Yoochang Industrial Co., Ltd.

YOOCHANG GAPYEONG STONE (GPS) Bidding Application

http:// yoo-chang.kr

“GPS – THE SUMMIT OF WHITE GRANITE” 1 01. 2019’ 1. Superiority of Yoochang Gapyeong Stone (GPS) 2. Features of Korean Granite by Region 3. Comparison of GPS Properties 4. Company Overview 5. Company History 6. Corporate Mission and 2019 Management Direction CONTENTS 7. Quarry License 8. Yoochang GPS Trademark Registration Certificate 9. Certificate of Corporate Seals 10. Business Registration Certificate 11. Organization Chart and Management Team 12. Technology and Personnel 13. Business Location (Head Office and Quarry Site / Seoul Office) 14. Portfolio of Major Constructions 15. Yoochang GPS Mass Production System 16. Yoochang GPS Sales Information 17. Yoochang GPS Information for Users 18. Miscellaneous

2 1. Superiority of Yoochang Gapyeong Stone (GPS) “GPS – THE SUMMIT OF WHITE GRANITE”

GPS, the best white granite in Korea, boasts the largest reserve and highest quality

Highest Quality Ability to Deliver

• Established a mass production system based • Highest quality white granite in Korea on a new-concept production method • High hardness provides excellent resistance to • Partnership with 4 large finished stone companies permeability and corrosion - Seoul metro area: Raseong Stone, Hyoweon • Low iron content - invulnerable to Stone, Green Stone discoloration and wear GPS - Southern region: Seong-am Stone

Largest Reserve in SuitableText for Largehere Korea Constructions

• With almost no production during the past 20 years, • Uniform color guaranteed from a single granite our quarry has the largest reserve in Korea mass • Quarrying is currently done at 550 meters above sea • Ample reserve provides the capacity to meet the on a single granite mass. delivery demands for diverse construction needs • 20 million cubic meters of reserve within the • White granite gives a distinctive look to a structure licensed zone, 180 million cubic meters of reserve with no discoloration over a long period within Mountain No. 1 3 2. Features of Korean Granite by Region

“GPS – THE SUMMIT OF WHITE GRANITE”

Granite accounts for more than 90% of Korean stones, and the features of granite from each region are as follows:

Gapyeong Stone contains less colored minerals and scarcely any iron. A course-grain granite with light gray color, it has a good water absorption rate for superior weather resistance and will be invulnerable to discoloration over a long time. It is therefore highly suitable for use as interior and exterior building material, interior and exterior flooring, monuments, gravestones, etc. (Despite its superior quality, Gapyeong Stone is not widely known due to its lack of production and distribution in the 2000s and thereafter.)

The most used stone in Korea, Stone is a course-grained granite composed of large amount of reddish feldspar. It has excellent strength and abrasion resistance. It is suitable as interior and exterior building material, interior flooring (stairs, etc.), and construction structure material. But poor weather resistance due to high water absorption rate makes this granite inadequate as material for monuments, gravestones, crafts and sculptures.

A grayish white granite with medium-sized grains, Geochang Stone has quartz, feldspar, and biotite as its main constituent minerals. With average physical properties and excellent abrasion resistance, it is suitable for interior floors and stairs. Superior weather resistance makes it also suitable as exterior wall, flooring and structure material, as well as pavement and boundary stones. The uniform grain size allows this granite to be used for crafts, sculptures, monuments, gravestones, etc.

A coarse-grained granite composed mainly of quartzite, feldspar, and biotite, Hwangdeung Stone is dense and whitish with grey and black-colored specks throughout. Excellent compressive strength, abrasion hardness and weather resistance and low water absorption rate make it suitable for interior structures like inner walls and flooring and also for exterior structure materials.

4 2. Features of Korean Granite by Region

“GPS – THE SUMMIT OF WHITE GRANITE”

Granite accounts for more than 90% of Korean stones, and the features of granite from each region are as follows:

A grayish granite with uniform grains and clear colors shown through when polished, Goheung Stone has deep colors and is dense with medium-sized grains. With excellent physical properties overall, it is suitable as building material for interior and exterior finishing, interior and exterior flooring, and structural applications. It is also suitable for use in monuments, gravestones, crafts and sculptures.

5 3. Comparison of GPS Properties “GPS – THE SUMMIT OF WHITE GRANITE”

Category GPS Other Granites Remarks

Compressive 1,827kg/㎠ 1,626kg/㎠ Higher the better strength

Water absorption 0.15% 0.46% Lower the better

Specific gravity 2.60 2.57 Higher the better

Elastic wave 4.213㎡/sec 2.998㎡/sec Higher the better velocity

Shore hardness 90.5SH 84.7SH Higher the better

Iron content 0.17% 2.25~1.4% Lower the better

※ Excerpted from Korean Stones published by Korea Mining Promotion Corporation

6 4. Company Overview “GPS – THE SUMMIT OF WHITE GRANITE”

Company Yoochang Industrial Co., Inc. Established 18 July 1974

Business Co-CEOs Jeong Dae-yeon, Mun Yong-man 132 – 81 - 00984 Registration No. L Head 211, 333 Beon-gil, Woonakcheonggye-ro, Jojong-myeon, Gapyeong-gun, Gyeonggi-do, Korea O Office C A Quarry San 1, Shinsang-ri, Jojong-myeon, Gapyeong-gun, Gyeonggi-do, Korea T I Seoul O 10th Floor, KTS Building, 215 Bongeunsa-ro, Gangnam-gu, Seoul, Korea Office N 031)584-5345 TEL FAX 031)584-5325 02) 565-4811

Product Granite (Gapyeong Stone)

New operation Size Capital 1.99 billion won start date 10 July 2018

7 5. Company History “GPS – THE SUMMIT OF WHITE GRANITE”

◈ With the birth of Yoochang Industrial in 1974, Gapyeong Stone has been recognized as a premier white granite throughout the world. But due to the circumstances of the former owner, the quarry operation was virtually halted from the late 1990s and the business entered a twenty-year period of dormancy. Reborn in July 2018 under the guide of a new management, Yoochang is making a strong start to reintroduce Gapyeong Stone to the world.

April 1974 1980~1990s 2000s~ TEXT July 2018

Early Period Period of Growth Period of Rebirth Dormancy (Yoochang GPS)

• 1974. 04. Yoochang founded (Hwang Shi-wuk) • Quarry development virtually halted since • 1974. 04. Obtained quarry license the end of 1990s due to the owner’s • 1975. 03. Joined the Korea Export Stone circumstances, with production limited to special orders. Manufacturers Cooperative • 1975. 08. Began exporting raw stones

• Driven by the Korean economic growth of 1980~90s and the boom in the • 2018. 07. Change of ownership industry and expanded export markets, Yoochang grew, becoming the (Rebirth of Yoochang GPS) first stone company in 1989 to reach the 10 million dollar milestone ▪ Active participation of quarry in exports specialists • 1983. 10. Joined the Korea Stone Industry Cooperative • 1987. 06. Designated as a promising small business (Credit Guarantee Fund) • 1987. 06. Obtained professional construction firm license

8 6. Corporate Mission and 2019 Management Direction

“GPS – THE SUMMIT OF WHITE GRANITE”

Mission

2019 Management Direction

◈ Marketing Strategy Diversification ◈ Mass Production System Stabilization

▪ Plate stone sales business chain (raw-finished-construction) ▪ Expand and develop production site creation GPS ▪ Expand wire saw applied production ▪ Establish strategy to reflect government procurement ▪ Establish stable mass production system and design ◈ Establishing New-Concept Management System ▪ Operate various channels through outside organizations ▪ Implement export marketing ▪ Establish a stone ERP system ▪ One-stop management of raw-finished- construction chain 9 ▪ Establish a website, manage and increase traffic 7. Quarry License “GPS – THE SUMMIT OF WHITE GRANITE”

10 8. Yoochang GPS Trademark Registration Certificate “GPS – THE SUMMIT OF WHITE GRANITE”

11 9. Certificates of Corporate Seal

“GPS – THE SUMMIT OF WHITE GRANITE”

12 10. Business Registration Certificate

“GPS – THE SUMMIT OF WHITE GRANITE”

13 11. Organization Chart and Management Team “GPS – THE SUMMIT OF WHITE GRANITE”

Board of Trustees

Co-CEOs Auditor

Business Division Administrative Division

Production Safety Management Sales Team Management Development Administrative Management Team Support Team Team Team Team

Position Title Name Responsibility

Co-representative executive Co-CEO Jeong Dae-yeon Production and sales

Co-representative executive Co-CEO Moon Yong-man Administration Administration, sales and Business executive President Kang Shin-ho development Management support, administration Administrative executive Executive Director Kweon Ssang-bong (CFO) Chief manager of sales Director Kim Chan-woo Overall supervision of sales

Sales administration director Director Bae Ki-ho Sales and sales administration 14 12. Technology & Personnel “GPS – THE SUMMIT OF WHITE GRANITE”

Job Position Names Remarks Field Manager Director Lee Sang-hwan Field supervision Foreman Park Bong-soo Wire saw Technician Choi Myeong-jun Technician Huh Jeong Equipment manager Kim Gun-taek Crawler tractor Technician Lee O-ho Technician Jeon Kwan-shin Wheel loader Technician Choo Yeon-jung Rock drill Foreman Park Seok-ju Safety management Technician Cho Soon-hwa Dump truck Technician Jeong Yeon-guk Pneumatic Line Driller Technician Im Baek-man Burner Technician Na Seung-seop Stonemason Technician Lee Gyu-wan Total 14 Workers

15 13. Business Location (Head Office and Quarry Site)

“GPS – THE SUMMIT OF WHITE GRANITE”

◈ Yoochang GPS Quarry Site : San 1, Shinsang-ri, Jojong-myeon, Gapyeong-gun, Gyeonggi-do, Korea (610,909㎡ )

16 13. Business Location (Seoul Office)

“GPS – THE SUMMIT OF WHITE GRANITE”

◈ Yoochang Seoul Office: 10th Floor, KTS Building, 215 Bongeunsa-ro, Gangnam-gu, Seoul, Korea

Hakdong Gangnam Nonhyun District Office

Yoochang Seoul Office T. 02)565-3811

New Unju Seonjeongneung Nonhyun

Gangnam Yeoksam Seonneung

17 14. Portfolio of Major Constructions “GPS – THE SUMMIT OF WHITE GRANITE”

▩ Certified as the world's best quality white granite, Yoochang GPS has been used variously in prominent buildings both in Korea and abroad.

(Major constructions overseas)

• Mitsubishi Bank Head Office, Mitsui Building No. 2 and No. 3, Samsung Group Building (all in Tokyo), Osaka Olympic GC, Singapore OUE Center, and others

Financial Media Government General Institutions Organizations Offices & Orgs. Buildings

• Bank of Korea Head Office • National Tax Service • Hyundai Motors Head Office • Korea Development Bank • Seoul Press Center • Constitutional Court • Chunghyun Church Head Office • KBS Busan Office • Busan High Court • Kyobo Building • Export-Import Bank • Dong-A Ilbo Busan Bureau Head Office • Independence Hall • Green Cross Head Office • BNK Kyongnam Bank • City Hall Building Head Office • Anyang City Hall • Kim Koo Museum and Library • Standard Chartered Bank Korea • Small & Medium Business • Arts Center Head Office Center • Korea Yakult Headquarters • Jeonbuk Bank Head Office • Office Building • Industrial Bank of Korea • Office • Yuhan Head Office Building Computer Center • Jeju Airport • Aju Life Insurance Headquarters • Seoul Grand Park And others • Samsung Life Insurance • Korea Telecommunication Busan Branch Corporation • Seoul Guarantee Insurance Head Office And others

And others

18 14. Portfolio of Major Constructions

“GPS – THE SUMMIT OF WHITE GRANITE”

Bank of Korea Head Office Seoul Press Center Export-Import Bank Head Office

19 14. Portfolio of Major Constructions

“GPS – THE SUMMIT OF WHITE GRANITE”

Korea Development Bank Standard Chartered Bank Korea Independence Hall Head Office Head Office

20 14. Portfolio of Major Constructions

“GPS – THE SUMMIT OF WHITE GRANITE”

Small & Medium Business Center Mitsubishi Bank Head Office Mitsui Building No. 2

21 14. Portfolio of Major Constructions

“GPS – THE SUMMIT OF WHITE GRANITE”

Korea Parts & Fasteners Singapore OUE Center Gravestones in Japan Head Office Building

22 15. Yoochang GPS Mass Production System

“GPS – THE SUMMIT OF WHITE GRANITE”

23 16. Yoochang GPS Sales Information

“GPS – THE SUMMIT OF WHITE GRANITE”

Raw Stone Production GPS Pricing

▪ Stone Type : Granite (White) ▪ ▪ Monthly production capacity: 580,000 SAI or 16,124 Mass production system allows for competitive pricing ▪ cubic meters (1 SAI = 0.027 cubic meters) Grade A raw stone (1 SAI) : - ▪ ▪ Production capacity can be expanded with increase of wire Grade B raw stone (1 SAI) : - ▪ saws as needed to meet purchase orders Grade C raw stone (1 SAI) : - ▪ ▪ Since the quarry is composed of a single granite mass, Plates stone (1 ㎡) : - capacity can be expanded without additional development time

Benefits of GPS

▪ Recognized as world’s best quality white granite ▪ Highest hardness of Korean granites, uniform grains allow for luxurious glow when polished. ▪ Boasts largest reserve of its kind in the world (180300,000 million cubic meters) ▪ Single mass of granite guarantees uniform color and can meet any size requirements ▪ Low water absorption rate provides excellent weather resistance, low iron content makes it invulnerable to discoloration. ▪ Makes a structure distinctive in appearance, keeps it durable and unchanging over a long period

24 17. Yoochang GPS Information for Users

“GPS – THE SUMMIT OF WHITE GRANITE”

. Category . Information . Remarks

. Plate stones . Inquire at the time of design . Finished stone suppliers . Consultation on total amount and pricing of raw and plate stones - Raseong Stone (Seoul metro area) . Standardized stone design input based on the type and features of the structure - Hyeonweon Stone ( “ ) . Time of design . Guarantee of uniform color regardless of size - Green Stone ( “ ) - Seong-am Stone (Southern . Proof of GPS’s superior quality region) . Competitive edge secured by chaining of raw stone-finished stone- construction . Construction partner company businesses - Samji Stone

. Samples of raw stone always kept available . Raw stone . Purchase by A,B,C grade differentiation available (Grade A production ratio . Raw stones at 70% or higher)

. Direct purchase of GPS for export possible . Acting as an intermediary between the company and buyers possible . Exporting . Raw and plate stones . Direct export by the company . Export by raw stone, plate stone, standard zed stone categories possible

. Custom order production available . Gang saw . Plate stones . Standard : 1500x1800x2800 production available

. Wire saw method allows for customized production of stone of any size . Custom size . Raw stones . Single granite mass allows for uniform color for any large projects 25 18. Miscellaneous

“GPS – THE SUMMIT OF WHITE GRANITE”

26 18. Miscellaneous

“GPS – THE SUMMIT OF WHITE GRANITE”

27 Thank You Yoochang GPS guarantees world’s best quality granite for full customer satisfaction. Yoochang Industrial Co., Inc.

Tel : 031)584-5345

28