[Material Topic 2] Safety and Health

HL D&I Halla Management Approach

  • Safety and health is the construction industry’s highest-priority value, protecting the lives of employees and subcontractor workers while safeguarding business sustainability. Based on safety and health governance centered on the Chief Safety Officer (CSO), HL D&I Halla operates a company-wide safety and health management system that includes site-centered risk assessments, proactive accident prevention systems utilizing smart safety technologies, and real-time safety communication channels. The Company embeds safety-centered processes throughout the entire project lifecycle, from planning and design to construction and maintenance, fundamentally preventing potential risk factors. Going forward, HL D&I Halla will continue to conduct thorough safety assessments and promote a voluntary safety culture, fulfilling its responsibility to create workplaces where everyone can work with confidence under the principle of “Safety without Compromise.”

Financial Materiality

R1

The government’s comprehensive occupational safety measures and stronger penalties under the Serious Accidents Punishment Act may substantially expand the scope of criminal liability. In the event of an accident, this may result in criminal liability for management, restrictions on order intake, and increased costs arising from construction delays caused by work suspension.

O1

Institutional incentives for companies with outstanding safety and health performance, including reductions in industrial accident insurance premiums, and growing safety management expectations from ordering parties and stakeholders may reduce operating costs through lower industrial accident insurance premiums and improve corporate creditworthiness based on a low accident rate.

Impact Materiality

N1

Identification of safety risks in advance through systems such as the Smart Risk Assessment System and the expansion of a preventive safety culture contribute to improving worksite safety and protecting the right to life.

P1

Inadequate safety management for high-risk work, including work at height and elevated work, may result in worker injuries or fatalities and increase social costs, including industrial accident insurance payments.

1) R: Risk / O: Opportunity / N: Negative Impact / P: Positive Impact

Governance

Safety and Health Management Leadership

HL D&I Halla has established a systematic governance framework centered on the Board of Directors and the CEO to enhance the execution of company-wide safety and health management. As the highest decision-making bodies for safety and health, the Board of Directors and the CEO oversee the entire process, from the establishment and implementation of safety and health plans to performance evaluation and improvement. Based on management’s strong commitment, they lead efforts to create a safe working environment. In 2026, the Board of Directors approved the 2026 Safety and Health Plan and reinforced the company-wide safety strategy, clearly demonstrating its leadership commitment to treating safety as the highest priority in management.

At the working level, the Safety and Health Team, a dedicated organization under the Chief Safety Officer (CSO), serves as the control tower. The Safety and Health Team is responsible for planning company-wide safety and health activities, employee training, worksite inspections, and operational support, while continuously advancing the management system. In addition, each business site appoints a person responsible for overall safety and health management and safety and health managers in accordance with Articles 17, 18, and 62 of the Occupational Safety and Health Act. By faithfully performing their statutory duties, they closely manage on-site risks and strengthen practical response capabilities for regulatory compliance and accident prevention. In particular, in 2026, the Company established a Serious Accident Response Task Force within its inspection function to further strengthen its serious accident response capabilities. The Task Force focuses on proactive prevention activities that detect and eliminate potential risk factors before an accident occurs, going beyond post-accident response measures. Through these efforts, HL D&I Halla will enhance the effectiveness of its on-site response to risk factors and closely control company-wide safety and health risks, thereby achieving substantive progress toward accident-free worksites.

Safety and Health Management Organization

Safety and Health Advisory Committee

HL D&I Halla comprehensively reviews its safety and health status through the quarterly operation of the Safety and Health Advisory Committee. Chaired by the CEO and composed of representatives from relevant departments, the Committee shares safety and health performance and future response measures. It conducts in-depth analyses of major safety and health management agenda items¹) and promptly decides on necessary measures through deliberation and resolution procedures. The Committee’s decisions are immediately communicated to the relevant departments and directly applied at worksites, connecting the Committee’s activities to substantive decision-making and implementation beyond the simple sharing of information. Major agenda items discussed by the Committee are also subject to oversight and feedback from top management through regular reports to the Board of Directors.

* Accident occurrence status and recurrence prevention measures, operating performance of the Risk Report Center, inspection results and corrective measures of external organizations, etc.

Safety and Health Advisory Committee

Major Agenda Items of the Safety and Health Advisory Committee in 2025

Quarter Major Agenda Items
First Quarter
  • Operating performance of the Risk Report Center
  • Status of orders received from external organizations
  • Results of the discussion session held at the 2024 Serious Accident Prevention Resolution Meeting attended by management, including feedback from employees
  • Increase in foreign workers and multilingual training plans
  • 2025 Safety and Health Plan
Second Quarter
  • Status of special management activities for accident prevention
  • Guidance on amendments to relevant laws and regulations
Third Quarter
  • Production and introduction of video content for safety and health training
  • Safety and health activities in preparation for heatwaves
  • Safety and health activities aimed at achieving Serious Accident OUT
Fourth Quarter
  • Status of new safety manager recruitment
  • Direction for the 2026 safety and health slogan
  • Pilot operation of the Risk Report Center for foreign workers
  • Status of special management activities for accident prevention
  • Operating performance of the Safety and Health News Board
  • Performance of Baro Baro Messages
  • Renewal of work safety procedures
  • Other reported matters

Response Strategy

Safety and Health Management System and Policy

HL D&I Halla became the first company in the Korean construction industry to obtain ISO 45001 certification and has proactively established an advanced safety and health management system that meets global standards. The Company aims to establish a sustainable safety and health management system encompassing not only employees and subcontractors, but also stakeholders throughout the value chain, including shareholders, customers, and local communities. In 2026, HL D&I Halla established “Providing a Safe Working Environment through Thorough Compliance with Fundamentals and Principles” as its management policy and systematically operates medium- to long-term safety and health strategies and detailed implementation plans based on this policy. In particular, the Company continues to improve its systems and introduce best practices based on safety and health strategies established with the approval of the Board of Directors and other highest decision-making bodies. HL D&I Halla also transparently discloses the status of its safety and health management system certifications and its Quality, Environment and Safety Policy through its website and Sustainability Report, thereby strengthening stakeholder trust.

Safety and Health Promotion Framework

To achieve its core 2026 objective of “Zero Serious Accidents” and maximize the execution of safety and health activities at worksites, HL D&I Halla established five strategic focus areas under the theme of BASIC. Each strategy encompasses the establishment of a safety and health culture grounded in fundamentals, principles, and smart technology-based intelligent management, providing a foundation for HL D&I Halla’s differentiated safety and health management activities.

2026 Safety and Health Goals and Strategies

HL D&I Halla has established a long-term vision for 2028 of realizing sustainable safety and health management that achieves zero serious accidents through proactive responses and technological innovation. To achieve this vision, the Company has established and is implementing three key action tasks. The Company aims to maximize autonomous safety and health management capabilities at worksites and enhance the effectiveness of safety and health management by establishing a smart technology-based prevention system.

Major Worksite Safety and Health Risks and Impacts

[Risk] Stronger penalties and the practical expansion of the scope of principal contractor liability under the government’s comprehensive occupational safety measures and the Serious Accidents Punishment Act

Time Horizon Short-term Likelihood Very High
Magnitude of Impact High Financial Impact Scope of Impact Upstream and Business Model
Financial Impact In the event of an accident, management may face criminal liability, while restrictions on order intake and worksite suspensions may delay construction and increase costs. Under the Comprehensive Occupational Safety Measures announced on September 15, 2025, sanctions were strengthened to include a fine of up to 5% of operating profit for corporations where at least three fatalities occur annually and the addition of “multiple annual fatalities” as a condition for requesting business suspension. In addition, where a company that has received two business suspension orders within the previous three years causes another accident arising from the same cause, its registration may be revoked, resulting in cancellation of its license.
Implications The construction industry is continuously exposed to safety and health risks such as falls and accidents involving heavy equipment and therefore has a high likelihood of workplace accidents. As government regulations become stricter and management liability expands, safety and health management has become a core management priority involving legal and financial risks, requiring the advancement of a prevention-centered management system.  
2025 Management Activities and Performance In response to the strengthening of the Serious Accidents Punishment Act, HL D&I Halla strictly operates weekly regular inspections led by the CEO and a three-stage subcontractor evaluation system. All 1,261 subcontractors subject to evaluation in 2025 received an “Appropriate” rating. In addition, through headquarters-led inspections of risk assessment implementation, the Company fundamentally prevents worksite risks and fully fulfills the principal contractor’s safety management responsibilities and legal obligations.

[Positive Impact] Identification of safety risks in advance and expansion of a preventive safety culture through systems such as the Smart Risk Assessment System

Time Horizon Medium-term Likelihood High
Magnitude of Impact High Social and Environmental Impact Scope of Impact Upstream and Business Model
Financial Impact From a social benefit perspective, a serious accident imposes various costs on individuals, including reduced net income, lower quality of life, and lost time. The government may also experience net losses due to reduced returns on the Industrial Accident Compensation Insurance Fund and administrative costs associated with accident investigations. Accordingly, preventing serious accidents can prevent losses to external economic actors, including individuals and the government, and contribute to improving benefits across society.
Implications Identifying safety risks in advance and expanding a preventive culture through the Smart Risk Assessment System can structurally reduce the likelihood of serious accidents and lower social costs incurred by individuals, companies, and the government. In particular, a digital risk management system is a key means of establishing an autonomous, worksite-centered safety management culture and is expected to improve both corporate safety performance and sustainability over the medium to long term.
2025 Management Activities and Performance HL D&I Halla advanced toolbox meetings based on the Smart Risk Assessment System, establishing a preventive culture in which workers proactively identify risk factors. In 2025, the Company reduced the number of major hazard observations by 44.9% year on year through the use of visualized training materials and close communication at worksites. Through this system-centered management approach, HL D&I Halla is standardizing com

Distribution of Standard Work Safety Procedures

HL D&I Halla newly established and distributed standardized work safety procedures for major high-risk work activities at construction sites. Through these procedures, the Company proactively prevents potential risks from the pre-work stage and strengthens the foundation for systematic safety and health management. The procedures standardize safety and health management standards that may otherwise differ among individual worksites, thereby establishing a consistent company-wide safety and health management system. They also ensure that work planning and inspections are conducted based on the same standards, with the aim of embedding a unified safety and health culture. The work safety procedures set out the purpose of each procedure, work processes, clear work standards, and compliance requirements so that on-site personnel can immediately identify and respond to risk factors. Based on these procedures, HL D&I Halla plans to establish phased management standards and safety and health measures for each type of work and strengthen the autonomous safety and health management capabilities of subcontractors.

Status of Work Safety Procedures

Lifting and Aerial Work Equipment
Mobile crane
Aerial work vehicle (sky lift)
Table lift
Gondola
Forklift
Earthwork and Foundation Equipment
Excavator
Dump truck·Scraper
Breaker
Temporary Structures and Scaffolding
System formwork assembly
System shoring assembly
Formwork assembly
Formwork stripping
External rope-operated suspended platform
Use of ladders
Site Access and Asset Management
Temporary container installation
electrical wiring
Risk of fire
Management of Hazardous and Harmful Substances
Hazardous and Harmful Substances
Hazardous Material Storage Facility
Steel Structures and Large Temporary Structures
Gang Form Lifting
Concrete Pump Trucks

Serious Accident Prevention Practice Resolution Meeting

HL D&I Halla regularly operates the Serious Accident Prevention Practice Resolution Meeting to communicate management’s firm commitment to safety and health and encourage voluntary safety practices among all employees. In 2025, the Company held a total of 433 resolution meetings encompassing the head office and all worksites under the slogan “Safety and Health, Everyone’s Practice, Now Becomes Capability.” Through these meetings, HL D&I Halla reinforced the internal stability of its safety and health management system. Beyond simply making resolutions, the meetings serve as a practical communication channel for strengthening on-site execution. In particular, management directly listens to the opinions of workers at construction sites and operates a systematic feedback management process to promptly incorporate those opinions into company-wide safety and health activities, thereby strengthening stakeholder trust. The Company also shares the results of the monthly Today’s Check Point program to ensure that outstanding safety and health practices from individual worksites are disseminated horizontally across all worksites. Through action-oriented programs—including the recitation of the Serious Accident Prevention Practice Resolution by employees, awards for exemplary workers, and joint inspections of high-risk work areas—HL D&I Halla will continue to establish a safety and health culture in which all workers can work with confidence and strengthen execution toward its Zero Serious Accidents goal.

Serious Accident Prevention Practice Resolution Meeting

433 Total Number of Meetings
60 Number of Meetings
Attended by Management*

* CEO, CSO, COO, Head of Architecture Business Division, and Head of Infrastructure Business Division

Outstanding Practice

100-day Resolution for Zero Serious Accidents

To maintain an accident-free record through year-end and achieve zero serious accidents, HL D&I Halla launched the “Serious Accident OUT – Achieving 122 Days” campaign on September 1, 2025. The campaign was implemented over the remaining 122 days of the year to concentrate company-wide safety and health capabilities on fundamentally preventing serious accidents and building strong consensus on uncompromising safety practices, from management to on-site workers. In particular, the Company focused on strengthening the responsible safety management of supervisors and raising workers’ safety and health awareness to promote a culture of voluntary safety and health compliance. Through this company-wide participatory campaign, HL D&I Halla reinforced the execution of its safety and health objectives and will continue to make every effort to create a safe working environment in which all stakeholders can have confidence.

TEN! TEN! Safety Campaign

HL D&I Halla operates the worksite-centered, action-oriented TEN! TEN! Safety Campaign to create a pleasant and safe working environment. The campaign is a prevention-centered safety culture initiative in which all workers voluntarily participate to closely manage risk factors before and after work and improve compliance with fundamental safety rules at worksites. Under the slogan “Remove Risk Factors for 10 Minutes Before Work and Conduct 10 Minutes of Housekeeping After Work,” workers intensively inspect fall and electric shock hazards and the condition of equipment within the relevant work area for 10 minutes before starting work, thereby proactively preventing accidents. For 10 minutes after work is completed, workers conduct systematic housekeeping to secure the safety of the subsequent process. Each subcontractor also recommends and rewards workers who demonstrate outstanding performance in TEN! TEN! activities. These initiatives go beyond simple housekeeping and serve as an opportunity for workers to internalize autonomous safety management capabilities by identifying and improving risk factors themselves. Through the company-wide expansion of the TEN! TEN! Safety Campaign, HL D&I Halla will minimize potential on-site risks and establish an action-oriented safety management system that enables all workers to internalize safety.

Implementation of the TEN! TEN! Safety Campaign

Installation and promotion of TEN! TEN! campaign signage

Recognition of workers with outstanding TEN! TEN! Performance

Regional Joint Management Councils

HL D&I Halla regularly operates Regional Joint Management Councils to establish an organic communication system between the head office and worksites and closely manage on-site safety and health conditions. Each council is attended by the regional leader and working-level personnel from the head office Safety and Health Team. Participants share outstanding and non-compliant cases identified through worksite inspections and conduct practical discussions to improve safety awareness from multiple perspectives, including facilities, culture, and training. To ensure the effectiveness of the councils, personnel who fail to attend are required to submit a statement of explanation, and attendance is systematically managed. In 2025, the Company implemented differentiated activities reflecting the characteristics of each region. In April, at the council for Seoul metropolitan region 2, each worksite presented recurrence prevention measures based on actual disaster and near-miss cases, strengthening practical response capabilities. In September, at the council for Seoul metropolitan region 1, the Company invited the editor-in-chief of Korea International Construction and Industrial Safety Expo to provide the latest safety trends to worksite personnel. At the final council held at year-end, the head office Safety and Health Team and regional leaders reviewed the year’s performance and shared the 2026 direction based on HL D&I Halla’s unique BASIC safety management strategy, reinforcing the execution of company-wide safety strategies. Going forward, the Company will activate closer feedback loops between the head office and worksites, bridge the gap between strategy and practice, and complete an advanced, worksite-centered safety and health management system.

Regional Joint Management Councils

Promoting the Health of On-site Workers

Occupational Disease Prevention Programs

HL D&I Halla considers workers’ health and lives to be its highest management priority and systematically conducts regular work environment measurements and health examinations in cooperation with specialized medical institutions. In particular, the Company operates customized health programs reflecting the characteristics of each worksite, thereby establishing a robust foundation for worker health management. To prevent hearing and respiratory diseases, safety and health signs are installed in areas where noise and dust are generated, and personal protective equipment is made readily available to create an environment in which workers can voluntarily wear protective equipment. To prevent musculoskeletal disorders, the Company identifies risk factors in advance through hazardous factor assessments when introducing new processes and provides training on appropriate posture and work methods suited to each task when workers perform physically demanding work. Work in confined spaces, where the risk of serious accidents is high, is classified as high-risk work and is subject to a strict Pre-work Permit System. In addition, special safety training and gas concentration measurement training are mandatory, and regular emergency drills are conducted to strengthen worksites’ emergency response capabilities. In 2025, HL D&I Halla expanded participation in its health prevention programs, further improving the effectiveness of health management activities. Going forward, the Company will continue to advance its prevention-centered health management system to create healthy worksites where all personnel can work with confidence.

Performance of Health Programs for On-site Workers

Health Management Activities during Extreme Heat and Severe Cold

HL D&I Halla establishes and operates proactive health management measures to protect workers from seasonal health hazards, including heatwaves and cold waves caused by climate change. During summer heatwaves, each worksite records the perceived temperature and the implementation status of mandatory health measures in real time through the Smart Risk Assessment Platform. This enables an integrated monitoring system that organically connects the head office and worksites. Through this system, the Company continuously manages seasonal risks such as heat-related illnesses caused by high-temperature exposure and immediately implements response measures based on weather conditions, thereby protecting workers’ safety and right to health without interruption.

Summer

Install rest facilities and shaded areas

Install cooling equipment,
including portable air conditioners and fans

Provide cool water, including water purifiers, bottled water, ion beverages, and ice machines

Provide cooling supplies, including ice vests and fan-equipped vests

Measure and communicate perceived temperatures

Comply with rest periods by providing breaks every hour

Comply with rest periods by providing breaks every hour

Winter

Install rest facilities

Install heating equipment, including fan heaters

Operate food trucks and other events

Provide cold-weather supplies, including hot packs and insulated vests

Management of Elderly Workers

To prevent safety risks associated with the aging of the on-site workforce, HL D&I Halla implements health guidelines tailored to elderly workers. The Company closely reviews each worker’s basic health status from the recruitment stage. Following assignment to a worksite, it conducts regular health monitoring, including weekly blood pressure and blood glucose measurements, to manage underlying conditions and signs of health abnormalities. In particular, the Company has institutionalized the submission and review of daily management plans that carefully examine workers’ condition each morning before work. When abnormal symptoms are identified, an immediate response system is activated, including work adjustments and the provision of rest. From an operational perspective, HL D&I Halla expands rest periods and flexibly operates working hours to reduce the physical burden on elderly workers. The Company also strictly complies with the principle of excluding elderly workers from high-risk work and requiring work in teams of two, thereby preventing workers from working alone and strengthening mutual protection at worksites. Going forward, HL D&I Halla will continue to improve company-wide safety capabilities by establishing an inclusive and safe work environment suited to an aging society.

Work Prohibited for Elderly Workers

Work at locations with a risk of falling from a height of at least 2 meters

Work involving ladders

Transportation or arrangement of heavy objects

Work in areas with a risk of suffocation

Work on inclined surfaces or slippery areas with a risk of falling

Work involving prolonged exposure to extreme heat or cold

High-risk work, including equipment guidance and signal duties

Health Management for Elderly Workers

Safety and Health Training

HL D&I Halla operates customized training programs optimized for worksite characteristics, going beyond legally required training, to strengthen the professional safety and health capabilities of all personnel. In particular, the Company conducts workshops and Mind-Set Training for safety and health managers and supervisors in the first and second halves of each year, thereby cultivating execution-oriented safety and health leadership. In the first half of 2025, the Company held a practice-focused workshop covering worksite activity plans and the prevention of musculoskeletal disorders. The workshop recorded a high satisfaction score of 4.72. In the second half, HL D&I Halla promoted knowledge sharing among worksites through presentations on safety psychology and outstanding practices, achieving a satisfaction score of 4.59 and confirming the effectiveness of the training. The Company also provides first aid and cardiopulmonary resuscitation training for on-site supervisors to strengthen immediate initial response capabilities in emergencies and reinforces role-based training for supervisors to raise company-wide safety and health awareness. In addition to regular safety and health programs, HL D&I Halla makes digital training content covering actual worksite accident types and response methods available at all times through internal channels, enabling workers to learn independently without time or location constraints. Going forward, the Company will continue to provide customized training based on worksite characteristics and regularly update content with a focus on practical applicability, thereby accelerating the internalization of a company-wide safety and health culture.

Safety and Health Training Programs

Training Date Training Program Key Content Participants Performance Training Satisfaction
February 6–7, 2025 2025 First-half Safety and Health Manager Workshop
  • Direction for safety and health inspections in 2025
  • Presentation of worksite-specific safety and health activity plans
  • Health and work environment management for the prevention of musculoskeletal disorders
  • Causes of and preventive measures for collapse accidents
  • Discussion with the CEO
  • Safety and health activities from the perspective of a site manager
Safety and Health Managers 108 4.72
April 25 and 28, 2025 2025 Safety and Health Mind-Set Training
  • Role of supervisors
  • First aid and cardiopulmonary resuscitation
Supervisors 103 4.42
September 24, 2025 2025 Second-half Safety and Health Manager Workshop
  • HL D&I Halla’s response measures reflecting government policy directions
  • Review of preventive health inspections in 2025 and revisions to worksite evaluation criteria
  • Revisions to the Safety and Health Team’s operating guidelines
  • Discussion with the CEO
  • Safety psychology
  • Communication Session: presentation of outstanding worksite practices
Safety and Health Managers 100 4.59

Safety and Health Training Programs

(Unit: persons)
Category 2023 2024 2025
Participants in the Safety and Health Manager Workshop 194 226 208
Employees Who Completed E-learning Training1) 776 536 673
Participants in Safety and Health Training for Subcontractor Safety and Health Managers 91 97 137
Participants in Safety and Health Mindset Training2) 128 102 103

1) E-learning Training for All Employees: Provided to supervisors.

2) Safety and Health Mindset Training: Conducted for site managers, construction/public affairs team leaders in 2023; safety and health management executives, public affairs personnel, and management team leaders in 2024; and supervisors in 2025.

Emergency Response Drills

HL D&I Halla conducts regular emergency response drills to prepare for various disaster scenarios that may occur at construction sites and to review and improve the effectiveness of its initial response system. In the first and second halves of 2025, the Company conducted customized emergency response drills at 37 worksites nationwide, reflecting the specific characteristics of each site. Each worksite independently selected high-risk factors that were likely to occur under its operating conditions and developed realistic disaster scenarios for the drills. The drills focused on ensuring a prompt and accurate initial response upon the occurrence of a hazard. They were conducted by reviewing the appropriateness of initial response manuals and assessing each participant’s ability to perform the duties assigned through individual role cards. Through these exercises, workers and supervisors strengthened their ability to respond appropriately from their respective positions to various disaster scenarios, including falls, collapses, and fires, thereby enhancing their practical response capabilities in actual emergencies.

Emergency Response Drill Status

Architecture

Infrastructure

Emergency Response Drills

Safety and Health Training for Subcontractor Site Managers

HL D&I Halla recognizes that strengthening the safety and health capabilities of subcontractors, as well as its own employees, is essential to creating a safe working environment. On September 29, 2025, the Company provided company-wide safety and health training to a total of 137 subcontractor site managers, thereby raising and standardizing safety management standards across the supply chain. The training focused on aligning subcontractors’ worksite management practices by sharing the direction of government policies and HL D&I Halla’s corresponding response measures. Practice-oriented content, including the use of the Smart Risk Assessment System and the prevention and management of occupational stress, was also provided to strengthen the safety management capabilities of worksite leaders. In particular, hands-on training in cardiopulmonary resuscitation and first aid, intended to maximize initial response capabilities in the event of an actual accident, received the highest levels of interest and satisfaction from participants and helped build confidence in practical emergency response. The analysis of the training results showed that most respondents were highly satisfied with the training content and facilities. The CPR course in particular received overwhelmingly positive evaluations, demonstrating the effectiveness of practice-oriented training. HL D&I Halla actively reflected feedback collected after the training and plans to further strengthen practice-oriented courses covering areas such as fall prevention and electrical safety in 2026.

Safety and Health Training for Subcontractor Site Managers

Satisfaction Survey Results by Training Course

Government Policy Response

Occupational Stress

Smart Risk Assessment

Cardiopulmonary Resuscitation

Safety Training for CEOs of Subcontractors

HL D&I Halla conducted safety and health training and a discussion session for its top management and the CEOs of major subcontractors to strengthen subcontractors’ safety and health management capabilities and respond promptly to changes in government safety policies. The Company shared the latest legislative and regulatory developments, including the Serious Accidents Punishment Act, and discussed practical challenges and response measures faced at worksites through a CEO discussion session, thereby reinforcing its integrated safety management system. The program received positive feedback for providing practical support in establishing the direction of subcontractors’ worksite management. HL D&I Halla plans to formalize this initiative and work with its partners to continue exploring ways to realize the value of safe worksites.

Training Content for CEOs of Subcontractors

Training Objectives
  • Enhance understanding of changes in government policy directions and laws and regulations to strengthen on-site response capabilities
  • Strengthen HL D&I Halla’s safety and health response capabilities and those of subcontractors in accordance with government policy directions
Participants HL D&I Halla’s CEO and CSO and executives of major subcontractors, Total: 35 participants
Training Content Introduction to Government Policies Related to Safety
  • Strengthened restrictions on the employment of foreign workers by companies where serious accidents have occurred
  • Expanded central government inspections and supervision of high-risk worksites
  • Improvement of subcontracting structures, including prevention of illegal subcontracting
Understanding Government Policy Directions and Changes in Laws and Regulations
  • Fundamental principles and concepts of safety and health
  • Top management’s commitment and the importance of measures at senior levels
  • Status of serious accidents
  • Definitions and key statutory provisions of the Serious Accidents Punishment Act
HL D&I Halla’s Safety and Health Response Direction in Line with Government Policies
  • Major accidents and cases in 2025
  • Response direction in accordance with government policies
  • Other matters for communication
Discussion Session between the CEO and CEOs of Subcontractors
  • Current conditions in the construction industry
  • Roles and responsibilities of the government, construction companies, and on-site workers
  • Challenges facing the construction industry, including stronger sanctions and restrictive policies

Safety Training for CEOs of Subcontractors

Risk Management

Regular Risk Assessment

Management of On-site Risk Factors

HL D&I Halla conducts preventive health and safety inspections led by its headquarters inspection function to eliminate potential risk factors in advance and maintain facility safety. These inspections are conducted at least once every six months and focus on site-centered risk-factor analysis and the identification of proactive improvement measures. In particular, the Company thoroughly verifies compliance with obligations under safety and health-related laws and regulations and immediately corrects any deficiencies, thereby ensuring company-wide legal compliance. To enhance the objectivity and execution of inspections, HL D&I Halla also conducts a headquarters-led Risk Assessment Implementation Inspection at least once every six months. Worksites assessed as having insufficient safety and health management standards are designated for special inspection and placed under intensive management. Major findings are promptly corrected, while outstanding practices are shared across the Company to reduce gaps in worksite safety management capabilities and standardize safety standards throughout the organization. Through these corrective actions, the number of findings related to risk factors decreased by 44.9% in 2025 compared with 2024, demonstrating substantive risk reduction performance. The Company also operates a rigorous equipment management process to prevent serious accidents caused by the deterioration of and defects in large construction equipment, including cranes, lifts, and pile drivers. Precision safety inspections by external professional institutions are mandatory when equipment is initially brought onto a worksite. Regular inspections are then continuously performed in accordance with internal guidelines to identify and immediately correct potential defects at an early stage, thereby fundamentally eliminating equipment-related risk factors.

Safety Inspection Performance

Category Unit 2023 2024 2025
Number of Worksites Subject to Inspection Worksites 39 38 38
Number of Worksite Safety Inspections Inspections 169 140 113
Number of Construction Equipment Inspections Inspections 1,593 657 612
Preventive Health and Safety Inspections

Major Best Practices

Prevention of Pinching Accidents

Outstanding installation of protruding reinforcing bar caps

Prevention of Slip and Fall Accidents

Securing worker access routes


Prevention of Accidents Involving Foreign Workers

Installation of underground-floor evacuation routes and signage for foreign workers

Prevention of Falling Accidents

Securing worker access routes for boarding and alighting from slabs and beam formwork

Fire Prevention

Installation of fire-extinguishing patches inside electrical outlets in temporary site offices

Results of Preventive Health and Safety Inspections in 2025

Outstanding Practice

CEO Special Inspections

Since 2025, HL D&I Halla has established CEO-led Special Worksite Inspections as a core company-wide management system to communicate management’s firm commitment to safety and health at worksites and thoroughly fulfill management’s obligations under the Serious Accidents Punishment Act. Under the principle of closely reviewing all worksites, the CEO directly conducts focused inspections of major high-risk sites, supporting the effective communication of the CEO’s safety and health philosophy to operational worksites. In October, CEO Hong Suk-hwa visited the Daeyul–Jeungpyeong IC Road Widening and Paving Project, where work was being performed simultaneously across multiple locations, to closely inspect the installation of safety facilities and compliance with work procedures. Through real-time communication and quality responses involving relevant personnel at the worksite, the inspection reaffirmed the importance of safety and health management and served as an opportunity to reinforce safety awareness among employees. The results of the weekly special inspections and required improvements are rapidly shared company-wide through operational coordination meetings. This serves as a key driver for establishing an autonomous safety and health culture led directly by management. Going forward, HL D&I Halla will continue to advance its ongoing worksite inspection system and make every effort to achieve accident-free worksites.

Continuous Risk Assessment

Smart Risk Assessment

HL D&I Halla operates a mobile-based Smart Risk Assessment System to identify hazardous and risk factors at worksites in advance and establish mitigation measures. Following pilot operation in 2023, the Company expanded the system company-wide in 2024. It digitally manages the entire process, from identifying risk factors and implementing corrective measures to establishing recurrence prevention measures. By digitalizing the existing paper-based administrative process, the Company standardized its operational procedures. Site supervisors and workers can use a dedicated mobile application to register and share potential worksite risk factors and near-miss cases in real time. For identified factors rated as medium risk or higher, the responsible manager’s implementation of corrective action is continuously tracked within the system, ensuring that the results of risk assessments are linked to substantive on-site measures. In addition, during daily Toolbox Meetings (TBMs), the results of the day’s risk assessment and relevant safety precautions are communicated to workers, preventing information gaps at worksites. To enhance training effectiveness during TBMs, the Company deploys and uses daily risk assessment training materials at worksites. HL D&I Halla regularly monitors changes in risk levels before and after mitigation measures to analyze the effectiveness of risk assessments. Going forward, the Company will accumulate relevant data, analyze high-risk patterns by work type, and use the findings in proactive accident prevention activities.

Smart Risk Assessment Dashboard

TBM Training

Operation of the Risk Report Center

HL D&I Halla operates the Risk Report Center, which is open to all workers, to identify potential hazards at worksites at an early stage and respond proactively. The system operates under the principle of “Immediate Corrective Action upon Receipt” to ensure the substantive elimination of risks. Each worksite reports the results of corrective measures to the head office within one week, where implementation is verified. The Company also rewards all workers who report risks, thereby encouraging their voluntary participation in safety management. The head office systematically manages the appropriateness of follow-up actions through company-wide monitoring. In response to the growing proportion of foreign workers at worksites, HL D&I Halla improved its existing Korean-centered reporting system and introduced support in six languages: English, Chinese, Vietnamese, Thai, Russian, and Khmer. Through this initiative, the Company is eliminating safety blind spots caused by language barriers and safeguarding every worker’s right to have their safety and health concerns heard. In 2025, a total of 71 hazardous situations were reported. Following review, corrective action was completed for all cases requiring improvement. Going forward, HL D&I Halla will continue to create an effective risk-reporting environment and strengthen a safety management system in which all worksite personnel can participate.

Risk Report Center Operating Process

Step 1

Identify a Risk Factor

Step 2

Submit a Report to the Risk Report Center

Step 3

Receive and Verify the Report

Step 4

Resolve the Risk Factor

Risk Report Center

Major Reports Received and Corrective Actions

Report Details Number of Reports Corrective Action

Request for Additional Safety Guardrails on the Short Side of the Tower Crane

옹벽 터파기 단부 안전난간 추가설치 요청
17

Installation of Additional Safety Guardrails on the Short Side of the Tower Crane Completed

터파기 단부 안전난간대 추가설치 완료

Risk of Falling due to Materials Left on the Access Route at the Top of the Slab

슬라브 상부 이동통로상 자재적치로 인해 넘어짐 위험
10

Materials on the Access Route at the Top of the Slab Cleared

슬라브 상부 이동통로상 넘어짐 위험 자재 정리

Risk of Electric Shock due to Incomplete Grounding of a High-pressure Water Pump

고압 살수기 접지 미실시로 감전 위험
6

Grounding of the High-pressure Water Pump Completed

고압 살수기 접지 완료

Risk of Falling due to Incomplete Installation of Stairway Toe Boards

기계실 계단 발판 미고정으로 넘어짐 위험
6

Stairway Access Route Secured

계단실 이동통로 확보 완료

Safety Accident Response System

HL D&I Halla operates a company-wide accident response system to prevent the spread of damage and facilitate prompt recovery in the event of an accident. From the moment an accident is identified, the Company follows a phased reporting procedure. In the event of a serious accident, an emergency reporting system is activated, under which the dedicated Safety and Health Department immediately reports the incident to management. General accidents are also registered through the online system within one hour of their occurrence or recognition, ensuring the timeliness of the initial response and the transparency of information sharing. When an accident occurs, the on-site safety and health manager and the dedicated head office team jointly investigate the incident, analyze the root cause from multiple perspectives, and immediately implement corrective and response measures in accordance with established procedures. Following the completion of the investigation, the Company develops recurrence prevention measures based on the analysis of causes by accident type. Relevant cases are promptly shared across all worksites to minimize the possibility of similar accidents. HL D&I Halla will continue to review and improve this worksite-centered response process to further advance its company-wide safety management capabilities.

Safety Accident Response Process

Subcontractor Safety and Health Evaluation

HL D&I Halla conducts regular annual safety and health evaluations of subcontractors to create safe construction sites and promote shared growth with its subcontractors. The Company operates a three-stage evaluation system covering the entire process from bidding and contracting to registration and post-management. Subcontractors that fail to meet safety and health standards are provided with capability-building consulting, giving them an opportunity to make voluntary improvements. When non-compliance continues, HL D&I Halla proactively prevents company-wide safety risks through stringent measures, including cancellation of registration or restrictions on bidding.

Subcontractor Safety and Health Evaluation Process

Step 1

Bidding Stage

  • Conduct written evaluations of subcontractors
  • Diagnose safety and health capabilities
  • Evaluate the safety and health management plan for each project
Step 2

Contract Stage

  • Conduct on-site due diligence of qualified subcontractors
    (Verification of safety and health standards)
Step 3

Evaluation Stage

  • Conduct semiannual evaluations
  • Operate the Subcontractor Disciplinary Action Committee
Step 4

Operational Stage

  • Provide consulting through professional institutions
  • Support the enhancement of subcontractors’ safety and health capabilities
Inspection of Compliance with the Serious Accidents Punishment Act

In accordance with Article 4, Paragraph 9 of the Enforcement Decree of the Serious Accidents Punishment Act, HL D&I Halla strictly operates a management process to protect the safety and health of workers when contracting, outsourcing, or entrusting work. In line with statutory requirements, the Company has designated the following as key management items: assessment of subcontractors’ capabilities and technical competence in preventing industrial accidents, calculation of an appropriate construction period, and compliance with appropriate safety and health management cost standards and related procedures. HL D&I Halla thoroughly reviews compliance with these requirements. In June and December 2025, the Company conducted comprehensive evaluations of all contracts signed during the relevant periods. All 1,261 contracts subject to inspection received an “Appropriate” rating, thereby confirming the reliability of the supply chain’s safety and health management capabilities.

Targets and Metrics

Mid- to Long-term Safety Management Goals

HL D&I Halla has established a long-term vision for 2028 of achieving “Zero Serious Accidents.” To realize this vision, the Company has developed and is implementing a medium- to long-term roadmap centered on the mortality rate and general injury rate as its key indicators.

Category Unit 2025 Performance Short-term Target (2026) Medium-term Target (2027) Long-term Target (2028)
Mortality Rate 0.67 0 0 0
General Injury Rate1) % 0.77 0.6 0.54 0.48

1) General Injury Rate = Number of workers injured in occupational accidents requiring at least four days of medical treatment, excluding commuting accidents and occupational diseases / Number of full-time workers × 100

Safety and Health Investment

In response to strengthened social requirements, including the introduction of the safety and health disclosure system, HL D&I Halla transparently discloses the allocation and execution status of its safety and health budget. During the reporting period, the Company discloses substantive safety and health investments, including investments in equipment and expenses for education and training aimed at advancing its safety and health management system. It also closely manages potential financial impacts, including costs associated with legal proceedings related to industrial accidents. Going forward, HL D&I Halla will continue to strategically expand its safety and health budget to ensure robust safety and health practices at worksites. At the same time, the Company will minimize the effects of safety and health risks on its financial value through thorough regulatory compliance and establish a sustainable management environment.

Item Details Unit 2025 Performance 2026 Target
Investment in Strengthening the Safety and Health System Labor Costs for Safety and Health Managers KRW million 17,299 15,337
Safety and Health Facility Expenses 10,003 6,159
Safety Protective Equipment Expenses 2,302 2,187
Safety and Health Assessment Expenses 1,106 926
Safety and Health Training Expenses 522 636
Risk Monitoring Expenses, including Risk Assessments 303 386
Costs of Legal Proceedings Related to Industrial Accidents Safety and Health-related Fines 16.2 -1)

1) No separate target has been established for safety and health-related fines, as they are managed under the principle of preventing their occurrence.