Extraordinary General Meeting of Shareholders Reference Material

July 5, 2022

Contents

01. CEO Message

02. Notice of Convocation of the Extraordinary General Meeting of Shareholders

03. Agenda

04. Governance

1. CEO Message

Dear shareholders,

Despite challenging operating conditions, Kumho Petrochemical ("Kumho or "the Group") managed to achieve sound results in the first quarter, demonstrated through constant growth in revenue recording KRW 2.2 trillion in the period. Nevertheless, the global economic uncertainty led to a decline in earnings, resulting in operating profit of KRW 449 billion. The uncertainty around the economic outlook is anticipated to increase further, as evidenced by several economic indicators, amid soaring commodity prices due to inflation and ongoing global supply and demand pressures. In order to get through this unprecedented challenging time, the Board will continue to focus on the execution of the 'Mid/Long-term Growth Strategy for Sustainable Business Management' announced in March and the pre-emptive investment to secure future growth engines.

We would like to draw shareholders' attention to the upcoming Extraordinary General Meeting ("EGM") which will be held on July 21, 2022. The purpose of this EGM is to appoint new directors to replace directors who have recently resigned or will be resigning at this EGM. In response to these director departures, the Board reviewed the current composition of skills and experiences of the remaining Board members as part of the Board renewal and recruitment process. When searching for new directors, the Board's focus was to ensure that incoming directors had the right skills and experience to complement the existing board members with an emphasis on discovering new growth engines with large-scale investment and effectively responding to global economic uncertainty. We believe the three outstanding candidates will further enhance the Board's experience and capabilities and ultimately contribute significantly to long-term shareholder values.

Jun Kyung Park served as a Managing Director & Director of Synthetic Resin Overseas Sales division for the past ten years and was promoted to Senior Executive Vice President in 2021. He contributed significantly to profit improvements in core business areas resulting in record profits in 2021 by flexibly responding to market changes. He led the restructuring of the product portfolio of the synthetic resin business and increased the proportion of high-value/environment-friendly products in synthetic rubber and specialty chemical business. We are at a time when global demand is unstable and large-scale investment is required. The Board believes that the insights and experiences of Mr. Park, who achieved outstanding results as the head of the division, would bring significant value in promoting future management strategies including key growth decisions.

Tae Kyun Kwon is an international trade expert who served as an officer at the Asian Development Bank, the head of the Trade and Investment Office of the Ministry of Knowledge Economy, and the head of the Public Procurement Service. Knowledge and

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1. CEO Message

experience in international trade are essential in the petrochemical industry and its importance has become more pivotal than ever with rising trade disputes across the globe. The Board expects his knowledge and expertise will play an essential role in monitoring risks related to international trade.

Jee Yoon Lee is an environmental expert with a Ph.D. in Environmental Management and has worked in the field for over thirty years. As a successor of the recently resigned director, Park Soon-ae, will focus on the establishment and execution of the Group's environmental strategy. The Board expects that her knowledge will significantly contribute to renewable energy conversion as well as energy efficiency plans for the solar power generation business. Further, she will be able to apply her experience in the Ministry of Environment to adequately respond to complex and fast-changing environmental regulations and generate opportunities in this area.

The Board is always aware that sound governance is key to the sustainability of the Group. We continue to evolve our governance practices to meet the expectations of stakeholders and maintain independent judgment and the ability to act in the best interests of both our shareholders and the Group as a whole. The three new candidates will make significant contributions to creating a more effective Board and we continue to focus on enhancing long-term shareholder values.

We look forward to your participation at the meeting and thank you for your continued strong support and trust.

Sincerely,

July 2022

On behalf of Kumho Petrochemical's Board of Directors

CEO, Kumho Petrochemical

Jong Hoon Baek

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2.NoticeofConvocationoftheExtraordinaryGeneralMeetingofShareholders

  1. Date and Time: July 21, 2022 (Thursday) 09:00
  2. Place: Grand Auditorium, 4F, East Bldg. of Signature Towers,100,Cheonggyecheon- ro, Jung-gu, Seoul
  3. Purpose of Meeting
  1. Reporting: Audit report
  2. Agendas:

Agenda No. 1: Election of Directors

o Agenda no. 1-1: Election of Jun Kyung Park as an Executive Director

  1. Agenda no. 1-2 : Election of Two Independent Directors
    • Agenda no. 1-2-1: Election of Tae Kyun Kwon as an Independent Director
    • Agenda no. 1-2-2 : Election of Jee Yoon Lee as an Independent Director

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Kumho Petro Chemical Co. Ltd. published this content on 05 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 July 2022 07:22:05 UTC.