1. Preface

1-1. Purpose of Enactment
Dongkuk Steel fulfills its environmental, social, and ethical responsibilities and creates sustainable value through responsible procurement activities. Accordingly, the purpose of this “Supply Chain ESG Management Policy” is to establish standards for systematically identifying, assessing, and managing ESG (Environment, Social, Governance) risks across the entire supply chain based on transparent and fair partnerships with business partners, and to proactively respond to global regulations and customer requirements. This policy was established with reference to major domestic and international standards and norms, including the Universal Declaration of Human Rights, the 10 Principles of the UN Global Compact, the International Labor Organization (ILO) Core Conventions, and the Korea Corporate Governance Service (KCGS) Best Practice Guidelines. Through this policy, Dongkuk Steel aims to enhance the level of sustainability across its entire supply chain and pursue the long-term enhancement of corporate value and the securing of stakeholder trust.
1-2. Governance
Dongkuk Steel has designated the ESG Team as the lead department and the Procurement Department as the collaborating department for supply chain ESG management. The lead department is responsible for managing the formulation and revision of the Supply Chain Sustainability Management Policy, establishing the Supply Chain Sustainability Management Plan, and managing supply chain risks. Additionally, the “ESG Committee” reviews key issues related to supply chain ESG management, provides strategic advice, and makes decisions.
1-3. Scope of Application
This policy applies to all Dongkuk Steel business sites and all suppliers (Tier 1 suppliers) that provide goods and services to Dongkuk Steel or have entered into contracts for other transactions with the company. Where there is a risk that issues may actually arise within the supply chain, Tier 2 suppliers and lower-tier suppliers throughout the supply chain are encouraged to comply with this policy. However, in the event of a conflict between this policy and local laws and regulations, the laws and regulations of the relevant country shall take precedence.

2. Supply Chain ESG Management Principles

Based on ethical procurement principles, Dongkuk Steel aims for globally sustainable procurement through collaboration and shared growth with suppliers that fulfill their environmental and social responsibilities. Furthermore, Dongkuk Steel strives to minimize the environmental and social impacts that may arise during the procurement and use of raw materials and components, as required by the “Supplier Code of Conduct.” In addition, Dongkuk Steel establishes a supply chain management system free from human rights violations—such as child labor, forced labor, discrimination, and workplace accidents—and continuously strives to minimize the negative impact of the supply chain on local communities.

3. Supply Chain ESG Risk Management

3-1. Management Objectives and Framework
Based on the standards set forth in the Supplier Code of Conduct, Dongkuk Steel conducts supplier ESG assessments and due diligence to proactively identify, prevent, and mitigate ESG risks that may arise throughout the supply chain.
The ESG Team, which is responsible for supply chain ESG management, collaborates with the Procurement Department to carry out supply chain ESG assessment and management activities; when necessary, it seeks advice from external expert organizations and conducts joint due diligence to enhance the professionalism and objectivity of the assessments.
Dongkuk Steel selects suppliers to be evaluated based on factors such as the level of ESG risk, transaction volume, and strategic importance. As a general rule, supply chain ESG assessments are conducted at least once a year; the timing of the assessment is determined during the planning stage after comprehensively considering supply chain risks and changes in the external environment.
3-2. Supplier ESG Assessment Process
a) evelopment of the Assessment Plan
Dongkuk Steel establishes an annual supplier ESG assessment plan that includes assessment criteria, target suppliers, and the scope of the assessment. Target suppliers are selected by comprehensively considering various factors, such as ESG risk levels, transaction amounts, and sales volume.
b) Conducting the Assessment
Dongkuk Steel evaluates suppliers’ management systems and risk levels, focusing on the Environment, Social, and Governance (ESG) domains. For selected suppliers, Dongkuk Steel conducts a written assessment based on the Supplier Code of Conduct to verify their ESG management levels.
If the evaluation results indicate that a supplier is high-risk, an additional on-site audit may be conducted.
c) Deriving Results
The evaluation results are analyzed to prepare a final evaluation report, and necessary improvement tasks are identified based on this report. For ESG risks identified during the evaluation process, Dongkuk Steel may recommend improvements to the supplier and work with the supplier to implement corrective actions.
d) Monitoring
Dongkuk Steel continuously monitors whether suppliers are implementing the required corrective actions. The monitoring results may be used as reference material for supplier management and when reviewing future business transactions.
e) Disclosure
Dongkuk Steel shares information regarding policies, procedures, and activities related to supply chain ESG due diligence with external stakeholders through its Sustainability Report, website, and other channels.

4. Grievance Handling

Dongkuk Steel operates a supplier grievance handling channel via its procurement portal and the ESG Team’s email address to receive grievances and feedback from stakeholders within the supply chain. Stakeholders within the supply chain may report concerns if they believe their individual rights or interests have been infringed upon or may be negatively impacted in relation to laws and regulations concerning ESG matters or this policy. The identity of the reporter will be kept strictly confidential, and the reporter will not suffer any adverse treatment as a result of the report.

a) Procurement Portal Grievance Channel
https://ebiz.dongkuksteel.com/purchase/purchase.page;jsessionid=03C5C37E966479AFC74BE8B580572CAD.was1
b) ESG Team Email: esg@dongkuk.com

Supplementary Provisions
This Supply Chain ESG Management Policy shall be enacted and take effect as of May 7, 2026.
This policy may be reviewed and revised periodically in response to changes in the business environment and relevant regulations.

The Dongkuk Steel Supplier Code of Conduct sets out the basic requirements that suppliers providing products and services to Dongkuk Steel must observe. All suppliers that provide goods and services to Dongkuk Steel or have entered into contracts for other transactions must comply with the Code of Conduct, and must also require business partners (sub-tier suppliers) and others throughout the supply chain to comply with the requirements set forth in the Code.