team

Personal information team

37

Personal Information Protection
and Information Security
Supervisory Organizations by Area of Responsibility

1

2

In normal circumstances

Wemade appoints a chief officer for each of the three areas of responsibility:
information protection, personal information, and information technology. We also
created the ‘Infringement Response Organization’, operated by the CISO and CPO
to respond to information infringement or breach incidents. Furthermore, we havealso created the ‘IT Disaster Recovery Organization’, which is headed by the CIO
to respond to disasters in the IT field, such as natural disasters and strikes. These
organizations are responsible for quickly responding to and handling security
incidents in the event of an emergency. So far, Wemade has not had any provencases of personal information breaches or infringement of customer information.
Wemade will continue our efforts to maintain and strengthen the information
security system.

Number of Personal Information Leakage Incidents

3

Category

Unit

2020

2021

2022

Number of complaints proven to constitute theinfringement of customer information

cases

0

0

0

Total number of leaked/stolen/lost customer data

unit

0

0

0

Information
protection
supervisoryorganization

Plan and carry out information protection activities

Personal
information
supervisoryorganization

Plan and carry out personal information protection activities

Information
technology
supervisoryorganization

Plan and carry out information technology and
IT infrastructure-related activities· Effective continuation and operation of information protection
management system· Head of the organization: Chief Information Security Officer (CISO)· Effective continuation and operation of personal information protection
management system· Head of the organization: Chief Privacy Officer (CPO)· Ensure smooth operation and availability of information system· Head of the organization: Chief IT Officer (CIO)

In emergency circumstances
Infringement
incident
respondingorganization

Respond to infringement incidents or leakage of important information

IT disasterrecoveryorganization

Respond to disasters in the IT field, such as natural disasters and strikes· Minimize damage caused by infringement· Head of the organization: Chief Information Security Officer (CISO) &Personal Information Protection Officer (CPO)· Minimize damage from IT disasters· Head of the organization: Chief IT Officer (CIO)

38

Personal Information Protection
and Information Security
Information Security Management System and Current Status

1

Declaration of Information Protection

Information Protection Certification

Information protection requires the participation and efforts of all members, not a specific organization. As aresult, Wemade distributed an information protection declaration that includes the company’s policies on the‘information protection and personal information protection management system’ in order to raise awarenessof the importance of information security and to proactively prevent incidents. The distributed declaration of
information protection is on display in many places in the Wemade Tower so that all employees can have accessto it at any time.

Wemade earned the trust of stakeholders by acquiringdomestic and international certifications related to information
protection.

Compliance with Global Information Protection Laws
2

3

Wemade strives to minimize risks in overseas markets by building a global-level information protection
management system by acquiring global certifications to ensure compliance with the European General
Personal Information Protection Act GDPR and the California Consumer Privacy Protection Act CCPA. Wemade
is GDPR compliant by signing an agreement with VeraSafe and appointing a Data Protection Officer (DPO).
CCPA is a state law that applies only to California, but it is expected to affect future legislation in other countries.
Accordingly, Wemade is planning to establish a system for CCPA compliance by preemptively collaborating withoverseas law firms for North American users of its services.

One of them is ISMS, which is a representative information
protection certification issued by the Korean Ministry of
Science and ICT to certify that a series of measures andactivities taken by Wemade for online game services andwebsite operation meet the certification standards. Wemade
also acquired ISO/IEC 27001 and ISO 27701, both of which areinternational standards, and confirmed the safety of Wemade’s
information protection system through a follow-up assessment.
About Information Security Certifications
ISMS Certification
Scope of certification: Online game service and website operation
Certification period: May 18, 2022.05.18–May 17, 2025

Declaration of Information Protection

ISO 27001 certification

Wemade’s Declaration of Information Protection
1. We strictly comply with information protection
policies and internal control standards.

4. We raise security awareness through information
protection activities.

2. We recognize the importance of information
protection and fulfill our responsibilities to ensure thesecurity of it.

5. We comply with legal requirements related to
information protection and fulfill our responsibilities
to enforce it.

3. We protect important information assets from illegal
leakage and access.

6. We collect personal information legally and use it safely
only within the intended purpose.

Scope of certification: Information security management system
related to game and platform service development and operation
Certification period: May 9, 2022–May 8, 2025
ISO 27701 certification
Scope of certification: Information security management system
related to game and platform service development and operation
Certification period: May 9, 2022–May 8, 2025

391

Personal Information Protection
and Information Security
Security Incident Prevention Activities

Creation of an Information Protection Culture

Wemade strives to maintain the highest level of security in order to prevent security
incidents that compromise the company’s services or user information. We are proactively
taking a number of actions to prevent security incidents, including establishment of
security strategies, risk detection, preemptive response, and threat analysis.

A corporate information breach is a serious problem that can lead to major losses
for the company, such as the loss of stakeholders’ trust and a tarnished corporate
image. Therefore, Wemade strives to prevent security risks by creating an information
protection culture through various activities.

Establishment of
security strategy· Strengthened focus on administrative security· Establishment of security architecture· Establishment of business plans from a mid-to-long-term perspective· Inspection of security level through quantification

2

Risk detection· Log monitoring of Information security· Operation of a 24/7 security control system· Establishment of security risk level and preparation of response procedures· Response measures according to the degree of security risk

Preemptive
response· Preemptive defense against similar threats· Establishment of real-time defense system through company policy· Raising security awareness through information security training for
employees

3· Analysis of information security system log correlation

Threat analysis· Introduction of detection policies according to threat scenarios through log
analysis· Regular inspection to check vulnerability

Wemade organized various information security-related campaigns and eventsfor executives and staff members to promote a corporate culture devoted to theprotection of information. In addition, we carried out personal information protection
training to raise employee awareness of the values of information protection. In
particular, the Policy Team under the Information Security Office conducts regularinspections to create a safe working environment where important information is
not left unprotected. The entire staff is also participating in the on-going Clean Desk
campaign designed to raise their awareness of information protection.
In addition, Wemade mails out newsletters on important matters regarding thepersonal information and CERT area every month. Wemade also creates a cultureof information protection by continuously updating all personnel about information
security-related compliance issues through e-mail and groupware notices and guides.
Information Security Campaigns and Events

Overview of Participation in Information
Security Education
2022 Employees subject topersonal information
protection training

100% completion

40

Digital Asset Management

There is a growing outcry for strict laws and regulations on digital assets both in Korea
and overseas. Recognizing that transparency of digital assets and prevention of
fraudulent transactions are key issues in the blockchain platform business, Wemade
is implementing preemptive management measures such as transparent information
disclosure for investors and stakeholders in addition to ways to ensure secure stability.

Strengthening Digital Asset Transparency
Establishment of WEMIX Real-time Transaction
Monitoring System
12

3

Wemade has signed a Memorandum of Understanding(MOU) with CrossAngle to develop a transparent
WEMIX circulation monitoring system. CrossAngle is avirtual asset information platform that operates Xangle,
also known as DART (Data Analysis, Retrieval andTransfer System) of virtual assets.
The real-time circulation monitoring system for digitalassets that Jangle is building will be applied to WEMIX
for the first time to provide a transparent circulation
status of WEMIX.

WEMIX Community, Medium Posts
Wemade is operating a public announcement channel,‘Medium Posts’ to earn the trust of investors andstakeholders by transparently disclosing mattersrelated to WEMIX. The WEMIX team announces all
matters related to the cryptocurrency WEMIX in theMedium Posts on the WEMIX3.0 homepage. The teamis required to disclose relevant information even if only
one WEMIX is transferred.

Medium Posts WEMIX Disclosure

Ceffu Custody Service

WEMIX Deliberation Committee

Wemade is using Ceffu, an institutional digital asset
platform that offers custody and liquidity solutions tosecure, manage, and utilize WEMIX coins.

Wemade created WAIT (WEMIX Approves Investment
Transparency) Protocol Investment Deliberation
Committee to strengthened transparency of WEMIX
investment and marketing activities. A total of fivemembers of the Investment Review Committee will
be responsible for reviewing various projects andinvestments, under the WAIT Protocol, an investment
approval program for prosperity and transparency of
WEMIX ecosystem.

Ceffu is a custody institution certified for ISO 27001,
ISO 27701, SOC 2 TYPE 1 and SOC2 TYPE 2, andis the only custody institution partner of the global
cryptocurrency exchange, Binance. Wemade is laying
the groundwork for building a system that can verify the
WEMIX ecosystem by storing all uncirculated WEMIX
coins owned by the WEMIX Foundation in a custodywallet while establishing a transparent distribution
management system.

WEMIX Deliberation Committee

Ceffu Custody Service

41

Digital Asset Management

Prevention of Money Laundering and Illegal Transactions

1

Linked with CoinMarketCap

Restrictions on Use by High-risk Countries

Wemade collaborates with CoinMarketCap to provide transparent and real-time
information on the cryptocurrency WEMIX. CoinMarketCap is a reputable websitethat offers real-time data on the price and trading volume of cryptocurrencies listed
on exchanges all over the world, including the total supply and distribution of WEMIX
in real time. The circulating supply is calculated in accordance to the coinmarketcap
standard commonly employed in the global coin market, ensuring consistency withcoinmarketcap’s figures.

Wemade has amended the WEMIX integrated terms of use to add country-specificterms and conditions to prevent money laundering and illegal transactions. The
Financial Action Task Force (FATF) and OFAC Sanctioned Countries’ recommendations
for the prevention of money laundering, financial crimes, and other dangers are thefoundation of the Risky Country List. Cuba, Iran, North Korea, Russia, and Syria areamong the nations that are covered.
OFAC Sanctioned Countries OFAC

2

CoinMarketCap

List of OFAC Sanctioned Countries

3

Linked with CoinMarketCap

CoinMarketCap

Cuba

Belarus

Libya

Iran

Burma (Myanmar)

Sudan

North Korea

Central African Republic

Venezuela

Russia

Congo

Yemen

Syria

Ethiopia

Zimbabwe

LebanonIraq

Balkan Peninsula

Ukraine region (Crimea, Donetsk, Luhansk)

42

1

Content Ethics and Diversity

In recognition of the impact and importance of content ethics, Wemade is taking
action to ensure users can enjoy playing games free from hatred and discrimination.
Furthermore, the company is planning and developing a variety of content to embraceand empathize with various users.

Ensuring Content Ethics

Content Diversity

Prevention of Hatred and Discrimination in Content

Games Appreciated by Diverse Users

Aiming to prevent negative experiences for users from around the world while
playing games, Wemade is operating a profanity prevention and reporting system
in 12 languages. With the help of this system, we can strictly control any hatred or
discrimination that might be expressed in its online content. In addition, we strive tominimize risks that may occur in the global service process by continuously checking
country-specific issues and additionally setting prohibited words.

Wemade strives to secure diversity of content so that all users can appreciate andenjoy playing the games developed by the company. We ensure diversity and inclusion
in content while offering games in diverse genres, such as authentic MMORPGs forPCs, the Legend of Mir 2 and Legend of Mir 3; MMORPGs for mobile devices, Mir 4 and
Mir M; casual puzzle games Anipang series and We Bare Bears the Puzzle; and board
games. Going forward, the company is committed to developing games that diverse
users can truly appreciate and enjoy.

Introduction of an AI-based Geumnanjeongwon System23

In order to protect the exchange of mobile games in service, Wemade introduces andutilizes an AI-based Geumnanjeongwon system. The system is adopted for the mobile
game Mir 4, and it is designed to prevent any activities that could disrupt the market.
The system monitors various fraudulent transactions and abuse in real time. It deletes
transaction details immediately upon discovery, and it also imposes sanctions on user
accounts. Through this system, the company is protecting the economic environment
within the games and helps users to enjoy playing games.

UX/UI Improvement for User Convenience
In October 2022, Wemade carried out a complete overhaul of the UX/UI of KLEVA,
which is Wemade’s decentralized finance DeFi service to provide better userconvenience. In the process, the company changed most of the English words in theservice into Korean; added a tutorial for new users and a glossary of terms in the DeFi
ecosystem; and added a dashboard function that allows easy viewing of overall asset
management. We have also changed the service to make it easier for users to checktheir asset information, and by incorporating the leveraged investment menu, userconvenience has been significantly increased. Wemade plans to continue to createuser-friendly services by improving the UX/UI of its services.

43

1

2

3

GROWING TOGETHERWITH ALL EMPLOYEES2

44

Human Rights Management

Wemade respects the human rights of all stakeholders. The company instituted
human rights management policies and systems and has been providing human rights
training to all employees so that they respect and protect the rights of all people whogrow together with Wemade.

Human Rights Management Policy

12

Human Rights Management Principles

Human Rights Management Strategy System

Wemade strives to respect the human rights of all stakeholders from both inside andoutside of the company, including but not limited to all employees, shareholders,investors, subsidiaries, partners, and local communities, not to mention its customers
and game users. Wemade also established a human rights management system
to prevent human rights from being violated in business operations, in addition toadhering to international standards and guidelines related to labor and human rights,
such as the Universal Declaration of Human Rights and the United Nations Guiding
Principles on Business and Human Rights. Furthermore, Wemade keeps stepping
up its efforts to realize human rights respect throughout the value chain, including
subsidiaries, business partners, and local communities.

Wemade established a step-by-step human rights management strategy to ensurethat human rights are respected. As part of this strategy, the company provides
training to employees according to the human rights management process andoperates an internal and external grievance handling system. In the long term, thecompany is committed to spreading a culture of respect for human rights throughout
the value chain to advance human rights management.

Basic Principles of Wemade’s Human Rights Management
 rohibition of discrimination andPharassment

62Prohibition of forced labor

7

Wages and compensation

3

Prohibition of child labor

8

Protection of customer and user rights4 uarantee of freedom of associationGand the right to collective bargaining

9

Information protection

10

Supply chain management11

 rotection of human rights of local
P
residents1

3

5

Humane treatment

 nsuring a safe industrial and workingEenvironment

Groundwork for
Human Rights
Management System2023-2024

Better understandingof human rights
and promotion ofparticipation
2025-2026

Advancementof human rights
management
2027 and after· Establishmentof human rights
management systemand process· Development andoperation of humanrights education
program· Advancement anddevelopment ofdiversity and inclusion
policy and program· Support andparticipate inInternational humanrights guidelines andinitiatives· Diversification ofgrievance reportingand counselingchannels· Company-wide
spread of the scope of
application of humanrights management

45

Human Rights Management

Human Rights Management Process

1

2

3

Operation of Grievance Handling System

Human Rights Education

Wemade operates a grievance handling system as a solution to human rights violation
cases. Wemade has a process in place, where all stakeholders can easily reporthuman rights violation acts and facts through internal and external grievance handlingchannels. The noteworthy details of individual reported cases are collected anddiscussed by the relevant departments to come up with specific remedies.

Wemade respects the human rights of all members and strives to spread a humanrights-respecting culture. Each year, the company offers education to raise employees’
awareness of human rights. We are also planning to develop and run additional
programs to provide better education that covers broader human rights-related issues,
such as diversity and inclusion.

Grievance Handling Process

Employee Training Participation Status

Filing reports
and complaints

Factchecking andinvestigation

Report to
the relevant
department anddiscussion

Name

Taking actions
and disclosureof results& reporter
feedback

1)

Subject

Completion rate

All employees

100%

Workplace sexual harassment
prevention training
Workplace bullying prevention
training
Disabled awareness
improvement training

Grievance Reporting and Handling Status
Year

No. of grievance reports

Grievance handling rate2022

0 case-1) Based on the number of employees at the time of training

46

Human Rights Management

Respecting Diversity

1

Diversity is an important issue for Wemade, a company that develops content fordiverse customer bases. When hiring or promoting employees, the company prohibits
discrimination or disadvantage based on the job candidates’ nationality, race, age,gender, disability, and others, there is no gender difference in compensation for new
employees as well. Through these business practices, the company is fostering anenvironment at work where all employees, with their variety of backgrounds andviewpoints, can maximize their potential.

Goals and Roadmap of Diversity and Inclusion
2023–2024

2025–2026

2027–

Step 1.
Identify diversity
management indicatorsand lay the groundwork

Step 2.
Establish diversity policy
and raise awarenessStep 3.
Develop and expand
diversity programs

1. Operate diversity andinclusion internalization
program at least once a year

1. Lay the systematic
foundation to promote
diversity and inclusion

1. Develop and run programs
to expand diverse talents

2. Put together key indicators
and action plans

2. Operate a program topromote understanding

23

2. Expand participation ofsubsidiaries

47

Human Resources Management

Wemade’s core values are Growth, Responsibility and Achievement. The objectiveof the company is to ensure employees grow together with the company by making
accomplishments through the fulfillment of their responsibilities. Wemade builds
value system that creates a virtuous cycle by sharing its vision with employees,
present clear goals, grant each employee with the roles and authority that correspondwith their capabilities and be rewarded with clear and fair compensation.

Talent Acquisition and Retention

1

Ideal Talent

New Employee Hiring Status

In Wemade, the most ideal employee is the well-rounded person who has great
passion, professionalism, and character.

Category

We recruit and hire individuals who have a tireless passion for game development
and service, professionalism that speaks from their abilities, and humble character
that makes them a respectful and considerate colleague. Wemade is striving to be acompany that these ideal talents wish to be with.

2

Great
PassionGreat
Professionalism

Great
Personality

Fair Hiring Process3

Wemade is committed to recruit talent. To this end, the company has a fair hiring
process in place, in which the priority is to check if the job candidates have the rightqualifications for the prospective job positions. Wemade plans to continuously
strengthen its blockchain and game development business capabilities by proactive
recruitment of talented human resources.
Wemade and all its subsidiaries alike are carrying out a large-scale recruitment, andin particular, Wemade M and Wemade XR were selected as excellent employment
companies in Seongnam in the second half of 2022.

No. of New Hires

Unit

2020

2021

2022

persons

182

234

551

Talent Recommendation System
Wemade has been operating the Wemade talent recommendation program since2021, through which current employees can recommend talented human resources toget hired for the company.
Rewards are offered to those who recommend job candidates with a generous
incentive to promote the recruitment of outstanding human resources, because those
hired through recommendation tend to settle in the organization and their job positions
faster and better.
Wemade was able to hire and retain a large number of outstanding talents through this
employee recommendation program, and the company is planning to grow faster into a
global power by continuously expanding pipeline of talent recruitment.

48

1

2

Human Resources Management

Industrial Talent Fostering and Recruitment Program

Fair Performance Evaluation System

Wemade is proactively investing in many possibilities and opportunities to contributeto the fostering of skilled human resources for the industry. We have several humanresources fostering and supporting program in place, and they include industryuniversity cooperation, collaboration with educational programs, and recruitmentof employees with or without prior job experience, all of which are reflecting thecharacteristics of the industry where collaboration among people with outstanding
capabilities and extensive experience is common.

Wemade operates a performance evaluation system to evaluate the performanceand competency level of its employees each year. Every year, we conduct absoluteevaluations based on the evaluation criteria and procedures we’ve established for afair and impartial evaluation process. Performance evaluation is conducted according
to the official procedure, and employees also have the option to file objections toevaluation results according to a separate procedure.

Wemade has signed development fund donation agreements with Korea University,
Dongseo University, Sogang University, and Seoul National University in 2022 and has
been helping the industry to grow by supporting each school’s blockchain research. In
addition, we jointly founded a blockchain academy with Code States, which is a startup
dedicated to training people. Some of the students who graduate the academy withexcellent academic performance are hired by Wemade after passing the company’s
hiring process.

We encourage our employees to improve their job performance by establishingprinciples and standards with regards to compensation, promotion, and key personnel
hiring selection in advance. Wemade plans to continuously improve the evaluation
process by actively listening to feedback from employees.
Performance Evaluation Process
Write a statement of achievements

1st and 2nd evaluation
Evaluation of achievements andcollective & rank competency

3

Announcement of evaluation results
Evaluation feedback and interview
Korea University development fund donationagreement

Wemade Blockchain Academy

Acceptance objections andMediation

49

Human Resources Management

Employee Training Program1)

Educational Objectives and Overview

1

Employee Training Results

Under the goal of realizing the core value of the company regarding the professional
growth of employees, Wemade supports a variety of training programs and opportunities
for them to develop their professional capacities. As part of these activities, the company
is fostering professional human resources through in-house job training while providing
position-specific leadership training to develop the capabilities of manager and executive
level employees. In addition, Wemade supports employees by paying for the training
offered by other institutions to promote their self-development. Believing that thecompetence of employees is the growth engine for the company, Wemade is committed
to continuously expanding investment in training and growth of employees.

2

Employee Training Programs
In-house training

Outside training· Training for new hires· Job competency improvement training in otherinstitutions· Training of managers and executives
3· Ethics education· Training by outsourced experts· Foreign language education· Human rights education· Overseas training and seminars

Employee Training Expenses
Category

Unit

2020

2021

2022

Total training cost

KRW

17,456,750

10,991,000

40,509,209

Average training cost per person

KRW

24,72616,14038,802Category
Outside job skills improvement
training in 2022

No. of Participants69명

No. of Sessions Total Training Cost
38

KRW 27,257,409

1) The scope of data collection is limited to Wemade headquarters

Employee Training
We offer training for new hires to support their new start at Wemade. They haveopportunities for communication including orientation to learn about company
regulations ask questions about the company.
These opportunities are designed to help new hires quickly adapt to the organizationand share the company’s vision as they are ready to take their first step toward
creating future value. In addition, Wemade has leadership training for manager andexecutive level employees so that they can build their leadership skills.
Wemade encourages self-initiated growth for employees who demonstratecommitment to developing their capabilities. As a part of this effort, the company
prepared self-learning plans tailored to their career and job duties. Additionally,
individuals are provided the opportunity to participate in training programs offered byexternal institutions, considering their need for a flexible schedule.
Wemade supports various training programs to help employees improve their job skills
and strengthen their global competencies.

50

Human Resources Management

Sound Labor-Management Relations

1

Wemade created a labor-management council to promote a sound and trustworthy
relationship between employees and management. The labor-management council
has six council members ― 3 employees and 3 executives ― and they have quarterly
meetings to discusses ways to promote common interests between labor andmanagement while communicating and making decisions for agenda. In 2022, they
discussed and resolved such issues as improving the work environment and upgrading
the the employee welfare system. Wemade will continue to strive for a healthyorganizational culture in which labor and management communicate.
No. of Labor-Management Council Meetings

2

3

Category

Unit

2020

2021

2022

No. of Labor-Management Council Meetings

Unit

4

4

4

51

Human Resources Management

Employee Welfare Benefit

1Creating a Harmonious Work Culture

Promotion of Welfare Benefits for Employees

Improving Welfare Benefits for Employee Families

Wemade developed a comprehensive welfare benefit
program to give employees the freedom to take breaks
while still being able to focus on their work in an environment
where work and rest are balanced. Employees can take abreak or get the rest they need in convenient facilities suchas a cafeteria and nursing room within the office building orin leisure facilities including a sports center. Wemade willcontinuously expand the company’s welfare benefit plan toensure a balance between work and life for employees.

Wemade has a welfare point program that all employees
can use anywhere in Korea. In 2022, the company
increased welfare points to give more benefits toemployees. In addition, long-term employees areentitled to a separate bonus that Wemade pays inappreciation of their devotion to the company. Wemade
always strives to provide better welfare benefits bydeveloping diverse welfare and benefit programs.

Wemade has a variety of employee family-friendly
welfare benefit programs. We offer vacation time andextra pay for employees who have important family
events such as a funeral or wedding or children who
enter or graduate college. Wemade cares about thehealth of employee families as well and supports themwith annual comprehensive health checkups and flu
vaccinations each year.

Harmony Between Work and Rest

Employee Appreciation and Support

Family Support

Cafeteria

Reward for long-term employees

Congratulatory bonus for employees’ children

Unlimited access to coffee menus prepared byprofessional baristas

Reward for employees who have worked for 10 or 20
years

Congratulatory bonus for employees with children who
enter schools from kindergarten to high school

Convenient facilities

Welfare points

In-house library, sleeping room, shower room, andnursing room available

Employees earn welfare points that can be used bothon and offline2

3

Sports center
Support to use the sports center

Recreational facilities
Support to use Daemyung Residence, Daemyung
Resort, and Hanwha Resort

Employees with children going to college
Support children’s college tuition each semester

Health checkup and flu vaccination

Support for employee families’ health checkup

Support for comprehensive annual health check-up
and free flu vaccination

Support for comprehensive annual health checkup andfree flu vaccination for employees and their families

Group accident insurance

Support for major family events

Minimize the impact of various injuries, accidents, anddiseases by subscribing to group accident insurance inaddition to the four major insurances for all employees

Additional congratulatory or condolence payments
for major family events such as marriage, childbirth,
birthday, and funeral

52

Safe and Healthy

Wemade strives to create a safe and healthy working environment where employees
can work with peace of mind by eliminating harmful factors.

Safety and Health Management Promotion System

Direction of Wemade Safety and Health Management

Wemade has various safety and health management policies designed to create
and operate a safe and healthy working environment and improve the health of
employees.
1Comprehensive safety
and health monitoringand improvement
23

Advance prevention
and inspection toachieve zero industrial
accident record

Various activities
such as employee
training to raise safety
awareness1

 emade strives to protect the safety of its employees and stakeholders by prioritizingWsafety and health in its management activities.

2

 emade continuously strengthens safety management in the working environment,W
facilities, and business operation in compliance with safety environment laws and company
regulations.

3

 emade sets safety and health goals and takes action to reach them to create a safeW
working environment, while implementing preventive safety and health management
strategies in addition to periodic inspection and improvement.

4

 emade promotes a safety and health culture through safety and health-related education,W
training, and communication with employees to make safety a part of the organization’s
daily life.

5 emade communicates with all stakeholders, including employees and partners, toWeducate them about Wemade’s policies and requirements regarding a safe and healthy
work environment.

53

Safe and Healthy

Creation of a Safe Working Environment
Wemade takes various measures to minimize safety-related risks in Wemade Towerso that employees can focus only their work.
1

Regular and Occasional Inspections of Harmful and Risk Factors in the Workplace
Wemade inspects offices, hallways, firefighting facilities, and old facilities in Wemade
Tower semi-annually to identify and eliminate harmful and risk factors in advance.
In addition, periodic patrols, emergency equipment checkups, and regular facility
inspections are conducted for the company buildings including Wemade Tower.
Establishment of Safety Management Manual and Emergency Contact Network

2

3

Wemade minimizes risks in the event of an accident by establishing a reporting systemand protocol for emergency situations. In addition, the company prepared a manualfor countermeasures in case of such emergency situations as safety accidents, water
outages, power outages, and gas supply interruptions. An emergency contact network
is available within the organization for emergency response.
Improving Work Environment Safety
Wemade had Wemade Tower inspected by an outsourced expert team from July to
October 2022 to evaluate the security and seismic performance of the building. The
results showed that there were no major defects, and the company plans to proceedwith appropriate repairs for the identified problems.
In 2023, the company plans to outsource specialists to conduct risk assessments ofadministration, facilities, security, and beautification to check harmful risk factors andtake actions to eliminate them.

Occupational Safety and Health Committee
Wemade is operating the Occupational Safety and Health Committee in compliancewith Article 24 of the Industrial Safety and Health Act. It is a consulting body dedicatedto create a safe working environment for employees, consisting of 4 members ―2 representing employees and 2 representing management. The members havequarterly meetings where they share and discuss important safety and health-related
issues for autonomous accident prevention activities.
In 2022, the Occupational Safety and Health Committee established and announced
the safety and health management policy of Wemade; decided to replace air purifiers
and water purifiers to improve the working environment for employees; and decided to
expand the company’s support for employees to take blood, blood pressure, and urine
tests.
Occupational Safety and Health Status
In 2022, Wemade had no work-related injuries, diseases, or industrial accidents.
Industrial Accidents
Category

Unit

2020

2021

2022

Number of work-related injuries and illnesses

cases

0

0

0

%

0

0

0

Industrial accident rate

54

Safe and Healthy

Employee Health Management

1

Wemade has various health policies designed to prevent diseases and improve thequality of life for employees. With these policies, the company expects to minimize
health-related risks and create an environment where employees can work in good
health, both physically and mentally.
Comprehensive Health Checkup and Vaccination2

Wemade supports comprehensive health checkups for employees and theirfamilies for the early detection and prevention of diseases. Moreover, support forthe prevention of communicable illnesses includes flu vaccinations. Commencing
from 2022, the provision of supportive blood tests following thorough healthassessments was introduced to ensure ongoing well-being. The organization
remains dedicated to overseeing employee health by expanding benefits andmotivating active engagement in health-focused initiatives.

Sports Center
Wemade encourages staff members to use the sports facility to enhance their health.
Employees can use the Korea Venture Town Sports Center, which is an employee
welfare facility located on the 2nd basement floor of the Dasan Tower. The sports
center has about 1,914 m² space that is equipped with 100 units of the latest exercise
equipment. It also has indoor courts for basketball, badminton, squash, and table
tennis, as well as golf driving ranges and screen golf. Employees can relieve fatigue
after exercise or playing sports in the shower room, hot and cold baths, or dry saunasthat are available in the sports center as well.

Group Accident Insurance

3

Wemade provides employees with group accident insurance in addition to the four
major insurances to minimize the impact of various injuries, accidents, and diseases.

Wemade Cafeteria

Work Environment Improvement
Wemade ensures employees are working in a pleasant environment by installingindoor air purifiers. In addition, the company moved the employee-only cafeteria
from its previous location in the basement to the current first floor to minimize
unnecessary traffic lines and reduce the possibility of accidents while moving.
View of sports center

Shower room

55

1

2

3

TOGETHER WITH
SOCIETY3

56

Social Contribution

Social Contribution System

1

2

Wemade listens to the voices ofvarious stakeholders and strives to use
Wemade’s technological resources ina meaningful way to contribute to thebalanced growth of society. To thisend, the company provides support invarious fields including sports and art, in
addition offers educational opportunities
to children around the world. Goingforward, Wemade will continue to takethe lead in the realization of a sustainable
society through various social
contribution activities.

Wemade is contributing to a sustainable society by creating and supporting avirtuous cycle value system in various areas. The company is promoting a positive
donation culture by participating in donation drives with users around the world,
while contributing to the growth of the local community with support through many
activities including for global future generation education.

Social Contribution Strategy

Wemade is ready for a bigger world, a brighter future.

Wemade contributes to society by creating synergies through collaboration
with others so that the technological power of the company can be used more meaningfully.

In Diverse Areas

Nurturing the IT industry

Turning Dreams into Reality

Discover and support talent inculture and arts

Global future generation
education· Develop and participate incollaborative programs· Support children’s education

Grow with the community3· Human resources
development· Support for technicalresearch and academic
activities· Support for start-ups· Scholarship support· Support for writers andcompanies· Support sports players· Improve educational
environment· Support for theunderprivileged andvulnerable· Promoting rights and welfareof future generations· Support for urgent issues athome and abroad

57

Social Contribution

Wemade’s Goals of Social Contribution
2022–2023
Phase 1. Introduction
1

Form consensus andestablish a system· Establish social contribution
system· Raise internal awareness· Discover social contribution
projects

2024–2025
Phase 2. Maturity
2

Strengthen systemand competency· Organize and operate asystematic activity organization· Promote strategic and continuous
activities

Support for the Community
Support for Global Future Generation Education

Discover and Support Talent in Culture and Arts

Wemade has signed a social contribution donationagreement with UNICEF and joined the international
community to promote the rights and welfare of children
around the world through educational projects. We
support UNICEF’s Reimagine Education project, whichaims to create an environment in which children canreceive quality education in classroom tents designed toprovide a safe and pleasant learning environment. East
Timor and Laos are the first two countries to receive thecompany’s support, and Wemade signed a ‘100-year
promise’ agreement in 2022 to donate $1 million a year,
or $100 million worth of cryptocurrency WEMIX in total
to UNICEF for 100 years.

Wemade has served as the event organizer and mainsponsor of sports events as the Korea Women’sProfessional Golf Association (KLPGA) Regular Tourand WEMIX Championship with Wow-MG SBS Golf.
The company is also planning to introduce the tour golf
point system, WEMIX Point, and pay different prizes incryptocurrency WEMIX to players according to the final
rankings of the season.

Wemade signed a donation agreement with UNICEF

WEMIX Championship Poster

Wemade will continue to help growth in the sports fieldby discovering and sponsoring sports and emerging
sports players.

2026 and after
Phase 3. Expansion

3

Expand social
contribution system· Expand stakeholder engagement· Reinforce strategy-linked
activities

58

1

2

Social Contribution

Employees Participation in Volunteer Activities

Donations Made with Users

Wemade Play launched several social contribution
programs where employees participate in activities topromote the welfare of the local community.

Wemade Play has been continuously contributing tosociety through the games it developed, such as theAnipang series and Aqua Story. A donation campaign wasorchestrated in collaboration with game users, wherein
Wemade Play contributed donations once users achieved
a set target of utilizing in-game generated free content. It
is an event where users can participate in a donation drive
simply by playing games, and it effectuated increased
awareness of the good influence of game users.

In 2022, the company carried out a non-contact volunteer
service activity, in which the company produced solar
lanterns and delivered them to African regions where
electricity was not available. In addition, the company
participated in the volunteer program to make brailletactile books. Through this program, the company
tried to provide a better educational environment forunderprivileged children by delivering playbooks andteaching materials to visually impaired children.

3

In 2022, the company used eight games that it developed
to create an environment where children can grow their
dreams by providing intensive support in the fields of
medical care, child education, and children’s welfare.
Wemade plans to keep strengthening and promoting
donation activities along with its game users.

Total Amount of Donation, 2022

100

million KRW in total

No. of Donation Programs, 2022

6 in total임직원 참여 사회공헌 프로그램Medicine
Anipang Touch
Abandoned animal surgery & treatment
Aqua Story
Surgery & treatment of disabled children from lowincome families

Culture & Education
Snoopy Find the Difference Images
Resolving the educational gap forunderprivileged children

LivingAnipang 4
Support autumn picnic for children in group homes

We Bare Bears Puzzle
Anipang 3
Support for children who cannot afford foodShanghai Anipang
Anipang Sacheonseong
Support for the education and self-reliance ofautistic children

59

Social Contribution

NFT Technology in Use for Social Contribution NFT

1

2

Wemade participates in innovative social contribution activities using its NFT(non-fungible token) technology and its platforms. By maintaining ownershipand certification of the works through various NFT collaborations with artists andbusinesses, the company is raising the value of NFT artwork and sharing their
meaning. The company not only increased the significance of the art, documentary,and photos, it also created results that help the vulnerable.

Donation to Marine Life Protection Activities

The company is creating a virtuous cycle where technology meets donation to bringjoy to people by participating in events developed to share and give opportunities forgame users to experience the joy of giving and donating proceeds from participating
users to organizations.

Donation of Korean War Veteran Records

Artist Yoyojin created a digital single cover image art of MC Seimo’s ‘Glaglagochiye –Dolphins to the Sea’ and submitted it to WEMIX NFT Auction. The artist donated all of
the proceeds from this auction to Hot Pink Dolphins, which is an organization dedicatedto returning whales such as dolphins to the sea.

Photographer Rami and director Hedy have been compiling records of veterans who
defended Korea during the Korean War under the title of Project Soldier. They createdtheir work in NFT forms and made them available for purchase through the NFT
auction. The proceeds from the auction were used to fund Project Soldier activities andthe company made additional an donation to support their project.
Celebrating Hangeul Day and Supporting the Disabled3

In commemoration of Hangeul Day, Wemade turned a part of the Hangeul Day special
documentary into a video NFT with MBC and held a donation event in which users
could participate. Proceeds raised from their participation were donated to projects to
help hearing-impaired people.

60

Coexisting Management

Wemade maintains a partnership with multiple domestic and foreign game companies bysigning onboarding contracts for the WEMIX Play platform with them. The company is also
promoting a coexisting relationship where the company develops projects along with users
while increasing the influence of users through the incorporation of blockchain technology inthe game. Wemade will continue to build an ecosystem where everyone can grow together.

Mutual Growth1

2

Mutual Growth with Partners

Growing Together with Users

Wemade is committed to building an environment that allows sustainable shared
growth with various business partners while contemplating ways to grow throughpartnerships with them.

The onboarding of WEMIX on Wemade business, blockchain technology is embedded
within game content, changing the way consumers participate in gaming services,which have traditionally been service provider-driven.

In 2022, Wemade participated in the G-Star 2022, which was a game exhibition heldin BEXCO, Busan. The company set up BTB, BTC, and Haeundae outdoor booths forthe event. During the exhibition, Wemade had meetings with domestic and foreign
game developers to discover future partners and made presentations on collaboration
models for mutual growth. After the exhibition was over, the company was able to sign
WEMIX PLAY onboarding contracts for 100 games.

Now, users have the opportunity to directly participate in the operation of the games,
and they can also share the profits through tokens. This means that the users havetransformed into independent members of the ecosystem instead of remaining justusers of games. It is expected that the increasing influence of users can eventually
result in attracting more active user participation for the success of projects.
Wemade will strive to grow business while continuously maintaining a win-win
relationship with users.

In 2023, the company also held a networking event while in the process of planning
blockchain services for small and medium-sized and indie game developers. The
company made a presentation on WEMIX PLAY platform onboarding business to indie
game developers and exchanged opinions on the vision and support of WEMIX 3.0 for
the future.
3

Wemade is committed to mutual growth with domestic and foreign game developers,
and the company will continue to strive to build an ecosystem for shared growth.
Expanding the Base of Blockchain Technology
At Wemade, there is a lot of thought going into adding blockchain technology togame content, and lots of attempts are made in terms of planning and technology as
well. Most of the results and know-how the company gains from these thoughts andattempts are permeating into the industry through WEMIX onboarding partners, andeventually contributing to the fast expansion of the base of blockchain technology.

Wemade G-Star 2022

61

1

GOVERNANCE

5

62

1

TRANSPARENT
GOVERNANCE

1

63

Ethical Management

Wemade practices ethical management to conduct business transparently and fairly
by taking compliance and business ethics as the top priority in business activities.

Ethical Management System
Advancement of Ethical Management System

Promotion of Ethical Management

Wemade has an ethical management promotion system that consists of prevention,
detection, and response. Wemade is striving to establish and spread ethicalmanagement and human rights management in addition to strengthening employees’
awareness of ethics and human rights and the company’s internal audit system.

The ESG Committee’s Human Rights & Compliance Working Group develops specificplans for major issues in the relevant area and executes implementation tasks accordingly,
while the ESG Committee reviews and makes decisions on a regular basis. In 2022,
Wemade carried out the “5 YES, 5 NO” campaign to create a healthy drinking culture.
Furthermore, we also carried out the “Mind Instead of Gift Campaign” on Chuseok to
encourage employees and stakeholders to refrain from giving or receiving gifts.

Wemade Ethical Management Process
Prevention
Ethics & human rights
management guidelines,
establishment of system,
education· Revision and enactment of code of
ethics and related guidelines· Establishment and disclosureof human rights management
policies· Employee ethics & human rights
education, campaign

Detection
Operation of reporting
system and monitoring· Self-inspection andhigh-risk department
monitoring· Operation of acorruption reporting
center· Operation of an
employee grievancehandling system

Response
Response to issues
and prevention ofrecurrence· Analysis and evaluationof response to issues
and results· Prepare measures toprevent recurrence· Follow-up measures forviolators

Wemade Play was certified as a sincere taxpayer (corporate sector) by Seongnam-si,
Gyeonggi Province in 2018 and again in 2023 for the second time. In an environment
marked by the growing importance of business ethics, the second honest taxpayer
certification is becoming a competitive edge for the company in ethical management.

Wemade Code of Ethics· Chapter 1 Compliance and social responsibility· Chapter 2 Basic ethics of employees· Chapter 3 Mutual prosperity with partners· Chapter 4 Protection of rights of shareholders and investors· Chapter 5 Customer respect management· Chapter 6 Responsibility towards society and nation

1

Establishment of Code of Ethics
Wemade’s management philosophy is to keep business transparent, fair, andreasonable, with compliance and corporate ethics as its top management values.
Through the revision of the code of ethics in 2022, Wemade’s ethical management
policy was further strengthened and the standards used by the executives &employees in value judgment were newly established.

· Chapter 7 Application of the code of ethics

Wemade Healthy Drinking Culture
Campaign

64

Ethical Management

Wemade Corporate Ethics Counseling Center

Process in Corporate Ethics Counseling Center

We operate the Wemade Corporate Ethics Consultation Center to provide consultation
and reporting on fair trade violations, receipt of money and entertainment, leakage ofcompany information, and other irregularities that result in unfair gains or company
losses, as well as labour-related issues such as workplace bullying and sexual
harassment, in relation to employees of Wemade and its affiliates. Any internal andexternal stakeholders such as executives/employees and business partners canconsult and report anonymously.

Consultation and Report Type1

· Taking unacceptable actions suchas demanding money, attempting
bribery, and accepting of money ineither case· Embezzlement and improper use ofcompany assets· Unfair trade provoking acts such aspreferential treatment for partner
selection· Workplace bullying and sexual
harassment· Violation of other laws andregulations, unethical behavior· Leaking confidential information

Principles of Protecting a
Whistleblower
Wemade Corporate Ethics CounselingCenter makes sure that the identityof whistleblowers and what theyreported are kept secret according to
the law. Whistleblowers may receive
protection in accordance with relevantlaws such as the Public Interest
Reporter Protection Act. And thecompany ensures that whistleblowers
will not suffer any disadvantage due tocounseling or reporting.

1

2

Registration
Receive details of counseling/reporting

Fact check and investigation
Fact check and formal investigation

3

4

Internal discussion and review
Discuss with relevant teams anddeliberate in, for example, the personnel
committee for disciplinary actions.

Results and disclosure
Actions taken after discussion and basedon results, then making them public,getting feedback

Reported and Processed Ethics Violation Cases
Year

No. of reported cases

No. of processed cases

2022

10 cases

100%

65

Governance

Wemade strives to establish a transparent and advanced governance structure toprotect the rights and interests of various stakeholders including shareholders, and topromote profits based on sound governance.

Corporate Governance Structure
Composition of the Board of Directors

Operation of the Board of Directors

Wemade’s board of directors deliberates and makes decisions on matters entrusted tothem from the shareholders’ meeting, basic policies on management, and importantmatters on business execution. In March 2023, the first female non-executive director was
appointed. As of now, Wemade’s board of directors consists of two executive directors
and three outside directors, in addition to an auditor who was appointed at the generalshareholders’ meeting. The board of directors has a three-year term, and they are eligible
for reappointment after an evaluation of their performance. However, in compliance with
the Commercial Act, the term of non-executive directors is limited to six years.

Wemade holds regular board of directors’ meetings on a quarterly basis, and it
convenes and promotes temporary board meetings whenever necessary. To ensure
the integrity of board operations, the company releases information on the relevant
agenda in advance of the meeting. Information on significant pending issues is also
made available at any time. In 2022, the company held a total of 11 board meetings
where 47 agenda items were discussed. The attendance rate of all executive and nonexecutive directors was 100%.

Board of Directors Structure(As of Mar. 2023)

Category

Name

Gender

Appointment Background

Major Career

Appointed on

Term ends on

Executive director

Park Kwan-ho

MaleDevelopment

Former executive director of Joymax Co., Ltd.
Current executive director & chairman of Wemade Co., Ltd.

Feb.11, 2000

Mar.27, 2024

Chang Hyun-guk

MaleManagement

Former head of strategic planning dept. at Wemade Co., Ltd.
Current executive director & CEO of Wemade Co., Ltd.

Jul.22, 2013

Mar.31, 2026

Han Seung-soo

MaleAdvisory

Current professor, Korea University Business School
Current member of Korea Accounting Standards Board,
Member of the Accounting Standards Advisory Committee
Current non-executive director of Wemade Co., Ltd.

Mar.31, 2022

Mar.31, 2025

Kim Young-ho

MaleAdvisory

Former president of Korea National University of Transportation
Current advisor at Sejong law firm
Current non-executive director of Wemade Co., Ltd.

Mar.31, 2023

Mar.31, 2026

Lee Seon-hye

FemaleAdvisory

Former director of the Korean Society of Mental Health and Social Welfare
Current professor, Department of Social Welfare, Chung-Ang University
Current non-executive director of Wemade Co., Ltd.

Mar.31, 2023

Mar.31, 2026

Non-executive director

1

66

Governance

Board Diversity and Professionalism
Wemade respects diversity and does not discriminate against race, gender, religion,
place of origin, or nationality when selecting non-executive directors. When selecting
a non-executive director, the company makes sure the candidate has a professional
background so that they can express their opinions on company management froman objective and professional perspective, while taking into account their professional
knowledge and experience in leadership, global career, IT, accounting, economics, andlegal affairs.

In March 2023, Wemade appointed a female non-executive director with expertisein mental health and welfare, thereby increasing the ratio of female directors in
the Wemade’s board of directors to 20%. In addition, we also appointed a malenon-executive director with expertise in administration the same year. Wemade
is committed to continuously strengthening corporate governance by promoting
diversity and professionalism in the board of directors.

BSM, Board Skills Matrix
Category

Name

Executive director

Non-executive director

LeadershipManagement &Accounting

Park Kwan-ho●●

Chang Hyun-guk●●

Han Seung-soo
Kim Young-ho
Lee Seon-hye

1

Policy &Administration

Research &Development

Law

Welfare

●

●

●
●

●
●

●

Appointed year

Age

Gender2000

50 years old

Male

2013

48 years old

Male

2022

53 years old

Male

2023

68 years old

Male

2023

57 years old

Female67

Governance

Board Independence

Operation of the ESG Committee

Wemade’s board of directors separates the roles of CEO and chairman to ensure
the independence of the board. The board carefully evaluates the independence,expertise, experience, and job relevance of candidates and selects them in accordancewith the articles of incorporation and relevant laws and regulations. Those who are
engaged in commercial matters of the company, the largest shareholder and those
who have important interests in the company are prohibited from working as a nonexecutive director.

In order to promote systematic ESG management, Wemade established an ESG
Committee chaired by the CEO in July 2021, and established an ESG department inJanuary 2022 to carry out activities to practice and internalize ESG management in fullscale. The committee convenes regularly twice a year to monitor the development andimplementation of the company-wide ESG strategies and to make key ESG decisions
that are reported to the board of directors from time to time.

Criteria for Determining the Independence of Non-executive Directors(Disqualification of independence, Article 382 of the Commercial Act)
· A person who has not had an employment relationship with executives or employees ofWemade and its affiliates in the past 5 years· A person who is not the spouse or direct ascendant or descendant of the largest
shareholder· A person who is not in an employment relationship with executives or employees of theorganizations related to the largest shareholder· A person who is not the spouse and direct ascendant or· A person who is not an employee of Wemade’s subsidiaries
1· A person who is not an executive or employee of an organization with significant
interests, such as business relationships, with Wemade· A person who is not an employee of an organization in which Wemade’s executives andemployees concurrently hold positions

Under the committee, there are consulting working groups dedicated to discussions
with departments/teams relevant to such areas as environmental management, humanrights and compliance, social contribution, governance and information protection.
They develop specific plans for major issues in each area and implement tasks
accordingly. What is discussed in the working groups is subject to frequent review anddecision making by the ESG committee.
Compensation for Directors
Wemade bases director compensation decisions on thorough, unbiased standards.
Complying to the limits approved at the general shareholders’ meeting in accordancewith Article 388 of the Commercial Act and the Articles of Incorporation, on the basis ofmanagement performance of the company.
Remuneration Paid to Directors in 2022
Classification(Unit: million KRW)

No.of people

Total remuneration

Average per person

Executive director

218,894

9,447

Non-executive director

1

45

45

68

Governance

Shareholder Rights Protection and Shareholder Return
Equity and Capital Structure

Shareholder Rights Protection

Wemade’s largest shareholder is Park Kwan-ho, chairman of the board of directors,
who holds 43.90% of the total issued stocks.

Wemade strives to increase shareholder value and earn the trust of stakeholders
and the market through a shareholder-oriented IR policy. All stakeholders, including
shareholders, have simple access to the information they need on the company’s IR
website. In addition, the company provides shareholders with sufficient information
about the regular shareholders’ meeting in advance so that they can exercise theirvaluable rights.

According to the articles of incorporation of Wemade, the total number of sharesavailable for issue is 100,000,000, and all stocks issued by Wemade are common
stocks. One voting right is granted per share as specified in Article 23 in the articles ofincorporation.
As of the end of 2022, the company issued a total of 33,796,962 common shares, andthe number of outstanding shares excluding 346,963 treasury shares is 33,449,999.
Share Distribution Status
Category

1(Unit: million KRW)

Shareholder Return
In accordance with the company’s policy on dividends, Wemade has a shareholder
return policy centred on cash dividends for shareholders, increasing the total amountof dividends and dividends per share to KRW 10 billion or a dividend payout ratio of
30% (net income based on owners’ equity in the consolidated financial statements),
whichever is greater, starting in 2021. Going forward, the company plans tocontinuously review the purchase of treasury shares and the expansion of dividends toenhance shareholder value.

Ownership ratio (%)

No. of shares (shares)

Largest shareholders and related parties

44.97

15,198,742

Institutional shareholders

4.94

1,669,730

Individual shareholders

43.95

14,852,657

Foreign shareholders

5.12

1,728,870

Return Status

Treasury stock

1.03

346,963

Category

2020

2021

2022

Total

100

33,796,962

Total amount of returns (million KRW)

9,840

21,43725,087

600

650

750

Return per share (KRW)(Unit: million KRW)69

APPENDIX

6

70

ESG DATA Fact Book

Financial and Governance Performance
Financial Information
Category
Statement of
Financial Position(Consolidated)

Unit

2020

2021

1)

2022

Category

Contents

Unit

2020

2021

2022

Customer

Turnovermillion KRW

35,644

211,184

240,671

Shareholders
and Investors

Dividends, Interest
Expensesmillion KRW

9,844

21,90826,918Partner

Purchase cost,
outsourcing service cost

million KRW

28,006

145,570

187,716

Employees

Wages, retirement
million KRW
benefits, welfare benefits,
Stock compensation

10,24030,250101,719

Government/
NGO

Taxes and dues, corporate million KRW
tax expenses(3,865)59,790(10,021)

2020

2021

2022

Total assets

million KRW

321,988 1,027,300 1,429,831

Total liabilities

million KRW

52,853

383,599

895,503

Total capitalmillion KRW

269,136

643,701

534,328

Income Statement Operating revenue(Consolidated)
Operating expenses

Statement offinancial position(separate)

Creation and Distribution of Economic Value

million KRW

126,705

334,983

463,492

million KRW

139,166

237,632

548,430

Operating Profit (Loss)million KRW(12,461)

97,351 (84,938)

Net Income (Loss)million KRW(17,984)

308,091 (185,756)

Total assets

million KRW

219,533

664,563566,776

Total liabilities

million KRW

21,972

85,181

154,740

Total capitalmillion KRW

197,560

579,381

412,036

Government Subsidy

million KRW

35,644

211,184

240,671

Category

Contents

million KRW

44,725204,198

371,639

Tax relief and deduction

million KRW

-

500

801

Operating Profit (Loss)million KRW(9,081)

6,986 (130,968)

Government
subsidy

Subsidy

million KRW

107

191

-

Net Income (Loss)million KRW(18,126)

335,631 (150,889)

Income statement Operating revenue(separate)
Operating expenses

1) Based on Wemade’s separate sales

Unit

71

ESG DATA Fact Book

Financial and Governance PerformanceIntellectual Property
Year

2020

2021

2022

Category

Registration

Compliance Status
TrademarkPatentDomestic

Overseas

Domestic

Overseas

71

90

18

-

Copyright(program, art)

Category

19

Unit

2020

2021

2022

Total amount of fines for violation of
the law

million KRW

0

0

0

Number of cases of non-monetary
sanctions for violation of laws andregulations

cases

0

0

0

Application

2

4

-

-

-

Registration

70

90

18

-

19

Application

4

3

-

-

-

Registration

83

171

18

-

19

Corruption-related Reports

Application

11

451

1

-

-

Category

Unit

2020

2021

2022

Number of confirmed corruption reports

cases

0

0

0

Number of disciplinary cases forconfirmed corruption

cases

0

0

0

1)

1) Number of reports filed by the internal reporting center

72

ESG DATA Fact Book

Environmental Performance1)
Energy Management

Greenhouse Gas Management

Category

Unit

2020

2021

2022

Category

Unit

Total energy use

TJ

26.83

35.76

44.86

Total greenhouse gas emissions (Scope 1 + 2)

tCO2eqDirect energy
usage

Gasoline

TJ

-

-

1.11

Scope 1 emissions

tCO2eq

Diesel

TJ

-

-

0.12

Scope 2 emissions

tCO2eqIndirect energy
usageElectricity

TJ

20.90

27.19

34.51

Greenhouse gas emission intensity

Heat & Steam

TJ

5.93

8.57

9.12

TJ/100 million KRW

0.08

0.02

0.02

Energy use intensity

2020

2021

2022

1,206.56 1,609.57 2,075.22
-

-

83.37

1,206.56 1,609.57 1,991.85

tCO2eq/100
million KRW

3.39

0.76

0.86

Category

Unit

2020

2021

2022

Waste Management
Water Resource Management
Category

Unit

2020

2021

2022

Total waste discharge

Ton

80.58

82.62

111.13

Total water intakeTon

13,306

16,764

17,070

Ton

80.58

82.62

111.13

Water reuse amountTon

1,031.70

715.50548.75

Discharge by General waste discharge
type
Designated waste discharge

Ton

-

-

-

Waste incineration throughput

Ton

47.58

43.62

44.13

Waste landfill throughput

Ton

-

-

-

Amount of recycled waste

Ton

33.00

39.00

67.00

Waste
throughput
1) Wemade’s environmental performance includes the performance of Wemade, Wemade Max, Wemade M,
Wemade XR, Wemade Plus, ChuanQi IP, and This Minds War*, all of which companies are headquartered in
Wemade Tower.
* Since This Means War was established in 2022, only the data from 2022 was reflected.

73

ESG DATA Fact Book

Social Performance1)
New and Retired Employees

Personnel Status
Unit

2020

2021

2022

Category

Total number of employees

persons

706

681

1,044

GenderMalepersons

493

480

711

No. of new hires(by gender)

Femalepersons

213

201

333

Korea

persons

704

680

1,025

Overseas

persons2

1

19

persons

673

661

1,011

Retirement rate
Retirement rate(by gender)

Category

Nationality

Employment No fixed termTypeemployees
Fixed-term employee

persons

33

20

33

Full-time employees

persons

706

681

1,044

Part-time employee

persons0001) Wemade’s social performance includes the performance of Wemade, Wemade Play, Wemade Max,
Wemade M, Wemade XR, Wemade Plus, ChuanQi IP, and This Minds War*.
* Since This Means War was established in 2022, only the data from 2022 was reflected.

No. of new hires(by age)

Retirement rate(by age)

Unit

2020

2021

2022

Male

persons

109

165

355

Femalepersons

73

69

196

30 and under

persons

51

85

170

Between 30–50

persons

130

147

372

50 and overpersons

1

2

9

%

14.59

31.13

19.92

Male

%

67.96

62.74

67.31

Female

%

32.04

37.26

32.69

30 and under

%

23.30

21.23

23.08

Between 30–50

%

74.76

78.30

72.60

50 and over

%

1.94

0.47

4.33

74

ESG DATA Fact Book

Social Performance2)

Parental Leave Statistics

Employee Training Statistics

Category

Unit

No. of employees using parental leave

Rate of employees who return tocompany after parental leave

2020

2021

2022

Male

persons1

2

2

Femalepersons

6

6

8

Male

%

-

50

0

Female

%

100

75

100

Rate of people who stay with the company Malefor 1 year or more after parental leave
Female

%

-

-

0

%

100

100

85.71

2020

2021

2022

No. of employees who completed training to improve persons
awareness of people with disabilities in the workplace

568

658

1,044

No. of employees who completed sexual harassment
prevention training in the workplacepersons

651

704

1,065

No. of employees who completed workplace bullying
prevention training

persons

636

658

1,041

No. of employees who have completed personal
3)
information protection training

persons

198

472

736

Category

Unit

Employee Training Expenses

Diversity
Category
1)

Current status of Percentage of female managers
female workforce
No. of female managers
Total number of managers
Incidents of discrimination that occurred during thereporting period

Unit

2020

2021

2022

Category

Unit

2020

2021

2022

%

9.17

12.28

13.00

Total cost of training

KRW

17,456,750

10,991,000

40,509,209

persons

10

14

29

Average training cost per person

KRW

24,72616,14038,802

persons

109

114

223

cases

0

0

0

1) “Manager” refers to those in the positions of team leader or higher.
2) The figure is based on the number of employees at the time of training.
3) This includes achievements of Wemade, Wemade Play, Wemade M, Wemade XR, Wemade Max, ChuanQi
IP, and This Means War.

75

ESG DATA Fact Book

Social Performance
Performance Evaluation

Social Contribution
Category
Social contribution &investment amount

2020

Unit
Social contribution
budget

KRW

2021

2022

292,242,600 293,400,600 100,000,000

Company donation KRW

478,133,600 379,188,600 104,000,000

Amount raised by
employees

KRW

14,109,000 14,212,000

Total amountKRW

3,809,000

784,485,200 686,801,200 207,809,000

Employee-participating No. of participants persons
Volunteer Activities
Participation time hours

116

588

71

232

1,176

142

Information Security

Unit

2020

2021

2022

Male

%

100

100

100

Female

%

100

100

100

Category

Unit

2020

2021

2022

Percentage of employees covered by collective
bargaining agreements

%

100

100

100

Unit

2020

2021

2022

million KRW

0

0

0

Category
Percentage of employees who received
regular performance evaluation

Labor Relations

Marketing and Labeling2020 2021 2022

Category

Unit

Category

Complaints substantiated Complaints raised externally andas customer information substantiated by the organization
breachComplaints substantiated by authorities

cases

0

0

0

Violation of The amount of fines and penalties
labeling laws for violations of the law

cases

0

0

0

No. of warnings for violation of laws

cases

0

0

0

Total number of leaked/stolen/lost customer data incidents

cases

0

0

0

No. of autonomous code violations

cases

0

0

0

No. of information security violations or cyber security incidents

cases

0

0

0

Violation of The amount of fines and penalties
million KRW
marketing- for violations of the law
related laws
No. of Warnings for violation of laws
cases

0

0

0

0

0

0

No. of autonomous code violations

0

0

0

cases

76

GRI Content Index

Universal Standards: General Disclosures (GRI 2)
Topic

MetrixDisclosure

Organization andReporting Practices

2-1.

Organizational details

6

2-2.

Entities included in the organization’s sustainability
reporting

2, 6

2-3.

Reporting period, frequency, and contact point

2

2-4.

Restatements of information1)

-

2-5.

External Assurance

2, 81

2-6.

Activities, value chain, and other business
relationships

6, 7

2-7.

Employees

73

2-8.

Workers who are not employees

2-9.

Activities andWorkers

Governance

Page

Topic

MetrixDisclosure

Page

Governance

2-17.

Collective knowledge of the highest governance
body

66

2-18.

Evaluation of the performance of the highest
governance body

67

2-19.

Remuneration policies

67, Business Report

2-20.

Process to determine remuneration

67, Business Report

2-21.

Annual total compensation ratio

2-22.

Statement on sustainable development strategy

5, 27-28

2-23.

Policy commitments

44, 6373

2-24.

Embedding policy commitments

44-45, 63-64

Governance structure and composition

65-66

2-25.

Processes to remediate negative impacts

44-45, 63-64

2-10.

Nomination and selection of the highest
governance body

65-67

2-26.

Mechanisms for seeking advice and raisingconcerns

64

2-11.

Chair of the highest governance body

65

2-27.

Compliance with laws and regulations

71

2-12.

Role of the highest governance body in overseeing
the management of impacts

67

2-28.

Membership associations2)

-

2-13.

Delegation of responsibility for managing impacts

67

2-29.

Approach to stakeholder engagement

2-14.

Role of the highest governance body insustainability reporting

67

2-30.

Collective bargaining agreements

2-15.

Conflicts of interest

63-67

2-16.

Communication of critical concerns

45, 64

Strategy, Policies
and Practices

Stakeholder
Engagement

Business Report

20-24
75

1) Not applicable because it’s the first report to be published.
2) Wemade is a member of Korea Association Of Game Industry, KOSDAQ Listed Companies Association,
Korea Software Property-Right Council, Korea Internet Corporations Association, Chief Information
Security Officer, Korea CPO Forum, CONCERT, and UNGC.

77

GRI Content Index

Topic Standards: Economic Performance (GRI 200)

Topic Standards: Environment Performance (GRI 300)

Topic

MetrixDisclosure

Page

Topic

MetrixDisclosure

Page

Economic
Performance

201-1

Direct economic value generated and distributed

70

Energy302-1

Energy consumption within the organization

72

201-2

Financial implications and other risks andopportunities due to climate change

31

302-3

Energy intensity

72

201-4

Financial assistance received from government

70

302-5

Reductions in energy requirements of products
and services

32

Indirect Economic
Impacts

203-1

Infrastructure investments and services supported

Water

303-3

Water withdrawal

72

203-2

Significant indirect economic impacts

Emissions305-1

Direct (Scope 1) GHG emissions

72

Anti-corruption

205-2

Communication and training about anti-corruption
policies and procedures

305-2

Energy indirect (Scope 2) GHG emissions

72

305-4

GHG emissions intensity

72

305-5

Reduction of GHG emissions

306-1

Waste generation and significant
waste-related impacts

306-2Management of significant waste-related impacts

306-3

Waste generated

72

306-4

Waste diverted from disposal

72

306-5

Waste directed to disposal

72

Anti-Competitive
Behavior

57-59
60
63-64

205-3

Confirmed incidents of corruption and actions
taken

71

206-1

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

Business Report

Waste

30-32
33
33, 7278

GRI Content Index

Topic Standards: Social Performance (GRI 400)
Topic

MetrixDisclosure

Page

Topic

MetrixDisclosure

Employment

401-1

New employee hires and employee turnover

73

405-1

Diversity of governance bodies and employees

401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees1)-

Diversity and Equal
Opportunity

405-2

Ratio of basic salary and remuneration of women to
men

46

401-3

Parental leave74

Non-Discrimination

406-1

74

403-1

Occupational health and safety management system

52-53

Incidents of discrimination and corrective actions
taken

403-2

Hazard identification, risk assessment, and incident
investigation

53

Marketing andLabeling

417-2

Incidents of non-compliance concerning productand service information and labeling

75

417-3

Incidents of non-compliance concerning marketing
communications

75

418-1

Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data

75

Occupational Healthand Safety

Training and
Education

403-3

Occupational health services

53-54

403-4

Worker participation, consultation, andcommunication on occupational health and safety

403-6

Promotion of worker health403-9

Work-related injuries

53

403-10Work-related ill health

53

404-2

Programs for upgrading employee skills andtransition assistance programs

49

404-3

Percentage of employees receiving regularperformance and career development reviews

75

53

Customer Privacy

51, 541) Not applicable because there is no temporary or part-time employment contract.

Page
65-66, 74

79

SASB Index

Software & IT Services
Topic

Code

Disclosure

Page

Topic

Code

Disclosure

Page

Environmental
Footprint ofHardware
Infrastructure

TC-SI-130a. 1￼

① Total energy consumed① p.72

Data Security

TC-SI-230a. 1① Number of data breaches① p.75② Percentage grid electricity② p.72② p.75③ Percentage renewable③ p.72② Percentage involving personally identifiable
information (PII)① Total water withdrawn① p.72② Total water consumed② p.72③ Percentage of each in regions with high orextremely high baseline water stress③-

Discussion of the integration of environmental
considerations into strategic planning for data
center needs

p. 27-33

TC-SI-220a. 1

Description of policies and practices relating tobehavioral advertising and user privacy

p. 36-39

TC-SI-220a. 2

Number of users whose information is used forsecondary purposes

p. 75

TC-SI-130a. 2

TC-SI-130a. 3

Data Privacy& Freedom ofExpression

TC-SI-220a. 3
TC-SI-220a. 4

TC-SI-230a. 2

TC-SI-330a. 1
Recruiting &Managing a Global,
Diverse & Skilledworkforce① Number of law enforcement requests for user
information① Not applicable② Number of users whose information was
requested③ Not applicable② Not applicable

List of countries where core products or services
are subject to government- required monitoring,
blocking, content filtering, or censoring

Not applicable

Description of approach to identifying andaddressing data security risks, including use ofthird-party cybersecurity standards.

p. 36-42① Percentage of employees that are foreign
nationals① p. 73② Not applicable② Percentage of employees that are locatedoffshore

TC-SI-330a. 2

Employee engagement as a percentage-

TC-SI-330a. 3① Percentage of gender and racial/ethnic grouprepresentation for management① p.65-66, 73② Percentage of gender and racial/ethnic grouprepresentation for technical staff③ p.73

Total amount of monetary losses as a result of legal Not applicable
proceedings associated with user privacy③ Percentage resulting in disclosure
TC-SI-220a. 5③ Number of users affected③ p.75②-③ Percentage of gender and racial/ethnic grouprepresentation for all other employees
TC-SI-520a. 1
Intellectual
Property Protection& Competitive
Behavior
Managing
Systemic Risks
from Technology
Disruptions

TC-SI-550a. 1

TC-SI-550a. 2

Total amount of monetary losses as a result oflegal proceedings associated with anticompetitive
behavior regulations

Not applicable① Number of performance issues① Not applicable② Number of service disruptions② Not applicable③ Number of total customer downtime③ Not applicable

Description of business continuity risks related todisruptions of operations-

80

UN SDGs
Wemade is a global blockchain company that is committed to achieving the Sustainable Development Goals (SDGs) adopted by the United Nations to fulfill its social
responsibilities. Based on the understanding of the purpose and direction of the SDGs, the company has strengthened the connection between the sustainable
development goals, major projects, and social contributions, while carrying out activities to achieve the sustainable development goals presented by the United Nations.

SDGs Commitment
UN SDG 5. Gender Equality

UN SDG 7. Affordable and Clean Energy

UN SDG 8. Decent Work and Economic
GrowthUN SDG 9. Building Infrastructure andPromoting Industrialization

Achieve gender equality
and empower all womenand girls

Ensure access tosustainable energy for all

Promote sustainableeconomic growth, full andproductive employment
and decent work for all

resilient infrastructure· Guarantee equal employment opportunities· Efficient energy use· Operation of childbirth support system· Development of environmental impact reduction
service· Establishment and expansion of talentdevelopment pipeline· Expansion of technology base through shared
growth· Continued expansion of the number of
employees· Promote industry-academia cooperation
projects

UN SDG 10. Reduce Inequalities

UN SDG 12. Responsible Consumption and
Production

UN SDG 13. Climate Action

UN SDG 16. Peace, Justice, and Strong
Institutions

Reduce inequality within
and among countries

Ensure sustainableconsumption andproduction patterns

Take urgent action tocombat climate change
and its impacts

Provide access to justicefor all· Global child education support· Publication of Wemade Sustainability Report· Enactment of Wemade Code of Ethics· Expansion of diversity and inclusion· Install additional in-house separate collectionboxes· Establishment of environmental management
strategy· Practice environmental impact reduction
activities

Build resilient
infrastructure and promote
inclusive and sustainableindustrialization· Operation of the Corporate Ethics CounselingCenter81

Independent Assurance Statement

To readers of Wemade Sustainability Report 2022

As for the reporting boundary, the engagement excludes the data and information of
Wemade’s partners, suppliers and any third parties.

Introduction
Korea Management Registrar (KMR) was commissioned by Wemade to conduct an
independent assurance of its 2022 Sustainability Report (the Report). The data and its
presentation in the Report is the sole responsibility of the management of Wemade.
KMR’s responsibility is to perform an assurance engagement as agreed upon in ouragreement with Wemade and issue an assurance statement.
Scope and Standards
Wemade described its sustainability performance and activities in the report. Our
Assurance Team carried out an assurance engagement in accordance with theAA1000AS v3 and KMR’s assurance standard SRV1000. We are providing a Type 1
and moderate level assurance. We evaluated the adherence to the AA1000AP (2018)
principles of inclusivity, materiality, responsiveness and impact. The opinion expressedin the Assurance Statement has been formed at the materiality of the professional
judgment of our Assurance Team.
The detailed indicators of material topics derived through the double materiality test
procedures are as follows.
■ GRI Sustainability 2021 Reporting Standards■ Universal Standards■ Topic Specific Standards- GRI 401 : Employment- GRI 418 : Customer Privacy

Approach
To perform an assurance engagement within an agreed scope of assessment using thestandards outlined above, our Assurance Team undertook the following activities aspart of the engagement.
■
■
■
■
■
■

reviewed the overall report;
reviewed materiality assessment methodology and the assessment report;
evaluated sustainability strategies, performance data management system, andprocesses;interviewed people in charge of preparing the report;reviewed the reliability of the report’s performance data and conducted data
sampling;
assessed the reliability of information using independent external sources such as
Financial Supervisory Service’s DART and public databases.

Limitations and Recommendations
KMR’s assurance engagement is based on the assumption that the data andinformation provided by Wemade to us as part of our review are provided in good faith.
Limited depth of evidence gathering including inquiry and analytical procedures andlimited sampling at lower levels in the organization were applied. To address this, wereferred to independent external sources such as DART and National Greenhouse
Gas Management System (NGMS) and public databases to challenge the quality andreliability of the information provided.

82

Independent Assurance Statement

Conclusion and Opinion
Based on the document reviews and interviews, we had several discussions with
Wemade on the revision of the report. We reviewed the report’s final version in orderto make sure that our recommendations for improvement and revision have beenreflected.
Based on the work performed, it is our opinion that the report applied the Core Optionof the GRI Standards 2021. Nothing comes to our attention to suggest that the Report
was not prepared in accordance with the AA1000AP (2018) principles. The opinion ofthis assurance team on the principle is as follows.
Inclusivity
Wemade has developed and maintained different stakeholder communication
channels at all levels to announce and fulfill its responsibilities to the stakeholders.
Nothing comes to our attention to suggest that there is a key stakeholder group left
out in the process. The organization makes efforts to properly reflect opinions andexpectations into its strategies.
Materiality
Wemade has a unique materiality assessment process to decide the impact of issues
identified on its sustainability performance. We have not found any material topics left
out in the process.

to suggest that data and information disclosed in the Report do not give a fair
representation of SK chemicals’ actions.
ImpactWemade identifies and monitors the direct and indirect impacts of material topics
found through the materiality assessment and quantifies such impacts as much as
possible.
Competence and Independence
KMR maintains a comprehensive system of quality control including documented
policies and procedures in accordance with ISO/IEC 17021·2015 - Requirements forbodies providing audit and certification of management systems.
This engagement was carried out by an independent team of sustainability assurance
professionals. KMR has no other contract with Wemade and did not provide any
services to Wemade that could compromise the independence of our work.

June 2023, Seoul Korea

ResponsivenessWemade prioritized material issues to provide a comprehensive, balanced report ofperformance, responses, and future plans regarding them. We did not find anything

CEO

83

Greenhouse Gas Assurance Statement

Introduction

Scope of Assurance

DNV Business Assurance Korea Ltd. (DNV) was commissioned by Wemade Co.,
Ltd. (Wemade) to verify the Wemade’s greenhouse gas emissions for the calendar
year 2022 based upon a limited level of assurance. Wemade is responsible for the
preparation of the GHG emissions on the basis set out within the guidelines on the
ISO 14064-1:2018 (greenhouse gases - Part 1: Specification with guidance at theorganization level for quantification and reporting of greenhouse gas emissions andremovals), the WRI/WBCSD GHG Protocol:2004, and the IPCC Guidelines: 2006. DNV
expressly disclaims any liability or responsibility for any decisions, whether investment
or otherwise, based upon this assurance statement.

The GHG emissions and energy consumption data covered by our examination
comprise Direct emissions (Scope 1 emissions) and Energy indirect emissions (Scope 2
emissions) from Wemade boundary of the report.

Verification Approach
The verification has been conducted by DNV on June 2023 and performed inaccordance with the verification principles and tasks outlined in the guidelines on the
ISO 14064-3:2019 Greenhouse gases – Part 3: Specification with guidance for theverification and validation of greenhouse gas statements. We planned and performed
our work to obtain all the information and explanations deemed necessary to provide
us with sufficient evidence to provide a reasonable verification opinion concerning thecompleteness of the emission inventory as well as the reported emission figures. We
have confirmed the following as part of the verification process.
· Wemade’s greenhouse gas inventory report(Activity record input data, greenhouse gas emission calculation results, parameters)· Organizational boundary: Wemade Tower· Managemental boundary: Scope 1 (mobile combustion), Scope 2 (purchased
electricity and steam)Conclusions
As a result of the verifying the information described above, in our opinion nothing hascome to our attention that would cause us to believe that the GHG emissions set out in
Wemade’s report contains grave errors or not fairly stated. Wemade’s greenhouse gas
emissions in 2022 were confirmed as follows.
GHG Emissions of Wemade in 2022
Company Name
Wemade(Unit: ton CO2eq)

Direct Emissions (Scope 1)

Indirect Emissions (Scope 2) Total Emissions

83

2,075

※ The above GHG emissions may differ by less than ± 1 tCO2eq due to rounding to be reported as integers.
※ Total emissions = direct emissions (Scope 1) + indirect emissions (Scope 2)· Wemade’s process to generate, aggregate and report the GHG emissions data
This Assurance Statement is valid as of the date of the issuance. Please note that thisAssurance statement will be revised if any material discrepancy which may impact on
the Greenhouse Gas Emissions of Wemade is subsequently brought to our attention.

1,992

June 19, 2023
Seoul, Korea

Lee Jang-seo, CEO of
DNV Business Assurance Korea Ltd.