close

Eco-Friendly Chemical Material CompanyDongsung Chemical

Leading the sustainable future with living and eco-friendly technology.

Dongsung Chemical has been creating
healthier and more convenient world.

DONGSUNG CHEMICAL

Dongsung Chemical Co., Ltd has manufactured and supplied chemical materials which are necessary for our overall life based on the polyurethane technology.

We have expanded our business territory to diverse areas from shoe material to automobile, electric and electronic materials, and building construction materials and developed the eco-friendly and high functional materials to procure the competitiveness not only in Korea but also in the global market.

Polyurethane resin for shoes by Dongsung Chemical is used for the worldly renowned sports brand and high elastic new polyurethane material is used for the interior material and parts of automobile. Melamine foam which has been commercialized for the first time in Korea can be applied to the engine cover, noise absorbance and insulation materials. SMC material can be applied to the battery for electric cars.

Also, Dongsung Chemical is the business holding company who has devoted to the mutual growth of the group such as the reinforcement of core business, the promotion of new business, and the discovery of growth engine.
We are the leading company of the group who continues 100 years of the history beyond 60 years.
We will raise the brand value of Dongsung and maximize the synergy to accomplish the sustainable growth.

  • CEOLee Man-Woo, Baek Jin-Woo
  • Established in16. 9. 1959 (Established a mother company Dongsung Chemical)
  • Major ProductsPolyurethane, ultra light complex materials, building materials, petroleum and precision chemicals
  • Main Phone No.+82-2-6190-8800, 8700
  • Business Sites
    • H.Q. 8∙10∙11F, 16, Tongil-ro 2-gil, Jung-gu, Seoul, Korea
    • Head Office. 99, Sinsan-ro, Saha-gu, Busan, Korea
    • Shinpyung. 19, Hasinbeonyeong-ro, Saha-gu, Busan, Korea
    • Yeosu. 223-40, Yeosusandan 2-ro, Yeosu-si, Jeollanam-do, Korea
    • Ulsan. 123, Jihwa-gil, Sangbuk-myeon, Ulju-gun, Ulsan, Korea
    • Ochang. 858-24, Hwabok-ro, Ochang-eup, Cheongwon-gu, Cheongju-si, Chungcheongbuk-do, Korea
    • JDS (Jakarta), VDS (Vietnam), GDJ (Guangzhou)
Stock Information
Financial Status

Balance Sheet Unit: million KRW

chemical_Total-assets_eng

FY 2019Y FY 2020Y FY 2021Y
Total Assets 850,518 797,944 818,796
Current assets 389,907 349,755 394,352
non-current assets 460,612 448,189 424,444
Total Liabilities 432,089 370,735 361,793
Current liabilities 302,040 302,394 316,479
non-current liabilities 130,049 68,341 45,314
Total Assets 418,429 427,209 457,003

Income Statement Unit: million KRW

chemical_revenue_eng

FY 2019Y FY 2020Y FY 2021Y
Revenue 825,126 864,010 925,979
Operating profit 51,956 65,016 45,320
Net profit 25,021 37,181 42,392
Disclosure materials

Disclosure materials

Announcement
Management Regulations

1. GENERAL PROVISIONS

1.1 Purpose

The purpose of these regulations is to set forth the necessary matters to manage the disclosure information and matters on disclosure related works and procedure to make accurate, fair and timely disclosure in accordance with applicable laws and regulations for all disclosure information as well as prevent unfair trade by officers and employees of the company.

1.2 Scope of Application

Matters on performance of the disclosure works and management of disclosure information shall follow these regulations with the exception of matters set forth under applicable laws and regulations and the Articles of Incorporation.

1.3 Definitions of Terminologies

(1) “Disclosure information” means disclosure matters and related information that may influence on the investment decision of investors with respect to the company’s management and assets, etc. as provided under the Act on Capital Market and Financial Investment Business (“Act”) and its Enforcement Decree (“Decree”), the Regulations on Issuance, Disclosure and Others of Securities (“Regulations on Issuance Disclosure”) by the Financial Supervisory Commission (“Commission”), the Regulations on Disclosure and Others of Marketable Securities Market(“Regulations of Disclosure”) of Korea Exchange (“Korea Exchange”) and other disclosure matters and related information set forth under applicable laws and regulations.
(2) “Disclosure document” means relevant documents for record and report (including e-document) for disclosure of information to be disclosed and other documents attached thereto.
(3) “Disclosure control system” means relevant activities to manage in accordance with certain control procedure by a relevant internal organization of the company for disclosure information.
(4) “Disclosure control organization” means the representative director, a disclosure officer, a disclosure department, and a business department relating to generation of disclosure information that undertake disclosure related works, such as generation of disclosure information, collection and review thereto, preparation and approval of disclosure documents and others in accordance with these regulations.
(5) “Disclosure officer” means a person registered with the Korea Exchange as a disclosure officer in accordance with Article 88 Section 1 of the Disclosure Regulations in the marketable securities market (“Regulations of Disclosure”) who practically manages disclosure works of the company with the nomination of the representative director.
(6) “Disclosure department” means a department in charge of disclosure works of the company pursuant to the Work and Office Organization Regulations of the company. In this case, the disclosure department shall have two or more persons in charge of disclosure works, who are also registered with the Korea Exchange in accordance with Article 88 Section 2 of the Regulations of Disclosure.
(7) “Business division” means an organization unit that generates disclosure information and performs related works thereto.
(8) “Regular disclosure” means submission of business reports, semi-annual reports, or quarterly reports to the FSC or the Korea Exchange for matters on overall corporate management, such as, business of the company, financial situation, management records and others in accordance with Articles 159, 160, and 165 of the Act, Articles 168 and 170 of the Decree, Article 4-3 of the Regulations on Issuance Disclosure, and Article 21 of the Regulations of Disclosure.
(9) “Prompt disclosure” means reporting or disclosure of important facts, contents of decision and others that may influence on the investment decision related to the management activities of the company as the disclosure of important management matters to the Korea Exchange in accordance with Article 7 of the Regulations of Disclosure.
(10) “Fair disclosure” means disclosure to the Korea Exchange in order for general investors to be informed of applicable information simultaneously (or up to the time of selective provisions to specific persons) in accordance with Articles 15 and 16 of the Regulations of Disclosure and the Operation Standards of the Fair Disclosure of Korea Exchange where the company selectively provides any information that is neither subject to obligatory disclosure under applicable laws and regulations nor within the term of the disclosure period.
(11) “Inquired disclosure” means disclosure made at the request of the Korea Exchange for confirmation of fact on any rumor and press report relating to the company or presence of important information in accordance with Article 12 of the Regulations of Disclosure.
(12) “Voluntary disclosure” means disclosure on the Korea Exchange that the company voluntarily makes pursuant to Article 28 of the Regulations of Disclosure and Article 8 of the Detailed Rules of Implementation for release of information other than those released as prompt disclosure as provided in Paragraph 9 for the following cases: Release of the information may substantially impact disclosure corporate management, assets and investment decision of investors, or disclosure on the information is considered to be necessary despite the fact that it is not subject to the information category requiring obligatory disclosure.
(13) “Issuance disclosure and major reports” means submission of relevant reports to the FSC in accordance with Article 119, Articles 121 to 123, Articles 130 and 161 of the Act, Article 120 to 122, Articles 137 and 171 of the Decree, Articles 2-4, 2-6, 2-14, 2-17, 4-5, 5-8 to 5-10, and 5-15 of the Regulations of Issuance Disclosure with respect to matters on organizational change of the company or matters on acquisition, disposition and others of equity stocks, such as subscription and sales of securities or merger, spin off, business transfer and others under applicable laws and regulations.
(14) “Subsidiary” means one defined under Article 2 Paragraph 1-3 of the Monopoly Regulation and Fair Trade Act and Article 2 Section 1 Paragraph 2 of the Financial Holding Company Act, and “Subordinate company” means one in the dominant-subordinate relationship under Article 1-2 Paragraph 2 of the Act on External Audit of Stock Companies (Newly established on December. 27, 2013).
(15) With respect to the terminologies used under these regulations shall follow the terminologies used under applicable laws and regulations and these regulations unless otherwise specially set forth under these regulations.

2. BASIC AUTHORITY AND RESPONSIBILITY OF DISCLOSURE CONTROL ORGANIZATION

2.1 Representative Director

(1) The representative director shall oversee relevant works with respect to the disclosure control system.
(2) The representative director shall carry out the following required works to ensure efficient operation of the disclosure system.
① To build disclosure system and establish operational policy.
② To establish authorities, responsibilities and reporting systems for disclosure.
③ To conduct final review of the operational state of the disclosure control system, and conduct final review of the operational performance
④ To approve overall regulations for disclosure control system.
⑤ Other matters as required.

2.2 Disclosure Officer

(1) The disclosure Officer shall be designated by the representative director.
(2) The disclosure officer shall overseas the affairs relating to design and operation of the disclosure control system and carry out the following works.
① Affairs on review, approval and implementation on disclosure information and disclosure documents (including related documents. The same will apply to all the other provisions.)
② Actions required to comply with applicable laws and regulations relating to disclosure by officers and employees (implementation of relevant training, preparation of instructions, etc.)
③ Identification on risk factors in disclosure information and establishment and implementation of response plans
④ Continuous monitoring of the disclosure control system, regular review of operational state, and evaluation of operational performance
⑤ Determination of disclosure and its scope on the matters not specifically required to be disclosed under applicable laws and regulations
⑥ Command and supervision of the disclosure department
⑦ Establishment and implementation of training plans on officers and employees with respect to disclosure works
⑧ Approval of detailed instructions, etc. for implementation of applicable regulations relating to design and operation of the disclosure control system
⑨ Other matters recognized by the representative director to be required for the disclosure control system
(3) The disclosure control organizations shall have the following authorities when performing duties.
① To require submission of various books and records with respect to disclosure matters and to peruse them
② To listen to opinions on officers and employees in a relevant accounting or audit department, and other departments related to generation of disclosure information and preparation of disclosure documents
(4) When required for performance of duties, the disclosure officer may consult a relevant officer or an auditor (an audit member), or hear opinions of external professionals.

2.3 Disclosure Department

(1) The representative director shall organize a department(s) in charge of disclosure works including a person having professional knowledge on disclosure works. Two persons shall be designated as disclosure officers in accordance with Article 88 Section 2 of the Regulations of Disclosure.
(2) The disclosure department shall be under the command of the disclosure officer with respect to disclosure matters and carry out the following works:
① Collecting and reviewing various disclosure information
② Preparing disclosure documents and implementing disclosure
③ Establishing annual disclosure work plans and checking progress status
④ Reviewing necessary measures and reporting to the disclosure officer, to ensure compliance of applicable laws and regulations, such as frequent checks on enactments of and amendments to applicable laws and regulations relating to disclosure
⑤ Identifying, evaluating, and managing risks from disclosure at the entire corporate level
⑥ Any other matters that the representative director or the disclosure officer finds necessary.

2.4 Business Department

(1) Upon the occurrence of each of the following events, the head of each business department shall timely send information to the disclosure department:
① Where any disclosure matters prescribed under applicable laws and regulations on disclosure have occurred or are expected to occur;
② Where a matter of important impact on corporate business management occurs, but it is unclear whether to disclose the information;
③ Where there is any cause of cancellation or modification for matters previously disclosed occurs or is expected to occur; or
④ Where the disclosure officer or the head of the disclosure department otherwise requests disclosure of information.
(2) When the disclosure information of Sections above is provided, copies on relevant contents, required proof, reference materials and others are sent to the disclosure department in writing and the original copy thereof shall be kept. However, when it is urgent or there is a certain unavoidable reason, it can be sent in a way other than documents and a copy containing relevant content may be sent in writing afterwards.

3. DISCLOSURE CONTROL ACTIVITY AND OPERATION

3.1 Regular Disclosure

3.1.1 Regular Disclosure

The company shall prepare the regular disclosure documents and file them with the FSC and the Korea Exchange within a relevant disclosure period.

3.1.2 Disclosure Department

(1) The head of the disclosure department shall confirm relevant disclosure matters, a disclosure schedule, etc. for implementation of disclosure as regular disclosure matters, establish annual disclosure work plans, and implement regular disclosure within a statutory deadline for submission with approval of the disclosure officer.
(2) If necessary for regular disclosure, the head of the disclosure department may request the head of each business department to provide information and documentary evidence relating to preparation of regular disclosure documents, in which case the relevant business department shall comply therewith. However, if the head of the business department determines that a relevant matter requires significant security or that confidentiality must be maintained, he or she shall report it to the disclosure officer and follow the instructions.
(3) The head of the disclosure department shall prepare regular disclosure documents in accordance with the format and completion method as prescribed by relevant laws and submit them to the disclosure officer by a statutory deadline for submission specified in a relevant annual disclosure work plan. In this case, if the head is unlikely to meet the deadline for submission, he or she shall report it to the disclosure officer, obtain instructions, and implement necessary measures.
(4) The head of the disclosure department shall implement regular disclosure within a statutory deadline for submission with approval of the disclosure officer. However, when approval of the representative director is required under applicable regulations, certificate of approval made by the representative director shall be attached.

3.1.3 Disclosure Officer and Representative Director

(1) The disclosure officer shall check the work status required for disclosure implementation for regular disclosure, and take necessary measures when he or she is unlikely to meet a statutory deadline for submission.
(2) The disclosure officer shall review the regular disclosure documents submitted by the head of the disclosure department in order to check whether they are appropriately prepared in accordance with applicable laws and regulations and the information released by regular disclosure is accurate and complete, report it to the representative director, obtain approval from the representative director, and cause the head of the disclosure department to make disclosure upon approval of the representative director.
(3) The representative director shall check and review the appropriateness of regular disclosure documents submitted by the disclosure officer at the first hand before providing approval and certifications required by applicable laws and regulations.

3.1.4 Ex-Post Examination of the Content of Disclosure

(1) The head of the business department relating to preparation of regular disclosure documents and the head of the disclosure department shall examine the appropriateness of content of the prepared disclosure immediately after making the disclosure.
(2) The head of the disclosure department shall take necessary measures, such as revised disclosure, immediately when any omission or error is found in the disclosed information through ex-post examination.

3.2 Ad-hoc disclosure

3.2.1 Ad-hoc disclosure

The company shall prepare ad-hoc disclosure documents and file them with the Korea Exchange within a relevant disclosure period.

3.2.2 Business Department

(1) Where any ad-hoc disclosure matter has occurred or is expected to occur, or where the cause for cancellation or modification of previously released information as ad-hoc disclosure has occurred or is expected to occur, each business department shall send the information immediately to the disclosure department.
(2) Where the head of the disclosure department requests for submission of relevant supplementary or additional materials with information as provided in Section 1 above, the business department shall immediately respond thereto. However, if the head of the business department finds that certain matters are highly confidential or require a stricter level of security, the head of the business department shall report it to the disclosure officer and follow instructions.

3.2.3 Disclosure Department

(1) Where the disclosure department receives information on ad-hoc disclosure matters from a business department, it shall review whether the information is required to be disclosed, and also review the accuracy, completeness, etc. of the information provided. If necessary, the head of the disclosure department may request the business department to supplement or submit additional materials for information previously provided.
(2) Where the results of review confirm that the information is required to be disclosed, the head of the disclosure department shall prepare documents on the results of information review as well as ad-hoc disclosure forms and provide those documents to the disclosure officer, and implement disclosure in accordance with the disclosure methods prescribed under applicable laws and regulations with approval of the disclosure officer. However, where it is difficult to obtain approval of the disclosure officer due to his or her absence or for any other reason, the head of the disclosure department may implement disclosure on his or her behalf, in which case it shall be reported to the disclosure officer afterwards.
(3) Where the results of review under Section 1 above show that the information is not required to be disclosed, the head of the disclosure department shall prepare the results of review in writing for a relevant reason(s) and relevant information, and report it to the disclosure officer.

3.2.4 Disclosure Officer

(1) The disclosure officer shall review whether the results of review and disclosure documents mentioned in Article 16 Sections 2 and 3 above are prepared appropriately in accordance with applicable laws and regulations and make approval on matters of disclosure.
(2) The disclosure officer shall report important matters concerning ad-hoc disclosure to the representative director.

3.2.5 Ex-post Examination of the Content of Disclosure

The provision of Article 3.1.4 shall be applied with respect to ad-hoc disclosure. In this case, the “regular disclosure documents” shall be considered as the “ad-hoc disclosure documents.”

3.3 Fair Disclosure

3.3.1  Fair Disclosure

The company shall prepare fair disclosure documents and file them with the Korea Exchange within a relevant deadline for disclosure.

3.3.2 Prohibition on Selective Disclosure of Information Subject to Fair Disclosure Person

Any person providing fair disclosure information (it means a person as defined in Article 15 Section 2 of the Regulations of Disclosure) shall not provide fair disclosure matters in a roundabout way (e.g., by indicating various ratios, size changes, etc. to a subject person who receives fair disclosure information prior to the disclosure).

3.3.3 Notes

(1) When fair disclosure is made, in order to allow investors intending to know the detailed information on the content of fair disclosure to easily ask questions, a relevant disclosure officer, a person in charge of disclosure, a relevant department and its contact information relating to the fair disclosure information, etc. shall be specified.
(2) If the KRX requests, a summary of fair disclosure content and website URL shall be stated in the disclosure document submitted to the KRX and posted in the website of the company.

3.3.4 Application with Necessary Modification

The provisions of Articles 3.1.4, and 3.2.2 to 3.2.4 shall be applied with necessary modifications with regard to fair disclosure. In this case, the “Regular Disclosure Documents” under Article 3.1.4 shall be considered as the “Fair Disclosure Documents”, and the “Prompt Disclosure” under Article 3.2.2 to 3.2.3 shall be considered as the “Fair Disclosure.”

3.4 Inquiry Disclosure

3.4.1 Inquiry Disclosure

The company shall prepare inquiry disclosure documents and file them with the Korea Exchange within a relevant deadline for disclosure.

3.4.2 Disclosure Department

(1) Where the head of the disclosure department receives a request for inquiry disclosure from the Korea Exchange, the head of the disclosure department shall immediately verify facts and the existence of important information, prepare disclosure documents, and make inquiry disclosure with approval of the disclosure officer.
(2) The head of the disclosure department may request submission of materials or a statement of opinion to each business department to verify the existence of important information or facts as described in Sections above and a relevant business department(s) shall respond to it. However, when the head of a business department determines that requested information should be maintained with more stringent security measures as well as high confidentiality, the head of the business department shall report it to the disclosure officer and follow relevant instructions.
(3) Where the head of the disclosure department has received a request for inquiry disclosure and made inquiry disclosure stating that they are in the process of making a decision (hereinafter referred to as “non-final disclosure”), the head shall verify facts as well as the progress of problems at hand, and issue revised disclosure after obtaining approval of the disclosure officer within one (1) month from the date of disclosure of not-final facts. However, when it is not possible to issue revised disclosure within one (1) month as described above, relevant disclosure indicating a clear timeline for revised disclosure shall be posted.

3.4.3 Application with Necessary Modification

The provision of Article 3.1.4, the proviso of Article 3.2.3 Section 2, and the provision of Article 3.2.4 shall be applied to inquired disclosure with necessary modifications. In this case, “Regular Disclosure” of Article 3.1.4 shall be considered as “Inquiry Disclosure”, the “Ad-hoc Disclosure” of Article 3.2.4 shall be considered as “Inquiry Disclosure”, the “content of review and disclosure documents under Sections 2 and 3” of Article 3.2.4 Section 1 shall be considered as “the content of verification and disclosure documents of Section 1.”

3.5 Voluntary Disclosure

3.5.1 Voluntary Disclosure

The company may prepare voluntary disclosure documents and file them with the KRX by a relevant due date for disclosure.

3.5.2 Determination of Necessity for Voluntary Disclosure and Collection of Information

(1) If the disclosure officer finds that voluntary disclosure is necessary or cancellation or modification of voluntary disclosure already made is required or expected to be required, he or she may instruct the head of the disclosure department to collect necessary information and prepare disclosure documents.
(2) If the disclosure officer finds that voluntary disclosure is necessary or cancellation or modification of voluntary disclosure already made is required or expected to be required or the disclosure officer gives instructions as described above, he or she may require the head of a relevant business department to provide or submit necessary information or materials.
(3) If the head of a business department finds that voluntary disclosure is necessary or cancellation or modification of voluntary disclosure already made is required or expected to be required or the head of the disclosure department requests provision of necessary information or submission of materials in relation thereto in accordance with the provision above, he or she shall provide such information or materials in writing immediately to the disclosure department under Article 2.4 Section 2.
(4) The head of a relevant business department shall respond immediately to a request from the head of the disclosure department for supplementation or submission of additional materials as set forth above. However, if such information requires significant security or confidentiality, it shall be reported to the disclosure officer for instructions as necessary.

3.5.3 Application with Necessary Modification

The provisions of Articles 3.1.4, 3.2.3, and 3.2.4 are applicable to voluntary disclosure with necessary modifications. In this case, the “Regular Disclosure” of Article 3.1.4 shall be considered as the “Voluntary Disclosure”, the “review whether the information required to be subject to disclosure under Article 3.2.3 Section 1” shall be considered as the “review on necessity of disclosure”, “the information required to be subject to disclosure” of Section 2 of the same Article shall be considered as the “case determined as required for disclosure”, and the “information not required to be subject to disclosure” of Section 3 of the same Article shall be considered as the “case determined as not required for disclosure”, and “Ad-hoc Disclosure” of Articles 3.2.3 and 3.3.4 shall be considered as the “Voluntary Disclosure.”

3.6 Issuance Disclosure and Major Reports

3.6.1 Issuance Disclosure and Major Reports

The company shall prepare issuance disclosure documents and major reports and file them with the FSC within a relevant deadline for disclosure.

3.6.2 Establishment of Business Plan

Where the matter of disclosure and important reports under Article 161 Section 1 Paragraphs 6 to 8 of the Act has already occurred or is expected to occur, the head of the disclosure department shall confirm the required disclosure matters, a disclosure schedule, etc., and establish a business plan for issuance disclosure and major reports including division of works for each document and obtain approval of the disclosure officer and provide them to each business department in writing.

3.6.3 Application with Necessary Modification

(1) The provisions of Article 3.1.2 Sections 2 to 4, and Articles 3.1.3, and 3.1.4 shall be applied to the major matters of report for disclosure in Sections above. In this case, the “Disclosure Plan” of Article 3.1.2 Section 3 shall be considered as the “Issuance Disclosure and Major Reports plan” and the “Regular Disclosure Documents” of Article 3.1.2 Section 3, and Articles 3.1.3, and 3.1.4 shall be considered as the “Issuance Disclosure and Major Reports Documents.”
(2) Articles 3.2.2 to 3.2.5 shall be applied with respect to major matters of report of Article 161 Section 1 Paragraphs 1 to 5, 9 of the Act. In this case, the “Ad-hoc Disclosure” and the “Ad-hoc Disclosure Documents” shall be considered as the “major matter to reports” and “documents for major matters to report”, respectively.

4. Management of Information and Disclosure Risk

4.1 Collection, Maintenance, and Management of Information

Each disclosure control organization shall collect, maintain, and manage necessary information and evidence regarding its responsibilities to ensure accuracy, completeness, fairness, and timeliness of disclosure information.

4.2 Management of Disclosure Risks

(1) The representative director and the disclosure officer shall cause each of the following disclosure risks that may have a negative impact on the accuracy, completeness, fairness, or timeliness of disclosure information to be verified in a timely manner and managed continuously:
① Mistakes in financial information: disclosure risks resulting from inconsistency between actual financial conditions and disclosure details attributable to accounting mistakes or miscommunications among persons in charge
② Omissions, incorrect statements: disclosure risks resulting from omission of mandatory inputs or incorrect statement in disclosure forms due to misunderstandings of statement guidelines or typos
③ Unclear, insufficient, incorrect disclosure statement: disclosure risks resulting from use of jargons or abbreviations which are hard for laymen to understand, the lack of sufficient explanations, inconsistency between actual events and disclosure statements
④ Non-performance of obligations to meet a statutory deadline for disclosure: disclosure risks resulting from non-compliance with a deadline for disclosure due to a delay in providing or approving information, or misunderstandings of the deadline for disclosure
⑤ Omission, misstatement, understatement of disclosure items: omission of disclosure resulting from omission of a disclosure item due to the failure to understand disclosure obligations, or disclosure risks resulting from misstatement, understatement of information that may have a negative impact on the company
⑥ Risks from forecast: disclosure risks resulting from a forecast based on false facts or unreasonable assumptions, or associated with intentional misrepresentation or omission of important items
⑦ Leak of undisclosed information: disclosure risks resulting from unauthorized and selective leakage of undisclosed information by an officer or employee to a privileged person
⑧ Risks associated with changes to the disclosure system: disclosure risks resulting from changes in statutory provisions governing disclosure, government policies, markets in which the company is listed, persons in charge or their responsibilities to relevant regulators or market operators
⑨ Replacement of disclosure administrators: disclosure risks resulting from breakdown of information trails, loss of continuity in disclosure administration accompanying replacement of the disclosure administrator
⑩ Any other disclosure risks that may have a negative impact on disclosure information.
(2) The head of the disclosure department shall list disclosure risk factors following relevant instructions of the disclosure officer and continue to verify and manage such disclosure risks.

5. Prohibition of Insider Trading by Officers or Employees

5.1 General Principles

The company’s officers or employees shall not use any undisclosed important information with respect to works defined under Article 174 Section 1 of the Act (hereinafter referred to as the “undisclosed important information”) in order to use such information for sales of specific securities, etc. defined under Article 172 Section 1 of the Act (hereinafter referred to as the “specific securities, etc.”) and other transactions, or allow third parties to use such information.

5.2 Transaction of Specified Securities by Officers or Employees

(1) Where any officer or employee is intended to trade or otherwise transact specific securities, etc. regardless of use of undisclosed important information, he or she shall give prior notice of such situations to a relevant internal audit officer or a relevant legal officer.
(2) Where the internal audit officer or the relevant legal officer who has received a notice of the Section above finds that the sales or any other transactions are likely to be regarded as using undisclosed important information, he or she may prohibit them. In this case, a relevant officer or employee shall comply therewith.
(3) Where an officer or employee has engaged in sales or any other transactions, he or she shall report the details of transactions (type of specific securities, etc., number of transactions, transaction date) to a relevant internal audit officer or a relevant legal officer within 10 days from the end date of the quarter in which the transaction date belongs.

5.3 Management of Undisclosed Important Information

(1) The representative director or the disclosure officer shall take necessary measures to manage undisclosed important information in accordance with the following requirements
① Any document that contains undisclosed important information shall be kept in safe places to which only the authorized officers and employees may have access.
② Officers or employees shall not discuss undisclosed important information in a place where a third party may overhear the content of conversations, such as elevator, corridor and other open areas.
③ Any document that contains undisclosed important information shall not be placed in an open place and, when documents are to be disposed, it shall be disposed in an appropriate way, such as shredding or other means, in order to ensure that the documents are rendered illegible after disposal.
④ Officers or employees shall maintain confidentiality both in and outside of the company for undisclosed important information they hold.
⑤ Electronic transmissions of documents by fax, PC communications, etc. with respect to undisclosed important information shall be made under security guarantee conditions.
⑥ Copying documents with undisclosed important information shall be avoided if possible, and documents shall be cleared off from conference rooms or work related areas promptly after relevant works are done.
⑦ Spare document copies containing the undisclosed important information shall be completely disposed of by means of shredding, etc.
(2) Officers or employees shall not disclose the company’s undisclosed important information. However, where it becomes unavoidable to share undisclosed important information with the other party, such as transaction partner, legal representative, external auditor, etc, it shall be reported in advance to the disclosure officer or the head of the disclosure department in charge of disclosure, so that the undisclosed information is shared only to a required extent.
(3) Where an officer or employee has disclosed undisclosed important information without intending to do so, it shall be reported without delay to the head of the disclosure department.
(4) Upon receiving a report of such an event as described in Sections above, the head of the disclosure department shall report it to the disclosure officer, receive relevant instructions, and take necessary measures, such as making fair disclosure.

5.4 Undisclosed Important Information of Affiliated Companies

The provisions of Articles 5.1 to 5.3 shall be applied with respect to prohibition on officers’ and employees’ use of undisclosed important information regarding affiliated companies.

5.5 Return of Trading Gains, etc.

(1) Officers or employees listed in the followings shall return any gain they have made by purchasing particular shares and then selling them off within 6 months, or selling shares within 6 months after buying them for gains to the company under the provision of Article 172 of the Act.
① Any employee engaging in works of establishment, modification, promotion, disclosure, and other related works for matters subject to disclosure of major reports under Article 1.3 Section 13
② Any employee engaging in finance, accounting, planning, R&D related works
(2) The head of the disclosure department shall report to the disclosure officer where he or she receives a request from any shareholder of the company (including any person who owns equity securities or securities deposit certificates other than stock certificate; hereinafter both will be considered as the same.) for returning the gains of the officers or employees who made a short-term trade gains with the company’s stocks (short-swing profits).
(3) The disclosure officer shall take steps required to receive the return of relevant gains, including a claim on lawsuit against a relevant officer or employee within two (2) months from the date of his or her receipt of disclosure as provided in Section above.
(4) The disclosure officer shall post the following matters on the company’s website without delay for two (2) years from the date of his or her receipt of a relevant notification from the Securities and Futures Commission (hereinafter referred to as the “SFC”) regarding short-swing profits taken by the company’s officers or employees, except for cases where such short swing profits have been returned.
① Position of the person who is to return short-swing profits
② Amount of short- swing profits (It means amounts combined for each officer, employee or major shareholders)
③ Date of receipt of a relevant notification from the SFC regarding short-swing profits
④ Plan of a corporate claim for the return of short-swing profits
⑤ Shareholders of a relevant corporation (Including any person who owns equity securities or securities deposit certificates other than the stock certificate; hereinafter they will be considered the same) may request the corporation to claim the return of short-swing profits from the person who has gained profits from the securities trading, and if the claim is not made within two (2) months from the date of request by the corporation, a relevant shareholder may bring the claim on behalf of the corporation.

6. Other Disclosure Control

6.1 Contact with the Press, Including Distribution of Press Release. Etc.

6.1.1 Press Release

(1) Where the press release is to be distributed to the public media, such as media press, the head of each business department shall provide it to the disclosure department in advance and obtain approval of the disclosure officer for distribution. Where the disclosure officer finds that the distribution is required to be reported to the representative director, it shall be reported to the representative director and follow relevant instruction.
(2) When the information provided by the relevant press release is applicable to a matter of fair disclosure under Article 3.3.1, the head of the disclosure department shall prepare fair disclosure documents, obtain the approval of the disclosure officer, and make fair disclosure under Articles 3.3.3 and 3.3.4.

6.1.2 Listening to Opinions

If required, the disclosure officer may hear opinions of professional insight from officers, employees or external experts for information provided by the press release.

6.1.3 Post Inspection of Content of the Press Coverage

The head of a relevant business department and the head of the disclosure department that have generated the press release shall conduct post inspection on the content reported after distribution of the press release, and where it has content different from the facts, it shall be reported to the disclosure officer and necessary measures shall be taken in accordance with instructions of the disclosure officer.

6.1.4 Interviews, etc. by the press, etc.

(1) Where a mass media, such as the press, requests the company for interviews, etc., each of the following persons may respond to the interviews. However, in inevitable cases, the disclosure officer may designate a relevant person to respond to them.
① Representative Director
② Disclosure officer
③ IR officer
④ Finance officer
(2) Where there is a request for interviews, etc. under the previous Section, the head of the disclosure department in advance shall receive questions from the press, etc. or prepare the content of expected questions and answers, and provide them to a relevant person who responds to them through the review of the disclosure officer.
(3) Where the head of the disclosure department verifies the content of release of the mass media, such as the press, and finds that there is a report different from the facts, he or she shall report it to the disclosure officer and take measures according to the disclosure officer’s instructions.

6.2 Rumors in Market and Others

6.2.1 Rumors in Market

(1) In principle, the company shall not make any statement on rumors in markets.
(2) The disclosure officer or the head of the disclosure department shall verify whether the content of the market rumors are consistent with undisclosed important information, through inquiry of a relevant department etc., and if they are consistent as such, he or she shall take necessary measures to disclose the relevant information immediately.
(3) The disclosure officer or the head of the disclosure department shall establish and implement appropriate response plans when it is determined as an agenda that may have a negative impact to the interest of the company even if the content of market rumors are not consistent with undisclosed important information.

6.2.2 Request for Information

(1) Where shareholders or interested parties request for disclosure of company related information, the disclosure officer shall review the legitimacy of such a request and determine whether to provide the requested information.
(2) Where information is provided based on a decision of the previous Section, the disclosure officer may listen to the opinions of a relevant internal audit officer or a relevant legal officer to review whether the provided information may have an impact on investor decisions and stock prices. Where the information may be subject to fair disclosure or may have an impact on investment decisions and stock prices, he or she shall take necessary measures to ensure that the information is disclosed to the general public at the same time when (or before) the information is provided to the party who has requested for information.

6.2.3 Investor Relations (IR)

(1) Where a meeting of investor relations, a conference of analysts, or other IRs (hereinafter collectively referred to as the “IR”), the head of a business department in charge of relevant works shall report it to the disclosure officer with the materials to be distributed at IR, the content of expected questions and answers in writing in advance, and obtain approval of the disclosure officer.
(2) In the event of holding a meeting of IR, the head of a business department in charge of relevant works shall notify the date and time, place, subject, etc. of the IR to the head of the disclosure department, and the head of the disclosure department may implement disclosure regarding planned IRs no later than a IR date.
(3) Where undisclosed important information is released through questions and answers during an IR session, the head of the disclosure department shall take necessary measures to get relevant information disclosed to the general public without delay.

6.2.4 Provision of information through website and e-mail

(1) Where the head of each business department is to provide information regarding the company on the homepage, by e-mail, etc., he or she in advance shall give relevant information to the disclosure department and obtain approval from the disclosure officer.
(2) The provisions of Article 6.1.1 Section 2, 6.1.2, and 6.1.3 shall be applied to this Article. In this case, “press release” and “information provided through press release” shall be construed as “information provided through website, e-mail, etc.”

7. Supplementary Rules

7.1 Training

(1) The disclosure officer shall establish and implement an annual training plan with respect to the disclosure control system for all officers and employees of the company in order to fully understand and properly implement relevant works. In this case, for the business department which frequently post disclosure as well as the disclosure department, more specialized education or training shall be provided.
(2) The head of the disclosure department shall check schedules of mandatory training provided by the Korea Exchange or the Korea Listed Companies Association, and ensure to have relevant staff to complete programs, and take necessary measures for them to disseminate educational content they have received to relevant officers or employees.

7.2 Notification to the Company of Disclosed Information of Subsidiaries and Affiliates

(1) The company shall instruct subsidiaries and affiliates to notify the content immediately to the disclosure department if any disclosed information is generated or expected to occur.
(2) The company shall take measures to establish regulations of disclosure information management for subsidiaries and affiliates to conduct efficient disclosure control. In this case, the company shall cause its subsidiary and affiliate to appoint a person in charge of disclosure works. If a subsidiary or affiliate designates or change the person in charge of disclosure works, they should immediately notify the company thereof.
(3) The company may request subsidiaries and affiliates to provide relevant materials to an extent necessary for disclosure works. The company may investigate works and properties of subsidiaries and affiliates if necessary materials cannot be obtained or it is necessary to confirm the content of materials submitted by affiliates. (Newly establish on December 27, 2013).

7.3 Penalties

The company may impose penalties or sanctions on officers or employees who have violated these regulations in accordance with the company’s relevant bylaws.

7.4 Establishment and Repeal of Rules

Establishment and repeal of these regulations shall be undertaken by the representative director.

Addenda

Article 1 (Date of Implementation) These regulations shall be implemented from July 1, 2015.
Article 2 (Repeal of internal information management regulations) The internal information management regulations of the company shall be repealed as these regulations are implemented.

동성그룹의 전 제품은 제품정보 페이지에서 확인할 수 있습니다.
Please check in the Business Field for all affiliates of Dongsung Group and their fields of business.
DongSung Group所有分公司的产业领域请在产业领域中进行查看。