SK D&D has developed a Safety and Health Management Manual to prevent workplace industrial accidents by defining standards and procedures for safety and health management, in accordance with the Serious Accidents Punishment Act and the Industrial Safety and Health Act. This manual includes safety and health policies, management systems, risk assessments, and evaluation criteria of safety and health competence and qualifications for contractors. It applies to all business headquarters and workplaces, including business partners and stakeholders with access to the premises. We strive to prevent industrial accidents and ensure worker safety by understanding applicable laws and standards at our headquarters and business sites and operating their safety and health management system smoothly according to established principles and procedures.

Safety and Health Management Manual

SK D&D has established an annual safety and health target roadmap to achieve zero serious accidents while advancing to a leading level in safety and health management within the industry. We conduct various programs and activities to achieve these specific targets. Additionally, to foster engagement in safety and health management among all employees, we have formulated behavioral principles tailored to each position, which are mandatory for practice. In 2023, we expanded on-site safety inspections and training to enhance safety and health management for employees and contractors, and supported our subsidiaries in developing SHE management systems. Moving forward, we remain committed to establishing a top-tier safety culture and enhancing our SHE management capabilities.

SK D&D manages potential safety risks at all rental housing sites it develops and operates as a project owner. We conduct regular inspections focusing on fire safety and facilities to assess risks that may occur at the workplace, comprehensively identifying risk potential by integrating various internal and external factors including legal standards, manuals, and organizational culture. Additionally, we establish improvement measures based on risk severity, with management executives directly verifying significant harmful and hazardous factors to devise and implement improvement procedures. Furthermore, to manage potential risks, we conduct monthly or more frequent risk assessments for sites under the project owner's status, establishing risk mitigation measures to eliminate harmful and hazardous factors and implementing the measures aligned with CSO KPIs. Through these efforts, we are committed to enhancing safety inspection activities to maintain accident-free construction sites to the best of our ability.

SK D&D has established various action guidelines to prevent potential accidents at our workplaces. We aim to minimize direct and indirect losses to sites and the company by responding promptly to emergencies, addressing disasters, and preventing human casualties and environmental pollution. Additionally, we have established a workplace emergency response training plan, and conduct training and education at least twice a year to ensure sufficient understanding and preparation for emergencies. The implementation of these activities is reviewed annually by the management executives.

To minimize health and safety risks for residents of our rental housing (Episode), we collaborate with a professional facilities management (FM) company to conduct regular inspections and manage safety and risks in facilities, electrical installations, fire safety systems, and mechanical equipment. We also have established response procedures for accidents and conduct mock drills to prepare for unforeseen situations and accidents, aiming to minimize damage. Furthermore, we are committed to minimizing customers’ safety and health risks by subscribing to natural disaster insurance.

SK D&D became the first in its industry to introduce a safety supervision system, deploying a total of 8 safety supervisors in 2023. Additionally, we have improved the project contract process to apply criteria for selecting qualified contractors and implement disaster prevention technical guidance, thereby proactively managing safety and health throughout the entire project lifecycle of 'planning-design-construction.' Furthermore, we conduct quarterly evaluations of contractors' safety capabilities to identify hazardous risk factors. For sites with inadequate safety management levels, corrective actions are promptly shared with the workplace for immediate improvement. Key safety inspection results are actively incorporated into future inspection plans to ensure the development of safe spaces and service provision, thus strengthening the safety management system of our supply chain. In 2023, safety assessments identified 457 areas requiring improvement across the ongoing projects with 8 contractors, all of which have been addressed and completed.

As an advanced developer, SK D&D establishes and applies project management guidelines to clarify the duties and responsibilities of the project developer. At the bidding stage, we apply evaluation criteria based on project scale, assess the ability to prevent serious accidents and implement safety and health activities, and select only contractors that meet the criteria. Accordingly, we are preparing to prevent safety and health risks that may arise during project execution, such as the construction process, and to preemptively prevent industrial accidents on-site.

SK D&D conducts regular and ad-hoc inspections of on-site safety management levels to enhance its supervisory role in creating a safe workplace environment and preventing serious accidents as a project owner. The SHE Part, responsible organization for safety and health, along with the Chief Safety Officer (CSO), fulfill the project owner's safety obligations by conducting site visits for safety inspections and supervision training. Additionally, they designate third-party experts to provide regular on-site safety consulting to ensure practical safety and health measures.

The safety supervisors deployed at the site conducts regular and ad-hoc safety inspections, including targeted inspections during vulnerable periods, as well as compliance checks according to the Construction Safety and Health Management Regulations. They also perform risk assessments and establish improvement measures of hazardous risk factors. For high-risk tasks, they implement work stoppages and relevant improvement measures systemically to eliminate risks. Besides, they take a proactive role in establishing a safe workplace by directly soliciting the opinions of workers through safety and health consultation bodies, including those for labor-management discussions.

All identified safety risks through site inspections are promptly reviewed at bi-monthly SHE regular meetings to establish and implement improvement plans.

SK D&D has established and is implementing SHE reward and disciplinary management guidelines to reward excellence in organizational and individual performance, assign clear responsibilities for SHE standard compliance, and establish a culture of adherence to SHE standards and procedures. This initiative aims to motivate employees and business partners to achieve safety and health performance and establish a culture that complies with SHE standards and procedures.

SK D&D voluntarily deploys safety supervisors at each site to conduct site safety inspections, oversees improvements for non-conformities, and gathers on-site feedback through safety supervision. Additionally, we operate communication channels to collect field opinions and conduct quarterly safety supervision meetings to address grievances, gather feedback, and share best practices for improvement from each site and partner companies.