Dear Respected Stakeholders,
In 2023, Kumho Tire achieved business normalization through the efforts of all domestic and international employees and the support of our stakeholders. Our revenue increased by 13.5% compared to the previous year, reaching KRW 4.0414 trillion, and our operating profit rose by 9.5%p, recording KRW 411 billion. Despite global supply chain risks such as natural disasters, wars, pandemics, and high exchange rates and interest rates, we secured market competitiveness through ‘competitive products and technology,’ ‘stable production and supply,’ ‘timely investment in the Vietnam plant,’ and ‘ESG management performance.’ Building on these solid results, Kumho Tire is promoting the leap to a premium brand, advancing research and development and quality enhancement, and internalizing sustainable management from a macro perspective. Through the 2024 Sustainability Report, we aim to transparently disclose our management performance and achievements in environmental, social, and governance aspects, and share Kumho Tire’s sustainable present and future with investors, customers, partners, employees, the government, and local community stakeholders.
First, Kumho Tire will continue our reputation as a technology leader.
Kumho Tire will firmly establish our position as a technology leader by responding flexibly to the rapidly changing environment, including the development of the mobility ecosystem and the expansion of the electric vehicle market. In March 2024, Kumho Tire launched electric vehicle-specific brand, ‘EnnoV’ with innovative technologies, such as High Load Capacity (HLC) applied across all tire sizes, which is the first in the world, and improved wear performance and fuel efficiency. Additionally, many of our products have achieved excellent results in various evaluations worldwide. In 2024, Kumho Tire secured third place in the summer tire performance test hosted by the renowned German automotive magazine ‘ADAC,’ and fourth place in the ‘Auto Bild’ tire performance test, further solidifying our position as a technology leader.
Second, Kumho Tire is accelerating our push for Net-Zero by 2045.
Recognizing the severity of the climate crisis, Kumho Tire has set Net-Zero goals and is actively pursuing carbon reduction at our domestic and international business sites. For Scope 1, Kumho Tire is enhancing energy efficiency and investing in facilities, and for Scope 2, Kumho Tire is promoting the conversion to solar power using the On-Site PPA method, primarily at overseas business sites, and actively implementing the transition to renewable energy through certificate purchases. Kumho Tire has also joined the global initiative SBTi (Science Based Targets initiative) to set and achieve goals based on international agreements.
Third, Kumho Tire is striving to enhance ESG management.
Recently, ESG regulations are growing such as the EU Regulation on Deforestation-Free Products, the EU Supply Chain Due Diligence Directive, and mandatory disclosures based on the IFRS Sustainability Standards. Kumho Tire is working to raise internal awareness and enhance implementation levels through the operation of the ESG Management Committee and the ESG Working Group, not only in response to climate change but also in the areas of corporate and human rights, responsible natural rubber supply chains, compliance and ethical management, information security, and corporate governance. In particular, Kumho Tire is identifying human rights risks at domestic and international business sites based on a human rights checklist, and in terms of compliance and ethical management, we have obtained integrated certification for ISO 37301 (Compliance Management Systems) and ISO 37001 (Anti- Bribery Management Systems) to enhance our management system.
We ask for your continued interest and support in Kumho Tire’s ongoing changes and challenges.
June 2024
Kumho Tire CEO
Il-taik Jung