Lotte Chemical "Enhancing Competitiveness by Establishing a Company-wide ESG System"

Regarding Bio Business Expansion Rumors, "We Have Never Considered It"

CEO Kim Gyo-hyun is delivering a greeting at the 45th Annual General Meeting of Shareholders held on the 31st floor of Lotte World Tower in Jamsil, Seoul.

[Asia Economy Reporter Choi Dae-yeol] Kim Gyo-hyun, CEO of Lotte Chemical, stated on the 23rd, "We will establish a company-wide ESG (Environmental, Social, and Governance) operating system and discover new business opportunities to become a competitive company."

Prior to the shareholders' meeting held that day, CEO Kim conveyed this message to the shareholders in his greeting. Despite difficulties last year due to weak demand caused by COVID-19 and the NC fire accident at the Daesan plant, he reported that the company completed the merger with Lotte Advanced Materials to create synergy and finished accident recovery within the year.

At the shareholders' meeting, Hwang Jin-gu, who was appointed as the head of the Basic Materials Business of the company in last year's group personnel reshuffle, was appointed as a new inside director. Professor Nam Hye-jung from Dongguk University's Department of Accounting was appointed as a new outside director. Additionally, Lee Hoon-ki, Head of Management Innovation at Lotte Holdings, was newly appointed as a non-executive director. The Lotte Chemical board consists of 11 members in total, with committees for audit, transparent management, outside director candidate recommendation, and compensation established within the board.

Furthermore, a cash dividend of 3,600 KRW per common share was approved, totaling 123.4 billion KRW in dividends. To strengthen shareholder rights, electronic voting was introduced for the first time this time. Earlier last month, the company introduced the 'Green Promise 2030 Initiative' as part of its ESG management strategy to set the direction for eco-friendly business. The company aims to achieve 6 trillion KRW in eco-friendly business sales, expand recycled materials by 1 million tons, and pursue carbon-neutral growth without increasing carbon emissions by 2030.

Meanwhile, regarding reports by a media outlet about entering the bio business, the company responded to the Korea Exchange's inquiry disclosure request by stating, "Upon internal verification, we are not aware of the contents of the article and have not currently reviewed the matter."