insight execution

Transcription

insight execution

execution
Kia Motors Sustainability Report 2008
231, Yangjae-dong Seocho-gu, Seoul, 137-938, Korea
Kia Motors _ Sustainability Management Team
TEL: +82.2.3464.5166 E-Mail: [email protected] / [email protected]
Thinking about tomorrow
www.kia.co.kr
www.kiamotors.com
Kia Motors Sustainability Report 2008
insight
Kia Motors
Sustainability
Report
2008
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intro
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Sustainability Report Framework
Message from the CEO
Stakeholder Participation
Materiality Analysis
Corporate Overview
Global Network
Management Philosophy and Vision
Sustainability Management
Corporate Governance and Board
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Disclosure on Management Approach
Operating Performance
Financial Highlights
Special Story: Design Management, Global Management
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e c ono mi c value
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e n v i r o nmental value
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Environmental Management
Eco-Friendly Product Development
Eco-Friendly Workplace
Environmental Management System
Eco-Friendly Supply Chain Management
Environmental Management Costs
Eco-Friendly Achievements in Domestic Workplace
Special Story: Countering Climate Change
s oci al value
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Employees
Business Partners
Customers
Community
Special Story: Communicating with Stakeholders
OUTRO
112 I Third Party Verification
114 I GRI (G3) / BEST Index
117 I Sustainability Report Committee
Thinking
about
Since 2003, Kia Motors has published its Sustainability Report for stakeholders annually. With this report, Kia aims to
demonstrate its on-going effort to better its sustainable management practices and report performance in sustainable
development initiatives to stakeholders. Kia Motors strives to fulfill its responsibilities to stakeholders who demand a
company that builds safer and more reliable vehicles while being mindful of the environment and minimizing the impact
of its automobiles. Sustainability Report 2008 provides a thorough analysis of the magnitude of the sustainability
development impact encompassing the areas of economics, the environment and society. With stakeholders’
participation, the sustainability report focuses on the subjects that address their particular interests.
This report outlines major achievements in sustainable development in 2007 with an aim to deliver a clear and accurate
picture of one year’s progress towards being a more sustainable company. Incorporating environmental consciousness
into all facets of product development, from production to logistics to supply chain management, Kia Motors continues
to grow as a socially conscious organization as detailed in this report.
Reporting Guidelines
Kia Motors Sustainability Report 2008 is based on the GRI’s* Sustainability Reporting Guidelines
2006 (G3) and BEST Sustainability Reporting Guidelines** from IPS. GRI’s criteria for the contents can
be found in the Outro of Kia Motors Sustainability Report under section “GRI (G3) / BEST Index.”
*
GRI: Global Reporting Initiative (www.globalreporting.org)
** The BEST Guideline (BEST Sustainability Reporting Guideline) was jointly developed by the
Ministry of Knowledge Economy(MKE), the Korea Chamber of Commerce and Industry (KCCI),
and the Institute for Industrial Policy Studies (IPS) and provides for five levels of reporting
rigor (Level 1 ~ 5).
Report Outline
Purpose _ This report aims to inform stakeholders of the results of sustainability management
from a balanced perspective while providing a thorough internal review of sustainability
management activities over the year. This report also serves to reexamine Kia’s current position and
evaluate future directions.
Accounting Standards _ Investment and expenditure of environmental and social costs are
approved by the Board of Directors, audit committee and external audit committee according to
financial accounting standards. The report reflects an investment rating system 2004 based on the
investment breakdown by investment type.
Changes _ There are no significant changes in standards for reported data from previous reports,
unless otherwise specified.
Document Verification _ This published report is based on the information provided by the
Sustainability Report Committee of Kia Motors and is created to impartially monitor the progress of
sustainable management within the company. This report is also verified by IPS in its report review,
onsite inspection and review of the Materiality Test according to the verification criterion outlined
by the GRI (G3) guideline and BEST guideline.
Tomorrow
Kia Motors is an entity continually evolving to better serve sustainable efforts. During the evolution of this report, there
are bound to be some growing pains such as the lack of thorough overseas business information in last year’s report.
Thus, extensive information has been added about our overseas business to better meet G3 guidelines. To grow
properly, Kia will create certain rules to which it will strictly adhere. At Kia Motors, full disclosure of sustainable
development in a transparent manner is a top priority.
By publishing the Sustainability Report, Kia Motors reflects on its current sustainability management status, looks back
to find ways in which to improve and looks forward to identify innovative solutions to better serve sustainable efforts as
a responsible corporate citizen.
Scope of the Report
THE REPORTING PERIOD AND SCOPE _ The report covers the period between 2005 and 2007. To
accurately depict the quantitative performance, the past three years of data were collected
(environmental data in year zero (2003) + every three years). Qualitative results from the 2007
achievements in this report have also been assessed. The reporting year coincides with the
company’s fiscal year that ends on December 31st of each year. This report’s monetary denomination
is based on Korean currency, the Korean won. All quantitative data is based on ton (t), kilogram (kg),
kilometer (km), square meter (m2), kilowatt (kW), and all other units are listed with their numerical
values.
Report Targets _ This report covers Kia Motors, subsidiaries of Kia Motors and joint overseas
corporations. Domestic facilities covered include Kia headquarters, Sohari, Hwaseong and Gwangju
plants, R&D Headquarters and Customer Service Centers. Additionally, overseas facilities covered
include Dongfeng Yueda Kia Motors, Kia Motors Slovakia plant, overseas technology research
centers and other overseas subsidiaries.
The 2008 report improved upon last year’s report by improving data collection methods and
filling in data gaps of overseas business activity.
Report Publication Schedule _ The English version of the Sustainability Report 2008 was
published on June 5th of 2008, and The Korean version was published on March 21st of 2008 and
distributed at the general shareholders meeting. The Sustainability Report is published yearly, and
this is its 6th edition.
For more information
Additional information can be found through the Internet and the Sustainability Management
Team of Kia Motors.
For more information about Kia Motors, visit www.kia.co.kr or www.kmcir.com/eng/index.
aspx
To view this report online, see englishdart.fss.or.kr (Repository of Korea’s Corporate Filing) or
www.kmcir.com/eng/index.aspx (Kia Motors website)
Contact: Sustainability Management Team, Planning Division of Kia Motors
TEL: +82. 2. 3464. 5166
E-Mail: [email protected] / [email protected]
04
Message from the CEO
Despite the unstable domestic and foreign business environment last year,
Kia Motors continued strengthening its business foundation to prepare for
future growth.
Business that adds economic value
2007 started with the long-term goal of establishing a brand identity unique to Kia
Motors. To that end, a design team was created in 2007 to build a brand identity
that stood above the rest and reflected a coherent design philosophy. Kia also
focused on improving profitability through cost saving measures to build a strong
stable economic foundation for the future. The recently erected production plant in
Slovakia, the second plant in China and new building in European facility allow Kia
to challenge the rapidly changing global market by increasing global production
and sales capacity. These pro-active steps also aid in the efforts to establish a strong
brand presence throughout the world. Kia Motors will leap onto the global stage
while solidly prepared for the future.
Business that promotes environmental soundness
Environmental sustainability emerged as a global challenge for 2007. This challenge
fueled the need for eco-friendly cars that not only bolster increased performance
and safety but also feature eco-friendly designs. 2007 also became a year that
accelerated the development of an eco-friendly lineup of cars with technological
features like high fuel efficiency and low greenhouse gas emissions. Kia is especially
pleased to be acknowledged for its untiring effort in bridging automobile
development with environmental sustainability. Last year, Kia Motors was selected
as the third “most environmentally friendly automobile manufacturer” in the
United States, the world’s largest automobile market. Kia Motors was also voted
into the top tier of brands in terms of new car quality in the U.S. and European
markets as well as the domestic market. As an environmentally responsible
company, Kia is combating climate change through the reduction of greenhouse
emissions and hazardous waste material in the production process. Kia Motors
strives to minimize the environmental footprint of its products.
We continue in our pursuit to become
a highly competitive company built on a foundation of trust
with an exemplary track record of sustainable management.
05
Socially responsible business
Under the banner “Moving Together with the World,” Kia Motors actively
participates in community outreach and service activities. In 2007, Kia ran social
projects that promoted a culture of motor safety and provided aid to persons with
disabilities. Kia also expanded its employee volunteer service program with
emphasis on community service. The company implemented a structured social
contribution system to materialize the principles of corporate social responsibility. It
also devoted its energies to revitalizing the local business community by providing
tailored help to meet their needs. To bridge the disparity between small- and
medium-sized businesses (SMBs) and large conglomerates, Kia actively partnered
with them to provide support to foster healthy relationships. For example, Kia
ventured into overseas markets as equal partners, provided early business
stabilization support, and conducted technology seminars and R&D Tech days to
bridge the technology gap.
Economic value, environmental soundness, and social responsibility serve as Kia
Motors’ underpinnings of its sustainability efforts. To bring stakeholders’ happiness
and ensure a sustainable future for all, Kia Motors will always treat these three
issues equally and attentively.
As a company founded on trust, Kia Motors will play a crucial role in society as a
model corporate citizen fulfilling its responsibilities. As a highly competitive
company, Kia Motors will emerge as a model of sustainable management for others
to emulate.
Nam-Hong Cho
Kia Motors President and CEO
March 2008
06
Stakeholder Participation
Sustainable management begins with a belief that everyone is part of a community. Kia
Motors is a corporation that is part of a larger business community in which it operates and
shares its responsibility within the community. As such, sustainable management must always
consider the stakeholders in all matters of corporate activity. As the corporation’s size
increases, it becomes easier to lose focus on the people who matter. Through a variety of
communication channels, Kia is able to collect feedback and determine the needs of its
stakeholders. The means by which Kia can keep an open channel of communication with its
stakeholders is demonstrated below.
Communication Channel with Stakeholders
Shareholders & Investors
Annual shareholders meeting
Customers
Customer satisfaction surveys
Addressing customer complaints
Employees
Report committee
Report survey
Kia Motors
Mutual business cooperation
Business partners’ feedback channel
Business Partners
Seminars, forums, survey participation
Analyzing issues and reaction
NGOs & Academia
Policymaking participation
Government
Stakeholders’ Opinion Survey on Sustainability Report 2007
Stakeholder opinions on Kia Motors Sustainability Report 2007, published on March 16th of
2007, helped identify key areas of improvement for the 2008 report. The 2007 report was
divided into six parts consisting of interesting parts, excellent parts, weakest parts, contents,
communication, and overall opinion. After, a sample of 67 stakeholders participated in a
survey to detail opinions expressed in each of those parts.
Reader Survey Results and 2008 Report Improvements
I 1 I Writing a report from a stakeholder’s perspective (with
I 5 I Report contents
footnotes to explain jargon)
The 2008 report cites corporate performance and plans based
Technical terms and internal jargon can be often confusing
on the principle of sustainable management while meeting
and misunderstood. Confusion was minimized with the
the guideline requirements.
Sampling of stakeholder survey
• Employees: 69%
• Business Partners: 4%
• Customers: 6%
• Sustainability Management
Experts: 19%
• Miscellaneous: 2%
addition of footnotes and detailed explanations of technical
terms and internal jargon used in the report.
I 6 I More balanced report (relatively insufficient data in
sections beside environmental value)
I 2 I Sustainable management vision and objectives
Entries on product development (including environmental
The Materiality Test was applied to evaluate the future
value) and social value that were insufficient in last year’s
direction of Kia’s sustainable management efforts. Contents
report according to the stakeholder survey were also
of sustainable management activities were expanded at the
strengthened.
Excellent Contents
50%
30%
20%
beginning of the report. Also, the company's strategy,
43%
40%
performance status and business management goals in each
I 7 I Visually aided report (including graph)
10%
section of the report were expounded.
Graphs, information in Tp form and a special story to improve
0%
readability were added.
26%
16%
Economy
15%
Environment
Society
Product
I 3 I Labor relations-related issues
An in-depth report of social performance in the social value
I 8 I Supplementary information in comparison with other
section of the sustainability report was also included.
industries
Information related to labor issues will gradually be added.
A report with a more balanced view was produced by adding
50%
external evaluations of the company’s and industry’s
40%
activities.
30%
I 4 I Corporate governance
More detailed information on business ethics and corporate
governance were included.
Weak Contents
20%
46%
22%
18%
14%
10%
0%
Economy
Environment
Society
Product
07
Materiality Analysis
The Sustainability Report must incorporate relevant issues from both the company and its
stakeholders. Kia believes that management activity centered around stakeholders’ interests
is the key to becoming a company that opens the doors to a sustainable future. The
Materiality Test allowed key issues to be identified, which were then used to create strategies
to improve sustainability development. In addition, Kia clearly reported current plans and
activities in response to the Materiality Test in the Kia Motors Sustainability Report 2008.
What is the Materiality Test?
First, materiality should be defined. According to the GRI’s
determine the material issues. The IPS Materiality Test ModelTM is a
Sustainability Reporting Guideline, materiality is defined as “the
5-step test model subdivided into internal policies, norms and laws,
threshold at which an issue or indicator becomes sufficiently
stakeholder feedback, industry benchmarks and media research. IPS*
important that it should be reported.” Simply, the materiality test is
created the IPS Materiality Test ModelTM in December 2006 to test
a test to see if an issue or indicator is relevant enough for this report.
and derive material issues that match characteristics and present the
Kia Motors defines the relevant issues which must take priority and
condition of each industry.
identified as high risk and/or high interest to stakeholders. In
TEST
TEST
TEST
TEST
* One of the functions of IPS is to help form strategies for sustainable development.
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1
4
3
Internal Concerns
High Reporting Priority
TEST 1 Internal Policies
TEST 3Stakeholder Feedback
Material Issues (2008)
Sustainable Management
• Stakeholder Feedback
• Sustainable Management Planning (Results & Goals)
Economy
Economy
(Medium)
External Concerns
+
(high)
2Norms and Laws
3Stakeholder Feedback
4Industry Benchmarks
5Media Research
External Concerns
addition, Kia Motors employed the IPS Materiality Test ModelTM to
–
• Domestic and Foreign Market Expansion
• Financial Performance
• Strengthening Overseas Sales
• Brand Value
Product Development
Product Development
• Reusability (Recycling) • Emission Reduction
• Alternative Fuel Vehicle Development
Socially Responsible Management
• Product Safety
• Stable Employment
• Discrimination-Free Workplace (Human Rights)
• Labor Relations
• Workplace Safety and Health
• Community Service Projects
• Contribution to the Community
• Partnership Support
• Fair Trade
• Environmental Law Compliance
• Reduction of Harmful Gas Emissions into the Environment
• Climate Change Countermeasures
• Cleaner Production Technology
• Environmental Management System
• Environmental Costs (Accounting)
Economic Achievement
• Executive Leadership • Corporate Governance
• Management Philosophy and Vision
• Business Process Innovation (Reorganization)
• Business Ethics
Economy
Economy
• Indirect Economic Impact
• Risk Management
Product Development
Product Development
• Product Development Strategy
• Better Fuel Economy
• Work and Life Balance • Employee Volunteer Work
• Customer Satisfaction (Customer Service)
• Leadership Training
• Work and Life Balance
• Employee Training
• Environmental Protection • Eco-friendly Product Acquisition
• Employee Well-being
• Management of Transportation and Logistics Impact
on Environment
• Conservation of Energy and Resources
–
(Medium)
Internal Concerns
(high)
+
08
continuance
As part of the journey, weathering both the good and bad is expected.
requires driving through the rain while hoping for clear skies ahead.
Sometimes, the journey
Kia Motors has made it its goal to
not look for short-term gain, but instead focus on steady long-term gain. Even in harsh weather, Kia
continues to raise brand awareness and make its way towards a brighter future through continuous
investment.
09
Reaching the destination is not necessarily the goal.
pass.
coexistence
Sometimes, it’s best to move aside to let others
Because the road is shared, it is only courteous to share with others. These little acts of kindness
gather and are then “paid forward.”
In the end, the journey goes faster in the right direction.
Kia Motors remembers that in all its activities, stakeholder happiness precedes all other priorities.
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conservation
Along the road, there are a number of other creations that share the same journey.
portant to clear obstacles for others on the way.
As such, it is im-
When choosing a path wisely, looking back on the
road just traveled provides insight into how their journey is just as precious as one’s own.
The dream
of a peaceful relationship between the automobile and the Earth is what drives Kia Motors forward.
11
Ahead of the tunnel there is a light but it does not symbolize the end.
there are often rainy days.
ty of the land along the way.
The journey continues on and
When traveling with others, the journey can slow so as to admire the beauKia Motors’ aim is not to travel the fastest or the furthest, but rather, it
is to ensure an enjoyable journey for everyone.
aspiration
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Kia Motors Sweden AB
Eastern Europe / CIS Regional Headquarters (Moscow, Russia)
Kia Motors Ireland
Kia Motors UK Ltd.
Kia Motors Belgium
Kia Motors Deutschland (Frankfurt)
Kia Motors Europe / Kia Motors European R&D Center / Kia Motors European Design Center (Frankfurt, Germany)
Kia Motors Poland
Kia Motors Czech s.r.o
Slovakia Manufacturing Plant / Kia Motors Slovakia(Zilina, 300,000 units annual capacity, 2,601 employees)
Kia Motors Hungary
Kia Motors France
Kia Motors Austria
Headquarters – Seoul
(32,977 employees, three manufacturing plants, two research facilities,
20 service centers, 340 sales offices)
Kia Motors Central Europe
Kia Motors Spain
Kia Motors Japan
Dongfeng Yueda Kia
China Manufacturing Plant
(Yancheng, Plant one & two with 3,367 employees)
Middle East & Africa Regional Headquarters (Dubai, UAE)
Asia Regional Headquarters (Kuala Lumpur, Malaysia)
South Africa Office
Kia Motors Australia / Pacific Regional Headquarters
Kia Motors New Zealand
Company Overview
Company Introduction
Since its establishment in 1944, Kia Motors has led the development of the then infant Korean auto industry and contributed to
building a strong national economy over the past 63 years. In 1975, Kia Motors’ first passenger car, the Brisa, became the first
Korean vehicle to be exported, which opened the floodgates to Korean exports. By 2000, through the establishment of a global
sales network, Kia has laid the groundwork to expand to every corner of the global market.
Domestically, Kia revitalized the local business community by creating employment, purchasing properties and partnering with
businesses to open overseas markets. In addition, Kia worked with local residents to find tailored solutions to each of the local
community’s problems. Through community service, Kia continually seeks ways to co-exist and cooperate with the community.
Kia Motors communicates tirelessly with the community to fulfill its duty as a corporate citizen. With concern for the
environment, Kia dedicates its energies and resources to becoming a part of the sustainable solution. Kia will build an unshakable
trust with customers by creating more value for customers who in turn will help the company grow. Ultimately, Kia Motors will
usher in a brighter sustainable future with its dynamic line-up of vehicles.
Company Status (as of December 31, 2007)
Company
Kia Motors
Key Executives
Mong-Koo Chung / Eui-Sun Chung / Nam-Hong Cho
Industry
Cars and trailer manufacturing
Product
Cars and auto parts
Headquarter
231, Yangjae-dong, Seocho-gu, Seoul, Republic of Korea
Established
December 11, 1944
Total asset
12 trillion and 853.8 billion won
Capital
1 trillion and 848.7 billion won
Employees
32,977
* Additional information is available on the web or Economic Value section of this report.
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Global Network
Corporate Production
Corporate Sales
Kia Motors Canada (Toronto, Canada)
Regional Headquarters
Regional Offices
Kia Motors Technical Center (Ann Arbor, Michigan)
Kia Motors Design Center (California)
Others
Kia Motors America (Irvine, California)
U.S. Manufacturing Plant / Kia Motors Manufacturing Georgia
(West Point, Georgia / under construction / expected annual capacity of 300,000 cars)
Central & South America Regional Headquarters (Miami, Florida)
Major Facilities
Domestic
R&D Namyang R&D Center, Mabuk R&D Center
Production
• Sohari Manufacturing Plant: Annual Output 350,000 cars
(Carnival/Sedona and Pride/Rio models)
• Hwaseong Manufacturing Plant: Annual Output 600,000 cars (Sorento, Mohave/
Borrego, Cerato/Spectra, Opirus/Amanti, and Lotze/Optima/Magentis models)
• Gwangju Manufacturing Plant: Annual Output 420,000 cars
(Carens/Rondo and Sportage models, trucks, buses and military vehicles)
Sales 17 Regional Offices, 340 Regional Sales Office, 424 Dealerships, 13 Shipping Offices
Service 20 Regional Service Centers, 811 Service Partners, 252 Various Service Providers
Overseas
R&D U.S. Technical Center, U.S. Design Center, Japan R&D Center, Europe R&D Center and
Europe Design Center
Production
• China Manufacturing Plant 1 & 2: Annual Capacity 440,000 cars (Rio, Sorento, Optima/
Magentis, Carnival/Sedona, Cerato/Spectra and Sportage models)
• Slovakia Manufacturing Plant: Annual Capacity 300,000 cars
(cee’d and Sportage models)
• Georgia Manufacturing Plant: Annual Capacity 300,000 cars (Under construction)
Sales 165 Countries, 17 Subsidiaries, 148 Dealerships, 3,864 Dealers
Service Located at Dealerships
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Management Philosophy
and Vision
Aim for the Apex
of the World
Innovation
for
Humanity
Pursuing Customer
Satisfaction
Reforms and Challenges
Aim for the Apex of the World
Reforms and Challenges
Pursuing Customer Satisfaction
Kia Motors will become a world-class
Kia will abandon preconceived notions
Customer satisfaction is the final goal of
brand and overtake the position as the
and practices. The company will find
Kia Motors. Trust and confidence is
apex of the global automotive industry.
creative and innovative ideas to pursue
earned by providing the best
In addition, Kia will build an ideal
its long-term vision of creating a society
technology, exemplary product quality
structure that entwines both qualitative
that respects the environment and
and excellent customer service.
and quantitative growth.
humanity. Kia will work to advance a
corporate culture that contributes to the
prosperity of humankind.
15
Management Philosophy
The spirit of creative challenge is the underlying mentality and principle at Kia Motors. It is
the driving force behind the continued success of Kia Motors today and is what will allow an
active response to the changing business environment. With this spirit of creative challenge,
Kia hopes to create a rich and bountiful experience for its shareholders, customers,
employees, partners and the community.
Business Policy
Management Confidence
Kia Motors facilitates business activities and increases the effectiveness of management by
fostering a mutual trust between employees and management. Kia believes that strong
confidence formed within the company will strengthen the company’s competitiveness and
organizational culture.
In turn, strong competitiveness and culture will boost operational efficiency, product
quality and customer service. Through strong management confidence, Kia insures worker
productivity, superior products and service, and stronger stakeholder confidence in the
company. In 2007, with the strong backing of its stakeholders, Kia took giant steps toward
becoming a world-class brand and competitor.
Worksite Management
Kia Motors enhances employee satisfaction and product quality through rapid decisionmaking and immediate response to issues or suggestions that may arise in the field.
In 2007, through management of a global network, including regional sales headquarters
and overseas factories, Kia was able to provide early stabilization support and increase sales
capability. As a result, Kia’s ranking in IQS by JD Power and Associates jumped 12 spots from
2006 to 12th place with 125 points.
Transparent Management
In an effort to achieve sound governance and transparent management, Kia created a Board
of Directors, where the major corporate decisions are made, and established “checks and
balances” of management. To secure transparency of the decision-making process, corporate
governance was institutionalized. Kia Motors’ corporate governance is made up of the Board
of Directors, Audit Committee, Ethics Committee, and the Board Nominating Committee.
In 2006, Kia Motors received public attention due to a lawsuit against its executives for
their dealings with the management of company’s funds. Using this as an opportunity to
reflect, Kia Motors placed stronger re-emphasis on the fairness and transparency of decisionmaking processes and proper business ethics.
16
Sustainability Management
Kia Motors began sustainability management based on the pressing need for accountibility
for the environment, now and in the future. In the past, the need for a more convenient
mode of transportation was the primary focus that shaped the automobile industry. However,
recent trends reveal the need for eco-friendly alternatives. In the 21st century, expectations
have changed and demand from the automotive industry to develop vehicles that maximize
convenience while minimizing their environmental impact is rising. All companies, regardless
of the industry, must exercise responsibility in generating profit and fairly distributing
revenue while keeping stakeholder interests in mind.
As part of the global automotive industry, Kia Motors proactively practices Environment-
ally Sound & Sustainable Development (ESSD) to fulfill its responsibility as a corporate citizen.
As such, Kia Motors hopes to grow with the community in a responsible manner. To help
achieve this goal, Kia created three models of sustainable development: environmental
management, community outreach and service, and business ethics.
Sustainable Development Model
Sustainable
Management
Materialization
of Love for Humanity
through
Automobiles
Community Engagement
Business Ethics
Committee Organization Chart
Economy
Community
• Planning Office • Finance Center
• Management Support Division
• Procurement Division
• Domestic Sales Division
Product Environment
• Overseas Sales Division
• Environmental Technology Institute
• Namyang R&D Center
Production Environment
• Sohari Manufacturing Plant
• Hwaseong Manufacturing Plant
Sustainable
Management
Supervision
Sustainability
Management Team
Social Responsibility
• Office of Planning & Coordination
• Management Support Division
• Regional Offices
• Gwangju Manufacturing Plant
• China Manufacturing Plant
Business Ethics
• Slovakia Manufacturing Plant
• Audit Office
• A/S Division
• Production & Development Division
All divisions of Kia Motors recognize the importance of sustainability management. Every
year, each department selects personnel to give a briefing on the current status of Kia in
improving the system one step at a time.
17
Sustainable Development Model
Environmental Activity
Guideline
Kia Motors’ environmental management aims to improve economic value and environmental
sustainability simultaneously. Kia sets environmental management as top priority for
sustainable management and seeks to expand the program. In June 2003, Kia Motors
Kia Motor's long-term
unveiled a global eco-friendly management initiative called “ECO-GT5 2010”(Top 5 Global
environmental management
Environmental Automobile Manufacturer by 2010). This initiative has laid a solid foundation
strategies
for creating sustainable values as Kia Motors fulfills its economic, environmental and social
Environmental Action Plan;
responsibilities. ECO-GT5 2010 consists of environmental policy, environmental activity
Three rounds in three years
guidelines, environmental goals, specific objectives, and implementation plans. The
First round
Environmental Activity Guideline is comprised of the three-stage roadmap as shown below.
2003-2005
Establishment stage
for Environmental
Goals of Environmental Management
Management
(Introductory stage of
Sustainability Management)
Building environmental
management bases focused on
domestic business sites
Environmental
Management
Product Environment (R&D)
Business Environment (Marketing, A/S, Sales)
Second round
2006-2008
Extension Stage for
(Establishment Stage for
Reinforcing organizational
competencies through
extending environmental
management of all business
sites at home and abroad
Production Environment (Production, Procurement)
ENVIRONMENTAL DECLARATION
ENVIRONMENTAL POLICIES
1. Share responsibility for the present
Concern for the environment is at the core of
and future.
Kia’s business management activity. As a global
2. Make efforts in meeting environmental,
stakeholder, Kia will do all it can to fulfill its social
economic and social demands.
and economic responsibilities.
Third round
3. Strive to preserve life, diversity and the
Kia will actively lead the efforts in developing a
2009-2011
Earth’s beauty.
strong economy and protecting the environment.
Growth stage for
4. Respect nature, and economic and
Respect for the environment, present and future, is
(Extension stage for
social justice.
what motivates the company.
Environmental Management Operation System
P
ct
la
n
A
Environmental Management Strategy and Goals
Kia Motors
Environmental Management Plan Implementation
D
ec
k
Improvement and Application
o
Ch
Pursuit of sustainable growth
through environmental
management
Environmental Analysis and Performance Evaluation
18
Business Ethics
Working towards a more sustainable future is one of the responsibilities of corporate ethics.
Using a corporate responsibility model of fair distribution of earnings, Kia Motors adopted
the principle of fairness and impartiality as a model for sustainable management. Kia has
combined two corporate principles, building a trustworthy and transparent business, and
incorporates them into its corporate ethics code as a guideline for sustainable development.
Kia Motors’ ethical practices will serve as a medium to correct and improve faulty corporate
customs and cost structure to increase overall competitiveness and Economic Value Added
(EVA®). The ultimate goal is to pursue business ethics that value stakeholders.
In an effort to become a trustworthy and transparent company, Kia adopted its code of
ethics in 2001 and issued a code of conduct for all employees. To ensure ethics compliance,
Kia conducts mandatory online education for employees and created a Cyber Audit Office to
enforce and oversee compliance.(1)
Structure of Business Ethics
Sections
Institutionalized Code
Kia Motors’ Code of Ethics
Regulation of Workplace Ethics
Employee Ethics Compliance
Cyber Audit Office
Cyber Call-in Center
Production and Distribution of Employee Ethics Guidelines
Ethical Guideline Publication and Cyber Ethics Education
Adoption of
Code of Ethics
•Contribution to Society and
Country
Code of Ethics
Adoption
By raising its competitiveness to
world-class levels, Kia has been given
the great responsibility to guide the
growth of its national economy for the
21st century.
Regulation of
Workplace Ethics
•Promotion of Shareholder and
Customer Interests
•Respecting Human Rights and
Fostering Future Talent
•Establishing Respectable
Regulation of
Gifts and Bribes
Partnerships between Partners
•Establishing Transparent
Management
Strict Ethical
Compliance
in Acquisitions
Department
( 1 )
More information on the Cyber Audit Office can be found in the Social Value section of this report.
19
Kia Motors believes that community involvement is a natural extension of corporate social
responsibility as an active member of the community. Community service demonstrates the
company’s appreciation for its stakeholders and the community who have supported its
growth and made it possible for Kia’s current success. Kia Motors believes that the community
must be healthy in order for sustainable development to be successful. For this reason, Kia
adopted community outreach and service as its third criterion in its sustainable management
policy and continues to expand the scope and scale of the activity.
In 2005, Kia started a community service slogan, “Moving Together with the World,” to
move towards a better future with neighbors and the greater community. Kia’s community
activities encouraged comprehensive future-oriented activities as social welfare,
environmental preservation, next-generation growth support, cultural arts, healthy living
promotion and international exchange. Of those, Kia further focuses on motor safety and
convenient motor use within its community service activities. For example, Kia Motors started
the “School Zone Keeper Campaign” and other traffic safety campaigns to raise public motor
safety awareness. Also, the “Easy Move” vehicle development and accessibility campaign
creates a friendly transportation environment for persons with disabilities. Through these and
other programs, Kia employees have volunteered their time and energy to reach out and
serve the community. With the launch of overseas production facilities in 2007, overseas
headquarters and production facilities conducted community service in each of their
respective communities to reach the greater global community. Every part of the
organization, internally and externally, has taken active part in the effort to make sustainable
development successful.
Expansion of Motor Safety Culture
•Child Safety Motor Education
Expansion of
Motor Safety
Culture
•School Zone Keeper Campaign
•Support Program for Traffic Accident
Victims and Surviving Children
Improving Motor Environment for the
Disabled
•Easy Move Vehicle Development and
Employee
Volunteer Work
Kia Motors and its
Affiliates
Improving
Motor
Environment
for the Disabled
Accessibility
•Improving Accessibility
•Supporting Disabled with Special Shoes
and Safeguards
Regional Social Projects
•Cultivation of the Environment and
Young Talent
•Development of Local Community
Regional Social
Projects
Employee Volunteer Work
•Social Volunteer Groups
•Volunteer Work by Affiliates
20
Corporate Governance
and Board
Kia Motors’ corporate governance is a system created to insure soundness and transparency
of the corporation and manage the interest of Kia executives, shareholders and employees.
Kia Motors’ governance structure consists of the Board of Directors, the Board Committee
who voices the opinion of the external stakeholders, Audit Committee who closely watches
over the corporate management, the Board Nominating Committee, and the Ethics
Committee.
The Board of Directors and Committees
Audit Committee
Board of
Directors
Ethics Committee
Board Nominating Committee
Board of Directors
The Board of Directors is responsible for oversight and supervision of the overall affairs of the
company. More specifically, the Board of Directors not only undertakes the duties of the
articles of association as well as the duties entrusted by general meeting of shareholders, but
also oversees the company’s overall policy and management of the business. Additionally, the
board will appoint one of its members to be the chairperson of the Board to supervise
management. The Board of Directors consists of four inside directors and five outside
directors. The Board will meet regularly at appointed times and more meetings will be held as
needed.
Performance-oriented Compensation _ Kia Motors CEO, executives and senior managers
receive annual salaries which are determined by both personal achievement and
performance.
Committee
Audit Committee _ The Audit Committee consists of four outside directors. The Audit
Committee’s role includes monitoring the fairness and transparency of business practices,
auditing the company’s operations, and investigating the company’s assets to assess business
performance. The Audit Committee also discusses the minutes of the annual shareholders and
Board of Directors meetings.
Board Nominating Committee _ The Board Nominating Committee consists of two outside
directors and two inside directors. The two outside directors are chosen at the annual
shareholders meeting.
21
Ethics Committee _ The Ethics Committee consists of five outside directors. The main goal of
the Ethics Committee is to maintain fair and transparent business practices. To achieve that
goal, the Ethics Committee reviews the "Monopoly Regulations and Fair Trade Law," enforces
the stipulation on favoritism in personal relationships in the "Securities Exchange Act," and
checks for compliance with the Fair Trade Voluntary Inspection. The social front of the Audit
Committee’s responsibilities also includes reviewing and evaluating community engagements.
Lastly, the Ethics Committee reviews the Code of Ethics and Code of Conduct within the
company and makes amendments to the Codes when deemed necessary.
Board Structure
Composition Name
Internal
External
as of December 31, 2007
Position
Remarks
Mong-Koo Chung Member of Board Nominating Committee
Chairperson of Board
Eui-sun Chung
Member of Board Nominating Committee
Nam-Hong Cho
-
Hee-Bong An
-
Jong-Chang Kim
Member of Board Nominating Committee,
Chairperson of Audit Committee, Member
of Ethics Committee
Jong-Am Chung
Member of Board Nominating Committee,
Auditor, Chairperson of Ethics Committee
Yul Choi
Auditor, Member of Ethics Committee
Dong-Sung Cho
Auditor, Member of Ethics Committee
Gun-Soo Shin
Member of Ethics Committee
Shareholders’ Rank as of December 31, 2007 (over 5% Ownership)
Rank
Shareholder
1
Hyundai Motors
2
3
Number of Shares
Ratio of Shares
134,285,491
38.7%
Credit Suise Financial
29,583,586
8.5%
Treasury Stock Union
24,719,219
7.1%
2007 Membership Status of Corporate Associations
NO Association
Membership Grounds NO Association
Membership Grounds
01 Federation of Korean Industries
Mandatory
09 Fair Trade Commission
Necessary
02 Korea Automobile Manufacturers Mandatory
10 Korean American Friendship Necessary
Association Association
03 Korea International Trade Association
Mandatory
11 Korea Association of Machinery 04 Korea Economic Organization Council
Mandatory
Industry
05 Korea Chamber of Commerce & Mandatory
12 Ethical Management Forum
Necessary
13 Korean Standards Association Necessary
14 Korea Logistics Association
Necessary
15 Korea Association of Industrial Necessary
Industry
06 Korean Federation of Science and Mandatory
Technology Societies
07 Korea Industrial Technology Mandatory
Association
08 Korea Management Association
Designers
16 Korea Council for Sustainable Necessary
Necessary
Development
Necessary
For a car, the road is where it will find its true existence.
For a business, sustainable growth is the path that will add meaning to its existence.
economic value
When 20,000 moving parts come together, life of the automobile
begins. The power that moves the world comes from those that
gathered under the name of Kia Motors from all corners of the world.
The first mission of the company is generating profits. But Kia is not
only looking to add growth in the few sparks of visible performance.
Instead, Kia sets its goal in tune with long-term sustainable
development. Korea, China, Slovakia, the United States, Europe and
Asia all gather to create the Kia Motors that is known around the world
today and are paving the way for the future.
24
Disclosure on
Management Approach
Kia Motors is focusing on enhancing profitability, strengthening global management,
introducing flexible manufacturing systems and innovating corporate culture to realize
its goal of creating sustainable economic value. 2007 was an especially important year as
Kia announced the launch of its design management system, through which Kia will
enhance its brand value and aggressively roll out a differentiated Kia Motors design
identity.
Key achievements and plans
Innovation for humanity (Innovation for customers)
Business
profitability as
top priority
2007 Performance
• Promotion of Total Cost
Innovation (TCI)
• Quality improvement:
IQS rises 12 spots
• Erected a solid
foundation for future
growth
Laid foundations
for global
management
+
2008 Plans
• Secured successful entry
into the new car market
• Focused on
strengthening total
sales capacity
2007 Performance
• Established production
plant in Slovakia
• Established second
production plant in China
• Established new Kia
Motors Europe
headquarters
2008 Plans
• Strengthen global
capability
• Raise overseas
subsidiaries’ profitability
Build a flexible
manufacturing system
+
2007 Performance
• Early operational
stabilization and met
mass-production
schedule deadline
• Secured engine and
transmission production
flexibility
2008 Plans
• Improve operating
capacity, HPV (1) and
organizational
efficiency (2)
• Secure cost
competitiveness
Critical issues
Financial Performance
In 2007, Kia Motors recorded operational losses due to a worsening business environment
that included high oil prices and a strengthening Korean currency. However, the business
loss contingency buffer created in 2006 and operating profit from the fourth quarter of
2007 allowed Kia to fortify the company’s financial health to respond to any changes in
the volatile business environment. A variety of new cars announced for 2008 will further
improve Kia’s financial performance.
Brand Equity
In 2007, the domestic and international communities recognized Kia Motors’ highly
competitive product quality by bestowing high marks in product quality and safety
evaluations. Kia has strengthened its design competitiveness and continuously improves
quality, which will ultimately translate into stronger brand recognition.
(1) (2)
HPV (Hour per Vehicle): The time it takes to build one car
Organizational efficiency: the effectiveness of human resources management
(for example: if efficiency is below 60%, then 1.67 workers will do the work of 1 worker)
Innovate corporate
culture
+
2007 Performance
• Fostered active corporate
culture through bulletin
board encouragements
• Established and spread
Kia Motors vision
2008 Plans
• Revitalize organization
and improve corporate
culture
25
The automotive industry’s activities have a wide ripple effect on other industries, ranging from
materials and equipment, to parts and manufacturing, transportation, sales and maintenance, oil,
insurance, and banking industries. The automotive industry has potential for high economic
growth and job creation as a leading labor-intensive national industry based on economies of
scale. In 2007, the domestic automotive industry and related industries employed an estimated 1.5
million persons, which represented 10% of total national employment. Last year alone, the
domestic automotive industry accounted for 14% of total national exports, amounting to
approximately 17% of the national tax revenue.
Hyundai and Kia Motors comprise Korea’s largest national automotive group and together
hold 75% of the domestic automobile market. As the leader of the Korean automotive industry,
the Hyundai-Kia Automotive Group is the driving force behind the nation’s economic
development. As a convenient mode of transportation for goods and people, the automobile
sustains modern life and economic activities. Kia Motors is Korea's second largest automobile
manufacturer with a sales network and production bases spanning 165 countries. As a global
company, Kia Motors has played a major role in the sustainable growth of national and
international economies by raising transportation convenience while minimizing its impact on the
environment. Through responsible corporate management at the national and international
levels, Kia will grow together with its stakeholders.
Key management activities and achievements in 2007
Kia Motors faced many difficulties in 2007 amidst a harsh business environment that was plagued
by high oil prices, currency exchange volatility, and the sub-prime crisis in the U.S. Even during this
difficult time, Kia maintained its focus on long-term sustainable growth and strengthened its
foundation for the future.
Kia Motors’ business activities in 2007 can be summarized into two parts: enhancing
profitability and laying the groundwork for future growth. Last year, Kia Motors addressed its goal
of enhancing profitability by improving product quality, boosting productivity and reducing costs.
Kia’s focus on product quality resulted in receiving top marks in quality surveys conducted by
independent research firms in the United States and Europe, thereby placing Kia’s quality in the
top tier among the world’s automakers. On the service front, Kia placed utmost attention on
26
24
25
32
33
securing “customer satisfaction” as a top priority. As a result, the Korean Standards Association’s
'Korean Call Center Service Quality Index' survey ranked Kia’s customer service in first place, while
the 'Korean Service Quality Index' survey ranked Kia’s overall customer service in first place for the
fourth consecutive year. (1) Kia is becoming a company known for its customer service and
satisfaction. In addition, Kia introduced a design management system in order to secure
competitiveness and differentiate Kia Motors’ vehicles from the rest of the pack.
With the core business objective of strengthening international competitiveness, Kia erected
the Slovakia plant, a new European headquarters complex and a second production plant in China.
These facilities have secured the base for stable global production and sales capability for the
future.
Efforts made in 2007 have become a stepping-stone for 2008. Kia has laid out the key
challenges of “establishing a sales-oriented management system,” “securing profitability,” and
“strengthening core competencies” in 2008. The company’s goals for 2008 are the delivery of 1.69
million vehicles at home and abroad while achieving 23 trillion won in sales and operating margin
of 3%. With the release of the Borrego (Mohave) in January 2008, Kia is set to launch its restyled
Lotze (Optima/Magentis), next generation Spectra (Cerato), and all-new Soul for 2008. Two new
models are further planned for release in 2009. Enhancing its product lineup with the launch of
new models, Kia has orchestrated a turning point for sales recovery.
Kia will innovate management to ensure sustainable growth regardless of the business
environment. In 2008, the design management system will be leveraged to raise brand equity. In
order to establish an excellent workplace for employees,(2) the Great Work Place (GWP) program
was initiated to form close personal relationships among employees, the company’s first corporate
customer. In addition to building efficient overseas networks, Kia plans to conduct various
employee-training programs to strengthen global capacity in every sector of its business.
Annual production
Total
Domestic plants
Unit: Vehicles
1,200,000
1,100,000
1,369,278
1,400,000
1,215,502
1,200,000
1,150,397
1,118,582
1,100,000
1,000,000
1,000,000
900,000
900,000
800,000
800,000
700,000
700,000
600,000
600,000
500,000
500,000
400,000
400,000
300,000
300,000
250,696
200,000
100,000
200,000
110,071
120,480
387,579
345,806
236,628
145,158
148,569
105,538
100,000
0
0
2005
(1) (2)
1,369,278
1,300,000
1,270,877
1,105,431
Unit: Vehicles
Overseas plants
1,400,000
1,300,000
2007 production by plants
2006
2007
Sohari
Hwaseong
Gwangju
Seosan
China
More information on customer services can be found in the social value section of this report.
Great Work Place refers to a workplace with three essential elements: a place where mutual trust between labor and management exists,
a place where employees are proud of their work, and a place where employees enjoy working together.
Slovakia
Total
27
Goals and achievements by sector
Production and Sales
Despite high oil prices and unfavorable exchange rates in 2007, Kia Motors succeeded in boosting
production and sales. The production plant in Slovakia, for example, exceeded its first year sales
target. Although domestic production fell slightly, Kia Motors enjoyed an increase of 7.7% in total
production and doubled overseas production capacities from 2006 thanks to overseas production
achieving full operational capacity along with strong sales generated in Europe.
Although domestic sales rose only slightly, exports significantly increased. Since the first-ever
export of 10 Brisa pickup trucks to Qatar 32 years ago, annual exports totaled more than one
million vehicles for the first time. Kia’s continual effort to nourish the company’s growth produced
fruits of success as operating losses in 2006 were minimized and there was a return to operating
profit in the fourth quarter of 2007.
Key Production Performance and Plan _ Although domestic manufacturing production fell
slightly, overseas production grew by 7.7% from last year with total production of 1,369,278
vehicles. Notable achievements in the manufacturing sector include creating an efficient logistics
system and Global Maintenance Management System (GMMS). (3) In 2006, Kia became the first
Korean company to utilize an advanced logistics system with Radio Frequency Identification (RFID)
(4)
during the manufacturing process. In 2007, Kia established the UCLIP system (5) to improve
reliability of its logistics system, share information with business partners in real time, and manage
inventories efficiently. With the UCLIP system in place, Kia Motors achieved cost reduction and a
competitive edge in the marketplace. Additionally, by using GMMS, it ensured increased capacity
01
02
03
and productivity while reducing costs through efficient management. Currently, Seosan and
Gwangju Plants utilize RFID, but the RFID system will be expanded to all Kia Motors facilities in the
future.
In 2008, Kia set its sights on improving product quality and achieving stable production
through the extension of domestic and overseas production facilities. Kia is planning to introduce
mini interview » Eva Yanashova, Kia Motors’ Plant in Slovakia
04
“Everyone’s impressed when I tell them I work for
Kia Motors.”
Hello, I’m Eva Yanashova of Kia Motors Slovakia.
Working for Kia Motors is a source of pride in
Slovakia. With high pay and great benefits, Kia Motors is the best place to work. Many friends of mine
want to work for Kia Motors and ask about open-
ings at the plant. Kia Motors has superior benefits
for female workers in comparison to other plants
in Slovakia. Recently, I read in the newspapers that
Kia Motors has created more than 8,000 jobs in
Slovakia along with new infrastructure. Kia Motors
is making our city a better place to live. Thank you,
Kia Motors.
zoom in » Kia Motors in Udmurtia, Russia
“Kia Motors created 10,000 jobs in Udmurtia”
On March 2007, Alexander Alexandrovich Volkov,
President of the Udmurt Republic, expressed his
gratitude for the contribution of Kia Motors to
the economy of Russia. Since 2005, Kia Motors has
manufactured the Cerato (Spectra) in the IshAvto
plant in Izhevsk, the second largest automotive
producer in Russia. Cerato (Spectra) is the best selling car in the Russian market.
01.
02.
03.
04.
(3) (4)
(5)
According to Mr. Volkov, “Just one Kia Motors
assembly line created 2,700 jobs. It is supporting
approximately 10,000 citizens as it creates jobs
from affiliated business partners and surrounding
businesses. Introducing a cutting-edge Spectra
(Cerato) assembly line to Udmurtia expanded social
benefits to employees and increased tax revenue to
Udmurtia.” He welcomes a larger Kia Motors presence in Udmurtia.
Breaking Ground for China’s Second Manufacturing Plant
European Sales Office and Design Center in Kia Motors’ New European Headquarters
Transporting Kia Motors’ Vehicles at the Slovakia Plant
Eva Yanashova, Slovakia Plant Employee
GMMS (Global Maintenance Management System)
RFID (Radio Frequency Identification): Through Wireless and IC chips, RFID manages information through a variety of
next-generation object-recognition technologies
UCLIP (Ubiquitous Cooperated Logistics Information Platform System): RFID-Integrated Logistics Information
(auto parts, logistics, finished vehicles) sharing system between small and medium-sized businesses (SMBs) and Kia Motors
28
24
25
32
33
a Gamma engine facility with annual output of 100,000 units for small- to mid-sized engines in the
Hwaseong plant. The Gwangju plant specializes in bus production, and it is pushing to finish
renovation of production lines to churn out 2,100 buses a year such as the Granbird. As for
overseas manufacturing facilities, Slovakia has been fully operational since last year with an annual
production capacity of 300,000 vehicles, and Kia’s second plant in China came online in December
2007 with an annual production capacity of 300,000 vehicles. The construction of the U.S.
manufacturing facility in Georgia, which began in 2006, is on track for completion in 2009 with an
annual capacity of 300,000 vehicles. Kia is expecting its overseas annual production capacity to
reach 1.03 million vehicles by 2009. This global expansion will contribute to the stabilization of
production and sales while raising Kia’s brand equity.(6) In 2008, Kia Motors is aiming to produce
1.69 million vehicles (1.215 million and 0.475 million vehicles at home and abroad, respectively), an
increase of 23.5 % from last year.
Sales Division Key Performance and Plan _ In 2007, Kia Motors’ domestic sales rose 0.8 %
with 271,809 vehicles. The domestic market shrank approximately 30% last year compared to 2002
01
02
due to high oil prices and the falling exchange rate, which devastated the export market and
created a rough year for every domestic automaker. Although no new models were introduced in
the stagnant domestic market, Kia launched restyled models with enhanced marketability and
environmental performance, while expanding customer marketing. These strategies allowed Kia
to weather the worsening market environment and end the year with improved sales and lower
operating losses. In the sedan segment, Opirus (Amanti) recorded first place in sales for 19
consecutive months, and the refreshed super compact Morning (Picanto) posted high sales volume
in the latter half of 2007. The sub-compact Rio (Pride) and Sportage compact SUV maintained top
market share in their respective segments as well. Recovery in the domestic market for 2008 is not
expected. By launching new models and enhancing customer satisfaction, however, Kia will
achieve its target sales goal of 322,000 vehicles and 25% market share in 2008.
Annual sales
Total sales
Unit: Vehicles
Domestic sales
Overseas sales
1,400,000
1,200,000
1,215,849
950,024
800,000
800,000
700,000
700,000
600,000
600,000
500,000
500,000
400,000
400,000
269,575
271,809
200,000
100,000
100,000
0
0
2006
1,215,849
2007
787,236
662,092
623,151
511,167
490,607
481,422
300,000
200,000
2005
1,359,956
1,258,851
1,000,000
989,276
900,000
265,825
Others
1,100,000
900,000
300,000
RV
1,400,000
1,200,000
1,088,147
Unit: Vehicles
Passenger Car
1,300,000
1,258,851
1,100,000
1,000,000
Total sales
1,359,956
1,300,000
Sales by category
111,276
85,592
2005
2006
* ‘Others’ include commercial and specialty vehicles.
01.
02.
(6) The refreshed for 2008 Morning (Picanto) has posted high sales figures.
Ceremony for the 100,000th cee’d produced at the Slovakia plant in September 2007
More information on overseas facilities can be found on pages 34 to 35.
82,113
2007
29
Kia’s overseas sales division made significant accomplishments through export market
diversification and a stable global production system this year. Kia Motors enjoyed a sales
breakthrough with exports of 1,088,147 vehicles, a 10% increase from the previous year. Kia
focused on Asia, the Middle East, Central and South America, and emerging markets. These
diversified markets allowed Kia to increase exports by 26.3 % from the previous year. In addition,
Kia overcame difficulties and posted a 7% export increase despite high oil prices and the U.S. subprime crisis. With successful operation of the manufacturing plant in Slovakia since last year, Kia
also grew by 10% in the European market.
Right on the tails of US and Europe, China is quickly emerging as one of Kia’s largest markets.
Although sales fell slightly last year in China, as many automakers introduced new models and
fierce price competition ensued, Kia plans to aggressively tackle the Chinese market with increased
production from its second plant in China and new models that satisfy Chinese consumers’ needs.
Kia expects the 2008 overseas market environment to stay unfavorable as oil and raw material
prices continue to increase and the dollar value remains low. Despite the worsening business
environment, Kia has set ambitious goal of exporting 1.363 million vehicles, a 25.2% increase from
01
02
2007. Kia plans to meet this goal by strengthening its product line-up, nurturing emerging
markets, taking advantage of its overseas production base, increasing dealer capacity, introducing
a 5-door Cerato (Spectra) designed exclusively for the Chinese market, stabilizing China’s second
plant, and expanding its overseas sales network.
Sales by Region
Total sales
Korea
Unit: In million won
2007
2006
2005
2004
2003
2002
15,948,542
17,439,910
15,999,356
15,257,742
12,839,881
12,158,113
4,852,075
4,867,129
4,471,757
4,241,228
5,126,358
6,304,394
11,096,467
12,572,781
11,527,599
11,016,514
7,713,523
5,853,719
North America
4,879,604
5,144,229
4,297,325
4,989,520
3,731,397
3,344,308
Europe
2,860,028
4,295,839
4,492,756
3,655,789
2,145,117
1,071,728
Others
3,356,835
3,132,713
2,737,518
2,371,205
1,837,009
1,437,683
Overseas
Quality and R&D
In 2007, Kia Motors fortified its design capability, developed advanced technologies, reduced costs
and implemented quality assurance systems. Through these efforts, Kia received glowing reviews
on product quality from independent research firms, thereby raising its brand equity.
Key Quality Performance and Plan _ In 2007, Kia Motors received accolades from around the
world as its products earned top marks in product quality from various distinguished independent
research firms. More specifically, Kia is proud of its success in the U.S., most notably its results in
J.D. Power and Asociates’ 2007 Initial Quality Study (IQS), in which Kia’s ranking jumped 12 spots
from 2006 to 12th place overall, thus placing Kia in the top tier of automakers. The company’s
subcompact sedan, Pride (Rio), played a major role in enhancing brand value as it took first place
in the subcompact segment in both the 2006 and 2007 studies. Furthermore, the Total Quality
Study (TQS) by Strategic Vision (an American automotive research firm), U.S. Consumer group’s
Consumer Reports, and the European Car of the Year (COTY) jury all gave rave reviews about Kia’s
vehicle quality.
Kia works tirelessly to develop top-quality vehicles in order to become consumers’ number one
preference. For example, extensive tests are conducted to match driving performance with
intended usage and environment when designing a new vehicle. Kia has revitalized customer
services, such as the Auto Prosumer Systems, to reflect customer needs and wants. In addition, Kia
01.
02.
Kia Motors representative receiving the JD Power and Associates’ IQS award for the Pride (Rio) as a segment winner
2008 Quality Meeting for acquiring top IQS ranking
30
24
25
32
33
Vehicle Quality Evaluation in 2007
VehiclesRating History
cee’d
•
•
•
•
•
•
•
Germany, Autobild, C-segment (1st place tie with VW golf)
Austria, Autotouring, 1st place
U.K., Practical Caravan, What Car?, and Camping and Caravan Club
eco-friendly vehicle and best hatchback
Germany, ACE Lenkrad, C-segment 1st place
Europe, 5 stars front and side impact tests, European New Car
Assessment Programme (Euro NCAP)
Europe, 1st place in European COTY C-segment (4th place overall)
Romania, 1st place COTY
Sportage
•
•
•
1st class in offset impact evaluation by Korea Automobile
Technology Center
U.S., 5 stars in impact tests by National Highway Traffic Safety
Administration (NHTSA)
U.S., Consumer Reports Recommended model
Pride (Rio)
• U.S., The Car Book “Best Bet”
• U.S., “Highest Ranked sub-compact car in Initial Quality Survey (IQS)”
By J.D. Power and Associates
Sorento
•
•
•
•
U.S., 5 stars in impact tests by the National Highway Traffic Safety
Administration (NHTSA)
U.S., Best Medium SUV Ownership Experience in Total Quality Award
from Strategic Vision
U.S., Highest possible rating in rear impact evaluation from Insurance
Institute for Highway Safety (IIHS)
U.K., < Caravan Club Tow Car awards 2008> 1st place in Full-size 4X4
segment
Carnival (Sedona)
•
•
•
•
•
•
•
•
•
U.S., The Car Book “Best Bet”
U.S., Motor Week “Best Minivan” from 2007 Drivers’ Choice Awards
1st place in minivan segment for five consecutive years according to
Korea Management Association Consulting
U.S., 1st place in Total Quality Award of Strategic Vision for
Best Minivan Ownership Experience
Australia, Royal Automobile Club of Victoria “Lowest cost of
maintenance”
U.S., Highest possible rating in rear impact evaluation by Insurance
U.S., 2nd place in Automotive Performance, Execution and Layout
(APEAL) Study by J.D. Power and Associates in 2007
U.S., Forbes “The safest family car”
U.S., Highest possible rating in safety evaluation by Insurance Institute
for Highway Safety (IIHS)
Cerato (Spectra)
• U.S., US News & World Report, Best affordable Compact Wagon
01
02
03
04
05
Lotze
(Optima/Magentis) • 1st class in offset impact evaluation by Korea Automobile
Technology Center
• U.S., Consumer Reports Recommended model
Opirus (Amanti)
• U.S., Highest possible rating in side impact evaluation by Insurance
06
07
08
01.
02.
03.
04.
cee’d
Sportage
Sorento
Cerato (Spectra)
05.
06.
07.
08.
Lotze (Optima/Magentis)
Pride (Rio)
Carnival (Sedona)
Opirus (Amanti)
31
is stabilizing production lines and ensuring that its suppliers deliver high quality parts to gain a
competitive advantage through higher end-product quality. For overseas facilities, the quality
control manual, which consists of 10 categories with 180 checklists, is being prepared to improve
the product quality control system and enable them to perform their own internal quality control.
With a stabilized on-site work management system, Kia is working in overseas manufacturing
facilities to produce new models under strict quality control at an early stage.
Kia is never satisfied with past performances. Thus, despite excellent reviews on product
quality in 2007, Kia will make every effort to surpass 2007’s performance in 2008. According to the
Initial Quality Survey (IQS), Kia’s overall quality has improved by 53% since 2001. Kia’s
improvement is the result of the steadfast belief that product quality is the foundation of
competitiveness. Kia Motors is continuously improving product quality and raising brand value so
that customers will not only acknowledge the brand, but go beyond and recognize the brand as a
product that can be trusted and driven. For this to happen, Kia has taken three measures to insure
product quality. First, Kia comparatively analyzes its products against competitors to improve their
perceived quality. Second, Kia proactively checks quality parts for defects before they enter the
01
production cycle through careful monitoring of suppliers. Third and lastly, Kia has established a
three-tier quality inspection process to prevent problems in the production cycle to meet the
“Drive Defects to Zero” challenge.
R&D Performance and Plan _ In 2007, Kia’s R&D efforts concentrated on creating innovative
designs, strengthening technology and improving cost competitiveness through cost innovation.
Kia’s concept cars, based on the "simplicity of a straight line" design concept, captured the
world’s attention at numerous motor shows. The concept car line up included the 'Kue' large CUV,
‘ex_cee'd' convertible coupe, 'KND-4' mid-large size SUV, and ‘Kee’ sports coupe. In terms of cost
innovation activities, Kia came up with 20,000 cost saving ideas centered around streamlining
design and developing new materials with active participation from employees. Kia then
successfully implemented these ideas into its vehicles to improve profitability. Digital development
of automobiles and shared platforms and components are just some of the methods Kia is
Brand Management
exploring in order to save costs. But Kia is always looking for permanent cost saving solutions.
In order to strengthen Kia’s technological competitiveness, the company must focus its
Phase 1
attention on the development of eco-friendly and intelligent cars. To achieve that end, Kia has
2005-2007
formed a close partnership with parts suppliers and affiliated companies to secure electronics,
Laying a solid
foundation for brand
management
• Brand management
plan announced
• Execution of the plan
by division/region
materials and environmental technolog components critical to the industry. (7) Additionally, the
Phase 2
2008-2010
Strengthening brand
management
• Build a system for
brand management and
evaluation
• Launch new models
with brand identity
partially reflected
Phase 3
Namyang R&D Center is the epicenter of support for the Eco-Technology Research Center and
overseas R&D Centers (United States, Europe and Japan) to strengthen its global technological
competitiveness. As a result, Kia received a favorable response from the European market when
launching the cee’d 3-door and wagon models. At the same time, in China and the emerging
markets, Kia strengthened R&D capabilities to respond immediately to local customers with
customized vehicles. For example, Kia has received superb response in China from models like the
Cerato (Spectra), Sportage, and Pride (Rio) with modified colors and body shapes that reflect the
tastes of local customers.
Brand Management
Last year, Kia focused more on improving its core
brand values to spur more business activities
for sustainable growth. Kia continues to launch
tailored vehicles to match customer needs. Kia
will focus on today’s growth as well as tomorrow’s
anticipated trends in order to become a top global
brand.
2011-2015
Accelerating brand
management
• Launch new models
with brand identity
fully reflected
• Reinforce Global Brand
Management System
01.
(7) “ex_cee’d” convertible and “Kee” sports coupe receive worldwide attention at motor shows
More information on the technology for eco-friendly vehicles, strategies for climate change and the technology for
intelligent vehicles can be found in the Environmental Value and Social Value sections, respectively, in this report.
32
Key Figures
Key Figures Unit: Vehicles, In million won
Production (Vehicles)
Sales (Vehicles)
Sales
Operating profit
2007
2006
2005
2004
2003
2002
1,118,582
1,150,397
1,105,431
1,019,366
852,797
1,013,616
1,114,451
1,140,734
1,105,841
1,011,429
858,697
897,722
15,948,542
17,439,910
15,999,356
15,257,742
12,839,881
12,158,113
652,315
-55,404
-125,291
74,002
513,063
805,537
Operating profit rate
Deficit
Deficit
0.46%
3.36%
6.27%
5.37%
Cash Flow(1)
28,240
-231,550
438,760
1,621,855
1,457,333
2,105,670
Earnings Before Tax (EBT)
24,968
73,213
689,405
840,078
937,526
851,393
Net Income
13,563
39,337
680,904
662,026
752,857
670,820
2007
2006
2005
15,948,542
17,439,910
15,999,356
12,572,988
14,085,595
12,503,862
3,375,554
3,354,315
3,495,494
676,396
709,719
612,815
2,699,158
2,644,596
2,882,679
2,119,226
2,155,284
1,975,208
333,000
310,574
284,313
26,299
26,097
23,009
220,633
152,641
112,349
0
0
487,800
* Based on 2007 Annual Report (excluding CKD and overseas production)
(1)Cash Flow from Operating Activities
Value Offered to Stakeholders
Sales
Unit: In million won
Business Partners Costs of Goods and Service
Value-added Creation
Internal Buffer for Facility and R&D Investment
Value Offered to Stakeholders (Excluding Business Partners)
Employees
Total Wages
Benefits
Public Sector
Tax and Cost of Social Contributions
Financial Investors Interests
Shareholders
Dividends
• Material Costs
• Depreciation Expenses
• Value Offered to Stakeholders (Excluding Business Partners)
78.8%
4.3%
16.9%
1.0% Government and Public Sector
8.2% Shareholders and Financial Investors
90.8% Employees
33
Special Story
Design management
Kia Motors' advertising campaign slogan, “DE?
GN,” sums up its design philosophy in one word.
“Design” does not merely mean the exterior shape or style of the car. Instead, “DE?
GN”
demonstrates how Kia Motors is finding innovative answers to endless questions in order to improve
customer lifestyles with safe and convenient vehicles. In the slogan, “?” of the “DE?
“curiosity,” just like the symbol itself. “
“
GN” designates
” is a lightbulb that symbolizes “Idea” for solutions. Also,
” carries a bigger meaning as it represents change, innovation and the creative mind of Kia
Motors’ “identity” that will foster the company’s endless growth.
Quick-Glance at Kia Motors' History • Production of Korea first truck, K-360
• Production of Korea first export vehicle, Brisa B-1000 pick-up
• Production of Korea first van, Bongo
• World’s first sedan-compact SUV crossover, Sportage
• Production of Korea first automobile built from ground up, Sephia
• Korea first convertible two-seater sports car, Elan
• Korea first minivan, Carens
• Former Audi/Volkswagen head designer, Peter Schreyer, hired as Chief Design Officer
• Korea brand perception changing vehicle, Soul (2008 launch date)
Design differentiation through differentiated brand identity
To establish a unique design identity for the company, Kia hired Peter Schreyer, a European
automotive designer touted as one of the top three in the world. Peter Schreyer became Chief Design
Officer of Kia Motors in 2006 to head Kia Motors’ global design initiatives and is based at Kia’s new
Europe Design Center which opened in September 2007. Kia Motor’s Europe Design Center is
responsible for strengthening competitiveness through innovative design. Peter Schreyer summed up
Kia Motors’ future design direction as “Simplicity of the Straight Line.” “Simplicity of the Straight
Line” means honest, simple but elegant design with aerodynamic forms to enhance driving
performance. It is the culmination of a perfect combination design elements.
01
02
Concept Cars Designed under “Simplicity of the Straight Line” Design Concept
• Kue
• ex-cee’d
• pro-cee’d
• eco-cee’d
• KND-4
• Kee
“Simplicity of the Straight Line” Explained by Peter Schreyer, Chief Design Officer
Q: Why did you propose “Simplicity of the
Straight Line” as Kia Motors’ future design
direction?
A: “Simplicity of the Straight Line” is quite
philosophical. A straight line symbolizes purity,
persistence and honesty.
In the future, we can not copy existing concepts.
New thinking is needed. Clear simplicity, it is the
ultimate design that is impossible for anyone to
imitate. It is difficult to create something entirely
new, but with this philosophy, Kia Motors will
create a new design future through honesty,
purity and simple beauty.
03
01.
02.
03.
pro_cee’d, a concept car designed under the “Simplicity of the Straight Line” philosophy
KND-4 mid-size SUV
World famous automobile designer, Peter Schreyer
34
Special Story
Global Management
Kia Motors has poured vast amounts of energy into building a solid global production and sales
network to ensure tomorrow’s growth despite the worsening business environment in 2007.
Kia held the official grand opening of the Slovakia plant, with annual production capacity of
300,000 vehicles, in April 2007; the second plant in China, with annual production capacity of 300,000
vehicles, in December 2007; and the Europe Design Center and new Kia Motors Europe headquarters
in September 2007.
These facilities are in tandem with the company’s vision to complete a comprehensive network of
production-sales-R&D operations in Europe.
Enhancing brand value in the European market
Completion of Slovakia plant construction
The 1.68 million m2 Slovakia manufacturing plant under Kia Motors Slovakia (KMS) was officially
opened in April 2007 and 300,000 vehicles are able to be produced annually.
Kia Motors Slovakia’s plant is located in Zilina, Slovakia where the cee’d and Sportage are
produced. With the completion of the plant, Kia Motors has erected a European management system
01
02
that encompasses R&D and production to marketing, sales and after service. This system represents
the company’s first step in entering the realm of true global management.
Through the Slovakia plant, Kia created jobs (directly and indirectly) for an astounding 10,000
people (as of December 2007, KMS directly employs 2,700 people, but Kia estimates that number to
increase to 3,054 in the future), and Zilina region’s unemployment rate fell from 13.2% in 2003 to
5.5% in 2007 as a result.
Kia Motors received support from the Slovakian government through its Foreign Direct
Investment (FDI) promotion policy, which should not exceed 15% according to the EU rules. The
Slovakian government’s support came in the form of free land, construction finance and tax benefits.
Kia Motors’ cee’d, a model tailored for Europe, has earned rave reviews in the European market
including being shortlisted in the 2007 “Car Of The Year (COTY)” Awards (top segment finisher) and
earned a perfect score (first for Korean branded vehicle) from Euro NCAP, an independent safety
assessment organization in Europe. Kia Motors’ products, such as cee’d, have raised the company’s
product reputation and enhanced brand equity.
To win a larger share of the European market, Kia introduced the pro_cee’d, the cee’d 3-door
model, in December 2007 and plans to introduce the eco_cee’d, an eco-friendly model with improved
fuel economy and reduced emissions towards the end of 2008.
Completion of the new KME headquarters office building
Kia Motors Europe (KME) opened its new corporate headquarters office building in Germany in 2007.　The new office building is located in Europe’s commercial hub, Frankfurt, Germany, and houses KME
headquarters, the Europe Design Center and Kia’s German subsidiary sales office. The new office
building also serves as a strategic base of operations for all of Europe and a main point of contact for
KMAw
European stakeholders.
Sales and Network Overview
2003년
2004년
KMIe
164,437 vehicles
KMBL
KMF
352,531 vehicles
2005년
329,026 vehicles
2006년
343,090 vehicles
2007년
01.
02.
KMP
KMUK
156,821 vehicles
Slovakia plant grand opening ceremony held in April 2007
Production line of second China plant opened in December 2007
KMIb
KME & KMD
KMCz
Europe Plant
KMSS
KMH
KMAs
35
Building a Kia Motors foundation in the Chinese market
Kia officially opened its second manufacturing plant in Jiangsu Province, Yancheng, China in December
2007.　The second plant, which employs 1,400 people, produces the Cerato (Spectra) with annual
production capacity of 150,000 vehicles (according to 2007 year end figures). Kia plans to expand its
operations in the second plant to employ 2,750 people and produce 300,000 vehicles per year by 2009.
The second plant, which was constructed in just two years, along with Kia’s first Chinese plant, will
play a major role in the Chinese automotive market, which is expected to become the world’s largest
automotive market by 2010.
Social engagement as part of global society
Kia Motors refocused its community engagement on a group level in 2007 to better achieve its vision
for community service. As an automotive industry leader, Kia continually looks for ways for automobiles
to co-exist with the community in harmony. All Kia Motors employees work together under one
principle: to contribute to society by providing customized help to fit the needs and characteristics of
the local communities in which the company operates.
Community Engagement in China and Slovakia
The Slovakia plant and Dongfeng Yueda Kia plants in China are reaching out to local marginalized
neighborhoods with donations and volunteer activities and through business tours and sponsorships of
cultural and educational events. Through these activities, Kia hopes to improve the quality of life of its
neighbors.
Global Environmental Management System
The 'Environmentally Sound and Sustainable Development’ (ESSD) program, advocated by the Rio Earth
Summit in 1992, proposes methods for practically achieving business management and profitability
while successfully sustaining the economy and environment.
Kia declared its ambition for GT5 2010 and plans for environment and management systems at the
'ECO GT5 2010' press event.
International Standard ISO 14001 Environmental Management System Certification Status
• Hwaseong Manufacturing Plant
• Gwangju Manufacturing Plant
• Sohari Manufacturing Plant
• A/S Center
• Dongfeng Yueda Kia (1st China plant)
• Slovakia Manufacturing Plant
Oversea Plant Environmental Data
Key Elements in Exhaust
Contents
Water pollutants
Total wastewater consumption (tons)
91,679
39,051
BOD consumption (tons)
1.4
15.8
COD consumption (tons)
6.7
33.2
SS consumption (tons)
4.3
35.1
N-H consumption (tons)
01
02
Waste
China Plant Slovakia Manufacturing Plant
0.01
0.03
Total waste consumption (tons)
9,297
26,407
Recycling waste amount (tons)
8,654
23,163
Recycling rate (%)
93.1
87.7
Toxic chemicals
Poisonous material consumption (tons)
92.9
341.9
Air pollutants
Dust (tons)
1.3
7.7
NOx (tons)
5.5
31.2
01.
02.
SO2 (tons)
0.015
0.18
CO2 (tons)
57,062
156,559
Slovakia plant awarded certificates
ISO 14001 certificate for Slovakia plant
Kia Motors will protect nature’s beauty that both inspires and sustains.
the loss of the oysters which once lined the coast of her small fishing
village. According to a newspaper article, Taean’s once lush coast
devastated by an oil spill would require at least 20 years to recover the
beauty it once had. On the way back to Seoul, thoughts turn to what
can be done for the environment.
Besides the clean up efforts on the polluted coast, Kia wanted to do
more by minimizing its footprint on the environment. As an automobile
company, Kia Motors, will develop cars and manufacturing process
from production to waste that are friendly to the environment. Kia
Motors will never forget the duties to protect and preserve the nature’s
beauty.
environmental value
Holding onto a grandmother’s hand and comforting her as she grieves
38
Disclosure on
Management Approach
Kia Motors is implementing eco-friendly management in every facet of its activities, from
design to production to distribution. The management is on a global scale in every facility
by encouraging the development and production of automobiles that minimize the
negative impact on the environment.
Environmental Management Performance and Plans
2007
Goals of
Environmental
Management
• Establish environmental management system.
• Implement environmental management system overseas.
• Become a leader in the automotive industry for environmental management.
• Developed alternative fuel vehicles and reduced greenhouse gas emissions in response to climate change.
2007
Environmental
Performance
• Improved engine transmission and reduced car weight to lower greenhouse gas emissions and improve fuel efficiency.
• Increased recycling rate through eco-friendly design technology.
• Acquired ISO Environmental Management Certification (Slovakia plant and 1st plant in China).
• 2007-2012, Designated Sohari and Hawseong plant as eco-friendly facilities.
• Promote industrial waste reduction through “Zero Industrial Waste Declaration.” • Reduce greenhouse gas in facilities overseas to combat climate change.
• Promote research and development of eco-friendly vehicles.
2008
Plans
• Acquire ISO certification for the second plant in China.
• Develop and apply technologies for clean production.
• Disclose evaluations of each model’s environmental impact on the Kia Motors’ website
(Including Life Cycle Assessment (LCA)).
Material Issues
Based on the Materiality Test, Kia Motors isolated material issues identified by
stakeholders and developed strategies to ensure sustainable management activities. Kia
Motors has further broken down each issue with plans and performances of each material
issue below.
Eco-friendly production
Eco-friendly product
• Reducing harmful pollutants
• Strategy for developing products
• Technology for clean production
• Developing alternative vehicles
• Responding to climate change
• Reducing greenhouse gas emissions
• Environmental management system
• Recycling
• Observing environmental laws and regulations
39
Environmental
Management
In the 21st century, the most critical issue around the world is climate change caused by global
warming. This climate change is accountable for abnormal weather patterns, occurrences of
diseases and extinction of species of fauna and flora. Awareness of global warming in recent years
has increased public demand for countries and companies to provide viable plans and policies to
reduce greenhouse gases. To overcome this crisis of global warming, both industrial development
for more eco-friendly production and active environmental preservation efforts are required. To
pursue sustainability that does not restrict future generations and in accordance with the needs
of the present and future, companies must comply with its social obligations by providing
products that increase quality of a life while minimally affecting the environment.
Under eco-friendly management, Kia Motors dedicated its R&D to developing technologies
that raise the efficiency of its product by saving energy, reducing greenhouse gas and CO 2
emissions, and developing vehicles using alternative energies. Kia Motors devoted great efforts in
providing practical solutions for immediate problems to fundamental solutions for greater
society.
40
Eco-Friendly Product
Development
To develop vehicles that reduce their impact on the environment, Kia Motors established four
R&D directives for the Environmental Technology Research Center to head its research and ecofriendly efforts. The four directives are as follows.
First directive, develop alternative fuel vehicles and expand eco-friendly technology. Second,
develop efficient engines, exhaust systems and transmissions that reduce gas emissions. Third,
improve fuel economy through the application of new technology and lightweight bodies. Fourth
directive, increase recycling based on LCA.
4 Product Development Directives
Four Directives
Plan
Environmental management Goals
Eco-friendly vehicle
• Develop next generation alternative
• Hybrid mass production (2009)
fuel vehicles.
Reduce gas emission
Improve fuel economy
• Develop low polluting engines and efficient • Promote mass production of fuel cell
transmissions.
vehicle (2012).
• Develop low polluting exhaust system.
• Regional exhaust gas regulations response
• Develop lightweight materials and new
• Reduced CO2 emissions (2012, 130 g/km).
production methods.
• Regional fuel economy regulations
• Develop and apply new technology for
response
engine / transmission.
Increase recycling
• Develop eco-friendly design technology.
• Improve recycling rate (new cars as of 2008).
• Develop material recycling technology.
: Reclaim more than 85%
• Develop auto salvage and dismantling
: Recover more than 95%
technology.
• Develop technology to improve production
environment.
Alternative Fuel Vehicle
Fossil fuels are considered a major accelerant of global warming since they discharge large
amounts of air contaminants, such as CO2, in the combustion process. Unfortunately, as a result,
automobiles powered by fossil fuels partly caused the increase of global warming. Moreover,
these fossil fuels are natural resources with limited reserves, so the development of automobiles
41
with alternative fuels has become even more necessary. In the effort to create an alternative fuel
vehicle, Kia Motors set the immediate goals of mass-producing hybrid electric vehicles, which
combine electric and fossil fuel powered engines. As a mid-long term strategy, Kia Motors will
focus on developing fuel cell vehicles with zero greenhouse gas emissions to replace current fossil
fuel vehicles. Through the development of eco-friendly automobiles, Kia Motors will strengthen
competitiveness through sustainability efforts and play a leading role in establishing a society
that utilizes advanced energies.
Hybrid Electric Vehicles
Hybrid Electric Vehicle (HEV) utilizes both a gasoline engine and electric motor concurrently in its
operations. This concurrent utilization enhances fuel efficiency and reduces gas emissions. As a
result, HEVs are becoming the most viable and realistic solution to commercially available ecofriendly vehicles. By the end of 2009, Kia Motors expect to produce HEVs that will reduce air
pollutants by more than 30% and increase fuel efficiency up to 50%, when compared to existing
gasoline-powered vehicles.
Technology Development Status _ In 2002, Kia Motors succeeded in developing a hybrid
electric system that is more fuel-efficient than legacy vehicles with an internal-combustion
Global Research & Development Network
Namyang R&D Center
Kia Motors integrated all research function in
Korea under the Namyang R&D Center. The center
houses a driving test site, the wind tunnel test site
and a design institute. The center is responsible
for the entire vehicle development process, and
research and development of advanced technologies. Namyang R&D center is able to operate an
efficient Kia Motors’ R&D program through the
centralization of research personnels on one campus, enabling research expansion and technology
sharing at lower costs.
01
02
03
04
05
Environmental Technology Research Center
In the aim of establishing a consistent environmental strategy, the Environmental Technology
Research Center was established in September
2005. The center is responsible for the application
of environmental plans during the entire product
cycle, from product development, production, sale,
aftersales to disposal. The Center has a hydrogen
fuel cell station with 700 atmospheric pressure,
fuel cell durability test equipment, electrical power
systems, and a scrap vehicle disassembly system.
The Center’s 700 atmospheric pressure hydrogen
fuel cell station is acknowledged as the standard
model for installation and expansion of all future
hydrogen fuel cell fueling systems. Facilities at the
Environmental Technology Research Center offer
an eco-friendly environment by employing a natural lighting system and vacuum sewage system. The
01.
02.
03.
04.
05.
Namyang R&D Center
Environmental Technology Research Center
U.S. Technology Research Center
Japan R&D Center
Kia Motors’ European R&D Center
Center’s R&D activities focus on the development
of future generations of eco-friendly technology
such as gas emission reducing technology and
eco-friendly production technology. These activities
play a vital role in Kia’s eco-friendly management
goals.
U.S. Technology Research Center
U.S. Technology Research Center is an expansion of
the Hyundai-Kia Motors U.S. Technology Research.
The Center performs automobile production
design, power train development, vehicle assessments, regulation compliance, as well as product
design and planning.
Japan R&D Center
The Japan R&D Center has been conducting various
research activities that consist in the development
of Advanced Safety Vehicle (ASV), infotainment
(Information + Entertainment), comfort-focused
systems, and future generation vehicles, e.g.
hybrid electric vehicle systems and fuel cell vehicle
technology.
Kia Motors’ European R&D Center
Kia Motors’ European R&D Center, based in Germany, conducts major research activities consisting
of product planning, power train development,
and vehicle assessment and regulation compliance.
The Center also provides manufacturing technologies to support production in Europe. 42
38
39
40
54
63
65
69
70
74
engine, and at the same time, allows for a smoother ride. Kia Motors’ hybrid system works in
acceleration mode by allowing an electric motor to provide support power so the engine’s power
load is reduced. In deceleration, energy generated from the reduction in speed is captured and
stored in the electric motor, which is then reused for acceleration. This cycle of storing and reusing
energies enables vehicles to consume far less fuel for operation. When a vehicle is in idle mode,
the engine comes to a complete stop, thereby expensing no fuel. When it reaccelerates, an
electric motor initiates the vehicle smoothly to ensure minimized usage of unnecessary fuel.
Current Distribution and Plans _ Kia Motors is expanding the production of hybrid electrical
vehicles with Government cooperation. As a result, in 2005, 121 Pride hybrids were distributed to
various public institutions in the capital area. Distributed Pride hybrids reduced air pollution and
increased fuel efficiency by 37% and 44%, respectively, compared to gasoline-powered vehicles.
Pride (Rio) Hybrid
Electric Vehicle
Specifications
Driving Method:
Parallel type
In 2006, Kia Motors elevated its emission standards from Ultra Low Emission Vehicle (ULEV) levels
HEV Format: Soft HEV
to Super Ultra Low Emission Vehicle (SULEV) and expanded its distribution area to include Busan,
Engine: 1,399cc DOHC
Deagu, Gwangju, Ulsan and Daejeon, where an additional 146 Pride hybrids were distributed. In
Fuel: Gasoline
2007, the number of distributed Pride hybrids increased to 353. Kia also donated 47 hybrid
vehicles to public welfare organizations through Community Chest of Korea.
Motor: Alternating current
motor (12 kW/95 Nm)
Battery: Ni-MH (144 V)
Transmission: CVT
LPI Hybrid Electric Vehicle Development and Sales Strategies _ In 2009, Kia Motors will
Fuel Economy (LA4 Mode):
release the LPI-HEV, which utilizes both LPG fuel that emits lower air pollutants and LPI engine
19.8 km/ℓ
technology developed through pilot programs. LPI HEV combines benefits of legacy vehicles
Driving Performance
Maximum Speed: 165 km/h
0 > 100 (km/h): 12.2 seconds
Development History of Eco-Friendly vehicles
1986 •Developed the first Korean electric vehicle (Besta).
1991 •Developed lead cell electric vehicle (Pride (Rio)).
1993 •Developed nickel- cadmium cell electric vehicle (Sephia).
•Sold the first Korean electric vehicle.
1995 •Developed electric vehicle (Sephia).
1999 •Developed electric vehicle (Sportage).
•Developed hybrid electric vehicle.
2000 •Participated in the California Fuel-cell Partnership (CaFCP).
•Developed the first Korean fuel cell vehicle (Sportage methanol fuel cell vehicles).
•Developed the first generation of hydrogen fuel cell vehicle.
2001 •Completed the world’s first 3-axis hydrogen filling in 350 bar.
•Won a medal in the Michelin Bibendum Challenge.
2002 •Became a member of the Japan Fuel Cell Auto Commercialization Project.
•Completed fuel cell road rally (480 km, CaFCP).
2003 •Won a medal in the Michelin Bibendum Challenge.
2004 •Developed second generation hydrogen fuel cell vehicle (Sportage hydrogen fuel cell auto).
•Selected as pilot driving test project operator managed by U.S. Department of Energy .
2005 •Developed hybrid electric vehicles (Supplied 350 Pride/Verna HEVs).
•Built hydrogen fueling stations in the Chino Lab in the U.S..
•Completed fuel cell road rally (410 km, EVS21: 21st International Electric Vehicles Symposium).
2006 •Developed hybrid electric vehicle (Supplied 380 Pride/Verna HEVs).
2007 •Developed hybrid electric vehicle (Plans to supply 3,390 Pride/Verna HEV in two years).
2009 •Developing hybrid electric vehicle (Plans mid-and large-sized LPI-HEV commercial sale).
•Independent development of Fuel Cell Bus System.
Gas Emission Regulations:
Satisfying SULEV
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fueled by LPG with those of the hybrid system to ensure high fuel economy and eco-friendliness.
LPI HEV will become a contributing factor to the national energy policy for diversifying national
energy sources. The Korean Ministry of Environment, a government body in charge of supplying
HEV, disclosed a plan to promote the use of HEV by giving various tax breaks when these vehicles
enter the commercial market in 2009. Kia Motors is actively researching advanced HEV technology
Sportage Hydrogen
Fuel Cell Vehicle
Main performances
and specifications
Fuel cell stack: 80 kW (by
and expanding mass production. By 2010, Kia Motors will invest additional 300 billion won to
meet annual production capacity of 300,000 units of commercial hybrid vehicles.
Fuel Cell Vehicles
independent development)
Today’s world faces stringent environmental regulations due to air pollution and global warming;
Driving system:
demanding alternative energy sources are additionally being explored to replace diminishing
independent development
fossil fuels. In this age, no matter how advanced a fossil fuel powered vehicle may be, it cannot
Battery system: 20 kW-LiPB
avoid emissions of air pollutants. Fundamental eco-friendly solutions are in the development of
battery
Motor system: 40 kW/80 kW
vehicles that do not use any fossil fuels. Fuel cell vehicles that utilize alternative energy are
Hydrogen fuel tank: 350 bar
gaining in popularity. They are considered as the model vehicle for future generations since they
Weight of empty vehicle:
pose no threat to the environment and no risk of exhausting natural energy resources.
1,850 kg
Acceleration performance:
hydrogen and oxygen in the air. Because this reaction uses sustainable fuel and produces only
18 seconds
Maximum speed: 150 km/h
Fuel cell vehicles utilize electrical chemical energy generated from a reaction between
water as its by-product, it solves both the environmental and alternative energy source problem
at the same time. With the belief that fuel cell vehicles will be the future of the automotive
industry, automotive companies around the world are investing heavily in the development and
commercialization of fuel cell vehicles. Kia Motors is no exception as it strives to lead the fuel cell
vehicle market and further its R&D initiatives with its already advanced technology. Fuel Cell Vehicle Development _ Kia Motors attained major fuel cell system technology
through in-house R&D and secured key fuel cell system parts to establish a firm ground for fuel
cell systems development. Kia Motors made improvements in output and density of cell stacks to
achieve 80 kW fuel cell stacks for the first time in Korea. This 80 kW fuel cell stack was assembled
into the engine room of the Sportage and evaluated through real road test drives. In terms of
durability, Kia Motors’ fuel cell secured a life span of more than 1,500 hours in diverse vehicles. In
addition to stack cells, Kia Motors succeeded in the localization of 95% of its fuel cell system parts
that include hydrogen/air blowers and electric water pumps. Kia Motors developed fuel cell buses
with 160 kW output and compressed hydrogen of 350 bar enabling total driving distance of 300
km with only one fuel charge.
In February 2005, Kia Motors in conjunction with UTC Power, a U.S.-based company,
developed the second generation hydrogen fuel cell Sportage, which showcased improved safety,
driving performance and power, as well as a good starting performance. In March 2007, a
hydrogen fuel cell vehicle developed in-house proved the safety of Kia’s hydrogen storing system
through rear-end-collision and SLED tests of the Sportage. In July 2007, Kia Motors reached
vehicle under -15°C freezing conditions. These technological breakthroughs took Kia Motors one
step closer to fuel cell vehicle commercialization. In addition, the 100 kW fuel cell stack was
developed in May 2007 as a result of Kia Motors’ efforts to enhance acceleration and performance
by increasing cell stack output. Kia Motors, equipped with over ten years of dedicated stack cell
development, improved the output of its cell stacks by 30% while retaining the same volume of
80 kW cell stacks. This cell stacks optimized height, length, and width to be better suitable for
incorporating into a vehicle. Currently, Kia Motors is focusing on the development of cost
effective metal plates, necessary for mass production of cell stacks and, also, the biggest hurdle
for fuel cell vehicle commercialization. By 2010, Kia Motors will improve the output density of cell
stacks and develop economically viable materials while securing a stable supply of quality
materials to enable mass production of fuel cell vehicles.
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Pilot Driving Tests in the U.S _ In 2004, Kia Motors was selected to participate in construction
of hydrogen fueling stations and a fuel cell vehicle pilot driving test project, managed by the U.S.
Department of Energy (DOE). Kia Motors’ selection and results of the participation revealed Kia’s
world-class technical expertise. Currently, Kia Motors is contributing to the commercialization of
fuel cell vehicles by leading efforts to collect vehicle development data and establish safety
criteria for hydrogen fueling stations. Also, Kia Motors secured 320,000 km of driving distance
through five institutions in three areas of the U.S. that test drove 22 Sportage fuel cell vehicles.
U.S. based Chevron’s six hydrogen fueling stations will provide fueling for Kia Motors fuel cell
vehicles. In February 2005, Kia Motors built and operated the first hydrogen fueling station in
Chino Lab, and five additional stations are planned for construction.
Pilot Driving Test in Korea _ The hydrogen fueling station construction and fuel cell vehicle
pilot driving test projects in Korea have been on-going since 2006. Under the project, eight
fueling stations will be built in major cities nationwide, and test driving will be conducted with
the participation of fuel cell research institutes, certification institutes, automobile manufacturers
and fuel suppliers. Kia Motors constructed a hydrogen fueling station at the Mabuk
Environmental Technology Research Center, and plans to operate 30 fuel cell autos and four fuel
cell buses in the capital area and Jeju Province. With the data collected through the test driving
project, thus far, Kia Motors have been able to improve the fuel cell vehicle’s efficiency. Hydrogen
fuel infrastructures were evaluated to set guidelines for regulations. Kia Motors plans to promote
the fuel cell vehicle market and public transportation by encouraging the central government,
public institutions and public transportation operators to participate in test driving fuel cell
vehicles.
Biofuel Vehicles
Biofuel is fuel extracted from the energy created or emitted from biomass, which is material
derived from recently dead biological material, including plants, animals and their by-products.
Unlike fossil fuels, biofuel is perpetually recyclable and considered pure, clean energy since it does
not cause environmental pollutants. The development of vehicles powered by biofuel is critical
for automotive makers in order to maintain a sustainable future.
Bio Diesel Vehicle _ Bio Diesel was the first commercialized fuel to substitute petroleum
through the korean government’s mid-long term distribution plans. From July 2006, as a
voluntary agreement between oil refineries and the Ministry of Commerce, Industry and Energy,
0.5% of bio diesel were added into gasoline. In 2007, the oil refinery industry had expanded its
consumption to around 90,000 tons of bio diesel. In January 2008, bio diesel in gasoline increased
to 1%, and this ratio will increase in phases up to 3%, which will consume 540,000 tons of bio
diesels by 2012. Kia Motors adopted technology to utilize BD5 (gasoline containing less than 5%
of Biodiesel) in its vehicles. In a joint effort with the government-owned Energy Technology
Research Center, Kia Motors tested the BD5 modified Kia Sorento on actual road conditions over a
long term basis to verify the system’s efficiency. Currently, Kia Motors is developing materials and
parts that can properly adapt to the engine for BD5 commercialization.
Bio Ethanol Vehicles _ At the end of 2007, the Korean government began distributing 330,000
liters of Bio Ethanol fuel in two types, E3 (Bio Ethanol 3% + gasoline 97%) and E5 (Bio Ethanol
5%+ gasoline 95%). When fuels are substituted with Bio Ethanol, CO 2 emissions will be Zero
Count and an octane rating (1) of gasoline will be enhanced by the ethanol mixture, as outlined in
the Kyoto protocol. A study indicated that octane increased two to three grades when 10% of
ethanol (E10) is added into gasoline. Kia Motors already implemented current vehicles to utilize
(1)
Octane Number: It is a measure of the anti-knocking of a gasoline or fuel. Higher the octane number,
the lower the knocking rate in the engine.
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gasoline that contains up to 10% of ethanol. Kia Motors is also on course to develop Flexible Fuel
Vehicles (FFV) which can adapt to ethanol containing fuel or other bio-mixed fuels in specific
proportions.
Improvements in Fuel Economy
Improvements in fuel economy are considered an approach to reducing climate change by saving
energy and utilizing energy effectively. The industrial development boom brought increased fossil
fuel usage while diminishing fossil fuel reserves. It also led to fossil fuel prices increaseing and
accelerated global warming. These situations led Kia Motors’ attention to focus on efficiently
utilizing limited energy. Environments around the automotive industry are demanding higher
mileage vehicles to increase energy efficiency. Kia Motors responded to the market and customer
demand by developing fuel economy enhancing technologies to save customers’ bottom line and
meet market demands.
Improvements in Engine efficiency
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The engine in a vehicle is like the heart in a person. Both serve the same critical functions, so
performance and efficiency of the engine can lead to overall improvement of the vehicle. Kia
Motors consistently strives to improve engine capacity, including any relevant parts to secure
efficiency.
Cerato (Spectra) _ Previous Cerato (Spectra) engine was exchanged with the Gasoline Gamma
1.6CVVT engine that is lighter by applying aluminum cylinder blocks to the engine. New small
transmission, Motor Driven Power Steering (MDPS) and silica tires were installed to enhanced fuel
efficiency of the Cerato (Spectra) by 6% from 12.6 km/ℓ to 13.2 km/ℓ, compared to the previous
model.
New Carens (Rondo) _ The new Carens (Rondo) received upgrades to its engine to second
generation Diesel D 2.0 VGT. New Carens also received Variable Geometry Turbocharger (VGT)
technology, a second generation fuel injection system with 1,600 bar of high pressure and an
enhanced lineup variable system. New Carens optimizes its combustion with enhanced VGT that
optimally controls inhaled air flow through the high pressure fuel injection system. Also, the lineup
variable system improved fuel efficiency by approximately 9% by establishing an optimal driving
lineup that enhances effective transfer resulting in fuel efficiency of 13.0 km/ℓ from 12.0 km/ℓ,
compared to the previous model.
Sorento _ The Kia Sorento is built with the diesel A2.5 VGT Engine and 1,600 bar high pressured
second generation fuel injection system. By loading five-speed auto transmission and through
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technology that reduces Cd (Drag Coefficient), Sorento improved its fuel efficiency by
approximately 12%, allowing fuel usage of 10.7 km/ℓ from 9.4 km/ℓ, compared to the previous
model.
Enhancement in Transmission Efficiency
Transmission, which controls the speed of a vehicle, is a critical factor in delivering efficient power
generated from the engine. Enhancement in transmission leads to efficient delivery of power
generated by the engine, which then leads to efficient fuel usage and CO2 emissions reduction.
Miniaturization and staging are the major factors that lead to the enhancement of the auto
transmission. Through constant research and development, Kia Motors develops improved
transmissions and commercialized mass production.
01. 02. 03. 04. The Gamma engine of the Cerato (Spectra) with approximately 6% fuel economy improvement over its previous model.
Second generation engine of new Carens with approximately 9% fuel economy improvement over the previous model.
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Next Generational Small Automatic Transmission _ A small sized automatic transmission,
designed for small-mid sized vehicles, was adopted by new technologies such as the straight
torque converter and disk type spring in 2006. It is also equipped with an aluminum spool valve
and efficient oil pump to enhance efficiency in transferring power to increase fuel efficiency. Also,
99.8% of the parts were supplied by cooperating domestic companies to establish close
relationships to open roads to sustainable future. In terms of safety, high impact gear materials
have been used, so the power generated by wheel rotation is capable for larger vehicles,
including the Lotze with 2,000 cc or more. Highly Efficient Five-Speed Automatic Transmission _ In 2006, a high efficiency 5-speed
automatic transmission was developed after six years of R&D. The transmission implemented
lineup speed management valve body, straight torque converter, high impact gear materials and
high capacity bearing to improve drivability in speed changes and achieve high fuel efficiency.
The new transmission features high efficiency, high capacity and low noise levels. Kia Motors’
revitalized domestic businesses and contributing cooperative companies increased their
competitiveness by localizing 99% of its transmission parts.
Reducing Auto Body Weight
Auto industries around the world are competing to reduce auto body weight. Competition is
intensifying as increased energy efficiency, minimization of environmental impact and improved
performance can be achieved by simply reducing auto body weight. Lighter body weight will
improve fuel efficiency and reduce the amount of pollutants emitted. Weight reductions are
necessary in order to secure future competitiveness developing next generation vehicles that will
utilize fuels, other than fossil fuels. Through continual efforts to reduce auto body weight, Kia
Motors improves economical and environmental values, and actively respond to governmental
auto body regulations. Weight reduction technology revolves around reducing the chassis weight,
which amounts to 30% of the total weight of the vehicle. Kia Motors utilized materials as
aluminum and magnesium that are at least 30% and 40% lighter, respectively, than steel. Kia
Motors also developed new materials that can be applied to plastics and carbon fibers, and
changed the coating method to reduce weight. At the same time, Kia Motors strives to achieve
safety enhancements and cost reductions through the application of new technology.
Lightweight Vehicles by Using Alternative Materials _ Light recyclable aluminum and
magnesium, considered as eco-friendly materials, are key materials for vehicle weight reduction.
Kia Motors enhanced its wheel core, airbag housing, and steering column housing (handling) that
affect noise and vibration levels. Kia Motors applied aluminum to improve suspension parts,
which are directly linked to comfort level when driving. Magnesium has been applied to the body
and seat parts as well as suspension to improve fuel economy and comfort. Approximately 40% of
auto part weight was saved by using magnesium as a single casting material in place of several
steel welded components. In automobiles, reducing the weight of power train parts is an
important factor to increasing performance and fuel economy. Kia Motors will continue to
develop magnesium power train parts that are designed to endure high temperatures.
Application of High-Strength Steel _ The chassis makes up about 30% of a vehicle’s total
weight, thus using lightweight materials guarantees the overall reduction of vehicle weight. The
chassis is the skeleton of the automobile's frame where the engine, transmission and other
essential components are attached. Kia Motors utilizes high-strength steel to increase the
strength of the frame while reducing overall weight. Kia Motors is also developing advanced
lightweight high-strength steel to continue its sustainable efforts.
01. 02. Highly efficient 5-speed automatic transmission developed over a six-year period.
Plasma Coating Method developed to reduce environmental impact and vehicle weight.
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02
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Lightweight Technology by New Methods _ Kia Motors has developed and applied new
methods used for the production of its vehicle parts, thereby lowering the weight of each vehicle.
Kia Motors applied a long fiber strengthening PU foaming method to the package tray parts of
the Opirus (Amanti) model, instead of applying the conventional heating press molding method
for resin-felt materials. This reduced the weight of each vehicle by 800 g. Additionally, vehicle
weight is also reduced with the incorporation of resin-felt and W/Stock.
Lightweight Technology Utilizing Eco-friendly Materials _ Volatile Organic Compounds
(VOC) such as formaldehyde and toluene can cause eyes, nose and throat irritations. Kia Motors
has been developing VOC emission reducing technology with eco-friendly materials to protect
vehicle users and reduce negative environmental effects. Kia Motors have developed eco-friendly
water-soluble coating agents (primer and top coating) and applied them to internal parts (such as
crash mat and door trim) of the Lotze model. As a result, VOC emissions were reduced and the
overall quality of the product improved (such as lowering two odor levels). Kia Motors plans to
expand the application of new coating agents to other models in the future.
Auto Lightweight Technology through the Development of New Materials _ Overall
vehicle weight can be reduced by applying lightweight materials to the vehicle’s production. By
applying lightweight TALC-filled Polypropylene (PP+Talc 5%) instead of TALC (14%)-filled
Polypropylene and Polyethylene materials to the plastic door trims, the Cerato (Spectra) shaved
off 0.3 kg from its total weight.
Other Eco-friendly Technologies Developed to Produce Lightweight Vehicles _ Kia
Motors has also developed an eco-friendly plasma coating method that can replace conventional
and primer coating methods, for the application of external plastic parts. Plasma coating is a
superior coating method as the polarity of the plastic surface changes to form a tighter bond with
the coating material. The Plasma coating method has been applied to the wheel cover of the new
Carens since 2006.
Reducing Gas Emissions
NOx and Particulate Matter (PM) are emitted by vehicles with internal-combustion engines.
Reducing gas empowers environmental sustainability. Kia Motors firmly set zero gas emission
targets and is striving to reduce gas emissions in phases by developing the necessary technology.
Currently, all Kia Motors vehicles’ gas emissions are managed in accordance with each country’s
emission regulations. Kia Motors is not satisfied by merely responding to pre-existing regulations,
but focuses on developing technologies to surpass future regulations. Efforts to reduce gas
emissions can be identified into two categories, regional geographic response to emission gas
regulations and the development of eco-friendly engine technology.
Regional Response to Gas Emission Regulations
North America (Gasoline Powered Vehicles) _ The U.S. has the highest sales of gasoline
powered vehicles but maintains its federal (Tier-2) and California state Low Emission Vehicle II
(LEV-II) regulations. These two types of regulations have seen continuous evolution since 2004,
and LEV-II and Zero Emission Vehicles (ZEV) are considered as the world’s most demanding gas
emission regulations. In response to LEV-II, Kia Motors is currently selling Cerato, Super Ultra Low
Emission Vehicle (SULEV), with a Beta 2 Engine. Also, current Kia Motors’ models in the market
such as the Pride (Rio), Cerato (Spectra), Lotze (Optima/Magentis), Carnival (Sedona), Sportage
and Sorento satisfy gas emission regulations. 48
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E.U. (Diesel Powered Vehicles) _ Traditionally, diesel vehicle demands have been high in the
E.U., and E.U. Regulations of PM (Particulate Matter) and NOx emissions continue to evolve over
time. Current Euro 4 regulations in Europe were established in 2005 and all current Kia models,
such as the Pride (Rio), Cerato (Spectra), Sportage, Lotze (Optima/Magentis) and Carens (Rondo)
conformed to this regulation. The E.U. expects to strengthen regulations to Euro 5, which will
reduce PMs by 80% of NOx by 30% compared to Euro 4. The Euro 5 regulation is planned as early
as September 2009. The E.U. is also in talks to establish Euro 6 regulations which would reduce
NOx emissions by 60%. Besides stringent regulations, the E.U. demands lowering CO2 emission to
130 g/km by 2012. In response to strengthening regulations in the future, Kia Motors plans to
apply Diesel Particulate Filter (DPF) to its diesel vehicles. Kia Motors is also making efforts in
developing Selective Catalytic Reaction (SCR) technology to reduce NOx dramatically. Currently,
Morning (Picanto), Carens (Rondo), Sportage and Sorento are available for sale.
Korea _ In the Korean market, with equal distribution of both Gasoline and Diesel vehicles
compared to other regions, regulations are in place for each vehicle. Since 2006, Korean
regulations are at equivalent levels as LEV-II of California for gasoline vehicles, and are
strengthening more regulations in phases of 25%. For diesel vehicles, Euro 4 guideline is applied
and all Kia Motors models after 2006 satisfy this regulation. Other than these regulations
mentioned above, On-Board Diagnostics (OBD) requirement on gasoline vehicles are satisfied by
installing OBD on all 2007 Kia models. Current vehicles that currently satisfy local regulations is
shown below.
Gasoline vehicles: Cerato (Spectra), Opirus (Amanti), Picanto (Morning), Lotze (Magentis/Lotze)
Diesel vehicles: Sportage, New Carens (Rondo), Sorento, Mohave (Borrego)
Development of Eco-friendly Engine Technology
PM Reduced Emission Diesel Engine _ PM sedan diesel engine adopted CPF (Catalyzed
Particulate Filter) to dramatically reduce air pollution. This engine complies with high capacity,
eco-friendly, and low noise regulations of Euro 4, and is equipped with an advanced feature that
allows more than 90% purification efficiency. This eco-friendly engine is equipped with a filter,
which can be used for the engine’s lifetime. Kia Motors is the first automotive maker in Korea to
apply the E-VGT, high capacity CGI cylinder block and Piezo fuel injection system to achieve
3rd Place in the Most Eco-Friendly Auto Maker 2007
Kia Motors, along with Hyundai Motors, took 3rd
USC evaluates vehicles for pollutants and gas emis-
place in "the most eco-friendly auto maker 2007"
sions that contribute to smog and global warming.
in the United States. The Union of Concerned
In the 2007 evaluation, Kia Motors took 3rd place
Scientists (UCS), an organization consisting of
followed by Honda and Toyota. UCS revealed that
environmental scientists, has been selecting eco-
Kia Motors‟ vehicles emit 87% of gas pollutants
friendly auto makers every two years since 1998.
compared to 100% industry average.
cee‟d, Selected as Best Car by Major Auto Magazines in Britain
British magazines, Practical Caravan and What
ing performance, fuel efficiency and low emissions.
Car?, both selected the cee’d as the best eco-
They also reported that Kia Motors’ high quality
friendly hatchback. These magazines evaluated
vehicles are making Ford, Vauxhall and Renault in
cee’d as a high quality vehicle with excellent driv-
Europe nervous. 01. 02. Highly efficient, environmentally friendly and quiet, low-emissions engine.
Eco-friendly I-4 Gamma Engine that boasts low noise quality, light weight, improved engine performance and reduced gas exhaust.
01
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maximum horse power of 240 and maximum torque of 46 kg·m. In 2006, PM sedan diesel engine
received 52nd IR52 Young-Sil Jang Award, named after an acclaimed Korean scientist.
I-4 Gamma Engine _ Kia Motors succeeded in developing the I-4 Gamma Engine, a gasoline
engine designed for small-mid sized vehicles, in 2007. This engine is regarded as an eco-friendly
gasoline engine since it reduced the weight of the engine, yet improved the engine’s capacity by
utilizing high pressure treated aluminum block. Exhaust manifold, a part that distributes inhaled
air in cylinder, is made from plastic to reduce engine weight and noise levels while improving
engine performance. Kia Motors also arranged exhaust manifold in the back and applied
WOC+UCC, an efficient purification catalyzer to reduce catalyzing time to accomplish gas
emission reduction. In terms of durability, Kia Motors utilized a silent timing chain and high
performance electric control system and proclaimed world-class quality by guaranteeing its
engine for 10 years or 100,000 miles. The entire I-4 gamma engine was made with domestic parts
and awarded with the 17th IR52 Young-Sil Jang Award in 2007. Currently, Cerato (Spectra)
contains the gamma engine. The gamma engine is planned to be installed in mid-sized vehicles
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and Crossover Utility Vehicles in the future.
V6 S Engine _ Noise, vibration and starting delay have been known as the few drawbacks of
diesel engines in the past. To overcome these drawbacks, the V6 S Engine was developed in 2006
by applying the Piezo fuel injection system, high capacity steel cylinder and rapid thermal
generation capability. In 2006, V6 S Diesel Engine for 3,000cc vehicles was certified as New
Excellent Technology (NET) by the Ministry of Science and Technology and Korean Industry
Technology Committee.
Reduction in Resource Usage and Recycling Improvements
Steep increase in population and reckless usage of resources are causing resource scarcity while
contaminating the environment, threatening the Earth’s eco-system. As a corporate citizen, Kia
Motors realizes its responsibilities to actively respond to the resource scarcity. To fulfill its
responsibilities, Kia Motors is focusing on developing technologies that utilize alternative
resources and recycle resources whenever possible. To establish a recycling society, Kia Motors
applies eco-friendly concepts to every phase of its product development. Kia Motors designs
products and actively evaluates them through Life Cycle Assessment (LCA) and Eco-efficiency
Evaluation to make every effort in waste recycling efficiency. Active Evaluation on Product Effects on the Environment and Counter Effect Strategies
Life Cycle Assessment (LCA) _ Kia Motors quantitatively evaluates the environmental effects
of its products through the evaluation of the full life cycle of its products, which includes
production, usage and waste. LCA is a part of the ISO14040 series that has been standardized
internationally. When LCA was first introduced, it generally applied to bumpers, dashboards and
fender/hood, engine along with other parts. With accumulated experience, beginning in 2006,
new vehicles now go through Total Car LCA.
As a result of Total Car LCA, the Mohave (Borrego), which debuted in January 2008, was
evaluated to be more eco-friendly than any other vehicle in the same grade. Kia Motors plans to
continuously support environmental sustainability by establishing complete cycle structure where
all new vehicles developed will attain LCA results of previous vehicles. 01. 02. 2007 17th IR52 Young-Sil Jang Award (for I-4 Gamma Engine)
Winner in Third New Excellent Technology (for V6 S Engine)
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Eco-efficiency _ Eco-efficiency was introduced to Kia Motors
Eco-efficiency
in 2007 as an addition to many other environmental indexes to
enhance sustainability. Eco-efficiency is a sustainability
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evaluation method, which evolved in Europe and Japan ever
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since its inception at the World Business Council for Sustainable
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Development (WBCSD) in 1994. The core concept of eco-
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efficiency is to consider both aspects of environment and
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economy during production and service. In order to improve
eco-efficiency, environmental burdens need to be minimized
while improving economic value. Sustainable management is
111.6%
103.2%
100%
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0
only possible through these activities and respecting the
2004
2005
2006
environment. Kia Motors evaluated its eco-efficiency through
in-house-research, which created indexes of relevant corporate business activities, productions,
vehicle’s economic values and environmental burdens. To quantify eco-efficiency, gross sales were considered as a gauge for economic value while
CO2 emissions and usage of resources were measured to determine environmental burden. This
evaluation indicated that Kia Motors increased its eco-efficiency in relation to gross sales, CO2
emissions, and resource usage by 3.2% and 11.6% in 2005 and 2006, respectively, compared to
2004. Eco-efficiency for 2007 will be reported in 2009.
Eco-efficiency is not limited to corporate eco-efficiency and Kia Motors plans to expand the
evaluation’s boundary to production and new vehicle development. Kia Motors also plans to
incorporate systematic index management systems to support eco-efficiency improvements.
(Eco-efficiency = Economic Value ÷ Environmental Burden)
Recycling Rate Yield Program (RAIS-H) _ In response to European recycling certification and
regulations in each country, a web system, RAIS-H (Recyclability Assessment Information System
for Homologation), was developed and implemented. This web system is capable of calculating
recycling rate yields and identifies non-recyclable materials so that these materials can be
eliminated during the eco-friendly design process. This web system simultaneously evaluates both
Hyundai and Kia Motors vehicles, so synergy efforts can be expected. After completing
evaluations on Carens (Rondo) and cee’d in 2006 and Mohave (Borrego) in 2007, results of
evaluations satisfied both recycle ratio of 85% and recollection ratio of 95%, which are regulation
standard. New vehicles are currently going through these evaluations. The RAIS-H system will be
upgraded in the future to include the certifying process within the company. The upgrade will
allow for quick responses to appropriate recycling regulations and is also expected to be used as a
basic guideline for eco-designing.
Acquisition of E.U. Certificate of Compliance with Annex IV
In November 2007, Kia Motors acquired the first
ries, heavy metals abandoning policy and recycling
E.U. Certificate of Compliance with Annex IV
yield process levels. Through this certificate, Kia
among Korean automotive makers. EU Certificate
Motors earned objective credentials on its sustain-
of Compliance with Annex IV is issued by RDW
ability and recycling research. With the certifi-
(Netherlands Department of Transportation). The
cate, effective 2008, Kia Motors’ brand value will
RDW certified Kia Motors’ recycling activities such
increase in the European market.
as recycling within Korea/Europe (Slovakia) facto-
01.
02.
RAIS-H (Recyclability Assessment Information System for Homologation)
Certificate of Compliance with Annex IV
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Eco-friendly Design Digital Verification _ Product disassembly, maintenance and recycling is
set during the product design process. To change the product after production requires a
significant amount of time and expense. Thus, beginning in 2003, Kia Motors implemented a
digital verification system in order to cut down on issues arising after production. In 2007, CAD
modeling for DfR (Design for Recycling) and DfD (Design for Dismantling) were added to the
digital verification process to achieve DfE (Design for Environment) goals.
DfD System (Design for Dismantling) _ Kia Motors integrated the DfD support system into
the CAD modeling verification process to analyze the probability of dismantling, maintenance
and recyclability of a product to improve upon identified weaknesses in the verification process.
01
The DfD support system is divided into three stages of analysis, evaluation and remodeling. A
product’s 3D model is entered into the system to analyze disassembled structure and path, whose
data is then collected to make models for the digital verification process. Any structurally weak
components are identified by the system and redesigned before the production stage. With the
DfD support system, design and redesign duration has decreased by 30% and product dismantling
reduced by 20%; the product’s maintenance, reusability and reproduction-ability have been
improved as well. When this system is used for disassembly and assembly related design plans,
design and redesign time decreases substantially. The CAD linkable dismantling design system is
the first of its kind in the world. With this system, Design for Recycling (DfR) and Design for
Environment (DfE) can be materialized.
Main Function of DfD System
Disassembly Design System Based CATIA
1. Structure / Path Generation
2. DfD Modular Design
3. Check Finished Component
4. Check Tool Application
5. Change Finished Component
6. Video Facilitated Component Verification
7. Score Evaluation of Disassembly
8. Quick Interpretation
9. Help for Each Function
01.
Eco-friendly Design Digital Verification
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Minimizing Waste and Improving Recycling
Automotive Recycling Center _ Since 2006, Kia Motors has operated its Recycling Center with
a recycling capacity of 4,200 vehicles a year. The Center provides technical support for designing
ASR Recycling
Technology
Development
recyclable vehicles, developing scrap vehicles and waste handling/recycling technology and
Scrapped Vehicle
provides technical support for community business partners to build a recycling society. Through
the Center, Kia Motors collects more than 90% of the various liquids and gas in the vehicle
Shredding + ARS
disassembly process to prevent environmental contamination. Kia Motors, also, collects and
separats various internal and external parts for recycling with an over 85% recycling rate. The
Material Selection
Center manages waste processing with real-time monitoring systems for recycling and waste
volumes through cutting edge ubiquitous technology. Kia Motors is striving to develop auto
ARS Recycling
dismantling systems and equipment to supply to small- and medium-sized business partners that
Material Recovery
are in difficult positions to develop recycling technologies on their own. Since 2006, Kia Motors has
Cement Heating Source
held the annual “Scrap Vehicle Handling Technologies Exchange Forum” to share information
Reusable Gas By-product
about national and international auto regulations and scrap vehicle handling technologies with its
partners. Based on technology gained from the Recycling Center, Kia Motors plans to establish
parts-recycling and eco-friendly management starting from the design stages. Additionally, by
offering recycling operating know-how and technology to auto disassembly operators, Kia Motors
will set a standard for managing scrapped vehicles.
Recycling through Automobile Shredder Residue (ASR) _ Recycling auto salvage waste by-
Recycling Process for
Nylon Type Mixed
Waste
Material Selection
product is a crucial technology to preserving the environment. Due to environmental pollution
from waste produced by scrapped vehicles, countries have set stricter regulations, and countries
such as in Europe and Japan set goals to reduce the waste from scrapped vehicles to 5% by 2015. In
Separation of iron,
copper and rubber from
nylon material
response to these regulations, Kia Motors has been researching ASR recycling technology with
various universities in Korea since 2000. From 2005 to 2008, Kia Motors participated in a
governmental ASR optimization research project to improve ASR material recycling rates by
Compressing
Compressed according to
securing disassembled parts recycling and material technologies through the strict selection of ASR
size for washing
quality materials. Kia Motors is also actively developing pure gas energy sources and industrial heat
source technologies to reach a 95% scrap vehicle recycling rate. At the same time, Kia Motors is
Washing
developing technology to completely remove toxic chemicals and harmful materials such as auto
Removing dust, sediments
refrigerants.
and other contaminants
Recycling Materials from Dismantled Components and Mass Production Technology _ In
Strengthening
response to European regulation target of 85% scrapped vehicle recyclability by 2015, Kia Motors
Mechanical property
selects components based on eco-friendly level, economic valuation and work efficiency levels. Kia
uniformity and reinforcement
Flow Chart of Recycling Management
The Scrapped Vehicle Handling System is capable of handling a large quantity of vehicles through its
conveyor-type system in eight recycling stages.
01.
Determine Car
Type
02.
Explosive Material
Removal
Airbag,
Seats,
Pretensioners,
Explosive Removal
Chamber
03.
Hood, Battery and
Tire Removal
04.
Retrieval of Nine
Types of Liquid
such as Oil and
Gasoline
Liquid Retrieval
05.
06.
Dismantling
Dismantling
Exterior Parts, such Interior Parts
as Bumper and
Radiator
07.
Dismantling
Engine and
Transmission
08.
Compression
Body Compression
Press
53
Rubber Scrap Recycling
Process
Fine Powder Creation from
Motors applied and expanded material recycling technology from assembly lines in mass
production to new product development.
Rubber Scraps
(Compound Polyamide (Nylon) Components Recycling): Nylon is the most popular material use for
Rubber Surface Creation
materials used in radiator end tanks were mostly sent to landfill or incinerators because they are
radiator components inside an engine. Classified as a premier engineered plastic, nylon compound
difficult to recycle. However, to prevent nylon related environmental contamination, Kia Motors
Recycled Rubber Processing
collects the nylon compound, such as radiator end tank, fan and shroud, from scrapped vehicles for
recycling while striving to develop more advanced nylon recycling technology to produce more
eco-friendly products. Kia Motors plans to apply recycled nylon re-compounded materials that
Master Batch
have the same level of physical properties as new materials in vehicle roof racks. Kia Motors
New Material for Vehicle
expects to reduce roof rack material costs by more than 20% and nylon disposal costs by 180,000 ~
Component
220,000 won/ton based on incineration costs. The 2008 Grand Carnival and Sportage will come
equipped with the recycled nylon roof rack.
(Reuse of Rubber Scrap): One of the vehicle’s major components, rubber, must retain its key
characteristics of elasticity by being permanently thermoset to prevent future melting.
Thermosetting is obtained from vulcanization, chemical reaction, using sulfur and peroxide. After
vulcanization, rubber is difficult to melt and thereby difficult to recycle. To address this problem,
Kia Motors developed and applied Fine Powder Technology for rubber recycling. Kia Motors
developed the first Fine Powder Technology in the world for rubber recycling. This technology
allows thermoset rubber to be made into powder at room temperature for recycling, and this
recycled rubber can be used on a vehicle’s weather strip. Based on this technology, Kia Motors
researched practical uses for high impact elastic material using Ethylene Propylene Diene
Monomer (EPDM) rubber scrap, fluorinated rubber scrap and end-of-life plastic polymer since
2006.
Component Remanufacturing Technique _ Waste materials from repairing or scrapping are
mostly land-filled other than a few metals. Kia Motors’ research on components remanufacturing
technique will improve resource and energy utilization, reduce negative effects on the
environment and reduce economic inefficiency. Remanufacturing technology restores the quality
of scrap vehicle’s reusable components back to new components. Kia Motors decreases defective
rates with the analysis of major malfunction faults and patterns. Using the analysis, Kia Motors
minimizes vehicle component waste by repairing or scrapping vehicles by recycling their reusable
components through remanufacturing. Kia Motors also performs step-by-step research for
01
Component
Remanufacturing
Process
Collecting Waste Components
standardizing components’ remanufacturing. In addition to the above activities, Kia Motors is
focusing on creating product quality guidelines to reduce quality deviation of remanufacturing
components, developing testing methods for reliability and researching ways to better calculate a
component’s life cycle.
Kia Motors has a large number of patents regarding its reprocessing technique, which is at the
core of remanufacturing. In alternators and start motors, Kia Motors, together with Korean
Dismantling
Cleaning
Testing and Sorting
Repairing and Adjusting
research centers and industries, completed many projects utilizing the remanufacturing technology
and implementation of its testing system. Currently, Kia Motors plans on lunching remanufacturing
components, such as remanufactured alternators and starter motors, with the cooperation of
remanufacturing companies and contractors. Gradually, Kia Motors plans mass production of
remanufactured components in assorted fields. Superior quality with reasonably priced
remanufactured components reduce a vehicle’s overall operating cost and improves environmental
conditions by reducing CO2 usage, increasing reuse of natural resources and energy saving.
Reassembling
Final Testing
01. Alternator produced using remanufactured components
54
Minimizing Environmental
Impacts on Production
The current century’s global condition suggests that the entire globe will transit towards resource
circulation by reducing, reusing and recycling wastes for the global environment. Throughout
production, Kia Motors strives to establish an eco-friendly circular system by minimizing resources
and maximizing waste recycling with the appropriate treatment of industrial waste. The efficient
use of resources and energy controls eco-friendly production and the minimization of wastes. Kia
Motors is also adhering to accomplishing corporate responsibility to improve its society’s
sustainability through complete environmental management and manufacturing process
development.
Utilization of Sustainable Resources
Kia Motors strives to reduce resource usage in production to defend non-renewable resources,
lower resource-intensiveness and raise economic efficiency. To efficiently utilize resources,
minimizing usage of raw materials and wastes is necessary throughout the production process.
Resources such as steel, paint, thinner, aluminum, plastics, papers and polyvinyl are used in vehicle
manufacturing; resources also include energies such as electricity and natural gas. Kia Motors is
enhancing technologies for comprehending and minimizing the use of resources through tedious
monitoring of the manufacturing processes.To efficiently manage wastes, Kia is executing detailed
plans to improve recycling rates by 3-5%, gradually aiming for 0% waste.
Minimizing Raw Materials
Raw materials are essential in vehicle manufacturing. Generally, the more raw materials used, the
more environmental pollutants are emitted. In this regard, the reduction of raw material
consumption is as vital as efficient management of environmental pollutants.
Steel, Paint, Thinner, and Wrap Guard Film _ Kia Motors aims at fully reducing the use of
typical raw materials such as steel, paint, thinner and wrap guard film. Kia reduces the quantity of
steel used in production by replacing it with recycled steel and adopting state-of-the-art
production technologies; thereby improving the material yield ratio. Backed by these efforts, the
total steel usage in 2007 reduced 8.9% compared to 2003. 55
Notably, the steel quantity for each vehicle produced decreased 19.9%. Kia utilizes highly
efficient Robobell atomizers to minimize the quantity of paint and thinner for vehicle surfaces and
top coating; thinners are completely recycled. The amount of paint and thinner used for each
vehicle produced in 2007 was lowered by 9.4% and 8.0% respectively, while the total usage of
thinner increased by 8.1% compared to 2003. The total amount of wrap guard film in 2007
decreased by 24.2% in addition to the lowered amount used for each vehicle production by 33.4%
compared to 2003’s ratios.
Toxic Chemicals _
Kia Motors built the In-house Environmental Security and Health
management system (i-ESH), allowing the company to monitor noxious chemicals usage. To
manage these materials properly and prevent accidents in advance, strict employee training
programs in addition to periodical inspections are consistently operated. Kia Motors is putting
forth intense efforts to reduce the use of noxious chemicals by improving its management
approach. Prior to purchasing and applying new chemical materials, the management system
operates a tedious screening process for verification purposes. Kia’s management and chemical use
are based on characteristics and detailed information laid out by the i-ESH. For Kia’s compliance
with the Montreal Convention, Kia substitutes refrigerants like freezers and CFC, an ozonedepleting substance, with HFC and replacing old equipment with improved technologies.
Steel Usage
Paint Usage
Steel Usage(ton)
220,000
Usage per Vehicle (kg/vehicle)
Paint Usage (ton)
240
240
25,000
220
20,000
200
15,000
180
10,000
180,000
160
5,000
170,000
140
0
210,000
200,000
206
204,247
196,809
190,000
189
188,873
2003
~
2005
2006
192
186,110
12.0
13,438
12
9
13,833
11,669
6
3
0
2007
2003
~
2005
Wrap Guard Film Usage (ton)
10,000
5
500
4.5
400
4.0
300
3.5
200
4.6
5.1
4.4
6,000
4,365
2006
2007
4,376
4,439
3.7
2,000
3.0
100
0
2.5
0
~
2005
2006
2007
* Paint and thinner usage processes: Electro Deposition, Surface and Top Coating
Usage per Vehicle (g/vehicle)
250
254.5
200
234.6
188.6
150
169.6
225
217
189
3,572
2003
15
13.8
Wrap Guard Film Usage
Thinner Usage (ton)
4,000
14
12,489
Thinner Usage
8,000
14.7
100
164
50
0
2003
~
2005
2006
2007
* Wrap Guard Film is thin PE coating for vehicle surface protection.
56
38
39
40
54
63
65
69
70
74
Toxic Chemical Usage
Toxic Chemical Usage (ton)
Water and Weight Ratio in Waste-Paints
Usage per Vehicle (kg/vehicles)
5,000
Water
3.0
100
2.5
80
2.0
60
1.5
40
1,000
1.0
20
0
0.5
0
4,000
2.7
2.7
2.7
2,539
2,692
3,000
2,283
2,000
2003
~
2005
2006
2.8
2,747
Desiccant
Waste-paint
Waste Reduction
100kg
63.6kg
2007
Raw Sample 65%
After Centrifuging 45%
61.6kg
After Adding Desiccant 40%
Waste Reduction
Most raw materials used during manufacturing processes are recycled through an in-house system,
with the rest carried out in waste form. From efforts to reduce wastes generated in plants, Kia
Motors developed a technology that reduces the quantity of water contained in waste-paints of
surface and top coats. With this installment, wastes lowered by 40-65% at the Sohari plant. Kia
Motors is systemically executing activities to reduce waste through the improvement of control in
processes of waste-generating sources. Kia Motors operates the in-house recycling center to
regroup wastes after linear categorizing, consigning regrouped wastes to external specialist
contractors of wastes and scrap disposal.
Kia inspects its contractors at least twice a year concerning related laws and regulations of
waste management. In February 2007, Kia Motors declared “Zero landfill” on three domestic
facilities (Sohari, Hwaseong, and Gangju plants) to phase out landfills. In the first phase, Kia
Motors planned a reduction of landfill waste of less than 1% out of total wastes.
Voluntary Agreements on Toxics Discharge Reduction - 30/50 Program
(1)
Kia Motors signed a voluntary agreement on toxic
models. Kia Motors designated Toluene as the
discharge reduction concerning its environment.
major toxic chemical for reduction in the VA, as
Based on this agreement, Kia Motors managed
a cause for discharging the most toxic chemicals
toxic discharge volume through an ‘investigation
in plants. As a result, Kia Motors lowered the dis-
system to measure toxic discharge volumes. Kia
charge rate by 14.5% compared to 2005. Although
Motors also reduced toxic discharge volumes by
the total rate of paint and thinner usage increased
installing Regenerative Thermal Oxidizers (RTOs)
5.7% along with the quantities of chemical quanti-
for each painting process, injecting microbes in
ties as a result of increased vehicles production, Kia
circulation-tank booths. During the second phase,
Motors reduced the increasing rate of discharged
Robobell atomizers are applied to the painting
volume using eco-friendly subsidiary materials of
process, minimizing over-spray in 2008 and 2009
new model manufacturing processes.
Volume of Toxic Chemical Discharged
Classification
Number of Toxic Chemicals
Discharged Volume to
Transferred Volume
(Type)
Environment (kg/year)
(kg/year)
Volume of Toluene
Discharged(2) (kg/year)
2005
2006
2005
2006
2005
2006
2005
2006
Sohari
11
15
34,353
54,858
146,394
123,315
722,923
617,402
Hwaseong
16
20
252,988
161,789
9,497,837
10,088,372
Gwangju
13
17
36,169
41,617
108,409
177,433
(1)
(2)
Voluntary Agreement on Toxics Discharge Reduction (30/50 Program): In the voluntary agreement that corporate
facility designated, the toxic chemicals reduced its discharge rate voluntarily by 30%, by 2007 50% and by 2009 based
on volume of discharges in 2001. The volume of Toluene summed by three plants.
57
Volume of Waste Generated
Volume of Waste Generated (ton)
500,000
231
Recycling, Incineration and Landfill Rate
230
213
400,000
200,000
213,458
197,180
250
100
200
80
150
60
100
40
50
20
0
0
202,701
100,000
0
2003
~
2005
2006
Incineration Rate(%)
84.9
209
300,000
220,508
Recycle Rate(%)
8.6
88.6
88.2
6.0
6.4
6.5
2007
2003
5.4
~
Landfill Rate(%)
2005
91.5
4.7
3.8
5.4
2006
2007
In 2007, while the landfill rate was about 3.8%. Kia Motors stopped sludge disposal at sea
locations. Hwaseong and Sohari plants are have been recycling sludge entirely as of 2004 and 2007,
respectively. The Gwangju plant is also recycling slag wastes as indicated in the 2007 waste records.
In addition, Kia Motors will continue to increase recycle rates and decrease the amount of
incinerated wastes for execution plans. The total waste generated from three of Kia Motors’ plants
was 202,701 tons in 2007, with 91.5% of wastes recycled. Wastes for manufacturing one vehicle
was 231.4 kg in 2003, but decreased 9.7% to 209.0 kg in 2007.
Minimizing Water Usage
Currently human beings are faced with a shortage of water due to the rapid industrialization and
climatic changes. Kia Motors strives to minimize water usage in manufacturing vehicles to raise
environmental soundness. The main facilities consuming the most amount of water are painting,
engine & transmission and foundry facility. Water consumed by Kia Motors comes from a water
supply facility and underground water. Water is mainly used from a source, but small quantities of
underground water are used in the Gwangju plant alongside water supplies with no impact on
headsprings. Kia Motors purifies and discharges used water to minimize the effect on water
quality. As of 2000, Kia Motors focused on reducing the use of water through its ‘Save Water in the
Workplace’ campaign and equipment investment, such as water installment saving systems in
lavatories, increasing the collection rate of condensed liquid from steam, as well as improving
cooling-tower overflow. As a result, in 2007, Kia Motors reduced the total usage rate of water by
9.1% compared to 2003, but usage of underground water increased 19.9% compared to 2000.
Water Usage
Amount of Water Used (1,000m3)
Amount of Underground Water Used (1,000m3)
Amount of Water Used per Vehicle (m3/vehicle)
10,000
7.5
6.7
6.1
8,000
6,000
5.8
5,853
5,719
5,771
5.4
5,198
4,000
2,000
6.0
4.5
3.0
1,762
1,323
1,589
1.5
1,586
0
0
2003
~
2005
2006
2007
58
38
39
40
54
63
65
69
70
74
Eco-friendly Production Technology
The environmental management of Kia Motors covers basic to eco-friendly production stages. The
basic stage is disposing of pollutants generated from production processes, and eco-friendly
production stages for promoting eco-designs in production processes. These efforts lead to
fundamentally reducing pollutants. The eco-friendly production system includes choosing raw
materials, designing the process of production, producing of products, as well as recycling byproducts. Many corporations reduce the cost of processing pollutants, energy saving, and
preventing potential safety accidents by making adjustments and applying eco-friendly
production technologies. Kia Motors is investing in the improvement of production processes and
facilities, as well as installing optimized pollutant reduction and prevention systems for
establishment eco-friendly systems.
These eco-friendly production technologies will be applied under the second mid-long term
environmental management strategies carried out between 2006 and 2008. Kia Motors will
extend the application of eco-friendly production technologies each year to minimize pollutants.
Countering Climate Change in the Workplace
Reduction of Greenhouse Gas Emissions _ Since 2006, Kia Motors adheres to enhanced
management abilities concerning greenhouse gas emissions from worksites, including Sohari,
Hwaseong, and Gwangju plants, and its A/S centers. Kia Motors has executed third party
verifications for clear and objective processes in inspecting greenhouse gas emissions, limiting
emission volumes, greenhouse gas inventory and database systems, and for the maintenance of
monitoring systems for the first time in the nation. The annual verification is being expanded
upon for execution reliabilities. Kia Motors plans to extend its verification systems to its China
and Slovakia plants, updating work guidelines and emission standards of greenhouse gas.
Furthermore, Kia Motors has a plan to establish an inventory system for domestic and
Goals of Reducing Greenhouse Gas & Long Term Plan
Volume Trends of Greenhouse Gas emitted (~2020)
Volume of CO2 emitted (1,000 ton CO2/year)
BaU
1,000
900
908
800
1,007
1,030
1,043
923
934
942
952
938
894
751
700
694
600
500
581
2000
2004
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
*BaU (Business as Usual) : Indication of incremental trends in the volume of emissions and energy used, per vehicle,
produced if 2006 plans are not executed concerning emission reductions after 2007.
*Emission Estimate Criteria
•Estimation is based on low heat quantity. Estimate for areas one, two, and three (Except quantity of HFC in area three).
•Excluding A/S Centers, the Boundary applies to operation controls.
Reduced Volume per Vehicle Trends
Volume of Greenhouse Gas emitted (1,000 ton CO2/year)
Volume of Greenhouse Gas emitted per Vehicle (kg/vehicle)
1,100
900
700
500
724
581
694
680
655
655
918
914
626
610
942
934
789
648
599
596
300
100
2000
2004
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
59
overseas locations, and examine emissions statuses, analyze potential emission volumes and lower
emission volumes from greenhouse gases. As of 2008, Kia has made plans to rigorously reduce
greenhouse gas and wastes, setting the goal for 2020 mid-long term pollutant reductions in
joining the “Voluntary Industrial Agreement in Response to Climate Change and Protection of the
Environment.” In looking at volumes from 1990 to 2007, from the Korea Energy Economics Institute’s
Roadmap establishment of mid–to-long-term plans for voluntary greenhouse gas reductions, Kia
is setting long term goals for reducing volumes by 17.6 % per vehicle produced until 2020 by
developing various technologies. Other than the Roadmap, Kia also controls emission volumes
with in-house checklists. In 2007, the volume decreased 25% per vehicle produced compared to
2003. Energy Reduction _ From 2000, Kia Motors continually participates in ‘Voluntary Agreement of
Saving Energy’ for energy reduction activities. Since Ton of Oil Equivalent (TOE) largely consists of
electric power and LNG, Kia is currently focusing on electric power savings. At the Hwaseong
Plant, Kia Motors has installed inverters in air controlling units to maintain steady and proper
indoor temperatures. This results in energy savings worth 347 million won per year. Kia also saved
energy costs of 250 million won per year with cooling technologies which condense the air with a
water supply. For the first and second plants in Gwangju, old steam-air controlling units have
been replaced with direct fired steam-air controlling units. The equivalent of saved energy
amounted to 700 million won per year, and approximately 4,000 reduced tons of CO2 emissions.
Condensers have also been installed in substations of each plant to break reverse currents of
power supply. The energy saved an equivalent of 250 million won a year reducing 2,000 tons of
CO 2 emissions. In 2007, Kia Motors installed Solar Photovoltaic System in Gwangju, Incheon,
Changwon, Wonju and Cheongju facilities, and a Solar Hot Water System in its Gangneung facility
to save on energy costs, usage and reducing greenhouse gas emissions. The Solar Photovoltaic
System has been designed to use solar light as an energy source and enhance the eco-friendly
environment of Kia Motors’ facilities; saving electricity costs by approximately 9.8 million won
Solar Photovoltaic System
Data Transformer
(Solar Radiation, Electric Power)
Solar Cell 50 kW
(220W x 252 cells = 50 kW)
Monitoring System
Utility-Interactive Inverter 50 kW
(3,380V 60Hz)
KEPCO
Power Lines from Korea Electric
Power Corporation
Total CO2 Emissions
Area 1,2,3
Unit: 1000 tCO2 /year
Area1,2
LNG
2,500
Electric Power
400
1,619
1,476
1,000
500
Fuel and Oil
Unit: 1000 TOE/year
500
2,000
1,500
Total Energy Usage
783
659
1,555
1,449
300
200
734
678
0
100
0
2003
~
2005
2006
2007
* Applied to four Facilities (Sohari, Hwaseong, Gwangju, and Seosan plants)
and A/S division
* Applied from 2003 due to Changes of Internal Criteria for the Estimate
176
15
218
18
18
128
106
2003
207
~
2005
122
2006
207
16
110
2007
• Area1(Stationary combustion): LNG, LPG (Propane), LPG (Butane), Gasoline, Diesel, and Kerosene
Direct
(Mobile Combustion): LPG (Propane), LPG (Butane), Gasoline and Diesel
Emissions (Fugitive Emission): Refrigerants for Freezers (HFC-134a), Substation (SF6) and
Fugitive in Charging Refrigerants into Vehicles
(Process Emission): CO2 (welding) and Detergent
•Area 2 (Indirect Emission): Electric Power
Indirect
Emissions •Area 3 (Indirect Emission): LPG (Butane), Gasoline, Diesel, and Charging Refrigerants into
Vehicles (HFC-134a)
60
38
39
40
54
63
65
69
70
74
every year, reducing approximately 33 tons of CO 2 emission volumes. Kia Motors improved
environmental soundness through the installation of the Solar Photovoltaic System. With such
improvements, Kia Motors was awarded an excellence award in the “Second Renewable Energy
Installation Competition” by the Ministry of Commerce Industry and Energy and Korea Energy
Management Corporations in the private sector of energy management. Kia Motors will install
four more Solar Photovoltaic Systems by 2008.
Process of recycling waste heat from RTO system
Hazardous chemical and odor removal using high
temperature (820 °C)
Collected waste heat are supplied to humidity controller
RTO (high-temperature heating)
Regenerative
Thermal Oxidizer (RTO)
Heating/AC and
humidity controller
Atmospheric emission
Waste heat collector
Painting booth
Heat exchanger
* RTO (Regenerative Thermal Oxidizer)
Air Pollutants
In an effort to reduce the air pollutants generated during the production process, Kia Motors is
continuously applying eco-friendly production technologies, improving work processes, installing
optimized air pollutant prevention systems and utilizing materials containing fewer pollutants.
Reduction of Volatile Organic Compounds (VOCs) _ In order to reduce VOCs emissions, that
can adversely affect men’s body and the environment, the first painting plant of Kia’s Gwangju
facility has introduced water-soluble paints. Water-soluble paint contains less organic compounds
than oil-soluble paints, which cut down VOCs emissions during the production process. The third
painting plant of Hwaseong’s facilities completed the installation of water-soluble paint
SOx Emission
SOx Emission (ton)
NOx Emission
Unit Usage (g/vehicle)
NOx Emission (ton)
5
2.5
750
4
2.0
600
3
1.5
450
1.3
1.3
1.2
2
1.1
1
1.3
1.2
2005
2006
1.1
1.1
0
~
471.5
300
200
150
100
0
0
2003
~
2005
2006
2007
BOD Emission
519.0
900
BOD Emission (ton)
482.6
399.9
496.9
300
483.2
387.8
0
125
600
100
450
75
300
50
150
25
0
2004
400
300
750
564.9
451.0
405.0
50
623.9
600
417.6
0.5
2007
1,500
1,200
500
450.5
1.0
Dust Emission
Dust Emission (ton)
492.5
478.4
407.7
0
2003
2005
2006
2007
41.2
39.2
39.4
33.4
40
32.0
31.5
32.1
30.6
2006
2007
30
20
0
10
0
2003
~
2005
61
application equipment. Kia will extend the use of water-soluble paints to all Kia Motors plants. In
addition, Kia improved the workplace environment by installing VOCs thinner filtration system in
order to prevent its employees in the Service Center from VOCs exposure and better its
surrounding environment. Kia also installed the Regenerative Thermal Oxidizer (RTO) system in its
painting facilities to remove VOCs emitted during the drying process. Kia Motors lets no energy
go to waste even during the RTO system. High heat waste generated from RTO is funneled back
to a heat exchanger to supply the air controlling unit for maintaining constant temperature and
humidity in the painting booth.
Cost of steam generation and LNG saved by RTO is approximately one billion won a year. In
addition, Kia Motors installed painting robots, “Robobell,” in surface and top coating processes.
With “Robobell,” Kia Motors increased painting process efficiency, reducing the amount of paint
used thereby improving the work environment by reducing the Total Petroleum Hydrocarbon
(THC) emissions.
SOx, NOx and Dust Reduction _
Kia Motors installed the TeleMetering System (TMS) on
pollutant emitting compenents such as boilers in Sohari and Hwaseong plants in order to comply
with the National Capital’s Special Environmental Protection Law. With TMS, Kia Motors monitors
and controls pollutants, and the information gathered is sent to relevant government agencies to
ensure a dual surveillance system. Kia Motors will focus on establishing more eco-friendly
production systems with additional installations of TMS within the first half of 2008. Through
Kia’s sustainability management, the total emitted volume of SOx, NOx and dust were lowered by
1.3%, 0.7% and 35.9% respectively in 2007 compared to 2003. In terms of emitted volume per
vehicle produced, numbers reduced by 13.2%, 12.7% and 42.4%, respectively.
Water Pollutants
Reducing the Discharge of Water Pollutants through Appropriate Wastewater Processing
_ Kia Motors minimizes the discharge of water pollutants through appropriate wastewater
processing while using as little water as possible. In order to prevent possible environmental
contamination, Kia Motors constantly renovates its wastewater processing system and all facilities
while monitoring the concentration of discharged water with automatic and manual measuring
systems, including TMS. In 2008, Kia Motors will enforce strict management of water pollutant
discharge with the installation of improved TMS in its Hwaseong Plant. The discharge of BOD and
SS in 2007 was lowered by 8.6% and 40.3%, respectively, and its quantity per vehicle produced
was lowered by 7.8% and 47.5%, respectively, compared to 2003.
Managing the Source of Pollution _ The existing processing facilities generate oil waste and
oil mist from cutting processes that cause air and water pollution. In an effort to solve this
problem, Kia Motors installed Dry Hobbing Machines that use compressed air instead of cutting
COD Emission
COD Emission (ton)
SS Emission
SS Emission (ton)
150
120
72.9
69.1
69.5
60
62.1
69.5
50
80
40
60
30
40
20
20
10
65.2
30
0
0
2003
~
2005
2006
10.0
2007
10
9.0
8
67.2
90
66.1
100
6.2
4.7
6
4
9.6
7.7
6.2
0
2003
~
2005
2006
2
4.6
2007
0
62
38
39
40
54
63
65
69
70
74
oil on new micro AT gear processing lines of the automatic transmission plant in its Hwaseong
facility. In addition, Kia Motors reexamined the sludge forming process through various tests and
solvents to reduce its viscosity in order to increase the collected volume, improve turbidity and
reduce the rate of clogged sludge machines. By doing so, Kia Motors lowered the amount of
waste paint remaining inside the settling bath, minimized the foul odor from the remaining
waste paints and reduced the amount of paints.
Establishing Efficient and Eco-friendly Logistics Systems
A large volume of greenhouse gas is generated from the transportation of raw materials, parts
and vehicles. Even though there is no specific governmental regulations on greenhouse gas
emissions from product distribution, Kia Motors seeks to minimize air pollution throughout its
entire logistics system. To reduce CO2, Kia Motors is planning CO2 reduction methods based on
CO2 volume estimates based on logistic processes. As of 2007, Kia Motors practices an eco-friendly
distribution system by evaluating the condition of its entire distribution system to find and
implement possible improvements. A systematic plan was developed to build an eco-friendly
distribution system in 2007. In 2008, Kia Motors will implement the plan and report the
performance of its eco-friendly distribution system in the future.
Product Distribution _
Product distribution or logistics consists of procurement, production,
domestic sales and overseas export. Kia Motors is planning to reduce CO2 emissions by analyzing
the current status of CO2 emissions from each distribution point, including production, domestic
sales and loading ports for overseas exports.
Efficiency through Reduction of Each Logistical Area _ Kia Motors estimated the volume of
CO2 emissions in each distribution points as of 2005. Kia Motors also investigated Modal Shift to
energy-efficient transportation, methods in which to improve load efficiency, optimized
transportation paths, integrated transportation, building a center for integrated distribution and
large-scale transportation vehicles to raise efficiency through the reduction of each logistical area.
Automotive Logistics Flow Chart
Parts Division
Factory
(Customers)
Plant
Port
Orange Portion
is the first area in
reducing CO2 emissions.
Export
Plant
Green Zone
Kia Motors is supporting its eco-friendly workplace by expanding the green area to secure its
green zone ratio according to the building area increase in the workplace. In addition, Kia has
managed facilities that may cause soil contamination since 2000. Currently the leaking out
accident did not occur even one case.
Green Zone
Sections
Sohari
Hwaseong
Gwangju
Slovakia
China
Site area (m2)
508,721
3,251,923
1,031,288
1,665,000
450,000
Building area (m2)
213,144
987,538
399,546
228,503
94,000
24,374
637,000
88,308
1,095,000
38,000
8.2
28.1
14.0
76.2
10.7
22,002
228,752
98,044
2,848
1,853
Green area (m2)
Green rate (%)
Reforestation (trees)
63
Environmental
Management System
Kia Motors installed an aggressive Environmental Management System and established hazardous
material management to actively support the growth of environmental sustainability.
Environmental Management Performance
Fostering an Eco-friendly Workplace
In order to minimize environmental impact from production and pursue environmentally sound,
sustainable development, Kia Motors met with the stringent requirements of ISO14001 for the
certification in 2003, and completed renewal of the certification in 2006. Eligibility and validity
was evaluated thoroughly after certification examination, later, in 2007. Kia Motors is building an
eco-friendly work place and eco-friendly production systems by removing potential risk factors
and creating a cleaner production system. Kia Motors is improving areas identified by external
certifying organizations and created a self-auditing environment to comply with ISO14001
certification since 2004.
In 2007, Kia Motors performed a thorough examination of management, unit improvements
and waste reduction in 85 departments, A/S centers and three plants, including Seosan plant.
Special attention was paid to the environmental facilities and waste management of the A/S
centers in 20 regions. Kia Motors motivated employees and departmental solidarity by awarding
departments that contributed to environmental management. Kia Motors is striving to solve
problems identified in the environmental audit to ensure and expand sustainable business
activity.
To manage a unified internal audit in 2007, Kia Motors selected rotating personnel from each
department for training as an internal auditor. Kia Motors elevated auditing objectivity through
departmental cross-examination departments and information exchange between auditors. Kia
Motors plans to train all employees as qualified environmental auditors to encourage minimal
environmental loads and develop a sustainable environment.
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70
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Self-Inspection Service Center Designation
In 2007, Kia Motors’ service centers in Wonju, Cheongju, Gwangju, and Yeongdeungpo
designated Self-Inspection Centers in areas of air quality, water quality, and waste disposal. SelfInspection Center system works through voluntarily action of reporting pollutant emission levels
and determining environmental regulation compliance. Designation is only given to institutions
with clean environmental records for two consecutive years and who possess adequate
management and facilities to handle hazardous emission and waste. Kia Motors contributes to
the improvement of the environment by elevating the level of environmental management so all
centers may receive the designation.
Compliance with Environmental Regulations
Kia Motors provides early environmental solutions through preliminary internal evaluations
before new legislation or amending environmental regulations take place. The countermeasure is
posted on the regulation information section of i-ESH to inform employees. Kia Motors sets
stricter internal criteria for managing environmental polluting materials than federal regulations.
Kia Motors developed the Global Environmental Information System (GEIS) to find early
environmental solutions to stricter regulations that may restrict business and to send global
environmental regulation information to the entire company. Kia Motors will continuously
increase environmental performance by finding innovative solutions to environmental problems.
Cooperation System for Elevating Environmental Performance
Exchange between Domestic Automobile Companies
Kia Motors’ Hwaseong plant hosted the Eco-friendly Work Place Workshop sponsored by the
Korea Automobile Manufacturers Association (KAMA) for 40 environmental management
personnel from five different automobile companies. At this workshop, industry experts held
seminars dealing with the regulation status in automobile painting, issues in automobile painting
and a trend in developing paintings.
Afterwards, participants in charge of environmental tasks in their respective companies
presented countermeasures for climate change, examples of estimations and reduction of
greenhouse gas emissions, plans and results for reduction of wastes and discussed the direction of
product development. The Eco-friendly Work Place Workshop is held every year to improve
environmental performance through cooperation between automobile companies, and it
contributes to information exchange between people in charge of environmental management
in the company.
Environmental Conservation Initiatives for Community
Kia Motors is actively communicating with the local community by holding community meetings
to introduce environmental management activities and tours of its environmental facilities. Kia
Motors is improving the local environment through the adopt-a-highway program, environment
preservation activities and monitoring odor and water pollution with local businesses. Kia Motors
is also cleaning local rivers each month 12 times a year through a program similar to adopt-ahighway.
01. 02. Kia Motors was designated Self-Inspection Service Center.
Kia Motors employees engaged in local environmental clean-up activities.
01
02
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Eco-friendly Supply Chain
Management
Securing eco-friendly parts for an automobile that consists of over 20,000 parts is a critical factor
for determining the extent of environmental impact. Kia Motors actively provides support to
partners to achieve eco-friendly management and eco-friendly competitiveness. Kia Motors will
improve eco-friendliness in every aspect of its automotive production.
Environmental Technology Support Group
Kia Motors provided partners with technical support by dispatching its environmental technology
support group (from Sohari, Hwaseong, and Gwangju) every year since December 2005. The
support group offered their eco-friendly expertise and helped establish eco-friendly
management. In 2007, Kia Motors diagnosed and consulted the entire environmental
management system, including the management of its eco-friendly image, pollutants, eligibility
in environmental partners and systematic environmental management for partners to help
establish their eco-friendly service. A violation of environmental regulations by a partner could
damage Kia Motors’ sustainability efforts. Additionally, mismanagement can cause the product to
negatively impact the community’s environment and result in a costly recall of those products.
In order to minimize extra cost and negative environmental impact, Kia Motors pays close
attention to partners’ difficulties. Kia Motors provides pollutant reducing environmental
technology support, information on emission reduction and prevention procedures, and new
environmental technologies to Kia’s partners.
Kia Motors distributed books containing environmental regulations and management items
for partners to support their environmental management. In addition, Kia Motors gives
environmental education to partners’ employees about domestic and international
environmental regulations and Kia Motors’ environmental policy every year. To prevent
environmental regulation violations by partners, the Gwangju plant collaborated with Gwangju
City to create the environmental guardian system to support partners every quarter. From now
on, Kia Motors will become the automotive industry’s future link to chain auto companies from
pre-to post production partners through the ongoing support for environmental soundness.
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54
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Kia Motors’
Environmental Support
Group
Partners
• Establishing support plans
for partners
• Evaluating partner’s
eco-friendly management
• Training eco-friendly
management and providing
technical support (1)
• Supporting EMS construction
• Evaluating partners and
offering incentives
• Partners’ registration
management and other
policies
• Support through
participation of government
environmental project (1)
• Training and consulting
services request
(Evaluation on compliance
with environmental
regulations and training on
eco-friendly management)
• Technical support request
• Environmental solution
request
• Environmental issue
identification and submitting
improvement results
Partners
Support Model
• Improving company image
• Providing a foundation for
sustainable development
• Expanding partners’
eco-friendly management
• Establishing eco-friendly
management system
• Finding solutions to
environmental regulation
problems
• Resolving management risk
Providing Guidelines for Environmental Criteria
Kia Motors distributed ‘Environmental Criteria for Hyundai-Kia Motors’ that lists Kia Motors’
environmental obligation for all auto parts and all parts supplying partners to comply and excel
at global environmental regulations. ‘Environmental Criteria for Hyundai-Kia Motors’ can be read
in Kia Motors’ portal site, Vaatz (http://www.vaatz.com). This guideline provides information on
prohibited materials such as the four major heavy metals, lead, mercury, cadmium and hexavalent
chromium, and restricted noxious materials. It also includes a manual for inputting manufactured
parts IMDS (International Material Data System), manual for submission of RAISH (Recyclability
Assessment Information System for Homologation) and manual for management of MSDS
(Material Safety Data Sheet).
XRF Analyzer Joint Purchase Program
The X-ray Fluorescence (XRF) analyzer allows for the analysis of heavy (metal) elemental
composition of any given sample. In order to offset the cost burden of this equipment for
partnered part suppliers, Kia Motors’ purchasing department created the “XRF Analyzer Joint
Purchase Program” for Kia’s partners in November 2006. 86 partners purchased the XRF analyzer
through this program by December 2007, and by 2008, total 100 partners will have XRF analyzers.
For partners that purchase the equipment, Kia Motors offers incentives through internal
performance evaluations after 2008 and provides purchase cost offsetting to encourage partners’
eco-friendly management.
(1)
Includes support from external experts.
67
Green Dealer System
This system is designed to standardize Kia Motors’ sales dealerships and promote eco-friendly
services in its auto repair shops. With this system, Kia Motors’ branches and dealerships minimized
waste and promoted recycling since 2006. Kia Motors’ eco-friendly service is being promoted
worldwide through the “Act Smart Campaign” voluntarily initiated by auto dealers around the
world. Kia Motors also awards excellent dealers and sales offices to ensure active participation in
sustainable development of overseas subsidiaries.
Eco-friendly Parts Supply Agreement
Kia Motors concluded an eco-friendly parts supply agreement with primary parts manufacturers
in its supply chain in February 2007. This agreement includes Kia Motors’ strong will to be an
advanced company with environmentally friendly management for eco-friendly parts
manufacturing, ethical management and social responsibility.
Eco-friendly Parts Supply Agreement
This agreement is made between Kia Motors (hereinafter “Company”) and partner (hereinafter “Partner”)
to treat global environmental regulations that are strengthened continuously and contribute to the
community, and is effective from the date when Company and Partner signs below.
I 1 I The Partner agrees not to use or include any noxious or dangerous materials for health of
human beings or the environment in manufacturing parts supplied to the Company, and comply
with the “Kia Motors’ Environmental Criteria” for treating globally local environmental
regulations.
I 2 I The Partner should not use four major heavy metals (lead, mercury, cadmium and hexavalent
chromium) for parts that are supplied to domestic or overseas plants by the schedule provided by
the Company.
I 3 I The Partner strives to build an internal eco-friendly system for parts supplied to the Company to
be designed, produced, wrapped and transported in an eco-friendly manner.
I 4 I The Partner should have both eco-friendly and ethic management and pursue sustainable
management that grows with the Company as an advanced company responsible to stakeholders,
including employees, partners and community.
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54
63
65
69
70
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Eco-friendly Procurement
With a voluntary agreement of eco-friendly procurement, Kia Motors strives to expand
boundaries of eco-friendly production cultures. The agreement refers to a system with company
participants who apply eco-friendly procurement procedures voluntarily for eco-friendly
production and procurement.
Conclusion of Voluntary Agreement
In September 2005, the voluntary agreement of eco-friendly procurement was concluded with the
purpose of establishing a sustainable economic infrastructure. As a corporation implementing
voluntary eco-friendly procurement, Kia Motors contributed to establishing a sustainable society
that embraces a cycle of eco-friendly production, distribution and procurement.
Introductory Phase of
Eco-Friendly Procurement
Proliferation Phase of
Settlement Phase of
(First Year from Inception)
(Second Year from Inception)
(Third Year from Inception)
• Benchmarking distinguished
• Enforcing eco-friendly
• Inducing settlement of
domestic and foreign cases
procurement in participating
evaluation in raw and
• Establishing execution plans for
companies
subsidiary materials from
eco-friendly procurement
• Revising construction
cooperative vendors
• Providing information for
specifications and maintenance
• Adding more industrial
eco-friendly products
of procurement systems of
materials to eco-friendly
• Preparing the foundation
goods purchases
products list
through MRO companies
• Training cooperative vendors • Planning on improving,
• Expanding products certified
• Adding more industrial
evaluating and marketing
with environmental marks in
materials to eco-friendly
in voluntary agreements such
response to increase in industry
product list
as eco-friendly procurement
demand
Eco-friendly Procurement Performance
In 2007, Kia Motors’ performance in eco-friendly procurement increased 20% (in monetary
standards), and will continue to expand on eco-friendly procurement.
Eco-friendly Procurement Performance
Affiliated products
2006 Performance
Number of products
Products certified with environmental marks
Products with outstanding recycle marks
Products with reduced hazardous substances
2007 Performance (Estimated)
In million won Number of products
In million won
30
9
29
9
7
242
8
174
35
6,662
34
8,116
72
6,913
71
8,299
(Lead, Mercury, Chrome and Cadmium)
Total
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Costs
Annual environmental management costs for Kia Motors is commissioned over three plants;
Sohari, Hwaseong, and Gwangju. The commission is computed over five different classifications.
Kia Motors also systematized preexisting investment systems since 2004, introducing the
investment evaluation system that helps materialize specific ecological needs as well as reducing
costs; in addition to supporting effective investments each year. The costs, as of 2007, totaled 17.7
billion won; direct costs showed an increase of 4% compared to its previous year. The cost
increase was mainly due to increased eco-activities concerning the community. However, it had
increased the reduction environmental pollution as a result of the ISO inspection and
reappointing eco-friendly companies. Starting in 2008, environmental management costs from
overseas facilities including the first and second plants in China and Slovakia will be taken into
account.
Environmental Management Costs in 2007
Unit: In thousand won
Classification
Total Costs
Total
Direct Costs Associated with the Reduction of Environmental Pollution (Costs
11,976,769
in Investment and Maintenance for Environmental Arrangement)　Indirect Costs Associated With Reduction in Environmental Pollution (Costs in
823,138
Environmental Training for Employees and Environmental Evaluation)
Environmental Risk Maintenance Costs (Costs in Environmental Regulation
557,076
Compliance and Accident Prevention) Waste Handling and Recycling (Costs in Waste Consignment)
Social Environmental Activity Costs (Costs in Community Engagements and
3,825,349
515,631
Afforestation Management) Total Costs
* Environmental costs refer to expenditures from business environment managements. * The A/S division does not include costs associated with research centers. 17,697,963
70
Eco-friendly Achivements
in Domestic Workplace
Sohari Plant
• Location: 781-1 Soha-dong Gwangmyeong City, GyeongGi-do
• Employees: 6,778
• Established: July 1973
• Manufacturing Products: Grand Canival (Sedona), Pride (Rio) and Engine
• Lot Size: 508,721 m2
• Facility Size: 213,144 m2
• ISO14001 Certification: December 2003
Environmental Director and Executive Vice President
Jong-Gil Choi
Activity Overview in 2007
Plant Superintendent
CO2 (Energy) reduction activity
Waste reduction activity
VOCs reduction activity
All employees are partaking in the reduction of
The joint efforts of separate waste collection and
Each of Kia Motors’ painting plants is putting
CO2 emissions, power saving and LNG gas usage
management of recycling companies is resulting
forth efforts to increase efficiency in its painting
with full awareness of the global warming crisis.
in continuous improvement of diminished waste
process as well as collecting process of the used
quantities and increased recycling volumes.
thinners to decrease VOCs emissions. Waste Management Trends
Volume Trends of VOCs Emitted
Volume Trends of CO2 Emitted
Volume of CO2 Emitted (1,000 ton/year)
Total Volume Recycle Volume (1,000 ton/year)
Volume Emitted by a Vehicle (ton/vehicle)
Recycle Volume per Vehicle (kg/vehicle)
Volume of VOCs emitted (g/m3)
500
2.5
50
25.0
100
400
2.0
40
20.0
80
300
1.5
30
15.0
60
200
1.0
20
10.0
40
100
0.5
10
5.0
20
0
0
2005
2006
0
0
2007
2005
2006
Based by Sedan
0
2007
Communicating with community
2005
2006
2007
Environmental Conservation Initiatives
Kia Motors continuously pursues close bonds with local communities, participating in worldwide
eco-activity celebrations of Earth Day and engaging in conservatory activities such as, “one company
conserving one mountain,” and “one company conserving one river.”
Incidents/Lawsuits Related to the Environment: None
Environmental Data
Air Pollutants in 2007
Pollutants
TRI Chemicals in 2006
Emission
Transfer Consumption
Amount
Amount
Amount
868
39
84
746
Di-Ethy lHexyl Phthalate
273
0
3
270
Ethyl Acetate
226
11
21
194
Hydrogen Chloride
110
0
0
110
Sodium Hydroxide
84
0
0
84
Methyl Ethylidene
79
0
0
78
Xylene
76
3
10
64
Water Contaminants in 2007
Potassium Hydroxide
35
0
0
35
Contaminants
Nickel Compound
31
0
0
31
Manganese Compound
31
0
0
31
Dust
NOx
Plant Equipment
Regulation
Actual
Measurement
Measurement
Painting Facilities
100
2.1
Toluene
Drying Facilities
100
2.8
Drying Facilities
200
22.4
* Regulation Measurement Unit is Dust: g/Nm3, NOx, and SOx：ppm
* Actual Measurement is a mean value.
Regulation Measurement Actual Measurement
pH
Pollutants
Volume
5.8~8.6
7.1
BOD
80
3.0
COD
90
13.9
SS
80
1.3
* Emission Amount: Volume emitted into the atmosphere, hydrosphere and soil
5
0.8
* Transfer Amount: Amount of volume handled by outsiders.
N-H
* The restraint volume of BOD and SS is represented by the maximum (in daily average).
* mg/L & pH is excepted from Unit. * pH: Hydrogen Ion Concentration * BOD: Biochemical Oxygen Demand * COD：Chemical Oxygen Demand * SS: Suspended Solids
* Unit: ton/year
* Volume: Total volume in the workplace
* Consumption Amount: The amount of volume actually used in businesses.
71
Hwaseong Plant
• Location: 1714 Ihwa-ri Ujeong-eup Hwaseong City, Gyeonggi-do
• Established: April, 1989
• Manufacturing Products: Opirus (Amanti), Lotze (Optima), Sorento, and Cerato
• Lot Size: 3,251,922 m2
• ISO14001 Certification: April, 2003
Environmental Director and Vice President
Sam-Ung Lee
The installation equipment for collecting waste
Separate waste collection and recycling waste
Thinner recovery system, Regenerative Thermal
heat in the second and third painting plants has
has resulted in decreased disposal quantity in
Oxidizers (RTO) installation, and Robobell helped
increased energy efficiency, hence saving energy
comparison to 2006.
reduce the total emission volumes.
Waste Management Trends
compared to 2006.
Total Volume Recycle Volume (1,000 ton/year)
Volume Emitted by a Vehicle (ton/vehicle)
Volume of VOCs emitted (ton/year)
1,000
3.0
250
500
100
800
2.5
200
400
80
600
2.0
150
300
60
400
1.5
100
200
40
200
1.0
50
100
20
0
0.5
0
2005
2006
0
2007
2005
2006
Based by Sedan
0
2007
2005
2006
2007
Constant conservation activities are taking place in the vicinity of decontaminating plants (each quarter
year), with winter’s wild animal food dispersal activities, and local community outreach programs such as
‘love your neighbor with grain support,’ and ‘the hunger march.’
Environmental Data
Pollutants
Regulation
Actual
Measurement
Measurement
Emission
Amount
Amount
Electric Furnace
20
3.5
Toluene
1 ,891
101
287
General Facilities
100
5.6
1,504
Di- Phthalate
508
0
6
502
NOx
Drying Facilities
200
SOx
Drying Facilities
500
2.5
Ethyl Acetate
507
29
56
421
1.5
Xylene
324
22
38
264
Potassium Hydroxide
127
0
0
127
2-Ethoxyethyl Acetate
67
4
9
54
Methylethylketone
60
3
8
49
Methyl Alcohol
47
2
10
36
Contaminants
Hydrogen Chloride
35
0
0
35
Acetic Acid
24
1
5
18
Dust
Plant Equipment
* Regulation Measurement Unit is Dust: g/Nm , NOx, and SOx：ppm
3
pH
Pollutants
Volume
5.8~8.6
7.0
BOD
80
7.4
COD
90
14.5
SS
80
0.5
5
0.2
N-H
* Unit: ton/year
Amount
72
Gwangju Plant
• Location: 700 Naebang-dong Seo-gu, Gwangju City
• Established: April 1989
• Manufacturing Products: Carens (Rondo), Sportage, Bongo, Bus, and Military vehichles
• Lot Size: 1,014,941 m2
• ISO14001 Certification: November 2003
Nam-Il Cho
Although its production volume was increased,
Kia Motors is reducing the volume of waste
Kia Motors increased its painting efficiency with
compact production facilities and the waste
disposal through recycling waste and separate
the automated Robobell, and decreased VOCs
heat collection helped reduce the energy usage
waste collection.
emissions with the recovery of thinner used in
on producing a vehicle and total energy usage
washing painting gun.
compared to 2006. Volume Trends of CO2 Emitted
Total Volume Volume Emitted by a Vehicle (ton/vehicle)
500
Recycle Volume (1,000 ton/year)
Volume of VOCs emitted (g/m3)
2.5
100
250
100
400
2.0
80
200
80
300
1.5
60
150
60
200
1.0
40
100
40
100
0.5
20
50
20
0
0
0
0
0
2005
2006
2007
2005
2006
Based by Sedan
2007
2005
2006
2007
Kia Motors is continually providing plant tours for local residents through field trips and open
communication activities, engaging in active information disclosures and sharing suggestions. In addition,
Kia Motors cleaned up roads around plants 12 times with volunteers in 2007.
Environmental Data
Pollutants
Dust
NOx
SOx
Plant Equipment
Regulation
Actual
Measurement
Measurement
Emission
Amount
Amount
Painting Facilities
100
9.46
Toluene
Amount
612
29
78
Drying Facilities
100
8.14
505
Di-Ethy lHexyl Phthalate
331
0
7
Electric Casting Furnace
20
8.48
324
Ethyl Acetate
145
7
20
Drying Facilities
200
118
13.38
Hydrogen Chloride
128
0
0
Casting Facilities
128
200
11.63
Sodium Hydroxide
127
0
0
Casting Facilities
127
500
Non-detected
Methyl Ethylidene
119
0
1
118
Xylene
113
0
2
110
70
3
10
57
Nickel Compound
57
0
1
56
Manganese Compound
55
0
1
54
* Regulation Measurement Unit is Dust: g/Nm , NOx, and SOx：ppm
3
pH
5.8~8.6
7.2
BOD
80
13.8
COD
90
20.7
SS
80
2.8
5
1.9
N-H
* Unit: ton/year
Volume
Potassium Hydroxide
Contaminants
Pollutants
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Service Centers
• Location: 20 locations, including 996-3 Siheung-dong Geumcheon-gu, Seoul
• Established: 1958
• Main Service: Warranty and General Repairs
• Lot Size: 220,301 m2
• ISO14001 Certification: December 2003
Jong-Oak Park
AS Division
Environmental management technology
Kia Motors has put in efforts to capture
Separate waste collection and recycling activities
support
renewable energy sources, installing the Solar
is allowing a consistent decrease of waste through
Since the establishment of technical support
Photovoltaic System in five service centers. Kia
processes of waste landfill and incineration.
in 2005, Kia Motors has been aiding partners’
Motors has planned for further development
environmental management systems with Kia’s
suggested by application results, with goals to
environmental management technology.
reduce CO2 emissions through the minimal use of
refrigerants in air conditioners.
Total Volume Volume Emitted by a Vehicle (kg/vehicle)
Recycle Volume (ton/year)
25.0
50
2,500
2.5
20.0
40
2,000
2.0
15.0
30
1,500
1.5
10.0
20
1,000
1.0
5.0
10
500
0.5
0
0
2005
2006
2007
0
0
2005
2006
2007
Environmental education
Environmental evaluation
Investment in eco-friendly infrastructure
Training courses for capacity development are
ISO 14001 is renewed by external audit
Solar Photovoltaic Equipment was installed and
served on a quarterly basis to employees in charge
institutions.
waste storage was also upgraded.
of service centers.
Capacity Development Training for
Environmental Activities
Renewal Examination Meeting
Kia Motors as been strengthening its brand image as an eco-friendly management company by
participating social service activities. 20 direct service centers in Korea are campaigning bimonthly for
environment preservation at community parks, lakes and on local roads.
2007 Environmental Conservation Initiatives Overview
Frequency: 120 times
Participants: 1,494 volunteers
Activities: Mountain, river, park, road, building, and terminal clean-ups
Solar Photovoltaic Facility
74
Special Story
Countering Climate Change
Climate changes are currently posing threats to peace and the future of humanity. Kia Motors is
cognizant of such significant climate changes. Kia Motors also responds to climate changes by
endeavoring to reduce greenhouse gases from vehicle manufacturing processes and CO2 emitted by
vehicles. Moreover, Kia Motors established responding systems countering climate changes, enforcing
tasks in the workplace. Major enforced tasks are generally divided into two categories as follows:
Energy efficiency improvements (clean production) and development of highly fuel efficient vehicles. Countering Synopsis of Climatic Change Convention
Distributing Eco-Friendly Vehicles
Enhancing Energy Efficiency
Establishing the Foundation for Responding to the
(Enforcement)
(Enforcement)
Kyoto Protocol (Enforcement)
• Developing hybrid electric vehicles
• Reducing CO2 in the workplace
• Establishing the foundation for greenhouse
• Developing fuel cell vehicles
• Voluntary agreement to reduce
gas statistics
• Expanding next generation diesel vehicle
• Joint response with academia, government and NGOs
distribution
• Recycling of waste reduction
• Training and PR domestically and overseas
• Developing technologies in fuel efficiency
• Rationalizing the logistics system
• Introducing support programs for business partners
energy usage
enhancement
• Executing internal transaction systems of
• Developing technologies for CO2 reduction
discharging rights
Corresponding Production Trends
2nd phase
Establishment of
Strategic
Corresponding
System
1st phase
Establishing
Corresponding
Infrastructures
Verifying plans
regarding greenhouse
gas discharge volumes,
called “Greenhouse Gas
Inspection Infrastructure
Plans” Benchmarking the
correspondence of
Japanese companies for
countering climatic change
convention
Korea’s first greenhouse
discharge quantity
Third party verification and
greenhouse gas
Development of
computation guidelines
(ver. 1.0) for estimating
quantity of discharge:
Hwaseong plant
Verifying the discharged
volume of greenhouse
gas (Pilot project of Korea
Energy Management
Corporation ): Hwaseong
plant
Developing computation
guidelines (ver. 2.0) to
estimate total discharged
volume and develop
inventory systems (GEIK
ver. 1.0)
Verifying total discharged
volume of greenhouse
gas: Sohari and Gwangju
plants, and A/S division
3rd phase
Promoting the
Reduction of Discharged
Volumes
Establishing reduction
goals and activity strategy
for the discharged volume
of greenhouse gases
Expanding on the
verification on the
discharge volume of
greenhouse gases
(Including overseas
facilities and managing
greenhouse gas in EMS) 2007~
2006
2005
CO2 Reduction Overview by Vehicles
As climate change relief activities have become more and more globalized, developed countries are
implementing various regulations and standards to reduce greenhouse gases emitted from auto
industries. As a leader in auto greenhouse gas reduction, the EU is planning to enforce restrictions with
its standard of 130 g/km from 2012 as a response to disappointing results in voluntary agreements from
the late 1990s. Kia Motors constantly strives to advance technologies and enhance fuel efficiencies. As
75
proof of these constant efforts, Kia Motors released the Picanto (Morning), a small compact vehicle with
CO2 quantity of less than 120 g/km, in the European market in 2004 and continued to produce vehicles
equipped with eco-friendly diesel engines in 2005. As a result of these efforts, Kia Motors achieved CO2
emissions of 167.3 g/km to satisfy KAMA’s mid-term goal of 170 g/km in 2004 and in 2006, achieved CO2
emissions quantity of 163.5g/km, showing a 3.8g/km decrease from 2004. CO2 Reduction Trends in Europe
KIA
KAMA
JAMA Unit: g/km
ACEA
220
210
200
190
180
170
165 (KAMA)
163 (K!A)
160
150
2000
~
2004
2005
2006
* Source-Kama-EU & KIA-AAA
Consecutively Selected as an Outstanding Company for the Voluntary Agreement of
Greenhouse Gas Reductions
Since 2000, Kia Motors has been consecutively awarded as an outstanding company for the Voluntary
Agreement of Greenhouse Gas Reductions, aiding in reversing the greenhouse effect and consistent
environmental improvement activities.
Selected Plants as Outstanding Facilities by Year
Classification
2005
2006
Sohari
2003
◦
2004
◦
◦
Hwasung
◦
◦
◦
Gwangju
◦
◦
◦
◦
* AL Voluntary Agreement: Non-regulated agreement signed by Government and Corporation to set and achieve a
common goal for saving energy and reducing greenhouse gas emissions
* The highest award (Minister Award) is included.
Actively Countering Greenhouse Gas from the Workplace
Kia Motors is an active participant of VA projects to reduce greenhouse gas and save energy. In its
Hwaseong Plant, Kia installed a variety of inverters (duct system, precipitator, coolant pump, exhaust
fan, pump motor, and etc.), boilers (automatic fuel-air ratio control system, economizer, and continual
blow down installation), infrastructure complement, coolant withdrawal systems change, air
compressor, cooling power complement, pre-treated coating exchange efficiency compliment, and
etc.; such installations thereby control activities that reduce unnecessary power usage.
Kia Motors’ Energy Saving Overview
01
02
Classification
2001
2002
2003
2004
2005
2006
Saving costs (In millions/year)
3,079
2,845
2,780
4,675
3,586
5,009
Saving amounts (TOE)
8,526
8,550
8,970
14,456
9,992
18,387
CO2 reduction (tCO2/year)
4,821
4,531
5,448
8,544
5,975
10,131
* TOE (Ton of Oil Equivalent): Standard unit of Calorie (Cal) for one ton of crude oil for various units of energy.
* Results of VA Projects for Sohari, Hwaseong, and Gwangju plants
01.
02.
Awarded for Excellence in Newly Recyclable Energy Accomplishment
President Award in Energy Saving Promotion Competition by the Ministry of Commerce, Industry and Energy Roads are made to connect one person to another.
Kia Motors is a road to a sustainable society.
social value
Countless roads are built to facilitate convenient travel.
Our vehicles, our pride and joy, travel over these roads.
We bring peace of mind to our customers with never-ending efforts to
build safer vehicles for our customers.
Creating more convenient vehicles and preventing vehicular accidents
are the true profit of an automobile company’s responsibility.
Alleviating walking discomfort, attending to those working in the
vehicle production, as well as looking back at the people facing greater
hardship, Kia Motors will materialize the needs that will sustain the
company and society’s coexistence.
78
Disclosure on
Management Approach
Kia Motors strives to maintain healthy relationship with two components of the
company’s driving force, its partners and employees.
Kia raised the bar with “Making a Great Work Place,” which boasts employees’
satisfaction, employment security, and employee’s rights protection. Kia is continually
expanding support for management stability and competitiveness of business partners.
Beyond offering excellent customer satisfaction, Kia Motors enriches lives with
comfortable reliable vehicles and active contribution to local communities.
Under the slogan, “Moving Together with the World,” Kia promoted harmony with
the community by contributing to the development of safer traffic culture and advancing
mobility for the people with disability and disadvantaged drivers. From 2007 onward, Kia
Motors continues to expand the community engagement with volunteer work and global
community activities.
Materiality Analysis Results
2008 Sustainability report amended expansive information in the social value section to
correct the inadequacies, noted in the last year’s stakeholders’ satisfaction survey. For the
issues below, Kia Motors’ categorizing system helped locate inadequacies in the report,
while valuable contents were organized into graphs to allow clarity of the data. Results
gathered from various outside parties are clearly organized for viewing.
Employees
Employees’ Rights and
Labor-Management
Relationship
Benefits and Training
Workplace Safety
• Creating Jobs (for 220
people) and Awaiting
Retirees Support
• Running Committee of
Employment Stabilities
and Committee of Next
Generation Management
• “Making a Great Work
Place” (Providing better
benefits and training,
events supported by
employees, and cheerful
culture)
• Decreased 51 Industrial
Accidents
Business Partners
+
Partnership Support
Fair Trade Settlement
• Operating Support System
for Business Partners
• Executing 5 Star System
• Training Employees of
Business Partners
• R&D Partners Tech Day
Meeting
• Guest Engineering
Program
• Supporting Management
Stabilization (Improving
payment condition and
financial support)
• Joint Overseas Market
Entry
• 2nd Partnership Support
Reinforcement
• Settling Fair Trade System
Customers
+
Customers’ Safety
Customer Service
• Development of Vehicle
Safety and Intelligence
• Demonstrated
Superiority in Safety
Evaluations
• Awarded Best Service
Satisfaction
• Awarded 1st Place in
Best Korean Standard Service Quality Index
(four consecutive years)
• Awarded 1st Place in
Superior Korean
Standard-Service Quality
Index by Korean Business
Call Center
• Operation of Auto
Q Services and Before
Services
• Kia Motors America
Awarded 1st Place in
Best Website by J.D.
Power and Associates
Local Community
+
• Advancement of
Transportation for the
People with Disability and
Disadvantaged Drivers
(Easy Move)
• Expansion of Safer Traffic
Culture (Safe Move)
• Employees Volunteer
Services
• Establishing
Infrastructures for
Regional Communities
• Strengthening Global
Community Service
Activities
• Total Expenditures in
Community Engagement;
7.4 billion won
79
Employees
Businesses focused only on the optimal allocation of resources and financial growth exposed
various problems. This initiated outcry from the world to change the corporate management
paradigm to focus on strengthening corporate responsibilities to the society. As a responsible
corporate citizen and a member of the community, Kia Motors seeks public and stakeholders’
optimal benefit, carefully dealing stockholder matters and working towards a common good.
Additionally, special attention is given to all stages of corporate earning distribution in a fair and
responsible manner with the stakeholders in mind. Large aspect of Kia’s community contributions
is creating new economic supplement to aid local communities and to further aid country’s
development. Kia Motors is generating economic values for local communities through job
creation, while its employees establish the company’s future values and aid in obtaining goals of
the sustainable management. Kia is made possible through people, just as Kia’s products are
made to better the lives of people. Caring for its employees is as important to Kia as its primary
goals of sustainable management growth and responsibility to the community.
Total number of Employees
Unit: Employees
On December 31st, 2007, Kia Motors reported a total of 32,977
employees. Through job creation, Kia seeks to improve the
50,000
economic value of its local communities and further improve
40,000
30,000
Employees Overview
Employees and Employment
32,745
33,005
32,977
the nation’s economy. Each year through various public hiring,
Kia hires great number of new workers under equal
20,000
opportunity practice. In 2007, 220 new employees were hired.
10,000
Employment Loss Management and Retirees Support
0
2005
2006
2007
Kia Motors attributes foundation of business competitiveness
with hiring and retainment of highly valuable employees. In
order to comprehend the employees’ satisfaction, Kia examines and manages information
regarding employees’ age, gender, region, occupation changes and its turnover rates. For new
employees, Kia provides a mentoring system to aid the employees’ adjustment stage and prevent
skill relapses. Mentoring system is established through representatives of each department,
assigning team formations of either 1:1 or 1:3 to provide this system with guardianship. Once
employed, during the first six months, employees take turn at least once a month establishing a
80
78
79
92
97
104
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Employees
Business Partners
Customers
Community
productive meeting to discuss various difficulties and socialize with other employees. In the
process of an employee’s retirement, Kia’s awaiting retirees are entrusted to outside consulting
agencies to provide psychological stability and facilitate reclamation of the employees’ own
paths. Kia also holds two weeks seminar to give valuable information regarding their health,
assets, and spare time management.
To raise employees’ morale by matching employees with their desired job, Kia utilize a system
of self-assessment report that are used to shift job position at the beginning of the following year
when any work difficulties or desired position are reported.
Education for Awaiting Retirees
Education Contents (a total of five days / 40 hours)
• Reality cognizance: retirement preparation, lifetime plan (prospectus), jobs after retirement, and sense of life
after retirement.
• Self care: image care, health care, and a happy marriage
• Future plans: property management, understanding and viewing company commencement, power resume,
and plans for off-hours.
Number of Trainees
• 37 retirees in 2006 and 26 retirees in 2007
Results from the Satisfaction Report of Retirees
• “Contents are organized appropriately for the awaiting retirees that it will likely provide major help
after retirement.”
• “Education gave me friendly future direction and a welcome relief few months before the retirement.”
• “It was a period where I was given the chance to look back at life. My previously narrow outlook on life has widened
along with my heart.”
Employees by Occupation
Unit: Employees
Positions
General
Production
Technician
Research
Sales
Other
Total
21,711
1,663
108
2,995
183
28,405
2007
Union Member
1,745
Non-Union Member
4,194
21
-
140
217
-
4,572
5,939
21,732
1,663
248
3,212
183
32,977
2006
5,745
21,774
1,672
250
3,228
336
33,005
2005
5,566
21,554
1,661
253
3,239
395
32,668
* Standard for current employees based on assessment taken December 31st of each year.
Employees by Occupation in 2007
Employees’ Location
Unit: Employees
Officer
General
Production
R&D
Privileged
Total
Head Office
-
30
-
-
4
34
Apgujeong
-
2
-
-
-
2
Wonhyoro
-
1
-
-
-
1
Sohari Plant
-
22
1
-
3
26
Hwaseong Plant
-
50
61
4
7
122
Gwangju Plant
-
17
-
-
2
19
R&D Center
-
11
-
-
-
11
Domestic Regions
-
3
-
-
-
3
Oversees Regions
2
-
-
-
-
2
Total
2
136
62
4
16
220
81
Retirees for 2007
Unit: Employees
Categories
2005
2006
2007
Head Office
96
80
70
Sohari
75
73
59
Hwaseong
93
46
47
Gwangju
64
68
67
R&D Center
766
7
4
Misc.
142
77
60
Total
1,236
351
307
* Head office consists of Yangjae, Apgujeong, Wonhyoro, and oversees regions, and R&D Center consists of Namyang,
Mabuk, Shihwa, and Sohari R&D center.
Job Creation
Unit: Employees
Regional Job Creation Categories
2,500
Head Office
2,000
1,500
1,499
2006
2007
48
52
38
Sohari
150
108
26
Hwaseong
147
278
122
1,101
99
19
47
17
11
Misc.
6
18
4
Total
1,499
572
220
Gwangju
1,000
Unit: Employees
2005
R&D Center
572
500
220
0
2005
2006
2007
* Head office consists of Yangjae, Apgujeong, Wonhyoro, and oversees regions, and
R&D Center consists of Namyang, Mabuk, Sihwa, and Sohari R&D center.
Respect for Diversity and Protection of Human Rights
Formation of Non-discriminatory and Open Work Environment
Kia Motors does not discriminate on the basis of gender, race, religion, or social standing. Each
opportunity is given according to each employee’s individual abilities. Kia’s Employment Stability
Committee is securing full employment of Kia’s employees and building a relationship of trust.
According to employment manual and public standards, Kia follows processes of fair
employment, thereby insuring Kia Motors with competent workers.
Respect for Employees’ Diversities
Kia Motors’ overseas facilities are currently located in the United States, China, and Slovakia. As of
2007 in Kia overseas operations, native employees account for 7,407 employees, making up 18.3%
of all employees. Kia is reviving many regions’ economies through employment, while founding
suitable environmental and cultural formations to create and support enjoyable working
conditions for the native employees.
01
02
The ratios of female employees make up 2.5% of Kia’s employees with a total of 833 female
employees. Currently, there are no females in management positions. Kia Motors practices
management activities with an open mind and accepts differences in perspectives. Kia is putting
efforts to equalize gender in the workplace by progressively employing women and providing
comfortable working environments for both employees.
01.
02.
Slovakia Plant’s Native Employees
Kia Motors’ New Employees in 2007
82
78
79
92
97
104
111
Employees
Business Partners
Customers
Community
Personnel Evaluation and Performance Based Compensation
Kia Motors preserves all matters regarding personnel evaluation, equal treatment of employees,
and job promotion management as stated in Article 36 of the Collective Agreement, and Article 4
in the Rules of Personnel Management. Employees are paid according to the wage criteria
regardless of gender and by objective validity of the employee’s duration of services. Personal
evaluation system objectively measures individual services for improving the employee’s
capacities. Promotion system requires that the official examination board makes consideration on
the basis of various diverse objective data to deal fairly and to advance further objectives.
Employee Representative Assembly Guarantee
According to the 8th Article of the Collective Agreement, it secures union association and the
liberty of their activities. According to the 18th Article in Rules of Employment, if a dispute shall
rise between labor and management, disadvantages may not be charged to employees
participating in a strike. Agreement regulates that the labor and management settle their issues
through negotiations. In addition, for improvement of employees and social welfare, a
conference concerning the collective agreement and labor management is held every two years.
Deliberations regard factors such as cost of living, productivity increase, wage settlement, and
wage negotiations. In order to build collaborative labor relations, a Labor and Management
Council is being operated at least every three months.
The collective bargaining which applies to union members makes up 28,405 members. With
the exception of employees at or above management levels or positions managing any of the
company’s major policies, employees are allowed to obtain union membership. Through the
collective agreement, the labor and management mentions, “following the fundamental
mentality of Constitution and three labor rights, and the ILO, as being in a reciprocally equal
position to being under the faithful principles, union member’s labor conditions, maintenance
improvement, politics, economy, community, and cultural elevation of statuses,” thereby securing
rights and interests.
Human Resources Management
To efficiently resolve employees’ grievances, Kia Motors established consultation service standards
called Human Resources (HR) Ombudsman Services. Located in each business department, various
employees’ personal concerns of promotion or proposals regarding promotion-related operations
are treated and collected with additional aims to improving HR management policies. In addition
to each division, an “Employee Grievance Handling Committee” has been established to help
resolve concerns about an employee’s job allocation. Promotion management keeps all matters of
employees’ concerns confidential to prevent any discrimination against employees.
Correspondingly, in order to resolve employee rights, systems, or general matters, a civil corner
via intranet can be accessed by employees.
Employee Wage
Classification
Total Employees
Consecutive Years of Employment
Annual Wage
Wage per Employee
Unit: Employees, In million won
2005
2006
2007
32,745
33,005
32,977
12
13
13
1,752,972
1,844,824
1,894,262
53.53
55.90
57
83
Education for Protection of Human Rights
To protect the basic rights and privacy of employees, Kia is raising protection standards especially
concerning sexual harassment. HR lectures and workshop programs are given to all employees
each year for sexual harassment prevention. Lectures educate employees with real life and legal
cases in a variety of sessions. Lectures are intended to raise moral consciousness in a societal
working environment with Kia Motor’s goal of obtaining its culture of gender equality. Personal
consultation services for employees are provided in addition to the establishment of personal
consultation committee for female employees.
Education for Sexual Harassment Prevention
• All employees require education in first and second half of each year
(Education from Lieutenant operated separately in each department).
• Education includes laws and regulations concerning sexual harassment, company guide to sexual harassment
prevention, handling procedures, and management standards.
Prohibition of Child Labor and Forced Labor
Kia Motors is pursuant to employment principles only accepting candidates of at least 18 years of
age. Following the 26th Article of the Collective Agreement, no enforcement of work may be
applied on holidays for labor extension. Kia does not take advantages of employees with labor
service extensions.
Win-Win Practice for Employees
Management Disclosure Practice
Following the 14th Article of Collective Agreement providing notification of liabilities, Kia Motors
is making great strides through management disclosure practices. Contents which require
notifications of alterations or changes are trades and incorporations and employment rules;
personnel regulations whereby affecting union members’ by regulations enactment and
reorganizations, appointment and dismissal of directors; position changes, employee
identification changes, audit reports, management performance, and decisions made by the
board of directors. Such notification matters are immediately transferred as documents in
effectively building positive reliability. With the above mentioned and separately, Kia Motors is
regularly (monthly, quarterly, and biannually) disclosing operating results to labor unions for
reciprocal understanding and improvement of joint efforts.
Employees’ Management Participation
Employment Stability Committee formed by employees at Kia Motors, as well as Next Generation
Committee inducing active management participation, keeping ears open to employees’ views.
Employment Stability Committee _
Employment Stability Committee follows 53rd Article of
the Collective Agreement. As an established committee, meeting is to be held once a year, for a
period of two to three months in which the committee discusses general matters and bring
conclusions covering employment and production at Kia Motors. Operations related solutions are
reflected upon directly. In each plant, subcommittees are separately assigned by their
departments, deliberating employment for each plant’s unit and discussing production-related
matters. In 2007, Employment Stability Committee held a discussion ending with a mutual
agreement on labor management in allocating Opirus production line to Sohari plant and
producing a brand new AM, in Gwangju plant.
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97
104
111
Employees
Business Partners
Customers
Community
Next Generation Committee _ Next Generation Committee allows exchanges between middle
management and top management, exchanging ideas and increasing consensus through direct
consultation. Committee is continuing to play a vital role conveying business policies, expressing
Kia Motors’ vision to all its employees, in addition to communicating employees’ various
suggestions to top management groups.
With purposes of resolving crucial pending issues and problems, with a total of 16 committee
members from each division (6th standard: 16 headquarters and operating departments) during
one term of one year, each member attend workshop every month and promotes one subject
quarterly. From 2001, Kia Motors encouraged employees to participate in the management as
Next Generation Committee. Kia finished six terms of the committee throughout seven years, and
18 subjects were applied to operate businesses.
Co-ownership of Ideas
Kia Motors administered an online community for each management department to promote a
knowledgeable community, where new employees to top management committees are given
rights to voice their opinions. Through the community knowledge base, employees may present
suggestions or serious concerns to top management groups and relevant government ministries.
Starting with cost reductions, various ideas for improvements that emerge while on duty may be
presented. Such suggestions or ideas are reflected upon by the administration and top
management groups to aid future activities.
Growth of a “Cheer” Culture
At Kia Motors, in order to maintain a spontaneous atmosphere where employees are encouraged
to have high morale and strive in their operations, a change in company culture is being
promoted by praising Kia’s workers. In 2007, through KIA world and CS plaza, a “cheer relay” and
“cheer board” was newly established to further expand the “cheer” culture. Similarly in 2008, Kia
Motors plans to continue its support of a company culture where employees can effectively
support and actively encourage one another.
Employees Care Efforts
Employee Training
In order to develop and strengthen Kia employees’ abilities, Kia Motors established educational
program system with training provision to raise ability of Kia workers. This has benefited the
company for multilateral management and control. The company is especially focusing on the
training processes of employees that will initiate innovative thinking and cultivate coping
abilities.
Training Programs
Kia’s training program is divided by positions (general administration, Production, R&D, repair
and sales) offering basic skill training, OJT, key human resources, development training, and other
courses for specialty training. Aside from basic training courses, Kia also operates a useful
selection of training programs for employee family members. For welfare of employees, Kia
Motors offers financial support to highly qualified employees as part of its academia-industry
programs.
Training Curriculum _
Employee training curriculum includes management training, OJT, key
human resources, productivity improvement training, and internationalization courses. Training is
divided by employee’s position and executives according to level; leadership training, specialist
01.
02.
Signing 2007 Wage Negotiations
Cheer Board within the Company for Encouraging Employees
01
02
85
training, performance improvement, and overseas human resources training. Kia offers support
training that is best suited to each employee’s own capacities for continual progress and rise in
employee’s ability.
Online Training (www.hkhrd.com) _
Kia Motors was acknowledged by Korea Management
Association and the Ministry of Labor in 2001 and 2004 for the development of employees’ skill
and the online training system. From 2005, online training systems is being expanded and applied
to the employee community base for exchange and application of ideas. Ministry of Labor rated
Kia Motors “A” grade for three consecutive years.
2007 Training Guidelines
Guidelines
Directional Focus
Creating Performance-oriented Goals
Enhancing Training Aimed at Settling Workplace (Headquarter) Issues,
Measuring Effectiveness of Training as a Management Performance
Global Capacity Reinforcement
Internationalization Training Centered on Results, Systematic Development of
Overseas Regional Specialists, and Overseas Training Support Systemization
Laying a Foundation for Capacity
Reinforcing the System of Capacity Training by Occupation and Business
Training
Division
Reinforcing Self-training
Individual Development Plan, Training Based on its Own Needs
HRD Capability Improvement
HRD Management in Global Level, Systematic Development of HRD Specialist,
and Reinforcement of Overseas HRD Benchmarking
Training System
Category
Training Contents
Directors and Leadership Training
New Directors, Executives' Forum, Core Capacity Education (Training people
who were promoted), Leadership Development, Human Resources, and
Promotion Candidates Curriculum
Specialists Development
Training by Occupation : General, Research, Production, Repair, and Sales
Promotion of Capability
On the Job Training (OJT): 28 Cyber and Assessor Curriculums
Overseas Specialists Training
Natives and Residents training
Training Contents
Category
Training by Position
Business Management
Director Training, New Employee Training, Capacity Training, Promotion
Number of Trainees
Training Hours
10,060
235,853
39,815
691,137
32
16,340
4,410
44,814
5,335
118,378
Candidates Training, and Cyber Training
OJT
Computer, IE, CS, Worksite Improvement, CALS/CIM, Patent, Job Transfer,
CAD/CAM, Auto Disassembly, and Repair and Maintenance Training
Key Human Resource
Overseas Education/Training, Graduate Schools, Global Experts, and
Overseas Regional Experts Training
Product Quality Training
Six Sigma, ISO, Divisional group, Proposals, Logistics, VE, and Partners’
Product Quality/Logistics Training
Globalization Training
Foreign Language, Language (Including Cyber Training), Telephone
English, and Overseas Residents
Others
Total
External Training and Workshop
55,722
403,255
115,374
1,509,777
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78
79
92
97
104
111
Employees
Business Partners
Customers
Community
Online College for Housewives (http://hyundai-kia.cyberjubu.com) _
To aid continuing
education and self development of its employees’ family members, Kia offers free Online College
for Housewives that provides up to 60 lectures every month. The college offers special lectures,
standard lectures, as well as open lectures. Any members of the employees’ families are allowed
access to these lectures.
Children School and English Classroom for Employees’ Children
(http://www.ilovehk.co.kr) _
Kia’s children school offers a broad range of content taught at
levels appropriate for children. Ranging from grades three to six, English Classroom for
Employees’ Children is offered during school break periods. Native English teachers and English
training specialists provide various programs such as regular ESS courses, drama courses, “Making
English Newspapers”, and presentation days.
Training Facilities
The following lists Kia Motors’ training facilities for the development in vocational training:
Osan and Paju Human Resource Development Center, Gwangju and Goyang Training Institute,
Sohari Production Training Center, Hwaseong Carens Center, Cheonan Maintenance Training
Institute, Ulsan Seongnae Training Center, and Southern Auto Repair Training Center.
Training Evaluation Index
Training Evaluation Index is divided into arrangement, training operations, and evaluation of its
employees. Training evaluations are conducted using manuals that utilize various evaluation
methods.
Training Status
Position
2005
2006
2007
Training Expenses (In million won)
9,700
9,400
7,100
300
290
220
68
64
46
Training Expenses per Person (In thousand won/trainee)
Training hours per person (hr/trainee)
Training Hours Unit: hr/employee
Position
2006
2007
General
98
87
138
22
Repair
82
83
Sales
51
21
Productivity
Training Types and Training hours Training Category
Business Management
Unit: hr/employee
2006
2007
9
7
23
21
Key Human Resources
1
1
Product Quality Training
3
1
Globalization Training
5
4
23
12
OJT
Others
01.
02.
Employee Training Center (Osan) responsible for employees’ OJT
English Classroom for Employees’ Children, one of many programs offered to employees to improve quality of life.
01
02
87
Since 2007, training levels were based on one’s position and training processes with indices
gathered from each employee with total training hours. Promotion points are deducted for those
employees who do not take part in the course. Training Evaluation Index has been developed for
system management and operation of nurturing future talents, and it is used for making future
plans regarding employee training and evaluations.
In 2007, total training expenditures were 7.1 billion won, 220,000 won per employee, and 46
hours of training for each employee.
Employee Welfare System
In 2007, Kia Motors contributed 333 billion won, 9.8% increase from previous year. For the
advancement of employee’s welfare system, Kia operates many programs such as National Health
Insurance System, Industrial Accident Compensation Insurance System, National Pension System,
Health Management System, and Unemployment Insurance. In addition, some specific items of
Kia’s employee welfare system are: daily life expense support, housing, retirement pensions,
health and safety, motivation, labor unions, and many others.
01
02
Kia Motors’ expenditures of employee welfare systems in 2007 were as follows: 46.8 billion
won for National Health Insurance, 43.6 billion won for Industrial Accident Compensation
Insurance, 63.5 billion won for National Pension and 20.7 billion won for Unemployment
Insurance. In the case of maternity leaves, 37 employees used a total of 3,403 days (92 days per
employee).
Outside legal affairs, Kia established employee welfare system with labor unions to ensure
the employees’ stability and morale, while maintaining positive relationship with labor unions. In
addition, 4,535 employees received interim payments for retirement pensions. A total of 52.4
billion won and 9.9 billion won were paid for supporting employees’ home visit and vacations,
respectively. Kia Motors also offered medical check-up services to 8,410 employees and 5,076 of
their family members. A total of 235 employees received Excellent Employee Awards in
recognition of their outstanding work performances.
Employee Benefits
Kia is putting forth efforts to improve and stabilize the quality of life for its employees. Kia
Motors’ wage system guarantees wage above the legal minimum systemized for all businesses in
the country. Full time and part time employees (as well as hourly) are given nondiscriminatory
benefits. The differences in wages for full and part time (as well as hourly) employees are in grant
provisions relevant to the wages system.
Details of Employee Welfare Costs Unit: In million won
Annual Welfare Costs
Welfare Costs
Category
National Pension
63,479
National Health Insurance
46,816
Industrial Accident Compensation Insurance
43,576
Life Support and Conveniences
117,784
Employment Insurance
20,709
Others
40,650
Total
333,014
500
25
400
300
277.2
303.3
333.0
100
10
8.47
9.19
10.10
0
New Employees Camp 2007
New Employees Camp 2007 Graduation Ceremony
20
15
200
* Others include the following: 15,136 million won in Safety, Health, and Hygiene,
2,884 million won in Culture and recreation, 17,346 million won in Motivation.
01. 02.
Unit: In billion won/In million won
Welfare Costs per Employee
5
0
2005
2006
2007
88
78
79
92
97
104
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Employees
Business Partners
Customers
Community
Industrial Safety and Health
Industrial Safety and Health Committee
Industrial Safety & Health Committee consists of seven members from labor union and
management. Through the committee, Kia Motors manages the company’s assets, safety
maintenance, and well-being of its employees by creating favorable working conditions.
Industrial Safety and Health Committees are located in each plant, consisting of labor union
representatives that seek to fulfill various safety needs of each plant.
Industrial Safety and Health Center Management
Kia motors’ Industrial Safety and Health Center provides medical care for the health maintenance
of employees in every plant. The center ranges in general medical services including treatment
facilities for musculoskeletal disorders. The center also runs free medical examinations and
treatments for business partners’ employees as well as Kia Motors’ employees.
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02
Disease Prevention Management and Health Promotions Program
For health maintenance, employees undergo regular and special medical examinations, adult
disease examinations, and other examinations to detect any diseases at its early stages. Kia
Motors employee’s family members may receive financial support to cover medical expenses from
national health insurance or affiliated medical centers.
In 2007, Kia Motors supported 8,410 employees and 5,076 employees’ immediate family
members with a total of 9.3 billion won. Kia also established the online medical examination
center to expand the medical convenience and employee’s choices connected to Online Med Inc.
(www.onlinemed.co.kr).
Health centers (health gym, sports center) in every workplace allow for employees to maintain
their health. Kia Motors offers employees with musculoskeletal disorders with eight week health
programs prior to work, to prevent any relapses of musculoskeletal illness. Medical examinations
are conducted every three years to find causes and prevent employees’ musculoskeletal disorders
or illnesses that arise from repetitive procedures in the waist, neck, knees, and shoulders. Aside
from musculoskeletal services, Kia operates hearing care services to prevent loss of hearing in
addition to making improvement in the work environment. Through the Industrial Safety and
Health Maintenance, employees undergo routine and special health examinations to aid in health
improvements and working environment.
Industrial Accident Ratio and Total Number of Days Lost
In 2007, 661 industrial accidents were reported on company grounds. Total recovery days are
102,924, which decreased by 43,607 days compared to 2006. There was no record of sick leaves
from illness. The industrial accident ratio showed an increase in musculoskeletal sicknesses with
growing social concerns from 2000. However, there has been notable decrease in conventional
safety accidents. Kia’s production lines were reorganized to specifically prevent musculoskeletal
sicknesses. Enhancing treatment management, accident prevention, consistent safety
examinations, and diversified effort has resulted in a decrease of 20 cases since 2006.
Industrial Accident Ratio
Classification
2005
2006
Kia Motors
2.03
1.94
1.9
Manufacturing Industry Average
1.16
1.18
(N/A)
Transportation Manufacturing Industry Average
1.62
1.42
(N/A)
01.
02.
Hwaseong Plant’s Industrial Safety and Health Center
Employee’s medical examination appointment site (Online med)
2007
89
In-house Environmental Safety and Health system (i-ESH)
The i-ESH is an organizational system for environmental, safety, health matters covering all of Kia
Motors’ production grounds. The system is not only for its efficiency of data organization, but for
disclosing environment safety related information for training purposes.
Certification of Industrial Safety and Health Management System
To prevent industrial accidents and for a pleasant working environment, Kia Motors operates the
Industrial Safety and Health Management. Sohari plant has acquired the KOSHA 18001
Certification, and Hwaseong plant obtained the OHSAS 18001 Certification as well as the KOSHA
18001 Certification.
i-ESH System
Environmental
Management
Health
Management
Safety
Management
•Criterion
Information
•Waste Management
•Environmental Goals
•Soil Management
•Noxious Chemical
Management
•Environmental
Management
Training
•Emergency
Procedures
•Air Management
•Environment
Inspection
•Water Analysis
•General
Environment
•Partnership
•Criterion Information
•Health Training
•Physical Health
Facilities
•Equipment
Management
•Work Environment
Examination
•Safety Information
•Musculoskeletal
Illness
•Health Information
•Toxic Chemicals
•Criterion Information
•Dangerous
Operations
•Safety Goals
•Partnership
•Facilities
Establishment
•Emergency
Procedures
•Public Safety
Information
•Accident/Industrial
Disasters
+
+
Statistical Data
+
•Common Factor
Management
•Environmental
Management
•Safety Management
•Health Management
Making a “Great Work Place” (GWP)
Kia Motors strives through a variety of programs
for its employees to come in harmony and enjoy a
“Great Work Place”.
Last year, the Art Leum Museum opened art
spaces at the Yangjae-dong headquarters lobbies for Kia’s employees to enjoy the art and for
mental /physical recharge. For employees and their
families, Kia Motors presented education programs
such as “My father is an Art Ph.D.” In November,
Kia held Visions Festival for its employees to provide unified group vision and culture. Employees
participated in group activities and forums that
focus on the company’s group vision and culture of
encouragement for each other’s brighter future.
Employees also enjoyed the Company Brand Day
events where Employees’ families could participate
in enjoyable family programs.
01
02
03
01.
02.
03.
“My father is an art Ph.D,” art education program at Art Leum Museum in company HQ.
Competition event at new Visions Festival held from October to November of 2007.
Finalists of Best Dressers at one of the Visions Festival events
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Employees
Business Partners
Customers
Community
Industrial Safety and Health Education
As stated in the 69th Article of the Collective Agreement, Kia Motors and labor union share the
common interest in maintaining the high priority in the matters of employee’s industrial safety
and health. Law-related matters of Industrial Safety and Health Rules (31st Article) were set forth
by the labor union according to the decisions of the collective agreement. Rigorous specialist
training is being employed to the head of production management and persons in charge of
musculoskeletal illnesses for Industrial Safety and Health Management. In addition, returning
personnel from industrial accident are given rehabilitation training to improve health conditions.
Kia Safety Academy (KSA)
Kia Motors established Kia Safety Academy (KSA) to develop general safety maintenance for any
inadequacies in the work field. KSA’s programs include legal safety, health process, and in-house
inspectors training. In 2007, 1,015 employees received 12 different trainings to facilitate duties in
the health and safety management. With this academy, Kia Motors established the safety culture
and enhanced employees’ productivity.
01
02
Industrial Safety and Health Training
Category
Safety and Health
Participants Training Hours Period (Month)
Production
Sohari
2
1
122,856
10,639
2
1
255,336
5,963
2
1
Sales
3,234
2
1
Technical
1,658
2
1
39,792
General
5,753
2
1
138,072
Sohari
245
24
1
5,880
Hwaseong
700
24
1
16,800
Gwangju
300
24
1
7,200
79
8
1
632
186
8
1
1,488
Maintenance
Hwaseong
Training during
Gwangju
Stated Period
Supervisor
Expertise
Period (Year) Total Training Hours
5,119
143,112
77,616
Industrial Safety and
Sohari
Health Committee
Hwaseong
Member
Gwangju
73
8
1
584
Services Center
40
8
1
320
Administrative Staff
Sohari
46
16
1
736
for Musculoskeletal
Hwaseong
75
16
1
1,200
Illness
Gwangju
42
16
1
672
Services Center
40
16
1
640
Health Promotion
Sohari
63
400
1
25,200
Training
Hwaseong
116
400
1
46,400
51
400
1
20,400
Total Hours
904,936
Annual Training Hours per Person
27.45
Specialized Training
Gwangju
RemarksTotal: 32, 977 Trainees (2007 Standard)
01.
02.
Supervisor Management Safety Training
Cardiopulmonary Resuscitation (CPR) Training at KSA
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Security Management and Training
Security Management System
Kia Motors is working to expand safety measures at a global level to meet the company
standards. Kia applied security procedures with standards guides, constructed security portal
systems, and raised PC management levels. In 2006, Kia Motors acquired the ISO27001
certification through an audit institution, BSI KOREA, obtaining the public’s trust for information
security management. The company is maintaining the certification twice a year through postinspection.
Security Training
Throughout the first and second half of each year, Kia operates collective training for the security
personnel for apt abilities in cases of unknown industry spies, information extrusion, company
security policies, and security management counterplan. Also for all security officers, workshops
are held twice a year. During the first Fridays of every month, the security supervisors offer
guidance training and examinations, which are required for following security management
procedures.
01
02
Special Security Management Training
From 2005, Kia Motors’ directors and managers at headquarters undergo special security sessions
and training. The emphasis of security training is in raising security consciousness towards
preventing industrial data espionage, as well as company security countermeasures for providing
approachable methods to core security affairs. In 2008, there will be collective training for the
whole company for establishing security management values and raising security consciousness.
Enforcement of Business Information Management
Using International security certification (ISO27001) as a basis, evaluation in security
managements are held first and second half of the year. Security management conditions are
evaluated for any indicating issues that surface during inspection processes, and causes are
analyzed to prevent further relapses. Kia’s annual results from information management
evaluations show a steady annual improvement in security levels. Kia strives for excellence, which
is reflected in its results. Through early evaluation results, the company award departments who
achieve top security management and continually making improvements, while making careful
deliberations for less adequate departments.
Annual Results of Information Management Evaluation
Classification
Content
Goal
2005
2006
2007
100 pts
98.2
98.5
98.7
Security Related System
To prevent electronic document hacking, malicious codes, access in identity theft, and other data
abuses, the One Time Password system (OTP) is utilized. Also through Electronic Document and
Records Management (e-DRM) systems, documents and electronic blueprints are being encrypted
to prevent abuses. For protection and data evidence enhancement, data and output records are
preserved for future cases.
01.
02.
International Security Certification (ISO27001) Certificate
International Information Security Management System Ceremony
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Business Partners
Vehicle industry requires technology-intensive and capital-intensive industrial values. Completed
vehicle is like a finished 20,000 piece puzzle. Similarly for composition of one vehicle, multiple
business partners form relationships with vehicle manufacturers for vehicle production,
development, and parts. Throughout the process, all of each partner’s specialty level determines
Direction of the
Win-Win Practice
the quality of the finished vehicle. Vehicle manufacturing company like Kia is held together by
the supply chain of its suppliers and partners who provide timely, crucial parts and technology for
flawlessly orchestrated completion of a vehicle. In this respect, Kia respects its partners by
supporting competitiveness and survival of its partners for a mutual and sustainable growth.
Business Partner Programs for Accompanied Growth
Support for Strengthening Partners’ Competitiveness
Partnership Support _
On January 2007, Kia Motors founded Partnership Support Team with
Foundation of Korea Automotive Part Industry Promotion to strengthen the company culture and
promote global competitiveness with its small-medium business partners. Every year, Partnership
Support Team works with business partners for at least three months providing technical support,
quality directors, exports and management supports as part of the partnership management.
Partnership Support Team is made up of 20 full time officers excelling in each respective
management fields, serving two year terms.
Costs from consultation periods are fully supported by Foundation of Korea Automotive Part
Industry Promotion for Kia’s business partners to heighten partners’ management abilities.
Hyundai-Kia Motors group contributed a total of 3.5 billion won to Foundation of Korea
Automotive Part Industry Promotion in 2007. Partnership Support Team goes beyond providing
quality and technical knowledge by engaging in sustainable strategies with long-term values
placed on performance. In this process, expansive technical knowledge from former executives is
handed down to all partners. From small-medium businesses, Kia Motors received
acknowledgment for its industrial precedent in partnership model.
Execution of the “5 Stars” System _
Since 2002, Kia Motors initiated the “5 Stars Quality”
system for improving partners’ parts quality and strengthening its competitiveness. Kia Motors
operated the system under three criteria: no recalls in the latest year, parts supply rate of at least
“4.5 Stars” rating, and 750 points in quality management systems. Partners that achieve the “5
Stars” can register for the “5 Stars Quality Club.”
Reinforcement
in Partners’ Core
Capability
• Execution of the 5 Stars
System
• Partnership Support
• New Technology
Exhibition and Seminar
Opening
• Guest Engineering
Program
Reinforcement of
Management Stability
• Supply Costs Settlement
• Working towards a
Common Goal
• Funds Supports
• Group Purchases
Strengthening the
Global Correspondence
System
• Joint Overseas Market
Entry
• Global Human Resources
Program
• Building Environmental
Network
Reinforcement of 2nd
Partners Supports
• SQ Mark Certification
System
• Management Innovation
Seminar
• Quality and Technology
Volunteer Services
• Group Purchases
• Occupational Training
Consortium Expansion
93
Companies awarded with “5 Stars” ratings heighten their status through credit rating
agencies with privileges of using “5 Stars” logos. From 2002 to 2008 January, a total of 15
companies were registered to the “5 Stars Quality Club.” Kia awards bids participation for new
vehicle development to those partners who score 50 points out of 100 in social responsibility
section of the “5 Stars” system. (Social responsibility standards consist of company operation’s
level of integrity, transparency, and internal HR policies.)
Partners’ Employees Training _ At Kia Motors, various programs are run to elevate technical
skills and operating competence of business partners’ employees. Every year, 32,000 partners’
employees train with specialists in collective and online setting. Kia also holds training session for
its partners in purchasing techniques to advance partners’ purchase systems.
Tech Day Opening for Partnership R&D _ On November 2007 at the Namyang Research base
(R&D), Kia Motors held its “2 nd Tech Day for Partnership R&D” for the 30 primary partners;
(Powertrain (10 companies), chassis (7 companies), assembly (8 companies), and car body (5
01
02
companies)).
For R&D and strengthening partnership efforts, Kia Motors held the “Partnership Skills Unity
Exhibition,” where Kia Motors gave partners the opportunity to present new R&D technologies.
‘R&D Partnership Seminars’ were also established to settle partners’ grievances and discuss
improvement plans. Kia Motors held the annual ‘R&D Partnership Tech Day’ events to expand the
scope of partners’ competitiveness. These events also offered an equal share of necessary skills as
well as idea exchange to build strong partnership based on open communications. Kia plans to
further expand the partnership program to encourage growth of its partners.
Support for Partners’ Management Stability
Supply Costs Settlement _
Kia Motors is furnishing ready funds to financially aid small-to-
medium businesses with inadequate raw supply expenditures. For larger companies, Kia has
reduced the pay periods from 120 to 60 days. To maintain payment systems, similar operations
will allow second and third partners to receive payments simultaneously.
Financial Support _
To stabilize for business partners, Kia Motors supports raw material
purchases in addition to R&D costs. In 2007, Kia Motors funded 2.4 trillion won in supports and
plans to further expand the support scope.
Partner Production System
Guest Engineering Program
Guest Engineering Program is Kia Motors’ representative partnership extension program. In order to
reduce auto part development periods and costs,
parts designers from partners and engineers from
Kia work together in vehicle development. Based
on monthly average, partnership program are operated in 43 companies with its 242 researchers at
Hyundai-Kia Motors research centers.
Establishing Logistics System (RFID) (1)
What is significant in the win-win practice with its
partners is the closely linked logistics system. In this
01.
02.
(1)
system, Kia Motors uses electronic tags called Radio
Frequency Identification (RIFD), which are applied
to the vehicle parts in the production process for
assembling identification. RFID emits signals that
are picked up by the computer servers. This allows
companies to use their free time to accurately
observe progress via the internet without having to
physically attend to each affair. In addition, company trucks delivering auto parts also carry electronic
tags for comprehending each process of distribution; thereby, serving efficient supply management
and cost reduction purposes.
Management Innovation Training for Partner’s Representatives
Hyundai-Kia Motors Partnership Convention and Seminar
RFID (Radio Frequency Identification) : Through Wireless and IC chips, RFID manages information through a variety of
next-generation object-recognition technologies
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Employees
Business Partners
Customers
Community
Practicing Shared Achievement _
Kia Motors has been practicing Shared Achievement since
1990. Kia Motors utilizes Value Engineering (VE) that reduces cost at no expense of quality of
product or service. With collaborative efforts, imported parts are replaced with domestic parts,
which reduces Kia’s bottom line while nourishing Kia’s partners in win-win strategy.
Group Procurement _
For the material cost reduction of business partners, Kia Motors’
purchasing power was utilized for group procurement, spending 61.8 billion won in 2006 and
67.6 billion won in 2007. Kia Motors is expanding procurement from general resources to
stainless, aluminum ingot, and raw materials.
Strengthening Global Correspondence System
Joint Overseas Market Entry _
Kia Motors is entering the overseas market with its business
partners, focusing on smooth provision of parts and job creations in regional communities. To
strengthen partnership, Kia created supports system for its partners to minimize losses from trial
and error. For partners’ stable settlement in overseas market, Kia Motors provides partners with
employment, business material purchases, and legal consultation. Kia Motors’ current regional
procurement ratio for automotive parts is approximately 80%. Regarding overseas investment
difficulties of small-to-medium businesses, global support system is being utilized as an aid to
overcome this problem for small-to-medium businesses.
Global Human Resources Nurturing Program _
Kia Motors offers various education
programs aiding partners’ executive management and small companies’ employees for acquiring
a variety of specialty knowledge. In 2007, a total of 32,000 partners’ employees were trained
through Kia Motors’ educational program. With partners’ entry into the global market, Kia plans
to further develop training program for its partners to meet this need with expanded scope of
global management and partners’ employee language training.
Reinforcement of Second Partnership Support
Kia Motors is constantly expanding joint efforts with its partners. For automotive part vendors’
quality improvement, Kia Motors is operating quality technology services. Kia Motors provides its
second partners with technology specialists and monthly seminar for intensive training in quality
systems, which receives great praises from business partners. In June of 2007, Kia Motors held 12
Developing Win-Win Competitiveness in-between Partners
At the Kia Motors’ Slovakia plant located in
Zilina, there are 13 business partners (parts
suppliers) including Hyundai Mobis, Sewon
ECS, Donghee Auto Co., Pyung Hwa Auto Parts
Company, and Halla Climate Control Corporation.
To ensure stable development of its partners, Kia
treats each fairly and honestly. Simple shout of
“me too” from any of the partners will set Kia
Motors into action by attending to each partners’
necessary processes and services.
(Mini interview)
Seung-Gil Park, Corporate Director of Sewon ECS
“A variety of business affairs such as incentive
negotiations, memorandum of understanding
(MOU) conclusions, selection of factory sites are
resolved through Kia Motors. Due to Kia Motors, Sewon was able to eliminate unnecessary
processes of trial and error, time waste, and costs;
in order to focus primarily on plant operations.
After 2006 Slovakian governmental transition,
Sewon lost all its governmental contacts and
support during the crucial market entry stage.
Mong-Koo Chung, the chairman of Kia Motors,
and Eui-Sun Chung, president of Kia Motors
directly negotiated with the Slovakia administration to smooth out our market entry without any
negative repercussions.”
95
business briefings focused on cost reduction methods through power of group purchase to its
second partners. To boost second partners’ competitiveness, Kia Motors plans further
engagement with persistent emphasis on joint effort programs.
Procurement
Policy
Settlement of Open and Fair Procurement Systems
Under the principle management ethics, all of Kia Motors’ partner transactions must be open and
fair (Open & Fair policy). For moral establishment in purchase system, published guides are
Acquiring Cost
Competitiveness
• Promoting Partners’
Active Participation
through Proposals
• Corresponding Price
Advancement on Materials
Improving Parts Quality
• Stabilizing Parts Quality
in New Models
• Elevating Partners’
Quality Level
• Improving Parts Quality
on a Global Level
Transparent Purchase
• Promoting Transparent
Transactions
• Settling Business Ethics
Reinforcing Overseas
Plants’ support
• Expanding Value
Advanced Automotive
Trade Zone (VAATZ) in
Overseas Plants
• Supporting Group
Purchases in Five Global
Divisions
provided by the supervising system of the cyber audit offices and HR Ombudsman programs.
Purchase managements undergo purchase training in computerization of purchases through
Value Advanced Automotive Trade Zone (VAATZ) programs, where purchases may be practiced in
an open and fair manner. In 2007, fair transactions examination revealed three cases of
mismanagement that later received visible legal actions and penalties. Currently, three more cases
are undergoing inspection processes. Following inspection results, Kia Motors will acknowledge
any inadequate factors pointed out and reform them for preventative measure. Further, Kia will
perform comprehensive self-examination as a preventative measures to find any potential legal
violations and correct them. Kia Motors puts forth consistent efforts with consistent training and
transparent resolution practice.
Complying with Ethics Charter
Ethics Charter of the purchasing department outlines fair and transparent purchase activities as
well as central values of Kia’s partnerships with domestic and overseas partners. In general, ethics
regulations are specified in factors such as receiving money, soliciting for meals and goods, or
abusing information in business activities. Following principles of Ethics Charter, Kia’s employees
may not receive any gifts or money from business partners over 30,000 won. Also, receiving direct
and indirect compensations from business partners are considered unethical behavior.
Guidelines for Employee’s Ethical Behaviors
Kia Motors’ previous Code of Ethics and Ethical Charter for employees’ ethical behaviors were too
vague for employees to comprehend. To make up for equivocal standards in business activities,
Kia distributed clear guidelines concerning the employee’s ethical behavior, clarifying where
ethical regulations lie at work and daily activities.
Cyber Audit Office
The audit office of Kia Motors runs field audit and cyber audits to operate ethical management
efficiently. The cyber audit office disclosed Kia’ Ethical Charter and Code of Ethics on Kia Motors’
website. It informed business partners and customers of basic ethical management mentality in
the field and practices; facilitating businesses work ethics to be reflected on Kia employees’
behalf. Especially with the foundation of Cyber Call-in Center since April 2004, customers,
companies, employees, and anyone interested in Kia Motors are allowed access via the internet.
This allows anyone to bring consciousness of any unjust and unethical behaviors within the
company. The helpful input provides for effective reflection on issues for system improvements
and Kia’s ethical activities. As a practical and transparent system, persons that report any
unethical activities are informed of the resolving processes and results. In 2007, Kia Motors
received five reports through the internet regarding employees’ unethical behaviors. Kia
investigated and took actions against those employees according to the corporate policies,
contributing to Kia’s business improvement. Kia Motors is striving to consistently prevent relapses
of unethical behaviors through ethical training.
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Employees
Business Partners
Customers
Community
Operating Ombudsman Program for Business Partners
In order to build collaborative relationships between Kia Motors and its business partners, HR
Ombudsman programs are being conducted for partners’ employees. Business partners report
their concerns, suggestions, or report any unethical behaviors of Kia Motors’ employees. With this
program, Kia pursues reciprocal development.
01
Cooperation on Procurement by the VAATZ System
Kia Motors is operating VAATZ to practice transparent and effective purchase systems. Kia Motors
built the Sapturn system(1) within the VAATZ, where business decisions can be achieved by simply
viewing computerized processes, consequently negating most personal interferences. The system
strengthened the transparent transactions at a much higher level and allowed comprehension of
purchases’ scope globally. Kia also conducts on-line bids through the VAATZ system for parts
procurement processes and selecting business partners to practice fair and transparent business
activities.
Establishing Fair Transaction System
Training Employees’ Fair Transaction _
Kia Motors trains employees concerning issues such
as anti-corruption policies linked to Fair Transaction Laws. In 2003, Kia Motors started online
training for all of its employees to better inform transaction laws. In its inception, 4,500
employees began the online training. Currently, Kia Motors is offering the training regularly with
promotion of new candidates and new employees. Employees in purchase and fair transactions
sector also undergo specialized training processes. In procurement and sales departments, duty
training is operated at least twice a year (at least 2 hours per training) with external lecturers in
order to set solid foundation for corruption prevention.
Voluntary Compliance Program for Fair Transaction _
Kia Motors operates a Voluntary
Compliance Program for Fair Transaction to enhance transparent businesses culture and prevent
transaction violations. The program was established in 2002 November. In addition, Kia Motors
established a council for the voluntary fair transactions compliance. Managers appointed by the
Board report employees’ compliance results biquarterly to the Board. Kia Motors offers
employees various training programs for fair business transactions both online and offline. The
Voluntary Compliance Program contributes to reducing losses resulting in violation of fair
transactions.
Anti-corruption Training Program
Transparent Purchase Training
Legal Processes of Fair Transactions for all Employees (in cyber training)
Training content: Transparent purchase training and procurement ethics
Training content: understanding fair transactions legal processes, blocking
compliance
unlawful transaction processes
Training date / hours: January 26 and March 5, 2007 / 1 hour
Training date / hours: 20 hours
Trainees: total 47 members (41 promotion candidates in purchase
2007 trainees: 108 members (new members)
headquarters / 6 of new employees)
01.
(1) The Purchasing Process Computerized by VAATZ System
Sapturn System: Electronic bid system
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Customers
Although a vehicle is a private possession, it is also a social possession. Vehicles, which allow
comfort and reliability, influence not only individuals but society as well. Automotive
manufacturing company is responsible for creating vehicles with maximum comfort and
reliability, while raising the quality of life through the motor lifestyle culture. Kia Motors
understands that with each vehicle comes a responsibility for customer’s life, thus Kia develop
safety features. Kia is making great strides to continually improve customer service.
In 2007, Kia Motors earned high scores in domestic and overseas safety evaluations, taking a
step further in materialization of customer safety. According to the outside research and
evaluation services, Kia Motors achieved first place in Korean Service Quality Index for four
consecutive years, in addition to first place for quality in Call Center Services Index. Kia also strives
to raise the customers’ lifestyle through various cultural and sports events.
Customers Safety: Vehicle Safety
One vital function of vehicles is ensuring safety of the driver, passenger, and pedestrian, because
accidents involving vehicles can be fatal. Kia Motors makes considerable efforts to design a safe
vehicle for its customers. This effort is made through Advanced Safety Vehicles (ASV) and
application of safety systems. Additionally, voluntary recall initiatives are set in place to respond
immediately in case any defect surfaces that may pose threat to the customer’s safety. Kia Motors
runs traffic safety campaigns for its customer and training sessions for accident prevention and
guarantee customer safety.
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Employees
Business Partners
Customers
Community
Advanced Safety Vehicle (ASV)
To provide more than a general safety offered by safety belts and air bags, Kia Motors is
developing intelligent active safety system, Advanced Safety Vehicles (ASV), which will further
enhance safety and reduce the impact of vehicle collision. ASV perceives driving condition on the
road and the driver to readily and actively prevent accidents, reduce collision damage, confirm
collision safety, and minimize damage magnifications. ASV will be connected to the Intelligent
Transport System (ITS), which will bring the same safety features from the ASV to the roadways.
Advanced Safety Vehicle
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15
18
12
05
12
12
12
22
23
16
28
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27
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11
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10
20
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05
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1. Road condition sensor
12. Airbag
22. Fire detection sensor
2. Magnetic sensor
13. Road-to-Vehicle / Vehicle-to-
23. Vehicle speed, acceleration
3. Vehicle distance sensor
4. Forward obstacle sensor
14. Rear view camera
24. Collision detection sensor
5. Blind spot monitoring camera
15. Water repelling wind shield
25. Pedestrian collision injury
6. Drive recorder
16. Seatbelt pretensioner
7. Side obstacle sensor
17. Driver monitoring sensor
26. Electronic control steering
8. Air pressure sensor
18. Headup display
27. Message display system
9. Inside door lock/unlock
19. Steering angle sensor
28. Hands-free system
10. Rear obstacle sensor
20. Electronic control throttle
11. GPS sensor
21. Electronic control brake
Vehicle communication system
sensor
reduction structure
Safety Technology in Mohave model
Vehicle Dynamic Control (VDC)
VDC provides additional eyes and hands to the driver as it assists in detecting potential hazards on the roadway and providing driving
support. VDC uses built-in sensors to detect the driver’s control and its road conditions for any potential dangers (Sideslip and Under/Over
steer), and then it independently controls a break system in each tire and engine output to avoid accidents.
Sensor signals
•Car wheel speed
•Deceleration
•YAW Moment
•Steering Wheel Rotation
•Pedal Response Speed
Insecure Navigation Control
VDC
Rest time awaiting
signal
Active Control
•Under Steer Correction
•Over Steer Correction
•Overturn Danger
•Emergency Brake Function
•Dynamic Brake Control (DBC)
•Hill-start Assist Control (HAC)
Securing Driving Performance
(1) ITS: Intelligent Transport System (ITS) is next generational advanced traffic system to efficiently manage traffic confusions
and safety using telecommunications/electronic technology.
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As a first stage of development, Kia Motors will focus on vehicle control, information
communications, and core systems technology.
Collision Safety
Vehicle Collision Analysis _ Kia Motors uses computerized Vehicle Collision Analysis to assess
safety performance of the vehicle from the designing stages for improving customer safety. Kia
Motors conducts collision analysis for passenger behaviors as well as safety for women and
children. For complete analysis of the vehicle and its passengers, multiple vehicle collision
simulations, and actual vehicle tests are taken. With computerized applications, various Vehicle
Collision Analyses are being widely applied for passengers’ protection.
Actual Vehicle Collision Tests _ In orders to fully maximize collision safety, numerous tests are
run under severe conditions with numerous road circumstances. These diverse multi-tests range
from front, side, back, offset crashes to car-to-car and car-to-pole crashes. With evaluation from
these tests, Kia increases chances of passenger survival and efficiency of protection systems. Kia
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Motors consistently tests under various circumstances to satisfy global standards by conducting
tests utilized by various safety-related institutions.
Safety Acknowledgements
Kia Motors is acknowledged nationwide for producing the safest vehicles. Kia Motors’ top safety
grading was determined through the national safety tests.
Korea _
Vehicle safety evaluation is operated through New Car Assessment Program (NCAP).
2004 Cerato as a 1500cc compact car (driver seat
★5,
Sportage as a medium-sized leisure vehicle (driver seat
passenger seat
★5,
passenger
★4,
★4,
sides
sides
★4),
★5)
and 2005
received the
highest evaluations in vehicle safety. Especially in 2007, Lotze as a 2000cc compact car acquired
five stars on all safety tests (driver seat ★5, passenger ★5, sides ★5) and established itself as one of
the nation’s safest vehicles.
Oversees _
In 2007 global market, cee’d received the highest safety rating of five stars in
European New Car Assessment Program. In New Car Assessment Program (NCAP) of National
Highway Traffic Safety Administration (NHTSA), Lotze (Optima), Sportage, Sorento, and Grand
Carnival (Sedona) received a five star rating in front and side impact tests, thus receiving
acknowledgement as safest vehicles. In NCAP of Insurance Institute of Highway Safety (IIHS),
Grand Carnival (Sedona) was also acknowledged as ‘Top Safety Pick’ on all front, sides, rear, and
collision impact test.
Korea and America Safety Collision Evaluation
Model
Domestic
NHTSA
Front
Side
Front
Side
Cerato
5★/ 4★
4★
5★/5★
4★/4★
Lotze
5★/ 5★
5★
5★/5★
5★/5★
Carens (Rondo)
5★/ 4★ (*)
5★(*)
5★/5★
5★/4★
Sportage
5★/ 4★
5★
5★/5★
5★/5★
Sorento
5★/ 5★(*)
5★(*)
5★/5★
5★/5★
Grand Carnival (Sedona)
5★/ 4★(*)
5★(*)
5★/5★
5★/5★
(*)Kia Motors’ actual test results
01.
02.
Front Impact Test
Airbag Expansion
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Employees
Business Partners
Customers
Community
Customer Satisfaction
For Customer’s Comfortable and Pleasant Experience Customer satisfaction is an essential value of
Kia Motors for sustaining its business and achieving its long-term goals. In customers’
relationships, Kia Motors fosters lasting impressions by contributing to customer values. In 2007,
Kia Motors aggressively addressed customer complaints and promoted proactive services for
employees’ Customer Satisfaction (CS) capabilities.
Strengthening Employees’ Capability for CS
Employees’ capability for CS _ To assimilate CS culture throughout the company, Kia Motors
is providing employees with a variety of CS training programs through CS training classes every
month. At Kia’s headquarter, the company trains employees with business manners, a system for
employees’ mentality at work, and methods to raise employee morale. For employees in customer
service sector, Kia focuses on e-customer services, active organization creation, active response
and services with CS mentality.
Activities for Customer Service Improvement _
As a necessary inspection for customer
service standard compliance, mystery shoppers visited Kia’s auto sales and repair shops. While
pretending to be customers, mystery shoppers carried out evaluations of Kia’s customer services
to identify inadequacies for further improvement.
Internal Customers Satisfaction Services _
To motivate Kia employees with CS formation
and to achieve top Customer satisfaction, Kia selects “Customer Applauds Employee” and “Our
Proud Kia Employee” every month. Selected employees are awarded with CS “applaud
Voice of Customer (VOC) System
• Collecting customers’ opinions and surveying customer’s satisfaction level after 2 months from the vehicle
purchase date (monthly)
> Survey on 203,719 of Kia Motors’ vehicle buyers in 2007
> Total of 35,612 customers responded to the survey
> Feedback of each Division’s VOC analysis results (monthly)
> Second monitoring of customer complaints on product quality and A/S
Satisfaction Level to Resolve Complaints
• 6 month delivery period, 1~3 year delivery period (monthly)
> Customer surveys after 6 month period: total of 59,744 ,Customer surveys during 1~3 year period: total of 116,013
• Customer satisfaction rating in 6 month period: 82.6 (1.8 rise from 2006)
> 1~3 years delivery service satisfaction rating: 75.7 (3.6 rise from 2007)
VOC Activities
• Training all plants (Sohari, Hwaseong, and Gwangju) employees based on their positions
> Trainees: executives, managers, and field workers
> Content: major customer complaints
At Kia Motors’ Sohari, Hwaseong, and Gwangju plant, Kia is spreading VOC activities in its employee training
to reinforcing values of production in the workplace. Kia instituted quality consciousness in its employees with
understanding that even the small matters in production can affect customers and the company. With these efforts, Kia
and Kia’s employees produce quality vehicles appreciated by the customers.
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acknowledgements” and showcased in each department for individual accomplishments.
Employee’s customer service levels are evaluated monthly to maintain excellent customer
satisfaction level.
Customer Relationship
Various Customer Services Programs _ Kia Motors is offering a vast array of customer service
programs with the aim of preventing customers’ inconvenience to maintain strong relationship
with its customers. These programs include VOC surveys, six-month monitoring calls for sold
vehicles, and “Customer Love Happy Calls.” These various program ranges from the new autodelivery phase to the auto scrapping phase. Kia Motors also sends out its auto magazines and
e-mails with beneficial information to its customers.
Auto Q Service _ With improvement of previous Q services, Kia Motors is now operating “Auto
Q Services” membership program to its customers with high quality services for buying brand new
vehicles, maintaining vehicles, and various motor convenience. As an industry’s first auto service,
Auto Q Service is designed to maximize “Customer Lifetime Value” and provide Q Service
members with regular auto check-ups and repairs based on Kia’s standard customer service
manual. Through the Lifetime Customer Services program, Kia’s customers can acquire points on
the Kia Motors’ “Q membership” card for vehicle maintenance services.
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Before Service _
Unlike the A/S that are performed after malfunction, Kia Motors introduced
the Before Service (BS) with focus on service management, inspection, and malfunction
prevention. In 2007, Kia substantially raised its customer satisfaction with its BS. In figures, 11,820
technicians made 5,274 visits to customers, inspecting 142,125 vehicles for proper management.
Through “Q Members” website, Kia’s customers may register and schedule services.
CS Training Support for Business Partners _
For Kia Motors’ business partners, Kia
established the CS Training Support to strengthen mutual relations and better the company’s
image. In 2007, 3,800 trainees from express bus and taxi businesses, customs, and district offices
received CS training, which received praises from participating partners.
Awarded Best Service Satisfaction
From April 2006, the 5th Service Satisfaction Awards for the expansion of consumers’ satisfaction
awarded Kia Motors for best follow-up services. With a total of 329 companies competing in service
satisfaction awards in 2007, Kia Motors was awarded for its diligent efforts of customer care for during
and after purchase of vehicles.
01. 02. Kia Motors’ Distinguished Customer Service, "Auto Q Service"
03.
Kia Motors’ Advance Service, “Before Service” Providing Customers with Free On-site Inspection and Repair Services
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Employees
Business Partners
Customers
Community
Customer Consultation Center
• Offering a variety of communication channels
> Phone consultation: 080-200-2000
> VVIP exclusive consultation: 080-760-2000
> Cyber Counseling: E-mail consultation (ERMS), internet chat consultation (ITI)
(http://www.kia.co.kr, http://www.qmembers.co.kr)
• "Customer Satisfaction Solutions"enabling helpful cooperation with Customer service department, giving prompt
feedback to customer complaints (suggestions) and undergoing management improvements
• Maintaining customers relationship through “Customer Love Happy Call” Program
> Furnishing variety of data each year
Customer Satisfaction Index
1st place for four consecutive years in Korea Standard-Service Quality Index (KS-SQI) _
Managed by the Korean Standards Association, Korean Standard-Service Quality Index (KS-SQI)
selected Kia Motors for the best service for four consecutive awards since 2002, showcasing a
steady rise of quality.
The Korea Standard-Service Quality Index notes how real customers are treated by the service
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02
benefit, level of customer satisfaction, creative services, promise keeping, response to customers,
accessibility, reliability, and the service environment. Kia Motors has received a superior
evaluation based on all 8 qualifications.
1st Place in 2007 Korean Industry Call Center Standard-Service Quality _
Kia Motors’
customer service center receive suggestions from customers, promptly resolving customer
complaints, managing customers, and meeting customer’s demands. At 2007’s “Call Center’s
Korean Standard-Service Quality Index” held by the Korea Management Association, Kia Motors
was awarded 1st Place (95 points) keeping its streak alive since 2005. Kia Motors not only received
best results in the vehicle sector, but also topped the national rating for its consistent amiable
efforts in customer service in the Call Center Sector that envelops all of Korea’s businesses.
Customer Information Protection
There were no cases involving any violation of customers’ personal information in 2007. To ensure
protection of customer information, all employees in customer service center sign the
“Nondisclosure agreement”. Kia Motors informs customers of their information rights through
“Agreement of customers’ personal information use” when consulting with Kia’s customer
support.
Korea Standard-Service Quality Index Evaluation Results
Kia Motors
A
Call Center Korean Standard-Service Quality Index
Evaluation Results 2007
B
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95
75
94
71.5
70
65.2
65
62.7
60
55
61.3
94
72.2
94
93
68.8
93
92
66.2
64.3
91
62.2
91
90
58.0
2004
01.
02.
70.5
69.3
95
2005
2006
2007
1st Place in Korea Standard-Service Quality Index Award
1st Place in Call Center Korean Standard-Service Quality Index Award
Kia Motors
A
B
C
D
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Customer Marketing
Advertising _
For marketing, Kia Motors runs variety of events and communications activities.
No marketing events infringe on customer privacy, lay double standards, or influence children. All
marketing communications meet the ethical and cultural standards. Opirus’ newspaper
advertisement “Snowman” was a huge public hit and later awarded The Best Advertisement by
the Newspaper Advertisement Nominee from 2005 to 2007. The popularized Opirus TV
commercial “You are right” (featuring In-Pyu Cha and Ee-Rah Shin) received the best TVCF award
(Korea’s commercial award) in the broadcast category in the 4th Advertising Ethics Award of the
Republic of Korea. In overseas market communications activities, all commercial mediums (TV/
Newspapers/Magazines/Internet, etc.) and advertisements are executed through processes of preauditing and accounting to meet native customers’ taste and standards.
Customer Events _
Kia Motors is offering more chances for customers to experience its brand
through numerous yet diverse cultural offers. Kia strives to become a lively youthful company that
appeals to wider range of customers. In 2007, Kia Motors offered the holiday homecoming rides
assistance (New Years Day/the harvest moon festival), Grand Carnival airport limousine service to
provide cozy rides for tourists, Lotze driving school and Cerato beauty driving school to promote
safer driving. To expand on the customers’ engagement of cultural affairs, Kia Motors carries out
multiple cultural marketing, such as sponsoring the Pusan International Film Festival and various
other cultural events featuring movies, performances, and concerts. The Summer Auto Camp Zone
invites customers every summer vacation to rest and enjoy various fun filled activities. In 2007, it
celebrated its 23rd anniversary. Kia opened “Fun Kia,” online UCC website, to reach youthful
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03
customers in their 20’s. Kia also opened “Kia-Buzz,” global online business blog, to communicate
with customers from abroad.
Kia Motors America’s website (www.Kia.com) was evaluated by J.D. Power
Kia Motors America’s website (www.Kia.com) was
evaluated by J.D. Power and Associates as the best
website, and it offers prompt and accurate information for consumers. J.D. Power and Associates
rated the website as “2007’s most useful automobile manufacturer site” with a score of 868 out of
1,000. The website was acknowledged amongst 37
other automobile manufacturer websites. Kia also
placed first in 2003 and 2005 to make it its third
01.
02.
03.
first place placement. “The most useful automobile
manufacturer website” recognition was a result
of comprehensive evaluation based on responses
from 11,280 consumers who planned on purchasing vehicles within two years. These customers had
graded all 37 automobile manufacturer sites in
terms of information/content, speed, user friendliness, and appearance.
Consumers' Selection of Good Advertisement Awarding Opirus Advertisement, “Snowman”
At One of the Customer Events Opened Lotze Mystery Event
Exclusive UCC Site 'Fun Kia' for 20’s
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Community
Aside from financial contributions to the community as one of the corporate social responsibility,
Kia puts various efforts into providing vehicles with maximum comfort and stability. Especially in
regards to traffic convenience for people with disability, Kia Motors established the “Easy Move”
Campaign as well as “Safe Move” Campaigns for establishment and promotion of safe traffic
cultures. Also, active voluntary participations from employees have allowed voluntary activities to
expand into three major focuses. By investing in public infrastructure and various social
contribution activities, Kia Motors is continuously making efforts to create a better community.
Traffic Convenience for People
with Disability (Easy Move)
• Traffic Convenience Promotions
Support for People with Disability
Traffic
Convenience for
People with
Disability
(Easy Move)
Representative
Businesses
of Affiliates
Social
Engagement
System
Promoting Safe Traffic Culture
(Safe Move)
• Accident Prevention Education
• Accident Prevention Campaign
• Supporting Traffic Accident
Victims
Promoting
Traffic Safety
(Safe Move)
+
Volunteer
Group
Global Community Engagement
• Global Relief Activities- Focus
• Foreign Workers Support
Representative Company of
Affiliates
• Social Welfare
• Young Generation Support
• Human Resources
• Environmental Preservation
• Local Community Development
+
Global
Community
Engagement
Volunteer Group
• Group Social Engagement
• Social Engagement Campaign
• Volunteers of Affiliated
Companies
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Kia Motors made an establishment to sustain communities and allow harmonious
communications. At our domestic and overseas facilities, our former establishment was removed
for the construction of new facilities. Through mutual communications with local communities,
Kia is meticulously examining various regional and societal influences as well as establishing
security alarm systems. From a viewpoint of government relations regarding automotive
manufacturing industries, there must be a thorough inspection of the department prior to
community policy establishment and amendments. Kia Motors is establishing policy-making
through partnership amongst similar industries.
Social Engagement Philosophy and System
After introducing our management philosophy slogan, “We usher human happiness through our
vehicles” and 2005’s social slogan, “Moving together with the World,” Kia set new boundaries as,
“a company leading in vehicle culture through eco-friendly economic activities and active social
responsibility, in pursuit of human happiness and a sustainable society.”
Philosophy: The pursuit of human happiness through vehicles
Mission Statement: “As a leading automotive group, we are committed to our goals of a
sustainable society and human happiness through eco-friendly business operations and
achieving societal responsibilities”.
Core Values in Social Engagement
• We strive in eco-friendly business practices and environmental preservation.
• We act to fulfill social responsibilities through corporate citizenship.
• We act on partnerships with civil society for building a sustainable society.
• We act on social values upholding human dignity and happiness.
• We act on social needs timely and globally.
Mid- and Long-term Plan of Social Engagement
Settlement (2005-2006)
Extending volunteer activities
Dissemination (2007-2008)
Building global community care system
Lead (2009-2010)
Taking lead of Spreading community care models through society
Social Engagement Organization Chart
Top management
Leader of Social Engagement Group
Group Council for Social Engagement
Head of Planning and Coordination Office
(The director of a bureau: Leader of Social
Culture Team)
President of Hyundai Motors
President of Kia Motors
President of affiliated companies
Hyundai Motors
Kia Motors
Social Engagement Council of affiliated
Officer of Hyundai Motors' Social Engagement
Officer of Kia Motors’ Social Engagement
companies
Hyundai Motors Social Engagement Council
Kia Motors Social Engagement Council
Officer of Kia Motors’ Social Engagement
(Coordinator of each region)
(Coordinator of each region)
Management Support System of affiliated
companies
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Employees
Business Partners
Customers
Community
Easy Move Campaign
Looking to people less fortunate than us is to understand those we share lives with, imparting us
in our care for a sustainable world. As seniors or disabled people need medical equipments for
support, general vehicles are required to special implementation applied to vehicles. Republic of
Korea falls under UN standards of the aging society (advanced age population is 7%). Looking at
current increasing trends, the aged society (14%) would be come in the year 2020 and the postaged society (above 20%). With the trends, Kia Motors continues the persisting development of
Easy Move vehicles to facilitate transportation processes for disabled and disadvantaged drivers.
In September of 2006, Kia Motors introduced various extensions of vehicle properties in Easy
Move models such as the Lotze and Carnival’s rear wheelchair slope, steering wheel lifter seat,
and wheelchair crane. Kia is undergoing various processes of R&D for adding extensions to more
model varieties.
To furnish transportation for disabled and disadvantaged people in a manner of establishing
societal sympathy, Kia Motors actively runs Easy Move campaigns. Kia’s special concerns of traffic
life for the disabled and disadvantaged were characterized by various support programs.
Disability Support Service programs provide various aids such as brails support and prosthetic
limbs. Promoting locomotory activities for people with disabilities is one of Kia’s central goals for
community engagement. Kia Motors will expand the range of locomotive support programs for
disabled and disadvantaged persons, through continual R&D and cooperative aid from related
organizations.
Status of Easy Move Activities
• Korean Differently Abled Federation , Community Chest of Korea: Reinforcement of accessibility to facilities
(Automatic door installation, slope supplement, handrail installation, and expansion of exit doors’ operating radius)
• Community Chest of Korea, Federation of Korean Industries: construction of integrated exercise facilities for
the disabled
• Community Chest of Korea: Prosthetic limbs support (176 amputees and physically disabled persons with lower
brackets of income)
• Community Chest of Korea, 4 regional integrated welfare centers: Specialty playroom establishment called,
“Kids’ Floor” for children with disabilities
Safe Move Campaign
Majority of traffic accidents come from security mishaps that can be prevented simply by a
heightened surrounding awareness by drivers and pedestrians. As a vehicle production and sales
company, Kia Motors leverages responsible conscientiousness in actual traffic affairs with,
“Prevention Training, Field Prevention, and Service Support” programs to promote Traffic safety
culture.
Especially for advanced communities concerning children’s safety and growth, government
and associated organizations are establishing and promoting safety school zones (children’s safe
district) through campaigns. According to 2007 National Police Agency publications, consistent
school zone campaigns aided in the decrease of children’s death from traffic accidents by 57 % in
the last five years, precisely 468 children’s deaths in 2002 to 202 deaths in 2007. However, the
number of deaths still places a high rank for OECD members. Kia Motors plans further anti-traffic
accident campaigns to eliminate traffic disasters of children; also as post-support to traffic
accident victims.
01.
02.
Lotze Easy Move Model
Operating “School Zone Keeper Campaign” as Part of Safe Move Campaigns
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02
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Safe Move Activities
Activities
Details
Children’s Traffic Safety Campaign
• Safe Traffic Musical, “No No Story”
• Traffic Safety Content Disclosure
• National Tour Children’s Traffic Safety Education
• Broadcast Campaign
• Traffic Safety Mini Exposition
• Traffic Safety Classes for Employees
3 Clover Hunt
• Fulfilling Wishes for a Child Victim in a Traffic Accident
Keeping a Safety School Zone Campaign
Operation Year Since: 2005 ~ Current
Activities: For preventing traffic accidents in School Zones (children protection zones), kick off campaigns taking
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circular checks of school zones near business districts, establishing safe environments for children
Partners Organization: National Safety Association
Employees Volunteers Activities
Kia Motors’ employees are putting forth efforts to better a society that is shared, through active
contributions to neglected neighborhoods; conforming to Kia Motors’ purpose through
participation and lively support. With Hyundai-Kia Motors Group composed of volunteer
employees, blood drive campaigns are held each year alongside social engagement campaigns at
the year’s end. In November 2005, specialized disasters relief corpsman and community volunteers
unified to restore its community of flood damaged regions.
In addition, Kia Motors has engaged in community activities, running community activity
campaigns from participation of employees’ families since 2007. For each affiliated company,
volunteer activities are being held not as a one-time event, but as a continual event through
coagulation of 362 volunteer sectors from 18 companies. Monthly or by a cycle of every other
week, the volunteers are forming connections with its community welfare facilities. The
companies are systematically unfolding various activities such as social welfare, the next
generation support, human resources, environmental conservation, and regional community
developments.
Investment of Infrastructure for Public Benefit
Kia Motors considers livelihood of domestic and overseas community members while constructing
infrastructures. As a link to Kia’s Easy Move Campaign, sports centers have been erected for the
disabled and regional residents within the vicinity of its production plants. For overseas
community engagement, Kia Motors constructed educational facilities for lower class members in
India with social welfare organizations.
Sports Center Operation
Hwaseong and Sohari plant Sports Centers opened integrated cultural spaces for all Kia Motor’s
employees, their families, and regional residents; alongside Shuttle bus operations for
comfortable access. Kia Motors operates programs for every center for quality livelihood of
regional residents and promoting sports culture. Also, Gwangju plants have allowed residents
access to swimming facilities, and headquarter in Seoul has opened health centers and swimming
facilities with Art Leum’s art exhibition space for residents.
01.
02.
Nationwide Tour of Traffic Safety Schools for Children
Employees' Blood Donation Campaign
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Employees
Business Partners
Customers
Community
Reinforcement of Accessibility to Facilities for the Disabled
Hyundai-Kia Motors Group contributed 5 hundred million won alongside Community Chest of
Korea and Korea Differently Abled Federation (KODAF) for 84 organizations established
nationwide for the people with disabilities. The contribution supported an arrangement of
impact absorption floors with elasticity and slippery prevention floors. Before the arrangement,
many people with disabilities were limited to exercise due to general equipments; however
enhanced facilities have allowed easy access for health maintenance and remedial exercises.
Indoor Playgrounds Support for Children with Disabilities
Hyundai-Kia Motors Group offered 500 million won with Community Chest of Korea and 4
regional welfare centers in contributions to support children’s specialized play rooms “Kids’
Floor”. The meaning of “Kids’ Floor” conveys children’s space that is provided for running around
playfully while being safety conscious (Floor space). Through specialized educators, obesity
prevention clinic, family education, and various educational programs have been established for
children with disabilities. Kia’s efforts aid children with disabilities to gain independence and
eventually lead confident and healthy lives in their own communities.
Educational Facilities Support for India Lower Class
At northern part of India, in Dhaneshari region where there are untouchable villages, HyundaiKia Motors Group constructed dormitories as extensions of an old building at the Sujata Academy
Facilities, which is an educational institute for neglected regions. Amidst the India’s identity caste
system, the class occupies 15% of India’s population. People who belong to that class face severe
discrimination their whole lives. Currently, Indian government prohibits discrimination, however
the society’s immensely potent caste system remains unavoidable; the outcast live amongst social
discrimination and complete poverty. Currently Hyundai-Kia Motors Group actively pursues
contributions for the social dream of the alienated class. Together with Community Chest of
Korea and Korea Join Together Society (JTS), 200 million won were contributed in the last two
years, in support of constructing a four-compartment, three-story high boarding house extending
off of an old building, measuring 1,785; Kia also supports the 1,000 people’s uniforms, bags, and
shoes in its donations.
Social Engagement by Issues
Social Welfare and Environmental Conservation
Every year, Kia seeks to contribute with various activities to neglected neighbors. In 2007, Kia
Motors kicked off three campaigns with Ministry of Information and Communication, and mobile
communication companies; the Give Phone Campaign, Lotze soccer tournament and lunch money
campaign for fund raising. To raise environmental concerns and promote clearing and
maintaining the environment, Kia Motors’ employees actively participated in “Love Green
Mountain” campaign for mountain climbers that pursue nationally famous landscapes. The Lotze
“King of fuel efficiency” contest for corporate taxi was held to promote energy saving as well as
to have a just traffic culture; In addition, Kia Motors held the Sorento national environmental
explorations for swamps at the demilitarized zones.
Growing Generation Support
Every year, Kia Motors offers chances for the youth who do not lose hold of their dreams amidst
their difficult environment in order to give hope and a self-challenging mentality. The
01.
02.
Disabled Children's Playground "Kid's Floor" Establishment Support
Offering Donation for Compassion Korea
01
02
109
opportunity is given to the Lotze Youth expeditionary team for teenagers and college students
dreaming of being next generation leaders. With such efforts, Kia supports potential global
leaders, raising quality of the youth through global work camps.
During May in 2007, Kia Motors contributed Compassion Korea for releasing children from
poverty with 30 million won. Out of poverty stricken countries for which Compassion Korea will
promote, one child is connected for monthly support of 35,000 won until the child finishes high
school education. To strengthen the release campaign, “having one child”, 66 Kia’s employees
joined the campaign and connected to 72 children.
Cultural Aspect
On March 2007, Hyundai-Kia Motors group opened “Yangjae Art Leum” art exhibitions space at
Yangjae-dong headquarters with work of various themes. To celebrate the space, famous
contemporary artists, Chang-Yul Kim, Sung-Tae Park, Yong-Duk Lee were first given private
viewing; operating two to three month periods of planning new exhibitions.
01
02
A Letter from Indonesia
To. Hyung-Bae Yoon
Hello, how are you? I am doing quite well. I am
the eldest daughter of my family and am currently
living with my grandfather, grandmother, mother,
father, and younger sister. I wanted to thank you
for being my sponsor. Every Sunday I diligently
attend a nearby church and I am grateful for your
help. I will pray that all things will go well with you
and your family I will stay a good kid as well. Again
thank you.
Oza from Indonesia
Oza is an eight year old girl whom I met through
Compassions activities. I wanted to make provide
a sister to seven month boy, however upon seeing
Oza’s hanging picture from Love’s Fruit, and especially her large round eyes, I decided I had to immediately take support of this child. As I received a
short, but a thoughtful letter, I once again thought
to myself what I could do to help this child. I am
thankful that such a small help could be of great
hope, but I should too hurry with my reply letter.
Domestic Communications Team: Manager HyungBae Yoon
Academic-industrial Cooperation Program for Human Resources
To expand on the development of human resources
and educational opportunities for students, Kia
Motors has joined with colleges for Academicindustrial cooperation alongside technology
teaching supports and specialist seminars. Since
1985, Kia has financially supported teachers who
taught 4,200 students newest skills in technology.
Every year, Kia Motors offers 200 test vehicles and
engines to education organizations nation-wide
for testing transmissions and materials for training. From 2001, the annual “College Cooperative
System Technology Competition” gives opportunity
and the disclosure for students to test theories into
literal application practices.
Future Automotive Technology Competition
In 1996, the Future Automotive Technology competition was opened to domestic college students
to reveal their creativity and a chance of exhibiting
execution of their ideas. In 2007, Kia created a new
approach for preexisting real productions, expanding the scope for participants, allowing ideas to
01.
02.
be executed in the medium video or simulation.
Throughout the competition, Kia motors supported
20 work productions, alongside an announcements
ceremony awarding scholarships of 100 million
won.
Local Citizens' Ordinary Access of Art Exhibitions Space "Yangjae Art Leum"
Operating the "Future Car Technology Exhibitions" for College Students to Display Their Ideas
110
78
79
92
97
104
111
Employees
Business Partners
Customers
Community
Global Community Engagement
Kia Motors is expanding marketing and production networking worldwide. Kia Motors is taking
Social contribution activities, raising community caring standards to a global level from Europe,
Central and South America, Canada, Australia, New Zealand, Asia and Middle East regions. Kia
Motors and overseas natives are together reaching materialization for particular necessities of the
communities.
Europe
With focus on sales subsidiaries, Kia Motors is making efforts to contributing globally to
numerous regional communities in Germany, London, Slovakia, Czech, Austria, Hungary, and
central Europe. In Germany, 7 euros from each vehicle sales are endowed as contributions to
regional communities. Kia Motors continues its support in UNICEF and child cancer research
centers, solar energy developments, and International Fund for Animal Welfare (IFAW). Kia is also
supporting children for safe ways to school, in London, through sponsorship and vehicle design
competitions; alongside vehicle sales support for workers struggling financially and endowments
support women’s cancer research centers. In middle regions of Europe, Kia Motors is operating
various cultural activities, with participations in environmental improvement programs to support
lower class members of society.
Central and South America, and Canada
Kia Motors continues to expand societal contributions activities in the Central and South
American regions in nations of Chile, Atlanta, Panama, Peru, El Salvador, Paraguay, Ecuador,
Columbia, Nicaragua, and Haiti. In the poverty stricken nations’ poor working class, Kia is focusing
on activities with UNICEF, Red Cross and international organizations to develop and expand
support programs for the poor. In Canada, Kia’s vehicles are contributed for use in training for
technical schools in its communities other than donating funds for child patients’ care.
Australia and New Zealand
In Australia, Kia Motors focuses on expanding traffic safety culture with programs for younger
drivers’ safe driving and fundamental training. With drivers’ license requirement age of 15 years,
teenagers’ reckless driving still continues to be a dominant social issue in New Zealand. Kia’s
training programs focus on operating safety training and driving school supports for teenage
drivers.
Asia and Middle East
With a sharp increase in vehicle accidents in Malaysia, regional community’s issues of safety traffic
culture are prevailing. Concerning this, Kia Motors is kicking off campaigns for traffic safety. Kia is
also offering support scholarships for children who are unable to get any education due to
economic crises in most regions of Philippines and Vietnam. Kia Motors is also supporting
residents in poverty stricken Middle East regions.
01.
02.
Central and South America Regions' Car Seat Support for Infants
Safe Drive Training Aimed at Young Drivers In Australia
01
02
111
Special Story
Communicating with Stakeholders
Global Blog (Kia-BUZZ)
Kia-BUZZ opened in September 2007, to bring awareness to Kia Motors of and to expand
communications with overseas stakeholders. For domestic companies, this is the latest approach
to global networking. “‘Kia-BUZZ (www.kia-buzz.com)” is a communications base that surpasses
national communication boundaries for stakeholders worldwide.
01
‘Kia-BUZZ’ consists of eight categories of Business, Communications, Design, FYI, Kia Vehicles,
Motor Shows & Events, R&D, and Social Responsibility. During the first four months in opening,
international users from 123 nations accessed 7,101(28,403 total page views) times on monthly
average, with approximately 240 new subscribers. By end of December of 2007, there were 250
registered suggestion comments. Aside from direct registration of the website, various tracers
such as track pack/link/citation are popularizing, allowing facilitated methods to collecting
suggestions from stakeholders. President Eui-Sun Chung, Vice President Peter Schreyer,
management, as well as its employees are participating in posting to reveal new vehicle design
and teaser images. The posts include publicizing skill abilities, corresponding to false information
or reports, and introducing marketing strategies are conveniently categorized, effectively
expanding direct communications with stakeholders.
Environmental
Information on
Homepage
The Resources Circulating
Law
Toxic Chemicals Content
Recycling Information
+
Supplementary
Environmental
Information
Eco-Friendly Level of
Products
LCA Results
Fuel Rate (Volume of CO2
Emissions)
Gas Emissions
Noise, etc.
Disclosure on Homepage for Environmental Information
In order to have fluid communications with stakeholders and reliance of transparent
information, Kia Motors’ website will disclosed environmental information on June 2008. Kia
Motors will adhere to Resources Circulation Law that requires the disclosure of information
regarding re-evaluation of hazardous materials and recycling-related information. Kia is also
consistently improving environmental assessment results for new vehicles. The results will be
shared with Kia’s stakeholders for active environmental communications.
Environmental Impact Overview
Category
Environmental Impact
Global Warming
Photochemical
Acidification
Resources Drain
Eutrophication
(ton CO2 eq.)
Smog
(kg SO2 eq.)
(year -1)
(kg PO4 3- eq.)
17.8
(kg ethene eq.)
Existing Models
54.5
52.1
135.9
409.2
Mohave
53.2
51.6
131.8
401.9
17.0
2.4% <
0.9% <
3.1% <
1.8% <
5.1% <
Results
Overview of the Discharged Pollutants
Category
Discharged Pollutants(kg)
CO2
NOx
SOx
PM
Existing Models
50,400
124
64.4
Mohave
49,200
118
60.7
32.7
2.4% <
4.8% <
5.8% <
9.6% <
Results
36.2
* From the assessment of environmental impact, pollutants reduced at 1-5% / hazardous material reduction ratio:
90% of total environmental impact generated from the process of use / High Fuel Efficiency (3.7% >) in process of
use and gas emission reduction resulted in pollutant reduction.
* Due to the increase of total vehicle weight (BL: 2009kg > Mohave: 2152kg) and use of light weight materials
(Al and Cu), discharged pollutants was increased on producing and repairing phases.
01.
Kia-Buzz Blog Screen
112
Third Party's Assurance
Statement
To the Management of Kia Motors Sustainability Report 2008:
The Institute for Industrial Policy Studies1 (The Auditor) was engaged by Kia Motors to review information specified in its 2008
Sustainability Management Report (The Report) to provide independent third-party assurance on its contents. Kia Motors is responsible
for the collection and presentation of all information within The Report as well as the maintenance of the underlying data collection
system and internal controls. The key objective of our review is to provide independent assurance that all statements and data cited in
The Report are free of material misstatement or bias and that the data collection systems used are robust. On the basis of the above,
The Auditor presents the following third-party statement of assurance.
Context and Scope
In its 2008 Sustainability Management Report, Kia Motors describes efforts and progress made toward sustainability management as
well as its plans for the future. The Auditor’s review examined the following.
• Reasonable assurance on whether: the financial data specified under “Economic Value” is properly derived from
Kia Motors’ audited Annual Reports for 2007
• Limited assurance on whether: the data specified under “Intro”, “Environmental Value”, “Social Value”,
and “Outro” of The Report are stated adequately and in full and are free of material misstatement or bias.
*
Reasonable assurance constitutes a higher level of assurance than limited.
Independence
The Auditor was not involved in the preparation of any part of The Report, and with the exception of this work has no other affiliation
with Kia Motors that might compromise our independence or autonomy or place The Auditor under Kia Motors’ influence, therefore
ruling out any possible conflicts of interest. The Auditor has no relationship with Kia Motors regarding any of its for-profit operations
and activities.
Criteria
(1) The AA1000 Assurance Standard’s (AA1000 AS)* three core principles of Materiality, Completeness and Responsiveness; and
(2) The Global Reporting Initiative’s (GRI) G3 Sustainability Reporting Guidelines Version 3.0**.
(3) The BEST Guidelines (BEST Sustainability Reporting Guidelines)** for sustainability management.
*
AA1000 AS is an assurance standard for social and sustainable reporting developed by the U.K.-based Institute of Social and Ethical AccountAbility in November
1999. A nonprofit organization that promotes corporate social responsibility, business ethics and responsible business practices, AccountAbility aims to improve
the quality of social and ethical accounting, auditing and reporting through the AA1000 AS.
** The Global Reporting Initiative (GRI)’s Sustainability Reporting Guideline was jointly convened by the Coalition for Environmentally Responsible Economies
(CERES) and UNEP in 1997. The newly revised G3 version was launched in October 2006.
*** The BEST Guideline (BEST Sustainability Reporting Guideline) was jointly developed by the Ministry of Knowledge Economy(MKE), the Korea Chamber of
Commerce and Industry (KCCI), and the Institute for Industrial Policy Studies (IPS) and provides for five levels of reporting rigor (Level 1 ~ 5).
Work Undertaken and Scope
The Auditor reviewed the Materiality, Completeness, and Responsiveness of The Report through the process outlined below:
• a review of media reports relating to Kia Motors
• a review of information contained in The Report as well as the underlying data collection system
(validation of internal sustainability-related organizations, systems, and activities)
• data sampling and assessment of high-risk areas to support intensive review of key statements in The Report, internal policies,
documentation, and information system
• interviews with managers and staff in charge of sustainability management and reporting, as well as persons responsible for
The Report’s source information
• on-site workplace reviews
(1) The Institute for Industrial Policy Studies (IPS)
Established in 1993, the Institute for Industrial Policy Studies has accumulated broad expertise in the area of sustainability
management since 2002. “The Auditor” is composed of six individuals (Dong-Sung Cho, Seok-Young Lee, Sung-Pil Park,
Keun-tae Han, Hee-Jung Kim, Ji-yeon Ahn) - professors at Korea’s top universities or expert practitioners with professional
accreditation and extensive experience in sustainability management based on majors in business management, accounting,
environmental science etc.
113
Conclusions
On the basis of the above we provide the following conclusions. The Auditor did not find The Report to contain any material
misstatements or bias. All material findings of The Auditor are included herein, and detailed review findings and follow-up
recommendations have been submitted to the management of Kia Motors.
Materiality: Does The Report cover economic, social and environmental issues
of the greatest importance to Kia Motors?
The Auditor does not believe that Kia Motors has omitted or excluded any information of the greatest importance to itself. We were
able to verify efforts by Kia Motors to identify issues of the greatest material interest to its stakeholders through Materiality Testing (i.e.
examining internal rules, laws and regulations, international guidelines, stakeholder involvement, same-industry benchmarking, media
reports, etc.) to give priority to reporting issues of the greatest risk or importance. The Auditor recommends that Kia Motors continues
to further refine its Materiality Testing model to best identify issues of the greatest stakeholder importance.
Completeness: How reliable is the information and data stated in The Report, and is the underlying information and
data collection system complete and robust?
The Auditor took note that Kia Motors has been gauging and managing environmentally relevant issues through a company-wide
organization and underlying system for environmental management. Moreover, we confirmed that Kia Motors has adopted diverse
management systems such as i-ESH (integrated system for safety, health, and environment), and VOC (Voice of the Customer) designed
to analyze customer satisfaction regarding its products and services. However, The Auditor recommends introducing a permanent
organization to be in charge of sustainability management while spreading out its existing systems and organization throughout the
entire enterprise and improving upon its performance measurement and evaluation system for sustainability management.
Responsiveness: How well does The Report address information of importance to
Kia Motors’ stakeholders?
The Auditor determined that Kia Motors has established stakeholder-specific channels of communication including management and
staff surveys and sustainability expert interviews to listen to issues and comments from stakeholders. We also found The Report to be
improved from the previous year in terms of the structure of contents and design thanks to incorporating findings from its 2007 Reader
Comment Survey. The Auditor suggests collecting stakeholder comments from more diverse communication channels to reflect into
future reports.
Relative to BEST Guidelines, in view of the level of reporting rigor and intensity of information provided, The Auditor finds The Report
to fulfill 83.8% of the reporting requirements necessary to qualify for a Level 4 Report (from among Level 1 ~ 5).
Issues for Future Consideration
For future publications, in the interest of continued qualitative improvements in sustainability management performance and
reporting, the Auditor recommends the following.
•
•
•
Present targets for major issues in each dimension and indicate the percentage of actual performance achieved against targets
to better demonstrate Kia Motors’ commitment to keeping its promise to stakeholders.
Refine the implementation mechanism for sustainability management to be more systematic to expand the scope of stakeholders
against whom sustainability management performance is aggregated and measured to better enhance data collection and
reporting for social and environmental sustainability performance.
Enhance the Completeness of The Report by incorporating findings from its stakeholder communication channels into
Materiality Testing and disclosing the above.
Based upon the above review and recommendations, The Auditor suggests that Kia Motors establish a more systematic program of
sustainability management and reporting, and continue to follow up with ongoing improvements going forward.
March 7, 2008
Yoon-Chul Lee
President, The Institute for Industrial Policy Studies
114
GRI(G3) /bEST InDEX
Number Indicator
Remark Page
●
Fully Reported
◐
Partially Reported
○
Not Reported
◇
Not Applicable
BEST
Profile
Strategy and
analysis
1.1
Statement from the Board of Management
●
4~5
A_1
1.2
Impacts of operational activity, key risks and opportunities
●
7
A_2
Organizational
profile
2.1
Name of the organization
●
12
A_3
2.2
Primary brands, products, and services
●
12, 30
A_4
2.3
Operational structure of the organization
◐
3
A_5
2.4
Location of organization’s headquarters
●
12~13
A_7
2.5
Countries where the organization operates
●
13
A_7
2.6
Ownership structure and legal
●
23
A_8
2.7
Markets served
●
13
A_9
2.8
Scale of the organization profile
●
12
A_10
2.9
Significant changes regarding size, structure, or ownership
●
25-26
B_8
2.10
Awards
●
48, 78
CO8
3.1
Reporting period
●
3
B_3
3.2
Date of most recent previous report
●
3
B_8
3.3
Reporting cycle
●
3
B_6
3.4
Contact persons for questions regarding the report
●
3
B_9
3.5
Process for defining report content
●
6~7
B_4
3.6
Boundary of the report
●
3
B-1
3.7
Limitations on the scope or boundary of the report
●
3
B-2
3.8
Basis for reporting on joint ventures
◇
A_6
3.9
Data measurement techniques and bases of calculations
●
2
-
3.10
Restatements of information
●
3
-
3.11
Changes from previous reporting periods in the scope, boundary, or measurement methods
●
3
B_5
3.12
GRI Content Index
●
114-116
B_10
3.13
External assurance for the report
●
112-113
B_7
4.1
Governance structure of the organization
●
20-21
GR1
4.2
Independence of the Chairman of the Supervisory Board
●
21
GR1 GR3
4.3
Number of independent members in the highest governance body
●
20-21
GR2
4.4
Co-determination right of employees and shareholders
●
21
GR12
4.5
Linkage between executive compensation and achievement of sustainability goals
●
20
GR7
4.6
Process in place to avoid conflicts of interest
●
20
GR13
4.7
Qualifications and expertise of the highest governance body regarding economic,
◐
20-21
GR4
●
16-18
GR5
Report
parameters
Governance,
commitments
and
engagement
environmental, and social topic
4.8
Values, mission statements, principles, and codes of conduct of the organization relevant to
sustainability
4.9
Oversight of the sustainability performance and relevant risks by the Board of Management
○
-
GR6
4.10
Assessment of the performance of the Board of Management regarding sustainability
○
-
GR11
4.11
Precautionary approach
○
-
GR10
4.12
Support for external economic, environmental, and social activities
●
56, 59, 68
A_11
4.13
Memberships in associations and representation of interests
●
21
C_1
4.14
Stakeholder groups engaged by the organization
●
6
C_2
4.15
Basis for identification and selection of stakeholders
◐
6
C_1
4.16
Approaches to stakeholder engagement
●
6
C_2
4.17
Key stakeholder topics
●
7
C_3
Economic
Economic
EC1
Direct economic value generated
●
32
EC1
Performance
EC2
Financial implications due to climate change
◐
74
EC2
EC3
Organization’s defined benefit plan obligations
●
87
EC3
EC4
Significant financial assistance received from government
○
-
EC5
EC5
Range of ratios of standard entry level compared to local minimum wage
◐
87
EM4
Policy, practices and proportion of locally based suppliers
●
94
EC4
Procedures for local hiring
◐
79,82
EC4
Impact of infrastructure investments and services
●
107-109
EC6
Indirect economic impacts
●
27, 106-110
EC7
Market Presence EC6
EC7
Indirect conomic EC8
Impacts
EC9
115
Number Indicator
Remark Page
●
Fully Reported
◐
Partially Reported
○
Not Reported
◇
Not Applicable
BEST
Environment
EN1
Materials used by weight or volume
●
53-56
EV10
EN2
Percentage of used materials that are recycled materials
●
55,57
EV11
EN3
Direct energy consumption
◐
59
EV7
EN4
Indirect energy consumption
◐
59
EV8
EN5
Energy savings
●
59
EV5
EN6
Energy-efficient products and services
●
40-53
EV5
EN7
Reduction of indirect energy consumption
●
59
EV5, EV25
EN8
Total water withdrawal
●
57
EV9
EN9
Water sources affected by withdrawal of water
◇
-
EV20
EN10
Percentage of water recycled and reused
●
57
EV18
EN11
Production plants in protected areas
●
62
EV22
EN12
Significant impacts upon biodiversity in protected areas
◇
-
EV22, EV26
EN13
Habitats protected and restored
◇
-
EV27
EN14
Strategies for managing impacts on biodiversity
◇
-
EV6, EV26
EN15
Endangered species in areas affected by operations of the organization
◇
-
EV28
EN16
Direct and indirect greenhouse gas emissions
●
58, 70-73
EV12
EN17
Other relevant greenhouse gas emissions
○
-
EV13
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved
●
58, 74-75
EV4
EN19
Emissions of ozone-depleting substances
◐
-
EV14
EN20
NOx ,SOx and other significant emissions
●
35,60
EV15
EN21
Total water discharge
◐
61
EV17
EN22
Total weight of waste by type and disposal method
●
56-57
EV16
EN23
Significant spills
●
62
EV21
EN24
Cross-border transport or treatment of hazardous waste
◇
-
EV29
EN25
Areas impacted by the organization’s discharges of water and runoff
○
-
EV19
Products and
Services
EN26
Initiatives to mitigate of harmful environmental impacts of products
●
40-53
EV23
EN27
Percentage of products sold and their packaging materials that are reclaimed by category
◐
52-53
EV24
Compliance
EN28
Significant fines and sanctions for non-compliance with environmental laws
●
64
EV31
Transport
EN29
Significant environmental impacts of transporting products, goods, materials and members of
●
62
EV30
●
69
EV1
Materials
Energy
Water
Biodiversity
Emissions,
Effluents, and
Waste
the workforce
Overall
EN30
Environmental protection expenditures and investments
Employees
LA1
Breakdown of workforce by employment type, contract, and region
●
79
EM1
LA2
Employee fluctuation ratio
●
80-81
EM5
LA3
Benefits provided only to full-time employees
●
87
EM20
Labor
Management
Relations
LA4
Percentage of employees covered by collective bargaining agreements
●
83
EM12
LA5
Minimum notice period(s) regarding significant operational changes
◐
83
EM13
Occupational
Health and
Safety
LA6
Percentage of total workforce represented in occupational health and safety committees
●
88
EM14
LA7
Injuries, occupational diseases, working days lost, absentee rate, and work-related fatalities
●
88
EM19
LA8
Preventive healthcare, counseling and training regarding serious diseases
●
87
EM18
LA9
Health and safety topics covered in agreements with trade unions
◐
82
EM15
LA10
Education and further training measures
●
86
EM27
LA11
Skills management and lifelong learning that support the continued employability of employees
●
79-80
EM28
LA12
Employee performance and career development reviews
●
84-86
EM29
LA13
Diversity in senior management and employee structure
◐
82
EM2
LA14
Ratio of basic salary of male and female employees
●
82
EM3
Employment
Training and
Education
Diversity and
Equal
Opportunity
116
Number Indicator
Remark Page
●
Fully Reported
◐
Partially Reported
○
Not Reported
◇
Not Applicable
BEST
Human rights
HR1
Investment decisions that include human rights clauses
○
-
PN2
HR2
Percentage of suppliers that have undergone screening on human rights
◐
92
PN3
HR3
Employee training on human rights
●
96
EM30
HR4
Incidents of discrimination and actions taken
◐
82
EM7
Freedom of
Association
HR5
Operations with significant risk concerning the freedom of association and collective
●
82
EM8
Child Labor
HR6
Operations with significant risk for incidents of child labor
●
83
EM9
Forced and
Compulsory
Labor
HR7
Operations with significant risk for incidents of forced and compulsory labor
●
83
EM10
Security
Practices
HR8
Percentage of security personnel trained on aspects of human rights that are relevant to
◐
83
EM31
Indigenous
Rights
HR9
○
-
CO2
NonDiscrimination
bargaining
operations
Incidents of violations involving rights of indigenous people
Society
Community
SO1
Impacts of operation on local communities and regions
●
104-110
CO2
Corruption
SO2
Number of business units analyzed for corruption-related risks
◐
95
CO5
SO3
Employee training regarding anti-corruption
●
96
CO5
SO4
Anti-corruption measures
●
95-96
CO5
SO5
Public policy positions and participation in public policy development and lobbying
○
-
CO6
Anti-competitive SO6
Behavior
Financial and in-kind contributions to political parties and politicians
○
-
CO7
Anti-competitive SO7
Act
Number of legal actions for anti-competitive behavior
○
-
CS3
Compliance
Number of fines for non-compliance with laws
●
95
CO9
Public Policy
SO8
Product responsibility
Customer Health PR1
and Safety
PR2
Life cycle stages in which health and safety impacts of products and services are assessed
●
97-100
CS4
Incidents of non-compliance with regulations concerning health and of safety of products
◐
97
CS11
Product and
PR3
Service Labeling
PR4
Principles and measures related to product and service information and labeling
◐
101
CS5
Incidents of non-compliance with regulations and voluntary codes concerning product
○
-
CS12
Customer satisfaction
●
100-102
CS9
Programs for compliance with laws, standards, and voluntary codes related to marketing
○
-
CS13
◐
103
CS14
information and labeling
PR5
Marketing
PR6
Communications
PR7
communications
Incidents of non-compliance with regulations and voluntary codes related to marketing
communications
Customer
Privacy
PR8
Number of substantiated data protection complaints
●
102
CS15
PR9
Significant fines for non-compliance with laws and regulations concerning the provision and use
●
102
CS12
of products
24, 38, 78
GRI Application Level
Kia Motors Sustainability Report 2008 is based on GRI’s G3 Guidelines, self-declared B+ on GRI’s application level table,
and received B+ from IPS as the third party verification.
117
sustainability report
committee
Commitee Supervision
Kwang-Joo Kim Executive Vice President
Corporate Planning Division +82-2-3464-5077 [email protected]
Goan-Soo Shin General Manager Sustainability Management Team +82-2-3464-5165 [email protected]
Keuk-Jin Bang Deputy General Manager Sustainability Management Team +82-2-3464-5171 [email protected]
Chang-Muk Choi Deputy General Manager Sustainability Management Team +82-2-3464-5168 [email protected]
Jong-Oh Kim Assistant Manager Sustainability Management Team +82-2-3464-5167 [email protected]
Kye-Hwan Roh Assistant Manager Sustainability Management Team +82-2-3464-5166 [email protected]
Hyun-Jin Cho Staff Sustainability Management Team +82-2-3464-5169 [email protected]
Public Relations Management Team +82-2-3464-5206 [email protected]
Economic value
Namyoung Lee Manager Dong-Eun Lee Manager Accounting Team +82-2-3464-5412 [email protected]
Pil-Sun Ryu
Assistant Manager Treasury Team +82-2-3464-5463 [email protected]
[email protected]
Environmental value
Min-Seok Kim
Assistant Manager Strategy Planning Team +82-3464-5170 Hee-Jeong Yim
Senior Research Engineer Eco-Technology Research Team +82-31-899-3060 [email protected]
Yun-Dong Hwang
Research Engineer
HEV System Engineering Team +82-31-368-2088 [email protected]
Sang-Sun Park
Senior Research Engineer Polymeric Materials Research Team +82-31-368-7408 [email protected]
Dong-Ki Lee
Manager Safety & Environment Team +82-2-801-3058 [email protected]
Ki-dong Lim
Assistant Manager Safety & Environment Team +82-31-359-5094 [email protected]
Dong-Keun Choi
Deputy General Manager Safety & Environment Team +82-62-370-3341 [email protected]
Gill-Beom Nam
Manager Service General Affairs Team +82-2-3271-2612 [email protected]
Social value
Eunhee Kang
Assistant Manager Corporate Responsibility Team +82-2-3464-2066 [email protected]
Sang-HO Lee
Manager General Affair Team +82-2-3464-5251 [email protected]
[email protected]
Seo Jang Won
Assistant Manager HR Administration Team +82-2-3464-5322 Byung-Keun Ji
Assistant Manager Human Resources Support Team +82-2-3464-5353 [email protected]
Jee-Eun Chung
Assistant Manager Core Competency Development Team +82-31-950-1512 [email protected]
Ju-Hun Lee Manager Occupational Safety Planning Team +82-2-801-4982 [email protected]
Jae-Sun Lee Manager General Affairs Team +82-2-3464-5306 [email protected]
Ki-Bum Kim Assistant Manager Procurement Strategy & Planning Team +82-2-3464-0212 [email protected]
Seung-Jae Lim Deputy General Manager
Audit Planning Team +82-2-3464-3499 [email protected]
Jin-Uk Jeong Assistant Manager Sales Planning Team +82-2-510-9691
[email protected]
Ki-Tae Ahn Manager Customer Satisfaction Planning Team +82-2-510-9445 [email protected]
Joung-Hoon Yeo Manager Customer Satisfaction Planning Team +82-2-2108-0502 [email protected]
Hyung-Bae Yoon Manager Domestic Communication Team +82-2-510-9242
[email protected]
Myeong-Kon Jeong Deputy General Manager Quality Strategy Team +82-2-3464-3016 [email protected]
• Editorial Closed
March 3, 2008 (Annual)
• Produced by
Strike Communications
• Published by
Kia Motors
• Coordination
Chang-Hyun Shin, Na-young Lee
• Editing
Sustainability Management Team
• designed by
Ju-Hwan Kim
• Printed by
Young-Eun Printing
• Project Manager Kye-Hwan Roh

insight execution

Transcription

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