SOOP ESG2024

Key Materiality Issues 1. Responsible content creation

Key Materiality Issues 2. Leveraging AI technology and enhancing global competitiveness

Key Materiality Issues 3. Data protection

Key Materiality Issues 4. Mutual growth with partners

Key Materiality Issues 5. Higher user satisfaction

Respect for human rights

Fair trade and anti-corruption

HR management

Ethical management

Sound corporate governance

Safety and health

Corporate culture

Contribution to the local community

Energy efficiency

Climate change

Neglecting harmful content or failing to protect minors may lead to sanctions and fines from regulatory bodies such as the Korea Communications Commission, and possible lawsuits for violating the law, which can lead to direct financial losses.

Strengthening content monitoring processes and adopting age-restrictions enhances social responsibility and platform stability, which mitigates regulatory risks in advance and reinforces advertiser and investor confidence, strengthening the foundation for continued profit sources.

Failure to invest in technology, non-compliance with foreign regulations, etc. may hinder global market expansion or lead to a costly market entry.

Adopting AI technology to automate content and extend global outreach can help raise new revenue and global brand value.

User data breaches can result in serious financial loss, including fines, legal action and user attrition.

Stronger data security systems and privacy policies will contribute to user trust and long-term loyalty.

Unfair dealings with or lack of support for streamers and partner companies can lead to partner churn and migration to rival platforms

Personalized support and win-win strategies for streamers can contribute to increased platform loyalty and user participation, which can lead to higher revenue.

Failure to respond to user complaints can result in user churn, which directly reduces revenue.

Efforts to improve satisfaction, such as operating customer service centers and actively incorporating user feedback, can increase paid service usage and repeat visits.

Human rights violations, such as workplace harassment and discrimination, can lead to reputational damage and incur legal defense costs.

Strengthening human rights management and operating a grievance mechanism contributes to a trustworthy corporate culture and conveys a positive image to investors and advertisers.

Unfair trade or corruption can result in business losses due to regulatory sanctions and deteriorating relationships with partner companies.

Establishing fair trade practices contributes to stable relationships with suppliers and a sustainable supply chain.

Failure to provide fair compensation and growth opportunities can lead to the departure of key talent, weaker organizational capabilities and increased rehiring costs.

Structured talent development programs lead to better content quality and stronger employee loyalty, which contributes to stable growth.

Unethical conduct can damage corporate credibility, investor relations and increase legal exposure.

Having a Code of Conduct and a whistleblower system in place contributes to strengthening internal controls and gaining the trust of external stakeholders.

Lack of board independence and obscure governance structures can drive investor exits and a decline in corporate value.

Transparent governance practices and the establishment of an ESG committee contributes to long-term investment stability and corporate credibility.

Safety incidents in the workplace can result in legal liability and medical expenses, and can negatively impact the reputation of the company.

Improving the working environment and providing safety training to streamers help reduce direct and indirect losses that can result from safety incidents, including legal exposure, medical expenses and potential content disruptions.

Lack of communication and inflexible work environments can result in poor employee satisfaction and increased turnover, which can drive up human resource management costs.

Flexible work arrangements and a culture that values autonomy and creativity contribute to increased productivity and talent retention, which will enhance competitiveness in the long run.

Lack of engagement with the community can negatively impact corporate reputation and lead to increased costs related to civil complaints and conflicts.

Community outreach, such as location-based campaigns and donation-driven content, can help improve brand image and build user trust.

In power-hungry operations, poor energy efficiency can lead to increased power costs and environmental regulatory risk due to carbon emissions.

By adopting energy-efficient systems and operating servers efficiently, power costs can be reduced, which will contribute to investor confidence and ESG competitiveness by strengthening the company’s reputation for eco-friendly management.

Regulatory measures such as carbon taxes or emissions trading schemes may increase compliance and operational costs.

Creating eco-friendly content and spreading climate-aware campaigns can enhance SOOP’s ESGfriendly image and win the trust of advertisers and investors.