KL 2019sr Eng

KANGWON LAND
Sustainability Report 2019

About this Report
Kangwon Land has been publishing sustainability reports since 2010 to transparently disclose
our sustainability activities and major performances performance results to stakeholders. This
report is the 8th such sustainability report, and wherein we share our commitments to the
economic, environmental, and social activities with our stakeholders by transparently disclosing
our internal and external sustainability management performance.
Reporting Standards
This report is written in accordance with the ‘Core Option’ of the GRI (Global Reporting Initiative)
Standards.
Reporting Period
Kangwon Land did not publish sustainability reports in 2017 and 2018. This report
discloses the business performances of Kangwon Land from January 1 to December 31,
2016. The quantitative performances for the past three years are disclosed to share the
trends. Depending on the significance of the issues, some performances up to March 2020
are included. Kangwon Land will publish sustainability reports annually to increase the
transparency of information and enhance communication with stakeholders.
Reporting Scope
This report covers the business status and performances of Kangwon Land Headquarters head
office and operating worksitesbusiness sites in Gangwon Province, and includescontains some
projects that we are promoting. The Cases thatwhich differ from the reporting boundary and
scope are explained with separate annotations, and information on subsidiaries and affiliates are
partially reported.
Report Assurance
This report is assured by Korea Management Register (KMR), a third-party assurance

organization, to enhance accuracy and reliability of the outcome of the report. Enhancements
and improvement areas suggested by the assurer are reflected in this report.
Cover Concept
The cover has been designed as a paper art to

express Kangwon Land’s commitment to become
“High1 Resort, The National Rest Area”
CONTENTS
02 Introduction 16 Core Values & Issues
About this Report 02 1. Innovation for the Future 18

Table of Contents 03 2. Customer Value 22
CEO Message 04 3. Social Value Creation 26
2019 Highlight 06 4. Safe Resort 38
Overview of Kangwon Land 08 5. Eco-friendly Resort Operation 42
Management Strategy 10
Business Overview 12
46 Sustainability Management 73 Appendices
Sustainability Management 48 Financial Performances 74

Stakeholder Communication 50 Environmental Performances 82
Governance 51 Social Performances 84
Risk Management 53 GRI Index 88
Ethical Management 55 Third-Party Assurance Statement 90
Talent Management 59 GHG Assurance Statement 92
Human Rights Management 63 Memberships in Associations 144
Win-Win Partnership 64 / Awards
Tax Strategy 69
Information Security 70
Materiality Assessment 72
Kangwon Land Sustainability Report 2019
04
CEO Message
Kangwon Land drives innovation

and sustainable growth to become
‘The National Rest Area’
while maintaining the highest
level of ethical practice
based on public trust.
Dear stakeholders,
To achieve the vision of ‘The National Rest Area’, Kangwon Land has focused its resources on
building public trust and promoting mutual growth with abandoned mines.
As the only casino to allow the admission of local residents, Kangwon Land has become the most
sought-after tourist destination boasting of luxurious hotels and convention centers, water park,
golf course, ski resort and condominiums surrounded by scenic nature and a beautiful landscape.
As a responsible corporate citizen, we are paving the way towards a more sustainable future
where people, environment and society grow in harmony. Since we published our sustainability
report in 2010, the first in Korea’s resort industry, we have been solidifying our commitment to
social responsibility and solving issues and challenges faced by our stakeholders and society in
line with sustainability values (people / local community / future generation / employees).
05
To this end, we pledge to create the following values for our stakeholders:
First, In response to the expiration of the Special Act on the Assistance to the Development of
Abandoned Mine Areas in 2025, we are committed to strengthening our foundation for
we will bring changes and transform
independent operation with the focus on creating new themes and diversifying content in the
into a family-friendly resort where
hotel and leisure sectors. With the grand opening of High1 Water World, the development of a
people are able to enjoy unique
new brand identity, and big data-based target marketing, we are solidifying our position as an all-
contents and experiences.
inclusive family-friendly resort where guests can enjoy their time throughout the year.
Second, In order to regain public trust and strengthen our reputation as an ethical public corporation, we
are committed to innovation and internal control. We maintain our training and management
we will strive for the highest level
systems to internalize ethical practice and raise awareness of our employees so they recognize
of ethical practice based on
integrity and ethics as an integral part of survival. By establishing recruitment guidelines and cross-
public trust.
organization audit, we are implementing strong anti-corruption policy on HR, budget and purchase
practice to ensure transparency and fairness in our operation.
Third, Kangwon Land promotes mutual growth and development with every member of our society and
we will support growth and economy. While contributing to the revitalization of the local economy and the quality of living in
self-sufficiency, and create social our local community, we are committed to providing socio-economic support, developing talents
for future generations and strengthening welfare for the socially disadvantaged in Jeongseon,
values for our local community.
Taebaek, Yeongwol and Samcheok. We are also helping our suppliers improve the working
conditions for their employees by providing more stable jobs and considering disadvantaged
employees while supporting maternity and parental care. Going forward, we will take initiatives in
serving as a cornerstone for the local economy while creating shared values for our stakeholders.
Fourth, We have implemented a comprehensive disaster control system to ensure the safety of our
we will make our resort safe guests and employees while raising safety awareness. By taking initiatives through safety forecast,
work suspension request, and ladder certification processes, we are dedicated to identifying
and eco-friendly.
and managing risks. We are also contributing to the protection of our eco-system for future
generations. With a focus on minimizing emissions of pollutants and promoting the recycling of
resources, we are reducing our environmental footprint for the next generation.
Sustainability cannot be achieved by a few people alone. Kangwon Land will continue its efforts
in making our future more sustainable while maintaining close communication and cooperation
with our stakeholders. We sincerely appreciate your continued interest and support.
Thank you.
CEO, Kangwon Land
Moon Tae-Gon
06
2019 Highlight
Promoting equal
Pioneering casino Local-specific jobs
opportunities
technology! are the key!
in supply chain!
By launching our own slot A s part of our efforts to We are dedicated to creating
m a c h i n e s i n t h e g l o ba l support stable employment new jobs that contribute to
market, we are developing and improve the working the local community. In 2019,
our new growth engine for environment in our supply we developed various types of
the future. After introducing chain, we are promoting the job for senior citizens, people
the slot machines that we conversion of temporary jobs with disabilities, women
developed into our casino in to permanent ones. Through and youths with a focus on
2018, we supplied 27 of them a c t i v e e n ga ge m e n t a n d meeting social needs and
to domestic and overseas communication with suppliers, balanced growth in job skills
casinos and signed a deal to we established High1 Partners including tourism, resource
export 92 units in 2019. We through which we hired 434 d e v e l o p m e n t , a n d l o ca l
also promote mutual growth employees from 15 suppliers government cooperation. As
through technical cooperation in the areas of security, vehicle a result, 97 new jobs were
with 15 small companies operation, facilities and laundry created. We are also building
working in the slot machine contributing to creating jobs in an inclusive growth model
manufacturing business. the public sectors, improving by creating jobs in line with
safety management and social needs and supporting
strengthening the foundation vulnerable members of our
for growth into a specialized society.
service provider.
07
Achieved the highest

Bring energy to local ‘The National Rest Area’,
rating in anti-corruption
community! “High1 is coming to you”
policy assessment!
In line with local resources, In order to fulfill our social We are promoting ethical
we are boosting the local responsibility by aligning our culture and raising awareness
economy with a focus on CSR initiatives with the vision by internalizing anti-corruption
tourism industries and of creating ‘The National Rest values. In order to ensure
promoting a virtuous cycle Area’, we provide vacant rooms transparency and fairness in
of attracting resort guests to for socially disadvantaged our HR system, we updated
local tourist destinations. By and social workers during the “Recruitment Guidelines”
diversifying tourism products low seasons. As part of this and strengthened our key
and expanding sales channels room donation program, management process including
as well as providing access 12,366 people stayed in 4,032 donation spending and high
to traditional markets and rooms in 2019 participated in value cash transactions. We
discount offers on resort by more than 400 people on are also encouraging mutual
facilities, we managed to 10 occasions. Going forward, respect to prevent bullying in
increase the number of local High1 Resort will continue our workplace. Thanks to these
tourists who used the products to strengthen our vision efforts, we received the highest
by 27% contributing to total of supporting employees rating in the anti-corruption
sales of KRW 3.54 billion. in the public sectors, local policy assessment.
communities and solving
social issues.
08
Overview of Kangwon Land
Kangwon Land operates the largest four-season family-friendly resort complex under the mission
of boosting local economy of the abandoned mines, improving the quality of life for the local
community, and leading the culture of healthy leisure activities. As the only casino where the
admission of local residents are permitted locals are allowed, Kangwon Land has become the most
sought-after tourist destination boasting luxurious hotels and convention centers, water park, golf
course, ski resort and condominiums surrounded by scenic nature and a beautiful landscape.
General Information Business Performance

(consolidated bases as of Dec. 2019, KRW 100 million)
Company name
Kangwon Land Co., Ltd.
Revenue Operating profit
15,200 501.2 billion

CEO
Moon Tae-Gon
Industry
Casino and Resort
Established on
June 29, 1998 Net profit Tangible / Intangible assets
Type of organization
Public corporation
334.7 billion 13,744
(market-oriented)
Establishment basis
Special Act on Assistance to the
Development of Abandoned
Mine Areas (December 1995, Number of visitors Number of employees
“Special Act”)
HQ address
265 High1-gil, Jeongsun-kun,
4.28 million persons 3,739 persons
Gangwon Province, Korea
History
2003
Apr 2003
Kangwon Land Hotel, Casino,
1998 2013 2018
and Theme Park opened
Jun 1998 Sep. 2003 Sep. 2013

July. 2018
Established Kangwon Land
Listed on the stock market Listed in the Dow Jones
Opened High1 Water World
Corporation Sustainability Index (DJSI)
Sep. 2001 July. 2005

Sep. 2015
Opened Kangwon Land Addiction Launched Kangwon Land’s
Relocated the corporate headquarters
Care Center High1 Golf Course
2001 2005 2015

09
Brand Portfolio
Based on the motifs of ‘landscape’ and ‘petals’, where high peaks and flatlands naturally connect
under the sky, our brand identity is focused around the High1 Resort, which symbolizes an
eco-friendly mountain resort inside heavenly nature and encompasses the Kangwon Land
Convention Hotel, Kangwon Land Casino, Kangwon Land Hotel, High1 CC, High1 Hotel, High1 Ski,
Valley Condominium, Hill Condominium, and Mountain Condominium.
Corporate Brand
Family Brand
CASINO
Business Group Hotel & Condo Leisure & Activity

Business Business
Organizational Structure
organization consists of a Planning Management Division and Sales Marketing Division, along
with 16 offices, 59 teams, and 2 centers. We are establishing a responsible organization that
operates with a high level of innovation by streamlining the structure and removing the
executive officer system. In particular, we strengthened the marketing-oriented sales units to
promote sales in the non-casino sector and created a foundation for a more systematic CSR
operation. Going forward, we will build a solid basis for sustainable growth and earn public trust
through a restructuring process with a focus on jobs and worksites.
Corporate Audit Committee

(Audit Committee Member)
CEO Corporate Audit Office
• Corporate Audit Team 1 (planning audit)

Secretary Team •‌Management Audit Team 2
(management audit)
Vice President • Integrity Audit Team
KLACC Safety & Security Office IT Security Center Surveillance Team
• Resort Security Team

• Casino Security Team
• Industrial Safety Team
Planning & Management Department Sales & Marketing Department
Planning & Business Human Resources Social Value Win-Win Casino Casino
Marketing Office
Coordination Office Strategy Office Management Office Realization Office Partnership Office Support Office Management Office
Financial Facility Information Machine Hotel Leisure Customer
Legal Team
Management Office Management Office Strategy Office Business Office Management Office Management Office Satisfaction Team
10
Business Strategy
As the representative eco-friendly resort complex in Korea, Kangwon Land established ‘Vision
2025’ in order to contribute to the local economic development and raise the living standards of
local communities through the promotion of abandoned mine areas. We also contribute to the
national happiness through social contribution. To this end, we promote safety management,
win-win management, ethical management and innovation as our operational guideline based
on the four core values of safety, mutual growth, trust and innovation. We will realize our vision
of becoming ‘Korea’s representative national rest area that is trusted by the people and grows
together with the abandoned mine areas’ by promoting the four strategic goals: safe and eco-
friendly resort, mutual growth in abandoned mine areas, sound and pleasant casino, and
sustainable innovation management.
Mid- and Long-Term Business Strategy Portfolio
Mission Nurturing the economy in the abandoned mine area to develop the locality and improve
residents’ lives and contribute to the promotion of people’s happiness by leading the leisure culture.
Vision
The national rest area trusted by people, growing together with the abandoned mine area
Core value Safety Mutual Growth Trust Innovation
Management Safety management Win-Win management Ethical management Innovation management

guidelines
Management goals and strategies
Management goal Listed in the Dow Jones Sustainability Index (DJSI)
Comprehensive Contribution to mutual Responsible evaluation Integrity Evaluation:

safety level: S grade growth in abandoned of the gaming Level 1 / Resort and new
/ Number of resort mine areas: S grade industry: S grade business sales:
visitors: 5.45 million KRW 300 billion
Strategic goal Shared growth in Responsible and Sustainable innovation

Safe, eco-friendly resort
abandoned mine areas pleasant casino management
Strategic tasks 1. Realizing a safe resort 4. Creating local jobs 7. Enhancing

‌ the responsible 10. Fair,
‌ transparent
2. Operating
‌ an 5. E
nhancing the vitality of operation of the casino corporate culture
eco-friendly resort the local economy 8. Strengthening
‌ the social 11. Discretionary
‌
3. P
roviding friendly, 6. Contributing
‌ to raising responsibility of addiction responsibility-based
differentiated services the quality of life of local management innovation
residents 9. Strengthening
‌ the 12. S
ecuring a balanced
prevention of illegal growth engine for the
activities future
Performance Goal
2018 2019 2025
Number of resort visitors 3.84 million 4.28 million 5.45 million
Comprehensive safety level 1)
- S grade S grade
Win-win contribution to
- - S grade
1) Self-assessment based on government assessment abandoned mine areas 2)
2) New index, aiming for the highest grade of win- Responsible evaluation of the
S grade S grade S grade
win contribution to abandoned mine areas in 2025, gaming industry
starting from B grade in 2020
Resort and new business sales KRW 162.3 billion KRW 174.9 billion KRW 300 billion
3) ‌Results of weekly anti-corruption policy evaluation
led by the Anti-Corruption & Civil Rights Commission Evaluation of anti-corruption 3)
Grade 2 Grade 1 Grade 1
11
Core Value
Kangwon Land practices our established code of conduct and ethics, which every employee
must follow, as a shared value that is essential in achieving our vision. Based on the four core
values of safety, win-win, trust and innovation, Kangwon Land will create economic and social
value that contributes to the public good.
• Safety is the No. 1 priority for Korea’s representative national rest area, which meets
government policies that emphasize the lives and safety of the people and workers
Safety • (Meaning) BBased on the philosophy of respect for people, safety is always a top priority.
• Pursuing mutual win-win with stakeholders such as regions / customers /

shareholders / employees
Win-Win • (Meaning) Cooperating and coexisting with employees, communities, and residents
• Minimizing side effects of the gambling industry through a responsible casino and
strengthening the business through transparency and fairness
Trust • (Meaning) Fulfilling our responsibilities based on a sense of ownership and sincerity.
• Establishing a sustainable foundation to overcome environmental changes and

temporary measures of the Special Act on Assistance to the Development of
Abandoned Mine Areas.
Innovation • (Meaning) Thinking creatively to respond preemptively to internal and external
environmental changes and strengthen competitiveness.
Management guidelines
Prioritizing the safety of customers and workers

in all management activities
Pursuing joint development

between company
and region through
t
ag ety
en
decision making that

em
an af
W age
m
m S
in m
harmonizes economic
an
-w e
and social values

in nt
m
Et ge
an
em on
hi m
t
ca en
a
en
Managing a fair and

ag ati
l
an ov
transparent public corporation

m Inn
t
trusted by the people
Innovating the existing business

with efficient decision-making
based on creative thinking, and identifying
new businesses to promote continuous growth
12
Business Overview
Business of Kangwon Land

Kangwon Land, based on casino gaming, owns three hotels and three condominiums in the
Kangwon Land resort complex and operates golf courses and a ski resort. Our sales of 2019
reached KRW 1.52 trillion, in which our casino business recorded KRW 1.3422 trillion, and hotel
and leisure business recorded KRW 177.8 billion respectively. In particular, as a result of our efforts
to increase non-casino sales through continuous introduction of leisure content, we achieved the
largest number of resort visitors and sales growth. The total number of visitors to Kangwon Land
reached 4.28 million in 2019, which included 79,000 foreigners. The number of foreign visitors
increased by 16% compared to 2018 by expanding foreign tourist attractions.
Kangwon Land is engaged in a variety of social contribution activities for the local community in
order to achieve our goal of economic revitalization in the abandoned mine area. We are addressing
problems in the local community and building a virtuous cycle through practical contributions
to beneficiaries by fostering future talents, creating jobs, and eliminating grey zones of welfare.
In addition, we are pursuing mutual growth activities that reflect the needs of our suppliers by
promoting communication processes and win-win cooperation programs for suppliers. Furthermore,
as a public corporation that operates a casino, we promote various policies with the Kangwon Land
Addiction Care Center to minimize social side effects and establish a healthy game culture.
Business Area
Hotel Convention
Hotel Leisure
business business
Golf
Water
Condo World
Ski
Major Affiliates
Established in Dec 2019. Comprehensive building

management and facility maintenance business
High1
of Kangwon Land including vehicle services such
Partners
as parking management, valet, and member
customer transportation
High1 Operates a railroad-themed park resort that

ChooChoo includes incline train, rail bike, train park, kids’
Casino
Park café, condo, etc.
business
13
Four Seasons Resort
High1 Resort
Surrounded by scenic nature, High1 Resort is a

recreational resort complex with a world-class
ski resort, golf course and condominiums. It is
a resort complex with a casino for local guests
and hotels. In July 2018, High1 Water World was
opened to provide a family-friendly experience
through the year.
Status of Operating Facilities

(As of December 2019)
Ski Golf Water World
18 slopes
18 holes / 9 attraction
3 gondolas pools
par 72
6 lifts 7 slides
course
773 snow extended 14 spas
blowers 6,592m 4 docks
2 ski houses
14
Hotel
With clean natural resources to satisfy the

needs of tourists who are looking for ultimate
relaxation and leisure activities, Kangwon
Land is the only 5-star hotel in the southern
part of Kangwon region offering a wide range
of leisure facilities including ski resort, golf
course, and water park. With the High1 Grand
Hotel Convention Tower, we offer the ultimate
destination for MICE (Meetings, Incentives,
Conferences and Exhibitions).
Operating Facilities
Hotel Condo
903 rooms,
924 rooms café & bar,
amenities
Kangwon Land Casino: leading

the responsible gaming culture
Casino
Kangwon Land Casino offers a pleasant and

responsible gaming experience with its luxurious
and splendid interior designs, friendly dealers,
complimentary beverages, casino buffet and
access to VIP lounge where guests can relax and
enjoy games in the most comfortable environment.
Operating Facilities
Casino
180 tables
1,360 slot machines
15
H I G H L I G H T
High1 Water World
Kangwon Land opened High1 Water World in July

2018 to complete the family-type resort complex.
Built in front of High1 Grand Hotel in Sabuk-eup,
Jeongseon-gun, Gangwon-do by investing KRW 167.2
billion, High1 Water World is the fourth-largest aqua
theme park in Korea with total size of 51,038㎡ (approx.
15,000 pyeong), accommodating 6,640 people.
While Korea’s major water parks provide a facility

area of 5㎡ (approx. 1.5 pyeong) per person, High1
Water World maintains a facility area of 7.6㎡(approx.
2.3 pyeong) per person, providing a pleasant and
comfortable environment with the largest facility area
per person in Korea.
High1 Water World has 16 different types of attractions

such as 9 indoor and outdoor pools and 7 slides
including large outdoor wave pools and 14 types of spa
facilities. Outdoor water play facilities are equipped
with a warm water system to reflect differentiated
themes and regional climate conditions.
In particular, one of the outstanding features of

High1 Water World is the quality of the first-class
clean valley water from Baekdu-daegan. The source
water is from Mooreung Dam in the upper valley of
the High1 Ski Resort Valley’s ski houses. It boasts
clean water where lenoks, which inhabit only cold
and clean water, can live.
High1 Resort has been reborn as a resort equipped

with a variety of entertainments throughout the four
seasons, such as Wildflower Cart Tour in spring, Water
World in summer, Walk in the Haneul Forest Path in
autumn, and Ski Resort in winter. As a result, the High1
Resort has gained great attention from customers.
Pleasant and comfortable Reliable, clean water
facilities Clean water from Baekdu-daegan
Korea’s largest facility area
Total project cost per person
KRW 167.2 billion
Total floor area

51,038 m 2
Provision of convenience from Thorough prevention measures
the public perspective against safety accidents
Water World with 24 regular employees with
Capacity quick reservation system qualifications for
6,640 people lifeguards / 122

seasonal employees
Core Values
& Issues
18 Innovation for the Future
22 Customer Value Realization
26 Social Value Creation
38 Safe Resort
42 Eco-friendly Resort Operation

17
18
Innovation for the Future
Management Approach
Kangwon Land recognizes the expiration of the Special Act on Key achievements
the Assistance to the Development of Abandoned Mine Areas
in 2025 as a turning point as well as a new opportunity. The
competition in the casino industry is intensifying due to customer
loss with the development of complex resorts in neighboring
4.28 million
Number of annual resort visitors
countries. Large-scale casinos and complex resorts are increasing
while the demand rises for casinos that permit the admission
of local residents in other regions in Korea. In addition, as the
competition in the complex resort market expands, we need to
11.5%
Percentage of resort and new
increase company-wide sales and reduce costs to strengthen
business sales
both the competitiveness and resort self-sufficiency.
Management approach Relevance of Key Issues
We are realizing customer market-specific attraction strategies as • Resort and new business growth
travel trends diversify. In addition to opening the Water World, we
are raising our brand awareness as a complex resort by offering a
Link to UN SDGs
range of additional entertainment to attract visitors. Furthermore,
we have established a foundation for sustainable growth based on Goal 8. Decent work and economic growth
the non-casino businesses, while enhancing our resort operational Promote sustained, inclusive and sustainable
competitiveness that we have built already by securing international economic growth, full and productive employment
competitiveness through self-development of slot machines that reflect and decent work for all
the expertise of our casino operation.
Our strategy
Improving resort products·facilities·

content for all four seasons
Strengthening competitiveness of
casino operating system
19
Family Resort Complex for Four Seasons
Setting the direction for Expansion of Various Contents and Services

future business promotion
With the concept of ‘Traveling into the story of High1 that harmonizes four seasons’ events, leisure,
history, culture, and nature’, High1 Resort creates a theme space and various types of contents to
Global slot
extend the length of stay of guests at the resort. We strive to make High1 a resort visitors want to
2030
machine New business

market Business area revisit. Family guests are able to enjoy various cultural and entertainment contents such as standing
performances, seasonal festivals, various experience events, and art exhibitions throughout the year. In
Discovering
the engine of
Local win-win particular, the High1 Fireworks has gained attention from many customers as a symbol of High1 Resort.
investment
innovative growth
In addition, we expanded experience-based facilities such as guest rooms with pets, the
2025
Related
Diversification Unamjeong amusement park, a lighting gallery, and the High1 roller skating rink, which actively
beyond main
diversification
business reflect customer needs. We also opened the High1 Activity Organizer (HAO) Center, a specialized
resort activity operating organization to provide its own healing experience contents.
Complex Promotion of the New BI

Slot machine In-house Kangwon Land developed a new brand identity (BI) to strengthen the image of the resort complex
manufacturing Venture and in commemoration of the 20th anniversary of its founding in 2018. The new BI is based on
2020
the motif of Moonlight Flower, which signifies how visitors are able to forget their worries and can
Leisure find peace of mind at the High1 Resort through the energy of Baekdu-daegan and pristine air.
Casino
(Resort) Based on this, we are building a resort image as a national rest area that coexists with nature by
presenting a variety of storytelling contents using the resort theme of ‘Flowers, Wind, Forest, and
Light’. In accordance with the new BI system, we also combined the naming for each resort site
Local investment
into one brand ‘High1’, aiming for a younger, healthier resort image.
Development of resort complex products

High1 Resort’s new BI The resort complex products are developed to create a stay-type tourism base and generate
new demand. We are planning and selling products to offer a wide range of choices according
to the demands by preference and age group, such as specific targets, special days, experience
programs, and theme trips. Moreover, we are increasing the occupancy rate and strengthening
profitability by operating the room RM (Revenue Manager) for the first time in Korea, which applies
flexible room prices for each season, and conduct aggressive sales activities through various sales
channels. In particular, we established a Customer Experience Management (CEM) master plan in
August 2019 and operated the ‘CXM Innovation TF Team’ in January 2020 to lay the foundation for
customer experience management and “smart resort.”
Mid- and long-term business promotion roadmap
Short-term (-2019) Mid-term (2020-2022) Long-term (2023-2025)
• ‌Enhancing domestic individual • Expanding new attractions • Attracting 5.45 million resort guests
customer attraction • ‌Operating customer • ‌Operating big data-based target
Attracting • Expanding resort experience content communication culture content marketing
resort guests • ‌Strengthening local tourism spot- • ‌Strengthening local experience • ‌Strengthening the role of a local
linked products content connection tourism hub
• ‌Maximizing the resort facility capacity • ‌Operating customer • ‌Achieving non-casino sales of KRW
Securing • ‌Establishing a system to improve experience-based sales strategy 300 billion
competitiveness in customer service • ‌Expanding friendly customers through • ‌Achieving excellent grade or above in
resort complex • ‌Raising the brand profile as a family- better customer communication customer satisfaction
type resort • ‌Establishing a smart resort system • Establishing an AI service system
20
Synergy marketing linked to local tourism spot

Resort and New Business Sales In accordance with the purpose of establishment ‘Revitalizing local economy of four cities and
(Unit: KRW 100 million) counties in abandoned mine areas’, we are operating the ‘JTYS’ tourism platform to revitalize
the tourism economy in resort and four nearby regions (Jeongseon, Taebaek, Yeongwol, and
Samcheok). To this end, we have a dedicated company and operate a standing promotion booth
175.3
for ‘JTYS’ in the resort, develop a tour recommendation road for JTYS, sell nearby local tourism
162.3
spot linked package products and KORAIL-related products to establish a model for shared growth
and sustainable development of resort and local tourism economies. In addition, we contribute
8%
to the revitalization of the local economy by developing complex products and providing discount
coupons to promote mutual growth with local commercial shops such as local rental shops and
lodging facilities.
2018 2019
Expanding MICE attraction with customized strategies for each target group
With the best convention facilities and professional manpower service infrastructure in Gangwon
province, High1 Resort aims to continuously host large events to create stable added values.
We are strengthening promotional and network activities of related organizations by using
differentiated facilities, services, and programs.
We established strategies to attract customers for each target groups that includes: family camps and
long-term series events of large corporations, healing programs for public officials, student groups,
international academic conferences and religious events by utilizing the strengths of non-member
resorts based on the beautiful natural environment. We are also equipped with the latest MICE facilities
such as high-definition large-scale LED facilities and benefit from linking resort facilities.
* MICE : Meeting, Incentive tour, Convention, Exhibition
SNS and mobile app marketing
For active engagement with customers, we operate a number of social media platforms including
High1 Resort’s official Blog, Facebook, Twitter, Kakao Story, Instagram, and YouTube. We meet
customers’ needs by actively communicating with customers through diverse and trendy contents
and events, and promptly provide feedback on customer opinions. The High1 mobile app
functions as a channel for selling products and bookings as well as delivering information on
resort facilities, products, events, and customized information for each customer.
High1 Resort’s Key Messages
Family-type resort Eco-friendly resort

Target
Water World Snow World Resort Brand
• ‌Flowers: a secret garden on the plateau

• 3m mega-ton high wave pool • Wind: 1,340 meters above sea level
• Clean valley water The winter playground • ‌Forest: forest and sky roads that retain the
Subject
• Unique experience with fireworks at the highest place in Korea mysteries of ancients times
and live performances • ‌Light: a spot where the light of the world
comes together
• ‌Ultimate resort where you can enjoy flowers,

• Joy in water Magical, amazing
Message wind, forest, and light
• Exciting High1 Water World Real winter with High1
• One and only resort
21
Enhancing the competitiveness of the casino operating system
Improving the Casino Environment
Kangwon Land Casino adjusted the number of general game tables (180 → 160, from Jan 1, 2018)
and casino business hours (20 hours → 18 hours a day, from April 1, 2018) to meet the conditions
for re-licensing the casino business (2018-2020), which has been a major cause of declining sales
growth in the casino sector since 2018.
We improved the efficiency of casino operations and implemented business maintenance to

‘KL Saber’ presented at ‘Global Gaming make up for the weak casino sales due to changes in the policy environment in 2019. With
Expo G2E Asia’ growing complaints from customers about the shortage of seats stemming from reduced business
hours and tables, we have expanded the customer game space by efficiently improving game
operation and space utilization, such as changing the seat layout, integrating the seat reservation
zone, and separating table games. Kangwon Land Casino achieved 5.4% sales growth in 2019
compared to the previous year through these efforts of improving the environment of the casino
such as adjustment of the table operation rate by time and replacement of the old slot machines.
The name ‘KL Saberi’ comes from the
local town of Sabae-ri in Gangwon-do
Province. Saberi is also a Persian word In-house Development of Slot Machine and Performance
that means “patience” and “fortitude”.
The name is in line with the mission As a measure to diversify the long-term revenue, we entered the manufacturing business of casino
of the company, which aims for job
game slot machines (brand name: KL Saberi) in 2017 based on the accumulated casino sales
creation and regional revitalization.
technology and data.
KL Saberi Target1) Kangwon Land has been spending approx. KRW 45 million won per replacement of the slot machines
(Unit: KRW million won) every 7 years, but in 2019, we’ve seen not only budget savings but also the possibility of future growth
Revenue Market Share1) business by supplying 140 KL Saberi slot machines to Kangwon Land Casino. KL Saberi, which is
the slot machine manufacturing brand of Kangwon Land, mainly develops slot machine games and
211,436 cabinets. With the technology and know-how accumulated over 20 years in casino operation, our
179,815
talented researchers and experts of KL Saberi are developing the next-generation slot machines.
With these efforts, we expect to enhance our corporate image and secure new growth engines by
pioneering global markets. Subsequent to signing contract with two domestic casino companies,
3,424 54,517
we continue to negotiate with overseas casinos to supply KL Saberi. On a trial delivery basis, we
2,972
2019 2020 2024 2028 2031 signed a contract with Manila Solaire Casino in the Philippines. By launching a new slot machine
manufacturing business and entering the overseas market, we will secure SME support and job
1) Global slot machine market size: 472,000
creation through technical cooperation with domestic manufacturers.
Securing the global competitiveness of KL Saberi (2019)
R&D International Participating

Manufacturing
(game theme certification in global
and sales
development) acquisition gaming show
• 2019 G2E Asia (Macau)

• Developing customized themes for
• Acquiring International Certification • Total supply: 160 units (20 units in - ‌Winner of the Best Product Awards
domestic and overseas markets (12
(Australia BMM) 2018, 140 units in 2019) - Winning
‌ the Most Popular Awards
types)
- Securing global credibility such as • Domestic: 19 units including GKL • 2019 G2E Las Vegas
- Developed in-house by experts
device stability • Overseas: 8 units - ‌Winner of the 2nd Prize for
such as machine mechanics
Excellent Product Awards
2031 KL Saberi Goals
Development Sales Revenue
Achieve 2% global market share in 2031

Develop over 100 game themes Achieve KRW 2.114 billion
(Enters Global Top 10)
22
Customer Value
Management Approach
The need for collection of customer data using IT technology Key performance
that fits the 4th Industrial Revolution Era is growing. To this end,
High1 Resort is introducing an active and systematic customer
management system to strengthen its competitiveness as a resort 83.5 points
complex. Moreover, Kangwon Land, the only casino operator that
KCSI (Korean Customer
is allowed to receive domestic customers in Korea, is committed
Satisfaction Index)
to establish a responsible gaming culture, achieve responsible
gambling, and is responsible for the public contribution to resolving
gambling addiction.
23.9%
VOC complaint rates
(Casino sector)
Management approach
1,566
Kangwon Land actively gathers customer opinions through various Number of players using the self-
channels and improves quality service and satisfaction with standardized control system for gaming expenses
customer service. In addition, as a public enterprise that operates casinos,
we promote various policies through the Addiction Management Center to 208 people
minimize adverse social effects and establish a responsible gaming culture.
Number of gamblers linked
Our strategy to counseling
Expand marketing activities based on Relevance of Key Issues

customer experience
• Improve activities for customer satisfaction
• Responsible casino business
Improve the customer support
VOC system
Lead the responsible gaming industry
Strengthen publicity of the addiction

management project
23
Friendly and Differentiated Service
Establishing a mid- and long-term roadmap of CXM system
While the competition in the complex resort industry is intensifying and technologies such as
IT and AI are rapidly developing, customer management is moving away from the information
delivery-oriented passive marketing and is shifting to customer perspective marketing that utilizes
Big Data to focus on the customer experience.
Mid-and Long-term Roadmap of the CXM System
2020 (Introductory) 2021-2022 (Expansion) 2023- (Advancement)

Construct the basis of the Customer data analysis /
Introduce Big data / AI
CXM system Application
• Integrated customer DB • ‌Data analysis system

• ‌Big data analysis platform
construction (casino, resort) - Analysis of target customers
- Systematic
‌ management and customer patterns • Digitalization of AI and
of marketing target DB IoT-based service of
• Establishment of data-based
unstructured data, social
• ‌Construction of a smart sales / marketing strategies
data, etc.
resort system - Development of personalized
- ‌Introduction of Chatbot
-S
martification of check-in, products / service
and RPA*
food and beverage facilities - Customer itinerary
- Providing real-time
-U
pgrade of mobile App management and service
customized service
(Digital Concierge) design
*‌ RPA: Robotic Process Automation
Creating new Increasing Preventing Expanding

customers customer value customer attrition customer relations
Number of cases for Strengthening DB-based target marketing activities

each type of VOC
We are securing customers who have agreed to the use of personal information for the purpose of
Negative VOCs decreased [Complaints] marketing and strengthening DB-based target marketing activities. In addition, we have secured
(Unit: case)
the data of 190,000 individuals who have agreed to the use of personal information for the
729 purpose of marketing such as targeting customers and the general public based on their purchase
history, as well as customers interested in our company. Furthermore, we are expanding target
marketing (PUSH)* for exclusive products for customer visits, functions, and event news. Through
these measures, we have attracted 2,254 individual customers using PUSH in 2019 and re-hosted
41%
429
75 MICEs through continued promotions and Fam Tours.
* Push Marketing: A marketing method that is the fastest and most effective way to communicate with users by
sending various types of messages.
2018 2019 Number of marketing DBs Number of PUSHs

(Unit: person) (Unit: case)
Positive VOCs increased [Compliments] 2018 150,000 2018 2 million

(Unit: case) 25% 366%
2019 190,000 2019 9.4 million
464
Opening of Integrated Customer Satisfaction Center
347
Kangwon Land has standardized its CS Management System in accordance with the operation of
34%
various business areas. We also integrated our customer support and improved our VOC system
in line with the growing demand to resolve and prevent sources of customer complaints, such as
2018 2019 the recurrence of similar VOCs in each area. Furthermore, we consolidated the customer centers
of our hotel, ski resort, and Water World to establish the Customer Satisfaction Center.
24
Transformation of VOC System
As part of our initiative to transform into a customer-oriented company, we are improving the way
we work. We have revamped the VOC system to enhance customer satisfaction. Previously, the
VOC provided information and registered complaints from customers. Then, it would transfer the
complaints to the relevant deparments. Today, we operate a three-step VOC process of preemptive
prevention, customer response and customer communication.
Prevention
Preemptive prevention
• ‌VOC evaluation • ‌Strengthening CS We reflect the response time of VOC and complaint rate of VOC in our internal evaluation. The
index education evaluator indicators are used to ensure that all employees recognize the importance of VOC and
• VOC pre-forecast encourage real-time response. We shared a total of 2,601 VOCs generated during the peak season
(winter / summer) with all employees through inquiries and meetings to identify and prevent
complaints. In addition, we provided CS training to 956 employees on the front line eight times a
year to strengthen training on complaint cases and response tips for each contact point.
Response
Customer response
• ‌VOC approved by the head of the The VOC response process that used to be resolved with only a manager’s response has been
department institutionalized to be monitored by the head of the department with their approval and
• Provide instant feedback on online portal improvement plan. We have also promoted active and prompt online feedback activities, such
sites as monitoring and responding, in real-time, to the reviews of customers who made reservations
through online portal sites such as NAVER.
Communication Customer communication

We are promoting a positive CS culture through discussions with customers by sector,
• ‌Customer • ‌Strengthening the communication between executives and employees, and identifying moving stories among
meetings CS value consensus employees such as compliments from customers.
• ‌Compliment / • ‌Discovering
Thank-you cards moving stories
Customer safety experience training
High1 Resort operates a “High1 Safety Experience Class” for customers to spread a culture of
safety for multi-use facilities and to respond quickly to disasters and accidents. We raise our
customers’ safety awareness by providing information on earthquake and fire emergency
evacuation guidelines, Cardio-Pulmonary Resuscitation (CPR) demonstrations, and how to use an
Automated External Defibrillator (AED).
Tourism welfare ‘Hope Sharing’ FOCUS

ON
We provide idle rooms during off-season to socially vulnerable groups and welfare service workers in ‘Hope sharing’ healing camp
keeping with the nature of our business as a public corporation resort and realize the vision of a national
resting facility in Korea. In 2019, 4,032 rooms (accommodating 12,366 people) were lent to socially
Enhancing the self-esteem of
vulnerable groups, and about 400 people participated in a total of 10 healing programs such as a program
participants and reducing their stress
that provides rooms for welfare service workers, local tourism programs, and meditation / yoga programs.
In addition, we offer special discounts on resort facilities to disadvantaged groups and social enterprises in Professional pride
the tourism sector. (Unit: point)
‘Hope Sharing’ program

2018 3.84 6%
Number of rooms Number of participant (unit: persons)

2019 4.06
(unit: rooms)
4,032 12,366 Stress level

(Unit: point)
219% 245%
2018
1,262 3,582
3.55
2018 2019 2019

2018 2019
2.33 34%
25
Creating a Responsible Gaming Culture
Encouraging the use of self-control systems
In order to prevent over-indulgence on games and increase the effectiveness of our gambling
addiction prevention policy, we operate a voluntary self-control system to spread awareness
of responsible gaming and promote the use of the system. To this end, we implemented a self-
control system of gaming expenses, self-setting the amount of electronic card usage, a responsible
gaming zone for machines, and a voluntary exclusion system.
Players using the Gaming

Expense Self-Control System Self-control system of gaming expense
(unit: person) We have a system for self-control of gaming expenses, in which customers put their cash and credit
cards in a deposit box and enter the casino with a specific amount of gaming money. 1,566 customers
1,566 used the system in 2019, representing a 74% increase compared to the previous year (900 people).
Self-controlled casino entry days ‘My choice’

900 We operate a self-control system called ‘My Choice’ in which customers voluntarily limit their entry
74.0% to the casino. ‘My Choice’ is a system where customers voluntarily set the number of days to enter
the casino from 1 to 14 days per month (from the maximum 15 days a month) and receive incentives
607
48.3% for the restricted period.
Responsible gaming zone for machines

2017 2018 2019 As a result of expanding the responsible gaming zone for machines to operate throughout the year (one
person can play a maximum of 30 minutes), which was piloted during the weekend and peak season,
26,757 customers used the feature in 2019, a 207% increase from the previous year (8,714 people).
Responsible gambling promotion and campaign
We are strengthening on-site prevention activities, such as self-assessment (CPGI) on the level
of over-indulgence along with over-indulgence prevention campaigns by encouraging high-
risk customers to receive counseling by counselors consisting of former gamblers who have
recovered from gambling addiction themselves. In addition, to strengthen the on-site monitoring
system through customer contact staff, we have established the 5th Trained Field Meditator (TFM)
consisting of 34 voluntary applicants. To this end, we are at the forefront of setting a responsible
gaming culture by spearheading various advanced projects to solidify a responsible gaming
culture. Such projects include a proactive response to risky customers in the workplace, gambling
addiction prevention training, strengthening counseling capabilities, and prevention campaigns.
Countermeasures against illegal acts near the casino
We conduct campaigns to minimize customer damage and negative impacts on the local communities
caused by illegal private lending near the casino. We operate a report center, 24-hour surveillance team
and established a joint monitoring system with the National Gambling Control Commission, Gangwon
Provincial Office and the local police stations. In addition, we carry out campaigns through various
media outlets such as video clips, High1 websites, and other campaigns.
‘High Healing 1’ for prevention and treatment of behavioral addiction FOCUS

ON
Kangwon Land opened the ‘High Healing 1’ in Yeongwol in November 2019 to eliminate all serious
addictions in society such as mobile and internet game addiction. The High Healing 1 has been
established by the Forest Healing Foundation, a non-profit foundation funded by Kangwon Land.
Surrounded by Mt. Maebong and Mt. Danpoung at 1,200 meters above sea level, the center can
accommodate 120 people. We plan to focus on forest education and behavioral addiction prevention
and treatment programs. With the opening of High Healing 1, Kangwon Land will actively carry out
its public role, for instance, by establishing infrastructure to prevent and treat the field of behavioral The Unveiling Ceremony of High Healing 1
addiction, and enhance its status as a specialist institution in the field of behavioral addiction.
26
Social Value Creation
Management Approach
Kangwon Land goes beyond making donations to actively conduct Key achievements
our social contribution activities in helping the local community and
revitalizing the economy of the abandoned mine area. Particularly,
Kangwon Land promotes genuine social contribution activities that KRW 29.5 billion
can contribute to creating shared value in communities by actively The amount of
reflecting the needs of the local community. social contribution
KRW 92.2 billion

Management approach Economic contribution
to the community
We improve the quality of life for local residents by helping them to
increase their income and secure self-sufficiency for shared community
growth and local economic recovery. In this way, we achieve the vision 7,890 jobs
of ‘Korea’s national rest area that is trusted by the people and grows
Job creation
together with the abandoned mine areas’.
Our strategy 88.8 points

Satisfaction of the
beneficiaries of welfare projects
Increasing the self-sufficiency of local
residents
Relevance of Key Issue
Establishing a cooperative support • Development of the Local Community

system with local organizations
Link to SDGs
Goal 1. No poverty
Developing talents for the future End poverty in all its forms everywhere
Goal 4. Quality education

Ensure inclusive and equitable quality education for
all and promote lifelong learning opportunities
Goal 8. Decent work and economic growth

Promote inclusive and sustainable economic growth,
employement and decent work for all
Goal 11. Sustainable cities and communities

Make cities inclusive, safe, resilient and sustainable
27
Social contribution strategy
Kangwon Land achieves shared growth with abandoned mine areas, revitalizes the local
economy, and improves residents’ quality of life. To this end, we are laying the foundation for local
community development and improving residents’ quality of life by providing income support
for small local enterprises, the establishment of a social-economic organization, and resident-
led revitalization projects. Through these efforts, we contribute to cultivating self-sufficiency of
the community and fostering future generations by continuously carrying out community-based
social contribution projects.
Economic Contribution to the Local Community

(As of December 2019, unit: KRW 100 million)
Local use of High1 Point Sales in the JTYS region Transfer of Youth Start-ups Community welfare Local job creation
improvement (Welfare (Hope Foundation)
401 35 30 Foundation) 88 58
Prevent and treat Scholarship programs Revitalize the region, etc. Kangwon Land Addiction Total amount of
behavioral addiction Care Center (KLACC) contributions
(Forest Healing 58 50 34 168 922
Foundation)
Key Areas of Social Contribution
Foster future talents Revitalize local economy Local welfare Sharing and healing
• ‌Social economy support • ‌Kangwon Land Social Volunteer

• ‌Support for small enterprises Corps
• ‌Educational scholarship support
• Support for the vulnerable group’s • ‌Welfare support for abandoned • Forest education and healing
• ‌Educational environment
return to employment mine areas program
improvement
• Local job creation • Integrated humanities & arts
• ‌Urban regeneration support healing program
Social contribution promotion organization
We established the Social Value Realization Office to directly report to the vice president to
enhance the effectiveness of business execution by improving the way to promote social
contribution projects. The Social Contribution Committee deliberates on and determines
donation-related to social contribution projects, and provides management support of the
Kangwon Land Welfare Foundation, Hope Foundation, and Forest Healing Foundation.
Kangwon Land Social Volunteer Corps

2019 status of Volunteer Corps
With the vision of achieving a “community-based social service that satisfies participants and
beneficiaries,” we are focusing on community service programs that are necessary for the local
Team volunteer group community. By placing volunteer groups at the four cities and counties with abandoned mines and
52 groups providing various programs, we are striving to become an enterprise closely integrated with local residents.
Theme 36 themes Improving the effectiveness of social contribution projects
Kangwon Land continues to improve the effectiveness of promoting social contribution projects
Hours spent volunteering 28,354 hours by modifying the way to undertake such projects. We have made a qualitative improvement to
the social contribution project by improving the operation of social contribution programs such
Volunteering hours per person 8 hours as scholarship projects, High1 Dream Expedition, and High1 Boat School, thereby maximizing the
efficiency of each program and improving the issues that have been raised.
28
Revitalizing the Local Economy
Kangwon Land contributes to the vitality of the local economy through the promotion of tourism
Hope in connection with local resources. By leveraging the increased number of tourists who visit the
Kangwon Community
Land’s talent
Foundation’s
resource region and our resort, we develop the local economy by commercializing the local content as
financial
donation
support
network tourism products.
During the late During the early

The early 1900s 2000 After 2015
1990s 2010s
Rationalization Promotion of
Promotion of Promotion of local
Coal mining boom of abandoned alternative
social contributions regeneration
mines·industries industries
Strengthening the self-sufficiency • Booming of • Abandoned coal • Establishment of a • Problem-solving • Promoting

of small enterprises coal mining, the mines in the casino resort under approach for industrial
driving force community the Special Act for social and diversification to
Activation of the local commercial district of the national • Increased local economic economic support secure local self-
energy industry anti-government recovery to expand the sufficiency
protests by local industrial • Support for urban
Shared value creation residents base regeneration
(demanding projects
alternative
industries)
Support for the vitalization of the social economy organization, Sustainable support for
urban regeneration projects and attracting promising young enterprises
Operation of local use of High1 Point
The High1 Point system is a regional economic vitalization support system introduced in 2004 that
Usage of High1 Points
allows points to be used not only in our resort business facilities but also in the local shopping
KRW 43 billion district. In 2019, four new businesses that are highly popular with our visitors were including,
expanding the number of stores to 13. Total sales of new business to reach KRW 123 million. In
addition, with the development of the ‘Mobile-Pay’, a High1 Point payment system based on
Fintech, we anticipate not only to prevent fraudulent use of the High1 Point, but also to increase
convenience for customers. As of the end of 2019, the number of High1 venues stood at 1,596
stores and the amount spent reached KRW 43 billion.
Purchase of regional products
We operate a local product purchase system to expand delivery opportunities for small local
Purchase made in abandoned enterprises. In addition, we have established a foundation for win-win growth by improving the basis
mine areas in 2019
for a fair contract and a contract system to protect the socially underprivileged, as well as extend sales
KRW 150.5 billion channels in connection with our business. Examples include supporting the regional specialties market
and purchasing excellent local products. We exclusively purchase the items that are under KRW 100
million within the abandoned mining area, and purchase local agricultural products as a priority with
a guarantee unit cost at up to 150% of the general market price. In 2019 we spent KRW 150.5 billion as
purchase expenses in the abandoned mine areas, a 19.8% increase from 2018, and 51% of the total
purchase expense (KRW 294.9 billion) was purchased from local companies.
Increasing Profit of “Small Restaurants”
‘Taste JTYS!’ is a project to support the self-sufficiency of small restaurants in the four cities
The sales growth rate of
and counties of the abandoned mine areas that are on the brink of shutting down. We
“small restaurants”
enhance the sales competitiveness of small restaurants by developing restaurant-specific menus,
362% improving facilities, and providing training in cooking and service, promotion / marketing, and store
management. In particular, we strengthen the follow-up management through in-house experts’ talent
donation for sustainable growth of the re-opening restaurants. With the optimal support reflecting
the needs of small restaurants, the average sales increased by 362% upon reopening, contributing to
significantly narrowing the income gap with other restaurants in the abandoned mine.
29
Strengthening social economic support
Since the establishment of the resort in the 2000s based on the Special Act for recovery of the
Social economy entry rate
local economy in the abandoned mine areas, Kangwon Land has provided social economic
78% support to resolve social problems and expanded the foundation of local industry since 2010.
Since 2015, we selected and focused on social economy and urban regeneration projects to help
the local community secure self-sufficiency.
The social economic support, which promotes to create a healthy local industrial ecosystem,
provides effective support plans through the process of on-site company mentoring, experimental
/ practice prototype production, and screening / agreement signing, ensuring the success and
sustainable growth of startups. The social economy entry rate* increased to 78% in 2019, and the
cumulative survival rate of three years of start-ups was 81.8%, which was 39.3% higher than that
of general start-ups (42.5%, as of 2017).
* Social economy entry rate: the percentage of companies that received start-up support that entered the social
economy sector by meeting legal standards for certification or registration as a social economy organization
Social economy support process
Wake-up Select candidate Grow Encourage Raise Evaluate and spread

startup performances
• Business • Idea contest and • ‌Social economy • Experimental • Candidate
presentation screening start-up training • ‌Practice selection • Start-up contest (sharing
• Special lecture • ‌On-site mentoring prototype screening and / incentive payment)
signing of the
agreement
Examples of social economy support
Category Start-ups Business item Application

Cultivate former gamblers as construction Consulting for the establishment
Accompanying
Job technicians and offer job opportunities of cooperatives
Creation High1 chauffeur Production of a training manual
Offering former gamblers chauffeur service jobs
service for chauffeur drivers
2019 Korea Urban Regeneration Symposium Hope Walking Planting herbs and operating a hands-on Product development, capacity
Cooperatives program using herbs enhancement education
Minister of Land, Infrastucure, Local
resource Forest renewable energy production using waste Prototype production, visits to
and Transport Award Woodcutter
wood advanced facilities
Discovering each Operating network platform using local culture Visits to advanced cultural
Local other and arts programs
culture
Qurie Development of products using local stories Support for prototype production
Operating a graphic design training and Local promotion, talk show, class
Easy Young Design
specialized center demonstration
Local Healing Dream Operating a healthy café using enzyme that Market research, prototype
residents Cooperatives employs career-interrupted women production
The Grand Prize for the Best Practice of
Vitalization of the Commercial Alleys Social cafe operation and coffee-related Flea market operation, visits to
Coffee Marine
education service advanced facilities
(Ministry of the Interior and Safety)
Resident-led Urban Regeneration Support
We support urban regeneration projects involving residents to restore and transform the old
urban environment in the abandoned mine areas into a pleasant environment. The resident-led
urban regeneration support campaign, where residents voluntarily identify and solve problems of
the village, is contributing greatly to the regeneration of local communities and vitalization of the
commercial street venues.
In particular, the “18th Street of the Village Hotel” project, launched with the slogan of “The Alley is
Hope, Residents are the Future,” is an example of urban regeneration to other nearby regions with its
The ‘18th Street of the Village Hotel’ positive effects such as raising village awareness and increasing visitors by holding alley garden fairs,
empty house projects, building village gardens, and improving walking trails.
30
Fostering future human resources
We address the educational gap and improve residents’ lives by improving the educational and cultural
life environment in the abandoned mine areas. We are expanding education support for middle and
high school students in abandoned mine areas, including psychological counseling, career education,
employment mentoring, cross-cultural experiences, and sports talent development.
Improving educational environment Youth self-development Specialized youth development Youth future design
• ‌Supporting scholarship student • Overseas excursion programs • Boat School support • Operating career search programs
growth • Sports talent development
• School social worker support • Specialized education support
High1 Scholarship Program
Since 2008, the High1 scholarship program has been providing students in abandoned mine areas
equal educational opportunities regardless of economic difficulties and supporting a stable living
environment during their studies.
High1 School Social Welfare Project
We implemented a school social welfare project to alleviate the psychological and emotional
issues of local teenagers who are directly or indirectly exposed to harmful environments near the
casino and established a school welfare safety net. In cooperation with the Korea Association of
School Social Workers, we operate various programs where school social workers are dispatched
directly to elementary, middle, and high schools in Gohan, Sabuk, and Nam-myeon to engage
students, teachers, and parents who live in the area. In this way, we quickly find students who are
in trouble at home and in school, and make progress such as improving self-esteem, enhancing
school adaptability, and reducing problem behavior.
High1 Dream Expedition
Since 2005, we have provided opportunities for overseas research and study to youths who have been
geographically and culturally marginalized in abandoned mine areas. This is to expand their knowledge
and experience in the international community and help them grow into the next generation of global
leaders. We contribute to the holistic growth of these youths. The youth themselves select research
topics and conduct preliminary explorations such as domestic surveys and interviews, and study major
issues at home and abroad through overseas training and participate in problem-solving processes.
High1 Boat School
Together with the Environmental Foundation, we have selected talented youths in abandoned
mine areas since 2013 to provide opportunities to engage with various experts in the space of “ship”
and explore overseas culture. This is a special journey to enhance the challenging spirit of high
school students with talents in various fields such as history, culture, environment, and science.
The program enables students to broaden their horizons on the environment and make friends in
a wide range of ages and professions on the sea.
High1 Sports Talent Development

2019 High1 Boat School
Kangwon Land is leading the support of the school sports and youth sports (Dream Tree Sports)
in Gangwon-do to develop and expand the region’s sports.
31
Improving the Quality of Life of Local Communities
Expanding daily welfare for the marginalized group
We improve the quality of life for local residents through various welfare programs for marginalized
groups. We improve the effectiveness of welfare projects by reflecting the needs of the beneficiaries
and monitoring results of welfare projects and adjusting them in the form of project reduction, business
expansion, introduction of new projects, and system improvement.
Subject Contents Beneficiaries / Execution amount

Pneumoconiosis patients Winter aid, therapy programs, group support 6,861 people / KRW 3,137 million
Seniors Meal service for senior citizens’ center, cultural activities 24,640 people / KRW 506 million
Children/Youths Experience camp, food package 2,236 people / KRW 469 million
Vulnerable group People with disabilities Family camp, cultural activities 374 people / KRW 216 million
Multicultural family Trip to mom’s country, multicultural family festival 561 people / KRW 432 million
Common Food, clothing, and housing support, medical support 10,110 people / KRW 2,215 million
Welfare cooperation Vehicle support for welfare facilities, welfare programs 516 beneficiary groups / KRW 1,810 million
Welfare Projects for Pneumoconiosis Patients
With the launch of the support program for pneumoconiosis patients in 2004, we have promoted
various support projects related to the health, leisure, and lives of pneumoconiosis patients at home
and nursing home patients. Since 2015, we have been operating projects to share the economic
and emotional difficulties of the bereaved families whose members have died in a coal mine
accidents. The Kangwon Land Welfare Foundation comforts and improves the quality of life for
pneumoconiosis patients and their families who are facing difficulties due to shut downs of mines.
Local Job Creation
Due to the nature of the abandoned mine areas, the marginalized groups, such as the elderly
Contribution to job creation
(As of Dec. 2019, unit: case) and the disabled, occupy a larger proportion than other areas. As a measure to improve the
quality of life for the marginalized and to integrate the community, it is necessary to expand
Kangwon Land
(including part-time)
4,472 job opportunities for vulnerable groups in the job market. Kangwon Land creates new jobs by
developing job types that can contribute to community integration. In 2019, we developed social
Suppliers
(part-time, daily)
2,193 needs and individual capabilities for the elderly, the disabled, women, and youth groups in a
balanced manner, and identified various job categories, such as tourism resource development
Rental business 144
and local government cooperation, to provide socially integrated jobs*.
Construction 308
Welfare Projects for the Marginalized Groups
Affiliates, subsidiaries, etc. 178
We have conducted medical business, housing improvement, and dietary support projects since
Socially integrated jobs in the
97
community 2004, to support healthy and happy lives for marginalized groups such as the elderly, children,
Others (performance / event, 498 and people with disabilities in the four cities and counties of the abandoned mine areas. We have
consignment, consulting, etc.)
various welfare support programs such as a meal service for senior citizens center, support for senior
colleges, cultural activities for the elderly and the disabled, jobs for the disabled, public offerings of
Total 7,890 specialized projects for residents with multi-cultural background. Furthermore, we operate housing
improvement support project, winter aid, support for families in crisis, prosthesis / hearing aid for
* Socially integrated jobs: jobs that provide public the disadvantaged, medical treatment for vulnerable groups, child and youth experience camps, and
jobs to an economically and socially vulnerable
computer support programs for children and youths.
group so that residents who have experienced
social exclusion and discrimination can integrate
as members of the community. Welfare Cooperation Project
We provide support for social welfare center projects, vehicle support, welfare worker support,
and volunteer activity for users of poor social welfare centers and groups in the four cities and
counties of the abandoned mine areas. In addition, we are striving for effective project execution
through research and study of local welfare, public-private cooperation, and promotions.
32
Case Interviews
High1 Partners is a subsidiary of Kangwon Land established

to ensure efficient and reliable operation of its business
facilities. By converting temporary employees from 14 service
High1
providers to permanent status and offering long-term private
contacts, we support stable operation and employment of our
subsidiaries while ensuring independence and expertise in
Partners
work to help them grow as reliable business partners.
Our mission is to improve customer satisfaction and support

the growth of our local community by keeping the facilities
and environment safe and sustainable while offering
transportation services. With safety as our top priority, we take
a proactive approach when dealing with issues and identifying
areas of improvement. We will focus on service innovation
and reflect customers’ needs in our decision-making process
while creating a healthy workplace. We will also further
strengthen our cooperation with the parent company and
promote mutual growth as a partner.
Going forward, we will continue to create jobs, boost the local

economy and improve the quality of life of our local community.
CEO
Yu Chae-sang
We will continue to
create jobs, boost local
economy and improve
the quality of life of
our local community.
33
Although I run a restaurant,

it was my first time getting
professional training. I even
learned how to use a knife.
Getting new experience and
making a fresh start gave
me so much energy and I
enjoyed every minute of it.
Jeong
Tae - Pyeonbaek Sup Restaurant
Park Soon-rang, Owner
Yeong - Park Soon-Rang, CEO of Pyeonbaek Sup, ran a restaurant for

about 12 years. She started with a Dolsot Rice restaurant and
Sam - then boiled duck with rice thinking that she could do it all by
herself. However, the business slowed down gradually.
Matkeda Then, she joined the “Jung - Tae - Yeong - Sam, Matkeda”
project and it was a great opportunity for her. She enjoyed
every minute of the month she spent working with the
volunteers from the Kangwon Land Hope Foundation. She
had to get up at 5 every morning, take a bus and train to the
East Sea and come home late at night. But she did not feel
exhausted. Sure, it was a hectic schedule, but the time flew
by as she got consultation from Chef Park Sang-geun and
practiced her skills.
Seeing how people helped her and her restaurant through the
talent donation program and those who supported her, she
decided to give back to others and her community.
34
After being exhausted by

the work and its tension,
I feel grateful for the
beautiful views, relaxing and
comfortable accommodation,
and various stress relief
programs offered by High1.
Staff of the House of Mokyang

Moon Kyeong-ja High1
It has been four years since I worked at a shelter for sexual
assault victims. I was swamped with work and felt exhausted
Hope
all the time. Then, “2019 High1 Hope Sharing Healing Camp”
gave me a chance to re-energize. Sharing
It includes a variety of recharge programs for social workers.
In the “Gondola Sky Walk”, I admired the scenic beauty of the
sky and spectacular mountains. While enjoying the fresh air of
the Taebaeksan National Park, I felt reinvigorated and made
a new resolution to do my best to help people and support
what I do for a living. During the “Stress Minus Mind” session, I
was reminded that I should let go of myself to fill it up again.
After being exhausted by the work and its tension, I feel grateful
for the beautiful views, relaxing and comfortable accommodation,
and various stress relief programs offered by High1.
I would also like to thank the Korea National Council on Social

Welfare and Kangwon Land for the opportunity to rest, recognizing
the importance of fulfilling before giving back to others.
35
Lee Ki-hyuk (Architecture student of Soongsil University)
High1 joined the High1 Onboard School program during the

summer vacation of his second year of high school. While
traveling through Vladivostok, Hakodate, and Sakaiminato to
Onboard Busan over seven days, he gained some valuable experience

that broadened his perspective on life.
School There were various lectures held on board that participants can
attend freely. Through one of the mentorship lectures, he met
professor Cho Jin-man, which was a turning point for his life.
Until then, he thought that architecture was simply a study

of calculation and measurement. But the lecture changed
his views on architecture and inspired him to become an
architect. Since then, he has kept in touch with the professor
who became a mentor for life.
Architecture
student of Soongsil University
Lee Ki-hyuk, Student
While traveling on High1

Onboard School for
7 days, I gained valuable
experience that broadened
my perspective on life and
architecture, and decided
to become an architect.
36
UN SDGs - Social Value Creation
The Sustainable Development Goals (SDGs) are global collaboration agendas to mitigate and eliminate factors that
threaten the sustainable development of the United Nations and the international community. The SDGs were adopted by
all UN member states in 2015, as part of the 2030 Agenda for Sustainable Developent. It is the largest common goal of the
international society that strives to achieve the 17 main goals and 169 targets of universal social problems such as poverty,
disease, and education, and global social issues such as climate change, energy and biodiversity, and economic and social
issues such as technology, employment, and production-consumption. Kangwon Land actively supports the UN SDGs for
sustainable development and extends its best efforts in creating social value, such as local economic development in the
abandoned mine areas, improving residents’ health and welfare, and investing in education for future generations.
Improvement of Local Welfare Education 〮 Scholarship
Goal 1. End poverty in Goal 4. Ensure inclusive and equitable quality education for
all forms everywhere all and promote lifelong learning opportunities
We contribute to improving the local welfare through support We expand education support for middle and high school
projects for pneumoconiosis patients, the bereaved families students in the abandoned mine areas, including psychological
whose members have died in coal mine accidents, socially counseling, career education, job mentoring, cross-cultural
vulnerable groups, welfare facilities, and workers. experiences, and sports talent development.
High1 Scholarship High1 Dream Expedition

Welfare for
pneumoconiosis patients KRW 3.2 billion KRW 2 billion KRW 1.06 billion
Sports talent development School social work
Welfare for
marginalized groups KRW 3.8 billion KRW 1 billion KRW 500 million
High1 Boat School Youth job experience
Welfare cooperation KRW 1.8 billion KRW 250 million KRW 200 million
Kangwon Land Social Welfare Program High1 Expedition

37
Local Job Creation Local Rehabilitation 〮 Sharing Culture 〮 Event Support
Goal 8. Promote productive full Goal 11. Make cities inclusive, safe,
employment and decent jobs resilient and sustainable
In order to improve the quality of life for underprivileged groups We support urban regeneration projects involving the participation
and facilitate their integration with the community, it is necessary of local residents to restore the old urban environment in the
to create jobs for these marginalized groups. We create new abandoned mine areas and transform the areas into a pleasant
jobs by developing job types that are able to contribute environment. The “Saving My Neighborhood” campaign contributes
to community integration. greatly to the regeneration of local communities and vitalization of
the areas with commercial alleys.
Revitalization of the External support

local economy KRW 2.3 billion and sponsor KRW 11.7 billion
Local job creation KRW 2 billion Community event support KRW 1.06 billion
Self-sufficiency support Jeongsun

for vulnerable groups* KRW 1.5 billion regeneration support KRW 850 million
* Recovery, return to employment, High1 Bakery
High1 Sharing Hope Flea Market Support for Jeongseon Urban Regeneration
38
Safe Resort
Management Approach
Kangwon Land is the largest multi-use facility in Gangwon- Key achievements

do, where various safety risks exist. We have obligations to
establish a safe national rest area for customers, workers, and
the public through precautionary measures against accidents. 0cases
Major accidents for
7 consecutive years
Management Approach
44.8% reduction
In order to create a safe national rest area, we are raising awareness,
The percentage of resort safety
inspecting and improving various risk factors that can occur
accidents compared to the previous year
throughout the resort, such as fire and food hygiene management,
as well as facility safety controls. We have established safety
measures for accidents and disasters so that visitors can use the
resort without concern, and minimized safety-related accidents by
inspecting facilities subject to safety management to create a safe Relevance of Key Issue
workplace environment for our employees.
• Safety and health
Our strategy
Establish an integrated disaster

management system
Strengthen prevention-based facility

safety management
Identify and improve risk factors in

advance
Strengthen safety and health training

and raise awareness
39
Realization of Safe Resort
Establishing a Disaster Safety System
Kangwon Land established an integrated disaster management system, which incorporates and
controls company-wide occupational safety management. We organized the Resort Security Team
for disaster and safety, the Industrial Safety Team for worker safety, and Casino Security Team for
casino safety, and upgraded the Security Service Office into a department that reports directly to
the Vice President. In addition, we appointed each departmental head as a management supervisor
who is responsible for taking safety measures to achieve zero accidents in the workplace.
In 2017, we obtained the KOSHA 18001 Certification from Korea Occupational Safety and Health Agency
(KOSHA), becoming the first in the industry to obtain the certification. We developed and distributed
reponse manuals for nine types of disaster and safety accidents that include fire, gas poisoning,
epidemics, terrors, and storm and flood damage. In addition, we have proactively expanded equipment
and materials to respond to safety accidents, such as securing emergency medicines, expanding
and deploying Automated External Defibrillator (AED), and purchasing equipment to fight forest
fires. Through these efforts, we received the highest-grade A in the 2018 Safety and Health Symbiotic
Cooperation Program evaluation hosted by the Ministry of Employment and Labor and the Korea
Occupational Safety and Health Agency (KOSHA). We were also awared the Grand Prize for safety and
management in 2019 Korea Brand Hall of Fame.
Integrated disaster management system
Category Occupational accidents

Social disasters Natural disasters
(safety accidents)
Type • ‌Fire, terrorism, rally and protests, etc. • ‌Forest fire, heavy snow in the Kangwon • ‌Safety accidents of customers and workers
• ‌New disasters such as fine dust, etc. area (storm and flood damage) • ‌Psychological and musculoskeletal
• ‌Infectious diseases such as swine flu, • Earthquakes near local areas such disorders
MERS, etc. as Donghae in Kangwon, Pohang in • ‌Order site and facility accidents
Gyeongbuk
Characteristics • Extensive, large-sized, and chained • ‌Natural disasters that cannot be prevented • Manmade disaster due to negligence
• ‌Threats to people’s lives and common • Single and multiple disasters • ‌A number of safety accidents that can be
safety prevented
Risk factors • ‌Indifference, negligence, and insensitivity • ‌Mountainous terrain, decentralized • ‌Emotional labor, job stress
to safety workplace • Repeated work, irregular sleep
• ‌Accidental provocations by dissatisfied • ‌Long-distance, isolation between related • ‌Vulnerable workers (pregnant women,
customers organizations persons with disabilities, etc.)
• Uncertain path of infectious diseases • ‌Facility safety (earthquake resistance
performance, etc.)
Vision Korea’s safest, most pleasant national rest area
Goal To garner an S grade in the overall safety ratings in 2025
Prevention • ‌Assessment of the level of anti-terrorism • ‌Regular inspection and precision diagnosis • ‌Safety inspection by external professionals
safety management of construction / civil engineering • ‌Risk assessment, work environment
• ‌National safety assessment of tourism • ‌Machinery performance test and measurement
accommodations assessment • Investigation of musculoskeletal burden risk
• ‌Joint inspection of ski resort related • ‌Regular inspection of electrical machines factors at work
organizations • ‌Comprehensive fire-fighting precision
• ‌Safety operation and management diagnosis
advisory for Water World
Response and • ‌Internal disaster safety training (308 • ‌Revision of disaster response manuals • CEO-led safety first management
recovery sessions) • ‌Joint training between related • ‌Acquired KOSHA 18001 recertification
• ‌System reinforcement and training organizations (25 times) • ‌Customized safety management for
improvement • ‌Raising the public’s safety awareness individual workers
• ‌Construction of external networks
40
Establishing the Company-wide Emergency Operation Center
In order to effectively manage disasters at the company level, we established the Emergency
Major accidents for
Operation Center. In the center, we operate a real-time monitoring system to assess weaknesses
7 consecutive years
within the resort complex and support the initial on-site responses to any incidents. In particular,
ZERO the center serves as a control tower that can proactively address disasters such as typhoon, flood,
and heavy snowfall.
With the Emergency Operation Center, we are able to monitor any disasters by monitoring all records
taken with various mediums including more than 2,000 CCTVs installed throughout the resort, mobile
phones, and drones. Moreover, we are equipped to minimize damage from any disaster by a real-
time detection system that is connected to fire detectors and early weather warning system that is
connected to weather sensors monitoring temperature, humidity, and wind speed.
Adoption of Industry’s First Safety Forecast System
We are committed to preventing safety accidents by implementing the safety forecast system, the
A reduction in customer safety first for the industry, during the peak season with a high accident rate. The safety forecast system
accidents compared to
the previous year
is implemented twice a year to prevent and take precautions against accidents by sharing cases
of different types of safety accidents (document enforcement, CGL (Commercial General Liability)
insurance training) with all employees. The safety forecast system is valuable as we prepare for the
44.8% summer and winter peak seasons. Analyzing major risks and types of accidents at each business
site and adopting preventive measures enabled us to achieve a reduction of 44.8% in customer
safety accidents (145 cases in 2018 → 80 cases in 2019) compared to the previous year.
Preemptive measures against safety accidents

Major risks for each workplace We proactively prevent safety accidents that reflect the nature of multi-use facilities to ensure safety
anytime, anywhere. We have established and implemented preventive measures by analyzing the
Throughout Fire, terrorism, emergency, major types of safety accidents that reflect the nature of the industry.
the Resort infectious diseases
Slip, collision, drowning,
Water Ski Resort Water World
disappearance, skin
World
disease •F ree safety helmet rental: Child → All customers • ‌Slip prevention: Installation of non-slip mat and
(28,695 rentals) guidewire
Collision, injury caused
Ski resort • Slope
‌ without music: The first in the industry, new • ‌Water quality inspection: 3 times a day by the
by falls safety culture company, once per month by an external agency
• Strengthened
‌ patrol: One or more people are • ‌Prevention of vermin: Installation of a prevention net
stationed on each side of the slope. for snakes and bats
Food Food poisoning, allergy • Reinforced
‌ protection walls: Reinforcement of safety • ‌Lost child prevention: Providing safety bracelets with
fence, additional tree planting the guardian’s contact details for children
Resort Casino
• Placement
‌ and management of fire extinguishers: • ‌Operation of private police guards: On-site safety and
Trails, trekking routes, etc. order maintenance (8 people)
(81 items) • ‌People counting system: Monitoring the appropriate
•F ood Safety: Food safety campaign, food hygiene number of guests (6,000 people)
inspection (once a month), food hazard inspection (4 • ‌Emergency kit: Installed at major exits of the Casino (4
Self-Assessment 1,245cases times), supplier hygiene inspection (2 times) locations)
(as of 2019) •E xpansion of Automated External Defibrillators • Safety Promotion: Provide emergency evacuation tips
(AEDs): 30 (in 2018) → 50 (in 2019) and guidance (1,000 copies)
On-site Measure 1,066 cases Safety Analysis and Risk Assessment
In order to establish plans for improvement by identifying risks and issues in the workplace, we
Corrective Measure 115 cases conduct safety and risk assessments that include our suppliers and contract workers. Through
on-going, regular and joint assessments, we identify and improve harmful and risk factors.
On-site instructions and guidance are provided through safety inspections and analysis, and
Best Practice 64 cases 64 cases various efforts are made to reduce industrial accidents, including improving hazardous facilities,
investigating and managing hazardous substances, and expanding safety training.
41
Systematic Safety Inspection and Introduction of a New System
안전 소통 채널 In addition to the Safety and Health Council, the Safety and Health Mutual Cooperation Group,
where various stakeholders including management, employees, and partners communicate
for safety-related issues, we established the Safety Labor Council and the Safety Management
Occupational Safety Committee to strengthen safety channels in 2019.
and Health Committee
Established in 2011 / Once per quarter We designated the 4th, 14th, and 24th of each month as Safety Inspection Days and conduct a “4·4·4
Safety Inspection” campaign for all our workplaces and major facilities and worksites of suppliers. The
campaign is designed to provide additional inspections to the existing touring inspections and monthly
Safety and the Safety
Health Symbiotic Management regular inspections. Under the campaign, safety inspections are conducted by topic on the 4th (Basic
Cooperation Group Committee Inspection Day), 14th (Fall Prevention Day), and 24th (Dangerous Equipment / Facility Inspection Day).
Moreover, we introduced a new system to raise safety awareness and prevent safety risks in the
Established in Established in
2013 / 34 2013 / workplace in advance. We are also introducing and operating the “Ladder Certification” that conducts
partners Once a month a comprehensive inspection of and attaches safety certification to ladders that can pose potential
hazards. Other initiatives include the ‘Work Suspension Order’ that enables workers to voluntarily stop
Safety Safety work when they perceive any danger and the “Permit to Work” that requires contractors to obtain
Labor Council Management permits before embarking on hazardous works.
Committee
Established in 2019
/ 3 times
Established in Safety Training and Safety Culture Activities
2019 / 3 times
We actively conduct safety education and safety culture activities to raise worker’s insight to identify
hazards. We conduct occupational safety training through a number of programs including organizing
a safety knowledge concert with labor-management and partner companies, onsite safety training
before work, selection of in-house safety and health instructors (6 instructors), and refresher training
for nurses. In addition, we operate various of training suitable for the resort industry, such as safety
manager training, food hygiene training, snow sweeping〮patrol〮ski school〮cableway staff safety training,
Cardio-Pulmonary Resuscitation (CPR) training, and water safety training. For the internalization of
safety awareness, we carry out various safety culture activities such as collecting near-miss cases and
distributing brochures, safety posters, and motto contests and outstanding safety and health proposal
contests and operating the KS (Kangwon Land Safety Campaign Patrol), a daily safety supervisor.
Establishing the Food Safety Management System
In order to thoroughly manage the food hygiene of hotels in the resort and achieve zero food safety
accidents, we have obtained ISO 22000, the food safety management system. The ISO 22000 is the
international standard system for effective management of food safety hazards that may occur across
all processes of food production, manufacturing, and distribution. High1 Resort Grand Hotel meets
international food hygiene management standards such as implementing key management standards
for food hazards, pest management, and personal hygiene and ensures food safety across the food
supply chain by periodically implementing food safety campaigns, food hygiene tests, food hazard tests,
and supplier hygiene tests.
Overcoming the challenges and sharing the painful burden caused by COVID-19 FOCUS
ON
In order to prevent the spread of the COVID-19 pandemic that has affected the world and to create a
safe business environment, Kangwon Land is focusing on quarantines at all business sites of High1
Resort. From February to June 2020, we have closed certain casino venues and hotel / condo resort
facilities. We are conducting regular and frequent quarantines for all business sites. Kangwon Land
is complying with the government’s quarantine guidelines and high-intensity self-quarantine system,
and establishing quarantine measures such as installation of HVAC sterilization system, installation
of partition screens between customers and staff, social distancing, customer’s fever test and
requesting medical check-up questionnaire.
In addition, we share the burden of COVID-19 with our communities by providing emergency
relief supplies to welfare facilities such as community child care centers and meals for children of
underpriviledged groups. We are also donating a certain portion of employees’ salary (KRW 52.4 million) Urgent support for information service
and executives’ remuneration (4 months 30%) to our communities. devices for online learning of students in
abandoned mine areas due to COVID-19.
42
Eco-friendly Resort Operation
Management Approach
We are minimizing the inevitable waste generated by the Key achievements

operation of large-scale accommodation facilities and restore
damages in the forest and ecosystem of the Baekdu-daegan
area due to resort development. In addition, we are actively
saving energy and reducing GHG emissions in response to the 83,321 tCO eq 2
climate crisis that affects the globe. GHG emissions in 2019
Management Approach 5,659 tons

Sales of carbon credits
We are strengthening our position as a green company by minimizing
damage to the environment and implementing eco-friendly policies in
the operation of the resort. We practice resource circulation by recycling
wastes and introduce various renewable energy facilities in the resort to 2,447 tons
take the lead in reducing GHG emissions. Recyled waste to reduce landfill
Our strategy
Connection to Key Issue
Minimizing damage to the • Energy / GHG
environment • Safety and health
SDGs connectivity
Resource circulation practice through
waste recycling Goal 12. Sustainable consumption and production
Ensure sustainable consumption and production
patterns
Energy conversion with the

Goal 13. Climate action
introduction of green buildings
Take urgent action to combat climate change and its
impacts
Promoting eco-friendly activities with Goal 15. Life on land

customers Sustainably manage forests, combat desertification, halt
and reverse land degradation, halt biodiversity loss
43
Building an Eco-Friendly Management System
As a measure to achieve our environmental goal of serving as a “national rest area that co-exists
with nature,” Kangwon Land established and promotes three strategies: Clean Environment
Protection to prevent damage, Natural Ecology Protection, and Green Culture for Coexistence
with Nature. In addition, we create an eco-friendly resort by operating a management system
including the ISO 5001 certification of the international standard energy management system and
government green company designation.
The National rest area co-existing with nature
Green Culture for Coexistence

Clean Environment Protection Natural Ecology Protection
with Nature
• ‌Establishment and operation • Ecosystem conservation

of an environmental • Securing water resources • ‌Compliance with the
management system • ‌Introduction of renewable energy Biodiversity Convention
• Green building certification • GHG energy optimization • ‌Nature protection activities
• Expansion of waste recycling with customers
Response to Climate Change
Introduction of renewable energy
By introducing renewable energy, High1 Resort reduces GHG emissions generated by the use of
energy. High1 Water World uses underground energy sources from abandoned mine areas to cool and
heat the Water World. In addition, a solar canopy (solar roof) is installed at the customer route of the
outdoor parking lot to enhance customer convenience and produce electricity using solar energy.
We actively adopted and operate various types of renewable energy such as solar hot water, wood
pellet boilers, and recovery of waste heat from the machine room of the Grand Hotel. With these efforts,
in 2019, we reduced GHG emissions by 1,710tCO2-eq and sold 5,659 tons of carbon credits (worth KRW
160 million) through proper compliance with the government’s GHG emissions trading scheme.
Photovoltaic High1 Resort

Geothermal Waste heat
(PV) / Solar
heat Renewable Energy recovery
Wood pellet
power
151 329 GHG reduction 279 951

(tCO2-eq)
Green building and energy efficiency improvement
High1 Resort aims for eco-friendly buildings that use high-efficiency energy. The administrative
building of the headquarters is recognized as a green building and received the ‘Most Excellent
Grade in Green Building’ and the ‘First Grade in Building Energy Efficiency Rating’ from the
domestic Green Building Certification System. In addition, we are increasing energy efficiency by
replacing all workplace lighting with high-efficiency LED lamps. As of 2019, we replaced 96.2% of
all lighting equipment with LEDs, aiming to replace 100% by 2020.
44
Use of Electric Vehicles and EV Charging Stations
Status of EV (Electric Vehicle) With the increasing number of eco-friendly vehicles, we built an EV charging station infrastructure
charging stations to prepare for future charging facilities. We have a total of 36 EV charging stations (15 for
(Dec. 2019, Unit: station) customers, 21 for business) in the resort. In addition, we own and operate six hybrid vehicles and
31 electric vehicles, achieving 70% of eco-friendly vehicle ownership, of which 80% are electric
vehicle ownership in 2019. These achievements are aligned with the guidelines promoted by the
government.
36
Water Resources and Waste Management
58% 42%
Customer
15
We promote various water-saving activities to address the global water shortage and proactively
Business 21 respond to the risk of water scarcity stemming from our geographical characteristics. We
formulated water resources management measures for efficient water management, and two
reservoirs (total capacity: 240,000 tons) have been autonomously supplying the necessary water.
Water recycling and expansion of water reuse
In 2019, we established a new gray water system for the Palace Hotel. After treating gray water with
sewage purification proess, the treated water is for landscaping of the golf course. We achieved a
replacement cost of the water supply of KRW 1.35 billion by reusing 510,000 tons of treated mine
water. In addition, we repaired 17 km of water pipe to reduce leakage and converted the cooling
tower water supplement with recycled water. Through these efforts, the tap water usage has been
reduced by 24% in 2019 compared to the previous year, and water, lighting, and heating expenses
have been reduced by KRW 1.01 billion.
Reduce Recycle Reuse
Improving water usage Expanding water recycling Expanding water recycling

efficiency • ‌Recycling primary- treated • Use of rainwater
• Optimization
‌ of water use in wastewater • Reuse of treated mine water
the workplace - ‌Supplementary water for
• Minimizing
‌ water loss such as the cooling tower for snow
leaks removal
- ‌Golf Course Landscape Water
Waste recycling and resource circulation
High1 Resort minimizes wastes that are inevitably generated due to the operation of large-scale
accommodation facilities and establishes a resource circulation system to achieve an eco-friendly
resort. We process recycled products at the Integrated Selection Center to minimize the amount of
* ‌Upcycling: A recycling method that redesigns
obsolete or discarded items to reform them waste and practice Upcycling* of waste resources. We recycled 2,447 tons of landfill wastes and saved
into products that have high quality and high a total of KRW 740 million in expenses in 2019 by converting wastewater sludge as an auxiliary material
environmental value. for cement, grass clippings in the golf course as slope fertilizer, and food waste as organic fertilizer.
KRW 170 million in Supplied as supplementary

795 tons of wastewater sludge processing cost material for cement
77 tons of grass clippings KRW 20 million in Replaced KRW 10 million of
in the golf course processing cost golf course slope fertilizer
1,575 tons of waste fine Used as decomposed granite
KRW 540 million in
powder in the golf course for wildflowers
processing cost
Produced 100kg of eco-friendly
Food waste Biodegradation organic fecal soil
45
Green Resort Co-Existing with Nature
Establishment of the Concept of Nature-friendly Resort
The concept of High1 Resort is to serve as a family-type, nature-friendly four season resort. We
strive to creates a recreational space where people and nature can coexist. As the “national rest
area with flowers, wind, forest, and light” as our brand, we are promoting a nature-friendly image
through the storytelling of “From High1 Wildflowers to Local Contents”. We offer various eco-
friendly experiences and relaxation spaces by creating a new park linked to the local wildflower
village project, converting a closed commercial space into a botanical ‘Glass Garden’, and
1 operating a healing program for the Forest Healing Foundation.
Restoration of natural ecology damaged by the resort construction
We expand the foundation for coexistence with nature by restoring the ecosystem damaged by the
resort construction. While feeding wild animals, removing snares in the mountain goats’ habitat,
and checking the habitation of endangered species (leopard cat, flying squirrels, etc.), we removed
invasive plants and planted wild daylilies in an area of 13,000㎥ on the leased land. Furthermore,
we planted spikenards, which are a rare species of tree, around the forest trail.
2
We improved aesthetics of artificial facilities and regenerated nature by planting 1,000 birch trees
1 High1 Tower (Baekunsan)
2 Palace Hotel Walkway
over 1 meter tall on the slopes of Mooreung Dam that was constructed to secure water for snow
removal at the ski slopes. In addition, we work with Jeongseon-gun to continue purifying the
Jijang Stream, monitoring the water quality of five surrounding rivers, introducing a winter break
for forest roads, and planting events.
Environment-Friendly Customer Service
We implement eco-friendly activities such as green card campaigns with customers and
reduce disposable products to achieve a green resort. A total of 4,788 customers in 2,394
rooms participated in purchasing products that do not replace sheets and towels for more
than two nights of stay, resulting in a saving of 161 tons of washing water. We participate in the
environmental campaign by selling Miir Tumbler*.
* ‌Miir tumbler: Donation code is given for each product, and 3% of sales revenue is donated to the global water
purification project
Enhancing Customer and Community Environmental Awareness
We organize education and campaign activities for customers and local communities to spread
awareness of environmental responsibility. In order to deliver the correct environmental information,
we broadcast our promotional video produced by the Ministry of Environment by organizing our
own channels on TVs in all rooms of hotels and condos. In addition, we operate a Purum Visiting
Classroom for customers and local children to continuously provide environmental education.
Sustainability
Management
48 Sustainability Management
50 Stakeholder Communications
51 Governance
53 Risk Management
55 Ethical Management
59 Talent Management
63 Human Rights Management
64 Win-Win Partnership
69 Tax Strategy
70 Information Security
72 Materiality Assessment
47
48
Sustainability Management
Sustainable Management Strategy System
Sustainable management strategy
Kangwon land carries out its management policies and vision for sustainable management
in order to achieve the company’s missions and vision stipulated within the management
strategies. In particular, we create values and drive a balanced development of our various
stakeholders by implementing sub-tasks according to our promotional strategies. We maximize
the values that we provide to our stakeholders by undertaking our social responsibilities through
diverse sustainability activities and generating various sustainability performances aligned with
our business strategies.
Value Creation of Sustainable Management
Kangwon Land places a high priority on improving the quality of life for the local community.
As part of this commitment, we are developing projects to contribute to shared growth in the
abandoned mine areas and creating quality jobs. We also provide friendly and high-quality
services to lead the industry and set an example in terms of safety and eco-friendly operation
through the recycling of resources and GHG emissions reductions. Moving forward, we will
achieve our vision of “Korea’s leading resort with mutual growth and trust with the public and
supporting abandoned mine areas” through transparent and sustainable practice.
Mission Develop the economy in the abandoned mine areas for regional development and improve the quality
of life of local communities and contribute to the promotion of people’s happiness by leading the leisure culture.
Social value vision

Kangwon Land, the national representative resort that connects people and adds value
4 Values
❸ Value
‌ of hope for the “future
❶ Value of “Public comfort”
generation”
Lead an open leisure culture Build a foundation for inclusive trust
Heal vulneral Prevent and heal

Provide safety- Preserve the Expand
groups that are behavioral and Foster
first service to
marginalized in gambling Develop eco-friendly environment and
future talent
wholesome
customers leisure businesses minimize pollution ethical awareness
leisure activities addiction
4 Strategies
Enhance business competitiveness Strengthen innovation capacity
using local resources and develop new business
16 Tasks
Establish Create socially
Strengthen self- Expand the Respect the safety Protect human Create a
cooperative and
sufficiency of the collection point for integrated jobs and rights of rights and provide workplace without
support system for
local economy residents’ opinions workers emotional stability discrimination
local organizations
Expand a cooperative growth model Create a win-win work environment
❷ ‌The value of self-reliance of ❹ The

‌ value of pride in the
the “community” “community members”
2025 Goals Management of social value strategic Contribute to social value (evaluated by the Ministry of Economy
External
Internal
task index in 2025: 100 points and Finance): Average of Top 5 public institutions
Operation system Establish a strategic system Business plan Business execution Performance review and management Internal and external promotions
49
Sustainability management performance and efforts

Exceed Satisfied More Efforts Needed
Main Business KPI Achievements Efforts to implement
Percentage 2016 9.34

of resort - ‌Develop and sell resort package products using local tourist
sales out of 2017 10.2 attractions, experience content, events, etc.
company- - Increase resort sales by implementing flexible pricing policy (RM)
2018 11.3 of hotel and condominiums
wide sales1)
(%) 2019 11.5
- Develop exceptional content that combines nature-friendly themes

2016 571,309
Number of and experience tourism trends
Creation of
visitors in low 2017 658,491 - Develop tourism content with the region (diversification of JTYS
resort complex products and expansion of sales channels)
season2) 2018
for all 4 seasons 724,315 - Develop cultural content to meet customer needs
(People)
- ‌Transform all employees into resort sales and marketing agents
2019 871,897
- Keep safety as the top priority in business management, strengthen the

2016 dedicated organization for safety, and provide additional personnel
Accidents 62
- Establish a safety system to proactively respond to disasters and
involving 2017 85 accidents
resort - Raise safety awareness throughout the year by development of national
guests3) 2018 145 safety campaigns
(Case) - Focus on accident prevention with safety forecast system for each
2019 80
period and business type through analysis of safety accident types
Contribution - I mprove local use of High1 Point system to increase; the actual
2016 24.4 income of local residents
Shared growth to shared
2017 - Expand
‌ purchase of local products by improving the purchase
and local growth in 29.8
system taking the nature of the abandoned mine areas into
economy abandoned 2018 38.2 account
recovery mine areas4) -S upport startups of social economy organizations to expand the
(%) 2019 39.7 foundation of local industry
Number 2016 2,157 - Reinforce self-control function to raise awareness of responsible

of over- gambling and improving operation for system vitalization
indulging 2017 1,739 - Expand and strengthen on-site preventive activities to reduce
customers that over-indulge in casino gaming
guests in 2018 1,548 - Strengthen the over-indulgence group management function and
casino5) prevent recurrence, promote healing rehabilitation projects such
Establishment (Person) 2019 1,604 as cultivating economic self-reliance
of responsible
gaming
- Promote balanced development of publicity and profitability
culture 2016 B+
Enhancement through compliance with total sales amount and spread of a
of responsible healthy gaming culture
2017 S0 - Strengthen illegal / fraudulent acts enforcement and reporting
domestic
2018 S0 system to create a responsible casino gaming environment
casino6) - Operate an organization dedicated to monitoring illegal gambling
(Grade ) 2019 S0 and a campaign to eradicate illegal gambling in the community
1) Total
‌ resort sales excluding casino sales out of the total sales 4) ‌Amount of the contribution made for the shared growth in abandoned mine
(excluding the sales of Water Park opened in 2018) areas / other operating profit)
2) Resort guests from March to June, from September to November 5) ‌Over-indulging guests: guests who have entered the casino for at least 100 days
3) Performances
‌ based on the date of occurrence with the completion of CGL a year
(Commercial General Liability) insurance due to resort accidents based on the 6) ‌Evaluation results of the responsible gaming industry by the National Gaming
end of the year basis Control Commission
50
Stakeholder Communications
Kangwon Land puts stakeholder’s trust as a top priority and strengthens communication in all
areas of management activities. We categorize stakeholder groups into customers, the public,
community, partners, employees, experts, and public institutions to continuously identify and
reflect expectations and build communication-based trust relationships.
Stakeholders Communication direction Key issue Communication channels (frequency)
- ‌Customer communication channel (SNS)

• Produce content reflecting trends - Customer meetings (5 times)
• Add a function to expand by sharing customer participation Customer satisfaction - High1 24
• Create communication content that fits the characteristics - ‌Compliment / Thank-you cards (1,785
people)
Customers
• Innovation through converging public opinion - ‌Citizen Participation Innovation Group

• Strengthen publicity by finding a task Strengthen publicity (twice a year)
• Improve public service that reflects public opinion - VOC (permanent)
The Public
- Local win-win council (11 times)

• Local economy vitalization support plan
Win-win and - Local roundtable meetings (92 times)
• Information sharing and cooperation for the promotion of
abandoned mine areas cooperation - ‌Local residents’ communication band
(permanent)
Community
Transform non-regular - Win-win cooperation workshop (3 times)

• Create win-win relationship by resolving partners’ difficulties
- Supplier Conference (53 times)
• Agree to transform non-regular employees to regular employees to regular - ‌Labor-Management Expertise Organization
employees employees (8 times)
Partners
• Establish an organizational culture of integrity by building - ‌Integrity Communication Board (permanent)

consensus on integrity Organizational - Visiting Audit System (15 times)
• Share management environments such as policy and current efficiency - ‌On-site communication of the Management
issues (205 times)
Employees
- ‌Labor-management joint shift council (10

times)
• ‌Improve mutual understanding by strengthening Labor-management
- ‌Labor-management ‘On demand’ meetings
on-site communication on management issues win-win (Always)
- Labor union communication band (always)
Labor unions
- ‌Safety Management Advisory Committee (3

• Risk factor assessment and management system times)
• Select ideal management innovation tasks Advice for key policies - Open Innovation Committee (8th)
• Fair human rights management practice - ‌Human Rights and Ethics Management
Committee (2 times)
Experts
- SOE Integrity Society Council

• Lead government policy Actively implement
- Kangwon Innovative City SOE Innovation
• Solve community problems government policy Council
Public institutions
51
Governance
The board of directors (BOD), the highest decision-making body, determines strategies and policies
for major issues across the economy, society, and the environment sectors. The board also controls
and supervises management activities. The BOD consists of 13 people including 4 executive directors,
1non-executive director, 8 independent directors. The Chairman of the BOD is not a CEO, but a senior
independent directors, and Kangwon Land does not have any restrictions on gender, race, nationality,
or age when appointing directors. We strengthen our management expertise by appointing
independent directors with expertise in four sub-areas under the corporate strategy directions.
Composition of Directors
(As of March 30, 2020)
Classification Title Name Career Classification Name Career
Planning & Management Manager of the

Non-executive Kwon Former) Head of the Management Strategy
Board of Audit and Inspection of Korea,
Moon Director Sunrok Division, Mine Reclamation Corp.
CEO Second Deputy Director
Taegon
In-house Audit Committee Member of
Samsung Life Insurance Former) Technical Secretary Official of the Korea
Kim Forest Service
Standing Former) Deputy Mayor for Administrative
Affairs of Daejeon Metropolitan City Jinkak Present) President of the National Unification
Audit Song
Committee Seokdoo Council in Taebaek-si
Executive Vice Governor for Administrative Affairs
Director Member of the Gangwon Provincial Office
Administrative Officer of the Office of the Former) Chairman of the Regional Current
Vice Han President Countermeasures Committee in Taebaek-si
Lee
President Hyungmin
Managing Director of Paradise City Moonkeun Present) Head of the National Unification
Head of the General Services Division of Independent Director Advisory Council in Taebaek-si
Head
Manager of Ko the Policy Coordination Bureau,
Planning & Kwangpil Presidential Committee on Regional Choi Present) Head of the Regional Development
Management Development Kyungsik Institute in Jeongsun (3.3 Memorial Association)
Head of the Management & Planning Lee Former) CEO of Seokgwang Industry
Choi Taehee Construction
Office, Boryung Medience (Managing
Audit Donyong
Independent Director) Jung
Committee Present) Head of Dogye-eup Prosperity
Director Chairman of the BOD Kwangsu
Member Kim
Present) Associate Professor of Kyonggi Jang
Jooil Former) CEO of Yeongwol Inhabitant
University Kyungjae
Appointment of Board Member
(Unit: people) Kangwon Land appoints directors in a transparent and fair manner at the general shareholders’
Number meeting. The CEO, Standing Audit Committee members, and Independent Directors are appointed
Strategic
Expertise
of Non- in a fair manner through the Executive Director Nomination Committee. Independent directors are
direction executive
Directors appointed in a fair manner by the Independent Director Nomination Committee, which consists of
more than half of independent directors. The Audit Committee consists of three or more members.
Safe, eco- Forest and
friendly resort healing
1 More than two-thirds of the Audit Committee members are appointed among independent directors.
At the time of appointing the Audit Committee member (Independent Director), shareholders who
Shared
growth in Local economy hold more than 3/100 of the total number of voting shares issued are not allowed to exercise their
5
abandoned and policy voting rights, and in the case of appointing the Audit Committee member (Executive Director), the
mine areas
largest shareholders and their stakeholders who hold more than 3/100 of the total number of voting
Public policy 1 shares issued are not allowed to exercise their voting rights to maintain independence.
Sustainable
innovation Strategic and
Independence of BOD
management accounting 2
management
In order to control and maintain check and balance of management, the BOD of Kangwon
Land operates with independence and expertise, and is composed of professionals in a range
of sectors including academia, accounting, and business management. The BOD appoints
directors in pursuant to the Article 542, Paragraph 8-4 of the Commercial Act and secure the
directors’ independence. The independence of BOD operating procedures is specified in the
BOD provisions and the articles of incorporation. The appointment procedure of directors is
also conducted objectively and fairly by the Executive Director Nomination Committee.
52
Evaluation and Compensation of the BOD
Kangwon Land has prepared performance evaluation systems and compensation programs to efficiently
compensate its BOD members during their tenure of office through fair independent evaluation processes.
Executive directors including the CEO are remunerated under the remuneration limit approved at
the general meetings of shareholders and receive incentives based on their performances. The CEO’s
management evaluation bonus depends on the result rating of the management evaluation conducted
by the Performance Appraisal Board for Public Corporations of the Ministry of Strategy and Finance. The
details of compensations for executive and non-executive directors are made public through our business
reports and ALIO (All Public Information In-One) website.
Support for new directors Comprehensive support for Operating Performance of Board of
independent directors Directors
Orientation for General status, major business,
Newly Appointed method for operating the board General status, major business, 2017 2018 2019
Directors of directors Orientation method for operating the board of
directors Number of board
8 10 9
meetings (frequency)
Provide Business CEO management, key Support with Dedicated personnel and in-house
Information management data, on-site visit human services and information network accessibility Resolution* (case) 30 53 40
materials support
Ratio of amendment
Support to identify 0 0 10
Support Major and management issue resolution (%)
Operating Sub-committee, and understand
Management report
agenda briefing session management issue
Activities
Board meeting
Provision of agenda and 88 94 95
Management suggestions from Review and support attendance rate (%)
supplementary materials in
independent directors, review by for agenda
Feedback advance
the department in charge and independent director
Professionalism Field communication and 89 92 94
integration of the reviews into Field visit support attendance rate (%)
business management inspection
* The
‌ preliminary deliberation rate for the BOD agenda
is 100% for three consecutive years
Ownership Structure and Legal Form
Stockholder Distribution For the publicness and efficiency of casino business and as per the Article 11 (2) of the ‘Special
(As of December 2019) (Unit: %) Act on the Assistance to the Development of Abandoned Mine Areas’, Mine Reclamation Corp.
(36.27%), Gangwondo Development Corporation (4.89%) and Gangwon-do (1.13%) and four
Public sector 51.01 municipalities (Jeongsun, Taebaek, Yeongwol, and Samcheok, 9.86%) account for more than
51% of public shareholders of Kangwon Land. In addition, foreigners (29.34%), domestic
5.24
institutions and individuals (14.41%), and treasury stock (5.24%) own the stakes.
Treasury stock
Major Subsidiaries
Foreigners 29.34
Together with the Mine Reclamation Corp., the largest shareholder, Kangwon Land operates
Domestic
14.41
seven subsidiaries including our company. All six companies, except the Mine Reclamation
institutions
and Individuals Corp. (which is not a listed company pursuant to the Commercial Act) and our company, are
unlisted. The company that influences Kangwon Land’s management is the largest shareholder,
the Mine Reclamation Corp., which aims to efficiently implement the mine prevention business
in accordance with Article 31 of the Mining Damage Prevention and Restoration Act, create a
pleasant living environment, support the coal industry, and contribute to the national economy.
It is a non-profit public corporation established on June 1, 2006.
(As of December 31, 2019)
Mungyeong Leisure Town High1 Entertainment2)

Golf Course and Golftel Entertainment
Daecheon Resort1) High1 Choochoo Park

Golf course and resort Railroad experience resort
1) Promoting M&A prior to approval Kids Lala High1 Partners

for corporate rehabilitation Children’s job experience Kangwon Land’s facility
theme park maintenance business, etc.
(주)하이원파트너스
2) All businesses terminated

53
Risk management
Strengthen Risk Response
Preemptive Risk Management
Kangwon Land operates a monitoring and evaluation system to manage risks that may
arise amid a fast-changing business environment. In addition, we actively manage risks from
prevention perspectives by strengthening follow-up management through audit activities and
continuously improve internal control system.
Core Risk Classification
Kangwon Land manages financial risks at the Strategic Planning Division and Management & Support
Division. Non-financial risks are managed in a comprehensive manner by the Comprehensive
Control center in response to social and environmental changes, such as climate change and cyber
terrorism. Financial risks are classified into liquidity risk, profitability risk, investment risk, and
operational risk, and are managed systematically. Non-financial risks are classified into information
security, environment, disaster response, and corruption and are managed through various activities
including emergency protection system, resource-saving activities and facility safety inspections.
Respond to risks through maintenance of no-arbitrage condition and

Liquidity
investment execution
Improve resort’s revenue through improvement of profit structure and

Profitability
cost reduction, including establishment of a five-year financial plan
Financial
risks
Improve revenue by reflecting the opinions of external experts and
Investment
diversifying investment assets
Operation Precautionary audit, prevent accounting fraud, and improve transparency
Information Strengthen the ability to prevent personal information infringement

·Security through self-simulation training
Establish environmental management guidelines to become an eco-

Environment
Non- friendly resort (energy and resource reduction)
financial
risks Establish an integrated disaster management system and strengthen
Disaster·Safety
prevention-oriented facility safety management
Reinforce inspection for implementation of the code of conduct and

Corruption
laxity of discipline special service
Strengthen risk management
Kangwon Land has strengthened its risk management by operating an internal control system.
We have enhanced our early warning system by utilizing the e-audit system, strengthened the
internal monitoring system through introducing anonymous reporting system, and established
solicit registration system. In addition, we have improved the contract structure for purchasing
contracts and revised our audit regulations by appointing external professional auditors and
visiting auditors at important business site inspections.
Moreover, we have strengthened our own safety and health inspections to ensure customer
safety as we have multi-use facilities, and conducted preliminary risk management activities by
establishing rigorous workplace disciplines such as conducting service inspections at disaster
vulnerable times (peak season, national holidays).
54
Crisis and Opportunity
Risk Nature of Risk Potential Impact Kangwon Land’s Response
• Kangwon Land, a sole domestic casino • Profits may decline should Kangwon • Expand new value-added businesses in
operator in Korea that was established Land fails to secure differentiated anticipation of the expiry of the special act. To
pursuant to Special Act on the Assistance competitiveness in the case of a this end, we will improve the sales structure
to the Development of Abandoned Mine- transition to real competition.
neighboring Areas, is facing the expiration
of the act in 2025.
• Factors for a declining profit escalates due
to increased demand for domestic casinos
in other regions and increased competition
Enter a among large multiplex resorts
monopolistic
competitive market
• As natural disasters increase, there exists • Due to the business attributes, special • We have established ‘Emergency Operation
a risk of large-scale accidents due to the management is required as a variety Center’ to monitor company-wide crisis
attributes of our business. of factors can place our employees, situations and enhanced our response
• Considering the attributes of the casino executives, business suppliers measures.
and resort business, a thorough safety and customers in physical and • We have conducted comprehensive health and
inspection and management of the facilities psychological danger safety assessment by a third party to identify
are required and customer risks exist. potential hazards and risks in our workplaces
and acquired the KOSHA 18001 certification for
safety and health of our employees.
Increased safety
accidents
• Preservation of natural environment is of • Any environmental destruction • We conduct various environment preservation
particular importance as we established occurring in the course of business activities such as forest and river preservation,
facilities and infrastructure and operate may negatively impact our image and planting trees and feeding wildlife.
the business in the place blessed with the reputation. • We renewed qualifications for the energy
natural beauty of the Gangwon Province. • According to the GHG emission trading management system, and comply with GHG
• If corporates fail to take active measures to system, we may face financial burdens emissions allocation through energy efficiency
reduce GHG, they will face economic loss as such as penalties if we fail to meet the strategy and reducing efforts.
well as damage to reputation. requirements regarding GHG emissions • We
‌ are constantly developing products that can
• The
‌ operating period of resort facilities • Reduction
‌ in the number of users replace winter sports, including Water World.
is reduced due to climate change. In and sales due to the decrease in the
Increased need of particular, the skiing period is decreasing operating period of ski resorts
environmental risks every year.
management
• Facing business crisis due to gambling • Preventive measures are required • We have enhanced activities to eradicate
addicts’ lack of will to rehab. against illegal activities by casino users illegalities through enlarging the reporting
• ‌Gambling addiction risks exist for can cause serious secondary damages center and strengthening the supervision team.
employees who work in the frontline of the • If any event or accident caused by We provide workers in casino industry a regular
gambling business and handle cash, chips, gambling addiction occurs within the gambling addiction prevention education.
and credits. place of the casino business, it will • In order to minimize any adverse effects
• Risks for accidents occurrence due to its negatively impact the purpose of our caused by the use of casino, we enhance
inherent attributes in the course of casino establishment effective support for a successful return to
business such as money laundering and society through enhancement of the gambling
casino accidents. addiction prevention program and promote
Increased treatment and rehab program for gambling
accountability of the addicts.
casino business
• Cyber security threats including • Thorough protection of customers’ • We establish an effective information
Ransomware and APT attacks continue to personal information becomes a protection management system and secured
increase. prerequisite of casino business. safety of personal information and business
• Increased need to utilize customer • Need for a solultion against cyber- system.
information for the purpose of target attack or hacking as corporates face • Operating our own drills, we enhanced a
marketing and a need for new technology inside information leak accidents in response system against personal information
such as cloud computer and smart recent years. infringement accident and managerial and
working. technological security.
nhanced need
for Information
protection * Advanced Persistent Threats
55
Ethical Management
Ethical Management System and Operation
Ethical Management Strategy
Kangwon Land has established an ethical management vision of a ‘fair public corporation leading
compliance, ethics, and human rights management based on public trust’, and promote a mid- and
long-term ethical management roadmap with the goal of achieving the 1st grade in the Evaluation of
Integrity and the excellent grade of Anti-Corruption Policy Evaluation in 2025. In 2019, we established
an organizational culture based on integrity and promoted the results to gain public’s trust as a public
corporation that practices ethical management. Through these measures, we achieved the highest
grade of Anti-Corruption Policy Evaluation led by the Anti-Corruption & Civil Rights Commission.
Ethical Vision
Fair public corporation leading compliance, ethics, and human rights management based on public trust
Goal
2025: Achieve 1st grade in the Evaluation of Integrity and Excellent grade in Anti-Corruption Policy Evaluation
Promotion Communicate! Internalization of a Practice! Spread!

Strategies culture based on integrity Elimination of corruption risk Integrity activities
Promotion • Internal and external integrity •S ystem improvement for autonomous and • Connect organizational evaluation
Tasks communication system for executives preemptive corruption control and expand incentives to encourage
• Spreading
a culture of integrity as a leader •S trengthen the management system for participation at company-wide integrity
in executive positions corruption vulnerabilities activities
•A nti-corruption, integrity, and ‘Gapjil’ •A ctivate public interest reporting and • Promote public-private cooperative
(abuse of power) prevention education strengthen the system for protecting integrity activities
focused on management positions reporters • Strengthen integrity training and
•E nhancing the effectiveness of executing • Improve integrity policy through integrity cooperation with suppliers
integrity in the organization consulting • Promote and spread integrity policies to
external stakeholders
Promotion
organization
Decision-making Dedicated
Control Practice
body department
Human Rights and Ethics Audit Office, Compliance Legal Team High Clean Practice Promotion
Management Committee Officer, Associate Auditor Team Person for Compliance
Rules
Human rights·ethical management practice, code of ethical conduct for employees, compliance control rules
Monitoring Internal External

e-Audit System, Clean-Call measurement Citizen Integrity Controller, Integrity Consulting diagnosis
Feedback system Evaluation Incentives

Integrity Evaluation
Internal organization evaluation (5 points)
Anti-Corruption Policy Evaluation
Excellent People with Integrity
Management Evaluation
External cooperation Experts Citizen Integrity Controller, Open Innovation Committee
Stakeholders High1 customer partner, High Clean Leader in suppliers and affiliates
Public corporation’s Integrity Society Council, Gangwon Integrity Cluster, Gangwon Private-Public
Council
Integrity Society Council, Audit Advisory Committee
56
Ethics management committee and dedicated organization
We operate the Human Rights and Ethics Management Committee as the highest decision-
making body for human rights and ethical management strategy and anti-corruption integrity
policy. The committee consists of a total of nine members that include the chairperson
(Executive Director), five external members including academic and professional directors, and
three internal members including the Head of Audit Office, labor union representative, and
employee representative (a leader of the High Clean Promotion Team).
In 2016, a total of two Human Rights and Ethics Management Committee meeting were held to
establish and monitor an anti-corruption promotion plan, and the High Clean Promotion Team
was placed under the committee and a new Integrity Research Club was established to strengthen
the execution team. The Legal Team, which is a department dedicated to ethical management,
and the Integrity Audit Team for corruption prevention, voluntarily conducted the integrity
consulting of the Anti-Corruption & Civil Rights Commission, and designated and operated the
responsible management department for the integrity evaluation section to complete 22 anti-
corruption improvement tasks. In addition, we operated the Citizen Integrity Controller program
four times, with the introduction of associate auditor system, we practice ethical management by
selecting 27 associate auditors to inspect the risk factors of the department’s voluntary corruption.
Creating Clean Organization Culture
We create a clean corporate culture through various ethical training contents and organizational
systems. We are strengthening employees’ ethical awareness by conducting face-to-face, off-the-
job training on the integrity of employees, such as the code of ethics and the anti-corruption law. We
have held Ethics Day and Anti-Corruption Week and organized lectures by inviting experts and made
a pledge to eradicate ‘Gapjil’ (abuse of power) and unfair work orders. We produce and distribute
Kangwon Land’s guidelines for eradication of ‘Gapjil’ (abuse of power), integrity webtoons, integrity
logos, and integrity videos, and further motivate employees to build a voluntary integrity culture
through operating Integrity Mileage, incentive programs and the Integrity Research Club.
2019 Results of anti-corruption policy Building and expanding consensus on integrity
Integrity leadership and integrity education
We promote communication to build a consensus on the organizational culture of integrity for

employees. The CEO and the members of the Standing Audit Committee hold a special lecture
on integrity (four times) and an integrity roundtable meeting (four times) and show integrity
leadership such as the integrity letter of the standing directors. By establishing an integrity
Highest Rating channel on the company’s intranet, employees communicate with each other, Kangwon Land’s
specialized contents (Kangwon Land’s guidelines for eradication of ‘Gapjil’ (abuse of power),
integrity webtoons, integrity logos, and integrity videos, etc.) have been produced and distributed.
In addition, the company is conducting company-wide integrity activities such as the Integrity
Tree-planting in April, ‘integrity performance’ on the Ethics Day in June, and ‘mutual respect
campaign’ during the Anti-Corruption Week in December. In addition, we conducted a face-to-
Results of anti-corruption policy over face, off-the-job training customized for each target group by visiting work sites and achieved a
the past three years 95.8% completion rate compared to the education target.
1
Common Corruption-Vulnerable Department·High
Middle Manager Achievement
(all employees) Positions·High Clean Promotion Team
2 Level
3
Visiting integrity education Integrity competence
Achieved 95.8%
Level (112 times), Integrity special enhancement education Special customized integrity education (9 times)
(4.8%↑)
Level lecture (1 time) (25 times)
2017 2018 2019

57
Spreading of ‘Kangwon Land’s Integrity’
A transparent and fair culture of integrity can be achieved through the cooperation and consensus of
various stakeholders. To this end, our in-house lawyer visited the abandoned mine area, conducted
improper solicitation and graft education (five times) and operated three integrity booths at regional
festivals, a puppet show for children, a youth talk, and a concert with the theme of integrity to build
a consensus with local residents. We also conducted integrity education (four times), workshop (1
time), and roundtable meetings on integrity (three times) for subsidiaries and suppliers with integrity
education content. In addition, our subsidiaries held a pledge to eradicate ‘Gapjil’ (abuse of power) and
an integrity resolution meeting. For customers, we have actively promoted external public relations
activities to demonstrate Kangwon Land’s integrity, such as furnishing the CEO’s integrity message in
the resort rooms and holding integrity presentation contest and integrity golden bell contest.
Enhancing transparency and fairness
Elimination of corruption risk and intensifying improvements
In order to break away from previous negative perceptions concerning recruitment corruption
and the private use of business promotion expenses and to restore public trust, Kangwon
Land has eliminated corruption and established fair recruitment and new incentives and
a penality system. We conduct the entire recruitment process by external companies and
audit departments to secure fairness and disclose the use of business promotion expenses.
We selected HR, budget, and purchasing contracts as three major areas and intensified
improvements to establish a thorough anti-corruption system.
Efforts to prevent vulnerable areas
Kangwon Land eliminates corruption risks stemming from the operation of institution-specific
businesses such as region-restriction bidding, donation support, money laundering, and
various incidents and accidents in casino. In 2019, in order to prevent illegal money laundering
and suspicious transactions in the casino commensurate to financial instutions, the standard
amount in high-cash transactions was lowered from KRW 20 million to KRW 10 million, and
the amount was lowered from KRW 20 million to KRW 3 million on customer identification. For
region-restriction bidding, an on-site inspection system was introduced to check the address of
the business registration certificate in the abandoned mine areas. This measure was in response
to a report that the company had insufficient control on unfair activities in the region-restriction
bidding for the abandoned mine areas. In case of requests for improper donation from local
governments, we improved the system, such as establishing legal standards for donations in
accordance with the law and changing the method of settlement of donation beneficiaries. In
addition, we have expanded a transparent and prompt disclosure of information that meets
the needs of the public, and expanded the targets and items of information disclosure through
public survey, and introduced a business real-name-verification.
Strengthening Internal Control
Audit Strategy and Internal Control System
Kangwon Land established a mid- and long-term audit strategy system to create an internal
control system, and implements an internalization audit and preventive audits. With the vision
of achieving ‘audits that lead social responsibility and trusted by the public and employees’,
we established three strategies: social responsibility, faithful communication, and innovation
leadership. We are implementing tasks to be executed accordingly. Kangwon Land is constantly
striving to establish a discipline for public entities and a culture of integrity.
58
Mid- and long-term audit strategy system
Principles of Auditing Audit that contributes to restoring public trust and the creation of active
work environment with a warm heart
Meaning Creating active work

Restoring public trust Auditing with a warm heart
environment
Preventing recurrence of past Serving as a safety board to Supporting prevention and

cases in safety, integrity, and encourage active work within protection of victims and
recruitment compliance management
Audit Vision
Audit that leads social responsibility and is trusted by the public and employees
Audit Policy Social responsibility Faithful Communication Innovative leadership
Strategic Direction Fulfill responsibility to Institutionalize an Establish accepting Strengthen demand-

local community advanced audit paradigm audit culture centered expertise
Strategic Task Preventing violations of Implement Enhance audit Strengthen audit

social responsibility preventive audit acceptance expertise infrastructure
Strengthen Expand
Improve customized
anti-corruption and Advance system audit communication and
audit training
integrity activities share with departments
Expand social Strengthen internal Exchange and
Internalize internal and
contribution control in accumulate
external experts
system of audit vulnerable areas knowledge of audit
Securing independence and expertise of audit organization
2019 Audit Accomplishments Kangwon Land manages key audit-related risks through a strong operation of an internal
control system. We enhanced the early warning system by utilizing the e-audit system and
Carry out intensive conducted auditing in vulnerable areas for preemptive risk management. We strengthened the
Comprehensive
audit (21 times)
inspection on inherent internal surveillance system through activation of public whistleblower reporting, by enhancing
risks of institutions the accessibility of Red Whistle*, an anonymous reporting system, and conducting various
Identify the violations of promotional activities of reporting system.
Specific / social responsibility such
Financial audit as recruitment, safety,
(23 times) and ‘Gapjil’ (abuse of Preemptive risk management through audit system
power)
Kangwon Land manages key audit-related risks through the strong operation of the internal
Strengthen intensive control system. We enhanced the early warning system by utilizing the e-audit system and
Service audit
surveillance activities
(15 times)
during vulnerable seasons
conducted audit in vulnerable areas for preemptive risk management. We strengthened
the internal surveillance system through the activation of public whistleblower reporting by
Carry out intensive enhancing the accessibility of Red Whistle*, an anonymous reporting system, and conducting
inspection on
Consulting various promotional activities of the reporting system.
management
(performance)
improvement such as
audit
management inspection In addition, to improve the professionalism and quality of internal audits, we operate the Audit
for affiliates Advisory Committee comprised of external members and the Citizen Integrity Controller to
Provide opinions on work overcome the limitations of internal expertise. In addition, we conduct audit activities to support
Daily prior
efficiency through pre- active management through evaluating the operation of internal accounting management system,
audit (always)
consulting conducting consulting audits before executing major businesses, expanding active administrative
immunity system, identifying best practices, and managing business proposal system. Kangwon
Land will continue to pursue advanced audits through efficient audit activities based on rules and
regulations and will lead the way in establishing a sustainable ethical culture.
* ‌Red Whistle: Anti-corruption system that guarantees security and anonymity, which achieved domestic
compliance specialized company’s auditing
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Talent Management
Reinforcing the Competency of Employees
Ideal candidates
Kangwon Land is a large-scale tourist complex that covers almost all the high-tech tourism
industries such as casino, hotel, ski resort, golf course, theme park, condominium, and training
center, and our competent talents in each field are our biggest assets. Moreover, we need talent
that understands the company’s founding philosophy of regional development and is willing
to execute the vision. Only the talents with warm hearts who can feel the pride and reward
for developing the ‘national rest area’ with their own abilities and returning the company’s
achievements back to society can become the true owner of Kangwon Land.
HRD directions
Status of employee training We have established a talent development strategy called ‘Fostering professional personnel who leads the
complex resort industry and contributes to the development of abandoned mine areas and the company’
Category 2018 2019 Change in connection with the company’s vision and management strategy to strengthen organizational
competitiveness and strengthen employee competency. We aim for the systematic development of
Training
expenses per human resources based on educational directions such as advancement of job expertise, self-directed
employee 1,005 923 -8.2% learning support, and improvement of leadership capabilities through internal and external educational
(KRW
thousand)
environment, educational necessity, and feasibility analysis. In addition, we provide customized training
courses that reflect employee needs at each employee’s career stage, thus linking employees’ lives and
Number
of training
education from employment to retirement.
19 22 +15.8%
courses
(courses)
In this way, we are contributing to achieving the company’s vision by fostering talents who will lead the
Training company’s future, and in recognition of these efforts and achievements, we were honored with the
4.39 4.53 +3.4%
satisfaction award of ‘2019 Korea HRD Winner for Human Resources Development’ for three consecutive years.
* education satisfaction and the number of curriculums
increased with the efficient distribution of education Establishment of learning platform and self-directed education
budgets and improvement of education quality that
reflects business needs
We establish and operate an online learning system based on the working environment and
demands of employees. We provide online learning contents in a wide range of areas for
competency development such as job and leadership, and expand self-directed curriculum such as
learning foreign languages and reading to strengthen the competence of individuals and meet self-
development learning needs, contributing to solidifying self-directed learning culture.
Fair and transparent recruitment process FOCUS

ON
Kangwon Land classifies the necessary competencies according to the job’s attributes and
conducts a fair recruitment process. We also exclude candidates’ personal information such Enhance equality / transparency in
recruitment
as photo, gender, hometown, name of attended schools, and any certificates irrelevant to the
job position applied for when receiving job applications to achieve fair recruitment process. • Strengthen the role of audit department and
external experts
We conduct blind applications and interviews to prevent interviewers from learning personal
• Enhance competency-centered recruitment by
information of the candidates. selection process
• Introduce recruitment satisfaction / suitability
management system
Furthermore, we reserve 50% of the employment quota for local talent to promote social equity
in employment and contribute to revitalizing the economy of Gangwon province. Also, we do
Socially equitable recruitment
not discriminate against candidates on the ground of physical disabilities, non-college degree,
or gender. In particular, in 2019, we prepared the ‘guidelines for recruitment’ to further enhance •H
ire 36 employees through socially equitable
recruitment
fairness by clarifying recruitment procedures and methods, such as outsourcing recruitment - ‌Veterans / disabled persons / women with career
process and engaging the audit department throughout the recruitment process. We also break / single parent families
established disciplinary standards for recruitment corruption.
60
Fostering strategic talents in response to

competitiveness of complex resorts
With the operation of the casino’s private qualification system for the first time in the industry,
we are leading the domestic standardization of casino jobs, and fostering experts in each field
that meet government policies and management policies such as safety·integrity & ethics and
Industry 4.0. Since 2016, with the aim of identifying next generation leaders who will promote
future growth, we are promoting excellent human resources through next-generation leader
training, multi-faceted evaluation, and competency evaluation that combines fair candidate
selection and annual MBA management theory training.
Employee health promotion
Employee safety and health
We draw safety issues that reflect the nature of the industry and provide customized health
environments to protect the safety and health of employees. We operate four safety-related
communication channels, including the Safety Labor Council and the Safety Management
Committee, where management and workers work together. We also operate 34 suppliers
and the Safety and Health Symbiotic Cooperation Group. In addition, we provide a healthy
environment for disabled / pregnant workers, emotional labor workers, and partner workers. In
2019, the KOSHA 18001 was re-certified, and the number of occupational accidents decreased
by 33.3% (8 cases) from the previous year.
Work and family balance
We implement diverse employee welfare and benefits program to encourage employees

to boost their morale and support the compatibility between work and family. We expand
opportunities to participate in culture through an integrity puppet show for children, a dream
tree hope experience, and a cooking class with family, and designate every Wednesday and
Friday as ‘Family Loving Day’ and ‘Day of leaving work on time’ to urge employees to leave work
on time and refrain from having company dinner.
In addition, we have promoted a flexible working hours system through various communication
channels with employees, such as attendance meetings and visiting briefing sessions to improve
the practice of working long hours. In this way, the use of flexible working hour system (5,600
cases in 2018 → 7,011 cases in 2019 / 25.2%↑) and two-week flexible working hours system
(101 cases in 2018 → 524 cases in 2019 / 420%↑) increased significantly, and the work efficiency
has been improved by expanding flexible working hours system and implementing core-time
working system with the introduction of selective working hours system.
Maternity protection and parenting support
We operate a ‘From Birth To Growth’ program to become a happy workplace with work and life
balance and a good company to raise a family. We conduct a campaign that cares for pregnant
women and parent education by life-cycle every year, extend spouse maternity leave by 10 days, and
operate a corporate childcare center. The second childcare center will be completed in October 2020.
In addition, we have operated a system suitable for the parenting cycle of employees such as
pregnancy leave, parental leave, and the reduction of working hours for parenting. As a result,
we were awarded certifications and special awards from four government agencies, such as the
‘Leisure-friendly company’ certificate from the Ministry of Culture, Sports and Tourism (2019); the
approval to participate in the ‘Work and Life Balance’ campaign from the Ministry of Employment
and Labor (2019); the ‘Parent Education’ special awards from the Korea Labor Welfare Corporation
(2019); the ‘Family Friendly Certificate’ from the Ministry of Gender Equality (2019).
61
Healing program for emotional labor workers
For emotional labor workers, we carried out job stress tests for all employees and personal
psychological counseling, and managed high-risk employees. In addition, as a healing
program, we operate counseling rooms (three in-house rooms and five external rooms),
healing camps, special lectures on suicide prevention, family healing camps, and courses
for fostering peer counselors. Through these efforts, employee stress has been reduced
continuously, reaching 49.2 points in 2019 (52 points in 2018).
Customized employee health management
We proactively manage employees through customized management taking into account the nature
of the business and the type of work. We have a health promotion room, stretching and taping
therapy classes, visiting health services, smoking cessation and obesity management programs.
Creating a culture of care for vulnerable workers
We create a workplace where employees with disabilities can thrive and want to keep working.
Through training to improve the awareness of the disabled for all employees, we have created
a culture of care for the disabled and improved the working environment by designing rooms
for disabled people, attaching braille to the handrails, expanding parking spaces for disabled
people, and designing a new social contribution center for disabled persons. We operate various
systems·programs, and establish infrastructure, such as maternity leave, gestational diabetes
screening, pre-mother psychological counseling, designated seats for pregnant women on
commuting buses, and construction of the second daycare center.
Communicating and cooperating culture of labor-management
Operating various labor-management communication channels
Labor and management is establishing and operating diverse communication systems to build a
consensus. The labor-management representative shares the management environment through
‘On-demand’ meetings, discusses current issues, and lead communication to improve working
conditions for employees. In addition, labor and management have identified tasks and improved
unreasonable practices (ex. workplace bullying), agreed to a flexible working hour system through
benchmarking, workshops, and meetings to arrange a safe, healthy workplace. Moreover, we are
building a cooperative and inclusive relationship that spreads a culture of mutual respect through
the ‘Labor-Management Joint Declaration (Sep 2019) to make a happy workplace without bullying.
62
A corporate culture of active communication
We have strengthened and operated the field-oriented communication programs to create

a workplace of mutual respect. In particular, we encouraged CEO and middle managers to
improve its organizational culture by raising awareness of the importance of their roles through
communication workshops, and we have created a company culture without workplace bullying
by conducting a ‘Mutual Respect’ campaign through communication leader camps. We have
actively supported sales department’s task distribution activities to solve the difficulties in the
organization in the field, and created a customized communication culture by providing an
accurate management environment and welfare system through the communication screen. In
addition, we operate separate job stress tests, psychological counseling, and healing camps for
emotional labor workers to ensure that employees work in a safe and healthy workplace.
Status of operating major labor-management communication channels
Channels Description Performances
“Cooking Talk” a communication cooking Labor-Management Quarterly regular labor-management

Total 4 times (once per quarter)
Committee consultation committee
class at the HR Development Center
participated in by field personnel Labor-Management Consultation on pending issues among the
Committee for Pending Issues respective working-level people representing Always
at Working Levels the labor and management
‌Human Resource Affairs Screening consultations on human resource
Total 2 times (once per half-year)
Committee affairs
Sharing women’s care policy regarding female
Women’s Committee 12 times (once per month)
employees
Labor-management benchmarking (4
Labor-Management Harmony Building trust through harmony of labor and
times), workshop (5
Hanmadang Festival management
times) etc. 1)
‌Consultation on Human
Resolving employees’ HR-related Matters 6 cases
Resource Affairs
1) ‌- Labor-management meetings (6 times) and Union events (2 times)

- Labor Union Band “Young” (2,000 members joined)
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Human rights management
Declaring the Charter of Human Rights Management
Kangwon Land respects the human rights of all our stakeholders from a management
perspective, as well as that of our employees, and recommends and implements the same level
of human rights management to third parties, such as our suppliers. We declare the Charter
of Human Rights Management and establish a corporate culture of human rights to fulfill the
responsibility of protecting and respecting human rights of stakeholders.
Kangwon Land’s Charter of Human Rights Management is a responsibility for respecting human
rights and includes 10 items: △Compliance with human rights guidelines △Prohibition of
discrimination based on gender〮race〮religion〮disability〮age〮education〮region of origin △Guarantee
of freedom of association〮collective bargaining △Compliance with labor principles △Promotion of
industrial safety △Support for human rights management of suppliers △Respect for customer and
personal information △Human rights protection and respect in local communities △Environmental
protection △Minimizing adverse effects of gambling addiction. Kangwon Land’s employees comply
with the regulations and laws in the spirit of mutual respect and practice respect for human rights.
In addition, we comply with and support various international standards, norms and guidelines
related to human rights. We officially support and comply with the standards and laws of
international organizations related to labor and human rights, such as ‘Universal Declaration of
Human Rights’, ‘UN Guiding Principles on Business and Human Rights (Ruggie Framework)’, and
‘The International Labor Organization Agreement’.
Improving the system to practice human rights management
In order to address various employee grievances, Kangwon Land is strengthening the

human rights management infrastructure by classifying grievances according to the nature
of each grievance to improve the management system. The protection for victims has been
strengthened by revising the ‘Guidelines for sexual harassment 〮 violence prevention’ and the
effectiveness of handling grievances by type has been improved by revising the ‘Guidelines
by the Grievance Committee’ and establishing standards for handling workplace bullying. In
addition, we established a new council to manage and clarify job grievances.
We revised the Code of Ethics for employees to eradicate bullying and workplace harassment
and applied the principle of zero tolerance for serious behavior, operating the ‘Gapjil (abuse
of power)’ report center and in-house psychological counseling center. In order to protect
and relileve reporters 〮 victims, we strengthen confidentiality and ban reprisal, request
confidentiality pledges of the person concerned and a secondary damage prevention pledge,
and investigate and monitor the secondary damages.
Guidelines for preventing ‘Gapjil’ Measuring the achievements of human rights management
(abuse of power) and workplace bullying
Kangwon Land conducted a human rights impact assessment to prevent the human rights risk
defined in the human rights management policy and to eliminate the risks. An external agency
(Sangmyung University Industry-Academic Cooperation Foundation) evaluated the compliance
of objective human rights assessment indicators based on the Guide to Human Rights Impact
Assessment of the National Human Rights Commission on the institutional operation and casino
business of Kangwon Land. As a result of the human rights impact assessment, we received a
comprehensive excellent A grade, and we plan to further develop an intrinsic human rights diagnostic
index and conduct human rights impact assessments for our resort business to enhance the
operational effectiveness of the system in the future. In this way, we will identify human rights risks
and continuously promote improvement activities to protect human rights throughout the business.
64
Win-Win Partnership
Bridging the gap between suppliers
Converting working status of 15 suppliers to regular workers
Kangwon Land aims for an inclusive society where employees and suppliers live equally without
discrimination. In line with the Moon Jae-in government’s policy of Zero Irregular Workers, Kangwon
Land agreed to convert the working status of suppliers to regular workers of affiliates, and
established an affiliate, High1 Partners, which recruits 434 employees from suppliers in 14 fields.
* High1 Partners: An affiliate of Kangwon Land Kangwon Land, which has been negotiating through a labor, management, and expert negotiating
established for the stabilization of employment body to convert working status of suppliers into regular workers, invested KRW 800 million to
and treatment of service workers, maintenance establish High1 Partners*, an affiliate specialized in facility maintenance and vehicle service, and
and management of business facilities, and
plan to hire over 400 workers in 2020. About 1,000 private contract workers in the outside / laundry
vehicle service in accordance with the guidelines
and cleaning / security areas agreed to the regular employment through a social enterprise model.
for converting non-regular workers in public
institutions (July 2017) Kangwon Land will continue to provide quality jobs through subsidiaries and social enterprises,
thereby contributing to the revitalization of the abandoned mine area’s economy.
Establishment and procedures for subsidiaries in the facility
Establishment Labor-management Feasibility Government

Approval
proposal association review association
Consultation with 434 employees from 12

Deliberation and suppliers such as Gangwon
Ministry of Economy
Proposals for Agreement on resolution of the ING, etc. were converted
and Finance and Investment
conversion to regular conversion method Investment
Ministry of Trade, approved by BOD into affiliate’s employees
workers (July 2019 / Oct 2019) Committee
Industry and Energy
(Nov 2019)
(Nov 2019)
Converting supplier’s workers to regular workers
Condo
Outside Facility
cleaning
/ laundry / vehicle
/ security
Safety and health sharing with
1company, 162people 121company, 434people 21company, 395people

suppliers
Musculoskeletal disease Social enterprise Affiliates Social enterprise

prevention, taping therapy
Visiting
classes, cardiovascular
healthcare
disease, diabetes,
hypertension check
Improving welfare programs for suppliers’ employees
Open use of supplier’s Kangwon Land is realizing a corporate culture of equal opportunity by eliminating discriminatory
Gym employees and their factors such as reducing the sense of alienation of workers from suppliers, timely application of
families wage increases, and improving the working environment. In addition, we are applying welfare
Mental health benefits to employees of suppliers in the same way as our regular employees in terms of discount
Psychological
counseling
management with rates for High1 resort, legal counseling for employees, and comprehensive health check-up.
psychological counseling
room
support
We realize safety and health sharing so that employees of suppliers are treated equally without
Instant emergency discrimination. The health care facilities such as visiting health care, gym, psychological counseling
Medical room treatment available for 24 room, and medical room are available in the same way as regular employees. We also improve the
hours
environment of our rest area for supplier’s employees and provide work clothes and work shoes.
65
Strengthening the competitiveness of suppliers
Creating a shared growth platform with SMEs
We have provided support to enhance SME competitiveness to create a technology ecosystem

for the casino industry and SMEs, as well as to stimulate start-ups and innovative growth in
abandoned mine areas. To this end, we have built a shared growth platform with SMEs for
manufacturing slot machines in the casino business. In parts development, we have developed
excellent slot machine parts by engaging SMEs in the production of monitors for slot machines,
through technical cooperation with our development team. For some parts, such as ticket
printers, a prototype will be produced in 2020 after domestic development with SMEs.
Implementing performance sharing system with service evaluation
In order to enhance customer satisfaction through improving our suppliers’ customer service,
Kangwon Land has promoted a Sharing System with Service Evaluation for 25 service
suppliers, including cleaning, security, and facilities. Also, we conduct a survey on the customer
satisfaction of suppliers through external, expert groups and provide incentives or penalties to
suppliers based on the survey results.
In 2019, in addition to customer satisfaction, we added the criteria for strengthening the
competitiveness of suppliers to expand incentive payment targets to all service providers (33
companies), and provide differential payment up to a limit of KRW 500,000 as a measure to
enhance win-win cooperation, such as improving the treatment of workers from suppliers. We
plan to actively utilize the SLA and service evaluation sharing system to improve the service
quality of suppliers and manage the ESG risks.
SLA Evaluation Indicators
Transparency of payment management, strengthening job competency education,

Environmental minimize occurrence of industrial accidents, evaluation of deductive factors
Indicator
Common (preventing corruption and creating a transparent corporate culture, rational labor
management, occurrence of incidents)
Submission of business implementation plan / Cleanliness / Minimize customer

Cleaning complaints / Compliance with lost article management regulations / Work
cooperation level
Analysis of work data / Implementation level of instruction / Early countermeasure

Process
Indicator
Security work / Kindness, Appearance, Attire, Cleanliness / Improvement of safety hazard
factors / Work-post operation status
Satisfaction
score for win-win Substitute plan for personnel vacancy / Strengthening industrial safety management
4.07
cooperation Facility / Maintenance of emergency operation plan / Improvement of facility management /
Strengthening response to work process / Suspension of service work
scores
Result
Customer satisfaction level
Indicator
2019 Partner
Communication Channel
Strengthening on-site communication with suppliers
Working group meeting with 46 times
suppliers In order to facilitate effective communication with suppliers, Kangwon Land holds working group
Win-win cooperation workshop 3 times meetings and workshops and operates daily field support channels. As a win-win partner, we have
established and implemented a communication process to increase work efficiency with suppliers
Representative meeting 7 times and listen to and resolve difficulties of suppliers’ workers. In 2019, we held win-win cooperation
workshops (3 times) and working group meeting with suppliers (53 meetings), and reached an
On-site work support 8 times
agreement on converting the employment status of non-regular workers to regular workers.
66
Win-Win Partnership system
Recognizing the value of cooperation with our partners and how it can strengthen our
Strengthening the
competitiveness of partners competitiveness, Kangwon Land engages in various programs to help them improve their
performance. In order to choose partners that can create and share our values, we are building
• ‌Enhancing management a sustainable supply chain by monitoring not only their service quality but also the level of
competency sustainability management. We are also implementing various ways to enhance our win-win
• ‌Developing employees’
practices such as organizing consultative bodies so that our partners can focus their resources
job competency
on fair trade, safety, and ethical management.
• Improving
‌ service quality
Strengthening the Selection of partners

foundation for trust
• ‌Establishing operation
standards
Selection and Evaluation Process
• Improving service quality
• Raising awareness and reputation Through a transparent and fair process, we select and evaluate partners so we can align our
business strategies with theirs and build a strong foundation for cooperation. By establishing
internal standards and a supply chain portal, we promote fair and transparent practice. When
Developing operation process dealing with partners, we use standard contract forms that balance the interests of both parties
and continue to review and improve our policies to create a sustainable supply chain ecosystem.
• ‌Defining authorities
and responsibilities
• ‌Advancing operation process
Supplier Evaluation System
• Integrating the management system
In order to ensure fair and objective supplier evaluation, we use SLAs as an advanced service
evaluation system by standardizing and quantifying the content of evaluation while operating a
unique and exclusive service performance-sharing program to improve their service quality and
customer satisfaction.
Classification Description
• Common (20%), Process (60%), Outcome (20%)
Indicator
• Detailed indicators developed by partners and managing team
• Conduct quantitative evaluation (80% in total)
Method • Evaluate performance against target -> Class 2 (85 points)
• Minimize qualitative decision-making of managers
• ‌Penalty
- Deduct 0.1% of the annual contract amount for partners with 85 or less
Compensation • ‌Incentive
- ‌Provide incentives for partners that improved their CSI
- Recognize top 3 partners with the highest score and improvement respectively
Status of partners and Businesses
Kangwon Land defines companies established by local residents or retired employees from
abandoned mines that supply goods and services as local partners. Recognizing them as
our partners, we are committed to boosting local economy and helping them gain economic
independence.
Our local partners consist of those who supply human resources, food ingredients and goods. In
2019, we purchased a total of KRW 29,498 from them. Those with a high value of purchase and
that cannot be replaced are classified as critical tier partners. We also operate a local procurement
system to provide opportunities for small businesses to supply their goods and services.
67
Supplier Risk Management
Risk Management Principles and Procedures
As part of supply chain risk management, we conduct multifaceted analyses and focus our
Percentage
Type of Number of of total resources on managing business transparency, job training, occupational disaster, anti-corruption
supplier partners procurement and transparent corporate culture, and rational labor practice. On an annual basis, we assess their
spent (%) credit rating, quality, price, delivery and cooperation to analyze the risks and reflect the results
Total in our management strategy. We also established a supplier code of conduct and ensure its
1st-tier 573 100% compliance in the standard contract form. The code covers the areas of ethics, social standards,
partners human rights, environment, safety and health, and is available to view on the supplier portal.
Critical tier
34 40.9%
partners
Risk Identification and Analysis
Number of
Kangwon Land identifies risks in consideration of global trends and sustainability issues of the
Number of casino and resort industries as well as environmental and social factors in Jeongseon, Taebaek,
partners
Type of partners
supplier
assessed in
classified as Yeongwol and Samcheok. To meet the demands of our stakeholders, we perform due diligence
the past 3
high-risk and consultation on partners and reflect the level of their compliance in our SHE assessment.
years
The level of risks is determined based on the overall assessment and the areas of risk are
Tier 1
97 34 identified while requiring their implementation.
partners
Monitoring partners
Percentage of current Percentage of current

Percentage partners with high partners that established
Type of supplier assessed sustainability risk that a plan for improvement
annually established a plan for and made progress in ESG
improvement within 12 months
Critical partners
100%
(1st-tier and 2nd-tier)
partners with high
18% 100% 100%
sustainability risk.
Win-Win Supply Chain Programs
echnical support & Financial Support
Kangwon Land organizes training on service and safety for the employees of its partners on
a semi-annual and ongoing basis. The service training focuses on enhancing competitiveness
and job performance as a service provider through image making and complaint handling
while creating a safe working environment and raising awareness of human rights. Kangwon
Land helps its partners manage their finance through various financial support programs. Their
financial management is not only a key to sustainable growth but also risk management in the
supply chain. Going forward, we will further expand our financial support programs and increase
the amount to promote mutual growth with our partners.
Training & Benchmarking Support
The competency of employees is an integral part of partners’ competitiveness. Kangwon Land

provides various training support programs and opportunities for small businesses. In order to
build a close partnership with partners, we conduct joint benchmarking on other companies
and exhibitions to improve our competitiveness. We also provide partners with equipment
necessary to perform their jobs and maximize the efficiency of work process. By aligning the
nature of work with each area of service, we offer vehicles and an employee cafeteria as well.
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Establishing a foundation for fair transaction
Improving Unfair Service, Practice, and Relevant Policies
Kangwon Land has built a foundation for fair competition by identifying unfair services,
practices, and systems, and taking corrective action. We promote a fair contract work across all
processes from bid preparation to bidding, contract signing, and bid deliberation.
In the process of bid preparation, we disclosed the order plan in the e-bidding system in
Number of bidding advance and released 551 bids in 2019, and expanded the pre-standard range of goods /
Zero
corruptions
services from an estimated price of KRW 100 million to KRW 50 million. In the bidding process,
we conducted 100% of the work, including application form registration, through an electronic
in 2019 bidding system. We abolished the lowest bidding system and guaranteed an appropriate
contract amount with limited price and qualified screening.
In particular, we have strengthened transparency by improving our method of selecting members,

including mandating 50% external members in the contract deliberation committee when signing
contracts. With these efforts, there was no corruption relating to bidding contracts in 2019.
Expanding financial stability support
We are enhancing financial stability by making timely payments to solve the financial shortages
of our suppliers. We have ledadvance payments through bid announcements and contracts,
and in 2019, increased the advance payment rate by 58% (41% in 2018) and the payment
amount to KRW 16.4 billion. In addition, we introduced the Safety-Keeper* to expand the scope
of application from construction work to firefighting, electricity, telecommunications, and S/W
services. In 2019, we paid a total of 27 cases (KRW 8.8 billion) through the Safety-Keeper.
We are improving the treatment of workers and stabilizing management to ensure that
service workers from suppliers receive wage increases in a timely manner. In the second half
of 2018, measures were taken so that wage increases are reflected within one month after
the announcement of labor costs. In the future, we will protect the rights and interests of the
socially disadvantaged and lead a fair-trade culture by improving the unfair subcontracting
culture, such as overdue wages and the use of money. At the same time, we will fulfill the
obligation to pay directly to 2nd and 3rd tier suppliers and make timely payments to eradicate
unfair ‘Gapjil’ (abuse of power) acts, such as unpaid or delayed payments.
* ‌Safety-Keeper: A timely payment system for suppliers and consigned companies managed by the Public
Procurement Service
Ensuring opportunities for the socially disadvantaged
We are realizing social value through consideration for the socially disadvantaged, including the
disabled, women, SMEs, and local businesses. In order to expand opportunities for business
participation, such as for the disabled and women’s companies, we increased the bonus points
for goods, services, and construction qualifications and expanded regional joint contracts in
construction and service contracts.
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Tax strategy
Kangwon Land is a comprehensive tourism / leisure center with the nation’s only casino permitted
to allow entry to domestic residents, and carries out its legal obligations to fulfill its purpose of
establishment. We operate a casino business with the aim of public interest and return a large
portion of our profits to society in various ways.
Contribution to Public Finances
Kangwon Land’s profit contributes to the economic revitalization of the abandoned mine
area and the promotion of the domestic tourism industry. We devote ourselves to the public
interest by fulfilling our taxpayer’s obligations faithfully for the nation and local governments in
Gangwon-do. In 2019, we paid a total KRW 655.8 billion of taxes and funds, including national
and local taxes and other funds. This is equivalent to 43% of total sales. Kangwon Land
continues to grow with Korea.
In addition to national taxes and local taxes, we contribute to various other funds. In order to
develop the abandoned mine area, we pay 25% of the annual pretax profit to the Abandoned
Mine Areas Development Fund. Also, to activate the national tourism industry, we pay 10% of
casino sales to the Tourism Promotion and Development Fund based on the Tourism Promotion
Act. To contribute to solving the gambling industry addiction problem not only in the casino but
also from a national aspect, we pay approximately 0.5% of casino sales as Gambling Prevention
and Recovery Charges in accordance with the ‘National Gambling Control Commission Act’.
Tax Reporting
Tax and Fund payments Kangwon Land is seeking to communicate with various stakeholders by publicly disclosing, through
(Unit: KRW 100 million) an audit report, its tax obligations and payments. If there is a difference between the expected tax
rate and the actual tax rate in the process of paying corporation tax, the details of the difference
6,389
5,951
6,558 are recorded in the audit report and we regularly disclose this information to the public to enhance
5,188 the transparency and accuracy of the tax payment. In addition, the assets and liabilities recorded in
Statements of Financial Position, as well as the revenues and expenses, are reasonable for each item
and fulfill the duty of a sincere taxpayer without taking any tax reduction measures.
Tax Risk Management

2016 2017 2018 2019 We anticipate the effects of the enactment and amendment of the accounting standard every
year and make efforts to help stakeholders and shareholders make decisions. Through our
internal accounting management system, we are improving the reliability and accuracy of the
tax reconciliation process and accounting process. By setting controlling items in the system, we
manage unreviewed or undeclared amounts in advance. In addition, we manage tax reporting
data to saved and maintained for a certain period of time.
Kangwon Land works diligently on regular tax investigations and actively responds to the unfair
tax imposing cases. For example, unfair taxation, such as denial of individual consumption
tax deduction and denial of claim for reassessment of the discount rate for in-house facilities,
was resolved through tax appeal process. In addition, we actively respond in consultation with
related organizations to prevent an excessive increase in tax burden.
70
Information Security
Information security strategy and execution
Kangwon Land has established an information security strategy in conjunction with our
corporate vision in order to implement the national information security policy for cyber safety.
To strengthen our capacity to implement information security, the Information Security Team
received an organizational upgrade into the Information Security Center (office), and the CISO
(Chief Information Security Officer) was given executive-level authority. In 2019, the number of
professionals employed increased (6 people → 8 people), and the information security budget
compared to the informatization budget was expanded to 25% (51.7%).
Awarded Minister of Industry for Information Security Audit
Information Security Promotion Strategy
Vision Establish Information Security System by Protecting Personal Information

& Secure Operating System
Mid- and long-term 2018 ~ 2019 2020 ~ 2021 2022 ~ 2023

roadmap
• Introduction
‌ of information • Acquisition
‌ of ISMS • Acquisition
‌ of ISO27001
security management system Certification certification
• Status
‌ of information security • Status
‌ of information security •‌Information Security
management (65 points) management (72 points) Management Office (81 points)
• Personal
‌ information • Personal
‌ information • Personal
‌ information
management level (80 points) management level (90 points) management level (90 points)
Promotion strategy Advancing of information Strengthening cyber Advancing of information

security management system threat response security sanagement system
Promotion tasks • ‌Investigating all vulnerabilities • Improving

‌ internal management
engaged by company-wide level evaluation system
• Strengthening
‌ access control
working-level department • Strengthening
‌ the authority
for information system
• ‌Expanding security inspection management of personal
• Establishing
‌ an analysis system
activities information
* ‌ISMS: Information Security Management of information system
• ‌Enhancing company-wide • Deleting·Encryption
‌ of
System • Enhancing
‌ simulation training
awareness of information company-wide personal
**‌ISO 27001: The international standard for
security information
privacy information management
71
Enhancing information security management system
Information security training We received a prize from the Minister of Trade, Industry and Energy in the information security
completion rates audit with the inspection of all vulnerabilities and the actions engaged by company-wide
(Unit: %) departments and teams. In addition, we have strengthened the standards for managing
99.7 violations of information security enforcement regulations, and defined account and password
management and information device import and export as a violation of major regulations.
97.5 99.5
53 Strengthening cyber threat response
We established an environment responding to cyber incident by separating and expanding

the network. In addition to the existing work network and internet network, we separated
the surveillance network and the comprehensive situation center network to establish server
2018 2019 2018 2019
access control, vaccine, PMS, and “My PC Keeper” for each network in the company. In addition,
Information Personal
we received a prize from the Minister of the Interior and Safety by enhancing our emergency
security information
protection response through mock response training to cyber threats such as in-house network intrusion
training, malicious e-mail response training, and joint-council training. With these efforts, we
have maintained zero case of information security damage over the past 3 years.
Information security audit by the
Ministry of Trade, Industry and
Energy Internalization of personal information protection activities
2018 43.3 points In 2019, one personal data leakage incident exposed personal information of eight people.
We have prevented risk factors and strengthened our management system at each stage of
2019 82.7 points collection, use, provision, storage, and destruction of personal information. With these efforts to
strengthen simulation training to personal information infringement incidents three times a year,
we received 80.4 points in the personal information management level diagnosis by the Ministry
of the Interior and Safety, up 18% from the previous year. In addition, we are improving the
level of security awareness of employees by frequently providing general training on personal
information protection, including online training for all employees, external professional training
for personal information protection managers and dedicated personnel.
72
Materiality Assessment
Kangwon Land conducts a materiality assessment to identify issues of concern for sustainability
management that stakeholders consider important. In order to continue identifying issues that
may arise in the course of business, we are listening to various stakeholders and identifying core
issues through global standards analysis, media research, benchmarking of leading companies,
and surveys while drafting this report. The identified sustainability management issues are
disclosed in detail in the report according to social concern and business impact.
Resort and new

1 business growth
Social concern
Enhancing responsible
Safety and health 6 Community development 3
casino business
2
Energy / Climate Change 5
4
Strengthening customer
satisfaction activities
Key issue
Business impact
Key issue Category Reflected to the report Major stakeholders GRI Index
Resort and new business Government, shareholders / 201-1 Economic value creation
Innovation for the Future Securing new growth engines
growth investors, local residents and distribution
Safety and health Safe Resort Realization Safe Resort Realization 416-1 Customer safety and health
Customers, employees,
Eco-friendly Resort Climate change response suppliers, community 302-1, 2, 4 Energy
Energy / GHG
Operation activities 305-1, 2 Emission
Strengthening customer Friendly and differentiated Customers, employees,

N/A
satisfaction activities Customer Value services suppliers
Responsible casino Realization Securing a healthy game Customers, employees,

416-2 Customer safety and health
business culture communities
Revitalizing the local economy

Creating a foundation for local
Community development Social Value Creation Community, suppliers 413-1 Community
rehabilitation
Improving local residents’ lives
73
Appendices
74 Economic performances
82 Environmental performances
84 Social performances
88 GRI Index
90 Third-Party Assurance Statement
92 GHG Assurance Statement
144 Memberships in Associations

/ Awards
74
Economic Performance
Summary of Consolidated Statements of Financial Position
(Unit: KRW million)
Category 2017 2018 2019

Assets
Ⅰ. Current assets 2,164,296 1,759,033 1,878,191
Cash and cash equivalents 105,573 48,854 60,665
Trade and other receivables 5,503 13,904 34,289
Inventories 1,300 1,149 3,637
Other current financial assets 2,030,208 1,681,023 1,766,751
Other current assets 21,713 14,103 12,850
Ⅱ. Non-current assets 2,021,361 2,472,208 2,559,928
Investments in equity-accounted investees 53,028 52,915 53,150
Property, plant and equipment 1,297,981 1,314,038 1,370,568
Intangible assets 1,252 866 3,902
Net defined benefit assets 25,596 1,945
Deferred tax assets 162,227 163,889 143,270
Other non-current financial assets 472,367 931,138 986,038
Other non-current assets 8,912 7,417 3,001
Total assets 4,185,657 4,231,241 4,438,119
Liabilities
Ⅰ. Current liabilities 681,338 636,028 651,343
Trade and other payables 34,455 53,578 484,381
Accrued expenses 421,494 380,333
Income tax payable 80,383 61,242 87,733
Other current financial liabilities 6,105 16
Other current liabilities 77,192 79,017 79,229
Provisions 61,709 61,843
Ⅱ. Non-current liabilities 3,084 8,436 69,018
Trade and other payables 156 66,900
Borrowings 1,400
Net defined benefit liabilities 537 426 1,906
Other non-current financial liabilities 885 7,443
Other non-current liabilities 105 567 119
Non-current provisions 92
Total liabilities 684,422 644,464 720,360
Equity
Ⅰ. ‌Equity attributable to owners of the Company 3,501,105 3,586,735 3,717,705
Share capital 106,970 106,970 106,970
Share premium 127,784 127,784 127,784
Retained earnings 3,438,848 3,524,520 3,655,507
Other capital -172,498 -172,540 -172,557
Ⅱ. Non-controlling interests 131 42 54
Total equity 3,501,236 3,586,777 3,717,759
Total equity and liabilities 4,185,657 4,231,241 4,438,119
75
Summary of Consolidated Statements of Comprehensive Income

(Unit: KRW million)
Category 2017 2018 2019

Ⅰ. Revenue 1,547,772 1,438,059 1,520,080
Ⅱ. Cost of sales -730,835 -729,593 -736,659
Ⅲ. Gross profit 816,936 708,466 783,421
Ⅳ. General and administrative expenses -127,791 -152,925 -137,078
Ⅴ. ‌Contribution to abandoned mine areas

-158,248 -124,841 -145,190
development fund
Ⅵ. Operating profit 530,897 430,700 501,153
VII. Non-operating income 16,867 4,796 8,148
VIII. Non-operating expenses -34,201 -64,115 -102,092
IX. Finance income 53,619 49,984 83,433
X. Finance costs -914 -10,565 -1,961
XI. ‌Profit and loss of investments in equity-

-74 -112 243
accounted investees
XII. Profit before income tax 566,194 410,688 488,925
Income tax -128,654 -113,451 -154,271
XIV. Profit for the year 437,541 297,237 334,654
Profit attributable to owners of the Company 437,615 297,326 334,658
Profit attributable to non-controlling interests -74 -89 -4
XV. Other comprehensive income 11,680 -10,942 -8,502
Items that will not be reclassified as profit or

11,680 -10,942 -8,502
loss
Changes in investments in equity-accounted

1 -1 -8
investees
Remeasurement of net defined benefit

15,404 -14,601 -8,494
liabilities
Related income tax -3,725 3,660
Items that are or may be reclassified

subsequently to profit or loss
Profit (Loss) on valuation of available-for-sale

financial assets
Related income tax
XVI. Total comprehensive income for the year 449,220 286,295 326,156
Total comprehensive income attributable to

449,294 286,384 326,156
owners of the Company
Total comprehensive income attributable to

-74 -89 -4
non-controlling interests
XVII. Earnings per share
Basic and diluted earnings per share

76
Consolidated Statements of Changes in Equity
(Unit: KRW million)
Non-
Share Share Retained Other Total
Category controlling
capital premium earnings capital equity
interests
Balance at January 1, 2017 106,970 127,784 3,190,265 -172,498 205 3,252,727
Total comprehensive income for the period
Profit (Loss) for the year 437,615 -74 437,541
Other comprehensive income for the year
Remeasurement of net defined benefit liabilities 11,679 11,679
Share of other comprehensive loss of equity
1 1
accounted investees
Loss on valuation of available-for-sale financial
assets
Total comprehensive income for the year 449,294 -74 449,220
Transactions with owners of the Company,
recognized directly in equity
Variation of equity ownership of subsidiary
Annual dividends -200,712 -200,712
Balance at December 31, 2017 106,970 127,784 3,438,848 -172,498 131 3,501,236
Profit (Loss) for the year 297,326 -89 297,237
Remeasurement of net defined benefit liabilities -10,941 -10,941
Share of other comprehensive loss of equity-
-1 -1
accounted investees
assets
Variation of equity ownership of subsidiary -42 -42
Balance at December 31, 2018 106,970 127,784 3,524,520 -172,540 42 3,586,777
Adjustment according to changes in accounting
-12,704 -12,704
policy
Profit (loss) for the year 334,658 -4 334,654
Share of other comprehensive loss of equity
-8 -8
accounted investees
Share of other comprehensive loss of retained
earnings accounted investees
-17 17
Balance as of December 31, 2019 106,970 127,784 3,655,507 -172,557 54 3,717,759
77
Consolidated Statements of Cash Flows

(Unit: KRW million)
Category 2017 2018 2019
I. Cash flows from operating activities 463,050 363,919 407,869
1. Net cash provided from operating activities 563,985 453,353 461,571
(1) Profit for the year 437,541 297,237 334,654
(2) Adjustment 197,443 195,280 167,051
(3) Changes in assets and liabilities -70,999 -39,164 -40,134
2. Interest received 27,370 41,247 46,588
Interest paid -55 -47 -278
3. Income taxes paid -128,250 -130,634 -100,012
II. Cash flows from investing activities -250,223 -202,048 -211,309
1. Net cash provided in investing activities 1,439,519 2,312,057 1,860,469
Decrease in other current financial assets 1,430,506 2,310,796 1,858,315
Decrease in other non-current financial assets 8,568 1,091 -
Decrease in other non-current assets 17 2,030
Decrease in investments in equity-accounted
101
investees
Proceeds from disposal of property, plant and
445 153 23
equipment
Proceeds from disposal of intangible assets -
2. Net cash used in investing activities -1,689,742 -2,514,105 -2,071,778
Increase in other current financial assets -1,196,312 -686,850 -338,350
Increase in other non-current financial assets -407,942 -1,723,888 -1,650,122
Acquisition of property, plant and equipment -85,488 -103,251 -79,562
Acquisition of intangible assets -115 -1,359
Increase of other current assets -10
Increase of other non-current assets -2,375
III. Cash flows from financing activities -200,252 -202,354 -184,754
1. Net cash provided in financing activities 460
Long-term borrowings 460 -
2. Net cash used in financing activities -200,712 -202,354 -184,754
Annual dividends -200,712 -200,712 -182,508
Decrease in short-term borrowings -200
Decrease in long-term borrowings -1,400
Paid-in capital increase for subsidiaries -42
Decrease in capital lease liabilities -2,246
IV. ‌Net increase (decrease) in cash and cash
12,575 -40,483 11,806
equivalents
V. ‌Cash and cash equivalents at beginning of year 92,998 105,573 48,854
Ⅵ. ‌Effect of exchange rate fluctuations on cash held -1 -2 5
Cash and cash equivalents account replacement
-16,234 -
due to new standard application
VII. Cash
‌ and cash equivalents at end of year 105,573 48,854 60,665
78
Statements of Financial Position
(Unit: KRW million)
Category 2017 2018 2019

Assets
Ⅰ. Current assets 2,155,755 1,749,493 1,868,366
Cash and cash equivalents 103,274 47,368 59,133
Trade and other receivables 5,452 13,806 34,068
Inventories 1,300 1,144 3,631
Other current financial assets 2,024,171 1,673,272 1,758,749
Other current assets 21,557 13,903 12,785
Ⅱ. Non-current assets 2,026,773 2,480,138 2,568,096
Investments in equity-accounted investees 104,847 79,765 80,224
Property, plant, and equipment 1,253,404 1,299,058 1,353,732
Intangible assets 18 443 3,446
Net defined benefit assets 25,596 1,945 -
Deferred tax assets 162,227 163,889 143,270
Other non-current financial assets 471,814 927,620 984,423
Other non-current assets 8,867 7,417 3,001
Total assets 4,182,527 4,229,631 4,436,462
Liabilities
Ⅰ. Current liabilities 680,591 635,168 650,508
Trade and other payables 33,947 53,083 483,725
Accrued expenses 421,443 380,271 -
Income tax payable 80,383 61,242 87,733
Other current financial liabilities 6,105 23 -
Other current liabilities 77,005 78,706 79,050
Provisions 61,709 61,843 -
Ⅱ. Non-current liabilities 1,147 8,010 67,521
Trade and other payables 156 -
Remeasurement of net defined benefit liabilities 1,749
Other non-current financial liabilities 899 7,443 65,583
Other non-current liabilities 91 567 98
Non-current provisions 92
Total liabilities 681,738 643,178 718,029
Equity
Share capital 106,970 106,970 106,970
Share premium 127,784 127,784 127,784
Retained earnings 3,438,538 3,524,201 3,656,181
Other capital -172,503 -172,503 -172,503
Total equity 3,500,790 3,586,453 3,718,433
Total equity and liabilities 4,182,527 4,229,631 4,436,462
79
Statements of Comprehensive Income

(Unit: KRW million)
Category 2017 2018 2019
Ⅰ. Revenue 1,546,203 1,436,042 1,517,612
Ⅱ. Cost of sales -728,433 -727,186 -734,363
Ⅲ. Gross profit 817,770 708,857 783,249
Ⅳ. General and administrative expenses -123,698 -149,164 -135,334
Ⅴ. Contribution to abandoned mine areas

-158,248 -124,841 -145,190
development fund
Ⅵ. Operating profit 535,825 434,852 502,725
VII. Non-operating income 15,361 3,545 8,017
VIII. Non-operating expenses -38,040 -66,874 -102,017
IX. Finance income 53,479 49,793 83,243
X. Finance costs -874 -10,545 -1,819
XI. ‌Profit (Loss) related to affiliates, joint ventures,

-269
and subsidiaries
XI. Profit before income tax 565,750 410,771 489,881
XII. Income tax -128,654 -113,451 154,271
XIII. Profit for the year 437,096 297,320 335,610
XV. Other comprehensive income 11,667 -10,946 -8,460
Items that will not be reclassified to profit or

11,667 -10,946 -8,460
loss
Remeasurement of net defined benefit

15,392 -14,606 -8,460
liabilities
Related income tax -3,725 3,660
XVI. Total comprehensive income for the year 448,763 286,374 327,150
XVII. Earnings per share
Basic and diluted earnings per share

80
Statements of Changes in Equity
(Unit: KRW million)
Category Share capital Share premium Retained earnings Other capital Total equity
Balance as of January 1, 2017 106,970 127,784 3,190,486 -172,503 3,252,738
Profit (Loss) for the year 437,096 437,096
Remeasurement of net defined benefit liabilities 11,667 11,667
assets
Total comprehensive income for the year 448,763 448,763
Balance at December 31, 2017 106,970 127,784 3,438,538 -172,503 3,500,790
Balance at January 1, 2018 106,970 127,784 3,438,538 -172,503 3,500,790
assets
Adjustment according to changes in accounting
-12,704 -12,704
policy
assets
81
Business sales status
Category Unit 2016 2017 2018 2019

Casino 1,488,376 1,389,188 1,273,764 1,342,272
Hotel 104,199 104,492 100,429 106,914
Condo 25,728 26,960 28,119 29,739
Golf 5,412 5,399 6,030 6,346
Ski 17,924 20,165 19,064 18,640
KRW million
Water World - - 8,636 13,212
Machine manufacturing 188 - - 490
Games 1,770 28 13 -
Cableway & railway - 1,540 2,004 2,468
Total sales 1,643,597 1,547,772 1,438,059 1,520,081
Attraction of resort and local visitors
Category Unit 2016 2017 2018 2019

Resort visitors 10,000 people 339 359 384 428
Foreign visitors people 70,598 71,709 67,979 78,823
Local visitors people 4,448 18,982 24,035
Distribution of economic value
Category Unit 2016 2017 2018 2019

Taxes and dues,
Government 6,385 5,951 5,188 6,558
corporate tax
Investors Interest expense 2 2 2 19
Shareholders Dividends 2,007 2,007 1,825 1,825
Customers Sales 16,444 15,477 14,380 15,200
Contract and
Suppliers KRW 100 million 2,473 2,664 3,084 2,949
purchase
Pay 2,303 2,397 2,381 2,502
Retirement pay 220 236 187 242
Employees
Fringe benefits 173 174 189 166
Total 2,696 2,807 2,757 2,910
Local community Donation 227 129 327 295
82
Environmental Performances
Status of waste generation and disposal
Category Unit 2016 2017 2018 2019

Waste synthetic
General waste 4,270 4,775 5,002 4,044
resin, etc. ton
Designated waste Waste acid 116 154 136 144
Total ton 4,387 4,929 5,138 4,188
Waste recycling
Category Unit 2016 2017 2018 2019

Domestic waste 2,347.5 2,734.5 2,708.5 2,451.4
Waste segregation ton 543.2 536.22 574.2 571.2
Waste segregation rate 23.1% 19.6% 21.2% 23.3%
Water use
Category Unit 2016 2017 2018 2019

Fresh surface water 955,208 608,630 1,175,352 821,291
Tap water 1,536,947 1,574,414 1,699,499 1,292,065
Recycled water ton 45,290 321,530 434,789 299,327
Groundwater 51,350 41,568 22,161 34,984
Mine purified water 607,880 694,731 577,840 511,629
Total ton 3,196,675 3,240,873 3,909,641 2,959,296
Chemical usage
Category Unit 2016 2017 2018 2019
Water treatment Liquid kg 337,080 290,060 509,000 630,660

chemicals Solid kg 42,050 29,400 58,700 32,320
Liquid ℓ 82,485 90,050 77,310 118,790
Laundry detergent
Solid kg 6,006 490 0 425
Actual usage kg 747 504 694 895
Pesticide usage
Pesticide efficacy kg 221 184 225 283
83
Energy use
Category Unit 2016 2017 2018 2019

Electricity use 954.65 975.99 1,010.64 1,084.22
LPG (propane) 377.80 71.49 33.70 8.73
LPG Vehicle LPG 0.13 0.17 0.04 -
Diesel 12.66 14.65 15.40 14.25
TJ
Gasoline 3.38 3.33 2.86 2.75
Kerosene 1.31 1.36 1.18 1.17
LNG 32.84 353.96 462.68 563.26
Renewable energy* 21.71 20.94 17.14 22.12
Total TJ 1404.5 1,441.9 1543.6 1,696.5
* ‌Photovoltaic (PV), Solar power, Geothermal heat, Waste heat recovery, Wood pellet etc.
GHG emissions
Category Unit 2016 2017 2018 2019

Scope1 (direct) 25,084 23,757 27,030 30,664
Scope2 (indirect) tCO2e 46,365 47,401 49,084 52,658
Total 71,449 71,158 76,114 83,321
Expense and investment in environmental protection
Category Unit 2016 2017 2018 2019

Total environmental investment 3,963 4,736 4,353 8,261
Investment in environmental facilities KRW million 3,600 4,344 4,100 6,546
Green procurement 363 392 253 1,715
Wastewater discharge
(Unit: ton)
Category Items 2016 2017 2018 2019

BOD 0.17 0.13 0.07 0.09
Industrial SS 0.12 0.08 0.03 0.02
Laundry factory
wastewater TN 0.46 0.31 0.24 0.17
TP 0.1 0.08 0.06 0.05
BOD 0.81 0.29 0.25 0.36
SS 1.56 0.2 0.17 0.29
Hotel & Casino
TN 3.41 3.31 4.08 4.51
TP 0.37 0.3 0.38 0.28
BOD 0.13 0.12 0.08 0.1
Domestic SS 0.28 0.23 0.15 0.24
High1 Ski
wastewater TN 0.93 0.83 0.49 0.78
TP 0.1 0.06 0.04 0.08
BOD 0.04 0.03 0.03 0.03
SS 0.08 0.06 0.04 0.05
High1 Hotel
TN 0.2 0.28 0.31 0.13
TP 0.03 0.03 0.02 0.02
84
Social Performances
Employee status
(Unit: people)
Category Items 2016 2017 2018 2019
Total number of
3,640 3,703 3,692 3,739
employees
Regular employees 3,512 3,622 3,391 3,666
Non-fixed-term employees 13 16 15 18
Employment type
Non-regular employees (direct
115 65 286 55
employment)
Male 2,495 2,528 2,501 2,516

Gender
Female 1,145 1,175 1,191 1,223
Male 2,401 2,459 2,279 2,463

Regular employment
Female 1,111 1,163 1,112 1,203
Male 85 60 213 42
Contract employment
Female 30 5 73 13
Female 27 64 85 56
Disabled employees - 1 4 15
Local talent (non-capital region) 70 70 239 102

New hiring of regular
High school graduates 13 10 46 30
employees
Vocational high school graduates - 4 21 3
Engineering graduates 19 13 21 18
Total 129 162 416 224
Internship 48 93 265 127
Contractors 9 18 12 -
Hiring of non-regular
Part-timers 4 4 5 -
employees
Undefined contractors 13 13 18 7
Total 74 128 300 134
Number of female employees (%) 1,145(31.5%) 1,175(31.7%) 1,191(32.3%) 1,223(32.7%)
Number of female employees above

Out of total incumbents 4(0.11%) 3(0.08%) 6(0.16%) 5(0.13%)
senior managers (%)
Number of disabled employees (%) 70(2.0%) 74(2.1%) 76(2.3%) 89(2.5%)
Abandoned mine areas 1,798 1,842 1,701 1,851

Personnel status by
Other than abandoned mine areas 526 524 466 495
regions
Other regions 1,188 1,256 1,224 1,320
Male 0.95 0.8 0.91 0.88

Turnover rate
Female 1.21 1.74 1.11 1.51
Redundancy 4 4 1 -
85
Parental leave
Category Unit 2016 2017 2018 2019 Note

Number of people using parental leave People 351 395 427 434
Number of people returning to work after
People 160 218 234 233
parental leave
Number of people who worked for 12
People 622 716 810 902
months or more after parental leave
Retirement pension

Operating expenses KRW million 143,634 179,886 186,273 212,393
Defined Benefit (DB) People 3,570 3,691 3,654 3,486
Defined Contribution (DC) People 10 26 52 95
Education and training

Educational cost per person KRW thousand 910 1,022 1,005 923
Number of training courses unit - - 19 22 * ‌Aggregated from 2018 due to
changes in data calculation
Satisfaction with education points - - 4.21 4.58 standards
Duration of time time / person 130 167 147 87
Ethics 〮 Ethics / Anti-Corruption

Employees participating in ethics
% 91.9 92.0 93.4 95.8
education
Corruption and violation of the code of * ‌National Integrity System (NIS)
case 10 2 7 18
conduct standards
Discrimination and corrective actions

National Integrity System (NIS)
Number of discriminations case 0 0 0 2
standards
86
Social Performance
Labor union

Labor union membership rate % 75% 76% 79% 86% As of the end of Dec every year
* ‌Major agreements, including collective bargaining agreements with the labor union, are applied to all employees (100%)
Health & safety

Industrial accident rate % 0.40 0.30 0.26 0.19
Customer’s personal information

Number of cases related to security and * ‌Eight customer information leaked
case 0 0 0 1*
loss of customer’s personal information due to employee’s misconduct
Customer satisfaction

KCSI (Korean Customer Satisfaction Index) points 86.1 74.8 75.3 83.5
Responsible game culture

Players using self-control system of game
people 230 607 900 1,566
amount
Number of gamblers linked to counseling people 48 58 66 208
Number of beneficiaries of healing /
people 57 64 70 64
rehabilitation
Violation of social and economic laws

*‌ ‌Penalty fine such as the violation
Amount of penalties KRW 1 million 4 0 13 6* of OSHAct, failure to complete
safety and health education
87
Supply chain purchase

Total purchase amount KRW 100 million 2,473 2,664 3,084 2,949
SME product purchase KRW 100 million 1,982 2,019 2,213 2,506
Abandoned mine area purchase KRW 100 million 1,034 1,262 1,256 1,505
Public procurement from social enterprises KRW 100 million 345 355 352 432
Local food materials KRW 100 million 164 163 161 177
Partner Satisfaction

Satisfaction with win-win cooperation with
points - 3.69 3.49 4.07 conducted from 2017
suppliers
Local community
Local community Unit 2016 2017 2018 2019 Note

Charitable donation KRW 100 million 32 6 6 15
Community
KRW 100 million 182 110 308 270
Execution amount of investment
social contributions Commercial
KRW 100 million 13 13 13 10
initiative
Total KRW 100 million 227 129 327 295
Satisfaction with
Satisfaction with
beneficiaries of points 86.7 91.1 89.2 88.8
social contribution
welfare business
Unit: people, unit (2019) /
Private sector job creation people / unit 1,920 people 2,010 people 2,670 people 3,418 units calculated as the number of
jobs from 2019
Per person Number
hours 24 9 9 8
Employee of hours volunteered
volunteering Total hours
hours 88,458 32,192 33,969 28,354
volunteered
Contributions and Expenditure

(Dec. 2019, Unit: KRW million )
Organization 2016 2017 2018 2019 Note

Korea Casino Association 300 300 300 300
Samchok CCI 192 211 211 211
Ski Resort Business Association of Korea 32 38 40 41
Gangwondo Tourism Association 30 20 20 20
Total case 32 33 23 22
* ‌Kangwon Land does not spend political contributions, but does spend money on industry associations such as tourism, casino, golf, and management related to the resort industry.
88
GRI Index
General Standards
Category Index Indicators Page and Note

102-1 Name of the organization 8
102-2 Activities and primary brands, products and services 8~9
102-3 Location of the headquarters 8
102-4 Enterprise zone 8
102-5 Nature of ownership and legal form 51~52
102-6 Market area 8~9
Organizational
102-7 Scale of organization 8~9
Profile
102-8 Employees and workers information 81
102-9 Organization’s supply chain 50, 63~64
102-10 Significant changes in organization and supply chain 63
102-11 Precautionary approach or principle 53~54
102-12 External initiatives 18, 22, 26, 38, 42, 55, 59, 62, 63
102-13 Memberships of associations 91
102-14 CEO statement 4~5
Strategy
102-15 Major impacts, crisis and opportunities 54
https://kangwonland.high1.com/kangwonland/
102-16 Values, principles, standards and codes of conduct
Ethics and Integrity contents.do?key=2085
102-17 Ethical guides and grievance procedures 56
Governance 102-18 Governance 51~52
102-40 List of stakeholder groups engaged by the organization 50
102-41 Collective agreement 50, 61, 83
Stakeholder
102-42 Understanding and selecting stakeholders 50, 68
Engagement
102-43 Stakeholder engagement approach 50
102-44 Key topics and concerns raised through stakeholder participation 50, 68
List of affiliates and joint ventures included in the organization’s
102-45 12, 52, 63
consolidated financial statement
102-46 Definition of report contents and topic boundaries 68
102-47 List of material topics 68
102-48 Re-description of information 2
102-49 Changes in reporting 2
Report Profile 102-50 Reporting period 2

102-51 Latest reporting date 2
102-52 Reporting cycle 2
102-53 Contact about the report 93
102-54 Reporting approach according to the GRI Standards 2
102-55 GRI Index 88~90
102-56 External assurance 86~87
89
Topic Specific Standards

Economic value generated MA 18~19
and distributed 201-1 Economic value generated and distributed 8, 78
Economic
MA 26~27
standards
Indirect economic effects 203-1 Infrastructure investment for public interest and service provisions 27~29
203-2 Significant indirect economic ripple effects and impacts 27~29
MA 42, 43
302-1 Energy consumption within the organization 80
GRI: 302 energy
302-2 Energy consumption outside the organization 80
Environmental
302-4 Reduction of energy consumption 43
standards
MA 42, 43
GRI: 305 emissions 305-1 Direct GHG emissions (scope 1) 80, 85
305-2 Indirect GHG emissions (scope 2) 80, 85
MA 26~27
GRI 413: Local community
413-1 Local community engagement, impact assessment and development program operation 27~29
Social MA 38~39
standards GRI 416: ‌Customer health and 416-1 Evaluation of safety and health impact on products and services 40~41
safety No major
416-2 Violations of regulations on safety and health impact on products and services
violations
General issue disclosure

GRI 201: Economic performance 201-3 Covering the organization’s defined benefit pension system debt 82
GRI 204: Purchasing practices 204-1 Percentage of local purchases in major business areas 84
Economic
205-1 Risk assessment for workplace corruption 57
standards
GRI 205: Anti-corruption 205-2 Communication and training on anti-corruption policies and procedures 56, 82
205-3 Corruptions identified and actions taken 82
303-1 Total water withdrawal by source 44, 79
GRI 303: Water
303-3 Water recycled and reused 44, 79
Operating site owned, rented, and managed in reservation areas, areas with high biodiversity value
304-1 45
or surrounding areas
GRI 304: Biodiversity
The threatened species of the IUCN Red list inhabiting business-affected area and Korea’s
Environmental 304-4 45
endangered species
standards
306-1 Wastewater discharge by the quality of water and destination 44, 60
306-2 Waste by type and disposal method 44, 79
GRI 306: Wastewater and waste 306-3 Significant spills No significant spills
No hazardous
306-4 Hazardous waste transport
waste transport
401-1 New hiring and turnover 81
GRI 401: Employment
401-3 Parental leave 81
Percentage of total workforce represented in formal joint
403-1 40, 83
management–worker health and safety committees
GRI 403: ‌Occupational Health
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total
and Safety 403-2 40, 83
number of work-related fatalities, byregion and by gender
403-4 Safety and health matters subject to formal agreements with labor union 41
Social 404-1 Average hours of training per year per employee 59~60, 82
standards GRI 404: Education and training
404-2 Programs for strengthening and converting employee’s competency 59~60
GRI 406: Non-discrimination 406-1 Discrimination incidents and corrective actions 62, 82
GRI 412: ‌Human rights impact
412-1 Workplace for human rights impact assessment or human rights review 62
assessment
GRI 418: ‌Customer privacy Number of substantiated complaints regarding breaches of customer privacy and losses of customer
418-1 67, 83
protection data
GRI 419: ‌Compliance with social
419-1 Violation of social and economic laws and regulations 84
and economic laws
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Third Party Assurance Statement
To the Readers of KANGWON LAND SUSTAINABILITY REPORT 2020:
Foreword
Korea Management Registrar Inc. (hereinafter “KMR”) has been requested by of KANGWON LAND to verify the contents of its SUSTAINABILITY
REPORT 2020 (Hereby referred to as “the Report”). KANGWON LAND is responsible for the collection and presentation of information included in
the Report. KMR’s responsibility is to carry out assurance engagement on specific data and information in the assurance scope stipulated below.
Scope and standard
KANGWON LAND describes its efforts and achievements of the corporate social responsibility activities in the Report. KMR performed a type2,
moderate level of assurance using AA1000AS (2008) and SRV1000 from KMR Global Sustainability Committee as assurance standards. KMR’s
assurance team(hereinafter “the team”) evaluated the adherence to Principles of Inclusivity, Materiality and Responsiveness, and the reliability of
the selected GRI Standards indices as below, where professional judgment of the team was exercised as materiality criteria.
The team checked whether the Report has been prepared in accordance with the ‘Core Option’ of GRI Standards which covers the followings.
GRI Standards Reporting Principles

Universal Standards
Topic Specific Standards
- Management approach of Topic Specific Standards

- Economic Performance : 201-1, 201-3
- Indirect Economic Impacts : 203-1, 203-2
- Purchasing Practices : 204-1
- Anti-Corruption : 205-1, 205-2, 205-3
- Energy: 302-1, 302-2, 302-4
- Water: 303-1, 303-3
- Biodiversity: 304-1, 304-4
- Emissions: 305-1, 305-2
- Effluents and Waste: 306-1, 306-2, 306-3, 306-4
- Employment: 401-1, 401-3
- Occupational Health and Safety: 403-1, 403-2, 403-4
- Education and Training: 404-1, 404-2
- Non-Discrimination: 406-1
- Human Rights Impact Assessment: 412-1
- Local Communities: 413-1
- Customer Health and Safety: 416-1, 416-2
- Customer Privacy: 418-1
- Socioeconomic Compliance : 419-1
This Report excludes data and information of joint corporate, contractor etc. which is outside of the organization, i.e. KANGWON LAND, among
report boundaries.
Our approach
In order to verify the contents of the Report within an agreed scope of assurance in accordance with the assurance standard, the team has
carried out an assurance engagement as follows:
Reviewed overall report

91
Reviewed materiality test process and methodology

Reviewed sustainability management strategies and targets
Reviewed stakeholder engagement activities
Interviewed people in charge of preparing the Report
Our conclusion
Based on the results we have obtained from material reviews and interviews, we had several discussions with KANGWON LAND on the revision
of the Report. We reviewed the Report’s final version in order to confirm that our recommendations for improvement and our revisions have
been reflected. When reviewing the results of the assurance, the assurance team could not find any inappropriate contents in the Report to
the compliance with the principles stipulated below. Nothing has come to our attention that causes us to believe that the data included in the
verification scope are not presented appropriately.
‌Inclusivity
‌Inclusivity is the participation of stakeholders in developing and achieving an accountable and strategic response to sustainability.
- ‌KANGWON LAND is developing and maintaining stakeholder communication channels in various forms and levels in order to make a
commitment to be responsible for the stakeholders. The assurance team could not find any critical stakeholder KANGWON LAND left out
during this procedure.
‌Materiality
‌Materiality is determining the relevance and significance of an issue to an organization and its stakeholders. A material issue is an issue that
will influence the decisions, actions, and performance of an organization or its stakeholders.
- ‌KANGWON LAND is determining the materiality of issues found out through stakeholder communication channels through its own
materiality evaluation process, and the assurance team could not find any critical issues left out in this process.
‌Responsiveness
‌Responsiveness is an organization’s response to stakeholder issues that affect its sustainability performance and is realized through
decisions, actions, and performance, as well as communication with stakeholders.
- ‌The assurance team could not find any evidence that KANGWON LAND’s counter measures to critical stakeholder issues were
inappropriately recorded in the Report.
We could not find any evidence the Report was not prepared in accordance with the ‘Core Option’ of GRI standards.
Recommendation for improvement
We hope the Report is actively used as a communication tool with stakeholders and we recommend the following for continuous improvements.
‌
Kangwon Land identified key topics through a systematic materiality assessment and provided a detailed report, especially on
employment, emissions, safety, co-growth, local communities, satisfying the expectations of stakeholders. The organization is advised
to publish annual reports and provide timely information, and expand the three-year report on quantitative performance for improved
comparability.
Our independence
With the exception of providing third party assurance services, KMR is not involved in any other KANGWON LAND’s business operations that are
aimed at making profit in order to avoid any conflicts of interest and to maintain independence.
June, 12th, 2020
CEO
000-129
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GHG Assurance Statement
As an agent for the emissions trading system, Korean Standards Association, designated by the Ministry of Environment, conducted
an assessment of the information submitted by the subject organization.
Reasonable Level of Assurance
The target management system assurance undergoes the materiality test standard of ±5.0% to guarantee the results of assurance.
Assurance Target
The assurance was conducted on the specifications and internal data and documents provided by the subject organization in a fair
and transparent manner.
Assurance Standards
The assurance process was performed in accordance with the Emission Trading System and GHG Energy Target Management
Guidelines (provided by the Ministry of Environment). For matters not specified by the guidelines, KS Q ISO 14064-1 and -3 were used.
Materiality Assessment
The materiality assessment is defined as less than 5%, as all the corrective measures established by the assurance team have been
completed by the subject organization.
Limitation of Assurance
The assurance team verified the specifications and related documents presented by the organization by sampling or complete survey.
GHG emissions data has many inherent limitations, and reasonable judgment may have been made due to differences in interpretation
of the guidelines. Therefore, there may be potential errors, omissions, and false statements that the team failed to find.
Overall Assurance Statement
The subject organization took corrective measures against the key issues found by the assurance team through document review
and on-site assessment. (Refer to 3. Findings in the Assurance Report)
As no significant discrepancies were found in the specifications presented by the organization and they meet the requirements, the
assurance team rated it “satisfactory”.
March 16, 2020
Assurance Agency Korean Standards Association
President Sang-jin Lee

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Kangwon Land’s Charter

of Human Rights Management
Kangwon Land, which is a public corporation trusted by people, is committed to “promoting the
economy of the abandoned mine areas, contributing to regional development and improving the
quality of life of local communities, and enhancing people’s happiness through leading leisure culture”,
and we support universal human rights including the Universal Declaration of Human Rights.
To this end, Kangwon Land proclaims the ‘Charter of Human Rights Management’ as follows, as a
principle of action and value judgment that all stakeholders, including employees, must follow.
We shall comply with international and domestic standards for human rights, prevent human rights
violations in advance, and aim for active relief.
We shall not discriminate against employees in terms of employment, promotion, education, etc.
due to gender, race, religion, disability, age, education, or region of origin.
We shall guarantee freedom of association and collective bargaining.
We shall prohibit
‌ forced and child labor and comply with all labor principles recommended by the
International Labor Organization and ratified by the State in relation to health, safety and
working hours.
We shall ‌promote occupational safety by creating safe and healthy working conditions for workers.
We shall treat our suppliers fairly and support them in practicing human rights management.
We shall ‌respect the safety and privacy of our customers and protect personal information collected
by the company.
We shall ‌be careful not to infringe on the human rights of local people in the community.
We shall ‌comply with domestic and international environmental laws and regulations, and protect
the environment and prevent pollution.
We shall do our best to minimize the social side effects of gambling addiction.
We are committed to doing our best to establish and promote human rights management.
Employees of Kangwon Land

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Kangwon Land Code of

Conduct for Suppliers Enacted: June 2017
Revised: June 2019
Foreword
Kangwon Land Co., Ltd. (“Kangwon Land”) is a company established to revitalize the economy in abandoned mine
areas. Kangwon Land seeks to develop itself as a high-quality, eco-friendly healing resort that fulfills its social roles
and responsibilities as a public corporation by laying the foundation for self-sustaining growth in local economies by
achieving its vision of becoming a national resting place that is trusted by the people and grows together with the
abandoned mine areas.
To this end, Kangwon Land’s Code of Conduct for Suppliers covers basic ethical, social and human rights,
environmental, and safety standards that all suppliers dealing with Kangwon Land shall comply with, and we believe
that these standards will bring benefits for Kangwon Land and all its suppliers as well as global competitiveness.
Kangwon Land’s Code of Conduct for Suppliers is a standard that suppliers and their employees, agents, and
subcontractors (hereinafter “supplier”) shall comply with, and suppliers shall comply with legal requirements, this Code
of Conduct, and Kangwon Land’s requirements specified in the transaction contracts. In addition, suppliers shall require
and manage their own stakeholders and suppliers to comply with this Code of Conduct and legal requirements, and
recommend establishing a purchasing policy and supply chain management system to practice sustainable management.
Kangwon Land supports and respects the Universal Declaration of Human Rights as well as human rights protection
and labor standards of international organizations such as the OECD Guidelines, the Ten Principles of the UN
Global Compact, the UN Convention on the Rights of the Child, and ILO standards. Through this, we establish and
recommend this Code of Conduct for Suppliers in order to establish a clean and transparent corporate culture and
to lay the foundation for a happy future for everyone.
Detailed Requirements
Ⅰ. ‌Ethical standards
A. ‌Suppliers shall do their best to eradicate corruption by ethically and legally performing their duties and
establishing a fair trade order.
B. ‌Suppliers shall not engage in illegal or unfair practices such as bid fixing, illegal subcontracting, etc., and shall
not offer bribes (money, other valuables or entertainment, etc.) or make improper solicitations to employees
of Kangwon Land for the benefit of themselves or others.
C. ‌Suppliers shall educate their employees to create a clean corporate culture that refuses offering and demand
of bribes. If they find corruption related to performance of a contract, they shall report it to the Public-Interest
Corruption Reporting Center on Kangwon Land’s website. (http://kangwonland.high1.com).
D. ‌Suppliers shall operate anonymous complaint filing, protect confidentiality of whistleblowers, prohibit
retaliation, inform the employees of the relevant procedures, and identity protection.
E. ‌Suppliers shall comply with the Personal Information Protection Act, and make reasonable efforts to respect
and protect intellectual property rights, customer information, and personal information.
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Ⅱ. ‌Social and human rights standards

A. ‌Suppliers shall actively cooperate for the development of the abandoned mine areas, the purpose for which
Kangwon Land was established, and shall not act in a way that is harmful to the community.
B. ‌Suppliers shall respect all their employees as human beings and prevent any acts that are in violation of
human rights. Also, suppliers shall not compel employees to work against their free will due to mental and
physical restraints, including fees for hiring and maintained employment or Indentured servitude.
C. ‌Suppliers shall ensure that regular and overtime work hours comply with labor laws except for emergencies or
special circumstances and that employees’ wages exceed the minimum level prescribed by labor laws.
D. ‌Suppliers shall comply with the legally regulated working age, and will not employ child workers. If a child
worker is found, immediate measures shall be taken.
E. ‌Suppliers shall not discriminate in employment for any reason, such as gender, race, nationality, ethnicity, or
religion, and shall guarantee freedom of association and right of collective bargaining under labor laws.
Ⅲ. Environmental
‌ standards
A. ‌Suppliers shall obtain all environmental authorizations, permits and registrations required by the government
and comply with environmental laws. Also, suppliers shall strive to prevent environmental pollution and
reduce resource use, thereby protecting the environment of their business sites and communities.
B. ‌In order to manage the safe handling, transport, storage, use, recycling, reuse, and disposal of chemicals that
can cause health and environmental hazards, suppliers shall identify such chemicals, and implement legally
required safety measures such as compliance with facility standards, education of handlers, and exchange of
related information.
C. ‌Suppliers shall be aware of their energy consumption and greenhouse gas emissions. Also, suppliers
shall conduct management activities that focus on the environment, such as striving to minimize energy
consumption and greenhouse gas emissions while increasing energy efficiency.
Ⅳ. ‌Safety and health standards

A. ‌Suppliers shall endeavor to build and maintain safe, healthy workplaces in accordance with laws and
regulations in order to ensure the safety and health of workers in all activities of the Company, including
product production, construction, and maintenance.
B. ‌Suppliers shall eradicate all risk elements for industrial safety and take preventive measures accordingly, and
provide workers with appropriate personal protective equipment for industrial hygiene to prevent workers’
exposure to risk factors.
C. ‌By identifying and evaluating potential emergencies and accidents, suppliers shall establish emergency
measures and response procedures to minimize damage and establish procedures and systems to manage
industrial accidents and occupational diseases.
D. ‌Suppliers shall regularly provide appropriate safety and health education / training to their employees.
Also, safety and health information shall be posted so that it can be easily seen within the facility and easily
accessible to employees.
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Report on Corporate Governance in 2019
Kangwon Land Co., Ltd.

97
[INDEX]
Ⅰ. OUTLINE ....................................................................................................................................................................................................... 3
Ⅱ. STATUS OF CORPORATE GOVERNANCE ...................................................................................................................................... 4
Policy of Corporate Governance ............................................................................................................................................................. 4
Shareholders ................................................................................................................................................................................................ 5
A. Right of Shareholders ................................................................................................................................................................. 5
B. Fair Treatment of Shareholders...............................................................................................................................................10
BOARD OF DIRECTORS .....................................................................................................................................................................12
A. Functions of the Board of Directors ......................................................................................................................................12
B. Organization of Board of Directors .......................................................................................................................................18
C. Responsibility of non-standing director (standing director) ............................................................................................26
D. Evaluation of non-standing director (standing director) Activities ................................................................................29
E. Operation of Board of Directors .............................................................................................................................................30
Audit Organization ...................................................................................................................................................................................37
A. Internal Audit Organization .....................................................................................................................................................37
B. External Auditor .........................................................................................................................................................................46

98
Ⅰ. OUTLINE
■ Corporate name: Kangwon Land Co., Ltd.

■ Person in charge of preparation: (Head) Fund Team Manager Lee Gwang-yeol (Deputy) Manager of Fund
Team Oh Ji-yeon
■ Date of preparation: December 31, 2019
■ Company Outline
Largest shareholder Mine Redemption Corp Equity ratio of largest shareholder 1) 36.27% 3)
Equity ratio of minority shareholder 2) 37.17% 3)
Business category Non-financial Main products Casino
Applicability for corporate group under the Not applicable Subject to apply the 「Act on the Management of Applicable
Fair Transaction Act Public Institutions」
Name of corporate group -
Summarized financial status (Unit: KRW 100 million)
2019 2018 2017
Consolidated sales revenue 15,201 14,381 15,478
Consolidated operating profit 5,012 4,307 5,309
Consolidated going concern profit 3,347 2,972 4,375
Consolidated current net income 3,347 2,972 4,375
Consolidated total amount of assets 44,381 42,312 41,857
Total amount of separate assets 44,365 42,296 41,825
1) As of the preparation for this report

2) Based on the end date of the recent business year / A minority shareholder means the shareholder that owns a
number of shares below 1% of the total number of outstanding common shares
3) Rounding off for the third digit of decimal point
99
Ⅱ. STATUS OF CORPORATE GOVERNANCE
Policy of Corporate Governance
A. Principle and Policy of Corporate Governance

The Company is a market-type public company with the mission ‘promote the economy in the abandoned mine area to
seek regional development and resident life improvement, and through leading the leisure culture contribute to the
promotion of national happiness’ and ‘be the shelter of Korea that grows with the abandoned mine area and earning
the trust of people’. Together with the accomplishment of mission and vision of the Company, it secures corporate
governance for transparency, soundness and stability to fulfill its social responsibility and protection of interests of
shareholders and interested parties.
The Company discloses the corporate governance-related work processing standard, procedure and result for
achieving transparent corporate governance. The Company displays all internal regulations of the Company, such as
the 「Articles of Incorporation」, 「Board of Directors Regulation」, 「Operation Regulation of the Officer
Nomination Committee」 and the status of the Board of Directors and Audit Committee activities on the company
homepage (https://kangwonland.high1.com), and the major decision-making matters. The result of the Board of
Directors and others are provided through the Public Management Information Disclosure System (Alio,
http://www.alio.go.kr) and electronic disclosure system (http://dart.fss.or.kr) in a way to help understanding of
interested parties.
The Company achieves stable corporate governance through balance and control of constituents. In order to enable the
Board of Directors to engage in practical controlling function on the top management with its independent decision
and decision making, the ratio of those non-standing directors (external directors and other non-executive directors)
for the Board of Directors or committees within the Board of Directors is organized for a majority or more, and the
Chairman and Commissioner are appointed from non-standing directors. In addition, through Board of Directors
organization that has various specializations and backgrounds, it secures the functions for reasonable decision making
and mutual control.
In the meantime, in order to minimize the impact following the interests of individual directors, the transactions
between a director and the Company are restricted following Article 398 of the 「Commercial Act」, and any
director with a special interest with the agenda in accordance with Article 10 of the 「Board of Directors Regulation」
of the Company is barred from participating in the resolution of the agenda in an effort to secure corporate governance
through various systems and devices.
B. Characteristics of Corporate Governance

1) The non-standing director-oriented organization of Board of Directors
Through the 「Act on the Management of Public Institutions」 and Articles of Incorporation, the ratio of the non-
standing directors in the Board of Directors is organized with 1/2 or more of the total constituents of the Board of
Directors, and the work of the Board of Directors is defined to be taken on by the senior non-standing director from
the non-standing directors and appointed by the Minister of Planning and Finance. From all 13 members of the Board
of Directors, there are 9 non-standing directors (8 external directors and 1 non-executive director). This is purported to
have outsiders equipped with diverse specialization and background to participate in the Board of Directors to enhance
the reasonableness in decisions of the Board of Directors while securing the independence to access the controlling
function for top management through having the independence. The committees within the Board of Directors of the
Audit Committee and others is comprised of the non-standing directors of 1/2 or more of entire constituents, and in
100
particular, the officers from the Officer Nomination Committee constituents are comprised of all non-standing
directors. (For detailed matters, refer to Ⅱ. STATUS OF CORPORATE GOVERNANCE - 3. BOARD OF
DIRECTORS - B. Organization of the Board of Directors)
2) Operation around Committees in the Board of Directors

Under the Board of Directors, there are Audit Committee and Officer Nomination Committee. The Audit Committee
carries out the duties of auditor following Article 412 of the Commercial Act and the Officer Nomination Committee
carries out the nomination and deliberation affairs of the officer candidate of the Company.
The Company establishes the regulations of each committee in addition to the authority and roles for each committee
defined under laws and regulations, and by establishing the scope through detailed authority of the Committee, it has
strengthened the specialization, independence and efficiency of the committee. (For detailed matters, refer to Ⅱ.
STATUS OF CORPORATE GOVERNANCE - 3. BOARD OF DIRECTORS - F. committees within the Board of
Directors)
3) Strengthening of specialization and diversity of Committee in the Board of Directors

The Audit Committee is organized with the non-standing directors of 2/3 or more of all members, and from the
constituents, the accounting or finance specialist shall be at least 1 person or more to be included. The Officer
Nomination Committee operates with the non-standing directors (external director) and members appointed by the
Board of Directors within the scope of 5 to 15 persons, and in particular, the members appointed by the Board of
Directors are appointed from the persons with rich academic knowledge and experience in various fields of law,
economy, media, academy and other pertinent industries. In addition, for securing diversity and balance of the Board
of Directors, it expands the candidate nomination requesting institutions. In particular, through the Officer Nomination
Committee, it strengthens recruitment and nomination of woman candidates by managing the HR pool for female
officers. In addition, the directors with rich experience and knowledge in various fields, such as legal field, economic
field, academic field etc. are appointed to secure the balance in the Board of Directors.
Shareholders
A. Right of Shareholders
(Core principle 1) Right of Shareholders

A shareholder shall be provided with sufficient information in a timely manner as required to exercise the
rights and capable to exercise its rights under appropriate procedure.
1) Providing meeting of shareholders related information

(Detailed principle 1-①①) The Company shall provide the shareholders with sufficient information on date and
time, place and agenda of the meeting of shareholders before the meeting of shareholders with sufficient time.
□ The Company has the principle to enable the shareholders to participate in the meeting of shareholders as often as
possible to present the opinions with the provision of sufficient information on the meeting of shareholders before the
meeting and it duly implements the principle based on the pertinent regulations under the 「Commercial Act」,
「Marketable Securities Market Disclosure Regulation」, 「Articles of Incorporation」 and others.
□ Pursuant to the Marketable Securities Market Disclosure Regulation (Article 7 (1)) immediately upon the resolution
to convene the meeting of shareholders through the Board of Directors, the electronic disclosure shall be implemented
(date and time, place and agenda), and pursuant to the general matters related to the meeting of shareholders (detailed
matters for each agenda, detailed record for each officer candidate, etc) of the Commercial Act (Article 542-4), the
matters related to the meeting of shareholders to notify at least 2 weeks prior to the date of holding the meeting of
shareholders (electronic disclosure and homepage of the Company) to provide shareholders with sufficient time to
determine the agenda of the meeting of shareholders. It plans to provide pertinent information with more time. The
101
contents related to the most recent meeting of shareholders of the Company in this relation are shown as follows.
<Contents of meeting of shareholders that was held in 2018>

Classification The 20th general meeting of The 20th special meeting of The 21st special meeting of
shareholders shareholders shareholders
Resolution day of convening Mar. 6, 2018 Aug. 8, 2018 Nov. 12, 2018
Notice date of convening Mar. 14, 2018 Sep. 13, 2018 Dec. 12, 2018
Date of holding meeting of shareholders Mar 29, 2018 Sep. 28, 2018 Dec. 27, 2018
Period between the notice day and meeting of shareholders 15 days prior to meeting of 15 days prior to meeting of 15 days prior to meeting of
day shareholders shareholders shareholders
Place/region of hosting Head office/ Jeongseon-gun, Head office/ Jeongseon-gun, Head office/ Jeongseon-gun,
Gangwon-do Gangwon-do Gangwon-do
Method of notice to shareholders for meeting of Forwarding of convening notice, e-disclosure, information on homepage
shareholders related matters
Convening notice for foreign shareholders The convening notice for any foreign shareholder to understand is not implemented
Detaile Attendance of members of the Board of Directors Attending 3 persons from 10 Attending 1 person from 9 Attending 4 persons from 10 persons
d persons persons
matters Attendance of audit or Audit Members Attending 1 person from 3 Attending 1 person from 3 Attending 1 person from 3 persons
persons persons
Main contents of speeches of shareholders - - -
<Contents of hosting the meeting of shareholders from 2019 up to the date of submitting the notification document
2019>
Classification The 21st general meeting of The 22nd special meeting of The 22nd general meeting of
Convening resolution date Mar. 8, 2019 Nov. 25, 2019 Mar. 9, 2020
Convening notification date Mar. 13, 2019 Dec. 26, 2019 Mar. 13, 2020
Date for meeting of shareholders Mar. 28, 2019 Jan. 10, 2020 Mar. 30, 2020
Period between the notification date and meeting of 15 days prior to meeting of 15 days prior to meeting of 15 days prior to meeting of
shareholders date shareholders shareholders shareholders
Place of venue Head office/ Jeongseon-gun, Head office/ Jeongseon-gun, Head office/ Jeongseon-gun,
Gangwon-do Gangwon-do Gangwon-do
Method of notice to shareholders for matters related to Forwarding of convening notice, e-disclosure, information on homepage
meeting of shareholders
Convening notice for foreign shareholders The convening notice for any foreign shareholder to understand is not implemented
Detaile Attendance of members of the Board of Directors Attending 3 person from 13 Attending 4 persons from 14 Attending 4 persons from 14 persons
d persons persons
matters Attendance of audit or Audit Members Attending 1 person from 3 Attending 1 person from 3 Attending 1 person from 3 persons
persons persons
Main contents of speeches of shareholders - - -
2) Guarantee of participation for shareholders

(Detailed principle 1-② ②) The shareholders shall present their opinions by participating in the meeting of
shareholders as much as possible.
□ The Company held the general meeting of shareholders in 2018 and 2019 on the ‘shareholder concentration day’
due to the internal situation of the Company, but the general meeting of shareholders of 2020 was held by avoiding the
concentration date and it had a greater number of shareholder participation than before.
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□ The Company does not adopt voting in writing and electronic voting for the meeting of shareholders under the
company’s situation.
As a way of supplementing the foregoing, the Company recommended the proxy to exercise the voting right through
the <reference document> disclosure at least 2 weeks prior to hold all meeting of shareholders to encourage to
exercise the voting rights of most shareholders and the Company seeks to enable as many shareholders to attend the
meetings as possible. The contents related to the recent meeting of shareholders regarding this matter are shown as
follows.
<Meeting of shareholders held from 2018 to the date of submitting the disclosure documents>
Classification The 20th general meeting of The 21st general meeting of The 22nd general meeting of
Concentration day of the general meeting of shareholders Mar. 23, 29 and 30 of 2018 Mar. 22, 27, 28 and 29 of 2019 Mar. 13, 20, 26 and 27 of 2020
Date of general meeting of shareholders Mar. 29, 2018 Mar. 28, 2019 Mar. 30, 2020
Dispersed holding of general meeting of shareholders Not applicable Not applicable Applicable
Implementing the voting in writing No No No
Implementing the electronic voting No No No
Recommendation when exercising the proxy voting right Yes Yes Yes
<Contents of pros and cons for each agenda in the meeting of shareholders held from 2019 to the date of submittal for
disclosure documents>
General The 21st general meeting of shareholders Mar. 28, 2019
Agenda Classificat Purpose of the meeting Approval Total number of No. of ① Ratio of number of consenting shares
ion for outstanding shares with (B) (Ratio, %)
resolution shares with voting right (A) No of opposing and abstain shares
voting right (①) (C) (Ratio, %)
No. 1 Agenda Common The 21st Term (‘18.1.1~‘18.12.31) Adopted 202,738,9 8 175,4 0,903 16 ,793,130 (95.07%)
Matter of approval for financial statements
(including statement of retained earning 8,647,7 3 (4.93%)
disposition) & consolidated financial statements
No. 2 No. 2-1 Common Senior Director (Standing (Candidate) Kim Not 172,680,846 Consent 38,150,705 Opposition and
Agend audit member candidate) Yong-beom adopted (22.09%) abstain
a No. 2-2 Matter of appointment (1 (Candidate) Song Adopted Consent 8,678,498
person) Seok-du 125,851,643 (5.03%)
(72.8 %)
No. 3 Agenda Special Standing audit member (In-company director) Adopted 131,23 ,381 89,877,013 54,310,776 (60.45%)
Matter of appointment (1 person) 35,545,237 (39.5 %)
No. 4 No. 4- No.4-1- Common non-standing director (Candidate) Ko Jin-Not 202,738,9 8 161,965,164 Consent 26,357,251 Opposition and
Agend 1 1 (Recommendation of beop adopted (16.27%) abstain
a No.4-1- Youngwol-gun Mayor) (Candidate) Jang Adopted Consent 7,237,493
2 Matter of appointment (1 Kyung-jae 128,370,420 (4.47%)
person) (79.26%)
No. 4- No.4-2- Common non-standing director (Candidate) Kim Not- 170,779,341 Consent 26,647,236 Opposition and
2 1 (Recommendation of Hwa-yoon adopted (15.60%) abstain
No. 4-2- Samcheok-si Mayor) Matter (Candidate) Jung Adopted Consent 6,540,308
2 of appointment (1 person) Gwang-soo 137,591,797 (3.83%)
(80.57%)
No. 5 Agenda Common Matter of approval for limit of remuneration for Adopted 131,249,031 (74.81%)
directors 175,4 0,903 4 ,191,872 (25.19%)
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No. 6 Agenda Common Matter of partial modification of the 「Articles Adopted 175,4 0,903 175,439,8 4 (9 .9 %)
of Incorporation」 1,019 (0.01%)
General The 22nd special meeting of shareholders Jan. 10. 2020

Classificatio Purpose of meeting Adoption Total number of No. of ① shares Ratio of number of consenting
Agenda n of outstanding shares with voting right shares (B) (Ratio, %)
resolution with voting right (A) No of opposing and abstain
(①) shares (C) (Ratio, %)
No. 1 Agenda Matter of appointment acting chairman: Moon Tae- Adopted 134,741,749 (78.67%)
General gon) 202,738,9 8 171,265,478 36,523,729 (21.3 %)
No. 2 Agenda Matter of mitigating circumstance for external Adopted 35,280,380 (20.60%)
General director 202,738,9 8 171,265,264 135,984,84 (79.40%)
General The 22nd general meeting of shareholders Mar. 30, 2020

Agenda Classification Purpose of the meeting Total outstanding No. of ① shares Ratio of number of consenting
of resolution Adoption shares with voting with voting right shares (B) (Ratio, %)
right (①) (A) No of opposing and abstain
shares (C) (Ratio, %)
No. 1 Matter of approval for financial statements in the 22nd 165,632,943 (93.87%)
Agenda General term (including Statement of retained earnings Adopted 202,738,9 8 176,451,486 10,818,543 (6.13%)
disposition) and consolidated financial statements
No. 2 Matter of appointment for candidate of Audit 85,527,478 (95.09%)
Agenda General Committee member: Kim Joo-il) Adopted 116,232,692 89,945,102 4,417,624 (4.91%)
No. 3 Matter of approval for limit of remuneration for 176,419,367 (9 .98%)
Agenda General directors Adopted 202,738,9 8 176,451,486 32,119 (0.02%)
※ The matter of appointing audit and Audit Member is recorded with the no of shares excluding the no of shares restricted with the voting right
※ No. of shares (A) = No. of shares (B) + No. of shares (C)
※ Ratio of share for consent (%) = (B/A) × 100
※ Ratio of share for opposition and abstain (%) = (C/A) × 100
3) Guarantee of shareholder proposal right

(Detailed principle 1-③) A company shall enable shareholders to easily propose the agenda in the meeting of
shareholders, and make inquiries at will and demand explanation on the agenda proposed by the shareholder at the
meeting of shareholders.
□ The Company does not impose any restriction on the shareholders in proposing the agenda of the meeting of
shareholders and it has the policy to review enthusiastically when the shareholders propose agenda items.
□ The contents of shareholder proposal submitted to the Company from 2018 to the time of decision-making
document submittal date are shown as follows.
Date of proposal Nov. 25, 2019

Subject of proposal 6 minority shareholders including Taebaek-si (Taebaek-si, Jeongseon-gun, Samcheok-si, Youngwol-gun, Gangwon-do and Gangwondo
Development Corporation)
Contents of Hosting of meeting of shareholders with the agenda in mitigating the responsibility for damage compensation on the Company for 7 directors
proposal 1) consented for matters of contribution by Taebaek-si in the 111th Board of Directors (2012.7.12.)
Status of ‘Request to hold meeting of shareholders for the resolution of mitigating the responsibility on the Company for the director (’19.11.25.),
disposition and hosting of the Board of Directors of the Company tor hosting the meeting of shareholders (’19.8.26. /’19.9.25.) and deliberation of agenda
performance (decision to postpone) petition to a court for permission to convene special meeting of shareholders by minority shareholder
including Taebaek-si (’19.8.30.) permitted for convening of the special meeting of shareholders of the court (’19.11.6.) and hosting of
the special meeting of shareholders (’20.1.10.)
104
Adoption Not adopted Rate of consent (%) 20.60% Rate of opposition and 79.40%
abstain (%)
1) Background of agenda: In 2012, the Board of Directors determined to donate KRW 15 billion to Taebaek-si to resolve the funding difficulty of Otoo Resort
(2012.7.12.), and on this matter, the Board of Audit and Inspection pointed out (Feb. 2014) that there is a need for claim of damage compensation against 9
directors (7 consenting and 2 abstaining directors) that had the voting at the Board of Directors on the ground of inflicting loss to the Company with the payment of
donation fund. Thereafter, the Company commenced the litigation to claim for damage compensation against those directors, and consequently, the Supreme Court
renders the decision (2019.5.16) by acknowledging the liability for damage compensation against the 7 directors who consented from all 9 directors. Therefore, the
6 minority shareholders including Taebaek-si (Taebaek-si, Jeongseon-gun, Samcheok-si, Youngwol-gun, Gangwon-do, Gangwondo Development Corporation)
demanded the Company to hold the meeting of shareholders with the agenda of mitigating the liability of damage compensation (mitigating the damage
compensation amount of KRW 3 billion and interest to KRW 571 million) against the 7 directors pursuant to Article 366 (2) of the Commercial Act.
□ From 2018 to the decision-making document submittal date, there is no open letter submitted to the Company as
part of the performance activities with the trustee’s responsibility of institutional investors.
□ Due to the fact that there are rare cases of shareholder proposals, there is no detailed device available for internal
standard, procedure and homepage information for current proposal of shareholders but it is scheduled to review the
detailed plans by having the ways of easy use of shareholder proposal by sufficiently reviewing the policy in the future.
□ The Company does not have any restriction on any shareholder to attend in a meeting of shareholders to freely
inquire and request for real name, and it respects all statements of shareholders with the exception of cases where it
clearly intends to interfere with the process of the meeting.
4) Policy of shareholder restoration

(Detailed principle 1-④) The Company shall prepare the mid- to long-term shareholder restoration policy including
the dividend, future plan etc., and inform the same to shareholders.
□ For enhancing the shareholder value through the enthusiastic shareholder restoration, the Company has
implemented the dividend for each year beginning from the 2000 accounting year, and in particular, it has
paid a dividend of 44% or more for each year since 2007 that the efforts have been made to protect the rights
and interests of shareholders. The Company shall prepare a separate mid- to long-term shareholder restoration
policy that does not disclose the fact, but in the future, it has the policy to determine for dividend by
considering the balance of interests for continued growth and shareholder restoration to place its best effort to
enable the shareholder restoration as much as possible.
□ Matters on the dividend for each year is finally determined in the general meeting of shareholders through the
resolution of the Board of Directors, and the matters to determine in each phase is provided to the
shareholders immediately through the electronic disclosure. After the resolution of the meeting of
shareholders for each year (later part of March), the dividend is paid within 30 days, and the notice of
dividend is forwarded via mail at least one week of payment date to confirm the contents of dividend to
shareholders. It does not make any separate disclosure (dividend policy, future dividend plan, etc).
(Detailed principle 1-⑤) The right of Shareholders to receive appropriate level of dividends based on the shareholder
restoration policy, future plan etc. must be respected.
The dividend trend of the Company in the past 3 years is 45% ~ 61% that sought for shareholder restoration as much
as possible and the status is shown as follows. The differentiated dividend, quarterly dividend, and intermediary
dividend are not implemented.
<Status of shareholder restoration for each of three recent business years>

Settlement Type of Share Cash dividend (shares, KRW, %)
Business year month share dividend Dividend per Total dividend amount (KRW) Market price Dividend trend (%)
share (KRW) dividend rate (%) Consolidation base Individual base
2019 12 Common shares - 900 182,465,098,200 3.0 54.52 54.37
2018 12 Common shares - 900 182,465,098,200 2.7 61.39 61.37
2017 12 Common shares - 990 200,711,608,020 2.8 45.87 45.92
※ The dividend per share is based on the settlement dividend proceeds.
105
※ The market dividend rate is the ratio of dividend per share on the average price formed in the exchange market for the past week from 2 stock transaction days
of the shareholder registry closing day.
※ The applicable trend is the ratio of current net income or total dividend proceeds.
B. Fair Treatment of Shareholders
(Key principle 2) Fair Treatment of Shareholders

A shareholder shall be granted with the fair voting right in accordance with the class and number of shares it owned
and the effort shall be made to have the system that fairly provides the corporate information to shareholders.
1) Protection of voting right for shareholders and corporate information disclosure

(Detailed principle 2-①) A company shall not interfere with the voting right of the shareholders and it shall provide
the shareholders with corporate information in time, sufficiently and fairly.
A) Protection of voting right for shareholders

□ The Company has issues a total of 213,940,500 common shares to the present time and it does not issue the class
shares. From them, the number of distribution shares excluding the equity shares is 202,738,998 shares and all are
guaranteed with the fair voting right. The status of share issuance is shown as follows.
<Status of share issuance>

Classification No. of share available for issuance (No. of Number of Remark
authorized shares) outstanding shares
Common shares 213,940,500shares Equity shares for 11,201,502 shares
1,000,000,000 shares
Class shares - -
※ The number of available shares to issue is the number of authorized shares (number of shares on the Articles of Incorporation) as of the standard date.
※ The number of available class shares is 250,000,000 shares or less.
※ The number of outstanding shares has deducted the total number of shares of the shares decreased (capital decrease, profit retiring, etc) as up to the base date
from the total number of shares issued up to the present base date and there has been no changes compared to the previous year.
B) Communication with shareholders

□ Under the principle that ‘the shareholders are provided with corporate information fairly, sufficiently and timely’,
the Company facilitates the electronic disclosure and web-site of the Company. In the web-site, it discloses the status
of corporate governance, 「Articles of Incorporation」 and other management information, as well as main IR data
(quarterly performance data, business report, and audit report), real-time share information, contact for person in
charge (TEL, fax number) and others to allow as many shareholders as possible to access the information. The e-mail
address of the person in charge is refrained from decision making with the concern of hacking.
□ The Company operates an English web-site and the English IR page for foreign shareholders provide the contact for
IR inquiry and performance data in English. The English-version disclosure is not available.
□ The quarterly performance is announced through the fair disclosure, and separate performance related data is posted
on the web-site to provide the detailed information to shareholders. The contents of main IR activities and fair
decision making are shown as follows.
<Contents of fair decision making from 2019 to the date of submitting the decision-making documents>
Date of decision Title of decision making Main contents
making
2019.2.12. Notice of settlement performance decision making (decision Notice of performance decision making
making information)
2019.2.14. Performance of standard operating (tentative) of consolidated Tentative performance in sales revenue, operating income, etc. for 4Q of
financial statements (fair decision making) 2018s (fair decision making)
106
making information)
making information)
making information)
making information)
making information)
<Status of main IR from 2019 to the date of submitting the decision-making documents >
Date Subject Form Main contents
2019.2.21.~22. Domestic and overseas institutional J.P. Morgan Korea Conference 2019 Business status and future prospect
investor
2019.3.8. Domestic and overseas institutional Citi Korea Investor Conference 2019 Business status and future prospect
investor
2019.5.16.~17. Domestic and overseas institutional Samsung Global Investors Conference 2019 Business status and future prospect
investor
2019.6.24.~25. Overseas institutional investor UBS Korea Conference 2019 Business status and future prospect
2019.7.19. Domestic institutional investor IR session for Kangwon Land for Hana Financial Business status and future prospect
Investment
2019.8.29.~30. Overseas institutional investor Bank of America Merrill Lynch 2019 Korea Business status and future prospect
Conference
2019.12.13. Casino analyst Bull session Business status and future prospect
※ One-on-one IR, conference call and others for each investor as processed from time to time are omitted from recording.
□ The Company has not been designated as delinquent public corporation since the marketable securities market
listing (2003.9.4.to the present time and it is committed to duly fulfill its obligation for disclosure in the future.
2) System to prevent insider trading and self-serving transactions

(Detailed principle 2-②) A company shall prepare and operate the device to protect the shareholders from the self
transactions and inside transactions of the other shareholders, such as controlling shareholders and others.
□ The Company is not applicable to the corporate group under the 「Fair Trade Act」, and for the characteristics of
affiliated companies (operating theme park, golf course and others), the possibility of mutual transaction is
conspicuously low. In the event that there is any internal trading case with an affiliated company, it has to go through
the approval of the top management or Board of Directors depending on the agenda after the review by the affiliated
company management department. In this relation, a separate system (policy) has not been prepared, but it plans to
enthusiastically review its needs.
□ The head of institution (representative director), deputy head of institution (vice president) and standing auditors of
the Company are applicable for subject of asset decision making for public employee following Article 10 of the
「Public Service Ethics Act」, and pursuant to Article 14-4 and Article 14-5 of the 「Public Service Ethics Act」, in
the event that the total amount of the shares held by the applicable person and interested party exceed KRW 30 million,
the applicable shares shall be requested for disposition, blank trust and duty-related review in principle. In addition,
there are various controlling devices as follows to cut off the unethical decision against the interest of the Company
and the activities and works of the top management and employees to be based on ethical responsibility, and it is done
107
with the self-transaction control of officers and employees.

• Through the 「Officer Duty Integrity Contract Operation Regulation」, the top management is required to fulfill its
obligation and responsibility of work integrity and it is taken as a guideline for ethical management and transparent
management. The appointed officer shall have the obligation to enter into the ‘Officer Duty Integrity Contract’ and it
operates as the primary controlling device to cut off the acquisition, intervention or involvement of unjust gain by
using the position as an officer.
•Through the 「Human Rights and Ethical Management Execution Regulation」, the standards and procedures are
defined for management execution for officers and employees in striving for the ethical corporate culture. This
regulation specifies the responsibility of shareholders with the general principle of ethical management through
‘maximizing the interests of shareholders through sound management activities’, and the officers and employees have
the obligation to report any act interfering with the 『Ethical Code of Conduct for Officers and Employees of
Kangwon Land』 following the ethical management principle.
• Through the 「Guideline on Clean Citizen Audit Operation」, it is granted with the authority to monitor the
independent position regarding the corruption vulnerable works in the view of a third party, not officer or employee,
in a way of working as one of the corporate control devices.
□ From 2019 to the present decision-making document submittal date, there are no contents of transaction between the
Company and interested parties, such as controlling shareholders or the like. For a reference, 51% of the Company
equity is fixed as the public equity for Mine Redemption Corp, Gangwondo Development Corporation, Jeongseon-gun
and others, and for shareholder with 1% or more, there are National Pension Corporation and others.
BOARD OF DIRECTORS
A. Functions of the Board of Directors
(Key principle 3) Functions of the Board of Directors

The Board of Directors shall determine the management goal and strategy of the Company for the interests of the
Company and shareholders and shall supervise the top management effectively.
1) Decision making and management supervision of management for the Board of Directors
(Detailed principle 3-①)
The Board of Directors shall effectively carry out the functions of management decision making and management
supervision.
A) Matters for deliberation and resolution of the Board of Directors that is set forth by the 「Articles of Incorporation」
or 「Board of Directors Regulation」
The Board of Directors of the Company is the highest management organization where the important matters of the
Company affairs are resolved in accordance with Article 33 of the 「Articles of Incorporation」, and the resolution
matters under Article 7 and Article 7-2 of the 「Board of Directors Regulation」 and other matters to report are
shown as follows.
<Matters of resolution>
1. Agenda for convening meeting of shareholders and negative stipulation
2. Establishment and modification of management goal and budget, and plan for operation and mid- to long-term
financial management
3. Disposition of settlement and profit surplus
4. Issuance of new shares and disposition of forfeited share
5. Subscription of debenture
6. Establishment, transfer and shut down of branches etc
108
7. Establishment, modification and closing of following main provisions

A. Articles of Incorporation
B. Regulation of the Board of Directors
C. Regulation on Position System
D. Employment Regulation
E. Personnel Provision
F. Wage regulation, Salary System regulation, Officers’ Remuneration regulation
G. Welfare regulation
H. Accounting regulation
I. Audit Committee regulation
J. Internal accounting management regulation
K. Contract regulation
K. Investment project deliberation regulation
L. Anti-Money Laundering Work regulation
M. Officer Nomination Commission Operation regulation
8. Matters required for deliberation and resolution of the Board of Directors under the matters set forth by the laws,
regulations or company regulations
9. Matters on establishment and operation of Subcommittees in the Board of Directors
10. Establishment and revision of appointing compliance officer and compliance control standards
11. Organization of the Officer Nomination Committee
12. Capital investment, contribution and debt guarantee on other corporate entities etc
13. Management contract (proposed) with Representative Director (President)
14. Acquisition and disposition of real estate and extraordinary deficit and expenditures for KRW 3 billion or more
15. Matters requested by Representative Director (President) that acknowledges as required for the deliberation and
resolution of the Board of Directors
16. Other matters that the Board of Directors acknowledges as required in particular
<Matters to report>
1. Matters pointed out from the national audit, accounting audit implemented in accordance with the provisions of
Article 43 (1) of the 「Act on the Management of Public Institutions」 and the audit implemented by the Board of
Audit and Inspection in accordance with the provision of Article 52 of the same Act, and the plan and performance
thereof
2. Collective agreement result of the Company and ensuing the estimated budget requirement
3. Face of clarification following the provision of Article 20 of the 「Enforcement Decree of the Act on the
Management of Public Institutions」
4. Fund operation plan for each business year
5. Status of AML for each business year and audit result
6. Operation status and evaluation in operating the internal accounting management system for each business year
7. Matters of report following Article 7 (4)
8. Other matters that the Board of Directors set forth to report under the laws, regulations or the Company regulations
or request to the Representative Director (President)
B) Matters other than the required matters under the pertinent laws from the matters deliberated and resolved by the
Board of Directors
The Board of Directors of the Company specifies to obtain the deliberation and resolution of the Board of Directors
for the acquisition and disposition of real estate and non-ordinary expenditures of KRW 3 billion or more under
Article 7 (1) (xv) of the 「Board of Directors Regulation」 other than the matters obligated under the x3 and
pertinent laws and regulations. Through the foregoing, when engaging in real estate sales or engaging in new business,
the external auditors as non-standing directors, review the conformity of management policy and core value of the
109
Company, feasibility of business promotion and appropriateness of cost for the applicable agenda in a way of securing
the public nature of the Company and enhancement of transparency.
C) Matters delegated to the Committee in the Board of Directors and representative director from the rights of the
Board of Directors
With the exception of cases set forth differently under laws and regulations, the Board of Directors may delegate the
rights by setting forth the matters on authority, operation and others after establishing the committees within the Board
of Directors with the resolution of the Board of Directors in accordance with the 「Commercial Act」 and
「Articles of Incorporation」.
In addition, when there is any availability to hold the Board of Directors or unable to hold as a matter that requires
urgency, the representative director shall take a required measure first and then obtain approval by presenting it in the
next board meeting.
As described on the above, the Board of Directors of the Company adds and reviews separate resolution matters for
strengthening the self-regulated control standards in addition to laws, regulations or 「Articles of Incorporation」,
and if necessary, the authority of the Board of Directors is effectively carried out with the management decision
making and management supervisory functions by delegating the authority to the committees within the Board of
Directors and representative director.
2) CEO succession policy

(Detailed principle 3-②) The Board of Directors shall prepare and operate the CEO succession policy (including the
non-standing appointment policy) and make continuous improvement and supplementation.
A) Establishment of the succession policy and operating subject

In the event that the term of the CEO (representative director) is expired and there is a need for new appointment, the
Company shall proceed appropriate to the procedure following the 「Act on the Management of Public Institutions」
and 「Operation Regulation of the Officer Nomination Committee」. The main entity of establishing the succession
policy and operation is the Officer Nomination Committee, and it is organized through the resolution of the Board of
Directors in accordance with Article 29 of the 「Act on the Management of Public Institutions」.
B) Main contents of the succession policy on candidates (group) selection, management, education etc.
□ The Officer Nomination Committee carries out the works of determination of method to recruit the candidate,
review of officer candidate, and decision of person to be nominated as the officer candidate. For the case of
representative director, the candidates are recruited through open subscription method of nomination or both, and the
review is processed in accordance with document and interview review defined under the 「Operation Regulation of
the Officer Nomination Committee」. The Officer Nomination Committee of the Company shall nominate 5
candidates to the Steering Committees of public institutions under the Minister of Planning and Finance, and thereafter,
the representative director is appointed through the appointment procedure of the President through the deliberation
and resolution of steering committees of public institutions, resolution of the meeting of shareholders, and second
motion of the Minister of Industry, Commerce, Resource (chairman of the pertinent institution).
□ The term for the CEO (representative director) of the Company shall be 3 years (head of agency) following Article
28 of the 「Act on the Management of Public Institutions」 and may consecutively serve in 1-year unit. Matters on
consecutive service are determined by the president through management performance evaluation following Article 48
of the same Act. In the event that the head of institution is consecutively served, and the contract shall be executed
with the Minister of Industry, Commerce, Resource again in accordance with Article 31 (3) of the same Act.
□ When the CEO (representative director) is unable to carry out its duty for inevitable cause, a senior director in
sequence set forth by the position system regulation in accordance with Article 29 of the 「Articles of Incorporation」
shall act on behalf of the CEO, and when all senior directors are unable to act on behalf, the senior non-standing
director in sequence of next seniority, and oldest director from all non-standing directors carry out the duties.
□ The Company shall reflect the contents related to the 「Act on the Management of Public Institutions」 with
respect to the appointment of the CEO (representative director) on the internal regulation and appointment procedure
110
to continuously improve and supplement the succession policy of the CEO.

□ During the decision making subject period (2019.1.1.~report submittal date), there is no fact of CEO appointment
and no education thereto.
3) Internal control policy

(Detailed principle 3-③) The resolution of the Board of Directors shall prepare and operate the internal control policy
(risk management, compliance management, internal accounting management, disclosure information management,
etc) and continuously improve and supplement the same.
A) Risk management
□ In order to respond to the risk available from drastic change of the internal management environment, the Company
operates the preemptive response system through the detailed management for each field while strengthening the post
management through the audit activities. The risks are largely classified for financial risk and non-financial risk, and it
has regulation and deliberation advisory committee for each detailed field to secure the minimization of risk factor and
reasonable decision.
<Risk management system>
Risk management system

리스크관리체계
Securing of verification (Surveillance Team, etc.)

증빙확보 (Surveillance 팀 등)
Financial risk
재무리스크
Liquidity
유동성
Respond to risk through non-borrowing policy, investment execution and
others
무차입기조 유지 및 투자집행 등을 통해
리스크 대응
Profitability
수익성
Resort income improvement through improvement of profit structure and
cost savings
수익구조 개선 및 비용 절감을 통한
리조트 수익개선
Investment
투자
Profit improvement through reflection of professional opinions and
diversification of investment assets
외부 전문가 의견 반영 및 투자자산
111
다변화를 통한 수익개선
Operation
운영
Advance prevention, audit from time-to-time, prevention of illegal
accounting and enhancement of transparency
사전예방 상시 감사, 회계 부정 예방 및
투명성 제고
Risk acceptance
리스크 접수
Risk identifying and examination

리스크 식별 및 진단
Risk control
리스크억제
Establishment of response strategy

대응전략 수립
Request for cooperation from pertinent institution

유관기관 협조 요청
Reception of action result

조치결과 접수
Availability of independent processing

자체 처리 가능여부
Structuring of risk and post management

리스크 DB 구축 사후 관리
Feedback on management policy

관리정책 피드백
Risk management evaluation

리스크 관리평가
Risk control and response

리스크 통제 및 대응
Non-financial risk
비재무리스크
Information ● security
정보●보안
Strengthening of response competency involving personal information
infringement through independent mock training
자체 모의 훈련을 통한 개인정보
침해사고 대응 역량 강화
Environment
환경
Set for environment management policy with the goal of environmentally
friendly resort (energy and resource savings)
친환경 리조트를 목표로 환경영방침을
설정 (에너지 및 자원 절감등)
Disaster ● safety
재난 ● 안전
Implementing various facility safety inspections through compliance with
the Industrial Safety and Health Act and checklist
산업안전보건법 준수 여부 및
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체크리스크를 통한 각종 시설 안전점검
실시
Illegality ● Corruption
부정●부패
Status of code of action and strengthening of inspection for indiscipline
and special work affairs
행동강령 이행 실태 및 기강해이 특별
복무 점검 강화
□ For the financial risk management, it has the detailed regulation and guideline for each works related to fund
operation, investment, contract and others, and it has 7 committees, such as Fund Operation Advisory Committee,
Investment Deliberation Committee, contract deliberation and others, to operate. Depending on needs, the external
specialists may be participated in the committee.
□ The non-financial risk is classified for information, security, environment, disaster safety, illegality and corruption,
and others, and on the basis of the regulation for each field, it is managed through various activities with the purpose
of Committee operation for each field, preemptive response and competency strengthening for procedural risk
management.
□ As the multiple service facilities, the Company structures powerful safety and health preventive system on the basis
of regulations and organization for disaster and safety risk management of 「Disaster Prevention and Inspection
Guideline」, 「Risk Evaluation Implementation Regulation」 and others. The Comprehensive Situation Center
monitors the enterprise crisis situation in real time to operate, and the representative director or vice president is to
work as the commissioner of Disaster Safety Committee, Industrial Safety and Health Committee, and Safety
Management Advisory Committee for determining the safe management related material matters to minimize.
Following such a policy, the COVID-19 crisis broke out in early February 2020 has been encountered with preemptive
and aggressive response in enterprise level by implementing voluntary shut down for business site for casino facilities
(mid-February) and resort facilities (early March). In addition, e the internal control system has been structured for
early warning through the – monitoring system, unanimous informant, request registration system for illegal and
corruption risk management, and through the regulations of 「Operation Guideline on Report of Corruptive Practice
and Protecting Reporting Person」, 「Officer Duty Integrity Contract Operation Regulation」, 「 Human Rights
and Ethical Management Execution Regulation 」, 「Ethical Code of Conduction of Officers and Employees」,
「Auditor Ethics Code of Conduct」 and others, the Company presents clean and ethical decision making for officers
and employees and conduct standard as a way of having a control device for Illegality Corruption Risk Prevention.
□ For the post management on the risk prevention and recurrence prevention, there are 5 committees (Audit
Committee and others) in operation in the audit field together with the integrity audit organizations (planning audit
team, management audit team and integral audit team).
In particular the clean citizen audit meeting is a system participated in by external personnel for structuring efficient
corruption prevention system.
B) Status of compliance management

The Company has established the 「Compliance Control Regulation」 and 「Detailed Rules of Implementation on
Compliance Control Regulation」 (May 2017) and sets forth the procedure and standard to comply for officers and
employees work performance in order to enable the fair and transparent business operation through compliance with
the pertinent laws and regulations. In addition, for accomplishing the compliance control following this regulation, it
is inspected and reported to the Board of Directors for the operation from May 2017 by introducing the compliance
supporter system. The compliance supporter is currently vacated after the previous officer resigned based on personal
reasons (March 2019).
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C) Status of decision making information management

The Company operates and manages the decision making related works in accordance with the 「Disclosure
Information Management Regulation」 and control organization. The disclosure control activities are operated as the
system to inspect, acquire and manage the disclosure information from regular and time-to-time for the subject of key
department for the head of planning and management division as the responsible person of disclosure as well as the
Funding Team under Office of Finance Management, the department in charge of disclosure, the main department in
charge of the disclosure.
D) Status of internal accounting management system operation

□ The Company produces, manages and controls the information related to accounting through the internal accounting
management system following the 「internal accounting management regulation」. The responsible person of
operating the internal accounting management system is the representative director, and the head of planning
management division is the internal accounting management that oversees the accounting management of the system,
and operation organization. The representative director carries out the inspection on effectiveness of the internal
accounting management system for each business year, and the operation status is reported to the Board of Directors,
Audit Committee, and meeting of shareholders. The Audit Committee evaluates the management status of the system
as the monitored of this system to report to the Board of Directors.
□ For the system operation to comply with the 「Act on External Auditor of Stock Companies, etc.」 (revised in Oct.
2017), the Company implemented the re-structuring of internal accounting management system (completed in Jan.
2019) and the revision of the 「internal accounting management regulation」 (May 2019) through the external
specialist, and the independence of the Company system was verified through the external specialist service. As a
result of such endeavors, the internal accounting management system audit report (March 2020) of 2019 accounting
year by the external auditor to obtain certification for effective design and operation for the internal accounting
management system.
□ The Company engages in the detailed control activities for each main category (enterprise, financial report,
personnel, funding, disclosure, computerization, legal regulation management, tangible assets, purchase, casino sales,
golf sales, hotel sales, condominium sales, ski resort sales, watermark sales, settlement management) and implements
the internal evaluation thereof. The internal evaluation to be implemented in 2020 is implemented through external
consulting with the design evaluation and operation evaluation (advance evaluation of independent TF team) to
maintain independence of the system, and it adds the change management and illegal risk evaluation process for the
response of internal and external environment changes. In the meantime, through the establishment of the 「internal
accounting management work guideline」 within the year, it plans to prepare the detailed guideline related to design
and operation of the internal accounting management system along with the organization and report system of the
internal accounting management system, appropriateness of the internal accounting management system organization,
establishment and implementation of the education plan, work agency plan, outcome evaluation, selection of scope,
risk evaluation and adverse risk evaluation, selection and structuring of control behavior, change management system
etc.
B. Organization of Board of Directors
(Key principle 4) Organization of Board of Directors

The Board of Directors shall be comprised to make decision making efficient and supervise the top management and
the directors shall be appointed under a transparent procedure to reflect the opinions of shareholders broadly.
1) Related to organization of Board of Directors and non-standing director (External director)

(Detailed principle 4-①) The Board of Directors shall be comprised to make careful consideration and decision
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making effectively, and shall have the external directors sufficiently carry out the functions independently from the
top management and controlling shareholders.
The Board of Directors of the Company is organized with 15 or less directors including one Representative Director
(President) in accordance with Article 25 of the 「Articles of Incorporation」 and Article 18 of the 「Act on the
Management of Public Institutions」, and for the committees within the Board of Directors, it has the Audit
Committee and Officer Nomination Committee. Pursuant to minority shareholder 33 of the 「Articles of
Incorporation」, the representative director shall not concurrently serve as the chairman of the Board of Directors, and
the majority of total number of directors is organized with non-standing directors to secure the independence from top
management or system and it secures the decision making with effective and serious discussion. As of the report
submittal date, the contents related to the Board of Directors are shown as follows.
A) Organization map related to Board of Directors, committees in Board of Directors, support division and
others
주주총회 Meeting of shareholders

이사회 (13 인) Board of directors (13 persons)
경영기획팀 (3 인) Management Planning Team (3 persons)
대표이사(사장) Representative Director (President)
임원추천위원회 (5 인) Officer Nomination Committee (5 persons)
감사위원회 Audit Committee
감사실 (28 인) Office of Audit (28 persons)
비서팀 (3 인) Secretary Team (3 persons)
※ 이사회 : 13인(상임이사 4인, 비상임이사 9인), ※ Board of Directors: 13 persons (Senior Director 4
감사위원회 : 3인(상임이사 1인, 비상임이사 2인), persons, non-standing director 9 persons), Audit Committee:
임원추천위원회 : 5인(비상임이사 3인, 3 persons (Senior Director 1 person, non-standing director 2
외부위원 등 2인), 가장 최근 개최된 위원회의 인원 persons), Officer Nomination Committee: 5 persons (non-
기준 standing director 3 persons, external members 2 persons),
※ 지원부서의 인원은 실제 이사회 및 이사회 내 based on personnel for the committee most recently held
위원회 관련 업무를 담당하는 인원 기준 ※ The personnel of the support dept. is based on the
personnel in charge of relevant works related to the actual
decision making and members on the Board of Directors
B) Status for organization of Board of Directors

Classification Name Gender Position Date of Scheduled date Specialized field Main experiences
appointment of term
expiration
Senior Director (In- ◦ Ministry of General Affairs (24th National
company director) Moon M Representati 2017.12.21. 2020.12.20. General corporate Examination on Government
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Tae-gon ve Director management Administration), Ministry of National

(President) Defense
◦ National Budget and Audit (Grade 5~2)
◦ Public Officer Secretary in the Office of
Civil Administration in the Blue House
◦ Deputy Minister II, Director General of
Planning and Control Office, Board of
Audit and Inspection
◦ Standing Audit Member of Samsung Life
◦ Advisor of Law Firm Hwawoo
◦ 32nd National Examination on Government
Senior Director (In- Song M Standing 2019.4.8. 2021.4.7. General corporate Administration)
company director) Seok-du audit audit ◦ Deputy Governor in Administration for
member Chungcheongnam-do
◦ Deputy Mayor in Administration for
Daejeon Metropolitan City
◦ Deputy Governor in Administration for
Gangwon-do
Senior Director (In- Han M Vice 2017.12.21. 2020.12.20. General corporate ◦ Civil Officer for the Office of President
company director) Hyung- President management Secretariat
min ◦ Executive Director of Paradise Co., Ltd.
Senior Director (In- Director of General corporate ◦ Director of Support for National
company director) Go M Planning 2018.9.28. 2020.9.27. management Governance of Presidential Committee on
Gwang-pil Management Regional Administration Policy
Division ◦ Head of Midland Mine Safety Office of
Ministry of Industry
◦ Director of Planning and Cooperation,

non-standing Gwon M - 2017.12.21. 2020.12.20. Corporate Central Government Employee Education
director (Non- Sun-rok management Center
executive) advisory ◦ Director of Administrative Support for
Regional Administration Training Center,
Ministry of the Interior and Safety
◦ Director of Investigation, Bureau of
General Affairs for Personal Information
Protection Committee
◦ Director General of Management Strategy,
Korea Mine Management Corp.
◦ Team Manager of Private School Faculty

Non-standing Kim Joo-il M Chairman of 2017.12.21. 2020.12.20. Accounting, audit Pension Corporation
director (External the board, ◦ Professor at Inha Univ.
director) Audit ◦ Director in Finance, Infinite Investment
Member Advisory Co., Ltd.
◦ External Director of UP Capital Co., Ltd.
◦ Associate Professor at Gyeonggi National
Univ.
Classification Name Gender Position Date of Scheduled date Specialized Main experiences
appointme of term field
nt expiration
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Non-standing Chairman of ◦ Team Manager of Private School Faculty Pension

director Kim M the Board of 2017.12.2 2020.12.20. Accounting, Corporation
(External Joo-il Directors, 1. audit ◦ Professor at Inha Univ.
director) audit member ◦ Director in Finance, Infinite Investment Advisory Co., Ltd.
◦ External Director of UP Capital Co., Ltd.
◦ Associate Professor at Gyeonggi National Univ.
Non-standing Head of Audit Accounting, ◦ Director for JD Business Consulting
director Choi M Committee 2017.3.30. 2020.3.29. audit (CPA) ◦ Planning and Audit Team Manager for Office of Planning
(External Don- and Control of Tongil Group
director) yong ◦ Head of Management Planning Office for Boyeong
Medians Co., Ltd.
Non-standing Corporate ◦ Secretariat Officer of Technology for National Forestry
director Kim M - 2017.12.2 2020.12.20. management Service
(External Jin-gak 1. advisory ◦ Advisory Member of Forestry for Kangwon Land Co., Ltd.
director) ◦ President of National Unification Taebaek-si Council
Non-standing Corporate ◦ City Council Member for Taebaek-si
director Lee M - 2019.1.3. 2021.1.2. management ◦ President of Taebaek-si Regional Action Plan Commission
(External Moon- advisory ◦ President of Taebaek-si Council for National Unification
director) geun Advisory Council
Non-standing ◦ President of Joint Council for Revitalization
director Choi M - 2019.1.3. 2021.1.2. Corporate Gohan·Sabuk·Nam-myeon Region
(External Kyung- management ◦ External Director for Kangwon Land Co., Ltd.
director) sik advisory ◦ President of 3.3 Memorial Association for Jeongseon
Regional Development Research Institute
Non-standing ◦ CEO of Han Woori Co., Ltd.
director Lee M - 2019.1.3. 2021.1.2. Corporate ◦ CEO of Seokgwang Industry Co., Ltd.
(External Tae-hee management ◦ President of Joint Council for Revitalization
director) advisory Gohan·Sabuk·Nam-myeon Region
Non-standing Corporate ◦ President of Dogye Development Advisory Commission
director Jung M - 2019.4.8. 2021.4.7. management ◦ External Director of Black BValley CC
(External Gwang- advisory ◦ President of Dogye-eup Community
director) soo
Non-standing Jang Corporate ◦ Civil Council Member of Youngwol-gun
director Kyung- M - 2019.4.8. 2021.4.7. management ◦ Representative Director of Youngwol Resident Co., Ltd.
(External jae advisory ◦ Representative of Good Speech Research Institute
director)
※Director Choi Don-yong maintains rights and obligations as a director until a successor is appointed in accordance with Article 28 (5) of the Act on the
Management of Public Institutions
※ Director Han In-goo resigned as of Mar. 26, 2020 but maintains the rights and obligations until Mar. 30, 2020
C) Status of organizing committees on the Board of Directors

Committee Organization Main roles
Title Classification Name Gender Concurrent
position1)
Audit Committee Chairman non-standing director Choi Don- M - Auditor for accounting affairs of the Company
(A total of 3 (External director) yong Approval on selection of external auditor
persons) Member Senior Director Song Seok- M - Matters set forth by the 「Articles of Incorporation」 or internal
(In-company director) du regulation in relation to the audit works
Member non-standing director Kim Joo-il M -
(External director)
Officer Member 3 non-standing directors Determination of recruitment method of officer candidates
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Nomination 2 other external members (appointed by the Board of Determination of review for candidates and persons to be nominated
Committee (A Directors) as officer
total of 5 persons) Stipulation of management contract with person to be nominated as
the candidate for Representative Director (President)
Other works related to nominating the officer candidate
※The president is selected by call from non-standing directors
1) Pursuant to Article 9 of the 「Official Information Disclosure Act」 and Article 41 of the 「Guideline on Management of Public Company and Quasi-
Government Institution」 of the Ministry of Planning and Finance, the Officer Nomination Committee member list shall not be disclosed that it does not mark for
cases of concurrently serving the member of the ‘committees within the Board of Directors’
D) Status of organization for Non-standing Director (External Director)

As of the decision-making document submittal date, from 13 organizations of Board of Directors members, there are 3
non-standing directors, and from the non-standing directors, there are 8 external directors with the exception of 1 on-
executive director. From all members of the organization of Board of Directors, the ratio of external director is
approximately 62%. Pursuant to minority shareholder 27 of the 「Articles of Incorporation」 and Article 28 of the
「Act on the Management of Public Institutions」, the non-standing director may serve consecutively, but there is no
non-standing director consecutively serving from the commencement day of disclosure subject period (Jan. 1, 2019) to
the decision-making document submittal date.
E) Separation of representative director and Chairman of the Board of Directors

In order to secure the independence from the top management and system, the chairman of the Board of Directors
shall be the new non-standing director, not the representative director pursuant to Article 33 (5) of the Articles of
Incorporation. The newly elected non-standing director is appointed through the deliberation·resolution of the Steering
Committee by the Minister of Planning and Finance from the non-standing director pursuant to Article 22 of the Act
on the Management of Public Institutions and Article 33-3 of the Articles of Incorporation.
2) Specialization and responsibility of the Board of Directors

(Detailed principle 4-②) The Board of Directors shall be comprised with the competent persons with specialization
and responsibility in various fields with knowledge and experience to be able to contribute practically to the corporate
management.
□ The Officer Nomination Committee, an organization for appointing new directors, Nominate persons equipped with
capability and rich academic knowledge and experience on the works of public companies and corporate management
following the Act on the Management of Public Institutions as the director candidate.
□ In particular, when appointing non-standing director, in order to accomplish the purpose of corporate establishment
in ‘economic facilitation of abandoned mine area’, the candidates that may represent various opinions of the region are
nominated by Gangwon-do, and head of local government in the abandoned mine area promotion districts in
Gangwon-do (2 persons from Gangwon-do and 1 person each from Taebaek, Samcheok, Youngwol and Jeongseon).
□ The Board of Directors of the Company is organized with professionals in various fields of knowledge, experience,
background and others to have competitiveness and sense of responsibility, including the persons that represent the
opinions of the abandoned mine area, that it is operated in the structure to realize the social value as a public
institution.
<Status of specialization and diversity of the Board of Directors as of the report submittal date>
Classification Name Gender Specialization and diversity
Senior Director Moon Tae-gon M Possess the transparent and fair work processing capability through diverse public positions where high integrity is
(In-company required, such as the BH and Board of Audit and Inspection
director) Song Seok-du M With the works done as the deputy governor of Gangwon-do, he has high level of understanding on the abandoned
mine area and the Company
Han Hyung- M Possess the specialized knowledge on operating the casino with experience gained as executive director of Paradise
min Co., Ltd.
Go Gwang-pil M Through the public service of 29 years, it possesses the capability of planning appropriate to the public agency
policies on the basis of administrative experience
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Non-standing High level of understanding on national and public institutions and has profound insight on work planning and
director (Non- Gwon Sun-rok M innovation
executive)
Kim Joo-il M A professional in the management field as an associate professor of Gyeonggi National University and possesses the
Non-standing various experience and knowledge in serving as an external director in other industrial fields
director (External Choi Don- M Equipped with professional competency on accounting and audit for carrying out the audit works for companies as
director) yong CPA
Kim Jin-gak M (Regional recommendation) A [professional in forestry from National Forestry Service and has various knowledge
on egoism by facilitating the surrounding natural environment
Lee Moon- M (Regional recommendation) With the background of civil council member of Taebaek-si, he has high understanding
geun on the local organization policies and status of regional status
Choi Kyung- M (Regional recommendation) He analyzes the scheme of regional development with the record of serving as the
sik director of Jeongseon Regional Development Research Institute and is equipped with competency to reflect on
management.
Lee Tae-hee M (Regional recommendation) Through the experience as representative for regional civil organization, he carries out
the role to represent the opinions of local residents
Jung Gwang- M (Regional recommendation) He has high understanding on the region with the capability on the role to control by
soo serving as the corporate external director
Jang Kyung- M (Regional recommendation) With the background as the civil council member of Youngwol-gun, he has high
jae understanding on the local government policy and status of regional economy
□ In the meantime, for strengthening the diversity of the Board of Directors, pursuant to Article 24-2 of the Act
on the Management of Public Institutions that was revised and implemented in July 2019, it plans to have 20%
or more of entire officers with female officers annually until 2022. For this purpose, it requests the Bureau of
Personnel Innovation to nominate the female candidates other than the general open recruitment from 2020,
and it is planned to publicize the open recruitment to a number of female organizations, such as the Ministry
of Women and Family, Korea Women Entrepreneurs Association and others. The contents of appointment of
director and changes are shown as follows.
<Contents of director appointment and changes (2018 ~ as of the decision-making document submittal date)>
Classification Name Initial appointment Expiration date Modification date Cause of change Current on the job
date
Senior Director (In- Go Gwang-pil 2018.9.28. 2020.9.27. 2018.9.28. Senior Working
company director) Song Seok-du 2019.4.8. 2021.4.7. 2019.4.8. Senior Working
Non-standing director Shin Joo-ho 2017.3.30. 2018.2.26. 2018.2.26. Resigned Retired
(non-executive) Yang Min-seok 2017.12.21. 2018.2.26. 2018.2.26. Resigned Retired
non-standing director Lee Yun-jae 2017.12.21. 2018.4.5. 2018.4.5. Resigned Retired
(External director) Lee Moon-geun 2019.1.3. 2021.1.2. 2019.1.3. Senior Working
Lee Tae-hee 2019.1.3. 2021.1.2. 2019.1.3. Senior Working
Choi Kyung-sik 2019.1.3. 2021.1.2. 2019.1.3. Senior Working
Jang Kyung-jae 2019.4.8. 2021.4.7. 2019.4.8. Senior Working
Jung Gwang-soo 2019.4.8. 2021.4.7. 2019.4.8. Senior Working
Han In-goo 2017.3.30. 2020.3.26. 2020.3.26. Resigned Retired
※ It is based on the corporate registry date of the Company and in the event that an officer resigns, the expiration date of the term shall be prepared as the
resignation date
※ In the event that the contents of change are 2 or more (for example: after appointed in 2017, resign in 2018), the cause of change is prepared for “resignation” as
the cause of final change
3) Fairness and independence of nomination for director candidate and appointment process
(Detailed principle 4-③) The fairness and independence have to be secured with respect to nomination for director
candidate and appointment in the process
C` processes the procedure based on the internal regulations and pertinent laws and regulations of the 「Act on the
Management of Public Institutions」, 「Articles of Incorporation」 and others for securing fairness and
independence in all phases on appointing directors from the Officer Nomination Committee to the meeting of
shareholders. As a public institution under Article 4 of the 「Act on the Management of Public Institutions」, the
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Company may nominate a multiple number of director candidates through the ‘Officer Nomination Committee’ of the
Company that is in charge of the role for the Director Candidate Nomination Committee under the Commercial Act
pursuant to Article 29 of the Commercial Act for nominating fair officer candidate. The director candidate that goes
through deliberation and resolution of the ‘Public Institution Steering Committee’ will be appointed by the Minister of
Planning and Finance through the resolution of the meeting of shareholders. However, for the case of appointing
senior director (vice president, head of planning and management division) other than the audit member, the
representative director shall personally appoint through the meeting of shareholders after the document and interview
screening through the open recruitment in accordance with Article 25 (2) of the same Act and Article 25 of the
Articles of Incorporation.
A) Officer Nomination Committee

The ‘Officer Nomination Committee’ is a non-permanent organization that, in the event that there is a need for newly
appointing an officer due to the cause of expiration of the term, it is organized through the resolution of the Board of
Directors, and the term of the Committee member and survival period of the Committee is up to the time of final
appointment by the nominating person of the officer candidate. In order to secure the independence of director
candidate nomination and senior course, the Officer Nomination Committee is comprised with the non-standing
director (3 persons) and external member (2 persons) appointed by the Board of Directors of corporate governance
following the 「Operation Regulation of the Officer Nomination Committee」. The 「Operation Regulation of
Officer Nomination Committee」 specifies in details on full capacity of Committee (determined by the resolution of
the Board of Directors within the scope of 5~15 persons), structuring method (organized by a number of external
members appointed by the Board of Directors is /3 or more of full number of members, and less than 1/2), Following
such regulations, refer to the committees within the Board of Directors’ for the contents of the activities in the Officer
Nomination Committee.
B) Providing information on the director candidate before the meeting of shareholders

In the event that the agenda to appoint directors to the meeting of shareholders is included, pursuant to minority
shareholder 363, Article 542-4 and Article 542-5 of the 「Commercial Act」, the name, record, person of nomination,
relationship with largest shareholder, contents of transaction between the Company and candidate and others of the
director candidate are provided through the electronic disclosure at least two weeks in advance to the meeting date in a
way of providing the time for sufficient review to shareholders. The contents of providing information on such a
director candidate are shown as follows.
<Contents of provided information on the director candidate at the time of meeting of shareholders (2019 ~ as of the
decision-making document submittal date)>
Date of information Date of meeting of director candidate Contents of disclosure information provided
provision shareholders Classification Name
2020.3.09. Audit member 1. Detailed career and specialized field of the candidate
(21 days prior to the (external) - Associate professor of Gyeonggi National Univ.
meeting of 2020.3.30. Kim Joo-il 2.Cause of nominating candidate
shareholders) -Appointment from vacated audit member
3.Contents of confirming independence (interest relations): No problem
4.Status of concurrent position: Not applicable
2019.3.13. Senior Director Kim Yong-beom 1.Detailed career and specialized field of the candidate
(15 days prior to the (In-company) -Korea Credit Information Auditor/Standing Audit Member
meeting of 2019.3.28. 2.Cause of nominating candidate
shareholders) - Appointment from vacated standing audit member (In-company director)
Senior Director 1.Detailed career and specialized field of the candidate
(In-company) -Deputy governor of Gangwon-do
Song Seok-du 2.Cause of nominating candidate
- Appointment from vacated standing audit member (In-company director)
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Date of information Date of meeting of Director candidate Contents of disclosure information provided
provision shareholders Classification Name
Non-standing Ko Jin-beop 1.Detailed career and specialized field of the candidate
director (External) -President of Radio Star Social Cooperative Union
2.Cause of nominating candidate
- Appointment from vacated non-standing director
Non-standing Jang Kyung-jae 1.Detailed career and specialized field of the candidate
director (External) -CEO of Goods Peach
2019.03.13. 2.Cause of nominating candidate
(15 days prior to the 2019.3.28. - Appointment from vacated non-standing director
meeting of 3.Contents of confirming independence (interest relations): No problem
shareholders) 4.Status of concurrent position: Not applicable
1.Detailed career and specialized field of the candidate
-Planning Division of Dogye Mine Office, Korea Coal Corporation
Non-standing Kim Hwa-yoon 2.Cause of nominating candidate
director (external) - Appointment from vacated non-standing director
1.Detailed career and specialized field of the candidate
Non-standing -External director of Black Valley CC
director (external) Jung Gwang- 2.Cause of nominating candidate
soo - Appointment from vacated non-standing director
※Refer to the record of director candidate through the <Notice of Convening of meeting of shareholders> disclosure
C) Providing contents of past Board of Directors activities by the director candidate for re-
appointment
The contents of past Board of Directors activities for the director candidate to be re-appointed are not separately
provided, but the activity contents are disclosed through regular report disclosure, homepage of the Company and
Public Management Information Disclosure System (Alio). In the event that there is any director candidate to be re-
appointed, the contents of the past Board of Directors activities of the applicable candidate are scheduled to provide
through the disclosure of <notice to convene the meeting of shareholders>, <reference document> and so forth.
D) Effort for reflecting the opinions of minority shareholders, such as intense voting system etc.
The Company does not exclude the intense voting system in the Articles of Incorporation that, when a shareholder that
holds 1% of total outstanding stocks with voting right requests the convening of the meeting of shareholders with the
purpose of 2 or more directors to be appointed, the intense voting system can be adopted. In the event that the meeting
of shareholders is held including the agenda on director Senior, the information related to the applicable candidate
shall be delivered at least 2 weeks prior to the date of the meeting of shareholders to provide sufficient time for
discussion. In addition, in the event that there is a proposal of shareholder based on Article 363-2 of the Commercial
Act, the qualification and legitimacy of the applicable shareholder and contents of proposal shall be reviewed and sets
it as a matter purported by the meeting of shareholders. In the meantime, the Company makes effort to sufficiently
reflect the opinions of the systems by building up the environment for systems to freely speak in the meeting
4) Exclusion of appointing officer for any person having the cause of disqualification
(Detailed principle 4-④) No person who is responsible to damage corporate value or interference with the rights of
decision makings shall be appointed as an officer.
The officers of the Company as of the decision-making document submittal date shall be 4 standing directors (in-
company directors) and 9 non-standing directors (external directors and other non-executive directors) and there is no
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non-registered officer. Detailed status of officer is shown as follows.

<Status of officers as of report submittal date>
Name Gender Position Registered officer Full-time Work in charge
Moon Tae-gon M Standing Director (In-company Director) Registered officer standing General management
Song Seok-du M Standing Director (In-company Director) Registered officer standing General auditing
Han Hyung-min M Standing Director (In-company Director) Registered officer standing General management
Go Gwang-pil M Standing Director (In-company Director) Registered officer standing General management
Gwon Sun-rok M Non-standing Director (other Non-standing Director) Registered officer Non-standing Management advisory
Kim Joo-il M Non-standing Director (External Director) Registered officer Non-standing Management advisory, auditing
Choi Don-yong M Non-standing Director (External Director) Registered officer Non-standing Management advisory, auditing
Kim Jin-gak M Non-standing Director (External Director) Registered officer Non-standing Management advisory
Lee Moon-geun M Non-standing Director (External Director) Registered officer Non-standing Management advisory
Choi Kyung-sik M Non-standing Director (External Director) Registered officer Non-standing Management advisory
Lee Tae-hee M Non-standing Director (External Director) Registered officer Non-standing Management advisory
Jung Gwang-soo M Non-standing Director (External Director) Registered officer Non-standing Management advisory
Jang Kyung-jae M Non-standing Director (External Director) Registered officer Non-standing Management advisory
□ As a listed company and public institution, the Company does not appoint any person applicable to the public
employees with illegal activities under Article 13 of the 「Operation Regulation of the Officer Nomination
Committee」 and Article 34 of the Act on the Management of Public Institutions of the Company, in
addition to the cause of disqualification as the director of applicable company under Article 382 and Article
542-8 of the Commercial Act in order to prevent the appointment of any officer who is responsible for
damages to corporate value or interference with the rights of shareholders. In addition, after the senior, if an
officer, the status of maintaining the qualification requirement is thoroughly maintained, such as going
through the procedure of confirmation periodically regarding the breach of above-referenced laws and
regulations for disqualification.
□ In addition, in a way of not appointing any person receiving the adjudication for embezzlement or
misappropriation as an officer, when placing for open recruitment of officer candidate or inquiring for
nomination, the person without the cause under Article 33 of the State Public Officials Act is considered as
the subject of candidate, and the officer candidate selected thereafter will be determined again in the process
of deliberation and resolution under the Public Institution Steering Committee by the Ministry of Planning
and Finance.
□ Even after the Senior, in the event that a director of the Company is under investigation by investigation
agency due to embezzlement or misappropriation, the applicable process and result of the investigation
agency shall be notified to the Company to find out the current status pursuant to Article 53-2 of the 「Act
on the Management of Public Institutions」. There is no one receiving the adjudication for to embezzlement
or misappropriation in the past for officers of the Company.
□ As of the decision-making document submittal date, the Company does not operate the execution officer
system.
C. Responsibility of non-standing director (standing director)
(Key principle 5) Responsibilities of external director

An external director shall participate in the decisions of independently important corporate management policy and
supervise and support the top management as a constituent of the Board of Directors.
1) Relationship between the Company and Non-standing Director (External Director)

Detailed principle 5-①) An external director shall not have any material interest relationship with the
122
applicable company, and the Company shall confirm for any interest relationship at the appointment phase.
A) Experience of non-standing director with employment in the Company and any transaction with
the Company
The Company confirms on interest relations with the Company with respect to entire process of appointing officers. In
particular, for the case of the non-standing directors of corporate governance including the external directors, it shall
find out the employment or transaction with the Company or affiliated company of the Company in the past of the
candidate from the phase of registering the candidates, and in the event that there is any content, it shall be informed to
the meeting of shareholders by recording it on the notice of convening. Other than the 「Commercial Act」, there is
no separate procedure and internal regulation to check the above contents. As shown on the below table, the non-
standing directors of the Company have no material interests that may influence on the management decision making
of corporate governance in carrying out the duties.
<Experience of non-standing director with employment in the Company and any transaction as of the report submittal
date>
Contents of employment of the non-standing director Contents of transaction of the affiliated Contents of transaction of the affiliated
with an affiliated company of the Company in the past company of the Company with a non- company of the Company where the
Name standing director (or a company where non-standing director works as an
the non-standing director is the largest officer or employee
shareholder)
The Company Affiliated company The Company Affiliated company The Company Affiliated company
of the Company of the Company of the Company
Kim Joo-il None None None None None None
Choi Don-yong None None None None None None
Gwon Sun-rok None None None None None None
Kim Jin-gak Work for ’12~’14 as the irregular None None None None None
position (forestry expert)
Lee Moon-geun None None None None None None
Choi Kyung-sik Non-standing director for ’14~’17 None None None None None
Lee Tae-hee None None None None None None
Jung Gwang-soo None None None None None None
Jang Kyung-jae None None None None None None
B) Employment period for each non-standing director

There is no non-standing director in the Company that has experience in excess of 6 years (9 years including affiliated
companies) of employment period as follows
<Employment period for each non-standing director and loon-term employment as of the report submittal date>
Name THE COMPANY When including affiliated companies
Period of Working Cause if exceeding 6 years Period of Working Cause if exceeding 0 years
Kim Joo-il 2 years 5 months 2 years 5 months
Choi Don-yong 3 years 2 months 3 years 2 months
Gwon Sun-rok 2 years 5 months 2 years 5 months
Kim Jin-gak 2 years 5 months 2 years 5 months
Not applicable Not applicable
Lee Moon-geun 1 year 5 months 1 year 5 months
Choi Kyung-sik 1 year 5 months 1 year 5 months
Lee Tae-hee 1 year 5 months 1 year 5 months
Jung Gwang-soo 1 year 2 months 1 year 2 months
Jang Kyung-jae 1 year 2 months 1 year 2 months
2) Substantive work performance and support of the Company for the foregoing with respect to the
Non-standing Director (External Director)
123
2) Faithful performance of duties of Non-Executive Directors (Independent Directors) and support

from the Company
(Detailed principle 5-②)
Independent Directors shall perform their duties faithfully and with sufficient time and effort.
A) Status of Concurrent Position for Non-Executive Directors (Independent Directors)

The Company has no internal standard that specifies restrictions on concurrent positions in other companies for Non-
Executive Directors including Independent Directors, but it complies with the contents on restrictions for concurrent
positions for Independent Directors as defined by the Commercial Act. Article 542-8 (2) 7 of the Commercial Act
prohibits the appointment of a person determined by Presidential Decree, who has difficulty faithfully performing any
of his or her duties as an outside director, or who may have an influence on the management of the listed company,
and the above ‘person determined by the Presidential Decree is defined in Article 34 (5) 3 of the Enforcement Decree
of the Commercial Act as a person who currently works for at least two companies in addition to the listed company
as a director, executive officer, or auditor. Accordingly, Non-Executive Directors of the Company may serve as
directors of one company other than the Company. As shown in the table below, the Company’s Non-Executive
Directors perform their duties with sufficient time and effort under the conditions for faithful performance as a
director of the Company.
<Status of Concurrent Position of Non-Executive Director (Independent Director) as of the report submittal date>
Initial Senior Expiration Current position Status of concurrent position
Name date date Concurrent Concurrent Employment Listing for
institution works period of concurrent
concurrent institution
institution
Kim Joo-il Associate professor of Gyeonggi National Uni. - - - -
(Audit Member) Dec 21, 2017 Dec 20, 2020
Choi Don-yong - - - - -
(Audit Member) Mar 30, 2017 Mar 29, 2020
Kim Jin-gak President of National Unification Council in - - - -
Dec 21, 2017 Dec 20, 2020 Taebaek-si
Lee Moon-geun President of National Unification Advisory - - - -
Jan 3, 2019 Jan 2, 2021 Council in Taebaek-si
Choi Kyung-sik Chairman of 3.3 Memorial Association - - - -
Jan 3, 2019 Jan 2, 2021
Lee Tae-hee Non-Executive Director of 3.3 Memorial - - - -
Jan 3, 2019 Jan 2, 2021 Association
Jung Gwang-soo President of Dogye-eup Prosperity Association Black Valley Independent 2018.7.31.~ Not applicable
Apr 8, 2019 Apr 7, 2021 CC Director Present
Jang Kyung-jae . Representative of Good Speech Research Institute - - - -
Apr 8, 2019 Apr 7, 2021
The ‘current position’ is based on a full-time position of the Non-Executive Director, and the ‘concurrent position status’ is prepared on the basis of a part-time
position, and in the event that it is applicable not to the full-time position but to the part-time position only (the Company excluded), the duties of the part-time
position shall be prepared in the ‘current position’
(Detailed principle 5-③) The company shall provide sufficient information, resources etc. as required for the
performance of Independent Directors.
B) Support for performance of Non-Executive Directors (Independent Directors)

□ The Company makes enthusiastic administrative support and assigns three (3) members exclusively for the Board of
Directors in order to maximize the efficiency and specialization of duty performance of the Non-Executive Directors.
Before holding the Board of Directors’ meeting, the agenda shall be forwarded in advance so that Non-Executive
Directors can review the agenda with sufficient time, and if necessary, a face-to-face explanation is provided with
personal visit. To enhance the understanding of the company management, regular reporting on company status,
critical works, and status of press coverage is conducted twice a month, and Board of Directors’ agenda and other
124
inquiries have been reported separately. In addition, in accordance with Article 15 of the 「Articles of
Incorporation」, the Company provides all expenses required for work performance of the Non-Executive Directors.
□ In addition, the Company holds workshops twice a year to strengthen the solidarity of board members including
Non-Executive Directors and establishes the directions of the corporate business strategy by utilizing the expertise of
each director. For enhancing the reasonableness and efficiency of the BOD’s decision-making, the Company provides
opportunities for Non-Executive Directors to visit and inspect the business fields of the Company and holds meetings
for Non-Executive Directors with various reports as follows.
< Meetings held only for Non-Executive Directors from 2019 to the report submittal date>
Sequence Regular / Date of meeting No of attending Non-Executive Meeting information
directions of the corporate business strategy.
Temporary Director For enhancing the reasonableness and efficiency of decision making by
the Board of Directors, the non-standing/Nodirectors are given
of all Non-Executive the opportunity to visit and inspect the business fields of
Director
1
the Company, Temporary
and it holds the meetings 2/10
for non-standing directorsReporting the general
with various status of the Company and major issues for newly
reports.
Apr 17, 2019 appointed Non-Executive Director
2 Temporary 8/10 Reporting the status of regional projects and future plan
<Contents of hosting the meeting
Oct 29, 2019of only by non-standing directors from 2019 to the report submittal date>
3
Sequence Temporary Date of meeting
General No 10/10
of attending non-standing Field inspection
Meeting of regional projects and discussion on improvement
information
/ special Dec 26, 2019 director plan (machine manufacturing project and High Healing One)
/No of entire non-standing director
1 Temporary 2019.4.17. 2/10 Report of general status of the Company subject for newly appointed
non-standing director and main agenda
Female managers take up 23.6% of all management positions, while junior female managers account for
2 Temporary 2019.10.29. 8/10 Status of local projects and report of future plan
3
32.8% of junior management
Temporary 2019.12.26.
positions.
10/10
In addition, we have female managers in 27.2% of management
Field inspection of local-linked project and discussion on method to
positions in revenue-generating functions. improve (machine manufacturing project and High healing center)
D. Evaluation of non-standing director (standing director) Activities
(Key principle 6) Evaluation of the external director activities

In order to entice the enthusiastic duty performance of external directors, their activity contents shall be fairly
evaluated, and depending on the result, the remuneration payment and re-appointment shall be determined.
1) Evaluation of Non-standing Director (External Director)

(Detailed principle 6-①) The evaluation of an external director shall be made based on the individual performance and
the evaluation result shall be reflected only in the decision for re-appointment.
□ The non-standing director of the Company is evaluated for its duty performance pursuant to Article 36 of the「Act
on the Management of Public Institutions」. As a detailed evaluation category, there are participation record in the
Board of Directors, contents of Board of Directors activities (for audit members, add the record on audit activities),
and other activity records. For securing the fairness of evaluation, the evaluation of the non-standing directors are
carried out by the Minister of Planning and Finance (external evaluation), not a director or employee of the Company.
□ As a result of the evaluation, a non-standing director with low duty performance record may be dismissed through
the deliberation and resolution of the ‘Public Institution Steering Committee’ under the Ministry of Planning and
Finance or promote the Minister of Planning and Finance to dismiss following Article 36 of the same Act, and the
non-standing director that is dismissed by such a cause shall not be appointed as an officer of public companies
including the Company or an quasi-government institution for 3 years from the date of dismissal. In addition, the
evaluation result is reflected when determining for consecutive appointment of the term-expired non-standing director
by the Minister of Planning and Finance that is the person with the right to appoint or dismiss the non-standing
director pursuant to Article 28 of the Act on the Management of Public Institutions.
2) Setting the Remunerations of Non-standing Director (External Director)

(Detailed principle 6-②) The remuneration of an external director shall be determined at appropriate level by
considering the evaluation result, responsibilities of duty performance, risk and so forth.
□ The non-standing director remuneration policy of the Company is determined under the 「Guideline on
Management of Public Company and Quasi-Government Institution」 of the Ministry of Planning and Finance. The
allowance of the current non-standing director is set forth by the upper limit of KRW 30 million per year including the
attendance allowance of the monthly fixed amount and attending in meetings under the above guideline. The meeting
attendance allowance is the allowance paid when attending in duty related meetings for the non-standing director, and
Finance or promote the Minister of Planning and Finance to dismiss following Article 36 of the same Act, and the
non-standing director that is dismissed by such a cause shall not be appointed as an officer of public companies
including the Company or an quasi-government institution for 3 years from the date of dismissal. In addition, the
evaluation result is reflected when determining for consecutive appointment of the term-expired non-standing director
by the Minister of Planning and Finance that is the person with the right to appoint or dismiss the non-standing
125
director pursuant to Article 28 of the Act on the Management of Public Institutions.
2) Setting the Remunerations of Non-standing Director (External Director)

(Detailed principle 6-②) The remuneration of an external director shall be determined at appropriate level by
considering the evaluation result, responsibilities of duty performance, risk and so forth.
□ The non-standing director remuneration policy of the Company is determined under the 「Guideline on
Management of Public Company and Quasi-Government Institution」 of the Ministry of Planning and Finance. The
allowance of the current non-standing director is set forth by the upper limit of KRW 30 million per year including the
attendance allowance of the monthly fixed amount and attending in meetings under the above guideline. The meeting
attendance allowance is the allowance paid when attending in duty related meetings for the non-standing director, and
it may be paid depending on attendance in meetings for each non-standing director. The Company does not grant the
stock options to the non-standing directors.
□ As recorded above, the remuneration of the non-standing director for the Company is determined and paid at
appropriate level under the Ministry of Planning and Finance Guideline, but the applicable guideline has no basis to
determine in consideration of the risk in duty performance as a result of evaluating the remuneration of the non-
standing directors that the Company does not reflect the contents related to the remuneration amount. When the
applicable guideline is revised in the future to enable the remuneration to set forth i5 the evaluation and risk of the
non-standing director to be applied the foregoing.
E. Operation of Board of Directors
(Key principle 7) Operation of Board of Directors

The Board of Directors shall be operated efficiently and reasonably to determine the best management intent with the
interests of the Company and shareholders.
1) Operation of Board of Directors’ regulation and contents of meeting

(Detailed principle 7-①) The Board of Directors shall be held regularly in principle and the operation of Board of
Directors’ regulation that is defined in details of authorities, responsibilities, operation procedure and the like of the
Board of Directors shall be prepared.
The Company specifies the authorities and responsibilities and contents related to operation procedure are operated by
specifying them to the 「Articles of Incorporation」 and 「Board of Directors Regulation」. Following Article 5 of
the 「Board of Directors Regulation」, the general Board of Directors is held at least once for each term, and in the
event that there is any need for approval of irregular Board of Directors or in the event that it is difficult to be adverse
to the schedule for the Board of Directors, the special Board of Directors is held from time to time. In the event that
the Board of Directors is held, pursuant to Article 6 of the 「Board of Directors Regulation」, the agenda of the
Board of Directors is notified to each director at least 7 days prior to the meeting date. However, when there is
unanimous consent of the directors, the agenda may be presented on the day of holding the meeting. The contents of
holding the board meetings to the recent time are shown as follows.
<Contents of hosting the Board of Directors (2019 ~ as of the decision-making document submittal date)>
Sequence Agenda Adoption /special Date of Agenda notice Attending
Classificatio Contents hosting date /full
n members
Matters to Partial revision of position system regulation (proposed) Adopted
resolve Approval of transfer for public equity shares of Kangwon Land Co., Adopted
Ltd. (Proposed)
High-One project plan (Proposed) Adopted
164th Special 2019.2.15. 2019.2.7. 12/13
2019 accounting year budget operation plan (Proposed) Adopted
Revision of Position System Maintenance Related Regulation Adopted
(Proposed)
Support for contribution on Jeongseon-gun Urban Revitalization Adopted
Support Center (Proposed)
Matters to Report of result for M&A after permitting Donggang Sista Co., Ltd. Report
report Report of result for 2018 annual audit Report
Revision of Position System Maintenance Related Regulation Adopted
(Proposed)
Support for contribution on Jeongseon-gun Urban Revitalization Adopted
Support Center (Proposed)
Matters to Report of result for M&A after permitting Donggang Sista Co., Ltd. Report
report Report
Kangwon Land Sustainability 2019
Report of result for 2018 annual audit Report
126
Sequence Agenda Adoption General Date of Agenda notice Attending

Classificatio Contents /special hosting date /full members
n
Convening of the 21st general meeting of shareholders (Proposed) Adopted
Planning for director appointment (Proposed) Adopted
Determination of limit for remuneration of 2019 non-standing Adopted
Matters to director remuneration (Proposed)

resolve Determination of limit for remuneration of 2019 for senior director Adopted
remuneration (Proposed)
Revision of officer remuneration regulation (Proposed) Adopted
Partial modification of the 「Articles of Incorporation」 Adopted
(Proposed)
165th General 2019.3.8. 2019.2.28. 13/13
Approval of 2018 fiscal year with financial statements and Adopted
consolidated financial statements, and business report (Proposed)
Matters to Report of 2019 fund operation plan Report
report Report of independence on external auditor following the Report
accounting audit standard
Report of status for AML works Report
Report of audit result for AML works Report
Report of operation status of internal accounting management Report
system
Report of operation status evaluation of internal accounting Report
management system
Report of operation status for 2018 compliance supporter system Report
Report of hoe retired implementation (Proposed) Report
Matters to Sponsorship for Gangwon-do pro soccer team in 2019 (Proposed) Adopted
resolve Plan to move Singapore Office (Proposed) Adopted
Full revision of internal accounting management regulation Adopted
(Proposed)
Revision of personnel regulation (Proposed) Adopted
166th Temporary 2019.5.17. 2019.5.9. 13/14
Revision of position system regulation (Proposed) Adopted
Revision of operation regulation of Officer Nomination Committee Adopted
(Proposed)
Approval of transfer for public equity for Kangwon Land Co., Ltd. Adopted
(Proposed)
Matters to Report of audit result and action taken for the Ministry of Industry, Report
report Commerce, Resource
Report of audit result and action taken for Board of Audit and Report
Inspection

Classificatio Contents /special hosting date /full
n members
Matters to Mid- to long-term finance management plan for 2019~2023 Adopted
resolve (Proposed)
167th Promotion of phase-2 project for Coal Culture Park (Proposed) Adopted Regular 2019.6.24. 2019.6.14. 14/14
Basic plan for Kangwon Land safety in 2019 (Proposed) Adopted
Matters to Revision of employment rules (Proposed) Report
report
Matters to Contribute the in-company labor welfare fund in 2019 (Proposed) Adopted
resolve Promotion of repairing and reinforcement of High One Square Adopted
168th parking lot and added and corrected for facility investment Temporary 2019.8.26. 2019.8.16. 14/14
(Proposed)
Convening the 22nd special meeting of shareholders (Proposed) Postponed
Matters to Convening the 22nd special meeting of shareholders (Proposed) Postponed
resolve Revision of the wage and collective agreement related regulation Adopted
169th (Proposed) Regular 2019.9.25. 2019.9.17. 14/14
Matters to Report of result for 2019 wage and collective agreement Report
report Report of main modified matters with the 2019~2023 mid- to long- Report
term finance management plan (Proposed)
(Proposed)
(Proposed)
Matters to Report of audit result and action taken for the Ministry of Industry, Report
report Commerce, Resource
Report of audit result and action taken for Board of Audit and Report
Inspection 127

n members
Matters to Mid- to long-term finance management plan for 2019~2023 Adopted
resolve (Proposed)
167th Promotion of phase-2 project for Coal Culture Park (Proposed) Adopted Regular 2019.6.24. 2019.6.14. 14/14
Basic plan for Kangwon Land safety in 2019 (Proposed) Adopted
Matters to Revision of employment rules (Proposed) Report
report
Matters to Contribute the in-company labor welfare fund in 2019 (Proposed) Adopted
resolve Promotion of repairing and reinforcement of High One Square Adopted
168th parking lot and added and corrected for facility investment Temporary 2019.8.26. 2019.8.16. 14/14
(Proposed)
Convening the 22nd special meeting of shareholders (Proposed) Postponed
Matters to Convening the 22nd special meeting of shareholders (Proposed) Postponed
resolve Revision of the wage and collective agreement related regulation Adopted
169th (Proposed) Regular 2019.9.25. 2019.9.17. 14/14
Matters to Report of result for 2019 wage and collective agreement Report
report Report of main modified matters with the 2019~2023 mid- to long- Report
term finance management plan (Proposed)
Matters to Mid- to long-term management target for Kangwon Land Adopted
resolve 2020∼2024 (Proposed)
Plan for additional building project for Kangwon Land Co., Ltd. Adopted
dormitory and modification of project cost (Proposed)

Promotion of Youth start-up company to transfer to abandoned Adopted
170th mine area and additional correction of contribution (Proposed) Temporary 2019.10.29. 2019.10.21. 12/14
Sponsorship for Gangwon-do pro soccer team in 2019 (Proposed) Adopted
Purchase of national forest facility site within the project site Adopted
(Proposed)
Approval of transfer for public equity of Kangwon Land Co., Ltd. Adopted
(Proposed)
Matters to Report of matters pointed out from national audit and action taken Report
report in 2018
Report of revision process for operation system of High One Ice Report
Hockey Team
Matters to Established company converted for regular positions for Adopted
resolve cooperative companies (Proposed)
171th Revision of Audit Committee Regulation (Proposed) Adopted Temporary 2019.11.29. 2019.11.21. 13/14
New construction project of outside management unit of Kangwon Adopted
Land Co., Ltd. (Proposed)
(Proposed)

n members
Matters to Revision of the position system regulation and personnel regulation Adopted
172th resolve (Proposed) Regular 2019.12.26. 2019.12.18. 13/14
Full revision of investment business deliberation regulation Adopted
(Proposed)
2020 accounting year budget (Proposed) Adopted
Matters to 2020 accounting year budget operation plan (Proposed) Adopted
resolve Basic plan for 2020 Kangwon Land safety (Proposed) Adopted
173th Temporary 2020.1.29. 2019.1.21. 14/14
Revision of wage regulation and salary wage regulation Adopted
(Proposed)
Matters to Report of annual audit result in 2019 Report
report
Matters to Convening of the 22nd general meeting of shareholders (Proposed) Adopted
resolve Approval of 2019 financial accounting year with financial Adopted
statements, consolidated financial statements and business report
(Proposed)
Matters to Established company converted for regular positions for Adopted
resolve cooperative companies (Proposed)
171th Revision of Audit Committee Regulation (Proposed) Adopted Temporary 2019.11.29. 2019.11.21. 13/14
New construction project of outside management unit of Kangwon Adopted
Land Co., Ltd. (Proposed)
Approval
Kangwon Land Sustainability Report 2019 of transfer for public equity for Kangwon Land Co., Ltd. Adopted
(Proposed) 128

n members
Matters to Revision of the position system regulation and personnel regulation Adopted
172th resolve (Proposed) Regular 2019.12.26. 2019.12.18. 13/14
Full revision of investment business deliberation regulation Adopted
(Proposed)
2020 accounting year budget (Proposed) Adopted
Matters to 2020 accounting year budget operation plan (Proposed) Adopted
resolve Basic plan for 2020 Kangwon Land safety (Proposed) Adopted
173th Temporary 2020.1.29. 2019.1.21. 14/14
Revision of wage regulation and salary wage regulation Adopted
(Proposed)
Matters to Report of annual audit result in 2019 Report
report
Matters to Convening of the 22nd general meeting of shareholders (Proposed) Adopted
resolve Approval of 2019 financial accounting year with financial Adopted
statements, consolidated financial statements and business report
(Proposed)
Audit member appointment plan (Proposed) Adopted
Decision of limit for remuneration in 2020 non-standing director Adopted
(Proposed)
Decision of limit for remuneration in 2020 senior director Adopted
remuneration (Proposed)
Revision of officer remuneration regulation (Proposed) Adopted
174th Regular 2020.3.9. 2019.2.28. 12/14
Operation and organization of Officer Nomination Committee Adopted
(Proposed)
Promotion of Taebaek region elderly care business (Proposed) Adopted
Support of contribution for 2020 abandoned mine area with 3 local Adopted
governments with recuperating support center (Proposed)
Support of contribution for 2020 Jeongseon-gun urban recycling Adopted
resource center (Proposed)
Establishment of the Philippines liaison office (Proposed) Adopted
Closure of Singapore Branch (Proposed) Adopted
Matters to Report of fund operation plan in 2020 Report
report Report of status for AML affairs Report
Report of audit result of AML works Report
Report of operation status for internal accounting management Report
system
Report of operation status evaluation for internal accounting Report

management system
Matters to Project for high level water purification facilities in High One Adopted
175th resolve Resort (Proposed) Temporary 2020.5.18. 2020.5.8. 13/13
Plan to introduce the electronic table in 2020 (Proposed) Adopted
2) Preparation of the minutes for the Board of Directors and disclosure of the activity 내역
(Detailed principle 7-②) The Board of Directors shall be prepared the minutes in details for each meeting and the
attendance rate of the Board of Directors for each director and the contents on activities for consent regarding the
agenda shall be disclosed.
□ Pursuant to Article 391-3 of the 「Commercial Act」 and Article 35 of the 「Articles of Incorporation」 of the
Company, the Company records the process of meeting, result, dissenting directors and reason for dissent for each
board meeting and prepare the minutes signed or affixed with the seal by attending directors and auditor. The prepared
minutes book is not only displayed in the head office but also is available to access through the Public Management
Information Disclosure System (Alio) of the Ministry of Planning and Finance.
□ Main discussion contents and matters to resolve are prepared by included in the minutes for each director, and the
result (consent or dissent는 is disclosed through quarterly/semi-annually/ business report. The contents of individual
director for the Board of Directors and rate of consent for agent are shown as follows.
Company, the Company records the process of meeting, result, dissenting directors and reason for dissent for each
board meeting and prepare the minutes signed or affixed with the seal by attending directors and auditor. The prepared
minutes book is not only displayed in the head office but also is available to access through the Public Management
Information Disclosure System (Alio) of the Ministry of Planning and Finance.
□ Main discussion contents and matters to resolve are prepared by included in the minutes for each director, and the
result (consent or dissent는 is disclosed through quarterly/semi-annually/ business report. The contents of individual 129
director for the Board of Directors and rate of consent for agent are shown as follows.
<Contents of attendance at the Board of Directors for each director (2019 ~ as of the decision-making document
submittal date)>
Classification Sequence 164th 165th 166th 167th 168th 169th Remark
Date of hosting ’19.2.15. ’19.3.8. ’19.5.17. ’19.6.24. ’19.8.26. ’19.9.25.
Resident (In- Moon Tae-gon Attended Attended Attended Attended Attended Attended -
company) Song Seok-du Not applicable Not applicable Attended Attended Attended Attended 166th
Han Hyung-min Attended Attended Attended Attended Attended Attended -
Go Gwang-pil Attended Attended Attended Attended Attended Attended -
Non-standing Gwon Sun-rok Attended Attended Attended Attended Attended Attended -
(non-executive)
Kim Sang-il Not attending Attended Not applicable Not applicable Not applicable Not applicable 166th
Retired
Han Seung-ho Attended Attended Not applicable Not applicable Not applicable Not applicable 166th Retired
Han In-goo Attended Attended Attended Attended Attended Attended 174th Resigned
Choi Don-yong Attended Attended Attended Attended Attended Attended -
Non-resident
(External) Kim Joo-il Attended Attended Attended Attended Attended Attended -
Kim Jin-gak Attended Attended Not attending Attended Attended Attended -
Lee Moon-geun Attended Attended Attended Attended Attended Attended -
Lee Tae-hee Attended Attended Attended Attended Attended Attended -
Choi Kyung-sik Attended Attended Attended Attended Attended Attended -
Jung Gwang-soo Not applicable Not applicable Attended Attended Attended Attended 166th
Appointed
Jang Kyung-jae Not applicable Not applicable Attended Attended Attended Attended 166th
Appointed
< Contents of attendance at the Board of Directors for each director (2019 ~ as of the decision-making document
submittal date) >
Classification Sequence 170th 171th 172th 173th 174th 175th Remark
Date of holding ’19.10.29. ’19.11.29. ’19.12.26. ’20.1.29. ’20.3.9. ’20.5.18.
Resident (In- Moon Tae-gon Attended Attended Attended Attended Attended Attended -
company) Song Seok-du Attended Attended Not attending Attended Attended Attended 166th
Appointed
Han Hyung-min Attended Attended Attended Attended Attended Attended -

Go Gwang-pil Attended Attended Attended Attended Attended Attended -
Non-standing Gwon Sun-rok Not attending Attended Attended Attended Attended Attended -
(non-executive)
Kim Sang-il Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable 166th
Retired
Han Seung-ho Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable 166th
Retired
Han In-goo Attended Attended Attended Attended Attended Not applicable 174th
Non-resident Resigned
(External) Choi Don-yong Attended Not attending Attended Attended Not attending Attended -
Kim Joo-il Attended Attended Attended Attended Attended Attended -
Kim Jin-gak Attended Attended Attended Attended Attended Attended -
Jung Gwang-soo Attended Not attending Attended Attended Not attending Attended 166th
Appointed
Jang Kyung-jae Attended Attended Attended Attended Attended Attended 166th
Appointed
<Rate of attendance in board meetings and rate of consent for each director in the past 3 business
years (Jan. 1, 2017 ~ Dec. 31, 2019)>
Name Classification Period of serving Attendance rate (%) Consent rate (%)
Board of Directors Work Recent 3 years Work Recent 3 years
average 2019 2018 2017 average 2019 2018 2017
Moon Tae-gon Senior Director 2017.12.21.~ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Jung Gwang-soo Attended Not attending Attended Attended Not attending Attended 166th
Appointed
Jang Kyung-jae Attended Attended Attended Attended Attended Attended 166th
Appointed
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<Rate of attendance in board meetings and rate of consent for each director in the past 3 business
years (Jan. 1, 2017 ~ Dec. 31, 2019)>
Board of Directors Work Recent 3 years Work Recent 3 years
average 2019 2018 2017 average 2019 2018 2017
Moon Tae-gon Senior Director 2017.12.21.~ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
(In-company) present
Song Seok-du Senior Director 2019.4.8.~ 86.0 86.0 - - 100.0 100.0 - -
Han Hyung-min Senior Director 2017.12.21.~ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Go Gwang-pil Senior Director 2018.9.28.~ 100.0 100.0 100.0 - 100.0 100.0 100.0 -
Ham Seung-hee Senior Director 2014.11.13.~ 50.0 - - 50.0 100.0 - - 100.0
(In-company) 2017.11.12.
Kim Kyung-jung Senior Director 2014.11.13.~ 100.0 - - 100.0 100.0 - - 100.0
(In-company) 2017.11.12.
Board of Work Recent 3 years Work Recent 3 years
Directors average average
2019 2018 2017 2019 2018 2017
Oh Won-jong Non-standing director 2016.3.30.~ 66.7 - - 66.7 100.0 - - 100.0
(Executive) 2017.7.27.
Yoon Sung-bo Non-standing director 2016.3.30.~ 0.0 - - 0.0 - - - -
Shin Joo-ho Non-standing director 2017.3.30.~ 91.7 - 100.0 83.3 100.0 - 100.0 100.0
Gwon Sun-rok Non-standing director 2017.12.21.~ 93.0 89.0 90.0 100.0 100.0 100.0 100.0 100.0
(Executive) present
Yang Min-seok Non-standing director 2017.12.21.~ 100.0 - 100.0 100.0 100.0 - 100.0 100.0
Jeon Hyun-cheol Non-standing director 2014.3.28.~ 100.0 - - 100.0 100.0 - - 100.0
(External) 2017.3.27.
Kim Ho-beom Non-standing director 2014.3.28.~ 100.0 - - 100.0 100.0 - - 100.0
(External) 2017.3.27.
Kim Sang-il Non-standing director 2016.3.30.~ 80.0 50.0 90.0 100.0 93.6 83.3 97.6 100.0
(External) 2019.3.29.
Han Seung-ho Non-standing director 2016.3.30.~ 95.8 100.0 100.0 87.5 97.2 91.7 100.0 100.0
(External) 2019.3.29.
Han In-goo Non-standing director 2017.3.30.~ 94.4 100.0 100.0 83.3 100.0 100.0 100.0 100.0
(External) 2020.3.26.
Choi Don-yong Non-standing director 2017.3.30.~ 84.1 89.0 80.0 83.3 100.0 100.0 100.0 100.0
(External) present
Kim Joo-il Non-standing director 2017.12.21.~ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
(External) present
Kim Jin-gak Non-standing director 2017.12.21.~ 96.3 89.0 100.0 100.0 99.0 96.9 100.0 100.0
(External) present
Lee Yun-jae Non-standing director 2017.12.21.~ 66.7 - 33.3 100.0 100.0 - 100.0 100.0
(External) 2018.4.5.
Choi Kyung-sik Non-standing director 2019.1.3.~ 90.0 100.0 - 80.0 98.7 97.4 - 100.0
(External) present
Lee Moon-geun Non-standing director 2019.1.3.~ 100.0 100.0 - - 97.4 97.4 - -
(External) present
Lee Tae-hee Non-standing director 2019.1.3.~ 100.0 100.0 - - 97.4 97.4 - -
(External) present
Jung Gwang-soo Non-standing director 2019.4.8.~ 86.0 86.0 - - 100.0 100.0 - -
(External) present
Jang Kyung-jae Non-standing director 2019.4.8.~ 100.0 100.0 - - 100.0 100.0 - -
(External) present
※ For the case of work average for attendance rate and consent rate, it is calculated by dividing by the previous year after combining the ratio of each working year
※ For the case of attendance rate, it is calculated by the frequency of the Board of Directors attended in comparison to the attendance attended compared to the
frequency of the Board of Directors for the applicable year
※ For the case of consent rate, it is calculated on the basis of the consent ratio of the directors in comparison with the previous agenda of the applicable year, and
any agenda without the resolution procedure, such as consent or opposition from the entire agenda shall be excluded (Matters to report, agenda postponed, etc)
※ For the case of director reappointed in the applicable period (3 years), it is prepared by the period after the reappointment with the working period in the
Board of Directors
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F. Committees in the Board of Directors

(Key principle 8) Committees in the Board of Directors
The Board of Directors shall establish committees that carryout specific functions and roles within them for efficient
operation.
1) Status of committees in the Board of Directors and ratio of Non-standing Director (External
Director)
(Detailed principle 8-①) The committees within the Board of Directors shall be comprised of a majority of external
directors, but the Audit Committee and compensation (remuneration) Committee shall be comprised of all external
directors.
As the committees within the Board of Directors of the Company, there are the Audit Committee and Officer
Nomination Committee, and pursuant to Article 4 of the 「Audit Committee Regulation」 and Article 4 of the
「Operation Regulation of the Officer Nomination Committee」, the majority or more for each Committee consists of
non-standing directors. The Audit Committee is regulated to have 2/3 or more of the constituents and the Officer
Nomination Committee shall have 1/2 or more of the constituents with the non-standing directors. Refer to ‘B.
Organization of Board of Directors’ for the status of establishment for committees in the Board of Directors, main
roles and so forth.
2) English-version of the committees in the Board of Directors and report to the Board of Directors
(Detailed principle 8-②) With respect to organization, operation and authority for all committees, it shall be regulated
in English and the Committees shall report the resolutions to the Board of Directors.
The purpose of establishment of the as the committees within the Board of Directors of the Audit Committee and
Officer Nomination Committee, authorities and responsibilities, activities, composition and qualification and
appointment and dismissal are specified on the 「Audit Committee Regulation」 and「Operation Regulation of the
Officer Nomination Committee」. In addition, the Company evaluates the work performance record of are shown as
follows activities on the non-standing directors under Article 36 of the Act on the Management of Public Institutions.
Matters to resolve for each Committee and work performance record are reported to the Board of Directors under
Article 393-2 of the 「Commercial Act」 and Article 35-2 of the 「Articles of Incorporation」. The contents
related to the hosting of the Officer Nomination Committee are shown as follows. (Refer to ‘4. Audit Organization’
for the contents related to hosting of the Audit Committee)
<Contents of holding the Officer Nomination Committee (2019 ~ as of the report submittal date)>
Sequence Date of hosting Attendance Agenda Adoption
/full capacity Classification Contents
First Appointment of Commissioner Adopted
(2019) 2019.1.21. 4/5 Matters to Determination of recruitment method Adopted
resolve
Determination of deliberation standard Adopted
Determination of future promotion schedule Adopted
Sequence Date of hosting Attendance Agenda Agenda

/full capacity Classification Contents
Second Matters to Report of the 1st meeting and nomination reception Report
2019.1.30. 5/5 report
Matters to Determination of nomination subject through the document review Adopted
resolve Determination of future promotion schedule Adopted
First Appointment of Commissioner Adopted
(2020) 2020.3.18. 5/5 Matters to Determination of recruitment method Adopted
resolve
Determination of deliberation standard Adopted
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Second Matters to Report of the 1st meeting, open recruitment and nomination reception result Report
2020.4.10. 5/5 report
Determination of number of subject persons of interview Adopted
Matters to Determination of subject person of interview through the document review Adopted
resolve
Third Matters to Report of the 2nd meeting result Report
2020.4.17. 5/5 report
Matters to Determination of candidate nomination in multiple number Adopted
resolve Determination of nomination candidate through interview review Adopted
※ For the case of agenda that requires the determination, such as determination of the deliberation standard and others, it is prepared by the ‘Matters to
resolve’ and ‘Matters to report’ for other information and report
<Attendance rate for each director in the recent 3 business year>

Attendance rate (%)
Classif Name
Average for recent Recent 3 years
ication
3 years
2019 2018 2017
Non-standing director Member 1 75.0 50.0 75.0 100.0
Member 2 95.2 100.0 100.0 85.7
Member 3 100.0 - 100.0 100.0
Member 4 100.0 - - 100.0
Member 5 100.0 - - 100.0
Member 6 100.0 - - 100.0
Member 7 100.0 - - 100.0
※ Pursuant to Article 9 of the 「Official Information Disclosure Act」 and Article 41 (5) of the 「Public Management Information Disclosure System」 for
the Ministry of Planning and Finance, the list of the officer nomination committee member shall not be disclosed
※ From the members of the Officer Nomination Committee, the attendance rate of external members, not the director of the Company, shall be excluded
□ Refer to the ‘4. Audit Organization’ for the contents of the Audit Committee as one of the committees within the
Board of Directors.
□ Currently, the Company does not separately operate Risk Management Committee and Internal Transaction
Committee.
Audit Organization
A. Internal Audit Organization
(Key principle 9) Internal Audit Organization

The Internal Audit Organization of the Audit Committee, audit and others shall duly carry out the audit affairs under
the independent position from the top management and controlling shareholders and the contents of main activities of
the Internal Audit Organization shall be disclosed.
1) Organization and operation of the Audit Committee

(Detailed principle 9-①) The Audit Committee, audit and other internal audit organization shall secure the
independence and specialization.
A) Organization of the Audit Committee and member appointment policy
□ The Audit Committee of the Company established in accordance with Article 415-2 and Article 542-11 of the
「Commercial Act」 and Article 30 of the 「Articles of Incorporation」 shall define the duties, authorities,
composition and others of each committee pursuant to pertinent laws and regulations as well as the 「Articles of
133
Incorporation」 on the Audit Committee Regulation, and it carries out the works as the Internal Audit Organization
that is independent from the top management.
□ Following Article 4 of the 「Audit Committee Regulation」 and Article 415-2 of the 「Commercial Act」, the
Audit Committee shall be comprised with 3 or more directors, but 2/3 or more of total members shall be organized
with the non-standing directors, and at least 1 member shall be appointed by the accounting or finance specialist.
□ Following Article 26 of the 「Articles of Incorporation」, the appointment of standing audit members (in-company
directors) is nominated by the ‘Officer Nomination Committee’ in multiple numbers to have the President appoint
them with the second motion by the Minister of Planning and Finance through the deliberation and resolution of the
Public Institution Steering Committee under the Ministry of Planning and Finance and the resolution of the meeting of
shareholders. The appointment of non-standing audit members (external directors) is nominated by the ‘Officer
Nomination Committee’ in multiple numbers to have the Minister of Planning and Finance appoint them through the
deliberation and resolution of the Public Institution Steering Committee under the Ministry of Planning and Finance
and the resolution of the meeting of shareholders.
□ Currently, the Audit Committee is organized by two non-standing directors and 1 senior director, and 2 of them
(Director Choi Don-yong and Director Kim Joo-il) are accounting and finance specialists, respectively following
Article 37 (2) of the Enforcement Decree of the 「Commercial Act」. Standing audit members are the heads of 3
organizations from cities and provinces (deputy administrative governors) and have the specialization to duly carry out
the roles of supervision on legitimate and reasonable processing of works by top management on the basis of
experience to manage the Audit Committee.
□ The detailed status on organizing the Audit Committee is shown as follows.
<Status of organizing the Audit Committee as of the report submittal date>

Organization Experience and qualification related to audit works Remark
Title Classification Name
Chairman non-standing director Choi Don-yong CPA (acquired in 1995) Accounting
(External director) - Accounting Firms of Anjin/Anjeong/Samjeong (1992~1999) specialist
Team Manager of Planning Audit Team, Office of Planning and Control, Tongil Group
(Assistant Executive Director, 2007)
Director of Office of Management Planning, Boyeong Medians Co., Ltd. (Executive
Director, 2016)
Member Senior Director (In- - Deputy Governor of Chungcheonnam-do (2013~2016)
company director) Song Seok-du - Deputy Mayor of Daejeon Metropolitan City (2016~2017) -
- Deputy Governor of Gangwon-do (2017~2019)
Member Non-standing PhD in Management (Financial Management), Gyeonggi National Univ. (2011) Finance
director (External - Professor, Inha Univ. (2009~2011) specialist
director) Kim Joo-il Finance Executive, Infinite Investment Advisory Co., Ltd. (2009~2012)
- UP Capital Co., Ltd, External Director (2012~2014)
Associate Prof. of Gyeonggi National Uni. (2011~)
※Kim Joo-il, Non-resident Audit Member (External director), was appointed as an audit member in the 22nd meeting of shareholders (2020. 3. 30)
B) Operation of the Audit Committee

(1) Operation regulation
The Audit Committee of the Company shall supervise the work execution of the top management and directors for
making reasonable management decision and directors with deliberation and resolution on matters delegated by audit
and Board of Directors for accounting and other works in accordance with the 「Audit Committee Regulation」,
「Audit Regulation」 and 「Detailed Rule for Audit Regulation and Implementation」. Detailed role of the Audit
Committee is set forth as follows under Article 30-2 of the 「Articles of Incorporation」 Article 3 and Article 10 of
the 「Audit Committee Regulation」.
<Duties and authorities of the Audit Committee>

① The Committee monitors the accounting and affairs of the Company and reports the result to the Board of
Directors.
134
② The Committee may request the report on business to the director or investigate the affairs of the Company
or property status at any time.
③ The Committee may investigate the agenda and documents to be submitted to the meeting of shareholders to
check if there are any unjust matters under the laws, regulations, or Articles of Incorporation or committed
any clearly unjustifiable action and present its opinion to the meeting of shareholders for the above matter.
④ The Committee may submit the Board of Directors with a written document that specifies the purpose of
meeting, ground of convening and others to make demand to convene the special meeting of shareholders
through the resolution of the Board of Directors.
⑤ In the event that there is a concern that a director has committed an act to irrevocably damage the Company
by committing any act in violation of laws, regulations or Articles of Incorporation, the Committee may
request to suspend such act for the Company.
⑥ When it is required to carry out the work, the Committee may request to report of business to its subsidiary
company, investment·chartered institution, re-investment·and re-capital institution.
⑦ The Committee shall process the matters delegated by the Board of Directors and matters set forth under the
Articles of Incorporation or laws other than Paragraph 1 through Paragraph 5.
<Matters of deliberation and resolution by the Audit Committee>

① Claim for convening the special meeting of shareholders and Board of Directors
② Result of survey on documents and agenda of meeting of shareholders
③ Report to the Articles of Incorporation on breaches by a director regarding laws, regulations or 「Articles of
Incorporation」
④ Representative of the Company for the case of conflict for the interest of director or interests of the Company
for litigation between the directors and the Company
⑤ In the event that a director is concerned of engaging in an act to violate laws, regulations or Articles of
Incorporation to inflict irreparable damage to the Company, the Committee may request to suspend the action
for the Company.
⑥ Preparing and submittal of audit report on financial statements to be submitted to the meeting of shareholders
⑦ Appointment of the Commissioner
⑧ Request of business report on director
⑨ Evaluation of appropriateness of devising and operation of internal control system in the fiscal year
⑩ Approval on appointing, modification and dismissal of external auditor
⑪ Opening and closure of instruction for audit related regulations
⑫ Consent on appointment and dismissal of head of audit dept.
⑬ Establishment of annual audit plan
⑭ Matters delegated from the Board of Directors
⑮ Matters acknowledged as required by the committee and matters set forth by other laws, regulations, ·「Articles of
Incorporation」 and others
□ In addition, the Company is a market-type public company that any matter on the standing audit member or audit
dept. for audit work performance is based on the pertinent laws and regulations, such as the 「Act on Public Sector
Audits」, 「Act on the Management of Public Institutions」, 「Public Management Information Disclosure System」
and others.
□ The Audit Committee holds the general committee meeting once each term and holds the special committee from
time to time as needed in accordance with Article 6 of the 「Audit Committee Regulation」.
□ The 「Audit Regulation」 and 「Detailed Rule for Audit Regulation and Implementation」 regulates the audit
organization to take the role of Audit Committee, procedure of audit works, audit activity expense of the auditor and
others. In addition, the organization of appropriate size, HR, and budget that are required for the effective performance
of the audit duties by the Company for the Standing audit member is reflected, and the standing audit member is
specified to request for required support to the Company. The 「Audit Regulation」 and 「Detailed Rule for Audit
135
Regulation and Implementation」 are revised through the approval of the Audit Committee.
□ Based on the authority of auditor as specified under Article 12 of the 「Audit Regulation」, the Audit Committee
and its support organization (office of auditor) may request for submitting all work related books on management, and
attendance/response of relevant person, and it shall retain the authority to demand the personal sanction for any
employee refusing the audit, submitting false data, or refusing to submit data without justifiable cause.
□ In addition, the head of audit subject dept. and relevant persons under Article 27 of the 「Audit Regulation」 shall
enthusiastically cooperate to flawlessly carry out the audit works, and by causing to be subject for aggravated
punishment in times of false statement in auditing, concealing data or refusal to submit data in a way of supporting the
Audit Committee for its authority to audit the management organization with independence. The Audit Committee of
the applicable company under such a stringent regulation may have the access to all management information, and
there has been no restriction in accessing to the management information to this point.
(2) Support for education and external advisory

The Company supports specialized education opportunity in various fields of government and private institutions,
independent education and others related to the audit in a way for an audit member to effectively carry out the audit
works, and implement education in finance, accounting and others for once or more a year for all audit members for
seeking of strengthening competency for the audit members. The status of education implemented in 2019 is shown as
follows and depending on the COVID-19 crisis situation, the Audit Committee education planned to be postponed and
implemented in the second half of 2020.
<Status of education implementation of the Audit Committee>

Date of education Time of Main body for education Attending Audit Member Main contents of education
education
2019.5.21. 1 hour Board of Audit and Inspection Song Seok-du Audit education
2019.5.24. 3 hours Korea Listed Companies Council Song Seok-du Audit education
2019.6.3. 20 hours Korea Internal Control Evaluation Song Seok-du Acquisition of certificate for audit education and
Center internal control evaluation
2019.6.3. 2 hours Insurance Training Center Choi Don-yong, Han In-goo, Song Anti-money laundering education
Seok-du
2019.6.27. 14 hours Audit Education Board Song Seok-du Audit education
2019.7.5. 6 hours Korea Public Institution Audit Song Seok-du Audit education
Association
2019.8.29. 1 hour E&Y Accounting Firm Choi Don-yong, Han In-goo, Song Accounting transparency enhancement plan
Seok-du
2019.8.30. 37 hours Seokang University Song Seok-du Internal audit specialized process
2019.10.20. 32 hours Korea Public Institution Audit Song Seok-du International Anti-corruption Academy (IACA)
Council
2019.12.23. 1 hour Accounting Firm Anjin Song Seok-du Internal accounting management system change
related
(3) Control on top management

□ The Audit Committee may implement the audit on accounting and corporate affairs in accordance with Article 30-2
of the 「Articles of Incorporation」, and following Article 3 of the 「Audit Committee Regulation」, in the event
that there is any concern of irreparable damage to the Company as it may request for report on the director at any time
or engage the director to commit any breach against the Articles of Incorporation, it is entitled to claim for suspension.
In addition, the Audit Committee may attend in the variety of management related meetings in addition to the Board
of Directors to undertake the role of check and balance in the decision making of the top management.
□ The Company shall follow the 「Act on the Management of Public Institutions」 as a public institution and it
works as a controlling device for the top management. It is specified on dismissal, damage compensation and its
136
procedure to the top management including representative director under Article 22 of the same Act (in the event
that there is a clear interference with the work performance as the head of institution by neglecting the duties or
committing any act against laws and regulations or Articles of Incorporation it goes through the resolution of the
Board of Directors to request the chairman or the pertinent agency to dismiss or propose to dismiss the head of
institution), Article 35 (2) (in the event that the obligations and responsibilities following Paragraph 1 and duties
following Article 32 are not carried out or neglected by non-standing directors and standing audit members, the
Minister of Planning and Finance may propose the dismissal to the person with right to dismiss or appoint or dismiss
the non-standing director or standing audit member through the deliberation and resolution of the steering committee,
and may request for the public company to claim the damage compensation), Article 35 (3) (in the event that the head
of institution or senior director fails to perform the duties following Article 32 and obligations and responsibilities
following Paragraph 1 or neglected the same, the chairman of the pertinent agency may dismiss the head of
institution or senior director or may propose or demand the person with the right to appoint or dismiss or head of
institution, , and may request for the public company to claim the damage compensation. However, in the event that
the head of institution of public company is dismissed or the dismissal is proposed to the person with the right to
appoint or dismiss, it shall go through the deliberation and resolution of the steering committee)
□ In 2019, following the audit work approval standard under Article 5-2 (2) of the 「Audit Regulation」, the
approved document of the representative director is specified to obtain the ordinary audit of the standing audit member
(revised in April 2019) to strengthen the check and balance function on the decisions of top management. In addition,
the audit management recommendation system linked with the e-audit system is systematized to manage the
management proposal of various fields with various meetings, and the management control index of standing audit
members is developed to periodically implement the independent measurement in facilitating the same to verify and
improve the effectiveness on the management proposal outcome.
(4) Establishment of independent internal audit dept.

The Company defines the detailed matters on the 「Audit Regulation」 with respect to duties, operation,
qualification, education, personnel, obligation, norm of ethical conduct, right, work procedure, Report and others for
the audit support organization. Accordingly, it operates the independent support organization (office of auditor, a total
of 28 persons as of the report submittal date) for diligent work support of the Audit Committee as follows.
감 사 Committee Audit Committee

감 사실 Office of Audit
기 획 audit 팀 Planning and Audit Team
경 영 audit 팀 Management Audit Team
청 렴 audit 팀 Integrity Audit Team
□ The support organization shall maintain the independence on its works as an auditor based on the 「Audit
Regulation」 and carry out the works in accordance with the ethical behavior norm, and comprised with the HR
equipped with the conforming qualification and specialization.
□ The support organization carries out the audit affairs, such as comprehensive audit, ordinary audit, special audit and
service audit in accordance with the annual audit plan acquired with the approval of the Audit Committee in the
beginning of the year based on the 「Audit Regulation」 and 「Detailed Rule for Audit Regulation and
Implementation」, and the result is reported periodically to the Audit Committee. In addition, the audit result is
reported to the Board of Directors for each year.
□ In addition, in order to secure the authority of independent internal audit department from the top management, the
137
personnel of internal audit dept. shall be carried out by the representative director following Article 9 of the 「Audit
Regulation」, and in the event that the request could not be followed, the cause shall be explained in writing.
(5) Remuneration policy for Audit Member

The remuneration of the non-standing audit member is paid for less than KRW 30 million pursuant to Article 5
(allowance of non-standing audit and non-standing director) of the 「Public Management Information Disclosure
System」, and there is no remuneration difference between a non-standing audit member and non-standing director.
However, when holding the Audit Committee for 4 times or more for each year, a separate allowance for deliberation
may be paid. The remuneration of standing audit member is paid for 80& or less of base salary for the head of
institution based on Article 4 (Adjustment of Base Salary) of the 「Public Management Information Disclosure
System」.
2) Activities of the Audit Committee

(Detailed principle 9-②) The Internal Audit Organization of the Audit Committee. Audit and others shall duly
perform the works related to audit, such as hosting the regular meetings, and provide the activity contents
transparently.
A) Meetings of the Audit Committee

The Audit Committee was held a total of 8 times in 2019 and twice in first term of 2020, and each time of holding, all
3 audit members attended in to discuss a total of 17 cases for matters to resolve and 54 cases for matters to report to
carry out the audit affairs diligently as follows.
<Contents of holding the Audit Committee meetings (2019 ~ as of the report submittal date)>
Sequence Meeting Attendance/ Agenda Adoption
date Full capacity Classification Contents
88th 2019.2.28. 3/3 Matters to resolve The 21st audit report (Proposed) Adopted
Matters to resolve Evaluation of operation status for 2018 internal accounting management Adopted
system (Proposed) Adopted
Matters to resolve
Consent on appointment of the head of audit dept. (Proposed) Report
Matters to report
Report of operation status for 2018 internal accounting management Report
Matters to report
system Report
Matters to report and the 21stt Financial Statements and business Report Report
Matters to report Report of audit result for the 21st external auditor on audit Report
Matters to report settlement Report of audit result on AML
(Anti-money Laundering)) operation status inspection
Report of audit result in 2016 for the case of sexual
harassment by a third party
Matters to report Matters to report Report of specific audit result related to the organization culture Report
Matters to report interfering act Report
Matters to report of condo team Report
TF to improve the audit activities on result report for Report
monetary lending cases between employees
Report of activity result
Report of operation result for 2018 clean citizen audit center
Matters to resolve Matters to Result of document survey and agenda for the 21st general meeting of Adopted
resolve Matters to report Matters shareholders (Proposed) Adopted
89th 2019.3.21. 3/3 to report Matters to report Matters Opinion of evaluation related to the status of Report
to report operating the internal monitoring devices (Proposed) Report
Report of audit result for the Ministry of Industry, Trade and Industry Report
Report of audit result for Board of Audit and Inspection Report
Report of specific audit result related to illegal instruction for personal
gain
Report of specific audit result for traffic accident involving death of
pedestrian
Matters to resolve Matters to Revision of detailed rule of implementing the audit regulation Adopted
90th 2019.4.30. 3/3 resolve Matters to report Matters (Proposed) Adopted
138
to report Matters to report Approval for full revision of internal accounting management regulation Report
(Proposed) Report
Report of specific audit result for the Ministry of Industry Report
Report of specific audit result for the Employee Ethics Code of Conduct
of ski gold team
Report of establishing 2019 audit education plan
Matters to resolve Matters to Establishment and revision of audit related regulation (Proposed) Adopted
91st 2019.7.15. 3/3 report Matters to report’= Report of result of comprehensive audit Report
Matters to report (Office of Planning and Control and Office of Management Strategy) Report
Matters to report Report of specific audit related to accidents in swimming pool Report
Report of specific audit related to the result of accused case disposition Report
Report of specific audit related to occupational harassment of employees
in golf course
Matters to report Matters to report Report of accounting result in the first half of 2019 Report
92nd 2019.8.29. 3/3 Matters to report Report of audit result on High One Chuchu Park consulting Report
Report of specific audit related to status of employee capability Report
development education
Matters to resolve Matters to Establishment of mid-to long-term audit strategy and modification of Adopted
93rd 2019.9.25. 3/3 report Matters to report Matters annual audit plan (Proposed) Report
to report Report of appointment of external accounting auditor Report
Matters to report Report of audit result related to the national and public bonds purchase Report
management status Report
Report of specific audit on human rights management status for
realizing social value
Establishment of mid-to long-term audit strategy and report of result for
internal audit quality evaluation service
Matters to resolve Matters to Revision of audit committee regulation, audit regulation, and detailed Adopted
report Matters to report Matters to rules of audit regulation implementation (Proposed) Report
94th 2019.11.2 3/3 report Matters to report Report of accounting audit in 3Q Report
1. Matters to report Report of comprehensive audit result Report
Report of specific audit on breaches of compliance obligation for Report
employment rules Report
Report of specific audit for cases of occupational harassment activities
Report of specific audit for inspecting the internal control strengthening
Matters to resolve Matters to Appointment of external auditor (Proposed) Adopted
95th 2019.12.1 3/3 resolve Matters to report Matters 2020 audit operation plan (Proposed) Adopted
2. to report Matters to report Report of comprehensive audit result Report
Report of specific audit for case of work related direct contact Report
Report of specific audit for inspecting the social value Report
Matters to resolve Matters to The 22nd audit report (Proposed) Adopted

resolve Matters to report Matters Evaluation of operation status of the 2019 internal accounting Adopted
96th 2020.3.4. 3/3 to report Matters to report Matters management system (Proposed) Report
to report Matters to report Report of operation status of the 2019 internal accounting management Report
system (Representative Director) Report
Report of the 22nd financial statements and business report Report
Report on audit result of the external auditor on the 22nd settlement Report
period
Report of fund operation plan in 2020
Report on audit education plan in 2020
Matters to report Matters to report Report of quality evaluation result of 2019 internal audit Report
Matters to report Matters to report Report of independence level of the Office of Auditor in 2019 Report
Matters to report Matters to report Report of operation result from 2019 clean citizen audit center Report
Matters to report Matters to report Report of specific audit for status of using the leave for fertility Report
Matters to report Matters to report Report of specific audit for violation of the Road Transport Act Report
Matters to report Matters to report Report of specific audit for inappropriate acts by employees Report
Report of specific audit for status of performing the matters pointed out Report
in audit Report
Report of specific audit for inspection to prevent idle management Report
Report of specific audit for matters pointed out by the inspection of Report
the National Forestry Service Report
Report of inspection result on operation status of AML (anti-money Report
laundering)
139
Report of specific audit for status of personal information management

Report of specific audit for violation of officer and employee ethics
code of conduct guideline and regulation
Matters to resolve Matters to Result of survey on agenda and documents of the 22nd general meeting Adopted
97th 2020.3.20. 3/3 resolve Matters to resolve Matters of shareholders (Proposed) Adopted
to report Opinion on evaluation on the operation status of internal audit device Adopted
Matters to report (Proposed) Report
Revision of operation instruction for auditor clarification system, for Report
active administrative exemption (Proposed)
Report of specific audit for the case of violating
the ‘Solicitation Prohibition Act’ by the person in charge of service
Report of specific audit for abusive act on junior employees (verbal
abuse)
Matters to resolve Matters to Revision of detailed rules on audit regulation and audit regulation Adopted
98th 2020.5.27. 3/3 report Matters to report Matters to implementation (Proposed) Report
report Matters to report Report of accounting audit in the 1Q of 2020 Report
Report of specific audit related to stealing of currency box for slot Report
machines Report
Report of specific audit related to the computer equipment purchase and
management status
Report of specific audit for employee
competency development education
lecturing
<Contents of attendance for each member of the Audit Committee>

Classificati Sequence 88th 89th 90th 91st 92nd 93rd 94th 95th 96th 97th 98th
on Date of 2019 2020
hosting 2.28. 3.21. 4.30. 7.15. 8.29. 9.25. 11.21. 12.12. 3.4. 3.20. 5.27.
non- Choi Don- Attended Attended Attended Attended Attended Attended Attended Attended Attended Attended Attended
standing yong
director Han In-goo Attended Attended Attended Attended Attended Attended Attended Attended Attended Attended Attended
(External) Kim Sang- Attended Attended Not Not Not Not Not Not Not Not Not applicable
il applicable applicable applicable applicable applicable applicable applicable applicable
Kim Joo-il Not Not Not Not Not Not Not Not Not Not Not applicable
applicable applicable applicable applicable applicable applicable applicable applicable applicable applicable
Senior
Director Song Seok- Not Not Attended Attended Attended Attended Attended Attended Attended Attended Attended
(In- du applicable applicable
company)
※ Han In-goo, non-standing audit member, resigned on Mar. 26, 2020 and ended its duties on Mar. 29, 2020
※ Kim Sang-il, non-standing audit member, ended its term on Mar. 29, 2019 and ended its duties on Apr. 7, 2019
※ Kim Joo-il, non-standing audit member, began its term as appointed by the 22nd meeting of shareholders (2020. 3. 30)
※ Song Seok-du, standing audit member, started its term from Apr. 6, 2019 (appointment date by the president) as appointed by the 21 st meeting of shareholders
(Mar. 28, 2019)
<
140
Attendance rate of the Audit Committee for each audit member in the recent 3 business years>
Attendance rate (%)
Classification Name Average of Recent 4 years
employment 2019 2018 2017
Non-standing director Park Su-hoon 100.0 - - 100.0
(External director) Jeon Hyun-cheol 94.7 - - 100.0
Kim Ho-beom 100.0 - - 100.0
Choi Don-yong 100.0 100.0 100.0 100.0
Han In-goo 100.0 100.0 100.0 100.0
Kim Sang-il 83.3 100.0 83.3 75.0
Senior Director Song Seok-du 100.0 100.0 - -
(In-company director)
B) Internal regulation on the audit procedure etc

□ Chapter 3 of the 「Audit Regulation」 defines the procedure of the audit work involving establishment of audit
plan, notice of audit implementation, measures on audit result, petition for appeal and so forth, and the implementation
method of the audit class and detailed procedure are set forth separately on the 「Detailed Rule for Audit Regulation
and Implementation」 and process the same with the forms. In addition, the audit result is required to disclose
through the homepage of the Company within 25 days after notifying the audit result in accordance with Article 21-2
of the same regulation, and through preparing the independent disclosure standard plan, the full context of the audit
report excluding the personal information is disclosed to comply with Article 26 of the 「Act on Public Sector Audits」
and 「Public Audit Standard」 of the Ministry of Planning and Finance.
□ The Audit Committee requires to prepare the minutes regarding Article 14 of the 「Audit Committee Regulation」,
and the minutes shall record the date and time of meeting, venue, attendees, agenda, speeches, meeting result with
opposing persons and reason for opposition as well as the signature or affixation of seal by attending members. In
addition, Article 21 of the same regulation and Article 24 of the 「Detailed Rule for Audit Regulation and
Implementation」 define the record and conservation of the minutes, and as a result of audit, the matters required for
measure and result of disposition are required to maintain the record.
□ In addition, pursuant to Article 10 (2) of the 「Audit Committee Regulation」, it reviews the survey result on the
agenda and document of meeting of shareholders and the agenda and document to be submitted breaches the Articles
of Incorporation or clearly unjust and it is reported to the meeting of shareholders, and following Article 8 of the
「Act on External Auditor of Stock Companies, Etc」, it evaluates the operation status of the internal accounting
management system and it reports to the Board of Directors at least 1 week prior to the general meeting of
shareholders with the evaluation report with signature or affixation of seal for entire Audit Committee members.
141
B. External Auditor
(Key principle 10) External Auditor

In order to enable the accounting information of a company is to gain the trust from the users, such as shareholders,
the external auditor shall perform its audit work fairly as in the independent position from the audit company, its top
management, and controlling shareholders.
1) Appointment and operation of the external auditor

(Detailed principle 10-①) The Internal Audit Organization shall prepare and operate the 는 policies for securing the
independence and specialization at the time of appoint external auditor.
□ As a listed company for its certificate of share, the Company it defines the standard and procedure on appointment
and dismissal of external auditor, securing of independence and exchange of opinion of the external auditor under
Chapter ` of the Audit Committee Regulation」 for appointing the external auditor secured with the independence
and specialization. Accordingly, The appointed external auditor of the Company is E&Y Accounting Firm and it is in
charge of external audit from business year in 2020 to business year in 2022. E&Y Accounting Firm has duly carried
out the audit works from business year of 2017 to business year of 2019 with reappointment, and it has high level of
understanding of the Company with investment in subordinate companies and relevant companies.
□ The Audit Committee held the audit Committee twice in order to appoint external auditor to carry out the audit
works from business year of 2020 to prepare the standard and procedure required for appointing the external auditor
under Article 10 of the 「Act on External Auditor of Stock Companies, Etc」, audit time following Article 13 of the
Enforcement Decree of the same Act, audit personnel, appropriateness of audit remuneration and audit plan,
independence of auditor, audit time etc. After receiving the proposal from a number of accounting firms regarding the
external audit works, comprehensive evaluation has been processed for securing level of understanding of the
Company, performance experience of similar fields, audit execution plan, specialized HR and operation plan, audit
quality assurance plan etc. As such, through the fair and transparent evaluation procedure following the pertinent laws
and regulations, E&Y Accounting Firm that received high assessment compared to other firms in the fields of level of
understanding, audit quality, guarantee plan, added service field and it has been appointed again as the external auditor
of 3 business years continued from business year in 2020 of the Company. In the future, following the revised 「Act
on External Auditor of Stock Companies, Etc」, it plans to implement the substantive evaluation on the audit
activities of the external auditor.
□ The Company has reviewed for all non-audit works for securing independence of the auditor pursuant to
Article 18 (Securing of Independence) of the 「Audit Committee Regulation」, and there is no non-audit
work contract executed between the external auditor (including E&Y Accounting Firm and its subsidiary
company) for business year in 2017 ~ business year 2019 and the Company along with the review of the audit
works and internal accounting management system. In addition, the prohibited works defined under Article
21 of the 「Certified Accountant Act」 place the effort for securing independence of the external auditor for
processing through other accounting firm, and pursuant to the 「Accounting and Audit Standard 260」, it is
communicated with the Company in writing for the Company regarding independence of the external auditor.
142
2) Communication with the external auditor

(Detailed principle 10-②) Internal Audit Organization shall be communicated periodically with the external auditor in
all stages, such as external audit implementation, report of audit result, etc
□ The Audit Committee and its support organization are reported for important accounting processing standards and
audit result pursuant to Article 10 (Resolution and Matters to Report) of the 「Audit Committee Regulation」, and it
is directly reported without the attendance of the top management from external auditor regarding review of
quarterly/semi-annual financial statements, internal accounting management system operation status review, annual
audit plan, schedule, and other important matters, and with respect to important issues, sufficient decision making is
made by processing the communication in various methods, such as e-mail, cable phone and others.
□ In 2019, the meetings participated by the top management attended without audit organization and external auditors
without the attendance of top management were held for four times to stipulate on matters to note critically on annual
audit plan, financial statements test, core audit system, internal accounting management system, accounting
transparency enhancement plan, and management in general, and the stipulation result is reflected on the internal audit
works if necessary. Furthermore, through e-mail and others, communication has been made on main matters for
sufficient communication of once or more for each term with the external auditor. During 2020, the Audit Committee
person to person meetings participated by the top management attended without audit organization and external
auditors without the attendance of top management will be held once a term, and it will continue through various
methods.
□ As an Audit Committee support organization, the audit office is reported for audit activity result from the external
auditor for each term, and it exchanges the opinions on matters related to various matters in diverse ways.
□ The Audit Committee is to have the report of the illegal activities on the job of the director from external auditor in
accordance with Article 10 (2) of the 「Audit Committee Regulation」, or fact of breaching laws and regulations and
Articles of Incorporation, or fact of violating the accounting processing standard of the Company.
□ The contents that the financial statements prior to audit (consolidated & separate) for the recent 3 years to the
external auditor are shown as follows.
Date of submittal Contents submitted external auditor

2020. 1. 28. Financial statements prior to audit (consolidated & separate) in 2019 (22nd Earnest & Young
term)
2019. 1. 25. Financial statements prior to audit (consolidated & separate) in 2018 (21st Earnest & Young
term)
2018. 1. 22. Financial statements prior to audit (consolidated & separate) in 2017 (20th Earnest & Young
term)
<Attachments>
1. Status of compliance with the core index for corporate governance structure
2. Articles of Incorporation of Kangwon Land Co., Ltd.
3. Kangwon Land Co., Ltd.’ Board of Directors regulation
4. Kangwon Land Co., Ltd. Audit Committee regulation
※All internal regulations of the Company, including the above-referenced regulations are available to access in the
homepage of the Company (https://kangwonland.high1.com) and Public Management Information Disclosure System
(Alio, http://www.alio.go.kr).
Attachment 1 Status of compliance with the core index for corporate governance structure
Classificatio Core index Compliance Detailed description on the compliance mark Remark
n ○ Ⅹ
① Implement convening notice at least 3 weeks prior to the meeting of shareholders Ⅹ Pursuant to Article 542-4 of the Commercial Act, the convening notice of the meeting of shareholders shall be implemented 15 days prior to the meeting date Refer to 7p
② Implement electronic voting * Ⅹ It has not been introduced up to now and introduction is considered in the future -
Shareholders
③ Holding the meeting of shareholders other than the concentration date * ○ Applicable for the 22nd general meeting of shareholders (2020.3.30) Refer to 7p
④ Notify shareholders for once or more a year with the dividend policy and dividend Ⅹ The dividend implementation plan is established in accordance with the applicable performance for each year and it is informed through the electronic disclosure for Refer to 11p
implementation plan each determining phase (Board of Directors and general meeting of shareholders). No separate dividend policy is announced
⑤ Preparation and operation of CEO succession policy (including policy to appoint in ○ Following the 「Act on the Management of Public Institutions」 and 「Operation Regulation of the Officer Nomination Committee」 of the Company, candidate, Refer to 17p
times of emergency) selection standard, education, evaluation and the like are implemented and the regular improvement and supplementation of the applicable regulations are made
⑥ Preparation and operation of internal control policy ○ Regulation, system and other policies are prepared and operated accordingly for each category for internal control, such as risk management, compliance Refer to 18p
management, internal accounting management, disclosure information management and so forth
⑦ Separate the chairman of the Board of Directors and representative director ○ Pursuant to Article 33 (5) of the 「Articles of Incorporation」, the chairman of the Board of Directors and representative director shall be separated Refer to 23p
Board of
⑧ Adopt intense voting system ** ○ The 「Articles of Incorporation」 does not exclude the intense voting system. Refer to 27p
directors
⑨ Establishment of policy for preventing the appointment of officer from a person A person without the cause of q6 pursuant to Article 34 of the 「Act on the Management of Public Institutions」, Article 33 of the 「State Public Officials Act」, Refer to 28p
responsible for damaging corporate value or infringing the rights of shareholders ○ and Article 13 of the 「Operation Regulation of the Officer Nomination Committee」 shall be selected as the officer candidate and the additional q6 is determined
in the candidate qualification deliberation process of the ‘Public Institution Steering Committee’
⑩ Non-existence of external director who has been serving for a long time in excess ○ There is no external director who has been serving for a long-term of 6 years or longer Refer to 30p
of 6 years
⑪ Providing education for once or more per year regarding the Internal Audit ○ Education related to finance, accounting and others subject for the Audit Committee has been implemented Refer to 46p
Organization **
⑫ Establishment of independent internal audit dept. (organization to support internal ○ Based on the 「audit regulation」, the internal audit department is established with the activities independent from the top management Refer to 47p
Audit audit works)
organization ⑬ Existence of specialist in accounting or finance for Internal Audit Organization ○ The Audit Committee (a total of 3 persons) has accounting specialist (1 person) and finance specialist (1 person) pursuant to the Enforcement Decree of the Refer to 44p
「Commercial Act」
⑭ Holding meetings with external auditor without the attendance of top management for ○ The Audit Committee is sufficiently communicating with the external auditor for at least once for each term without the top management in attendance Refer to 53p
once or more for each term by Internal Audit Organization
⑮ Whether the management related important information is prepared with the ○ The 「audit regulation」 defines the authority of the Audit Committee to have the access to all management information required and cooperation, obligation, and Refer to 46p
procedure to access by the Internal Audit Organization punishment of the subject of auditing
143
144
Membership of Association
Status of membership of associations
Korea Employers Federation Green Companies Association of Wonju Region
Ski Resort Business Association of Korea Samchok CCI
CONCERT Korea Judo Association
Korea Exchange Korea Golf Course Business Association
Korea MICE Association Gangwon Environmental Engineer Federation
Korea Casino Association Korea Listed Companies Association
National Council on Problem Gambling Korea Golf Course Business Association
Gangwondo Tourism Association SOE Integrity Society Council
The Institute of Internal Auditors Gangwon Private-Public Integrity Society Council
Gangwon Employers Federation
Awards
Award performances
Award institution Award name Year
Ministry of Trade, Industry and Energy, Grand Prize for safety and management in Korea Brand Hall of
Oct, 2019
Ministry of SMEs and Startups Fame.
Korea HRD Association Korea HRD Winner for Human Resources Development March, 2019
A prize by the Minister of Land, Transport, Maritime Affairs of 2019

Ministry of Land, Infrastructure and Transport Jun, 2019
Korea Urban Regeneration Symposium.
First prize for best examples of vitalization of the commercial alley

Ministry of the Interior and Safety Nov, 2019
areas
Korea Management Register (KMR) Global Standard Management Grand Prize in Social Contribution Oct, 2019
Cyber Security Excellence Awards by the Minister of Trade, Industry

Ministry of Trade, Industry and Energy Dec, 2019
and Energy
Ministry of Trade, Industry, and Energy the Model Agency of Information Security Audit Dec, 2019
Ministry of the Interior and Safety the Best Agency of Cyber Response Training Dec, 2019
Ministry of Trade, Industry and Energy the Best Prize in Cyber Security Contest Dec, 2019
Publication Date June 2020
Publisher Moon Tae-Gon
The Report is published by Kangwon Land, Inc.
Address 265, High1-gil Sabuk-eup,
Jeongseon-gun, Gangwon-do
Tel. 033.590.3266
Fax. 033.590.3260
E-mail. winjyjwin@high1.com
Website. www.kangwonland.com
This report has been printed in soybean oil

ink on FSCTM certified eco-friendly paper.

KL 2019sr Eng

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KANGWON LAND

Sustainability Report 2019

This report is assured by Korea Management Register (KMR), a third-party assurance

The cover has been designed as a paper art to

02 Introduction 16 Core Values & Issues

About this Report 02 1. Innovation for the Future 18

46 Sustainability Management 73 Appendices

Sustainability Management 48 Financial Performances 74

Kangwon Land drives innovation

Achieved the highest

Overview of Kangwon Land

General Information Business Performance

15,200 501.2 billion

Jun 1998 Sep. 2003 Sep. 2013

Sep. 2001 July. 2005

2001 2005 2015

Business Group Hotel & Condo Leisure & Activity

Corporate Audit Committee

CEO Corporate Audit Office

• Corporate Audit Team 1 (planning audit)

KLACC Safety & Security Office IT Security Center Surveillance Team

• Resort Security Team

Planning & Management Department Sales & Marketing Department

Mid- and Long-Term Business Strategy Portfolio

Core value Safety Mutual Growth Trust Innovation

Management Safety management Win-Win management Ethical management Innovation management

Management goals and strategies

Management goal Listed in the Dow Jones Sustainability Index (DJSI)

Comprehensive Contribution to mutual Responsible evaluation Integrity Evaluation:

Strategic goal Shared growth in Responsible and Sustainable innovation

Strategic tasks 1. Realizing a safe resort 4. Creating local jobs 7. Enhancing

• Pursuing mutual win-win with stakeholders such as regions / customers /

• Establishing a sustainable foundation to overcome environmental changes and

Prioritizing the safety of customers and workers

Pursuing joint development

decision making that

and social values

Managing a fair and

transparent public corporation

trusted by the people

Innovating the existing business

Business of Kangwon Land

Established in Dec 2019. Comprehensive building

High1 Operates a railroad-themed park resort that

Four Seasons Resort

Surrounded by scenic nature, High1 Resort is a

Status of Operating Facilities

Ski Golf Water World

With clean natural resources to satisfy the

Kangwon Land Casino: leading

Kangwon Land Casino offers a pleasant and

High1 Water World

Kangwon Land opened High1 Water World in July

While Korea’s major water parks provide a facility

High1 Water World has 16 different types of attractions

In particular, one of the outstanding features of

High1 Resort has been reborn as a resort equipped

Total floor area

6,640 people lifeguards / 122

18 Innovation for the Future

22 Customer Value Realization

26 Social Value Creation

42 Eco-friendly Resort Operation

• Pursuing mutual win-win with stakeholders such as regions / customers /

• Establishing a sustainable foundation to overcome environmental changes and

• ‌Flowers: a secret garden on the plateau

• ‌Ultimate resort where you can enjoy flowers,

• 2019 G2E Asia (Macau)

• Integrated customer DB • ‌Data analysis system

• ‌Social economy support • ‌Kangwon Land Social Volunteer

Strengthening the self-sufficiency • Booming of • Abandoned coal • Establishment of a • Problem-solving • Promoting