Supply Chain
Governance
Strategy
Risk Management
Metrics and Targets
Decision-Making and Implementation
Management Level
Studio Dragon has established a systematic supply chain management foundation by ensuring that management, including the CEO, reviews and approves its supply chain management strategy and policy and monitors mid-to long-term objectives. The company also manages ESG risks across the supply chain through cross-departmental collaboration. The Corporate Audit Team receives and manages reports of human rights violations and safety issues related to business partners through the CJ Group Hotline System. The Production Administration Team checks and responds to on-site risks based on communication with business partners. The Human Resource Management Team monitors human rights risks within the supply chain. The Safety Management Team operates safety management processes at production sites and conducts advance assessments of business partners’ safety standards. The Legal Affairs & Compliance Team reviews legal and ethical risks that may arise during the contracting phase and provides advisory support.
Studio Dragon Supply Chain Management Organization Chart
Supply Chain Risks and Opportunities
During content production, if production companies, outsourced companies, and business partners fail to adequately manage ethical, human rights, and environmental standards, ESG risks may spread across the entire supply chain. Unfair contracts or failing to establish adequate systems for mutual growth cooperation can also lead to partner attrition. This can lead to content production delays, additional costs, and failure to secure premium content IP, resulting in reduced potential revenue-generating opportunities. Conversely, fair and transparent partnerships with creators and outsourced production companies can activate the creative ecosystem and enhance content quality. This creates a virtuous cycle of securing premium content IP and strengthening content competitiveness, which contributes to Studio Dragon's sustainable growth and long-term value creation.
Supply Chain ESG Management Principles
Practical Guidelines for Sustainable Content Production Sites
Studio Dragon has established and applied the ‘Practical Guidelines for Sustainable Content Production Sites’ since 2023 to build a sustainable supply chain. The guidelines comprise eight topic-specific modules covering safety standards compliance, prohibition of sexual harassment, mutual respect, and reporting and responding to misconduct procedures. The guidelines are included in every single script, and producers encourage ESG practices on set by reading the guidelines before production begins. Studio Dragon outlines potential misconduct that may occur on production sites and provides preventive behavioral principles for each topic. Consultation and reporting channels also include contact information for personnel in charge of labor affairs, legal affairs, and safety management. Alongside distributing these guidelines, Studio Dragon systematically incorporates ESG factors into selecting and evaluating business partners, and proactively identifies ESG risks among business partners in advance through regular monitoring, driving continuous improvement.
Key Content of Practical Guidelines for Sustainable Content Production Sites
01. Mutual Respect | 05. Child/Youth Actors |
02. Prohibition of Sexual Harassment | 06. Confidentiality |
03. Safety | 07. Community/Environment/Animal Protection |
04. Prohibition of Illegal Filming | 08. Reporting and Responding to Misconduct |
CJ Global Supply Chain Ethics Policy
Studio Dragon complies with CJ Group's ‘Global Supply Chain Ethics Policy’ and systematically manages ethics, human rights, and environmental standards across its supply chain. This policy applies to all business partners, and the company manages transactions with business partners to ensure that relevant standards are upheld. Studio Dragon also proactively identifies and transparently manages potential risks, such as human rights violations and unethical conduct within the supply chain, by operating named and anonymous reporting channels, including ‘CJ Alert Line’ and an external reporting platform (K-Whistle). When policy violations are identified, the company maintains supply chain integrity through measures such as requesting corrective action, restricting transactions, or terminating contracts.
CJ Global Supply Chain Ethics Policy Framework
Category | Key Items |
|---|---|
Ethics | Conflicts of interest, anti-corruption, gifts, courtesies and entertainment, fair competition, information security, international trade sanctions and import/export controls |
Labor and Human Rights | Working environment, elimination of forced labor and human trafficking, child labor and minor workers, employment discrimination |
Health and Safety | Workplace safety, quality and safety |
Environment | Environmental regulatory compliance, environmental pollution minimization, resource efficiency, energy use and GHG emissions management |
Business Partner Code of Conduct
Studio Dragon has established and operates its own ‘Business Partner Code of Conduct’, reflecting CJ Group's supply chain policies. The code is structured around core ESG elements—ethics, human rights, and environment—and requires business partners to comply with domestic and international laws and standards throughout all business operations. Upon contract execution, Studio Dragon requires business partners to submit a signed commitment to the ‘Partner Code of Conduct’ and monitors compliance during contract performance. When violations are identified, the company requires corrective and remedial measures to ensure ongoing partner compliance.
Partner Code of Conduct Framework
Category | Key Requirements |
|---|---|
Ethical Business Practices | Complying with all relevant domestic and international laws and regulations regarding business integrity, financial transparency, and fair competition |
Human Rights and Labor | Protecting workers' human rights and dignity in accordance with domestic and international standards |
Health and Safety | Providing a safe working environment and continuously improving health and safety standards in the workplace |
Environmental Protection | Minimizing negative impacts on the environment and local communities, and complying with environmental laws and regulations |
Respecting Labor Rights in Production Environments
Studio Dragon has established and applied standards for production hours, break times, and related working conditions across production sites since 2020. The company has taken a leading role in improving the scripted series production environment, including by complying with Ministry of Culture, Sports and Tourism’s ‘Standard Contract for the Broadcasting Sector’. In addition, the company has introduced and operates ‘Standard Subcontract Contract’ for business partners that supply background actors, to strengthen human rights protection by improving the employment structure for background actors.
Supply Chain ESG Support Programs
Studio Dragon recognizes supply chain ESG management as a core competitive advantage and builds a sustainable supply chain by operating a range of support programs to strengthen its supply chain ESG capabilities.
Program for Enhancing Supply Chain ESG Capabilities | Studio Dragon supports the professional development of creators with whom it maintains partnerships, and operates creator education programs to strengthen the overall competitiveness of the content production ecosystem. The company also provides safety inspection programs and safety training to enhance its supply chain ESG capabilities.
Business Partner ESG Support Programs Operation
Category | Details |
|---|---|
Training | Holding Safety Planning Meeting with Business Partners and Providing Regulatory Safety Training |
Enhanced Communication | Holding Safety and Health Council Meetings |
Business Partner ESG Support Programs Performance
Category | Support Amount | Calculation Basis |
|---|---|---|
Creator Education | KRW 35 million | Calculating the actual cost of providing education, including ‘Writer's Day’ operations |
Safety Training Support | KRW 4.22 million | Safety inspection and training hours × average employee hourly wage |
Total | KRW 39.22 million | Creator education costs + safety training support costs |
Supply Chain ESG Risk Management
Studio Dragon systematically manages business partners’ ESG risks related to human rights protection, safety management, and ethical business practices. The company operates regular communication and management processes with business partners to manage these risks. Each year, Studio Dragon listens to business partners’ concerns and grievances, reviews the ESG management and assessment processes of its supply chain, and develops preventive measures when potential risks are identified. The company supports strengthening business partners’ risk prevention capabilities through training and other initiatives. During production site inspections, Studio Dragon forms councils together with business partners to listen to on-site feedback and reflect it in its supply chain management, driving continuous improvement.
Supply Chain Safety and Health Risk Management
Studio Dragon implements a systematic safety management system across the entire production process, from pre-production through completion, to manage safety and health throughout the supply chain. The Safety Management Team minimizes the risk of safety incidents within the supply chain by supporting, managing, and overseeing on-site safety management actively performed by production business partners. At project initiation, Studio Dragon verifies that production business partners have submitted safety management plans, completed required statutory training for safety management personnel, and completed initial risk assessments. Studio Dragon then conducts two rounds of safety inspections to assess business partners' safety management performance and ensure safety throughout the production process.
Supply Chain Safety and Health Risk Management Framework
Supply Chain ESG Assessment
Studio Dragon's scripted series production is operated based on the participation of various business partners across constructing art sets, setting up lighting, installing props, and operating on-site. In particular, considering the characteristics of scripted series production sites, where the installation and dismantling of temporary structures occur frequently, Studio Dragon operates a process to evaluate and select safety-qualified partners. An evaluation team comprising the project's Chief Producer, the assigned Producer, and the Safety Management Team assesses business partners against five key criteria and selects those with the required level of capability.
Evaluation Criteria of Studio Dragon Business Partner | 1. Project Risk Factors and Management Measures 2. Safety Training Plan (Safety Officers, Set Workers, All Staff) 3. Maintenance and Operation of Emergency Contact Network and Fire Response Organization 4. Safety Personnel Response Capability 5. Appropriateness of Safety and Health Management Cost Execution Plan | ||||
|---|---|---|---|---|---|
Evaluation Procedure of Studio Dragon Business Partner | Reviewing the Work Plan | → | Collecting and Analyzing Data | → | Selecting business partners and preparing a Pledge Document |
|---|---|---|---|---|---|
↓ | |||||
Evaluating Safety-Qualified Business Partners | ← | Submitting a Safety Management Plan | ← | Establishing a Safety Management Cost Execution Plan |
Handling Business Partner Grievances
Studio Dragon regularly convenes Safety and Health Council meetings and receives and addresses grievances from business partners through the ‘CJ Group Hotline System’ to manage business partners’ ESG risks related to human rights protection, safety management, and ethical business practices. In accordance with CJ Group's reporting policy, Studio Dragon applies a whistleblower protection policy, a prohibition on retaliatory action against whistleblowers, and a whistleblower reward policy. Through ongoing engagement with business partners, the company strengthens collaborative partnership frameworks and expands its management systems that incorporate ethical, human rights, and environmental standards across the supply chain.
Metrics and Targets
Studio Dragon manages ESG risks across its business partners and manages and monitors various metrics—including the number of grievances received from business partners and transaction status of business partners—to strengthen sustained partnership and mutually beneficial cooperation through ongoing partnerships.
Category | Unit | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
Number of Partner Companies | Count | 130 | 196 | 308 | |
Safety Training | Completion Rate of Mandatory Safety Training at Business Partners : Managers | % | 88 | 95 | 100 |
Completion Rate of Mandatory Safety Training at Business Partners : Supervisors | % | 82 | 95 | 100 | |
Handling Grievance | Number of Grievances Received from Business Partners1) | Case | 2 | 0 | 0 |
Business Partners Grievance Resolution Rate2) | % | 100 | - | - | |
1) Of the 2 cases in 2023, 1 case was a human rights-related grievance
2) Where no grievance cases were received, indicated as '–' (not applicable)