To our esteemed stakeholders,

Through the provision of housing and housing welfare, and by promoting balanced regional development, we have opened the way for citizens to experience a better life and a brighter future. We are taking the lead in implementing key policies, such as the Third Phase New Town Development and housing supply projects in the capital region, and are striving to realize tangible results. Further, we are also working to generate social values such as job creation, shared growth, and contribution to local communities. Moving forward, to become a trusted partner for sustainable, shared growth with our stakeholders, we will actively promote ESG management through the following objectives.

Firstly, we will strive to achieve sustainable, eco-friendly public development.
Since the Paris Climate Accords in 2015, resolving the negative environmental impact of corporate activities has become a key issue for companies today. Within this context, LH is leading efforts to discover methods of housing construction and urban development that enable coexistence with our environment. To this end, we will increase the proportion of ESG bonds to 50% of our total bond issuance by 2024, whilst expanding our eco-friendly projects that respond to climate change – such as green re-modelling and zero-energy construction and urban development.

Secondly, we will establish a housing safety net so that citizens may live stable and invigorating lives.
LH was established to ensure that all citizens, without discrimination, may enjoy a pleasant living environment. This is the very reason for our
existence. By increasing the supply of public housing, we will strive to ease housing concerns and enhance stability in the housing market, and
contribute to the qualitative and quantitative expansion of housing through the provision of related care and medical services. Moreover, we will
make every effort to strengthen the safety net for vulnerable social groups, such as by developing a system that addresses unemployment by
providing job counseling and links to employment

Thirdly, we will become a company wholly trusted by the public through our transparent and fair management.
Real estate speculation by a number of LH employees has damaged public trust in our organization, and we are working to restore this trust as a matter of absolute priority. The LH Innovation Committee, consisting of external experts and internal members, endeavors to identify and diagnose the factors that enabled the speculation to take place, and works towards implementing 87 measures in this respect. We have also established a Compliance Supervisory Committee to significantly strengthen our monitoring of real estate transactions and illegal activities. In addition to this, we will work towards eradicating unethical behavior, such as abuse of power and privileges granted due to previous office, and establish a governance structure based on public engagement and communication. Through these efforts, LH shall become a company characterized by integrity, fairness, and transparency.

We will use various channels to communicate with you, our stakeholders. The results of this communication will be actively reflected in our
corporate activities, thus laying the foundation for sustainable growth. We ask for your continued interest and support so that we may successfully internalize and deepen our ESG management.

Thank you.

Strengthening human rights protection and human rights violations relief procedures, and providing a citizen participation-type governance system

1. Strengthened basis for human rights management system
2. Establishment of a human rights/ethics organization
- Internal control, Strengthening
- fairness and ethics
- Innovation in personnel management, Restoration of public trust

Unification of Human Rights and Ethical Management Organizations

Certified as Best Labor-Management Culture Enterprise

Signed a labor-management agreement to improve the work environment

Increased fatigue due to prolonged quarantine measures
Growing demands for proper treatment due to increased workload

Green New Deal as a means of Responding to Environmental Changes

‌E‌xpand fuel cell business to spread eco-friendly future energy
‌D‌evise a zero-energy model
Systematize infrastructure to respond to heat waves and ultrafine dust, and expand the use of said infrastructure
Develop technologies that will reduce ultra-fine dust

Green remodeling 12,864 cases
Energy independence rate Increased by 20%

Becoming a People-Oriented and Ethical Company that is Trusted and Loved by the Public

Establish balanced ethical management system
Create preventative ethical environment based on empathy
Lead the practice of ethical values

Ethical Management Index
'18: 77.8
'19: 79.2
'20: 81.4