K TRA IN GLOBAL BUSINESS PLATFORM THE 2011 KOTRA SUSTAINABILITY REPORT W RLD Bigger Market, Brighter Future 2011 KOTRA Sustainability Report 2 About this Report KOTRA, which builds a global business platform by promoting trade and supporting investment by domestic and foreign companies, issues its first Sustainability Report for the purpose of win-win growth with stakeholders. KOTRA hopes that publication of this report will lay the cornerstone for its sustainable management and promote participation and development of stakeholders. Management Assessment Team, Characteristics of the Report Planning & Coordination Dept., KOTRA According to the ISO 26000 procedures, i.e. international standards for social responsibility, the 13 Heonreung-ro, Seocho-gu, Seoul, Korea 2011 KOTRA Sustainability Report selected issues of report with participation by stakeholders. It also Tel.: 02-3460-7074 Fax: 02-3460-7908 disclosed performance concerning seven core themes. Following publication of its first sustainability Email: [email protected] report, KOTRA plans to issue this kind of report on a yearly basis. Period, Scope and Boundaries of the Report The period subject to reporting is from January 1 to December 31, 2011. In case where a historical trend analysis was necessary, the trend of performance for three years was described. With respect to some materials of high significance, information on activities and performance in 2012 was included as well. The scope and boundaries of the report encompass information on KOTRA’s head office and overseas branches. Criteria and Data The report was subject to G3.1, the latest International Sustainability Reporting Guidelines published by the GRI (Global Reporting Initiative) in the first half of 2011. Financial information was produced on the basis of accounting principles in 2011. Verification The ISO 26000, GRI G3.1 and AA1000AS 2008 verification standards were applied to the report. Verification by the Korean Standards Association as a third-party verifier has confirmed that its GRI Guideline application level is ‘A+.’ Additional Information of the Report The report was published both in Korean and English. You may access the report among various information and reports posted on the webpage of KOTRA (http://www.kotra.or.kr). KOTRA is ready to listen to stakeholders’ opinions. If you have any opinion or inquiry as to its managerial activities and this report, please feel free to contact the following. Declaration of GRI G3.1 Application Level KOTRA has prepared this report in accordance with G3.1, GRI’s International Sustainability Reporting Guidelines. KOTRA declares an application level of ‘A+.’ The Korean Standards Association confirms that it has independently verified KOTRA’s 2011 Sustainability Report and that its GRI G3.1 application level is ‘A+.’ According to the 2002 Guidelines C C+ B B+ A A+ Mandatory Independent declaration External External External ● verification verification verification Optional Third-party confirmation report report report ● Global Business Platform 3 2 About this Report 3 Contents 4 CEO Message Contents 6 Introduction to KOTRA 12 Global Network 14 Vision and Business Strategy 16 Governance 18 Risk Management 20 Materiality Test Process 22 Interview with Stakeholders 24 Human Oriented Management 01 26 Development of Core Global Talents Acquisition of Human Resources Development of Human Resources 31 Improvement of Employees’ Quality of Life Organizatonal Culture, Work and Life Balance 32 Responsible Organization 02 34 Respect for Human Rights and Diversity Creation of Respectful Workplace Win-Win Culture of Labor and Management 38 Leader in Ethics and Integrity Ethical Management 40 Expansion of Environment-Friendly Operations Reinforcement of Carbon Reduction Activities Environmental Performance Management 42 Sustainable Trade & Investment Partner 03 44 Substantive Development of Trade Investment Business Reinforcement of Overseas Marketing for Strategic Industries Bolstering Foreign Investment Attraction and Management 49 Exploration of Future Markets for Sustainable Growth Preemptive Occupation of New Industrial Markets Support for Exploration of Emerging Markets Support for Tapping Overseas Projects and Capturing Orders 54 Customer Oriented Service 04 56 Strengthened Role of SME-Supporting Infrastructure Support for Globalization of SMEs Support for Overseas Advance by Domestic Companies Strengthening of Function as Global Market Information Center 64 Customer Satisfaction Management Customer Satisfaction Activities 66 Social Contribution 05 68 Community Involvement and Development Global Social Contribution Activities Win-Win Growth 74 Appendix Third Party Independent Assurance Report ISO 26000 Compliance Assessment Report GRI Index & ISO 26000, UNGC Stakeholder Opinion Survey 2011 KOTRA Sustainability Report 4 Introduction Human Oriented Management CEO Message Responsible Organization Sustainable Trade & Investment Partner Customer Oriented Service Social Contribution Appendix Welcome to the Sustainability Report 2011 of the Korea Trade-Investment Promotion Agency (KOTRA). Since its establishment on June 21, 1962 to bolster the Korean economy through trade, KOTRA has traveled alongside Korea on its journey of economic development. In the 1960s, in tandem with corporate entities, KOTRA began to develop overseas markets in the vanguard of export. In the 1970s, it took the initiative to fully expand export markets, laying the groundwork for Korea’s emergence as a leading exporter. In the 1980s, KOTRA led efforts to explore markets in Eastern Europe and the former Soviet Union. During and after Korea’s economic crisis in the 1990s and an IMF bailout, KOTRA attracted foreign investment to Korea as the national investment promotion agency and helped steer the nation out of the economic downturn. In the 2000s, it supported domestic companies making inroads into foreign markets through helping establish overseas factories, acquire project orders and more, enabling them to become global businesses. We pledge to emerge as a 2011 marked a great moment for both Korea and KOTRA, as Korea became the 9th country in the world to reach a $1 trillion trade volume. This feat is extra significant when you consider that in 1962, Korea was public institution taking the “ a recipient of foreign economic aid, and KOTRA was established to build the national trade infrastructure lead for global sustainable as part of a five-year economic development plan. Today, in just half a century, Korea has become a trade powerhouse and role model for developing nations. management. Our country now feels a strong responsibility to contribute to the international community. We share with ” the developing world the lessons we have learned, recognizing the nations as partners for mutual growth, not as markets to be exploited for profits. Bigger markets and a brighter future await. We are contributing towards a $2 trillion trade future in several ways: by increasing the competitiveness of SMEs; by expanding their export base and globalization; by developing emerging markets; by supporting exports by future industries; by creating jobs through increasing exports and investment; and by promoting the national brand. CEO Message Global Business Platform 5 At our organization, we have a saying: “The sun never sets at KOTRA.” At 111 overseas branches called Korea Business Centers (KBCs) in 76 countries, KOTRA employees help Korean businesses increase exports, advance to foreign markets and draw investment. Simply put, KOTRA has been, and will continue to be a platform expanding Korea’s economic territory. As we move forward, we are committed to giving back to the communities in which we operate. At home, we help multinational families get settled in Korea and engage in joint community service activities with foreign-invested companies. abroad, KOTRA plays a pivotal role in enhancing the image of Korea by teaching the Korean language and helping Korean companies pursue corporate social responsibility activities in local communities. This Sustainability Report is part The sun never sets at KOTRA.” With 111 overseas branches called Korea Business Centers (KBCs) of our engagement with the wider world. Serving in 76 countries, we are doing our utmost around the world to help Korean businesses increase at the helm of KOTRA, I pledge to fulfill our roles exports, advance to foreign markets and draw investment. and responsibilities as a national trade and invest- ment promotion agency through a commitment April 2012 to customer services and on-site management. Young-Ho Oh I ask for your support as KOTRA partners with you President for another fifty years, for the future of Korea. KOTRA 2011 KOTRA Sustainability Report 6 Introduction Human Oriented Management Introduction to KOTRA Responsible Organization Sustainable Trade & Investment Partner Customer Oriented Service Social Contribution As a driving force behind Korea’s exports for the past 50 years, KOTRA has nurtured new corporate Appendix exporters and helped SMEs in future growth industries and new industries make inroads into overseas markets. Providing information on foreign markets in a timely manner and presenting strategies for advancement into those markets, KOTRA also proactively attracts foreign-invested companies. In this way, KOTRA serves as a global business platform for a brighter future for Korea. Corporate Overview Korea Trade-Investment Organization Promotion Agency (KOTRA) Head of Organization Young-Ho Oh Agency in Charge Ministry