A letter to all employees.

Recently, the Monopoly Regulation and Fair Trade Act is being more strictly enforced by the government, and voices are being raised louder than ever concerning the need for establishment of a fair trade order.

We at Lotte Chilsung Beverage have enacted our Code of Ethics, and encourage all members of the Company to put it into practice jointly with our corporate philosophy which puts the priority on customers, product quality, and creativity, with the determination to think, judge, and act rightly. In 2008, we signed agreements on fair trade between small and medium businesses, and in May 2010 we received a letter of commendation from the chair of the Fair Trade Commission as an exemplary business in win-in cooperation.

Meanwhile, we are being watched by the relevant authorities as a market-dominating business. The request for compliance with fair trade laws is becoming more intense day by day, and regulation for the protection of consumers’ rights and interests is becoming more stringent. Voices are being raised even louder, asking for more fair and transparent business management.
In such a social atmosphere calling for fair competition, we adopted the CP (compliance program) for fair trade, which was an inevitable step taken to keep up with industry trends, to prevent losses caused by legal violations, and to enhance our corporate image and brand value through fair and transparent management.

I would like to ask all employees to familiarize yourselves with the content of the self-compliance programs in carrying out company business. Particularly those in the purchasing/sales departments directly associated with fair trade requirements will need to pay close attention to the relevant manuals to be distributed soon in order to be well prepared for relevant circumstances.
Needless to say, businesses falling behind others in transparency and fairness are avoided by both investors and consumers. Let us make a concerted effort to engage in fair and transparent competition, keeping in mind that it is an essential step to be taken for survival in the market to take part in the establishment of a fair trade order and build our internal system designed to observe competition norms.