322, Nonhyeon-ro, Gangnam-gu, Seoul, Korea (776-15, Yeoksam-dong)

www.hyungji.co.kr

FASHION

GLOBAL

RETAIL

FASHION &RETAIL COMPANY

Company Overview

Milestone&Outcomes

CEO Message

Management Philosophy

Vision & Mission l Management ethics

Corporate Identity

Business Domain

Core Competency

Business Network

Logistics System

Customer Relation Management

Corporate Culture

Brands

Crocodile Ladies / Chatelaine

Olivia Hassler / Ragello

Carries Note / Stefanel

Clamont / Castelbajac

Yezac / BON

BON g-floor / Elite

Wildroses / Northcape

Bauhaus / Fashion Lounge

Corporate Social Responsibility

Awards

CSR

Affiliates

06

08

10

11

12

13

16

17

18

19

22

23

24

25

26

27

28

29

32

34

36

CONTENTS

Company OverviewWe bring you happiness through Clothing

HyungjiDNA Strength Brands CSR

06 07

1982~1995Beginning

1996 ~ 2005 Take-off

Jul. 2005

Feb. 2005

Nov. 2004

Aug. 2003

2002

Sep. 1998

Mar. 1996

Established Shanghai Hanyoungjeyeojang Co., Ltd in China

Established Chatelaine Co., Ltd

Awarded the Iron Tower Order of Industrial Service Merit for the 18th Textile Day as an exemplary CEO

Transferred to a new office building in Poi-dong, Gang nam distirct

Took over the first office building ‘Miwoo building’ near Cheonggyecheon

Established Hyungji Apparel Co, Ltd.

Launched Crocodile Ladies

Growing up influential company in the ladies’ apparel market based on the success story ofCrocodile Ladies

1994 Established Hyungji Corporation 1982 Established Crown company

Beginning the clothing business in Dongdaemun, Seoul only with great zeal for fashion on the barren land

2012~PresentSecondary foundation

Leap into the comprehensive fashion and distribution company that is leading customer’s Llifestyles

Acquire EFC(Esquire)

Complete Yangsan Logistics Information Center

Received a prize of ‘Korea Brand Power Index Number One’ (five consecutive years)

Acquired ‘Stefanel’ Italian woman casual

Received ‘Grand Prize in the field of marketing Korea Management Award’ (four consecutive years)

Acquired domestic trade mark rights of French luxury brand ‘Castelbajac’

Men’s clothing ‘BON g-floor’ advanced into China market

Completed Busan Town of Fashion Group HYUNGJI

Acquired Asia trade mark rights of Wild Roses

Acquired ELITE BASIC co.Ltd(well known clothing company as School Uniform)

Acquired C&M VINA Co.,Ltd. in Vietnam

Acquired a women’s clothing brand, Carries note

Chairman Byung-Oh Choi awarded a prize for the Fair Trade Day supervised by the government

Acquired a premium shopping mall, ‘Bauhaus’

Byung-Oh Choi appointed as chairman of the committee for mid-sized companies in the Korea Chamber of Commerce & Industry

Launched the Northern European outdoor clothing ‘NorthCape’

Awarded The 44th CEO of the Year Award supervised by KMA

Acquired Men’s clothing company Woosung I&C Co., Ltd

Held a grand start-ups briefing session in remembrance of 30th anniversary

Apr. 2015

Mar. 2015

Nov. 2014

May 2014

Mar. 2014

Feb. 2014

Jan. 2014

Sep. 2013

Jul. 2013

Jun. 2013

Apr. 2013

Apr. 2013

Feb. 2013

Aug. 2012

Jun. 2012

Apr. 2012

Feb. 2012

Building the No. 1 women’s clothing business portfolio

2006~2011Leading period

Dec. 2011

Nov. 2010

Jan. 2010

Dec. 2009

Dec. 2009

Jul. 2009

Sep. 2008

Dec. 2007

Aug. 2007

Feb. 2006

CEO Choi, appointed as a president of the Korean Apparel Industry Association

Awarded the Silver Tower Order of Industrial Service Merit for the 24th Textile Day as an exemplary CEO

Launched Woman outdoor clothing ‘Wildroses’

Awarded the 16th Business Innovation Grand Award by Prime Minister

Changed company name to Fashion Group Hyungji Co., Ltd and declared CI

Transferred to a new office building in Yeoksam-dong,Gang nam district

Launched women’s casual clothing ‘Ragello’

Completed construction of Hyungji’s integrated logistics center in Hwaseong

Launched women’s clothing brand ‘Olivia Hassler’

Launched women’s clothing brand ‘Chatelaine’

We have always value new ideas and challenges, leading advancement of fashion industry.

The history of pioneering fashion industry

Milestone & Outcomes

Fashion Group Hyungji, constantly innovative and developing, is a genuine pioneer in the Korean fashion industry,

and has developed a potential market for customers in their 30s~50s women

to satisfy them.

Fashion Group HYUNGJI has grown rapidly and ranked sixth in its industry, turning over its sales 500 billion in 2008 since its foundation 10 years ago. HYUNGJI expanded its business area into men’s clothing, outdoor clothing, school uniforms, the distribution industry etc. through strategic M&A starting in 2012. HYUNGJI turned over its sales one trillion in 2013 enhancing its position as Korea’s representative fashion and distribution company.

History | Outcomes

(Unit: KRW 100 million, as Retail Price)

Growth trend in Sales/Distribution Channel per year.

Distribution Channel

Sales

80102

180892

3552,362

1,1035,787

7504,740

9805,122

1,3007,000

1,5387,300

10,0301,860

10,3001,900

20142013

08 09

CEO Message

We create fashion clothing that brings happiness

·‌‌Currently Chairperson of medium sized companies, The Korea Chamber of

Commerce & Industry·‌‌Currently President of Korean Apparel Industry Association·‌‌Currently Member of Creative Economy Special Committee, Federation of Korean

Industries·Currently Vice president of Korea Fashion Association·Currently Vice president of Korea Federation of Textile Industries·‌‌Currently Visiting professor at Graduate School of Business, Dankook

University(honorary doctorate)·Currently Specially appointed professor at Chung Ang University·‌‌‌Currently Adjunct professor at Graduate School of Business Administration,

Soongsil University

Fashion Group HYUNGJI runs a business that is contributing to increasing the happiness of

customers, members, store managers, subcontractors and shareholders; placing ‘happiness’ before

anything else.

HYUNGJI pushes ahead with continuous and stable growth, ensuring internal stability while

expanding its business areas through strategic M&A.

HYUNGJI advanced into the golf market by launching Castelbajac, French fine golf wear

‘Castelbajac’. HYUNGJI is pushing ahead by acquiring EFC (Esquire Fashion Company) with a

history of 55 years, to advance into the shoemaking and fashion accessories market.

HYUNGJI will come to life again as an enterprise leading its customer’s life styles by showing the

value of total fashion as well as fashion clothes to consumers, while raising its market power.

HYUNGJI established the ‘HYUNGJI Vision Center’, a downtown type training institute to cultivate

human resources of great originality through education and training this year. All HYUNGJI’s

employees, store managers, shop masters and sales persons receive systematic training.

“ An enterprise presenting happiness… to be a Distributor beyond Clothing retailer”

It is the fashion industry’s most important task to create a global fashion Korean wave based on an

economic domain which became wider through the Korea-China FTA and Korea-Vietnam FTA, with

the active support of the government for a creative industry.

I serve as the President of the Korean Apparel Association as well as the Chairperson for medium

sized companies, The Korea Chamber of Commerce & Industry. I have laid the foundation for the

expansion into overseas markets by actively participating in our economic mission since 2013.

We advanced into the Chinese market through BON g-floor men’s clothing in March of last year and

opened 10 shops in the central commercial district of metropolitan cities such as Suzhou, Shanghai

and Hangzhou in just one year.

HYUNGJI will strive to grow as the No. 1 comprehensive fashion and distribution enterprise that

is leading its customers’ happy lifestyle by maximizing strengths such as good quality and price

competitiveness, by using a large scale infrastructure though the market environment may not be

favorable.

“ A Global number one enterprise, beyond domestic number one”

Chairman, President & CEO

Choi, Byung Oh

10 11

Management Philosophy Vision & Mission I Management Ethics

“Unwavering confidence in our business, fashion for happiness”

We promise you that our efforts will release Korean people’s stresses about clothing altogether.

We are dreaming of customer’s happy life and fashion.

We are seeking enthusiastic Hyungji family who is willing to face any challenge.

We are building personal connections with modesty.

Ambitious dream towards

a 100-year company

Consideratiion

PassionHappiness

A quarter step ahead of others in my lifetimeWe will make efforts going a step forward with the aim of bringing happiness to the customers and the society.

Ethical Management

Fashion Group Hyungji maintains a transparent and upright business attitude in all contract relations to become a respectful company that creates a happy fashion culture. Every move Hyungji makes follows basic ethical standards.For the assurance of ethical standards, the Audit office operates “Ethical Sinmungo” which a person who has suffered from or witnessed any violent behavior can report it. When a report is accepted, the Audit office will conduct a thorough investigation of the reported subject and take necessary actions such as warning and/or punishment, so that the organizational culture of integrity can be rooted in Hyungji by preventing reoccurrence. It thoroughly ensures the secrecy of the reporter’s information and identification so it is not exposed in any circumstance.

How to report to “Ethical Sinmungo”Mail: Audit Office, 5F, Hyungji Bldg., 776-15, Yeoksam-dong, Gangnam-gu, Seoul, KoreaContactsTEL: 82-2-3498-7417, C.P : 82-10-5211-7426 E-Mail: ethic@hyungji.comWebsite: www.hyungji.co.kr

Hyungji’s Way

Professional enthusiasm Professionalism, objective consciousness,execution

Beautiful challenge Perseverance, courage and pioneering spirit

Creativity opening together Open mind, communication, synergy

Right growth Professional ethics, transparency and trust

Core Value

Enterprise creating a happy fashion culture based on a beautiful harmony between customers, members and partners

Mission

Vision

G3(Growth, Global, Great Company),

a fashion distributor and a lifestyle leader of all customers

The best workplace growing

steadily worldwide

GreatCompany

Growth

Global

Creativity opening together

Right growth Professional enthusiasm

Beautiful challenge

Core value

Mission

A enterprise creatinga fashion culture

Customers

Employees

Partners

12 13

Corporate Identity

BusinessPortfolio

About CI

In the CI, the alphabet ‘h’ repeated and naturally handwritten in the symbol is called ‘h flower’,

symbolizing happiness that Fashion Group Hyungji has always been presenting to the world.

The ‘h flower’ with a motif of the initial letter ‘h’ represents not only the management philosophy,

but also the ultimate goal to become the No. 1 fashion firm that takes the lead in the Korean

fashion industry and confidence in our vision towards leading global fashion group.

ColorThe color of CI consists of Hyungji Orange which embodies warm enthusiasm, happiness, and

uniqueness and Hyungji Blue Gray to express rational but elegant sense.

The meaning behind Company Name

The company name ‘Fashion Group Hyungji Co., Ltd.’ was announced when we declared

a new vision that Hyungji Apparel Co, Ltd. will advance toward general fashion company in

December 2009. Fashion Group Hyungji Co.,Ltd. encompasses strategic expansion plan to a

range of clothing and distribution channels including men’s wear and outdoor look from past

apparel company. It also includes business goal and long-term vision to penetrate more sectors

connected to fashion. Fashion Group Hyungji Co., Ltd. seeks to be No.1 global company as well

as in Korea that improves quality of live and distribute pleasure for your total lifestyle.

High QualityHybridHappinessHumanismHarmony

About CI

Hyungji Blue Gray

Hyungji Orange

Fashion group HYUNGJI has expanded its business portfolio through nine strategic M&A” since 2012. HYUNGJI acquired Woosung I&C (specializing in men’s clothing), ‘Carries Note’, career casual, and ‘Elite’ school uniforms to secure a new distribution base and customer base.

HYUNGJI acquired ‘Bauhaus’ premium shopping mall in 2013 to advance into the distribution industry and establish a vision of becoming a comprehensive fashion and distribution company. HYUNGJI is to build a second location of Bauhaus at Hadan, Busan in 2016. HYUNGJI plans to increase its locations of Bauhaus to up to 5 locations.

The ‘Fashion Group Hyungji Town’ that opened in Busan last year and the ‘Logistics Information Center’ that completed in Yangsan, Gyeongnam performs a role of a base to strengthen the business in the southern area and develop the logistics business in earnest.

HYUNGJI advanced into the golf market by launching ‘Castelbajac’, a French fine golf wear in March 2015. Castelbajac will get established as masstige golf wear, presenting young emotions and lifestyles with a powerful brand concept defined ‘art golf’, high quality materials and reasonable prices.

HYUNGJI is pushing ahead by acquiring EFC (Esquire Fashion Company), which is as well-known as ‘Esquire’, a shoemaking enterprise to enhance our status as a comprehensive fashion company. HYUNGJI plans to make continuous growth based on its wide business portfolio and by advancing into the fashion accessories market such as the shoes market and handbag market through acquisitions. HYUNGJI is advancing into global markets in an active manner. Above all, HYUNGJI advanced into Taiwan through ‘Chatelaine’ in 2013. ‘Bon g-floor’, a men’s clothing brand, is expanding its distribution network in metropolitan cities in China such as Shanghai and establishing a bridgehead for advancing into overseas markets.

Business Domain

Happy Flower means HappinessWe will take a leap toward No.1 in fashion and distribution to deliver happiness all over the world.

Castelbajac Trademark arguments

BON.g-floor, China

Agreement with EFC

Woman’s wear

Men’s wear

Outdoor wear

School uniform

Golf wear

Shoes & accessories

Retail business

Overseas business

1996 2005 2007 2008 2010 2012 2013 2014 2015

Fashion

Retail

Global

Crocodile Ladies Chatelaine Olivia Hassler Ragello Carries Note Stefanel

Yezac, BON,Bon g-floor

North CapeWild Roses

Elite

Castelbajac

EFC

FashionLounge

China

Bauhaus

Taiwan

HyungjiDNA Strength Brands CSR

Core Competency

Retail network and global sourcing infrastructureare the strongest factors of success.

Company Global Sourcing Partner

Overseas production plants

Overseas o�ces and shops

Domestic logistics center

대만 샤트렌 매장

양산물류정보센터

화성 통합물류센터

Hanyeongjeyeojang Co., Ltd.in Shanghai

BON g-�oor in Nanjing

PT ELITE Factory

C&M VINA Co., Ltd. in Vietnam

Chatelaine in Taiwan

Yangsan Logistics Information Center

Integrated Logistics Centerin Hwaseong

상해한영제여장유한공사상해 본지플로어 매장

PT ELITE 공장

베트남 씨앤엠 공장

Peru

Gaeseong

Bangladesh

Logistics information Centre in Yangsan

Yangsan Logistics Information Center, which opened in 2015, is built on a land area of 11,092㎡ with a 10-story main building (total usable area of 52,800㎡) and a 7-story annex (total usable area of 10,000㎡).

The building’s logistics facilities with state-of-the-art automation system can store up to 6 million pieces of clothing. The state-of-the-art unmanned automatic logistics machine can handle 350 million pieces of logistics per hour and 30,000 pieces of logistics per day on average. Yangsan Logistics Information Center will play a key role in growing the Group as a hub of Southern area project and boosting the logistics competitiveness through synergistic effects with existing Hwaseong Integrated Logistics Center.

In the annex, ‘Fashion Lounge,’ a fashion outlet, and restaurants including sushi restaurant are in operation, as well as office space of Hyungji Retail. On the 7th floor, ‘Zepeliche,’ a wedding convention, now offers spaces for various events including wedding ceremony and banquets. It could become a local landmark as a new amenity and cultural facility serving local residents.

1716

Business Network/Logistics System

Retail Network

Fashion Group Hyungji has constructed a strong distribution network

nation-wide.

Fashion Group Hyungji has been operating a strong distribution network

of 1,855 stores in total nation-wide. Exclusive stores account for 75% of

the total distribution network, and department stores and discount stores/

shopping malls follow with 17% and 8%, respectively (as of the end of 3,

2015).

State-of-the-art Logistics SystemOverseas Business

Woosung I&C participated in ‘CHIC’, Asia’s largest fashion exhibition

with ‘BON g-floor’ and ‘Yezac’ was held in Beijing, China in 2014 and

received a fervent response from local buyers and press. HYUNGJI

opened ten shops in the central commercial district of metropolitan

cities such as Shanghai and Hangzhou in one year, starting with the

opening of ‘BON g-floor’ in Taehwa Department Store, located in

Suzhou in May last year to establish a bridgehead for successfully

advancing into overseas markets.

‘Chatelaine’, women’s clothing, advanced into Kaohsiung, Taidong and

Taoyuan in Taiwan in 2013 and is running shops. We built an overseas

business division to leap into becoming a global brand. We are building

the capability to expand into Asian regions such as China and South-

East Asia.

Securement of stable foundation of production by operating own factory

Acquiring Vietnam C&M factory and Elite Basic factory in Indonesia and operating them, Fashion Group Hyungji has secured a stable foundation in production and promoted product quality and price competitiveness.

�■ C&M VINA Co., Ltd. in VietnamLocation: Thon Thanh Chung, Xa Phon Xuong, Huyen Yen The, Bac Giang,

Vietnam Size: Site 12,900㎡ No. of employees: 1,400

�■ PT ELITE Factory in IndonesiaLocation: Jin. Raya Serang KM. 19.2 RT. 11/02 Desa Sukanegara, Kec.

Cikupa, Kabupaten Tangerang Size: Site 82,500㎡ No. of employees: 1,300

Strong global sourcing infrastructure is able to improve company competitiveness.

Fashion Group Hyungji has built up trust and partnerships with competitive partners, and promoted product quality and price competitiveness by realizing cost reductions, including in the purchase of materials of good quality in off-season and massive purchases.We cooperate with more than 300 competitive partners, including domestic ones in GaeSung (Korea), as well as overseas ones in China, Vietnam, Indonesia, Bangladesh, Thailand, Myanmar, Japan, Taiwan, Italy, Peru, France and Turkey and others. Based on powerful global sourcing infrastructure, we make and provide products of high-quality and good design with reasonable prices.

Logistics Centre in Hwasung

The Integrated Logistics Centers of Fashion Group Hyungji are equipped with an automated systematic facility with a PDA-based WMS (Warehouse Management System). It allows quick distribution and wrapping, and is also an easily accessible place, increasing the efficiency and agility of logistics.

<Regional distribution network>

Seoul367 stores

Incheon80 stores

Chungnam91 stores

Jeonbuk 79 stores

Gyeonggi381 stores

Daejeon72 stores

Gwangju68 stores

Gangwon 71stores

Busan 140 stores

135 storesJeonnam63 stores

Daegu100 stores

Gyeonnam

Gyeonbuk 91 stores

Chungbuk66 stores

Ulsan32 stores

Jeju 19 stores

BON g-�oor Fashionshow in China

Agreement with Collins in Taiwan

18 19

12

10

8

6

4

2

0

Customer Relations Management

Corporate CultureCustomer Analysis Management

Corporate Culture

The ‘HYUNGJI Vision Center‘, overcoming recession by improving the competence of its employees and store managers.

We opened the ‘HYUNGJI Vision Center’, a downtown type training institute in 2015 to improve the competence of our employees and store managers. The ‘HYUNGJI Vision Center’ was established by the strong will of Byung-oh, Choi, a chairman who firmly believes that competent people serve as a springboard for continuous growth.

The ‘HYUNGJI Vision Center’ is expected to serve as a foundation for a win-win management where enterprise, stores and customers can grow together by getting established through the best education infrastructure, leading a successful inauguration of the enterprise of the fashion business and establishing the groundwork for the success of the stores by giving education on marketing know-how, successful cases of operation of stores and the best service to cope with the rapidly changing market environment.

Operation of programs for the the store’s ‘success’, employee’s, ‘innovation’, and the customer’s ‘happiness’

<Success academy>for improving management skills of stores : For store managers, shop masters and sales person • Education on goods such as fashion trends and materials• Education on improving sales skills and business ability • Education on improving service

<Innovation Academy>for improving the competence of employees• The internalization of our core values, deeply within our employees and

the modification of their mindsets toward change and innovation • Improving job competence • Education on leadership and followership, problem solving ability and a

unified organizational culture

<Happiness Academy>communicating with customers• Providing best customers opportunities through culture and exchange • Fashion culture in which the customers participate • Giving/sharing combination education, proposing a cultural life beyond

fashion

Operation of the AFH course

We have operated the AFH course for the first time in the fashion industry. The AFH course has produced 270 chief executive officers specializing in the operation of of stores since 2010. The AFH course has produced the actual outcome as a

win-win model between HYUNGJI and store managers and enhancing customer satisfaction, improving service quality, increasing the sales of agencies and enhancing management skills.Fashion Group HYUNGJI operates various and systematic programs such as a success premonition seminar (distributors), a sales skill-up course (sales person), a new businessman course and SM competence improvement (Shop Master) to improve service quality by giving regular education to distributors and employees of 1900 stores all over the country.

Through differentiated customer service, the member sales growth is sustainably managed

[ Composition of Member Sales by Year]

24%’12 VIP member sales

Premium Members 1%Excellent Members 16%Superior Members 7%

General Members 49%Non-members 27%

2012Member sales

29.9%’13 VIP member sales

Premium Members 0.9%Excellent Members 22.1%Superior Members 6.9%

General Members 51.5%Non-members 18.5%

2013Member sales

2014Member sales

27.4%’14 VIP member sales

Premium Members 1.2%Excellent Members 12.3%Superior Members 13.9%

General Members 55.6%Non-members 16.9%

To improve customer satisfaction through surveys and research data

• Top brand in Korea Brand Power Index (K-BPI)for 5 consecutive years

• The purchase amount of VVIP customers, the top 2%, represents more than 30% of all sales, which is identified through differentiated VIP customer management.

Source: KMAC 2013, 2014 K-BPI Survey

2014 K-BPI

358

469 475CrocodileB BrandA Brand

2013 K-BPI

432439

457CrocodileB BrandA Brand

• Grand Prize for ‘A Brand of Year by Customers’ selection’ for 11 consecutive years

Source: Korea Customer Forum 2014 Brand of the Year Survey

Online surveyQuestionnaire

B BrandA Brand C Brand Crocodile Ladies

Customer Relations Management (CRM), operated strategically through the integrated membership system and on-line mobile applications.

• We have 4,500 thousand members of women’s clothing through the systematic operation of CRM. We have the number one membership in women’s clothing

• Integrated membership system and on-line mobile applications enablethe managing of VIP relations and increase customer benefits.

• Brands by Fashion Group HyungJi are able to cover all age groups thatoffer customers to use the benefit within a long-lasting period.Furthermore, there are increasing usable places for benefits.

No. of memberships by Year

No. of members

Year 2004 2006 2009 2011 2014 2015

0.8million

0.9million

2.8million

3.6million

5.0million(goal)

4.5million

Hyungji Vision center Hyungji Vision center, Opening ceremony

for store managers

Successacademy

for employees

Innovationacademy

for customers

Happinessacademy

For the development of the course and operation for HYUNGJI Vision Center, we made an agreement with IGM, (Korea’s best school for inauguration of enterprises) and asked KMAC, a leader in on the job training to give useful advice.

HyungjiDNA Strength Brands CSR

BrandsWe make efforts to give differentiated value when meeting our brands

22 23

Brands

ChatelaineFrench style chic woman’s casual brand

Chatelaine originally means female owner of a castle in ancient France. This brand is known for sophisticated and trendy design that mainly targets women who seek unique and chic style.

Olivia HasslerContemporary and sensible casual brand for new thirty generation

It is launched to produce contemporary casual wear that is designed with an inspiration to make women look and feel trendy and sociable.

Crocodile Ladies Market share No.1 woman’s Casual brand

Since its inception in Singapore in 1947, Crocodile has been loved as a global fashion brand based on its long history. Crocodile Ladies was launched in Korea, first in the world, targeting women aged 30s-50s and has widely been known as the No.1 woman’s fashion brand which successfully created a blue ocean in the adult casual wear market. Especially it is designed with an emphasis on fitting for middle-aged women and providing various lines divided by concepts.

RagelloThe philosophy of ‘Ageless & Timeless’

Ragello operates under the concept ‘Ageless & Timeless’ which is answering all women’s wish to keep their beauty and youth regardless age and time

LaunchingModelConcept

DistributionProduct category

March, 1996 Jiwon HA Practical casual clothing with high quality and reasonable price Road side stores and Department stores Business, Croctive line

III

II

LaunchingModelConcept

DistributionProduct category

February, 2006 Joonhee KO French style casual look for women who want tolook chic and fashionable Road side stores and Department stores Business, Relux, Coqtive line

III

II

LaunchingModelConcept

DistributionProduct category

September, 2007 Jihye HANContemporary casual wear that pursues trendy and reasonable value Road side stores and Department stores Haute Casual, Casual, Pictour line

III

II

LaunchingConcept

Distribution

September, 2008 Women’s casual wear pursuing ageless & timeless beauty Road side stores

II

I

24 25

Brands

Carries Note Clamont CastelbajacStefanelHighly sensitive contemporary career wear Women’s casual wear available for home

shopping onlyFrench fine golf wearItalian, highly sensitive contemporary

women’s casual wearCarries Note, proposing easy coordination, satisfying grace and freedom at the same time pursuing luxury and a womanly image based on simple and chic, highly sensitive emotions.

Clamont aims for a natural French mood which is an individual and practical women’s casual wear.Clamont expresses a woman’s lifestyle, where classic and modern factors are kept in good harmony

A world-famous luxury brand created by ‘Jean-Charles De Castelbajac,’ a French designer, in 1968. Art Golf wear features a unique concept and creative design.

Stylish and contemporary Stefanel is genuine Italian knitwear with trendy emotions and wearable styling.

LaunchingModelConceptDistributionProduct category

March, 1998 Shiho YANOElegant and contemporary, highly sensitive career wearDepartment stores all over the country Contemporary casual line, formal dress line

II

II

LaunchingModelConcept

DistributionProduct category

1958Hilary RHODA Italian, highly sensitive contemporary women’s casual weardepartment stores all over the countryknit wear based on women’s total fashion

III

II

LaunchingConcept

DistributionProduct category

March, 2015 Art Golf that appeals to young sensibilities and lifestyles Road shops and department stores all over the countryOriginal, Life, Urban sports lines

II

II

LaunchingConceptDistribution

Product category

August, 2014Women’s casual wear, with a French mode of individuality and practicality Home shopping Women’s clothing

III

I

26 27

Brands

BONBritish Contemporary Men’s Clothing

BON, that developed the slim fit suit line for the first time in Korea has held a fashion collection for the first time as a ready-made suit showing original and creative stylings.BON is a representative contemporary character, men’s clothing line, which is leading in urban elegance and contemporary trends.

BON g-floorElegant and witty city look

BON g-floor that possesses an elegant and witty character, casual brand for young urban men, and proposes stylish and practical styles. BON g-floor expresses a smart fashion, reflecting the latest trends and culture for the younger generation, having much interest in cultural contents, architecture, art and cuisine.

YezacArtistic Style Dress shirts

As the only domestic men’s shirts brand in Korea, Yezac is seeking its own style and sense. Yezac is emphasis on the design to make men look classic and fashionable when doing business, which neoterically interprets the urban emotion based on modern and luxurious style and purity.

EliteKorea’s representative school uniform with 45-year-old history

Since the release of fabrics for school uniforms in 1969, Elite, a school uniform, has written a new history of the school uniform for 45 years, and established itself as a representative brand. With pride, we raise the dreams and hopes of students aged 13~18. We will continue the long tradition and history through the best quality and customer satisfaction.

LaunchingConceptDistribution

August, 1998 Delicate, stylish, artistic shirts Department stores

III

LaunchingConceptDistribution

August, 2004 Urban chic, trendy and stylish Suit Department stores

III

LaunchingConcept

Distribution

1969School uniform with high-quality and sensitivity to fashionRoad shops nationwide

II

I

LaunchingConceptDistribution

August 2010 Elegant and witty city look for young urban menRoad shops and Outlet

III

28 29

Brands

North CapeOriginal Northern European-inspired outdoor clothing

Inspired form Nord Kapp in Norway, known as the land of purity, Northcape is the original Northern Europe style outdoor clothing which connotes the frontier and adventurous spirit. Northcape has presented high quality fabric and design at an affordable price based on the extensive outsourcing infra of enterprise.

BauhausPremium shopping mall the whole family can enjoy 365 days of the year

Bauhaus is a 15-story complex shopping mall where all ages can enjoy around 180 brands, including young casual and SPA brands including clothes for children in their 10s~20s, children’s wear, styles for moms in their 30s~40s women’s casual, men’s wear, sports and outdoor wear, as well as a food court and Lotte cinema.

Fashion LoungeHappily good clothes in a good space

The ‘Fashion Lounge’ is a fashion outlet showing various clothing brands such as women’s clothing, men’s clothing, outdoor and convenient facilities in the same space that Fashion Group HYUNGJI develops under slogan the of 'Happily good clothes in a good space'

Wild RosesOutdoor for women

Wild Roses, the world’s first outdoor apparel for women that proposes a stylish outdoor type that is suitable for mountain climbing, yoga and leisure. Wild Roses leads in a new paradigm in the outdoor market with high quality color, a scientific sense of fitting that makes a woman’s body type look better and has highly functional goods.

LaunchingModelConceptDistributionProduct category

January, 2010 Joonhee KO Outdoor for womenRoad side stores and Department stores Dream line, 8000 line, Pulse line, Explore line

IIIII

LaunchingModelConceptDistributionProduct category

August, 2012Jiwon HA, Seojoon PARKOriginal Northern Europe style outdoor look Road side stores and Department stores Peary, Nord Kapp, Voyage line

IIIII

LaunchingConceptDistribution

November, 2014 Happily good clothes in a good space Road shops all over the country

III

LaunchingConcept

Distribution

August 2012Complex shopping mall available for fashion, eating-out and culture Jangan Branch, Busan Branch (scheduled)

II

I

HyungjiDNA Strength Brands CSR

CSRThrough continuous CSR activites, we will contribute

to spread happiness and harmony in the world.

32 33

The core value of Fashion Group Hyungji is customers’ happiness as a priority, and Fashion Group Hyungji has contributed to the fashion industry with innovative activity. Now, we, the Fashion Group Hyungji, will return back to the public and become an admired corporation beyond being a great corporation.

To be an admired corporation

Awards

Awarded Korea Design Grand Prize (Ministry of Knowledge Economy)

Recognized as Korea Premium Brand five consecutive years (Korean Standard Association, ~2012)

Certified Korea Excellent Service Quality seven consecutive years (Ministry of Knowledge and Economy, ~2013)

· Top in Korea Brand Power Index for Ranked first for five consecutive years (KMAC ~2015)

· Korea First Brand Grand Awards of Korean Customers for nine consecutive years(Korea Customer Forum)

Awarded 44th Management Grand Awards (Korea Management Association)

· Awarded the 12th Fair TradeDay(President’s award)

Awarded the Iron Tower Order of Industrial Service Merit by the government on the 18th Textile Day (President's award)

· Awarded Prime Minister Prize at the Corporate Innovation Grand Awards(Ministry of Planning and Finance)

· Acquired Environment ManagementSystem ISO14001

· Awarded Korea Distribution GrandAwards in Franchise three times(Ministry of Knowledge Economy, 2005, 2008, 2009)

Awarded the Korea Customer Satisfaction Grand Award for 5 consecutive years by the KMAC (Korea Management Association Consulting, ~ 2009)

Awarded the Silver Tower Order of Industrial Service Merit by the government on the 24th Textile Day (President’s award)

Top in Korea Standard Premium Brand Index (KS-PBI) four consecutive years(KSA, ~2013)

· Awarded Korea Management Grand Awards in Marketing,Overall ManagementGrand Prize four consecutive years

(KMAC, ~2014)

· Awarded Brand of the Year eleven consecutive years(Korea Customer Forum)

· 2014: good enterprise for Korean women to work for (GWP Korea, 2014)years(Korea Customer Forum)

20142013

34 35

Corporate Social Responsibility

� Representative CSR Activities

Subject I Women and children in low-income families

Project I ‘Wings of Women’ campaign for supporting the education of children from low income, female headed households, bazaar, emergency aid activities

Period I 2003 ~ current

Subject I African women and children

Project I Use as funds for establishing schools, supplying waterworks for schools, school supplies and raising teachers in African areas of poor educational facilities

Period I 2009 ~ current

Subject I All women

Project I Participate in the ‘Pink Ribbon campaign’ for improving breast cancer awareness, distribute the self-checkup cards for breast cancer in stores free of charge, and donate partial sales profits to the Korea Cancer AssociationPeriod I 2008 ~ current

• Campaign to actively express love through hugging in Korea, a country that needs healing

• Open HUG is a large moneybox provided to the public and HUG kits are available in 1,900stores

• Event of pictures showing the relaying of support for the HUG campaign• Sponsor a hug photo contest

HUG campaign

• Sponsor T-shirts for staff of ‘Hantol Sharing Festival’, a youth volunteer event through which hope kits are made and delivered to children around the globe

• Donated 50,000 pieces of clothing worth KRW 5 billion to areas devastated by the earthquake in Japan in 2011

• Donated KRW 0.7 and 1.5 billion worth of clothes to help North Korean people suffering from great floods in 2007 and 2012

• Purchased fair-trade ‘Chiapas’ coffee, promote a campaign in the in-house café

Sponsor ‘Hantol Sharing Festival’ and

other activities

• Established and donated ‘Choi, Byung Oh Hall’ in the Life Science College of Seoul National University (2010)

• Established and donated Chatelaine lecture room for the fostering of female talent to Sookmyung Women’s University (2007)

• Established the Fashion Trend Center in Jeonju University and supported scholarships for excellent students (2009)

• Established Choi, Byung Oh auditorium at Sooncheonhyang University and supported Honor’s Scholarship for fostering elite personnel (2007)

• Supported scholarship for fostering talent at Dankook University and established and donated the facility under ‘Choi, Byung Oh lecture hall’ (2011)

Donate Scholarship and University Development

Fund

• Hold ‘Bazaar of Love’ often for impoverished women and children and donate part of sales profits

Hold Charity Bazaar and Donate Profits

• The name of campaign stands for Wings of Women for supporting female heads from low-income bracket.

• The endowment is donated to female worker who bring up children and suffer from financial difficulties.

Wow Campaign

Happy flower shining the world warmly!The social responsibility by Fashion Group Hyungji takes a step forward as Korea’s brand and Korea’s corporate, practicing continuous sharing activities.

36 37

Affiliates Affiliates

Bauhaus, Busan branch (Completed 2016)

C&M Factories in Vietnam

Hyungji‌Global‌Fashion‌Complex‌Center

(Completed‌2018)

Shanghai Hanyoungjeyeojang Co., Ltd in China

Our affiliates that have long history and accumulated know how are the springboards for us to take a lead in the fashion market

Affiliates

Global Corporations and Local Offices

Shanghai Hanyoungjeyeojang Co., Ltd in China Foundation : July, 2005 Location : 3F NO5, SHENGWANG RD. MINHANG DISTRICT, SHANGHAI. CHINA

Vietnam office building (C&M Factories) Location : THON THANH CHUNG, XA PHON XUONG,HUYEN YEN THE, BAC GIANG, VIETNAM

PT ELITE Factory in IndonesiaLocation: Jin. Raya Serang KM. 19.2 RT. 11/02 Desa Sukanegara, Kec. Cikupa, Kabupaten Tangerang

Busan office building Foundation : January, 2014 (Completed soon)Location : 966-1, Goejeong-dong, Saha-gu, Busan, Korea

Hyungji Global Fashion Complex Center(Completed 2018)Location : Songdo international city, Incheon

Logistics center

Hwaseong Logistics CenterFoundation : 2007Location : 272-1, Jangan-ri, Jangan-myeon, Hwaseong-si, Gyeonggi-do, Korea

Yangsan Logistics Information CenterLocation : 1442-2~7, Seoksan-ri, Dong-myeon, Yangsan-si, Gyeongnam

Affiliates

Busan‌Town

FASHION GROUP HYUNGJI CO., LTD.

The corporation was renamed while pursuing the vision as a comprehensive fashion retailer in 2009, starting out as Hyungji Apparel. It has women's clothing brands such as Crocodile Lady and Olivia Hasler and other brands such as North Cape, and golf wear Castelbajac.

FOUNDATION : 1998 LOCATION : 322, Nonhyeon-ro, Gangnam-gu, Seoul, Korea (776-15, Yeoksam-dong)

CHATELAINE CO., LTD.

Chatelaine Co., Ltd. holds ‘Chatelaine’ and ‘Wildroses’. Chatelaine which was famed iconic and timeless lady’s clothing in the 90s , still continues its reputation as fashion advisor for modern women today.

FOUNDATION : February, 2005LOCATION : 322, Nonhyeon-ro, Gangnam-gu, Seoul, Korea (776-15, Yeoksam-dong)

HYUNGJI RETAIL CO., LTD.

Hyungji Retail Co., Ltd. is responsible for distribution of discount stores and construction & development projects such as operation of Yangsan Logistics information Center, belonging to Fashion Group Hyungji. Hyungji Retail Co., Ltd. is playing a pivotal role to deliver our visions as an exceptional fashion and distribution business with proactive efforts including establishment of a new office in Busan and a ‘Fashion Lounge’, fashion outlet

FOUNDATION : April, 1997LOCATION : 1442-2~7, Seoksan-ri, Dong-myeon, Yangsan-si, Gyeongnam

WOOSUNG I&C CO., LTD. (KOSDAQ REGISTERED)

Woosung I&C Co., Ltd is domestic men's wear company started ‘Si Dae Shirts’ in 1976. After it launched "Yezac" as the only domestic shirts brand for men, continuously opened Bon and BON g-floor. As a comprehensive fashion company, it is expanding its business scope as launching 'Carrie Notes' and 'stefanel', the women' wear.

FOUNDATION : 1976LOCATION : 322, Nonhyeon-ro, Gangnam-gu, Seoul, Korea (797-21, Yeoksam-dong)

BAUHAUS CO., LTD.

Bauhaus is a large-scale premium fashion outlet, accommodating from B1 to 15F, a multi-complex for shopping, leisure, and culture that offers a range of products and cultural services for all going beyond age and gender.

FOUNDATION : 2005LOCATION : 368-1, Jangan-dong, Dongdaemun-gu, Seoul, Korea

ELITEBASIC INC. (KOSPI CORPORATION)

ELITEBASIC INC. was established in 2002 by Cheil Industry, separated from Samsung Group in 1996, and listed on the Korea Exchange in 2009. As the No. 1 domestic company in the school uniform market, Elitebasic has been leading the domestic school uniform market for 45 years.

FOUNDATION : 2002 LOCATION : 535-55, G asan-dong, Geumcheon-gu, Seoul, Korea

Headquarter | Main Building322, Nonhyeon-ro, Gangnam-gu, Seoul, Korea (776-15, Yeoksam-dong)

Crocodile Ladies T 82-2-3498-7200

Chatelaine T 82-2-3498-7777

Olivia Hassler T 82-2-3498-5000

Headquarter | New Building322, Nonhyeon-ro, Gangnam-gu, Seoul, Korea (797-21, Yeoksam-dong)

Wild Roses T 82-2-3498-7708

North Cape T 82-2-3498-8251

Castelbajac T 82-2-3498-0403

Yezac T 82-2-2107-6522

Bon T 82-2-2107-6582

Bon g-floor T 82-2-2107-6534

Carries note T 82-2-2107-6703

Stefanel T 82-2-2107-6743

322, Nonhyeon-ro, Gangnam-gu, Seoul, Korea (776-15, Yeoksam-dong)

www.hyungji.co.kr

FASHION

GLOBAL

RETAIL