2013.11.11

To our stakeholders:

I am pleased to confirm that [ Company Name ] reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Jeong-Nam, Kim
CEO

Respect for Human Rights
Dongbu Insurance conforms to Korean Labor Standard Laws and ILO regulations on forced labor and
child labor. There have been no cases of child labor or forced labor.
Education on Human Rights
Dongbu Insurance conducts annual online educational courses for all
employees on preventing sexual violence and harassment within the
workplace. Any department can make use of video materials on the
intranett at all times to educate employees.
Concrete examples of sexual harassment are provided to serve as
guidelines and raise awareness among employees about violating
human rights within the company.
Furthermore, the security personnel stationed at the head office
receive human right education once a week on average (four times
a month) for emergency evacuation measures, customer greeting
skills and customer service to protect customers and employees and
make workplaces safer.

Operation of Employees’ Grievance Settlement System
Dongbu Insurance is operating an employee counseling system and an
in order to help employees to work better and have better lives at home.
In 2010, we settled 18 employees’ grievances through the
employees’ grievance settlement system.
Ban on Discrimination I Although there are rational differences
in employees’ positions, responsibilities and roles, there is no wage
and other discrimination against social statuses and types of labor
contracts. In addition, the company is banning any discrimination
on the basis of races, genders, ages, religions, nationalities and
disabilities in compliance with recruitment regulations. Moreover, the
company actively turned irregular workers into regular workers before
the enforcement of the Temporary Worker Act. During the reporting
period, we transformed a total of 248 irregular employees into regular
employees in an effort to offer fair job opportunities.

Employment of Disabled Persons
Regardless of the degree of disability, Dongbu Insurance guarantees any person a chance to work free from job discrimination so long as they have the motivation and abilities to get their job done. Physically challenged employees of Dongbu Insurance can avail themselves of the company parking lot 100% free of charge.

Recruitment of and Career Development Assistance for Female Workers
We have created a lot of jobs requiring female workers so that women in Korea can take a bigger role in the national economy while achieving self realization. A case in point is the customer service center recently established in Jeonju City, North Jeolla Province to hire 245 local women. Another customer center had been opened in July 2011 in Wonju City, Gangwon Province and 97 female employees are working there at present.
At the same time, we have suggested new visions and opportunities for their career development while promising them a high level of job stability. Anyone showing outstanding performance is given a chance of promotion without any discrimination and can get herself the title of senior manager in our fair personnel management system.
In addition, a well-established telecommuting system is in place to better cope with the difficulties of those feeling constrained to quit for childbearing and rearing and so on. no less than 251 of our employees are working at home.

Fair Performance Evaluation
Dongbu Insurance carries out transparent and impartial performance evaluation each month based on its performance management system adopting the method of Balanced Score Card (BSC). Feedback of the review is returned to each of its members so that they can be more motivated for their jobs with no doubt at all remaining about the fairness of the assessment.
Also, they are completely free to raise objections to their personal competence and performance assessment results. In that case, the personnel committee collects opinions from evaluators and departments in charge to decide whether to correct the results or not. This process has done much to raise employees’ understanding of and satisfaction with evaluation criteria. In 2010, employees filed 37 objections. Out of the 37 objections, 14 were adjusted.
Compensation Scheme I Our employees’ salary is divided into base pay, merit pay and incentive. Data on the wages of new recruits are made public on domestic job information websites. Annual salaries differ reasonably, depending solely on their ranks and duties and not on sex.

Creating Great Work Place
Dongbu Insurance is implementing various programs to help employees enjoy working with a strong sense of pride on the basis of trust in the company by introducing the Great Work Place (GWP) Concept which pursue employee satisfaction and the sustainable growth of the company under the vision of “Good Work Place Where We Can Realize Our Dreams and Vision.” In particular, the company opened GWP Plaza, an internal GWP sharing site in 2009. On the web site, employees share a wide array of GWP activities through “GWP of Our Department,” “Sympathy Café,” and “GWP Program.”

Employment of Disabled Persons
Regardless of the degree of disability, Dongbu Insurance guarantees any person a chance to work free from job discrimination so long as they have the motivation and abilities to get their job done. Physically challenged employees of Dongbu Insurance can avail themselves of the company parking lot 100% free of charge.

Recruitment of and Career Development Assistance for Female Workers
We have created a lot of jobs requiring female workers so that women in Korea can take a bigger role in the national economy while achieving self realization. A case in point is the customer service center recently established in Jeonju City, North Jeolla Province to hire 245 local women. Another customer center had been opened in July 2011 in Wonju City, Gangwon Province and 97 female employees are working there at present.
At the same time, we have suggested new visions and opportunities for their career development while promising them a high level of job stability. Anyone showing outstanding performance is given a chance of promotion without any discrimination and can get herself the title of senior manager in our fair personnel management system.
In addition, a well-established telecommuting system is in place to better cope with the difficulties of those feeling constrained to quit for childbearing and rearing and so on. no less than 251 of our employees are working at home.

Fair Performance Evaluation
Dongbu Insurance carries out transparent and impartial performance evaluation each month based on its performance management system adopting the method of Balanced Score Card (BSC). Feedback of the review is returned to each of its members so that they can be more motivated for their jobs with no doubt at all remaining about the fairness of the assessment.
Also, they are completely free to raise objections to their personal competence and performance assessment results. In that case, the personnel committee collects opinions from evaluators and departments in charge to decide whether to correct the results or not. This process has done much to raise employees’ understanding of and satisfaction with evaluation criteria.

Compensation Scheme I Our employees’ salary is divided into base pay, merit pay and incentive. Data on the wages of new recruits are made public on domestic job information websites. Annual salaries differ reasonably, depending solely on their ranks and duties and not on sex.

Creating Great Work Place
Dongbu Insurance is implementing various programs to help employees enjoy working with a strong sense of pride on the basis of trust in the company by introducing the Great Work Place (GWP) Concept which pursue employee satisfaction and the sustainable growth of the company under the vision of “Good Work Place Where We Can Realize Our Dreams and Vision.” In particular, the company opened GWP Plaza, an internal GWP sharing site in 2009. On the web site, employees share a wide array of GWP activities through “GWP of Our Department,” “Sympathy Café,” and “GWP Program.”

Freedom of Association I With the aim of building labor-management partnership on the basis of trust and cooperation, Dongbu Insurance is operating various types of communication channels. These efforts paid off. Dongbu Insurance has not experienced any labor disputes since 1994 (Dongbu's industrial accident rate - 2008: 0.12%, 2009: 0.03%, 2010: 0.02%). As of November 2011, 93% of all employees are covered by collective bargaining agreements.
Dongbu Insurance guarantees the three labor rights of employees and conforms to all relevant laws and group agreements. In accordance to labor-related laws, we abide by regulations regarding maternity leave and childcare leave. Moreover, employees are given equal opportunities depending on their ability and performances.

Notice of Major Operational Changes I The top management and executives of the company provide latest information on overall management issues to employees through monthly announcements on operating performances and business status telecasted companywide. The corporate intranet, we notice major operational changes such as HR and employee welfare issues to employees beforehand and listen to employees' opinions on the matters.

Building Family-Friendly Culture
Dongbu insurance is expanding a flexible working system to create work-life balance such as designating every Wednesday as the Family Day. The company is creating a family-friendly culture by running specialized programs such as celebrating childbirth, refreshing time for long-time workers, holidays for spouses’ birthdays and fetus diagnosis leaves. In particular, female employees are able to apply for childcare leaves of their free will. Beginning in 2011, the company allows childcare leaves to employees who have worked for the company for less than one year for more active support for childcare.

Selective Welfare and Benefit System
Dongbu Insurance is pulling out all the stops to enhance employee satisfaction by introducing and implementing the Selective Welfare and Benefit System which lets employees select welfare items and levels of benefits on their own within welfare budgets.

Retirement Pension Scheme
Dongbu Insurance switched to a defined benefit (DB) pension plan. The funds are being managed by Korea Investment & Securities, Kookmin Bank and Dongbu Life Insurance, Hana Bank, the National Federation of Fisheries Cooperatives, Tong Yang Securities and etc.
C.C.E. Program
The C.C.E. (Creativity, Communication, Empathy) program has promoted a culture of getting results through innovation and prompt employees to display their creativity on the basis of communication between the company and employees and communication among employees since 2009.

Disease Prevention and Health Promotion Program
Dongbu Insurance developed various health promotion policies and programs to offer a healthy working environment to employees. In September 2009, the company put forth efforts for good health of employees by installing a thermal image camera and a TV monitor at the head office from the Risk Management Research Institute and operating an automatic medical inspection system to monitor body temperatures of employees to diagnose the swine flu. In addition, we are preparing for health risk such as offering a massage care program for customer-contact employees and conducting research on elements causing muscular-skeletal diseases in employees.

Employee Satisfaction Survey
We conduct an ESI (Employee Satisfaction Index) survey once a year to understand workers' morale and enhance their satisfaction level by pursuing company-wide systematic improvement.

Dongbu will bring out the most from the limited global resources through specialization of environment management.

Vision – Take off as environment management leading company by 2020.
Strategy – Decrease amount of carbon emission by 10% by 2015.
Plan of execution – Specialization of environment risk management, minimization of emitted carbon, expansion of green finance and environmental business.
Organization in Charge – affairs, risk management institute, sections of products.

Dongbu should consider invigoration of environmental insurance when developing environment management. The risk of environmental pollution and the range of its side effects is so vast that Dongbu should prioritize the making of insurance which will account for the proper compensation for accidents caused by environmental disasters. In order to do so, we need a set of professionals and society organization that will not only establish strategies for green finance, but continuously and systematically prosecute the programs.
The core purpose of the environment management of indemnity insurance is to correctly identify the client’s message and respond to it. To develop sustainably, Dongbu should seek profit out of customer satisfaction management and also will lead to pro bono social contribution. Hence, Dongbu should input capacity to respond to the clients’ demands and create a more innovative program.

1)Environment Management Strategy

Dongbu is managing a environmental business which is responsible for the social and ethical issues by using energy efficiently and minimize the carbon emission quantity and environmental pollution.
Environment risk management, minimizing carbon emission, and expansion of environmental business are the 3 principles of our company and we will strive to reach our goal which is to become a global green finance business by 2020.

2)Environment Management Principle

Environment management guideline was formatted to suggest a standard for promotion of sustainable usage of resources. Its other purposes are to prevent environmental pollution due to activities, products and services of Dongbu.
Environment management guideline aims to define the following of guidelines, decision regarding the environment and actions of the executives and staff.

1)Evaluation of Research and Environmental Effect

Heavy rainfall risk, typhoon risk and other environmental risks have been tasks for environmental researches and these data have been used when developing insurance products and services in all fields of management.
Recently, the overseas branches of Dongbu have conducted researches on ameliorating the risks of changes in climate and contract screening, managing risks caused by natural disasters and climate changes.

2)Eco-friendly Management Activity

(1)Promy Eco-Love Drawing Banquet
This drawing banquet or competition is opened every year for children through Kindergarten and Elementary school. The topic of the competition is “Let’s Save Our Precious Earth,” which suggests saving the earth from environmental pollution and climate changes.

(2)Exchange of Hospital Bills to Electronic Document System
This is a system where writing documents are transferred into electronic data through an entrepot center which increases the efficiency of work and minimizing of useless printing of paper.

(3)Green Procurement
When choosing subcontractor and procurement enterprise, we purchase products which have been assessed environmentally, is declared as green product or have a environment mark.

(4)Paperless Company
Application of EDMS (Electronic Document Management System), using electronic payment system, or enforcement of NET FAX with basis on internet.

(5)Call Center Stay-at-home Task
The workers of the call centers work from home which can lead to decreasing of CO2 emitted through public transportation.

(6)High-efficiency LED Lightening
Exchange of 186 LED lights in elevators and decreased usage of 3,674Kwh yearly.

(7)Construction of Green Data Center
System to measure indoor temperature was applied and lead to decrease of 10% energy usage.

3)Green Start

We have been engaging in Green Start Movement since 2010 along with Environment Department and supporting of mid-long term business through MOU.

(1)Environmental Education Sponsor
We are supporting the environmental education for the teenagers who are to become green leaders. We first started supporting them in 2011 and with our 2nd plan, in 2012. The programs include education on climate change, extra curricular activities, and summer school for climate change. We also support the management, staff and the parents when managing education or workshops regarding environment, energy saving experiment recordings and saving environment certificates.

(2)Eco-friendly Special Contract Development and Environment Fund Management
As part of the contract, those who subscribe to Dongbu Car Insurance receive the bills through their email and with the money saved from mailing, we have made an environment fund and are donating it to Green Start.

(3)Promy Eco-Love Drawing Banquet
This drawing banquet or competition is opened every year for children through Kindergarten and Elementary school. We encourage the children to take interest in saving the environment and provide them with chances to experience green environment management.

*Green Start: Movement started by the government to promote green management for the government, society and enterprises to minimize the emission of carbon.

Compliance
Dongbu Insurance and is running an evaluation system to
concretizes compliance items to measure compliance levels by
sectors and duties and establish ethical management. Common
compliance items are work ethics, matters pointed out by outside
auditors, ethical code violations and evaluation items for compliance
activity reports. We are realizing ethical management practiced by all
employees by developing compliance index evaluation items steadily
for the purpose of establishing an ethical corporate culture.
We introduced a voluntary fair trade observance program to ensure
that we operate in accordance with the principle of equity. In
addition, we have appointed a compliance officer and developed a
24/7 internal control system to ensure that all our official documents
are monitored. We obtain prior authorization from the Financial
Supervisory Service regarding all materials used to promote and sell
our products. All privately prepared materials should be based on
materials officially approved by the company. Thanks to such efforts,
we have never been accused of exaggeration or false advertising.

Anti-corruption and Bribery Prevention I To root out
corruption and bribery, Dongbu Insurance established regulations
that prohibit the acceptance of bribes, special treatment or
entertainment, special considerations and other forms of wrongful
gifts from partner firms. We also have detailed conduct guidelines.

Whistle Blowing
Employees may make reports anonymously or under their names on
bribery and corrupt activities through the company’s intranet whistleblowing
system. Furthermore, to encourage the reporting of such
violations, we operate various channels. We set up a help line on
the homepage of Korea Business Ethics Institute (KBEI) that offers
informants a full range of protective measures. The general public
may also file reports via the “Financial Accident and Irregularities
Reporting Center” and “Ethics Reporting Center” pages found on our
company website.
The number of whistle blowing cases public announced through the home page .
These cases were settled through deliberations among people concerned.
In the case of we find wrongdoings and briberies, we report them to the Audit Department or punish those
concerned by holding the HR Committee. We inform employees
of those punished and the reasons for the punishment and offer
education to prevent similar cases

Anti-corruption and Bribery Prevention
To root out corruption and bribery, Dongbu Insurance established regulations
that prohibit the acceptance of bribes, special treatment or
entertainment, special considerations and other forms of wrongful
gifts from partner firms. We also have detailed conduct guidelines.

Legal Risk Management
At Dongbu Insurance, legal analysis operations are currently being
handled by the legal affairs part under the compliance officer. The
part answers questions on legal matters related to the business
of the head office, sales policies, legal matters on activities and
legal risks related to claims. Legal risk questions are about overall
corporate matters including the establishment and revision of the
articles of association, company regulations and policies, personnel
and labor management. The number of the questions is steadily
increasing every year.

Legal Service Support for Customer Satisfaction
Dongbu Insurance is providing legal consulting services for
customers through the legal consulting corner on its home page.
This service is provided to any who uses the home page. At present,
the service is used not only by customers but also solicitors,
insurance agents and employees.

Internal Control Framework to Prevent Money Laundering
Dongbu Insurance has an internal control framework in place to effectively prevent money laundering. We have developed and are operating a system that enables us to perform differential customer due diligence according to risk level.

Ethical Education for Employees
Ethical education is compulsory for all newly recruited employees, including promoted workers. All workers also received ethical education via an online course. Newly recruited employees received ethical management education. We provided all employees with ethical management education through in-house broadcast when necessary. In addition, we have given ethical and legal compliance education to compliance officers and financial managers at each department across the nation since 2010. Our subsidiaries which introduced our ethical management education systems provide their newly recruited employees with ethical education as part of their basic education programs.
Signing Oaths to Honor Ethical and Legal Standards

Dongbu Insurance is putting forth efforts for ethical management such as online and offline education for all employees and their signing oaths for ethical management with a view to securing corporate ethics and fulfilling our corporate social responsibilities. We are endeavoring to form a desirable relationship with society on the foundation of ethical management. Employees of subsidiaries submit signed oaths to abide by ethical and legal standards.

Operation of Internal Control for Financial Reports
Dongbu has been operating an internal control system on financial reporting for the purpose of securing credibility in our financial information and improving transparency. The system was launched with control activities on 77 processes and 1,117 detailed processes that impact our financial statements. Every year, we add or change (redesign) control activities. Results of the internal control assessment contribute to securing transparency in companywide work process through continued feedback on improvement measures.

Disclosure Check-list
Dongbu Insurance created an in-house disclosure check-list in order to ensure that our disclosures to the Financial Supervisory Service, the Fair Trade Commission, Korea Stock Exchange, the General Insurance Association of Korea and our homepage are made in a timely manner. Additionally, disclosure personnel and managers working in relevant departments are required to make regular checks (daily, weekly and monthly) of items for disclosure. When an item for disclosure is discovered, an automatic notice is given to related departments.