Many are struggling with COVID-19 and our hearts go out to those who suffer. Although the end of this pandemic remains elusive, history has shown us that when united, humanity prevails. We will ultimately overcome this unprecedented challenge through the dedication of governments, health professionals and our collective efforts to protect one another.
Amid this dire situation, LG Electronics has thoughtfully contemplated its role as an electronics manufacturer and global corporate citizen. We have taken numerous measures to safeguard the health of our workforce such as adopting temperature screening at entry and enabling work from home, especially for high-risk employees like pregnant women. Workplace counsellors have reached out to employees to provide compassionate care and support. Our management has also listened to the voice of the employees collecting ideas on overcoming this crisis.
Employees have contributed to this fight against COVID-19 by volunteering to help others in need. Sticking to social distancing rules, groups of employees took part in non-face-to-face volunteer activities delivering handmade face masks and donating goods to nonprofit organizations. We would like to take this opportunity to thank them for their gracious support.
To express gratitude to medical workers on the frontline, we donated air purifiers, dryers and steam closets to hospitals and public health centers. Electronic goods and infection control equipment including face masks were donated to over ten nations in response to their request. Together with local subsidiaries, we are also providing support to countries in need of test kits.
Like many businesses around the world, LG Electronics has experienced negative effects from the coronavirus. However, our business fundamentals remain sound, and we believe the overall impact from COVID-19 will be limited. By addressing global supply issues with our diversified production bases, expanding health-related product lineups and closely cooperating with distributors and customers, LG Electronics will turn this crisis into an opportunity to mitigate its impact on our business operations, and lay the foundation for further growth.
The pandemic has demonstrated that every person on Earth is far more interconnected than we realize. One confirmed case can rapidly lead to chains of infections among family members, friends and colleagues. Therefore, without exception, everyone should take part in combating this dreadful virus; otherwise it will continue to plague humanity. As an entity with influence on diverse aspects of production and sales, LG Electronics must assume responsibilities in a befitting manner. Our company has continuously worked to reduce negative impacts to the planet by eliminating the use of toxic substances and developing energy-efficient products that can help address social issues and positively influence society, and we remain committed to these efforts.
COVID-19 will not be the last global challenge we face. One thing we have learned from the pandemic is that high-impact risk must be addressed in a timely fashion. As long as we let environmental issues including climate change persist, we will experience another risk. As a responsible global corporate citizen, LG Electronics will continue to put climate at the top of our agenda preparing for a post-COVID world, while supporting employees, suppliers, customers, investors and all stakeholders to rise to the current challenge and return to normality, where "Life's Good."
In accordance with the corporate-level crisis response standards for the outbreak of infectious diseases, we implemented measures in the following stages: concern; caution; alert; and serious.
• Distributing COVID-19 response guidelines company-wide
• Daily sharing of the status of our employees and those of our subsidiaries
• Providing guidance regarding global travel bans/restrictions
• Distributing masks and hand sanitizer
• Installing thermal imaging cameras at all business sites in order to prevent the entry of symptomatic persons
• Prohibiting the entry of visitors into all business sites and prohibiting employee visits to other business sites
• Providing self-quarantine guidelines to employees and their families returning from overseas
• Providing guidance regarding telecommuting standards and precautions for telecommuters
• Providing guidance on COVID-19 prevention rules and social distancing guidelines
• Banning the use of in-house employee facilities (gym, cafe, etc.)
• Installing screens in the company cafeterias, extending the operating hours of the cafeterias, and expanding the take out menu to include lunch boxes, etc.
• Early days of the COVID-19: Hand sanitizer and protective gear provided by Korean business sites to our subsidiaries in China (approximately 300,000 masks were provided to employees in China subsidiaries).
• Introduction and spread of COVID-19 in Korea: Due to the government policy aimed at controlling the supply and demand of masks and securing public supplies first, it became difficult to supply masks in large quantities in Korea. Accordingly, we actively sought mask manufacturers from countries where our overseas subsidiaries are located, such as Poland, Mexico, and China, and supplied emergency response products, such as 60,000 masks, to business sites in Korea.
• Introduction and spread of COVID-19 to foreign countries other than China: All of our overseas business sites strate gically cooperated with and supported each other through the diversification of emergency response product procurement measures via China General Procurement, LG International, and SERVEONE (about 810,000 masks, hand sanitizer, disinfectant, and gloves were distributed to overseas business sites).
• In order to prepare for emergency situations that may occur involving our employees or their families, such as breathing difficulties caused by becoming infected with COVID-19, we provided oxygen supplies and oxygen masks to some of our overseas subsidiaries.
• In 2021, we increased the value of interest-free loans offered to our suppliers to USD 46.6 million the previous amount having been USD 33.9 million and we provided the loans four months earlier than the previous year.
• We operated a win-win cooperation fund worth USD 169.4 million for low-interest loans in partnership with the Industrial Bank of Korea and Korea Development Bank.
• We provided emergency support by delivering 120,000 masks and hand sanitizer to both domestic and overseas suppliers
• Made telecommuting compulsory for all pregnant employees as a precautionary measures against COVID-19.
• Encouraged employees who need to take care of their children, due to the closure of kindergartens, daycare centers, or schools, to telecommute.
• Implemented 'Flexible Working Hour' system which allows flexibility in terms of what time the employees start and finish the work under 8 working hours to minimize the use of public transport during rush hours.
• Increased the inspection of telecommuting-related equipment and networks to ensure smooth remote cloud access.