1. 新范式学院 Shenzhen, August 27, 2010 MOON, Kook Hyun New Paradigm Institute 雇佣整个人 "Employing The Whole Person"

2. The Trust Arch at NEWILHAN Way -2006 Seoul ↔ Inchon

3. by Hewitt Associates The Best Employer in Korea Korea Norm Y-K (Unit : %) 87 44 Social Value 88 51 Safety 63 32 Physical Environment 57 39 Motivation 72 28 CEO

4. In 1995, When Elected as CEO of YK Market Situation 1. Rushes of Global Giants into Korean Market - P&G, Unicharm, LG 2. Excessive Capacity / Competition 3. Consumer Shift to Imported Brands 4. Soaring Labor Rate 5. Militant Labor Disputes & Strikes

5. In 1995, When Elected as CEO of YK Market Share Trends P&G YK (%, Value Share) Hygiene Market 1988-1995

6. In 1995, Elected as CEO of YK The Question " Close Down & Sell Off Or Innovate!”

7. In 1995, When Elected as CEO of YK Customer Relations ㆍ No 2 Retailer: Delisted Key YK Products 6 months (Private) ㆍ No 1 Retailer: Delisted Key YK Products 6 months (Govt-Run)

8. Sustainable Competitiveness and Growth = Sense of Urgency X Group Dissatisfaction X Shared Vision, Value & Trust X Continuous Learning X Entrepreneurship From Everybody X 360°Constant Innovation X Leadership > Resistances to Changes / Innovations

9. Dramatic Shift: 1995-2007 Hygiene Market Share Trends P&G P&G YK YK

10. Dramatic Shift: 1995-2007 Infant Market Share Trends P&G YK P&G YK

11. Dramatic Shift: 1995-2007 1. P&G Withdrew from Korean Infant & Household Care Market 2. Unicharm Withdrew from Korean Market 3. YK Took Over Management of Kimberly-Clark North-Asian Companies 4. YK Rejuvenated KC Taiwan, KC China Operations

12. Sustainable Competitiveness & Responsible Growth The Secrets 1. 2. 3. 4. 5. 6. 7. Speed Value 360° Constant Preventive Responsible LLL vs vs vs vs vs Vs vs Scale Cost Top-Down Stop & Start End of Pipe Indifferent Diploma

13. “ In a knowledge economy where skill is based on knowledge, and where technology and economy are likely to change fast … the only meaningful job / business security is the capacity to learn fast . ” “ Responsible Functioning Society ” by Peter F. Drucker

14. Care People, Family, Community & Environment Environment “ People” Family Community Company People

15. Employ The Whole Person Hands, Head, Heart Re-engineer Work & Life Balance Innovation 1997 Work 2007 Giving Self- Realization Learning Health Family Leisure Volunteerism Accident Fatigue Misfortune Work

18. Rotating 1 Cycle = 16 Days Work 180 D/Year Work 3.5 D/Week 42 H/Week (3.5x12=42) Day Time 4D (12H/D) Off 3D + LLL 1D Night Time 4N (12H/N) Off 4D Y-K Leads 4 Crew + 2 Shift System

19. New Culture Created Trust & Life-Long Learning Culture (Hours/Year) * Total expenses are borne by Y-K 248 148 167 180 280 302 306 310 54 302

20. Learning Cafeteria Internally Built Professional Junior Engineer Senior Safety Quality RQP E & E SPARE P . M Export SAP R3 SMART WCM CAP Mechanical, G/C OJT, Floor Safety Tools II, L/I Maintenance II PROCESS Tools I, G/C Maintenance I Quality Awareness, SOP T/S, CONTROLLER Maintenance Machines COMPU-TER INTER- NET E-MAIL HOME- PAGE WORD EXCEL Team Building Volunteerism Health Welfare Communication Opportunity Analysis Non-Smoking Economics P/L CENTER LINE K/T( Problem Solving) Action Leader Innovative Leaderships Internal Lectures Power of Positive Thinking Technical & Vocational (60%) Social & Leadership (40%) Sales VIDEO News Team Meeting MBO T/S REVIEW Safety W/S Quality W/S WASTE/ DELAY MTG 7 HABITS English Movies Music Arts Articles New Paradigm Trends Creativity W/S Reading W/S

21. 360°Constant Innovation by All Knowledge Workers Total Suggestions Per Capita Suggestion

22. -Hygiene- N. America Gunpo Taejon <Safety Record> <Quality Record> <Productivity Record> Key Deliveries  A  B  C

23. NEWAYS on Everything 1995-2007 ERP System Now Past BPR Process Restructuring & Change Management Business & Organization SAP R3 KHMoon

24. NEWAYS on Everything 1995-2007 Now Past Supply Chain Management Leadership Centralized MBO & Self Control Empowered Just-in-Time Mistrust & Check WH S WH YK WH C Trust & Integrated S YK C

25. End of Pipe(EOP) Technology Re-use Re-cycle Treatment Dispose Energy Raw Materials Different Process Innovate process Waste Reduction at Source Reduce Resources & Waste Cleaner Technology DfE Y-K Focus NEWAYS on Everything 1995-2007 From “End of Pipe” to “Prevention at Source”

27. Be Proactive 3 1 2 Induvudual Success Group Success 4 Think Win-Win 6 5 7 Resharpen the Saw LLL: Life Long Learn Begin with the End in Mind Put First Things First Synergize Seek First to Understand Sharpen the Saw “ 7 Habits of Highly Effective People ” by Steven R. Covey

28. New Paradigm Sustainable & Responsible CEO Foster Lifelong Continuous Learning Develop Entrepreneurship Lead Constant Innovation Chief Ethics Officer Chief Environment Officer Chief Education Officer Chief Entrepreneurship Officer Sustainable Competitiveness and Responsible Growth Achieve Build Trust

29. Balanced & Integrated Efforts Environmental Performance Social Performance New Paradigm Care Triple Bottom-Lines Economic/Financial Performance

30. New Paradigm Initiative Moon, Kook-Hyun o YuHan-Kimberly (YK) o Kimberly Clark – North Asia o YuHan Schools o Presidential Special Committee on New Competitiveness o Forest For Life CEO, Chairman Group President Chairman Chairman Founding Chair 1995-2007 2003-2007 2004-2007 2004-2006 1998-2007

31. New Paradigm Corporate Social Responsibilities 1985 2001 Before plantation After 16 years “ Keep Korea Green ”

32. Closed Forest Tended Forest New Paradigm Social Enterprise “ Forest For Life ”

33. Excessive Working Hours Work & Life Balance + Life-Long Learning Job Creation (Ceiling) 2,500 2,000 1,500 1,000 500 4m 8m 12m 16m 20m Employee in Million +4M New Paradigm Opportunity for Korea Job & Value Creation Opportunity Working Hours

34. Knowledge Economy Manual Economy Temporary Worker Knowledge Worker Univ. Graduate WLB+JC LLL+VC Unsafe Existing Jobs 23 Mil New Paradigm Opportunity for Korea FlexSecurity and Future Jobs New Industry Constant Innovation Healthy Sustainable Future Jobs 28 Mil Continuous Learning

35. New Paradigm Adopted 2004-2007 By Industry 2004 2005 2006 2007 Total Manufacturing 5 14 28 12 59 Service 3 24 28 40 95 Public 5 11 20 21 57 Total 13 49 76 73 211

36. New Paradigm Adopted 2004-2007 By Size (Employee) 2004 2005 2006 2007 Total 300+ 7 12 19 7 45 300-100 2 15 25 23 65 99-1 4 22 32 43 101 Total 13 49 76 73 211

37. New Paradigm Performance 2004-2007 Growth Turnover Rate Annual Training Hours Job Created Ave M S P 29.12% 29.53% 31.46% 13.78% Ave M S P -55.8% -75.5% -21.4% -85.7% Ave M S P 10.92% 14.11% 9.54% 7.23% Ave M S P 549% 1092% 54.3% 274.2% Park Woo-Sung (KHU), 2006

38. 중국의 경제 한류 , 뉴패러다임 모델

39. New Paradigm Opportunity for China Knowledge vs Muscle +176 $ 3,000 $ 2,500 $ 2,000 $ 1,500 $ 1,000 $ 500 X X X X X X High Low DISPUTES X Gaps= OPPORTUNITIES OR 2010 2015 2020 2025

40. Q & A Thanks!