At KOLON INDUSTRIES plants in Ulsan, Gimcheon, Yeosu and Incheon, we will place
priority on environment, safety and health in business operations and do our best
for harmonized relations between humans, nature and business by minimizing the
loss of human lives or property caused in the process of development, production,
use and the scrapping of products.

01_We will continue to check environmental and safety conditions in accordance with internal criteria no less stringent than relevant laws for improvement in such
conditions and prevention of pollutions.

02_We will establish the environment/safety/health management system for
protection of human lives and property, and strive to enhance employees's health
conditions.

03_We will make continued efforts for reduction and recycling of industrial wastes
and pollutants to minimize environmental impact.

04_We will leave open our environment/safety/health guidelines and share relevant information with others for higher transparency, in cases relevant parties ask to
show.

05_We, including employees of subcontractors, will recognize the importance of our roles and responsibilities related to environment and safety, and carry them out faithfully.

We will make concerted effort for the foregoing under supervision by the head of each business unit, who is entrusted with all relevant rights and power from the top
management concerning relevant matters.

1. Guidelines

- Satisfaction of customers' expectations and demands through the supply of
good-quality products
- Maintaining customers' trust in us through continued effort for quality improvement and quality management activities

For such objectives, we will operate the quality management system under ISO 9001. All employees of the Company must keep in mind the importance of the quality
management system at all times and do their best for improvement with a definite
sense of responsibility.

2. Putting objectives into practice

We will select a quality management supervisor for efficient operation of the system and provide the highest possible level of support for him/her.

The quality management supervisor will carry out regular sessions of education for
employees concerning the Company's product quality guidelines and quality
management system.

The quality management supervisor may assess the business that affects quality
management and shall report the effects of the quality management system and associated problems to the top management.

Upon receiving the foregoing report, the top management will take corrective
measures in an effort to attain the objectives of the quality management guideline.

Under the belief that money spent for environmental protection is investment in the
future, we pour effort into installation of facilities for prevention of environmental pollution, improvement of the production process, adoption of new relevant technologies, and training relevant professionals.

1. ISO 14001 certification

On February 13, 2003, we won the ISO 14001 certification from DNV in an effort to
hand down a clean environment to next generations.
The ISO 14001 is an international standard that specifies the actual requirements for an environmental management system, with focus on the structure, responsibility,
process and resources of such a system assigned with development, implementation, review and maintenance of environmental guidelines.

2. Environmental protection activities

1) Facilities to prevent environmental pollution
All business units of KOLON INDUSTRIES are equipped with hi-tech facilities for maintenance of water quality and prevention of air pollution so that the amount of waste
water and emission from the facilities may be kept below the level stipulated in the
Environmental Preservation Act.

2) Responsible Care
The Company joined Responsible Care, an international initiative for environmental
preservation in 1999 to put the idea of environmental management into practice.
Responsible Care is practiced currently in 52 countries, which share a common
commitment to advancing the safe and secure management of chemical products
and processes.

Having won the OHSAS 18001/KOSHA 18001 certifications, the Company is doing its best to maintain an advanced safety/health management system and attain the
goal of no-disaster business operations.

1. OHSAS 18001 / KOSHA 18001 certification

The certification is given to a business engaged in systematic activities to maintain a proper level of safety and health through continued efforts for improvement as part of the entire operation.

2. Safety/health activities

1) TOP diagnosis
It is a periodical activity carried out by a team headed by the plant manager to
check safety factors in the production process at each business unit.

2) Contingency readiness exercise
We do our best to keep our employees and facilities safe. To that end, we carry out periodical contingency readiness exercises against fire or industrial disasters

3) Danger detection contest
A program has been designed to prevent accidents and detect dangerous factors in advance. This goes a long way in enhancing the level of safety mindset on the part of employees.

4) ESH quiz contest
This is an annual event designed to help employees acquire information on
environment, safety and health.

5) Special lectures
These sessions are carried out, inviting outside experts, to help employees take
interest in relevant matters.

In an effort to build our global competitiveness, we continue to make an effort for
improvement in product quality, cost reduction and customer satisfaction.

1. ISO 9001

We won certifications for ISO 9002 in December 1995 and for ISO 9001 in October
2003, and authorized as a business that meets requirements concerning design,
financial inspection, test and after-sales service of products, showing that we have
reached a world-class level of its kind in the world.

2. Quality improvement activities

Small group skills contest
We carry out this session in an effort to foster the corporate culture emphasizing the importance of quality improvement and cost reduction.

01_Environment

Jun. 2002	Citation of an exemplary case in environmental improvement (from the City of Ulsan)
Jun. 2003	Citation of a conspicuous role on the Environment Day (from the Seogu District Office, the City of Incheon) Similar citation (from the North Gyeongsang Governor)
Jun. 2003	Citation of a conspicuous role on the Environment Day (from the Seogu District Office, the City of Incheon)
Dec. 2004	the First Prize of the saving of energy (from the North Gyeongsang Governor)
Mar. 2005	Citation of a conspicuous role on the 13th World Day for Water (from the City of Incheon)
Jul. 2006	Commendation on the Environment Day (from the Seogu District Office, the City of Incheon)
Aug. 2006	Letter of appreciation to Environment Friendly Management (from the Korea National Assembly)
Dec. 2006	Commendation of a model place of environment management (from the North Gyeongsang Governor)
Dec. 2006	Citation for best place concluded VA of saving energy and reducing greenhouse (from the Korea Energy Management Corporation)

02_Safety & Health

Dec. 1996	Award for excellence of Safety Management (the Minister of Labor)
Jul. 1998	Employees showing a conspicuous role in prevention of industrial disasters won prizes (from the Korea Industrial Safety Association).
Jul. 2002	Employees showing a conspicuous role in prevention of industrial disasters won prizes (from the Korea Industrial Safety Association).
Dec. 2002	A prize in exemplary firefighting safety (from the Ministry of Government Administration and Home Affairs.)
Jul. 2004	Industrial Stone Medal. Employees showing a conspicuous role in prevention of industrial disasters won prizes. (from the Korea Industrial Safety Association)
Sep. 2005	Employees showing a conspicuous role in prevention of industrial disasters won prizes. (from the Korea Industrial Safety Association)
Jul. 2006	Employees showing a conspicuous role in prevention of industrial disasters won prizes.
Jul. 2006	Commendation of industrial safety and public health movement (Korea Accupational Safety & Health Agency)
Nov. 2006	Award for excellence of industrial safety & health (Korea Occupational Safety & Health Agency)

03_Number of No-disaster Days