Risk Management
Risks Governance
YOUNG POONG’s head office Planning Team and the Production Planning Team at the Sukpo smelter designate responsible personnel to set management goals, proactively identify related risks and develop response measures. To ensure the company’s sustainability, we operate the Investment Review Committee, chaired by the CEO, on a monthly basis. Through this committee, we systematically identify and manage both financial and nonfinancial risk factors for each investment project. In addition, we hold a company-wide monthly management review meeting to share departmental risks and business issues, allowing us to identify and respond to risks through company-level oversight. We also operate regular meetings in key areas such as safety, integrated environment, energy saving, ESG, and new businesses, enabling us to respond promptly to changes in the business environment.
Risks Management Structure
YOUNG POONG operates a risk management system based on its companywide Risk and Opportunity Management Regulations to systematically manage enterprise risks and ensure sustainable management and growth. This system covers not only financial risks but also non-financial areas, and we assess risks and opportunities by reflecting stakeholder needs and expectations when setting management goals, thereby supporting the achievement of our business objectives through corrective measures. The scope of risk management is categorized into areas such as legal, economic, cultural, technological, and systemic risks, and is reviewed at least once a year on a regular basis. Each risk is classified as low, middle, or high based on its likelihood and impact, and appropriate response strategies are established according to the risk level to ensure a systematic risk management process.
Identification and Management of Potential Risks
To realize sustainable management, YOUNG POONG identifies potential risks by comprehensively considering both the business environment and social demands, and has established a systematic risk management framework. We recognize health and safety as a key risk factor and have strengthened our internal management systems to enable proactive responses. To reinforce our ethics and compliance management, we operate a compliance officer system and have established internal compliance standards to ensure that all employees strictly adhere to applicable laws and regulations when performing their duties. We also evaluate compliance performance on a regular basis and report the results to the Board of Directors, thereby enhancing our corporate transparency and legal accountability. Building on these company-wide efforts, YOUNG POONG will continue to strengthen its risk response capabilities and fulfill the expectations of its shareholders and stakeholders.
Quality Management
YOUNG POONG is committed to achieving world-class product quality through continuous improvement efforts based on its “Six Quality Strategies” and “Three Quality Principles.” To this end, we have adopted total productive maintenance (TPM) innovation initiatives and implemented the Seven Step Autonomous Maintenance, pursuing both quality management and productivity enhancement simultaneously.
7 Steps of Autonomous Maintenance
0.
Organization: Remove unnecessary items and ensure that necessary items are stored in the right quantity, in the right place, and in proper condition.
1.
Initial Cleaning: Identify defects using the five senses.
2.
Countermeasures for Problem Sources and Difficult Areas: Find and improve sources of contamination or failure in areas that are difficult to clean, inspect, or lubricate.
3.
Cleaning and Lubrication Standards: Operators create and follow their own equipment maintenance standards for cleaning and lubrication.
4.
General Inspection of Equipment: Develop the ability to understand equipment functions and processing points.
5.
Process-wide Inspection: Revise cleaning, inspection, and lubrication standards and carry out regular self checks to prevent breakdowns.
6.
Process Quality Assurance: Understand the relationship between equipment and product quality and take preventive action before defects occur.
7.
Autonomous Management: Internalize and make habitual the practices established in Steps 1 through 6.
Diligent Tax Payment
YOUNG POONG has developed a tax strategy to systematically manage tax-related risks. We regard faithful tax reporting and payment in accordance with applicable laws and regulations, as well as the evaluation and management of various tax risks arising from our business activities, as core values of our business operations. We are committed to maintaining transparent tax practices.
Metrics and Targets
YOUNG POONG is committed to mitigating potential risks by paying taxes in good faith and expanding cybersecurity-related investments.
Payment of taxes
100%
Number of privacy breaches and complaints
ZERO
Information security investments
4.56 billion won