Sustainability Management Strategy

Greetings to our valued customers,

This year, LG H&H celebrates the 10th anniversary of its CSR report. We extend our deepest gratitude for your unwavering support and enthusiasm for our products.

Looking back on 2018, we achieved good results amid challenges. Since its launch 15 years ago, sales of The History of Whoo reached KRW 2 trillion, becoming one of the world’s best premium cosmetic brands as a single brand. Following the path of the History of Whoo, we are excited that Sum37° and O HUI are fast moving to join the ranks of premium brands.
In terms of household goods business, holding the No.1 position in the domestic market does not mean we rest on our laurels or settle for status quo. We are constantly at work to set new standards for quality and make improvements in the way we operate. We have refined our business structure with the goal of achieving medium-and long-term
sustainable growth rather than growth driven by short-term
expansion. We have laid the foundation for expanding
our overseas business, which is essential in further
in further advancing our premium brands. The
beverage business has also continued to grow,
paving the way for limitless possibilities.
Such notable achievements make us think about
the future of our company. A company that is
‘small but sparkling like a gem’ is the image
that I envision for the future of the company.
In 2019, we will lead the market and pursue sustainable
growth to become a company that shines in every aspect of
our business scope. In realizing our aspirations,
we will focus on the following three key areas.

First, we will strengthen trust, or the basis for becoming a company that ‘sparkles like a gem’.

Mira Kim, a writer said, “Trust is what we feel when we find a strawberry at the bottom of the box that is bigger than those on the top.” Are we selling the best-quality products? Are our products truly effective? Do we sell safe products? Do we provide distinctive satisfaction and pride to our customers who use our products? To continue serving as a trusted company, we will constantly ask these questions to accomplish the results that exceed our customer’s expectations across all aspects of our business.

Second, we will not miss a beat.

Historian Arnold Toynbee said “Half of success comes from a desperate situation near death, while half of failures comes from nostalgia of the golden age.” Our achievements will not lead us to complacency-we will apply the highest degree of thoroughness, discipline, and rigor in our operation and processes.

Third, we will constantly improve our business structure and the way of we operate.

Improving our business structure is not a one-time endeavor that can generate material results in the short term. It is an outcome achieved through continued and concerted effort. Group leaders and its members will work closely to identify high value-added business. Once identified, we will allocate resources to those business areas with the aim of leading the market.

In celebration of our 10th anniversary, we prepared our 2018 CSR Report with special features. We provided transparent information of our activities in sustainability and performances that we have pledged to our customers, suppliers, local community and employees. Moreover, we included information on the safety and reliability of our products, which are a major concern of our customers. We also included our contributions in creating value in the social and environmental sectors and how we have expanded our global reach. In particular, we prepared content covering our 10-year journey. The wisdom we obtained in the past decade will help architect our future growth trajectory.

Recently, investors have demanded environmental, social and governance initiatives to be integrated into management strategies and those efforts to be disclosed. LG H&H, as a global leader in sustainability, will continue to comply with the 10 principles set forth by the UN Global Compact, and create a better future by pursuing corporate social responsibility with unparalleled vigor.

Your continued support is greatly appreciated.

Thank you.

June 2019
Suk Cha, CEO & Vice Chairman
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