Dear Fellow Kumho Petrochemical Shareholders,
As the largest individual shareholder of Kumho Petrochemical, like you I only wish for our company’s continued growth and prosperity.

In fact, my deep desire is for Kumho Petrochemical to transform itself into a company capable of leading into the future by committing now to the urgent changes and tasks that are necessary to achieve its large potential.

Serving as an executive at Kumho Petrochemical over the past 10 years, I have had the opportunity to consider what can be done to improve the company’s long-term growth potential as well as shareholder value.

The shareholder proposal I have submitted is focused on the future of our company. I believe it is critical that we not be complacent about the present, as the company achieves record sales performance, but rather build on these strengths. In fact, without active responses to today’s changing corporate environment and more focus on sustainability, today’s success does not guarantee tomorrow’s.

Based on my experience and insight, I am confident that Kumho Petrochemical has an opportunity to transform itself into a sustainable and future-leading company.

I believe that, by managing the business strategically for future growth, improving governance and implementing a more sustainable approach to management, Kumho Petrochemical can achieve a market cap of KRW 20 trillion (USD 17.7 billion) by 2025:

First, investments should be targeted on new growth engines that can create synergies with the existing business, at the same time Kumho Petrochemical’s industry-leading products and technologies must be continuously be advanced.

Second, democratic governance must be established, in line with global standards, to create a more flexible, innovative corporate culture. As part of this, the company must take concrete measures to spur innovation and to more actively communicate with its various stakeholders.

Third, as investors’ expectations with respect to companies’ environmental, social and governance (ESG) impact have intensified recently, so too must Kumho Petrochemical adapt and lead in this area. Launching an ESG team directly under the CEO is a necessary starting point for pursuing a sustainable future for our company. This will help corporate goals and strategies to be established from a long-term perspective, while shifting the overall corporate culture toward a sustainable future for Kumho Petrochemical.

Again, I would like to reiterate that, out of my trust in our company and respect for current management’s leadership, this proposal was prepared in good faith. As the largest shareholder and an executive, my sincere desire is for Kumho Petrochemical to rise further and higher.

Sincerely,
Shareholder Park Chul Whan