Ensuring Customer Safety/Food | 2025-26 Hanmi Science ESG Report

Material Issue 2-1

Ensuring Customer Safety/Food

Ⅰ. Corporate Governance

Decision-Making Structure

Hanmi Science operates a food safety management system with the CEO as the top decision-maker to systematically manage the safety and quality of food products. The CEO has final approval authority over strategies to ensure customer safety in the food sector. The Head of the Consumer Health Division, who oversees food customer safety, manages and approves food safety objectives, annual action plans, key policies, and directions, and the Songtan Plant's Quality Development Team is responsible for food safety management within the manufacturing plant. They manage key aspects related to food safety during the manufacturing process, identify hazards throughout the entire process, and proactively eliminate them to ensure food safety at the manufacturing stage. Additionally, the QA Manager of the Head Office's Strategic Marketing Group is responsible for food safety management, including that of external manufacturers. Beyond the manufacturing stage, they manage the review and monitoring of food advertisements and various publications to ensure that accurate and reliable food information is provided to consumers. Through this decision-making structure, Hanmi Science systematically manages all processes related to food safety and pursues continuous improvement activities with customer safety as its top priority.

Roles and Responsibilities

Category	Key Roles and Responsibilities
CEO	ㆍFinal approval of customer safety assurance strategies
Head of Consumer Health Division	ㆍDecision-making on food and cosmetic safety-related matters ㆍApproval of goals and action plans related to food and cosmetic safety
Songtan Plant Quality Development Team	ㆍCollecting, operating, and monitoring key food safety matters within manufacturing plants, identifying and eliminating hazards
Strategic Marketing Group QA Manager	ㆍCollecting, operating, and monitoring key food safety matters within external manufacturers, identifying and eliminating hazards ㆍPre-emptive removal of exaggerated or misleading advertisements through review and monitoring of advertisements and publications

Mandatory Professional Training

Target Audience	Frequency	Training Content
Quality Development Team Leader	1st Time Only	ㆍHACCP Team Leader Training
Quality Development Team Leader	Once a year	ㆍHACCP Regular Training

Ⅱ. Strategy_Risk and Opportunity Identification

Hanmi Science identifies key risks and opportunities that can significantly impact stakeholders and sustainability related to ensuring customer safety, based on the results of IRO analysis, and continuously strives to establish effective response measures based on this.

RISK
Occurrence of administrative measures due to product quality issues
Characteristics of Impact	Potential Impact
Affected Stakeholders	Customers, Government, and Related Institutions
Severity of Impact on Society and Environment	Scale ■■■□□ Scope ■■■■□ Recoverability ■■■□□
Expected Financial Impact	Likelihood ■■■□□ Scale ■■■■□
Impact on the Company	ㆍIncreased risk of customer safety incidents ㆍIncreased risk of lawsuits and administrative penalties due to product recalls, side effect issues, etc. ㆍReduced purchases due to decreased consumer trust and damage to corporate image
Company's Response	ㆍUtilization of a management system to ensure safe and transparent dietary practices ㆍHigh-level hygiene management through operation of SIG Aceptic facility processes

OPPORTUNITY
Operating a rapid communication system for customer protection
Characteristics of Impact	Actual Impact
Affected Stakeholders	Customers, Government, and Related Institutions
Severity of Impact on Society and Environment	Scale ■■■■□ Scope ■■■■□
Expected Financial Impact	Likelihood ■■■■□ Scale ■■■■□
Impact on the Company	ㆍSecuring trust from stakeholders, including customers, and strengthening the company's responsible management capabilities ㆍReducing direct losses due to post-recall costs, damage compensation, etc., and decreasing the possibility of lawsuits and administrative penalties
Company's Response	ㆍData-driven process improvement through VOC and SR management systems

Ⅱ. Strategy_Risk and Opportunity Response Plan

Utilization of a management system to ensure safe and transparent dietary life

Food Traceability Management

For health functional foods and foods for special dietary uses among the products operated by the company, food traceability management is implemented. The Food Traceability Management system is provided by the Ministry of Food and Drug Safety, and it is a system that records and manages traceability information at each stage, from food manufacturing and processing to sales. Hanmi Science provides transparent information to consumers through this system and ensures customer safety by implementing swift distribution blocking and recall measures if issues arise concerning the safety of the respective food products.

Stage-by-stage Quality Management System

To deliver safe food to consumers, we operate an advanced quality management system at the manufacturing and distribution stages. We prevent unintentional food contamination that may occur in the supply chain and proactively identify and address risk factors arising during the distribution process, thus growing into a company trusted by customers.

Manufacturing Stage	Goals	Securing Safe and Sustainable Raw Materials
	Key Activities	ㆍOperation of supplier quality audit process ㆍImplementation of HACCP-based inspections upon receipt of domestic and international raw materials ㆍRegular/irregular audits for pre-emptive blocking of non-conforming raw materials
	Management Indicators	ㆍSupplier ratings and evaluation cycle ㆍSR (Service Request) and VOC (Voice of Customer) improvement history
	Expected Effects	ㆍStrengthening supply chain transparency ㆍMinimizing unintentional contamination in the production process
▼

Distribution Stage	Goals	Delivery of Safe Products and Goods
	Key Activities	ㆍStrengthening temperature and hygiene standards within the distribution channels ㆍOperation of a labeling verification system to enhance transparency of nutrition, allergy, and origin information ㆍReducing waste through inventory efficiency
	Management Indicators	ㆍRecall occurrence rate, response and disposal indicators ㆍLead time required to improve SR and VOC operation status
	Expected Effects	ㆍEnsuring quality consistency in the distribution process ㆍMinimizing resource waste and securing social trust

<Supplier Quality Audit Process>

Once the supplier selection is complete, supplier validity verification is carried out, followed by annual evaluations twice a year after contract completion. Our company evaluates suppliers based on assessment sheets that include standards such as HACCP, GMP, mandated by the Ministry of Food and Drug Safety, and FSC22000, a standard of GFSI (Global Food Safety Initiative). We ensure the manufacturing safety of suppliers through regular inspections (1-2 times a year) and special verifications (in case of urgent risks such as discovery of claims or non-conforming elements). From 2026, we aim to establish a system that allows for more precise evaluation of supplier quality and safety levels and proactive risk management by strengthening audit standards, segmenting the existing 2-tier partner audit grading system into 3 tiers.

Administrative Sanctions Status in 2025

Product	Content	Administrative Sanction	Action Taken
4 items including Miniwell 150mL	Failure to provide 9 cases of product release history information (Food Traceability System)	Corrective Order	Daily inspection conducted by the head of the responsible group

High-level Hygiene Management through SIG Aseptic Equipment Process Operation

Hanmi Science maintains the quality consistency of its beverages by utilizing 'SIG Aseptic' equipment, a sterilization system with global competitiveness. To maintain a high level of hygiene management from raw material input to product packaging, the company has obtained 7 HACCP certifications by utilizing HACCP (Hazard Analysis and Critical Control Points) and its own hygiene SOPs (Standard Operating Procedures), thereby establishing a safe production environment. By identifying risks and opportunities that may arise during the process using SIG Aseptic equipment, and by establishing corresponding response plans and utilization strategies, process efficiency and quality safety are achieved.

Risks, Opportunities, and Response Measures that may arise from SIG Aseptic Equipment Process Operation

Risks		Response Measures
Potential for process contamination Equipment malfunction, operator error leading to contamination		ㆍPeriodic aseptic filling verification ㆍEquipment automation and sensor-based monitoring ㆍStrengthening hygiene education for workers
Poor equipment cleaning If CIP (Cleaning in Place) and SIP (Sterilization in Place) are inadequate, microorganisms may remain		ㆍEstablishment and verification of cleaning protocols ㆍIntroduction of hygiene verification procedures such as post-cleaning swab tests

Opportunities		Response Measures
Enhancing product quality reliability Emphasizing hygiene management based on aseptic processes to build a premium product image		ㆍPackage design emphasizing aseptic facilities ㆍUtilization of quality certification in marketing
Introduction of digital quality management system Ensuring quality consistency through process automation and real-time monitoring		ㆍQuality data-driven improvement activities

Data-driven Process Improvement through VOC and SR Management System

We strengthen customer-centric product and service quality through VOC (Voice of Customer) and SR (Service Request) management systems. We collect VOC data through various channels and operate an SR channel to strengthen inter-departmental communication, promptly reflecting and processing customer feedback. Additionally, we enhance process quality by analyzing collected VOC and SR data, and ensure quality stability through process investment and improvement of key facilities.

VOC·SR Management System

Category	Key Activities	Management System	Key Achievements	Future Plans
VOC	ㆍCollection of customer feedback and claims ㆍAnalysis of product quality and service improvement requirements	ㆍOperation of a group-integrated call center ㆍOperation of a VOC sharing channel within the internal messenger, MS Teams ㆍInternal analysis conducted after receipt-processing-feedback to reduce identical VOCs	ㆍProducts 0.35ppm, Merchandise managed below 15ppm¹⁾	ㆍReflecting VOC improvement results into process investment priorities ㆍStrengthening customer opinion-based quality design through VOC data dashboarding
SR	ㆍService requests and quality improvement requirements collection and processing ㆍResult feedback	ㆍOperation of an SR sharing channel within the internal messenger, MS Teams ㆍPost management by receipt-processing-feedback stages ㆍEstablishment of a collaboration system for QA, QC, Sales, and Customer Support Groups	ㆍSR monthly average processing rate 100%	ㆍEnhancing SR statistics management features and introducing a repeated request pattern analysis system ㆍAdvancement of a prevention-oriented SR operation system

1) ppm = 1 part per million (1ppm = 1 claim per 1 million products)

<Group Call Center Operation>
As part of its VOC collection system, Hanmi Science established a group-wide integrated call center in 2014. By listening to various consumer experiences and opinions related to products sold by Hanmi Science, such as packaging, consumption, and damage, and reflecting these in its process investment priorities, the company practices customer satisfaction.
<Group Call Center Reception Volume>

Category	Unit	2023	2024	2025
Total Customer Interactions	Cases	66,890	62,906	63,689
Hanmi Science		8,790	6,716	5,887
Online Pharm		45,180	45,555	47,076
Hanmi Pharmaceutical		12,920	10,635	10,726

<2025 Hanmi Science Major Customer Feedback Received and Actions Taken>

Claim Type	Product Name	Details	Action Taken
Packaging Defect	Chueokui Mini Tenten Matchu	Negative consumer experience due to poor product sealing.	Equipment reassembly and replacement completed for stronger sealing.
Packaging Defect	Energy Gold Caffeine 100mL	Cap spinning loose and detaching.	Prevention of outer cap detachment completed by reinforcing inner cap coating, and related process investment completed.
Leakage	Kyungbang Galgeun-tang (Herbal Medicine) 75mL	Leakage of liquid observed internally	Additional tests related to leakage completed
Poor storage conditions	Premium Recipe 175mL	Outer box damage due to poor storage at the point of sale	Request completed to cool sufficiently before external storage to prevent internal temperature differences during storage

III. Risk Management

Risk and Opportunity Monitoring

Period

Target

Method

Oversight

VOC Handling Process and Policy

Ongoing

All products

Receipt
ㆍCustomer inquiries received via call center, distribution
channel representatives, etc.

Initial Response
ㆍInitial response by Customer Support Group or distribution
channel representatives
ㆍSecond-tier reception for technical inquiries

Secondary Response
ㆍSecond-tier response for technical inquiries
ㆍGuidance on compensation measures (collection,
explanation, root cause identification, countermeasures)

Closure
ㆍGuidance on compensation processing according to our
company's compensation policy
ㆍConsultation concluded

Strategic Marketing
Group

Food Safety Korea Monitoring

Violations
by external suppliers

Internal DB check of Food Safety Korea and frequent verification via KakaoTalk notifications

Strategic Marketing
Group
Quality Development
Team

Ⅳ. Indicators and Goals

Key Indicators	2025 Target	2025 Performance	Achievement
Product quality issues and customer complaints leading to minimization of administrative measures	Achieve ZERO food traceability omissions	Achieve 100% food traceability	Achieved
	Achieve 100% improvement rate for corrective actions issued during inspections	100% completion of corrective actions for identified issues	Achieved
	Achieve 100% inspection of our entrusted/consigned companies	100% completion of twice-yearly inspections	Achieved
	Claim reduction and CS logic establishment	Achieve 20% claim reduction (19.54ppm) and establish CS scripts/compensation plans	Achieved
	Head office food traceability automation introduction	Automation introduction completed	Achieved
	Establish QMS (Quality Management System) for all products before operation	100% completion of QMS (Quality Management System) establishment for all products before operation	Achieved

Key Indicators	2026 Target	Mid-to-Long-Term Plan (2030)
Product quality issues and customer complaints leading to minimization of administrative measures	Maintain ZERO food traceability omissions at the head office	Introduction of food traceability management system automation at the Songtan Plant
	Reflect global standards in supplier inspection details, achieve 100% improvement rate	Strengthen global competitiveness through continuous global standard updates and application
	Achieve 100% entrusted/consigned company inspections and 100% improvement rate for issued corrective actions	Maintain 100% entrusted/consigned company inspections and promote regular supplier meetings
	Advance CS logic reflecting consumer feedback	Establish an enhanced CX management system through continuous template sophistication
	Advance QMS (Quality Management System) for all products before operation	Stabilize new product quality through the introduction of Q-gate (Quality Gate)