This report presents a qualitative and quantitative account of financial and nonfinancial activities and performances from January 1, 2023, to December 31, 2023. 
It also includes information on certain significant issues extending into the first half of 2024 to enhance stakeholders' understanding. Additionally, quantitative performance data includes a three-year performance overview in the areas of environment, society, and governance, allowing for trend analysis.

The scope of the report includes all domestic and international operations of ILJI TECH for economic performance. For social and environmental aspects, the report focuses primarily on domestic operations (headquarters and Gyeongju plant), taking into account the scale, nature, and impact of the business locations.

This report has been prepared with reference to the Global Reporting Initiative (GRI) Standards 2021 for sustainable management. Financial information is based on consolidated financial statements, and reporting standards and definitions follow the Korean International Financial Reporting Standards (K-IFRS). If financial or other non-financial information has been aggregated based on ILJI TECH's separate criteria, this fact is noted in the footnotes.

This report has undergone verification by the Korea Quality Foundation (hereafter referred to as "the verifier"), an independent third-party external verification organization, to ensure data reliability. The verifier's third-party verification opinion can be found on page 79 of the report.

This report was developed through a process that involved reporting and decision-making by the highest decision-making body and top management, from planning and implementation to the final report production. It was created with the participation and communication of relevant departments, centered around the ESG Task Force.

ILJI TECH defines stakeholders related to corporate management and has established various channels for communication to identify their concerns. The company actively listens to stakeholders' opinions and swiftly develops response measures to monitor changes that promote mutual growth.

ILJI TECH establishes and executes annual investment plans to continuously enhance safety, health, and environmental management.

ILJI TECH participates in ESG training conducted for its partners by the Hyundai Motor Group. This training provides essential knowledge on various aspects of ESG management, including ethical management and human rights management. Specifically, it covers concepts related to environmental management, climate change, carbon neutrality, circular economy, safety management, and on-site safety management, focusing on the supply chain's direction and expertise. In 2023, 100% of all employees successfully completed the training.

ILJI TECH has strengthened internal audits, a crucial procedure for verifying the adequacy and operational effectiveness of the company's safety, health, and environmental system. To cultivate expertise in this area, the company conducted ISO 14001/45001 internal auditor training. A total of 40 participants completed the training and obtained auditor qualifications.

ILJI TECH manages regulations related to the environment and safety, including the Occupational Safety and Health Act and the Waste Management Act. Considering the relevance to the company's business and the importance of these regulations, the company regularly reviews and updates nine key regulations. Additionally, compliance with these regulations is periodically assessed.

ILJI TECH transparently discloses its strategies, activities, and performance related to the environment and safety to stakeholders through the company website.

ILJI TECH has been selected for a carbon reduction facility purchase support project aimed at enhancing carbon neutrality in the automotive industry. This initiative is a facility purchase support program implemented by the Automotive Parts Industry Promotion Foundation for automotive parts companies to promote carbon-neutral management. Through this project, ILJI TECH is receiving support for inverter-type air compressors to improve energy efficiency in its operations.

ILJI TECH is participating in the "2024 Supply Chain Component LCA Calculation Support Project" conducted by Hyundai Motor Company to manage environmental impact throughout the life cycle of the automotive industry. Life Cycle Assessment (LCA) quantifies the use of energy and mineral resources, as well as the environmental burden on air, water, and soil, across all processes of a product or system—from raw material extraction, processing, assembly, and transportation to usage and disposal. This assessment aims to identify the potential adverse environmental impacts and evaluate the effects of these burdens on the environment. ILJI TECH is conducting LCA for the components 64200-GI000 and 64300-AA001 PNL ASSY-DASH COMPL that it produces. In 2024, the details of the LCA process and the methodology for determining weight ratios will be used to create a database of carbon emissions for all components of the company’s products, which will be registered in the LCA system "SCEMS." Additionally, the company plans to set targets for reducing carbon emissions through improvements in components and processes in alignment with HKMC’s "Net Zero 2045" initiative.

In response to the era of eco-friendly electric vehicles, ILJI TECH is actively promoting the development of components for environmentally friendly automobiles. The company is engaging in research and development focused on lightweight body structures, electric vehicle components, and changes in materials and manufacturing processes through participation in government projects and independent research. This approach aims to enhance eco-friendliness while strengthening leadership in core technologies.

ILJI TECH does not have any facilities that emit air pollutants. However, the company actively works to minimize negative environmental impacts by conducting self-assessments of processes that may generate air pollutants.

ILJI TECH's main facilities are not directly related to protected areas or protected species concerning biodiversity. However, in accordance with the Convention on Biological Diversity(CBD), the company strives to ensure that its operations do not threaten ecosystems.

ILJI TECH conducts regular safety and health patrol inspections for each process to comply with the Occupational Safety and Health Act and prevent safety accidents. The inspections cover various aspects related to safety and health, including the implementation of top inspection items, safety and health systems, audits, and management supervisor committees. In 2023, a total of 145 inspection items were identified, of which approximately 76% have been resolved. The items that remain unaddressed will continue to be improved in 2024.

ILJI TECH applies standardized guidelines for the use of equipment and tasks within its facilities. For tasks that require safety, such as waste management, handling hazardous chemicals, using flammable devices, preventing musculoskeletal disorders, and crane operations, the company has documented procedures, safety equipment usage, handling precautions, and risk assessments. This approach creates an environment where all workers can perform their tasks safely. As of 2024, a total of 26 types of work instructions have been developed, and revisions are made as needed based on feedback from the field.

ILJI TECH aims to achieve an accident-free workplace by actively implementing systematic safety management activities throughout the organization, ensuring that all employees participate in safety management and are protected from hazards.

At ILJI TECH, human resources are the most important value and asset. The company seeks innovative talent to lead the future and is committed to supporting the growth of its employees every step of the way.

ILJI TECH maintains a high standard in employing individuals with disabilities, exceeding government-mandated requirements. The company has established regulations for managing disabled athletes, ensuring they face no challenges in their work environment or daily tasks. Furthermore, to expand youth employment, ILJI TECH collaborates with universities to offer internships and job experience opportunities, with potential pathways to full-time employment. For female employees, there is no wage or job discrimination based on gender, and the company provides parental leave, maternity protection programs, and dedicated facilities to create an environment where they can focus fully on their work.

ILJI TECH operates a Career Development Path(CDP) to cultivate global talent. By managing both bottom-up career development paths for each job role and top-down paths for each position, the company ensures that essential competencies are developed, actively supporting and encouraging personal growth within the organization.

ILJI TECH operates a performance-based compensation system for all employees, taking into account organizational and individual achievements as well as external factors. By gradually expanding performance bonuses that recognize individual contributions to the company's success, ILJI TECH aims to foster a corporate culture where everyone can fully realize their potential and receive fair rewards accordingly.

Each year, ILJI TECH develops and implements training plans to enhance the necessary competencies for each job function and grade level. This includes mandatory legal training and Hyundai Motor supply chain capability enhancement training. Additionally, ILJI TECH supports employees by offering tailored courses for each role and level, allowing them to enroll in the programs of their choice.

As global business expansion and overseas operations increase the importance of developing global talent, ILJI TECH provides career management for overseas employees. Career development paths are established to ensure that these employees can perform in at least three different roles, effectively preparing them to take on future responsibilities as global leaders.

ILJI TECH has improved its organizational culture to enhance employees' adaptability and communication in response to internal and external environmental changes. To this end, the company has established a cultural initiative called 'CREW,' which signifies a group that collaborates towards common goals. Building on this foundation, ILJI TECH is committed to continuous efforts for organizational adaptation and capability development, enabling both individuals and the company to grow together.

ILJI TECH established the ILJI Labor Union in 1989 to maintain and improve working conditions and to enhance the economic and social status of its employees. The union has been in continuous operation since then. As of December 2023, the union membership rate among eligible field employees stands at 100%.

The final decision-making for customer satisfaction is handled by top management, while the QC Team 1, the primary department, oversees quality planning, quality management system establishment, and overall quality control. Additionally, related departments systematically implement quality management at each stage—advanced quality, supplier quality, process quality, and customer quality. Company-wide, clear roles and processes are established to enhance the effectiveness of quality management.

ILJI TECH is one of the select "Quality 5-Star" companies among Hyundai Motor’s primary suppliers—a distinction awarded to only about 10% of these suppliers. This recognition affirms the company's robust production system for large modular body parts, demonstrating its competitive edge in global markets. Additionally, as a highgrowth company, ILJI TECH is regarded positively in the community for its ability to attract outstanding local talent. It is also acknowledged as a reliable partner for Hyundai Motor, supporting mutual growth and reinforcing its role in the partnership.

To enhance investigation and communication regarding customer complaints, ILJI TECH assigns each representative to conduct a monthly quality-related survey and collect suggestions for improvement. Through this process, the company aims to address areas for improvement, proactively prevent potential customer complaints, and meticulously track and manage even minor issues, ultimately maximizing customer satisfaction.

To enhance the effectiveness of quality-related training, ILJI TECH analyzes training content to assess suitability by work group(W/G) and ranks the importance of training courses for each role. This approach fosters the development of highly qualified and suitable talent. By enabling employees to gain experience in diverse areas—such as new car quality, management, and mass production quality—through rotational assignments across W/Gs, ILJI TECH cultivates key personnel capable of driving organizational goals. Additionally, the company aims to train all employees as 3D scanning experts to ensure flawless quality throughout the new car development process.

In January 2024, ILJI TECH established a Conflict Minerals(Responsible Minerals) Policy and a Responsible Sourcing Policy to ensure responsible raw material procurement and supply chain due diligence management in compliance with OECD Due Diligence Guidance. ILJI TECH refrains from using 3TG(tin, tantalum, tungsten, and gold) minerals sourced from conflictaffected and high-risk areas.

ILJI TECH recognizes its partners as essential business collaborators and seeks to build a successful co-growth ecosystem through fair and transparent supply chain management. To ensure that employees of both ILJI TECH and its partners adhere to ethical standards and engage in fair and sustainable practices, the company has established a Code of Conduct for its partners.

ILJI TECH conducts regular evaluations of its partners to ensure sustainable business relationships when selecting new partners. Based on comprehensive evaluation results, companies needing improvement receive guidance and support, while outstanding companies are provided additional support. Additionally, ILJI TECH has implemented an ESG evaluationbased partner selection process and plans to expand ESG assessments to include not only existing partners but also new suppliers, enhancing the sustainability of its supply chain.

To promote ESG management across the entire supply chain, ILJI TECH conducts annual ESG assessments of its partners. In 2023, eight companies were evaluated based on business importance, highlighting the need for ongoing ESG awareness training and comprehensive guidance on key indicators. For tasks that can be swiftly addressed, ILJI TECH provided best practice examples, guidelines, and manual samples to support improvement. For long-term goals, ILJI TECH plans to enhance its support through supply chain training and ESG support programs. ILJI TECH will refine its ESG evaluation system annually by incorporating partners' key feedback and gradually expanding the scope of assessed companies.

ILJI TECH has established a Subcontracting Review Committee to promote fair trade practices with its partners and has signed Fair Trade Agreements with all active partners. The Subcontracting Review Committee reviews the fairness and legality of subcontracting transactions between ILJI TECH and its partners and outlines procedures for the internal review committee’s operations. The committee's primary goals are to contribute to establishing fair subcontracting practices and to prevent violations of subcontracting laws proactively. To ensure fair transactions, ILJI TECH utilizes a standard subcontracting agreement and adheres to the four key practices for subcontracting, demonstrating its commitment to fair trade.

ILJI TECH has established procedures for operating an internal review committee to assess the fairness and legality of subcontracting transactions with its partners. To ensure fair subcontracting practices and prevent violations of subcontracting laws, the company operates a Subcontracting Review Committee. This committee comprises a chairperson and seven members, and its main responsibilities include the preliminary review of large-scale subcontracting transactions, evaluation of standards and procedures for partner registration and cancellation, assessment of the appropriateness of new partner registrations or cancellations, review of bid restrictions for partners, handling appeals from unregistered or deregistered partners, evaluating price adjustment proposals, and implementing sanctions for employees violating subcontracting laws and related regulations. All review materials are archived to maintain a record, reinforcing efforts to ensure fair and transparent transactions in the future.

To promote sustainable compliance and ethical management, as well as to enhance awareness among employees, ILJI TECH distributes a monthly fair trade newsletter via its internal portal, i-SCM. Additionally, to support fair trade practices among partner employees, the company provides resources such as a Fair Trade Handbook, Anti-Collusion Guidelines, and Compliance Guidelines.

ILJI TECH promotes co-growth with its partners through open communication. Each year, the company hosts an annual partner association meeting, "Dasomhoe," where it provides indicator reviews and gathers plans and feedback for mutual growth. In 2023, representatives from 16 partner companies attended the meeting to discuss co-growth initiatives. Additionally, ILJI TECH holds quarterly partner meetings to listen to partners' challenges and discuss various support measures. The company also organizes events for around 650 employees from approximately 13 key partner companies, such as distributing watermelons for the summer season and offering coffee truck support.

ILJI TECH provides various training and improvement activities to support the enhancement of its partners' quality and technological competitiveness. The company focuses on assessing and addressing partners' weaker areas, upgrading quality systems, and maintaining the effectiveness of quality system evaluations. Recently, ILJI TECH has integrated safety, health, and ESG elements to further elevate partner standards. Additionally, to improve partners' operational efficiency, ILJI TECH offers guidance, quality management system upgrades, and support for maintaining and renewing SQ certifications, among other assistance programs.

In 2023, ILJI TECH conducted quarterly safety training sessions for key partners, focusing on maintaining an ongoing dialogue to ensure a safe working environment for field operators. The company required partner supervisors to participate in all safety training sessions and complete a safety work permit together before starting any tasks. Additionally, immediate corrective actions were taken to eliminate hazards in areas with unsafe storage of equipment or materials, or where accident risks were identified, ensuring a safer workspace.

In alignment with its corporate identity(CI), ILJI TECH aims to expand social contribution activities through volunteer initiatives centered on “people” and the “environment.” To this end, the company plans to organize regular and ad-hoc volunteer activities in collaboration with the local community, as well as internal volunteer programs. To encourage active employee participation, ILJI TECH intends to establish various policies, such as tracking volunteer hours and incorporating volunteer achievements into performance evaluations, supported by a dedicated system.

ILJI TECH conducts the “Love Meal Truck” volunteer activity at local community welfare centers, providing warm meals to residents in need. Additionally, the company makes regular donations to community institutions, such as senior and disability welfare centers, supporting marginalized groups in the community to help ensure their stable well-being.

ILJI TECH provides comprehensive support for the training and living environments of its athletes with disabilities, enabling them to focus solely on their sports without financial concerns. As a result, an athlete affiliated with ILJI TECH achieved outstanding results, placing 4th in both the individual and team events at the 2024 Ulsan Mayor's National Disabled Park Golf Tournament.

In March 2023, ILJI TECH signed an agreement with Gyeongju City for an investment of 40 billion KRW and job creation initiatives. This investment follows previous milestones, including the establishment of the first plant in 2014, a 65 billion KRW expansion and 30 new jobs at the second plant in 2019, and an 81.5 billion KRW domestic reinvestment and 50 new jobs at the third plant in 2021. This fourth investment aims to enhance both the company’s competitiveness and the local economy by incorporating advanced robotic technology across all processes.

ILJI TECH’s Board of Directors consists of two internal directors and three outside directors, with the board chaired by the President and CEO. As a decision-making body, the board represents the interests of shareholders and stakeholders, deliberating and making resolutions on major management issues from a mid- to long-term perspective.

Directors are appointed at the general shareholders’ meeting, with candidates selected by the Board of Directors and confirmed as proposals to be submitted to the meeting. During the selection process, the board considers each candidate's area of expertise, career background, and compliance with board regulations. Emphasis is placed on ensuring candidates possess professional knowledge and diversity in areas such as management, accounting, taxation, and law, as well as the independence to make decisions based on objective information. The Finance Division supports outside directors in fulfilling their duties.

To elect directors, ILJI TECH’s Board of Directors selects candidates and submits them as proposals to the general shareholders’ meeting for final approval. Candidates are appointed at the shareholders’ meeting following a systematic process that evaluates their expertise and experience while ensuring they meet eligibility requirements without any disqualifying factors.

ILJI TECH operates an Audit Committee within the board to evaluate and audit the company’s accounting practices and overall corporate management. The Audit Committee is composed of three outside directors who independently oversee the activities of the directors by attending board meetings. They are authorized to request relevant departments to submit books and related documents for all business matters and, if necessary, can receive reports on operational issues from the company and access management information through appropriate channels.

The Board of Directors convenes monthly for regular meetings and holds ad hoc meetings as needed. Agenda items are approved with a quorum of more than half of all directors present and a majority vote of those in attendance. For matters regulated by relevant laws, such as Article 398 of the Commercial Act(Transactions Between Directors and the Company), a two-thirds majority is required to prevent conflicts of interest. Additionally, to enhance participation, directors who cannot attend in person are allowed to participate in resolutions via telecommunication methods.

ILJI TECH adheres to a Code of Ethics, applying it as a standard for the actions and value judgments of all employees.

ILJI TECH is strengthening its ethical management framework to become a leading company in social responsibility, achieving sustainable growth based on trust and integrity.

ILJI TECH implements quarterly procedures to identify and review post-reporting period events and contingent liabilities, thereby preventing potential misstatements in financial statements or notes. Additionally, expenditures of an entertainment nature(such as gifts or travel) are managed through separate approval forms, designated authorizers, and controlled disbursement records to ensure that funds are correctly allocated for their intended purposes.

ILJI TECH has implemented an ethics pledge for all employees, covering ethics, anti-corruption, integrity, and fair trade compliance, in alignment with its Code of Ethics and Ethical Practice Guidelines. Through this pledge, employees commit to adhering to legal compliance, maintaining confidentiality, prohibiting bribery and solicitation, engaging in fair transactions, and pursuing personal development—establishing a foundation for mutual growth between themselves, the company, and stakeholders.

As a primary partner of Hyundai Motor, ILJI TECH has conducted transparency and ethics training for its employees. This training aims to deepen understanding of Hyundai Motor’s ethical management policies and systems, supporting the establishment of a culture of fair trade and ethics. ILJI TECH plans to provide regular, annual training sessions and also conducts its own ethics and compliance training programs.

ILJI TECH operates an online reporting center on its website, accessible to anyone for submitting reports. Anonymity is ensured to protect the identity of reporters, and all reports are kept confidential. Additionally, strict measures are in place to prevent any disadvantage to reporters.

In accordance with the Fair Trade Commission’s administrative rules, ILJI TECH annually signs fair trade agreements between primary and secondary suppliers. The company also encourages fair trade agreements between second- and third-tier suppliers, promoting a culture of fair trade and co-growth throughout the supply chain.

ILJI TECH conducts all contracts with its partners based on mutual fairness and equality, using the standard subcontract agreement issued by the Fair Trade Commission. This ensures that business is conducted in a fair and balanced manner with all partners.

Since 2022, ILJI TECH has conducted internal audits across 100% of its domestic sites to assess corruption risks. The evaluation results indicated that no significant risks were identified at any of the sites.

To promote anti-corruption and ethical management, ILJI TECH requires partners to commit to both an anti-corruption pledge and an ethics pledge. Through these commitments, ILJI TECH aims to foster a transparent and fair corporate culture and business practices in collaboration with all its partners.

ILJI TECH conducts annual assessments of its partners' ESG management practices, including evaluations of ethical management implementation. This process reviews the establishment of ethical management policies, any violations of fair contracts, and internal procedures for managing ethical issues, providing support to encourage ethical practices within partner organizations.

ILJI TECH ensures the value and dignity of all stakeholders and has established a Human Rights Management Declaration to express its commitment to human rights management. In line with its Human Rights Charter and detailed human rights principles, the company fosters a culture of respect for human rights. To support this, ILJI TECH has posted its human rights policy on the company intranet, ensuring that all employees have continuous access to this information.

ILJI TECH has identified three strategic goals and twelve strategic tasks to effectively implement human rights management. By regularly reviewing the status of human rights practices, the company is committed to fulfilling its social responsibilities grounded in respect for human rights.

ILJI TECH operates company-wide policies and systems for handling grievances from employees and stakeholders. Through grievance handling guidelines and a Grievance Committee, the company ensures that grievance processes are managed with principles and objectivity. Supporting its top priority of protecting whistleblowers, ILJI TECH offers anonymous reporting and accessible reporting channels. Confidentiality is strictly maintained, and any form of retaliation against reporters is strictly prohibited.

In line with its commitment to respecting diversity, ILJI TECH strives to create a workplace free from discrimination. Through proactive protection measures for vulnerable groups, the company fosters an inclusive culture where everyone can thrive together.

ILJI TECH conducts annual human rights management training for all employees, covering policies and systems related to human rights management, prevention of workplace harassment, gender equality, and other areas at risk for human rights violations. This regular training ensures that all employees are aware of and committed to upholding human rights.

ILJI TECH has established a foundational organization for information protection activities, safeguarding employees and facilities from unauthorized actions. The company operates information security management regulations to protect data processed, stored, and transmitted through information systems from threats like viruses and hacking, while actively eliminating vulnerabilities to ensure ongoing information protection management.

ILJI TECH participated in an information security assessment conducted by the Korea Internet & Security Agency(KISA) to objectively verify its information security management level. The assessment confirmed that all 14 items across 4 areas were in compliance, with no issues identified.

ILJI TECH has implemented a comprehensive information security system across the company to prevent security incidents at the source. Through regular infrastructure updates and inspections, the company is committed to protecting the valuable assets of both the company and its stakeholders.

In 2023, ILJI TECH conducted information security training sessions twice, once in the first half and once in the second half of the year. The training covered ransomware infection cases, preventive measures, and awareness of phishing email attacks exploiting social issues. Through real-life examples, employees were educated on potential security breaches in the workplace and learned how to proactively prevent such incidents.

ILJI TECH conducts annual record management inspections by department based on a systematic document management system. This process includes tracking, collecting, indexing, reviewing, and filing documents, along with regular document disposal to prevent information incidents in the workplace. In 2023, inspections covered 12 items across 14 departments, with all identified deficiencies fully addressed and corrected.

ILJI TECH implements information security measures to manage the distribution of product design drawings in its business dealings with partners, ensuring secure handling of sensitive information.

ILJI TECH conducts assessments to manage the information security levels of its partners. This process includes a self-assessment by the partner and a secondary evaluation by ILJI. Any identified deficiencies are addressed with recommended improvements to enhance security standards.

The audit team was consisted in accordance with KFQ's internal regulations. KFQ has no conflict of interest to the ILJI TECH that could threaten the impartiality of verification, aside from providing third-party verification services.

The completeness and responsiveness of sustainability performance represented in the Report have inherent limitations due to its nature and the methodology used to determine, calculate and estimate its performance. In accordance with the terms of the contract, we assessed the information and evidence provided by the ILJI TECH.