AMOREPACIFIC won the “Quality Management” award on Friday, November 19th at the National Quality Management Contest organized by the Ministry of Commerce, Industry and Energy and sponsored by the Korea Standard Association . AMOREFACIFIC has been aggressively implementing innovative measures for quality management including ethical management, customer satisfaction, TCR activities, innovative production activities, customer-oriented process innovation activities, the building of an ISO-integrated system for 6 Sigma activities, quality/environment/security/health care, ERP (Enterprise Resource Planning) and PILOT (Operation innovation system). AMOREPACIFIC achieved a 16.8% increase in operating profits for the past three years thanks to a management strategy focused on prompt adaptation to the fast-changing market environment and customer satisfaction. Its market share also rose from 27.3% in 2002 to 32.1% in 2004, showing a 4.8% increase. Also continuous production improvement efforts resulted in a cost reduction by 3.5% in 2003 with the cost of 100 being the base in 2001 and the defect rate has drastically declined by more than 90% in 2003 compared to 2001. The first phase of the TGR launched in 1995 has been pushed with all staff participating to realize profit-focused management and Total Cost Reduction through eliminating invisible costs. In the second phase, Customer-oriented TCR (Total Creative Revolution) is now being under way. Those innovative management strategies brought the company cost reduction effects of 28.5 billion won in 2002 and 28.3 billion won in 2003. The innovative strategy of customer satisfaction management, under the mission of “Unlimited responsibilities for customers with innovative changes, focused on customer loyalty and satisfaction with Total CS in place. In coping with the changing environment, demanding fair and transparent business, AMOREPACIFIC declared the ethical management to further strengthen the trusting relations with customers and has made the necessary changes and improvement in management. Also, since 2000, with the banner of the “Digital Dream Company”, AMOREPACIFIC has focused on the digitalization of the infra system and the operational process. With the innovative enhancement of CSM, which integrates the processes and information in the areas including production and logistics, the operation has been working toward the optimization of the process through the established infra to transform the customer-oriented company with ERP (Enterprise Resource Planning) in full steam. Since its foundation in 1945, AMOREPAFICIC has been at the forefront of the beauty and health industry while putting priority on the “First” and “Best” based on quality and customer-oriented management. Based on the management philosophy of “Human service, human respect, and future creation “, AMOREPACIFIC has committed to customer satisfaction, fostering global leaders, the development of new products and ambitiously seeking to be the leader in the global market in all the areas including research, production, marketing, clients, cooperating firms, etc. It will lead the 21st century as a life culture corporation that creates beauty and health by continuing to repeat challenges until it has reached the standards of the global levels in all the areas.