This year many countries around the world, including Korea, are facing a time of change and challenge, big and small. But, what's underlying all these changes is the Fourth Industrial Revolution. This big wave of change is fast sweeping the world. The world is evolving into a super connected, super knowledge and super competitive society and, if we thoroughly analyze such trends and prepare ourselves across the company, we can turn this tremendous change into an opportunity for further growth. It can also be a useful stepping stone toward our digital transformation.

 In my opinion, one of the most difficult challenges facing the Korean market is its aging population. And the surest way for us to overcome this is by taking a customer-centric approach to developing innovative products and an excellent customer experience in tune with the stream of times. Unless we get over this challenge in the Korean market, we will not be able to expand our global presence. The Asian market is growing faster than ever before. Last month, I went to Inner Mongolia. Its tier 3 and 4 cities were a clear illustration that shows how fast the region is changing. The number of Chinese customers using makeup products has grown to several hundred million; with this growing interest, their taste and knowledge have become greatly refined as well. We must prioritize taking over the Chinese digital beauty market, exploring newly emerging tier 3 and 4 cities and targeting younger luxury customers.

 The ASEAN market is rapidly evolving, too. Indonesia, the host of the most recent Asian game clearly shows how quickly the ASEAN market is growing. It still faces some social infrastructure issues, but it is undeniable that bigger cities are being built and the markets are brightening in the ASEAN region. These markets are full of energy and positive developments, and they should be our next target and a springboard for us to go further and reach higher.

 The North American market is changing as well. The skincare market has previously been less developed than the makeup market. With the expansion of social media channels and other digital trends, however, a wide range of information sharing are supporting the growth of the skincare market. In North America, small and yet unique brands are overtaking traditional market leaders. It is a good sign for primera, Hanyul, Mamonde, LANEIGE, innisfree and other brands of our company, which are familiar to us but rather strange in the North American market. We need to dream big and continue to take up new challenges to leverage this opportunity.

 There are new opportunities ahead of us and when we seize them, we will be able to jump to the next level and fulfill our true potential. But there are things that require us to do in order to turn these opportunities into the stepping stone toward our future. First, we must develop innovative products. Many customers remain loyal to our products, but some say that our products are too common and somewhat less appealing. Young millennial customers often shop online and they are more likely to switch brands if they find anything to their liking. This suggests that we develop and market a fewer yet more appealing products. It is all about product appeal. More and more customers look for something different, unique and original. Whether it is marketing, research, production, logistics, sales or support, each unit must play its given role to the full and that's the only way to make products with singularity. Unless we work together, we will never be able to make innovative products. In addition, we must give careful thought to how we can make full use of digital technology. We also must turn Sulwhasoo into the world-class brand in the Asian market. That's our job, not someone else's. Never stop giving the best effort to bring our brands and innovative products into 20, 30, 50 countries and further. Developing the next-generation brands beyond our five champions is another mission. There are many new opportunities out there, and lean startups may be one of them. All brands, both old and new, will grow through challenges and opportunities. I firmly believe that what we do right now will build a better future for us.

 Second, we must become more digital-friendly. We have our own online platforms including ARITAUM Mall and AP mall and when it comes to their data management, there still remains much to be done. Make it easier for customers to write reviews and focus on managing and spreading these reviews. Data-driven innovation is the key to the future success. Manage data properly and discover hidden insights. If there is not enough data, gather and store up, one by one. Every little effort – be it by store, brand or channel – is crucial since it will ultimately serve to build data. We must have a better knowledge of data. That is the way to enhance our capabilities. As office jobs are different from what they were 20 years ago, our jobs are changing now and will continue to do so going forward. Keeping up with the trends of this big data era is in the best interest of each one of us, which will ultimately contribute to the company That is the reason why we must take action for ourselves, no matter how small.

 Third, we must streamline communication and collaboration at the corporate level. The new HQ is designed with a vision toward the 21st century. Some of its elements may seem inefficient, but everything is thoroughly designed to ensure a better way of working and communicating more efficiently today and in the future. Taking the stairs brings you closer to each other. The community lounge on the 5th floor allows you to meet and communicate with co-workers over a meal or while working out. And the courtyard is a place where you can enjoy nature at work. This is a future-oriented building designed in pursuit of communication and mutual understanding. To that effect, I hope you to make the most of it developing better ways to communicate with each other and solving problems in tune with the 21^st century, so we can grow together and be happy at work. I'd like to ask for your active participation and involvement as we all work toward lateral and open communication and collaboration through our new Facebook Workplace.

 Last but not least, we must make the utmost effort to enhance the customer experience. Through more consistent efforts, we must make it easier and more seamless for customers to experience our stores and products. New customer-friendly Beauty Point system has launched on September 1. It is the result of our combined effort. IT department upgraded nearly 20 systems and 1,000 programs and the Point Innovation TF had a series of discussions to achieve our goal. Many departments worked together to make innovation happen. I'd like to thank you all for your hard work. Customers can now use Beauty Point more easily. Amore Counselors, as well as ARITAUM, innisfree, ETUDE HOUSE and other brick-and-mortar stores, will be able to attract more customers and increase sales using this advanced system. But this is the start, not the end. Strive to diversify customer experience so that customers can use point more efficiently and conveniently.

 Meanwhile, we had our final Theme Hyecho presentation last month and heard their real stories. In the last eight years starting from 2011, about 200 Hyechos went outside Korea to learn and experience the world. The Hyecho Project has helped us work through many challenges and long-standing issues to keep us competitive in the market as the Fourth Industrial Revolution is happening fast. The widespread use of AI and the development of personalized cosmetics are a few examples. We will continue to provide opportunities for AP members who are ready to make better use of this valuable resource and discover and spread various insights.

 I'd like Amorepacific to be a workplace full of fun and yet meaningful to everyone involved. That must be what all of us want. And for that, I'd be glad to have your views. When you are happy at work, you will be able to learn from work, push your boundaries and become a better version of yourself. Every person grows through challenges. Let us be a creative master, more like a geek and yet cooperative with each other. Our passion for work will help us grow, overcome the challenges of this 21st century and together build a more beautiful world. Commit yourself fully to making customers around the world happy. You cannot make change by simply reading reports and books. Take up new challenges with passion and team spirit, so you can grow through them. I wish that all of you interact with each other more often, take passion and build a strong team together for our mission of making a more beautiful world. Thank you.