Workforce Restructuring Notice (1/2)
1. Thank you for the time and effort you have given toward development of this company.

2. Unfortunately, our internal and external situation has reached the point where serious decisions must be made in the interest of the Company's continued survival. Since 2017, the sales we have generated have been negative, and the reality is that sales are forecasted to continue declining steadily in the near future. We can no longer postpone restructuring of our workforce due to the lengthening period of deficits. We have passed the point where the Company can sustain business through wage increase freezes or through natural retirement alone. As a result, managerial dismissal procedures have begun in accordance with Article 24 of Korea’s Labor Standards Act.
3. We understand that it is through the cooperation and sacrifice of workers such as you that the Company has seen significant growth and development, but the conclusion is unavoidable that to get through the difficulties we face today, restructuring that results in personnel reductions is necessary.
4. However, while carrying out as much restructuring as needed, the company is committed to negotiating with the labor union in good faith as a way of overcoming this business crisis, regarding establishing desired retirement procedures, setting up ERP bonuses, selecting fair criteria for choosing the employees to be dismissed, etc. Through this, the Company will make the best choices possible, while considering the difficulties on each employee.
5. The Company will do its utmost to resolve the issue through voluntary retirements, and will turn to artificial restructuring like managerial dismissals only as a last resort.
6. Please note that if the Company cannot reduce the necessary number of persons affected by this restructuring, the Company will be forced to take action to restructure its workforce through managerial dismissal.
We kindly request that you continue doing your job to the best of your ability so that together we can get through this time that is difficult for both the Company and its employees.
Date: ______
Representative Director of 0 0 0 Korea

Announcement (2/2)

We would like to say thank you for the special efforts you have made toward the development of the company.

The company has worked hard to improve AAA business since it changed to direct control of its sales business in January 2004. Unfortunately, we have had two cases of AAA product recalls in November 2006 and May 2007. To make matters worse, the company suffered great financial damage due to one manager’s negligence at work in September 2007. Such repeated AAA product recalls and worsening of our AAA product reputation in the Korean market have made it increasingly difficult to maintain the current system of direct sales. Regrettably, we had to make the difficult decision to outsource current direct sales of AAA products to distributor sales starting September 2008.

Accordingly, the difficulty of the situation requires that we take measures to reduce the number of employees if we wish to survive in the Korean market. Before implementing these changes to the number of employees, we would like to consult with our employees (through employee representatives) concerning this issue. In this meeting, we would like to cooperatively conclude the most reasonable agreement on employment adjustment.

We kindly request that you continue to do your job to the best of your ability so that together we can get through this difficult time for the company and its employees.


Thank you.

July 14, 2008
Representative Director of 0 0 0 Korea