The World Health Organization (WHO) has declared the COVID-19 (coronavirus) outbreak to be a pandemic. The entire world, including our company, is currently going through some very tough days. However, even in the face of this ongoing crisis, many companies are working to address the current challenges and further create new opportunities. The world is moving faster than ever before, and there really is now no turning back. To be specific, we are standing right at the point of inflection , which can bring about either success or decline. I believe that those who create and lead changes at this critical point will grow fast along the rising curve and that those dragging along behind will go down and eventually perish. We need to think deeply about what we must do at this very important point of inflection.

 First, we must revisit our budget . It is not just about spending less though. We need to parse the budget and work to find the best, most effective efficient ways of using our resources, and this involves exploring newly emerging profitable investment destinations with an innovative approach to direct our assets strategically, so we can truly transform ourselves and get ahead of constant changes that are happening in the world today. To this end, it is all the more important to stay flexible. We cannot just rely on what worked in the past. We need to step out of our comfort zone, be open and adapt to changes, cut down on the hidden costs and have the flexibility to take proactive actions. These are the things that we must do in this fast-paced world.

 Second, we must accelerate our digital transformation . As I mentioned earlier, the world is definitely changing, and there is no turning back. We must keep up with ever-evolving digital technology and trends, but not only for sales and marketing. Everything must go digital. Marketing C& C (Communication & Commerce) and omni-digital loop building are part of this effort. However, truly meaningful digital transformation requires the combined effort of all of our teams, including Research, Production, Logistics, Finance and PR. Without a doubt, making continuous small bets is another integral aspect of this joint effort . By constantly taking small steps, we can bring about big changes that will lead us to achieve digital transformation and thereby respond quickly and properly to the changing needs of the customers and the world. Do not merely talk about changes but, instead, act quickly now to lead these changes.

 We also need a new brand statement, which can begin by asking a few fundamental questions to ourselves. Do customers find our brands relevant and valuable? Does the world need our brands? Why do our brands exist? Are we indeed the indispensable part of the world? These questions will help newly establish the value of our brands, but more to this, the brands must keep making innovative products , which will support their values. In other words, rebranding requires marketing, R&D and sales efforts combined to establish the value of the brands, study and develop innovative products and provide the best quality products and services across all online and offline touchpoints where customers interact with the brands.

 What is needed most to effectively lead these changes though? Let's go back to the inflection point. Every business takes the same direction and eventually will reach the inflection point, but what happens after depends entirely on how the business copes with change. If a company can drive change, it will be able to follow along the rising curve, but if it is being driven by change, it will surely go down. The key here then is agility . It determines whether we can either get ahead of change or get dragged by change. Be agile in your actions. Test, and if something does not work, let go of it, but remember that you will still be able to learn much from it through trial and error.

 At Amorepacific, we have begun the effort to build a Lifelong Learning Organization and Lifelong Learning Culture , which will help all of you to grow throughout your life. I aim to provide support in every way possible, but there is another prerequisite: your self-driven efforts and passion for learning constantly. The company and I may be able to lead you to water. At the end of the day, you must lead yourself to drink. Please remember that what matters most is your choice to do so.

 These days, this is also the age of destruction and shrinkage. The cycle repeats: the established order is being shattered and as a result, the society is shrinking, then there arises yet another disruption. It is not only about society though. The same is happening with people, organizations, companies, and even countries. When destruction and shrinkage repeat, it creates a new space. The question then will be: what will fill this space?

 Now that we are at the critical inflection point, I'd like to prepare the 2030 vision for our next decade. As much as it is important for us to take care of today, and perhaps what's right around the corner, it is time that we look ahead to the next 10 years and get prepared. I want all of you to take an active part in shaping our next 10-year plan. We are on this great journey of making A More Beautiful World together and are making our customers happier through unique beauty that only we can create, for which I'd like to ask for your full commitment .

 Last but not least, your health is most important. Good personal hygiene will help us stay healthy. Thank you.

P.S. And a special thanks to our team managers for playing a pivotal role in this time of rapid change. The importance of your role in the company cannot be overemphasized. If the human body represents our company, you are the spine that connects each and every part of the company together and supports the entire structure. Thank you for your hard work and, as always, I will be rooting for you all!