Hanwha Exploring Next-Generation
Growth Engines
Implements its 10-year management strategy plan

Hanwha Business Group has launched its 10-year management strategy plan aimed at making preparations for the next decade by exploring new businesses and restructuring the existing business arenas.
Hanwha has designated this year as the first year of concentrating human resources management in the next decade. As a result, the conglomerate plans to strengthen core capabilities and secure key manpower, while exerting itself to maximize profits in the second half of this year.
As part of its efforts to cope with rapidly changing business conditions, Hanwha is putting more energy into streamlining the financial structure through restructuring the existing business lines and aggressively strengthening its presence in foreign markets. The conglomerate aims at posting 20.5 trillion won in the 2005 sales. The 10-year management strategy plan calls for, among others, preparing for the future, one decade later, - futuristic management focusing on exploring new business arenas and restructuring the existing ones.
Under the detailed long-term plan, each division will activate a task force designed to establish its separate long-term vision and build up new growth engines.
The explosive division will concentrate on maintaining a competitive upper hand for the time being. Later, it will consider diverse management strategies. Hanwha Corp./ explosive division, the mother company of Hanwha Group, was established in 1952. It has been growing steadily with Korea'ss economic development. After developing dynamite with its own technology in 1957, it has secured the position of a leading company in the chemical industry by overcoming numerous difficulties over the last 50 years.
The division plans to build up manufacturing lines for mass-producing dynamites by relocating parts of its facilities to China, while installing an explosive storage in the northern Gyeongi Province and relocating Donghae branch office as part of its efforts to rearrange regional centers.
The defense industry division is seeking to shift its focus from the conventional ammunition sector to the precision ammunition and guided weapons category. It produces high-quality products and raises its levels of competitiveness through continuous R&D while participating in the high-technology field of guided precision weapons. The division, having already established a guided weaponry facility and a guided weaponry research institute, is seeking to sign large-scale contracts on mass-producing major weapon systems.
Hanwha Chemical will continue to raise profits by restructuring business portfolio and streamlining management and financial structure. The company will decide on whether it would set up a polyvinyl chloride plant in China in the second half of this year. The planned plant in China is expected to solidify Hanwha Chemical's position as Korea's sole and large-scale company which churns out a vertical range of polyvinyl chloride upstream and downstream products. Hanwha Chemical's mainstay PVC products include EVA, PVC resins for high-voltage electric lines and high performance LLDPE. The company is focusing on expanding sales of high-value products and overseas markets as a means of addressing rapidly changing business environment. The company plans to raise the portion of electronics materials from 1 percent in 2004 to 35 percent in 2015 so as to cultivate the industrial field as a growth engine.
Hanwha has designated new promising industrial sectors it will explore during the next decade through consulting with the Nomura Economic Research Institute. The company is in a stage of commercializing ITO coating glass for organic light emitting diodes (OLED) and separator film on top of flexible copper clad laminate (FCCL), a sector the company has successfully entered. The company plans to funnel approximately 700 billion won into developing the new businesses by 2015 after conducting a feasibility study on them.
Celebrating the 60th anniversary of its founding, Korea Life Insurance (KLI) plans to make efforts to create new revenue sources and secure sustainable growth engines by establishing a network of insurance marketing in China and asset management in the United State and management know-how in Japan.
KLI is devoting itself to developing new products tailored to the needs of new clients, while aggressively entering the insurance product markets like corporate pensions, private medical insurance and comprehensive welfare consulting.
Hanwha Securities Co. will enhance customer satisfaction by linking the retailing with the bond business that is traditionally strong and the research sector that has improved recently.

Ethics based on honesty and trust

Hanwha has a proud tradition of trust and honor, and ethical practices are stressed as the basis for all business activity. Employees are given a Code of Conduct and Behavioral Guidelines to follow, and a system is followed to ensure accountability and transparency at all times.The Code of Conduct outlines the obligations and responsibilities toward customers, shareholders, employees, society and the nation. It also addresses issues regarding legal requirements, fairness in business transactions, and basic ethics required and expected of workers and management. The Code is the centerpiece of Hanwha? ethical management. Ethics are the basis for assessing business performance among Hanwha affiliates and ongoing training is conducted in business ethics.
The 21st century is known as the Environmental Age, and Hanwha has put an operational priority on protecting the environment. ECO ("Environmentally Clean Operations" 2000, which is an unprecedented environmental program in Korea, was launched by Hanwha in 1991. A decade later, the company announced the ECO-YHES (for "Yes, Health, the Environment & Safety" program, with the environment, safety and health management as the main themes. Environmental-friendliness is a key factor considered in every aspect of Hanwha's business, including technology, new product development, manufacturing, sales, logistics and end-of-life product disposal. Pollution prevention and the efficient use of energy are paramount at every Hanwha operation. The Hanwha Environment Research Center develops and supplies clean technology as well as environment-friendly products and services, in order to help preserve eco-systems while promoting economic development.
Hanwha has a proud tradition of trust and honor, and ethical practices are stressed as the basis for all business activity. Employees are given a Code of Conduct and Behavioral Guidelines to follow, and a system is followed to ensure accountability and transparency at all times. nw

Hanwha Group Chairman-CEO Kim Seung-youn