1. Creating a Vibrant Workforce

2. Strong Loyalty of Korean Employees Commitment Versus Loyalty Korean Commitment Versus Worldwide Norms Agenda Empowering Korea’s Employees

3. Loyalty of Koreans <><> <><>

4. Commitment A couple may have been married for years (i.e. they are loyal)

5. Commitment But do they necessarily love each other? (i.e. are they committed?)

6. Global Employee Commitment Report 2002

7. Europe Asia Pacific Australia Hong Kong India Japan Korea Malaysia New Zealand Philippines Taiwan Thailand Vietnam North America Mexico United States Hungary Latvia Lithuania Russia (Moscow) The Netherlands Norway Poland Sweden Turkey South America Argentina 33 Countries Covered Mid East & Africa Israel South Africa Belgium Bulgaria Czech Estonia Finland France Germany Great Britain

8. Percentage of employees committed to their work Percentage of employees committed to their company Worldwide Employee Commitment

9. Percentage of employees committed to their work Percentage of employees committed to their company Korean Employee Commitment

10. Commitment to work and to company by age and by gender Committed to Work Committed to Company Korean Employee Commitment

11. Worldwide Commitment 2002 Country average (65%) % of the working population who have high commitment to work, company, or both. % of the working population who have low commitment to both work and company. Committed to work, company, or both vs. Uncommitted to work and company

12. Global Employee Commitment Matrix Low Commitment to company High Ambassador Committed company; Committed job Global: 44% Career Oriented Uncommitted company; Committed job Global: 14% Uncommitted Uncommitted company; Uncommitted job Global: 35% Company Oriented Committed company; Uncommitted job Global: 8% High Commitment to type of work

13. Career Oriented Uncommitted company; Committed job Ambassador Committed company; Committed job Uncommitted Uncommitted company; Uncommitted job Company Oriented Committed company; Uncommitted job High Commitment to type of work Low Commitment to company High Global: 44%Global: 14% Global: 35% Global: 8% 25% 10% 10% 55% Global Employee Commitment Matrix

14. Countries with High Commitment Israel The Netherlands New Zealand Belgium

15. Poland Japan Korea Bulgaria Countries Similar to Korea

16. AmbassadorsCompany OrientedCareer OrientedUncommitted (N=19126) Global Commitment across Sectors

17. AmbassadorsCompany OrientedCareer OrientedUncommitted Korea (N=683) *Some industries removed as the sample was less than 30 Korean Commitment across Sectors

18. Empowering Korea’s Greatest Assets

19. Opportunities to Win Commitment Improvement is not only possible… It is required for… –the new economy –labor flexibility –lifelong employability

20. Barriers to Overcome Rigid hierarchies Seniority based compensation Paternalistic attitudes Blind loyalty and endurance Dependency on employers Labor flexibility is required for both labor and management

21. Our Leadership Role We have the experience We understand merit based compensation We treat HR as a science We are a major employer We can lead Korea toward more competitive labor practices