Environmental Impact Management
Environmental Management System
At YOUNG POONG, we consider environmental management to be a core corporate value, and have established a structured environmental management governance system to achieve sustainable growth and fulfill our social responsibilities. Centered around our dedicated Environmental Division, we implement and operate an ISO 14001-based environmental management system, manage pollutant emissions, and work to mitigate environmental risks, promoting eco-friendly management by collaborating across all departments, including design, R&D, procurement, production, and sales. In particular, in 2025, we established the Environmental Planning Team, which is responsible for managing environmental improvement initiatives and legal compliance status, overseeing environmental budgets and schedules, and supporting the development of environmental management plans including waste management and groundwater remediation. We have also incorporated environmental impact minimization and regulatory compliance status into our key performance indicators (KPIs), and systematically manage them. YOUNG POONG’s Management Council, which includes the CEO and key decision makers, reviews environmental risks, discusses response strategies, and evaluates progress. The Council is composed of the Integrated Environmental Council and the Environmental Monitoring Committee, and the Integrated Environmental Council meets monthly and the Environmental Monitoring Committee meets twice a year.
Environmental Management Policy
YOUNG POONG revised its Environmental Management Policy in 2024 to further strengthen its commitment to environmental protection and sustainable management, and YOUNG POONG is systematically implementing this policy throughout its operations. The policy applies to all employees of YOUNG POONG, as well as to its subsidiaries and business partners across all corporate activities. The policy focuses on minimizing various environmental impacts by optimizing the use of raw materials and water, reducing air and water pollutant emissions, minimizing waste generation and promoting recycling, cutting greenhouse gas emissions, and strengthening the management of hazardous substances. Based on this policy, we are committed to continuously monitoring and improving our environmental performance. In addition, we have acquired and continue to maintain ISO 14001 certification, an international standard for environmental management systems, and we continue to make ongoing efforts to minimize environmental impacts throughout our production processes.
Environmental Management Policy
Environmental Management Policy
- First,
- We recognize the environment as a core corporate value and strive to create corporate value and fulfill our social responsibilities through proactive environmental management practices.
- Second,
- YOUNG POONG’s top management holds ultimate responsibility and authority for environmental management, and all employees are aware of its importance and are committed to its implementation and continuous practice.
- Third,
- We actively pursue the sustainable use of resources and energy, and the minimization of pollutant generation throughout the entire product lifecycle, including development, production, sales, use, and disposal.
- Fourth,
- We actively encourage our business partners to engage in environmental management activities and make our best efforts to implement eco-friendly supply chain policies.
- Fifth,
- We comply with all applicable domestic and international environmental laws and agreements and establish and implement the necessary initiatives to promote environmental management.
- Sixth,
- We regularly review the outcomes of our environmental management policies to ensure the continual improvement and effective maintenance of our environmental management system.
- Seventh,
- We disclose our environmental management performance to our employees and stakeholders based on reasonable and objective standards.
Medium- to Long-Term Strategies for Minimizing Environmental Impact
Water
- Continuously maintain zero liquid discharge (ZLD) by fully reusing process wastewater.
- Install multiple containment facilities within the plant, and continue groundwater pumping and remediation.
- Install large-scale collection facilities outside the plant perimeter and remove potential contamination sources within the site.
- Systematically reuse stormwater (non-point source run-off).
- Refurbish and expand drainage channels and storage tanks, and continue to collect and dispose stored cake.
Air
- Achieve target emissions of less than 30% of regulatory limits.
- Enhance monitoring capabilities by expanding the integrated control system.
- Conduct continuous inspections of emission points through comprehensive surveys of all emission facilities.
Soil
- Gradually carry out soil remediation in surrounding areas outside the smelter, aiming to restore soil quality to nature-origin levels.
- Promote reforestation and ecological restoration that reflect local ecological characteristics.
- Enhance monitoring capabilities by expanding the integrated control system.
- Conduct continuous inspections of emission points through comprehensive surveys of all emission facilities.
Biodiversity
- Operate a joint consultation body involving local communities, NGOs, and external experts.
- Conduct environmental cleanup activities around the smelter.
- Consult on the direction and methods of forest restoration through industry-academia collaboration.
- Continuously pursue ecological restoration based on the native vegetation of the smelter’s surrounding area.
Environmental Considerations in Investment
In order to go beyond complying with environmental laws and regulations and to coexist with local communities and to prevent environmental impacts, YOUNG POONG is reviewing environmental risks and opportunities when making investment decisions. YOUNG POONG plans to continue to expand the scale of its investments in water, air, soil, and forests.
Supply chain risk management
To minimize environmental impact, YOUNG POONG has officially certified its environmental management system to international standards and integrates environmental considerations into its investment decisions to reduce any potential negative environmental impacts from its investment activities. YOUNG POONG continuously monitors and responds to environmental regulations relevant to its operations.
YOUNG POONG has established and operates an environmental management system based on ISO 14001 certification, and through recertification in 2024, we are strengthening the system by reporting the audit results to the top management and supplementing strategies and goals based on them.
In addition, the Responsible Minerals Supply Chain Self-Assessment Questionnaire is used to review pre-contract environmental violations and provides a baseline for supply chains to self-assess and improve their environmental impacts, laying the foundation for sustainable management.
Integrated Environmental Permit
In December 2022, YOUNG POONG’s Sukpo smelter obtained a conditional integrated environmental permit from the Ministry of Environment, thereby securing the legal foundation for site operations. The integrated environmental permit system, introduced in 2017 under the Act on the Integrated Control of Pollutant-Discharging Facilities, centralizes the management authority of environmental facilities under the Ministry of Environment, shifting it from local governments. The system aims to minimize environmental impacts by applying best available techniques (BAT) tailored to the specific characteristics of each site.
Major Environmental Laws and Regulations, and Our Response
YOUNG POONG considers environmental protection and regulatory compliance to be core principles of its business operations and is committed to continuous environmental improvement and compliance with applicable laws and regulations. The key environmental laws relevant to our operations include the Clean Air Conservation Act, the Water Environment Conservation Act, the Wastes Control Act, the Noise and Vibration Control Act, the Chemical Substances Control Act, the Act on the Registration and Evaluation of Chemical Substances, and the Act on Integrated Control of Pollutant-Discharging Facilities. To ensure compliance with these environmental laws and regulations, we have established ongoing monitoring and response systems led by the Sustainable Management Team and the Environmental Management Team at the Sukpo smelter. We transparently manage emissions data in real time through the operation of a tele-monitoring system (TMS) and plan to further expand investments in facility improvements and regulatory compliance. In addition, through the Investment Review Committee, we thoroughly review major environmental laws and regulations, including those related to integrated environmental management and chemical substances, to rigorously manage environmental risks and fulfil our legal compliance responsibilities.
Internal Environmental Training
YOUNG POONG provides a variety of environmental training programs for employees to strengthen its environmental response capabilities and raise environmental awareness.
| Training Title | Content | Trainees | Frequency |
|---|---|---|---|
| Strengthening integrated environmental permit related comptencies | Competency assessment results and capacity building training or integrated environmental permit compliance | Environmental Management Team | Quarterly |
| Integrated Training for Operations Departments | Training for supervisors on the Act on Integrated Control of Pollutant Discharging Facilities | Supervisors | Once a year |
Digitalization of Environmental Monitoring
YOUNG POONG has implemented a tele-monitoring system (TMS) to enable real-time monitoring of emissions from its smelter and the disclosure of key environmental data. Currently, the TMSs are installed at one water monitoring site and thirteen air monitoring sites. The monitoring data are transmitted in real time to the Korea Environment Corporation and the environmental department of the Gyeongsangbuk-do Office. This information is also disclosed to local communities via our company website, on-site displays at the smelter, and status boards installed near the local myeon(township) office.
Demand Response (DR) Program
Since December 2014, YOUNG POONG has continuously participated in the Demand Response (DR) Program led by the Ministry of Trade, Industry and Energy. YOUNG POONG’s annual contracted electricity capacity is 3,320 MWh. In 2024, the company achieved a reduction of 3,256 MWh, which is 98.07% of the contracted capacity. This led to cost savings of approximately KRW 4.89 billion in electricity expenses.
Operation of Zero Liquid Discharge (ZLD) Wastewater System
In 2021, YOUNG POONG became the first in the industry to introduce a zero liquid discharge (ZLD) system, whereby all wastewater from the smelting process is reused within the production process without discharging it externally. The ZLD system recovers wastewater through a three-stage pretreatment process, followed by evaporation in an evaporator, and solidifies impurities in a crystallizer for disposal as waste. This system, known as an “atmospheric evaporation concentration”, purifies wastewater from the smelting process and then boils it at high temperatures (100°C or higher) to capture the steam. The recovered clean water is 100% reused in the production process. The facility has a maximum treatment capacity of 4,000 m³ per day, and currently, an average of 2,000-2,500 m³ of wastewater is treated and fully reused each day.
As a result of these efforts, YOUNG POONG has successfully achieved “zero liquid discharge for three consecutive years” from 2022 to 2024. Our ZLD system has become a leading example of eco-friendly water treatment and a benchmark within the industry. The system has attracted particular interest from the secondary battery sector, where the treatment of high-salinity wastewater is a growing challenge. In February 2024, at the “Industrial Wastewater Management Policy Advancement Forum” hosted by the Ministry of Environment, YOUNG POONG’s ZLD system was introduced as a potential solution for managing high-salinity wastewater, further increasing industry-wide attention to YOUNG POONG’s technology. Going forward, YOUNG POONG will continue to ensure stable operation and further advancement of the ZLD system, aiming to improve water reuse rates, prevent water pollution, and establish a resource-circulating process. We are committed to leading the advancement and broader adoption of eco-friendly water treatment technologies.
Air Quality Management
YOUNG POONG is committed to minimizing air pollution from the Sukpo smelter and reducing its impact on the surrounding areas. To this end, we continue to invest in improving air emission reduction facilities and have adopted a range of technologies to control pollutants, including NOx and SOx removal systems. We regularly conduct comprehensive inspections of all air emission facilities within our sites and continuously monitor emission points, and we have expanded the scope of our integrated control system to further strengthen real-time monitoring. This enables us to proactively detect and swiftly respond to any abnormal emissions. As a result of these ongoing efforts, sulfur oxide concentrations around YOUNG POONG’s Sukpo smelter are currently lower than those in the Ulsan industrial complex.
Hazardous Chemical Management
YOUNG POONG strictly manages the reporting, handling, and control of hazardous chemicals in accordance with its Environmental Hazardous Substance Management Guidelines. Our chemical management process is carried out in stages, including the preparation of hazardous substance list, storage management, and transportation and handling control. The Sukpo smelter’s site manager and relevant departments have clearly defined responsibilities and authority regarding hazardous chemical management. We identify hazardous chemicals on site based on our hazardous substance list and ensure their safe storage and handling through rigorous management practices.
Biodiversity
YOUNG POONG recognizes the importance of preserving ecosystems and biodiversity throughout its business operations. To minimize the negative environmental impact of our activities, we have established a biodiversity protection policy. To ensure the effective implementation of this policy, we have developed a risk management and oversight framework through our Management Council. In addition, we plan to carry out biodiversity assessments, inspection procedures, performance monitoring, and conservation activities through a dedicated team responsible for biodiversity protection.
Very Low
Low
Moderate
High
Very High
| Biodiversity Risk | Risk | ||
|---|---|---|---|
| Pressures on Biodiversity 1) | Land, Freshwater and Sea Use Change | ||
| Forest Canopy Loss | |||
| Invasives | |||
| Pollution | |||
| Environmental Factors 2) | Protected/Conserved Areas | ||
| Key Biodiversity Areas | |||
| Ecosystem Condition | |||
| Range Rarity | |||
- Pressures on biodiversity are indicators that reflect the condition of ecosystems, including air, water, and soil quality, as well as overall water-related risks. A lower risk level indicates a healthier and more resilient ecosystem.
- Environmental factors are indicators of potential negative impacts on local environmental assets. A lower risk level means there is a lower likelihood of biodiversity-related impacts.
Status of Endangered Species
| Classification | Flora | Amphibians and Reptiles | Terrestrial Insects | Birds | Mammals |
|---|---|---|---|---|---|
| Hyeondong | 1 | 0 | 0 | 4 | 3 |
| Taebaek | - | 1 | 4 | 1 | 5 |
| Cheoram | 9 | 1 | 2 | 1 | 4 |
| Poonggok | 13 | 1 | 0 | 2 | 6 |
* Source: National Natural Environment Survey
The Return of Otters, The Revival of the River
Otter sighted at the stream near YOUNG POONG’s Sukpo smelter Otters, which can only inhabit Grade 1 (the highest quality) water, are key indicator species that reflect the health of an ecosystem. In the Seokpo region, an otter is also designated as a Class 1 endangered wildlife species. Since first being observed in the Seokpo River during the winter of 2022, otters have been consistently spotted in the area. Local residents have also noted that “the river has many fish, and otters are now often seen.” The restoration of the ecosystem is becoming a tangible part of everyday life, as the Seokpo area continues to attract anglers. YOUNG POONG humbly acknowledges its responsibility for past environmental issues and has driven company-wide innovations in environmental and safety management. These efforts include the world’s first implementation of a zero liquid discharge (ZLD) system, as well as the operation of a joint public-private monitoring committee comprising government bodies, local governments, civic groups, and local communities. As of January 2025, the water quality downstream of the Sukpo smelter was measured at 0.15044 mg/L for zinc, 0 mg/L for cadmium, and 0 mg/L for lead. These levels are significantly below legal limits, demonstrating superior water quality compared to rivers near other refineries producing similar products. YOUNG POONG is committed to achieving sustainable management, enabling nature, local communities, and industry to coexist harmoniously to conserve biodiversity and protect water quality.