Sustainability Management Report

ESG Report

Atomy envisions a win-win relationship with all stakeholders, not only those involved in management activities, but also those involved in human rights, the environment, and communities. This is why we have published our first report on the implementation process and performance of sustainable management.

ESG Select

Based on the philosophy that companies are rooted in society and that the way to truly connect with society is through sharing, we have continued to engage in social contribution activities every year since our founding. In the future, we will continue to contribute to the development of society by practicing a culture of sharing among the company, employees and members.

Strategy Challenges and Key Activities

Atomy’s donations are among the highest in the network marketing industry as well as in the distribution industry, and even among the top 500 Korean companies. The distribution industry to which Atomy belongs saw sales increase by 10% in 2021 compared to the previous year, but donations decreased by KRW 20.2 billion (14.3%↓), resulting in a 0.02% decrease as a percentage of sales. Atomy, on the other hand, more than doubled its donations from 2020 to KRW 24.8 billion, recording a donation-to-sales ratio of 2.04%. Not only in the household goods and distribution industries, but also among the top 500 companies designated in 2022, Atomy was the only company whose ratio to sales exceeded 2%. The ratio to operating profit is 18%.

Social Contribution Strategy Challenges and Key Activities

Strategic Directions

Spreading good influence through sharing, the root of the company

Contributing to society and shared growth for the local community
SHARING ACTIVITIES
- Support vulnerable people
- Donate educational supplies and scholarships
Social contribution and shared growth for governments and NGOs
SHARING ACTIVITIES
- Medical, Disaster Relief, Educational Support
- Establishment of the DREAMY Foundation
Culture of Sharing Among Employees and Members
SHARING ACTIVITIES
- Atomy Run
- Gimjang, Sharing Briquettes
- Volunteer Group Operation
Culture of Global Sharing
SHARING ACTIVITIES
- Support International Child Advocacy
- Donate educational supplies and scholarships

Major Achievements

The ratio of donations to sales reached an average of 1.6% over three years, ranking first in the distribution industry among the top 500 companies in domestic sales

Atomy’s ratio of donations to sales reached an average of 1.6%, ranking first among the top 41 distributors in domestic sales.

Comparison of donations and sales of Atomy and 41 top-selling distributors among Korea's top 500 companies over the past three years

		Proportion	Donations	Sales
2020	Atomy	0.84%	89	10,544
2020	41 Distributors Total	0.10%	1,413	1,416,046
2021	Atomy	2.04%	248	12,158
2021	41 Distributors Total	0.08%	1,195	1,574,350
2022	Atomy	2.01%	249	12,388
2022	41 Distributors Total	0.07%	1,310	1,758,007

* Distributor: 41 distributors among the top 500 companies in sales in 2022 (Source: CEO Score)

If you look at the donations as a percentage of sales for the 41 distributors among the top 500 companies in domestic sales and the donations as a percentage of Atomy sales, it's about eight times higher in 2020 and more than 20 times higher in 2021 and beyond. In addition, since 2009, we have continued to make donations starting at KRW 500 million, resulting in cumulative donations of KRW 84.7 billion by 2022.

Proportion of donations to sales for the past three years for Atomy and 41 distributors within the top 500 companies
- 0.00%
- 0.50%
- 1.00%
- 1.50%
- 2.00%
- 2.50%
0.84%

2.04%

2.01%

0.10%

0.08%

0.07%
- 2020
- 2021
- 2022
Atomy Distributor
Cumulative donations by year for the Korean branch
- 5
  
  2009
- 28
  
  2012
- 52
  
  2015
- 118
  
  2018
- 261
  
  2019
- 350
  
  2020
- 597
  
  2021
- 847
  
  2022
(Unit: KRW 100 million, consolidated)

Contributing to society and
shared growth for the local community

Since its founding in 2009, community contribution continues in Gongju where Atomy headquarters is located. We regularly provide supplies to low-income families and socially vulnerable groups, donate educational supplies and scholarships to high schools, and provide necessary supplies to government offices and welfare facilities.

Social Contribution Support Areas and Support Details for the Local Community

Support Areas	Support Details
Low-income, multicultural, single-parent household	Donations of necessities, donations of support funds, etc.
Education	High school educational supplies, scholarship donations, etc.
Government Office	Donation of fire extinguishers and vehicles, sponsorship of local festival development funds, etc.
Elderly, Children, and Disabled Welfare Facilities	Donation of Necessities and Support Funds
Other	Support for the Goma Gongju Bread Sharing Project

Support vulnerable people: We help vulnerable people in areas such as Gongju, Sejong, and Daejeon to resolve the difficulties they are facing.
Atomy provides support in the form of its products to 100 low-income families in Gongju-si every month, and also provides its products to 600 households during the Chuseok and Lunar New Year holidays. We also support welfare organizations in each region to help diverse groups.

Support for the Goma Gongju Bread Sharing Center: The Goma Gongju Bread Sharing Center was built under an agreement with Gongju-si to support low-income families and local communities in Gongju-si. In 2017, Atomy supported related operating costs, including construction for the opening, rent, and material costs, and was able to provide bread to vulnerable groups in the area through the bread sharing volunteer group. The Goma Gongju Bread Sharing Center goes beyond simple support activities to help children experience baking as part of the cultural activities that are lacking in the area, and is also used as a bakery employment training space for the disabled and a daycare and learning space for vulnerable children, thereby expanding the scope of its activities.

Support for the Golden Lunch Box Project in Daejeon, Sejong, and Chungcheongnam-do: Due to the prolonged COVID-19 pandemic, vulnerable groups in blind spots still experience even more difficulties, and small business owners are also experiencing economic difficulties due to reduced sales. In 2021, Atomy collaborated with the Korean Red Cross to develop a win-win donation project that helped small business owners by purchasing food ingredients from Gongju Sanseong Market and then delivered them to the vulnerable in the form of lunch boxes, to help not only small business owners but also the vulnerable.

Social contribution and
shared growth for governments and NGOs

Atomy provides support in the areas of medical care, disaster relief, education, etc. to support not only local communities, but also local governments and NGOs in need, and regularly makes donations through various foundations, local Red Cross offices, researchers, etc. We also established the Dreamy Foundation in 2015 to do more outreach activities ourselves.

Social Contribution Support Areas and Support Details for local governments and NGOs

Support Areas	Support Details
Medical	Support for open eye surgery, and support for the establishment of a medical academic research institute
Disaster Relief	Earthquake relief, water purification projects, donation of necessities and support funds
Education	Support for school establishment
Foundations, fundraisers, researchers, etc.	Donations to Community Chest of Korea, ChildFund Korea, World Vision International, Multi-Culture Research Institute, etc.
DREAMY FOUNDATION	Support for free school meals and facilities renovation projects
Other	Distribution of care packages to military personnel, etc.

KRW 26 billion donation to and sponsorship of Compassion Korea

Compassion Korea is the world's only child-rearing organization that sponsors poor children in 25 countries around the world and provides holistic support until they become independent adults. We not only provide learning opportunities for children living in poverty until they become healthy members of society, we also continuously support them with regular health checkups and social-emotional care. In 2021, Atomy provided $10 million (approximately KRW 12 billion) in support through Compassion Korea. Atomy's support has gone to the Haiti Earthquake Emergency Parenting Supplemental Program, the COVID-19 Emergency Parenting Supplemental Program, the Youth Parenting Development Program in Asia, and the sponsorship of unsponsored children in Asia and the Growing252 ministry. In December 2021, we established a regular partnership to provide KRW 50,000 per month to 10,000 children, for a total of KRW 500 million per month, for overseas child relief activities. In 2022, we donated an additional KRW 14 billion to help children around the world, including the reconstruction of conflict areas in Ethiopia and COVID-19 support.

Single mother support project, “Mom who cherishes life”: In 2019, for single mothers across the country who are facing many difficulties in life, we donated KRW 6 billion for the construction of the nation's first community center for single mothers, KRW 3 billion for the public offering of 32 single-parent family welfare organizations nationwide, and KRW 1 billion for the public works of the Community Chest of Korea, for a total of KRW 10 billion. In addition, we provide regular sponsorship of KRW 100 million each year through Linker, an NGO that supports and protects single mother families in blind spots, supporting holistic single mother care and education activities.

Support for the construction of a public children's rehabilitation hospital in Jeollabuk-do: In 2020, we donated KRW 2.7 billion to build a public children's rehabilitation hospital, a national project promoted by the Presbyterian Medical Center in Jeonju. While most rehabilitation hospitals focus on treating the after-effects of accidents, children need more specialized hospitals and medical staff because they need professional assist for psychological and mental issues in addition to physical treatment. However, there are no public children's rehabilitation hospitals in Korea, with this deficit caused by low cases. We hope that Atomy's small contribution will serve as an opportunity to revitalize children's rehabilitation hospitals.

Direct support for donations and facility repairs through the Dreamy Foundation: The Dreamy Foundation is a missionary foundation established in 2015 and was established as an implementation tool to make the company mottos of “Cherish the spirit” and “Serve in humility” not just a slogan, but a reality in real life. We are also working to improve living and educational conditions in developing countries in Southeast Asia by regularly donating money for facility improvements and school supplies for students at the Patmerkot School in Cambodia and donating money to the Balasore Children's Home for the Disabled in India.

Support for the construction of the Siloam Eye Hospital and patient surgery and treatment costs
Starting in 2016, we have participated in the Siloam Eye Hospital's support for patients' retinal surgery and eye disease research. In 2018, we provided KRW 500 million to build a research facility for eye disease medical staff and agreed to provide KRW 100 million per year from 2018 to 2027 for free eye care and retinal surgery for vulnerable people, totaling KRW 1 billion. In March 2021, we provided KRW 1 billion for the construction of the Light House, a lodging space for medical staff at Siloam Eye Hospital.

2016~2017	Retinal Surgery and Medical Support (KRW 160 million)
2018	Establishment of an academic research institute (KRW 1 billion)
2018~2027	Domestic and overseas retinal surgery and medical support (KRW 100 million per year for a total of 1 billion)
2021	Retinal Surgery and Medical Support (KRW 160 million)

Culture of Sharing Among
Employees and Members

Atomy RUN and other social contribution activities that Atomy employees and members participate in, such as flea markets, gimjang-sharing, and briquette-sharing, are conducted each year. In addition, we are promoting the introduction of a volunteer activity incentive system that recognizes volunteer activities as working hours, to encourage voluntary and continuous activities of our members. Atomy will continue to support employees and members to share and participate in corporate social responsibility through a culture of sharing.

Sharing gimjang kimchi and briquettes with love
Since 2013, we have been carrying out gimjang(the traditional process of preparation and preservation of kimchi) volunteer work with about 200 employees, members, and local volunteers every year and delivering it to vulnerable groups in the region. Since 2015, we have been recruiting volunteers from about 150 members every year to deliver briquettes. From seven regions (Gongju, Gwangju, Daegu, Daejeon, Busan, Wonju, Incheon) in 2015 to three additional regions (Gyeongju, Boeun, Buan) in 2016, the program is being carried out in a total of 10 regions, with a total of 300,000 briquettes delivered to 1,000 households, 100 in each region.
Love Sharing Flea Market
From 2016 to 2019, approximately 2,000 employees and members participated in the flea market. Proceeds from the flea market were used for Siloam Eye Hospital and vulnerable local groups. We donated KRW 130 million in 2017, KRW 116.36 million in 2018, and KRW 100 million in 2019, for a total of KRW 346.36 million.
Atomy Run
Atomy RUN is Atomy's strategic social contribution activity that practices valuable sharing through running. Atomy RUN, which first started at the Taiwanese branch, was also held at the Korean headquarters in 2018 and 2019, and all Atomy members, employees, and partnering companies practiced Atomy's culture of sharing by establishing healthy donations through running. All proceeds of the KRW 1 billion generated through Atomy RUN were donated to the Gongju-si Disabled Welfare Foundation and the Chungnam Cultural Foundation for disabled and vulnerable groups.
Young Leaders Volunteer Group
Among Atomy members, about 100 Young Leaders members and 20 employees in their 20s and 30s are conducting volunteer work in eight regions across the country along with Atomy headquarters. They conduct volunteer activities such as beach cleanups, replacing fluorescent lights to improve the living environment of vulnerable people, and also installing insect nets, and donated products to vulnerable people worth KRW 16.46 million in 2021 and KRW 117.45 million in 2022.
Imperial Sharing I’MPERIAL
I’MPERIAL is a sharing project in which the seven Imperial Master members, the highest rank among Atomy members, plan and carry out the business directly. They donated a total of KRW 321.87 million to support the living expenses of multicultural families, educational programs for literacy learners, construction of shelters for victims of abuse with disabilities, operating costs for orphanages and medical treatment for children, emergency relief efforts for COVID-19 victims in India, free meals for the homeless, and baby box child support and operating costs.

Culture of Global Sharing

Atomy's sharing activities have spread overseas beyond Korea, and ongoing contribution activities are being carried out at Atomy branches around the world. We practice sharing by delivering supplies during natural disasters, supporting low-income families, sponsoring orphanages, and providing and sponsoring education-related supplies.

Main Social Contribution Activities for the Local Community

USA	Support for low-income families in the Korean community, provision of goods to the homeless, sponsorship of donation organizations, etc.
Japan	Rice donation to low-income families, earthquake recovery fund support, etc.
Taiwan	Holding Atomy Run, sports development fund, medical care, education, providing goods and donations to low-income families, etc.
Cambodia	Elementary school meals and supplies, healthcare sponsorships, etc.
Philippines	Volcanic eruption disaster relief funds, medical and educational supplies and donations, etc.
Russia	Support for incurable children’s disease treatment costs, Women's Protection Foundation products, and living expenses
New Zealand	Support for Tonga undersea explosion victims, single moms, and minority immigrants
Malaysia	Organization of blood drives, provision of supplies to low-income families, donation of supplies and financial support to orphanages, etc.
Thailand	Scholarships for descendants of Korean War veterans, sponsorship of a national taekwondo team for people with disabilities, etc.
Singapore	Support for low-income families, etc.
Mexico	Delivery of earthquake relief supplies and sponsorship of an orphanage
Australia	Sponsorship of children's choirs and children's hospitals, etc.
Kyrgyzstan	Support for purchasing rehabilitation items for disabled children and relief supplies to war zones
Uzbekistan	Donation to the Children's Cancer Foundation, donations to the Federation of People with Disabilities