My dear officers and employees of Daesung,

Daesung Group will celebrate the 60th anniversary next year 2007 since its foundation with pure civilian capitals in 1947 as an energy professional company and continuing growth thereafter. For the past 60 years Daesung has grown as a current corporation trusted by people and we are very proud of ourselves as it is all because of the transparent and righteous paths of our management. However, today's world requires corporation with more high standards of ethics. Corporations not based on Ethics Management cannot survive anymore these days. Our announcement of Ethics Management today to increase the morality of corporation has also related with this sense of risk.

Ethics Management has often misused for a while as means of control for officers and employees of corporations or as a fad innovation tool of management. Those who recognize the need for Ethics Management also superficially understands that the relationship between maximization of profits that are the purpose of existence of corporations and Ethics Management. However, ethics of corporations is not a simple moral virtue of morality anymore but is a condition for survival. If the activities of corporations deviate from social, legal, and ethical norms, it is no question that they will lose credibility and thus managerial crisis obviously developed as the result of the reduction of sales.

Like this, ethics is not a hollow slogan but is a real management ideal that determines the survival of corporations. Corporate ethics reinforces competitiveness of corporations, improves profits, and encourages the morals of officers and employees of corporations. Therefore, corporations with high level of ethics naturally make more profits these days. Only when all stakes of customer, shareholder, officer and employee, subcontractor, and local community obtain credibility and when they are all satisfied, a company can become one of the world-class companies.

My dear officers and employees of Daesung,

It is the social responsibility of a corporation to grow by surviving. No company guaranteed of its future safety in unlimited competition system of the global era. A company that cannot accommodate the epochal requirement with flexibility and courage it doomed to perished. We can learn a lesson from the failures of other companies.

An American company, Johnson and Johnson, which is the first company to introduce Ethics Management in 1943, had once a crisis of demise by the accident of poison in Tylenol. At that time, all officers and employees had publicized the details of production process of Tylenol to the press and cooperated fully to the press coverage. In addition, they recalled all products from the shelves and destroyed them. The company could convert the crisis to the opportunity of success by regaining credibility from American consumers through a series of these responding processes. This is the power of Ethics Management.

“ Motorola” also had established Ethics Management against bribes in order to promote a morality of corporation. Moreover, in reality, a director of the company had decided to suspend the transaction in a negotiation in which the company can increase the total company profits by 25%, because a South American government official had requested commissions. The surprising issue is that CEO of the company had accepted the recommendation of such director. It is without a doubt that perception of ethic elevates significantly.

In addition, there are many contrary examples. An American multinational corporation, “Enron” had disappeared overnight after tainting the image of American corporations and after hurting enormous damages to American economy. It is obvious that most Korean companies are not also free from ethical criticism. It is not only problems of Korean businesspersons but also, it is the limit of the era now we are living in. However, no more excuse allowed. We are already living in the world where morality is competitiveness and is a barometer of the growth of corporations.

My dear officers and employees of Daesung,

Daesung Group is proud to adopt Ethics Management. Ethics Management will plant it root deep in all field ranging from education and training of officers and employees to evaluation. We are not jumping on a wagon of other's Ethics Management. We have a long way to go. Daesung had prepared for a long time for the global business and we already have set out some bridgeheads. I emphasize that Ethics Management is not a matter of choice but is a must for us who have dream to become a corporation trusted by global people and ask you several requests like the follows;

First, We have to realize that Ethics Management is our key competitiveness.

Corporations aim to make profits but it achieved by a simple slogan. The only way to survive in borderless unlimited competition is through establishment of trust from society and consumers. It takes long time to establish trust but it can be gone instantly too. Complaints of consumers are now easily shared by forming so-called “cyber power” through the expansion of Internet these days and proliferation of various Internet sits also give burdens to corporate activities. However, this challenge converted into a new opportunity if we armed with sound Ethics Management. I ask your proactive participation in innovation of our consciousness by realizing that the trust of consumers and people is the foundation of competitiveness that is a life of corporations.

Second, Ethics Management is a global trend that we cannot deny.

In order for Daesung Group to respond positively to the rapid changes of corporate environments, we have to settle down ethical corporate culture as soon as possible by autonomous improvement of professional sense of ethics of all officers and employees. Ethics Management of corporations is an only path to receive trust and respect from people as a public organization of the society and therefore, its invisible asset that changed with anything. The reason of appearance of Ethics Management as a Global Standard is also these changes of corporate environment. An international organization is also trying to establish a global standard of Ethics Management through [Ethics Round]. Moreover, in Korea , we are required of ethics and transparency of corporations by the effectuation of PL (Product Liability), improvement of corporate governance structure, introduction of class action, and implementation of autonomous programs. I hope that officers and employees of Daesung Group become principal actors of Ethics Management voluntarily by accommodating the epochal request of Ethics Management.

Third, Ethics Management requires positive and voluntary participation.

We will implement transparent and ethical business activities that customers and market trust by establishing specific implementation strategy of our Ethics Management in the future. However, no innovation can be successful without help from our officers and employees. Corporation is one of the most effective organizations humankind had ever invented. All organizations can maximize their efficiency only when each member of the organizations participates positively and voluntarily. In the utilization of work force in organizations, one plus one can become three or even four instead of two . I ask positive participation of all officers and employees in settling down our Ethics Management through sharing and understanding its purport.

Finally, I will address a few words about the management innovation of our Group.

We are now implementing various innovation activities such as no borrowing management, 6 Sigma management activities, improvement of personnel management, improvement of purchase system, and manual preparation. I would like to emphasize that all these systematic devices can create true and real value only when we implement breathing the same Ethics Management all together. We must change ourselves in order to sail through this turmoil world without impossible prediction. I want our officers and employees to initiate the changes instead of just following these changes and that is the only way that officers and employees as well as Daesung Group can grow concurrently.

My dear Daesung Family,

The current change we confront is Ethics Management.
I close my speech of Ethics Management announcement believing in wisdom and sacrifice of our officers and employees.

Thank you.