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AMOREPACIFIC Corporation 2013 Management Policy

Company 2013-01-11

AMOREPACIFIC Corporation (President and CEO, Suh Kyung-bae) has declared the company's management policy for 2013, as "TEAM Together", which focuses on mutual growth with customers, the world, society and employees. Furthermore, the company has set the "Creating innovative products and services", "Acceleration of global businesses”, "Sustainable management" and "Active execution of Smart Working" as its detailed execution strategy. The company plans to effectively cope with changes in the business environment through thorough preparation in each field.

To achieve the company's vision of being an "Asian Beauty Creator" that spreads the essence of Asian beauty all over the world, it will emphasize value of challenge and innovation to its customers, the world, society and employees, and focus its efforts on achieving its management goals and vision.

1. "Team Together with Customers" by providing innovative products and services

In 2013, AMOREPACIFIC Corporation plans to execute customer-oriented management strategies by providing innovative products and services to its customers.

Each brand will develop innovative products that represent the brand to strengthen market development capabilities. In addition, the company will also strengthen its R&D capabilities, which form the foundation of innovative products and focus on developing core technologies in each product category. While improving the quality of make-up products and men's products, leading the make-up market, it will also actively cope with the men's cosmetics products market, which has been showing strong growth every year. The company will also expand digital and mobile communications to improve customer communication.

Furthermore, the company will also further strengthen the potential of door-to-door sales and other new growth channels through customer service innovations. The Sales Stimulation & Enhancement Program will focus on customer services rather than sales to strengthen the sales staffs’ customer service innovation capabilities.

In the SCM (Supply Chain Management) unit, the production and logistics capabilities of the AMOREPACIFIC Beauty Campus completed in Osan, Gyeonggi-do, on May 2012, will be fully utilized. The company plans to further enhance absolute quality in order to provide the best products to customers and logistics innovations to deliver new products in a timely manner.

Moreover, it will refine its in-house support system for developing innovative products and services while actively nurturing creative human resources to focus on customer-oriented products and service innovations throughout the company.

2. Accelerate the global business and go "Together with the World"

AMOREPACIFIC Corporation will continue its efforts to accelerate the growth of its global businesses and spread Asian beauty to customers around the world.

It will develop No. 1 products that are appreciated by global customers based on its in-depth understanding of and insight into customers in each country. This effort will include discovering "K-Beauty" (Korean Beauty) stories and implementing them at the product development stage, and quickly coping with market trends and heightening global R&D competitiveness by strengthening the network with global R&D institutions.

The operation of the global supply chain will be optimized to provide the best products to global customers and an infrastructure for guaranteeing absolute global quality will be put in place. Furthermore, by establishing an early approval process, it will lay the foundations for expanding into the global market in a more proactive manner.

The company also plans to see qualitative growth in the China and ASEAN regions, which are recording high growth rates, and focus efforts on discovering new growth engines to do so. The company also plans to stabilize its businesses in Europe and the US and diversify its business portfolio in Japan.

Furthermore, AMOREPACIFIC Corporation will also accelerate the execution of its global human resources development project, Hyecho*, and strengthen the support for nurturing global human resources that will spread Asian Beauty to the world.

3. "Together with Society" through sustainable management

AMOREPACIFIC Corporation plans to manage sustainable growth with society by developing sustainable products, mutual growth with beauty partners and partner companies, and applying eco-friendly management.

From raw ingredients to technologies, and product design to packaging, the company will continue to present sustainable and low-carbon eco-friendly products that implement eco-friendly elements to customers while maintaining product safety at the same time. Furthermore, AMOREPACIFIC Corporation will also be expanding its sustainable purchasing, which includes the company's unique fair trade activity, "Beautiful Fair Trade", sustainable palm oil purchasing to prevent reckless cultivation of palm tree farms, and purchasing raw ingredients with social and environmental responsibilities.

By improving the working conditions for sales staffs in each channel, it will pursue harmony with beauty partners and make efforts to achieve healthy mutual growth with supply chain management partners.

Furthermore, it will also expand customer activities for more customers to be able to participate in various social contribution activities carried out by AMOREPACIFIC Corporation, such as Make Up Your Life and the Pink Ribbon campaign.

4. "Together with Employees" through smart working

AMOREPACIFIC Corporation also aims to achieve mutual growth with employees by improving their agility, enhancing their ability to focus on tasks and creating a balanced growth of work and everyday life.

The company will minimize unnecessary processes in conferences, reports and approvals to accelerate the speed of innovations in-house. By improving the executive capabilities of empowerment, it will improve the speed of decision-making and the agility of its employees.

At the same time, the company will establish a workplace environment that allows employees to better focus on their tasks at hand, encourage on-site reporting of sales personnel, and implement progress-oriented business practices to improve the way in which employees focus on their tasks. The flexible working time program for individuals will be expanded, and in-house welfare policies will respect employee diversity to help employees to maintain a balance between their life and work.


* AMOREPACIFIC Corporation has adopted management techniques that focus on human resources by discovering and nurturing global human resources with excellent observation of the global market and customers. To preserve the spirit of Hyecho, priests in the Shilla Dynasty that travelled to other countries such as China and India for the first time in Korean history, AMOREPACIFIC Corporation has named its global human resources development project "Hyecho". AMOREPACIFIC Corporation is carrying out activities to dispatch over 100 global leaders to 15 countries, including Asian countries such as China, through the Hyecho Project, with the goal of spreading Asian Beauty throughout the world.