Sustainability Foundations
Strategy
Framework
Risk Management
Stakeholder Engagement
Sustainability Management Mission
Studio Dragon is a Global Leading Studio creating Mega IPs that captivate audiences worldwide through K-Originality. The company is committed to embedding ESG values throughout its entire content production process to realize sustainable growth and expand its social impact simultaneously.
Mission | Global Leading Studio Creating Sustainable Value Through Content | |
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Goal | Environmental | ① Continuous management of Scope 1, 2 GHG emissions |
Social | ① Advancing DE&I values through content | |
Governance | ① Establishing regular ESG reporting and Board-level decision-making processes ② Enhancing Board of Directors evaluation systems and expanding disclosure (including executive and | |
Decision-Making and Implementation Framework
Studio Dragon established its sustainability management governance framework in 2022 to achieve sustainability objectives, manage performance, and address sustainability-related risks, and has continued to operate the framework since then. The Sustainability Management Committee, a committee under the Board of Directors, serves as the highest decision-making body for Studio Dragon's sustainability management. It is responsible for deliberating and approving sustainability management strategy frameworks and policies. The dedicated sustainability management organization and the Working Group implement these strategies and actively promote sustainability management activities linked to business operations.
Studio Dragon has developed and is executing a sustainability management strategy tailored to the company while aligning with CJ Group's sustainability strategy. The Sustainability Management Committee systematically manages and reviews ESG objectives, strategies, and issues through regular meetings. As a sustainable content company, Studio Dragon will continue to strengthen its ESG framework to support business operations grounded in ESG principles.
2025 Sustainable Management Framework Operations
Category | Sustainability Management Committee | Sustainability Management Council | Working Group |
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Composition | 3 members comprising executives and independent directors | Departments participating in CJ Group Council including HR, Finance and others | 10 departments including HR, Finance, and Strategy |
Operation Cycle | (At least once per quarter) | As needed | As needed |
Responsibilities | Review and approval of sustainability management strategy, systems, and policies, among others | Participation in and discussion of major CJ Group councils including the Social Contribution, Human Rights Management, and ESG Council | Implementation of sustainability management strategy, identification and improvement of initiatives, and issue sharing, among others |
2025 Key Activities |
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*As of December 31, 2025
Sustainable Management Framework Organization Chart
* As of December 31, 2025
Integrated Risk Management
Studio Dragon operates in a rapidly changing business environment characterized by the rapid growth of the global streaming market, the expansion of market driven by the growing global prominence of Korean scripted series and the entry of new market players, as well as domestic and global economic fluctuations and a contraction in the television advertising market. While these industry dynamics create new growth opportunities, they also present risks related to earnings volatility and intensifying competition. In response, Studio Dragon has established a systematic enterprise-wide risk management framework to strengthen its capacity for proactive response. Throughout the risk management process, the Board of Directors, management, and employees identify, assess, and prioritize risks in accordance with their respective roles and responsibilities, engage in in-depth discussion at each stage, and manage key business risks through an integrated approach.
Integrated Risk Management Framework
Board of Directorsㅣ The Board of Directors serves as the Company's highest decision-making body, overseeing management's execution of business operations and the management of key risks. Studio Dragon has established a Sustainability Management Committee under the Board of Directors to systematically manage ESG-related risks and strengthen sustainability management. The Sustainability Management Committee deliberates on strategies and policies across environmental, social, and governance matters and receives quarterly reports on major activities and performance. Since 2024, related matters have been reported regularly to the Board of Directors and the Sustainability Management Committee, strengthening management-level oversight and decision-making processes.
Legal Affairs & Compliance Team and Compliance Officerㅣ Studio Dragon has established a legal and compliance risk management framework centered on the Compliance Officer and the Legal Affairs & Compliance Team. The Compliance Officer provides proactive legal reviews, including responding to intellectual property infringement disputes, contract drafting and review of operational legal issues, and advisory services on new business ventures and new content production structures. Based on the CEO's commitment to compliance-driven management, the Compliance Officer plans and implements compliance activities including risk monitoring. The Legal Affairs & Compliance Team oversees external legal disputes, including civil and criminal litigation and mediation, and handles contract review and legal advisory services. The team also supports fostering a company-wide compliance culture through the operation of a Compliance Management Committee, compliance training, and compliance guideline management. Through these efforts, the company ensures a coordinated approach to preventing and responding to legal risks.
Integrated Risk Management Organization Chart
Organizational Roles & Responsibilities
Responsible Organization | Key Risk-Related Roles and Responsibilities |
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Legal Affairs & Compliance Team | Standard contract review, compliance with applicable laws and regulations, identification and management of regulatory and dispute risks |
Planning and Production Chief Producer | Risk identification and on-set response during content development and production |
Strategic Communication Team | Media relations, reputation risk management, and post-incident monitoring |
IP Strategy Business Team | Coordination on distribution and licensing matters and business risk management |
Business Management Division | Advance financial risk review based on profit and loss simulation |
Safety Management Team | Health and safety management, regulatory compliance, and prevention and mitigation of on-site risks |
Human Resource Management Team | Human resources and labor risk management and compliance with applicable laws and regulations |
Corporate Audit Team | Ethical business management and internal control operations, compliance risk assessment and corrective measures |
Integrated Risk Items Reported to the Board and Committees
Date | Category | Details |
|---|---|---|
May 2024 | Board of Directors | Report on Anti-Corruption and Anti-Solicitation Act Compliance Policy and Risk Assessment |
Jun. 2024 | Board of Directors and Sustainability Management Committee | Report on Integrated Risk Management Framework |
Mar. 2025 | Board of Directors | Report on Compliance Officer’s Review of Compliance Control Standards |
Jun. 2025 | Board of Directors and Sustainability Management Committee | Report on Integrated Risk Management Framework |
Integrated Risk Management Policy
Studio Dragon has established an integrated risk management framework to systematically address the diverse risks that may arise during content production and business operations. The company has developed a reporting system designed to minimize damage through rapid initial response in the event of emergencies during the production process. The company has also established and published a risk management manual that clearly defines judgment criteria, response procedures, and roles and responsibilities for key risk areas including content, partners, and safety.
To strengthen prevention of and response to compliance issues—including unfair trade practices, internal transactions (funneling), and subcontracting law violations—as well as major operational risks such as non-payment of expenses and embezzlement, Studio Dragon has developed short-, medium-, and long-term implementation plans and, through company-wide communication, enhanced organizational awareness and execution capability.
Integrated Risk Management Process
Studio Dragon operates an established integrated risk response process organized by crisis level to minimize impact and enable swift recovery when risks occur. The process comprises five stages: issue sharing and risk identification, response strategy development, message creation, reporting and review, and implementation and post-management. The company standardizes management across the entire process, from initial risk awareness through post-response actions.
Based on the crisis level assigned to identified risks (Level 1–3), Studio Dragon differentiates its decision-making scope and reporting structure. Level 1 risks are managed primarily by operational departments, while Level 2 and 3 risks require reporting to and the involvement of executive management and the CEO. For Level 2 and 3 risks, the company develops response strategies in accordance with CEO guidelines, maintains close coordination with the parent company, and responds actively to internal and external risks through a joint response system.
To ensure consistency and reliability in external communications, Studio Dragon implements advance review and approval procedures for all official communication messages. The company also conducts post-incident monitoring and follow-up actions to prevent recurrence and continuously enhance its risk response framework.
Risk Response Process
Process | Level 1 (Crisis Level Low) | Level 2, 3 (Crisis Level Medium, High) |
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1. Sharing Issues and Identifying Risks |
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2. Developing Response Strategies |
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3. Crafting Messages |
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4. Reporting, Reviewing, and Approving |
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5. Implementing and Taking Follow-up Actions |
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Stakeholder Engagement
Studio Dragon recognizes that continuous two-way communication with internal and external stakeholders is essential for achieving sustainable growth across all business operations. The company identifies customers, employees, shareholders and investors, business partners, government bodies, the media, and local communities as its key stakeholders. The Company operates tailored communication channels to transparently disclose its sustainability performance while gathering stakeholder requirements and feedback.
Stakeholder | Definition | Key Communication Channels | Major Interest | Activities | Stakeholder Feedback Integration |
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Customers | Global audiences and platform users who watch and consume content, directly experiencing the quality and brand value of content produced by Studio Dragon. |
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Employees | Internal executives and staff members engaged in content development, production, and operations who drive the company's sustainable growth based on a creative and stable work environment |
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Shareholders and Investors | Stakeholders who invest in Studio Dragon with an interest in the company's corporate value and long-term growth potential, significantly influencing financial and ESG management outcomes. |
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Business Partners | Production companies, writers, directors, actors, outsourced production partners, and other collaborators who partner with Studio Dragon in content production and business operations, playing a vital role in building a creative ecosystem and strengthening content competitiveness. |
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Government and Media | Entities that establish policies and regulations related to the content industry and influence the formation of public opinion, playing a key role in fostering the healthy development of the industry and spreading public value. |
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Local Communities | Residents and community members in filming locations who are directly or indirectly affected by the environmental and social impacts of filming activities and corporate operations. |
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