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Corporate Governance

We protect shareholders’ rights through transparent management.
The governance of Samsung Electro-Mechanics consists of legal and transparent procedures based on the Commercial Act and the Company’s Articles of Association. Each member of the Board of Directors contributes to the management and growth of the Company, and effectively performs monitoring/checking functions.

* You may download and view a PDF file of Articles of Association. If revised through the shareholders’ meeting because of any fair reason, it will be updated to the newest version.

Board of Directors

Member of the board

To maximize company value Samsung Electro-Mechanics puts technology and transparent management as it’s top most priority.
To fulfill this management goal, the Board is composed of 7 members with 4 | External Director Candidate Recommendation Committee

Full time directors

YUN-TAE LEE
Position : Chief Executive Officer(CEO)
Elected date : March 23, 2018
End date : March 23, 2021

KANG HEON HUR
Position : Executive Vice President
Role : Head of Samsung Electro-Mechanics’ Corporate R&D Institute
Elected date : March 23, 2018
End date : March 23, 2021

BYOUNG JUN LEE
Position : Senior Vice President
Role : Head of Samsung Electro-Mechanics’ Corporate Business Support Team
Elected date : March 23, 2018
End date : March 23, 2021

Outside Director

Tae Kyun Kwon
  • Position : Chairperson, Outside director
    Audit committee member
    Internal Transaction Committee member
    Compensation Committee member
    Referral committee member of outside directors member
  • Elected date : March 14, 2014
  • End date : March 24, 2020

Hyun Cha Choe
  • Position : Outside director,
    Audit committee member
    Internal Transaction Committee member
  • Elected date : March 14, 2014
  • End date : March 24, 2020

Ji Beom Yoo
  • Position : Outside director,
    Referral committee member of outside directors member
  • Elected date : March 24, 2017
  • End date : March 24, 2020

Yong Kyun Kim
  • Position: Outside director,
    Audit committee member
    Internal Transaction Committee member
    Compensation Committee member
    Referral committee member of outside directors member
  • Elected date : March 23, 2018
  • End date : March 23, 2021

Board of Directors Status

Date Agendas Result External Directiors Present Note
APRIL 25, 2018 1. Matter of the 2018 fire insurance contract
2. Matter of report on 2018 1st quarter results and forecast for the 1st half of 2018
Approved
Report Item
4(100%)  
MARCH 23, 2018 1. Matter of appointing a Chairman of the Board of Directors
2. Matter of appointing a CEO and director responsibilities
3. Matter of approving director compensation
4. Matter of participating in Samsung Heavy Industries’ capital increase
Approved
Approved
Approved
Approved
4(100%)  
FEBRUARY 22, 2018 1. Matter of agenda and matters for resolution for the 45th General Shareholders’ Meeting
2. Report on the operational state of the internal accounting management system for 2017
3. Report on the evaluation of the operational state of the internal accounting management system for 2017
Approved
Report Item
Report Item
4(100%)  
JANUARY 30, 2018 1. Matter of approving the 45th Financial Statements and Business Report
2. Matter of results of legal compliance for 2017 and report on plan for 2018
3. Matter of report on 2017 results and 2018 business objectivesMatter of report on 2017 results and 2018 business objectives
Approved
Report Item
Report Item
4(100%)  
Date Agendas Result External Directiors Present Note
DECEMBER 13, 2017 1. Matter of approving 2018 limits on transactions with special interest parties Approved 4(100%)  
OCTOBER 27, 2017 1. Matter of report on 3rd quarter results and forecast for the year Report Item 4(100%)  
JULY 20, 2017 1. Matter of carrying out contributions
2. Matter of appointing a legal compliance supporter
3. Matter of report on results for 1st half of the year and forecast for 3rd quarter
Approved
Approved
Report Item
4(100%)  
APRIL 25, 2017 1. Matter of the 2017 fire insurance contract
2. Matter of running and delegating the evaluation/compensation system
3. Matter of report on 1st quarter results and forecast for the 1st half of the year
Approved
Approved
Report Item
4(100%)  
MARCH 24, 2017 1. Appointing directors and committee members
2. Approving the payment execution of directors’ wages
3. Revising the Board of Directors Regulations regarding donations
4. Appointing the Chairperson of the Board of Directors
Approved
Approved
Approved
Approved
4(100%)  
FEBRUARY 14, 2017 1. Bringing up agendas and deciding on convening of the 44th regular general meeting of shareholders
2. Operational status of the 2016 in-house accounting management system and reporting results of its evaluation
Approved
Report Item
4(100%)  
JANUARY 24, 2017 1. Approving 44th financial statement and sales report
2. Reporting annual plan and results of law abidance control in 2016
Approved
Report Item
4(100%)  
Date Agendas Result External Directiors Present Note
OCTOBER 20, 2016 1. Employee retirement pension payment
2. Approval of transaction limits with related parties in 2017
3. Participation in Samsung Heavy Industries Co., Ltd.’s paid-in capital increase
4. 3rd quarter results and annual forecast
Approved
Approved
Approved
Report Item
4  
JULY 21, 2016 1. Next-generation product development and infrastructure investment resolution
2. 1st half results and 3rd quarter forecast
Approved
Report Item
4  
APRIL 21, 2016 1. Package insurance contract for 2016
2. 1st half results and 1st quarter forecast
Approved
Report Item
4  
MARCH 11, 2016 1. Revision of the board of directors’ regulations
2. Approval of the directors’ wages
3. Appointment of directors and committee members
4. Appointment of the board of directors’ chairperson
Approved
Approved
Approved
Approved
4 Director YoungNo Kwon retired.
Director KwangYoung Chung was appointed.
FEBRUARY 18, 2016 1. Revision of the Articles of Incorporation
2. Discussion of the agenda and decision on the convening of the 43rd regular general meeting of shareholders
3. Report on the operation status of the internal accounting management system and evaluation result
Approved
Approved
Report Item
4  
JANUARY 28, 2016 1. Approval of the 43rd financial statement and sales report
2. Report on the results of the compliance activities in 2015 and the 2016 plan
3. Report of the 2015 records and 2016 goals
Approved
Report Item
Report Item
3  
Date Agendas Result External Directiors Present Note
OCTOBER 21, 2015 1. Paying pension to retired staff
2. Approving the transaction ceiling with special stakeholders in 2016
3. Reporting the records of the third quarter and future prospects
Approved
Approved
Approved
4  
JULY 23, 2015 1. Reporting the investment in the additional construction for MLCC and the new factory in the Philippines
2 Reporting the records of the first half of the year and prospects for the third quarter
Approved
Approved
4  
JULY 14, 2015 1. Deciding whether to approve or oppose the merger of Cheil Industries into Samsung C&T
2. Separating module products with low competitiveness from the company
Approved
Approved
4  
APRIL 23, 2015 1. Fire insurance contract for 2015
2. Reporting the annual plan and results of the law abidance control in 2014
3. Reporting the Q1 2015 records and prospects for the first half of the year
Approved
Report Item
Report Item
4  
MARCH 13, 2015 1. Appointing directors and members of committees
2. Approving directors' wages
Approved
Approved
4 Directors Chi-jun Choi and Gang-heon Heo retired
Yu-tae Lee and Wan-hun Hong appointed as directors
FEBRUARY 24, 2015 1. Bringing up the agenda and deciding on the convening of the 42nd regular general meeting of shareholders
2. Approving amendments to the audit committee's regulations
3. Operational state of the 2014 in-house accounting management system and reporting the results of its evaluation
Approved
Approved
Report Item
4  
JANUARY 29, 2015 1. Approving the 42nd financial statement and sales report
2. Approving own stock acquisition
3. 2014 records and 2015 goals
Approved
Approved
Report Item
4  
Date Agendas Result External Directiors Present Note
DECEMBER 15, 2014 1. Paying retirement pension to employees Approved 4
NOVEMBER 26, 2014 1. Selling Samsung General Chemicals' shares Approved 2 Directors Hyeon-ja Choi and Min-gu Han absent
APRIL 22, 2014 1. Fire insurance renewal for 2014
2. Employee retirement pension payment
3. Decision on consent/dissent to the merger of Samsung Petrochemical by Samsung General Chemicals
4. Investment assets sales
5. Takeover of Samsung Fine Chemical’s MLCC raw material line
6. 1st quarter earnings and prospect for the 1st half-year
Approved
Approved
Approved
Approved
Approved
Report Item
4  
MARCH 14, 2014 1. Director appointment and committee members appointment
2. Approval of execution of director remunerations
Approved
Report Item
4 Directors Gung-Hun Nam and Seong-Rong Kang; retired
Directors Tae-Gyun Gwon and Hyeon-Ja Choi appointed
FEBRUARY 21, 2014 1. Approval of the 41st financial statement and operation report
2. Report on the operation status of the internal accounting management system and evaluation result
3. Report of the 5th sustainability report publication plan
Approved
Report Item
Report Item
4  
JANUARY 27, 2014 1. Approval of the 41st financial statement and operation report on the 2013 earnings and 2014 objectives Approved
Report Item
4  

Introduce Board of Directors

Board Composition

Election of Directors and Terms of Office

Directors are elected by shareholders at a general meeting of shareholders. Candidates for inside directors are nominated by the Board of Directors, while candidates for outside directors are nominated by the Outside Director Nomination Committee. The total number of directors shall be greater than three and no more than nine. In the case of electing two or more directors, the cumulative voting system prescribed in Article 382-2 of the Commercial Act is not applied. The term of office is three years, and a director may be re-elected at a shareholders’ meeting.

Election of Chairperson

The chairperson of the Board of Directors is elected from among the directors following a resolution of the Board. Currently, outside director Tae-gyun Kwon is serving as chairperson.

Board Expertise and Diversity

The Company does not set restrictions pertaining to race, sex, region of origin, or area of expertise when considering Board members. It actively considers individuals who can participate in the Board with new and diverse perspectives. In particular, for outside directors, the Company seeks candidates who meet the qualifications set forth by relevant laws and regulations, and have expertise or experience in areas such as management, economics, accounting, law or relevant technologies.

Independence of Outside Directors

The ‘independence’ of outside directors is evaluated in accordance with Article 382 and Article 542-8 of the Commercial Act, and with Article 22-2 of the Articles of Incorporation of the Company. If a requirement is not met, a determination of no ‘independence’ is made. In particular, individuals who engage in Company business, have key interests with major shareholders or with the Company, or have worked as employees of the Company within the past two years are prohibited from serving as outside directors.

Concurrent Office Positions of Outside Directors

Outside director Ji Beom Yoo currently serves as an outside director of another listed company.

Operations of the Board of Directors

Board Types

- Regular Board Meetings: Meetings are held once every quarter as a general rule.
- Special Board Meetings: Meetings are held as needed.

Board Meetings

The chairperson calls the meeting of the Board of Directors and must notify each director of the meeting date at least 12 hours before the time of meeting. A director may request the chairperson convene a meeting of the Board by submitting the agenda and objectives if he or she has determined that there are justifiable reasons for business purposes. If the chairperson refuses to convene the Board without just cause, the director who raised the subject matter may himself or herself call a meeting of the Board.

Board Resolution

A resolution of the Board of Directors shall be made when a majority of the directors are in attendance and by a majority vote of the directors in attendance. However, to the extent permitted by relevant laws and ordinances, it is possible to conduct a meeting by means of telecommunication. In order to conduct a fair evaluation and engage in a rational decision-making process, directors with special interests in the subject matters being reviewed are prohibited from exercising their voting rights and are not included in the number of voting rights of the directors in attendance.

Main Matters Considered

Shareholders Meetings and Proposals

  • Convening general meetings of shareholders
  • Approval of operating reports and financial statements
  • Changes to the Articles of Incorporation
  • Appointment and dismissal of directors
  • Matters relating to the Company’s dissolution, mergers and acquisitions, and transfer of the entire business or key parts of the business, as well as transfer of the entire business or key parts of the business of another company that can have significant implications for the Company
  • Directors’ compensation, etc.

Management Matters

  • Decisions regarding basic management policies of the Company, and amendments to such
  • Approval of management plans and of quarterly and semi-annual reports

Financial Matters

  • Matters concerning issuance of shares(- Decisions regarding issuance of new shares, Issuance of convertible bonds and bonds with subscription rights)
  • Acquisition, disposal and retirement of treasury stock
  • Approval of internal transactions
  • Matters involving other key corporations and pertaining to investment/disposal, furnishing of collateral/debt guarantees, credit agreements, etc.

Matters Concerning Directors, Board of Directors, Committees

  • Approval of directors’ involvement in competitive businesses, of concurrent service for another business in the same industry, and of transactions between a director and the Company
  • Appointment of the chairperson of the Board of Directors
  • Appointment of the CEO of the Company and joint representatives
  • Establishment of committees, appointment and dismissal of committee members
  • Establishment and dismissal of other operating rules for the Board and committees

Other

  • Matters set forth in the law or the Articles of Incorporation
  • Matters delegated by the meeting of shareholders and matters deemed necessary by the CEO

Responsibilities and Obligations

Fiduciary Duty of Directors

Directors have a duty of care in making decisions as corporate fiduciaries.

Duty in Good Faith

Directors must perform their duties faithfully for the Company in accordance with the provisions of the law and the Articles of Incorporation.

Prohibition of Directors’ Involvement in Managing Competitive Businesses

Unless approved by the Board or by a committee set by the Board, directors may not engage in operating businesses that are in the same industry as the Company.

Other

Liability Insurance

- In accordance with internal regulations and with approval from the Board or the appropriate committee, the Company provides directors with liability insurance.

Scope of indemnification : The insurance covers the damages to shareholders and other stakeholders arising from a director’s violation of his or her duty of care as a fiduciary and of his or her duty in good faith.

Efforts to Support Outside Directors

In accordance with relevant regulations, outside directors, who play an integral role in maintaining the independence of the Board of Directors, may receive the assistance of external specialists in making important decisions. To this end, the Company has made it a policy to provide external support to the greatest extent possible, such as providing the services of legal or accounting advisers, upon request by outside directors.

In order to provide opportunities for outside directors to exchange opinions and suggestions on matters of overall management of the Company, meetings of outside directors without members of management present are held regularly (at each quarterly meeting of the Board) or when needed.

The Company does not hesitate to provide all the support necessary for outside directors to actively and independently serve the Company. The Company supports regular educational or training efforts such as visits to domestic and international management sites and reports on the status of operations.

Board Committees

Audit Committee

Established to evaluate and improve the business achievements of the overall corporate internal control system,
it draws up, implements, and concludes internal auditing plans, as well as takes follow-up measures and proposes measures for improvement.

Member
Director Tae Kyun Kwon

Elected date : March 24, 2017 / Term : 3 years

Member
Director Hyun Cha Choe

Elected date : March 24, 2017 / Term : 3 years

Member
Director Yong Kyun Kim

Elected date : March 23, 2018 / Term : 3 years

Internal Transaction Committee

Established to enhance the transparency of internal transactions among subsidiary companies,
it listens to internal transaction reports, deliberates, makes decisions, orders, reports, and proposes rectification measures.

Member
Director Tae Kyun Kwon
Member
Director Hyun Cha Choe
Member
Director Yong Kyun Kim

External Director Candidate Recommendation Committee

Established to consolidate fairness and independence in appointing external director candidates pursuant to relevant laws,
it recommends external director candidates.

Member Director
Tae Kyun Kwon
Member Director
Ji Beom Yoo
Member Director
Yong Kyun Kim
Member Director
Yun Tae Lee
Member Director
Byoung Jun Lee
Date Agendas Result Note
FEBRUARY 22, 2018 1. Recommending candidates for external director Approved  
Date Agendas Result Note
FEBRUARY 14, 2017 1. Recommending candidates for external director Approved  
Date Agendas Result Note
FEBRUARY 24, 2015 1. Recommending candidates for external directors Approved  
Date Agendas Result Note
FEBRUARY 24, 2014 1, Appointment of Chairperson of External Director Candidate Recommendation Committee
2. Recommendation of external director candidates
Approved
Approved
 
Date Agendas Result Note
FEBRUARY 23, 2012 1. Recommendation of external director candidates Approved  

Management Committee

Established to enhance the efficient management of the Board of Directors,
it is entrusted by the board to decide on matters related to the company’s overall business management,
financial management, and major issues, except for items decided on by the board pursuant to the relevant laws and articles of association.

Member
Director Yun Tae Lee
Member
Director Kang Heon Hur
Member
Director Byoung Jun Lee

Compensation Committee

It designs, operates, as well as decides the pay and other matters related to the achievement compensation system for managers.

Member
Director Tae Kyun Kwon
Member
Director Yong Kyun Kim
Member
Director Byoung Jun Lee

Info on Corporate Governance

ESG Rating (2017) : A+ Model Corporate Governance Standards (CGS) Download

Environment Social Governance
A+ A+ A

※ Rating Agency : Corporate Governance Service

Recommendations under Model Standards

Recommendations under Model Standards Acceptance Note
Adoption of corporate governnance charter O  
Adoption of ethics regulation for executives O  
Adoption of concentrated vote system and public notification of such adoption O Announcement through the home page
Board of Directors composition (more than half held by external directors) O 3 internal directors, 4 external directors
Separation of the representing director and chairperson of board of directors, or appointment of senior external director O  
Announcement of board of directors activities, attendance, and consent/dissent to major agendas O  
Establishment of director recommendation committee O 2 internal directors, 3 external directors
Establishment of compensation committee O  
Establishment of audit committee (all external directors) O 3 external directors
Adoption of regulations on the roles and operation of board of directors and committees O  
Damage compensation liability insurace for directors at the company’s expense O  
Evaluation of board of directors activities Χ  
Maintenance of independent status of external directors O  
Certification of accuracy and completeness of financial reports by the representing director and financial personnel O  
Explanation on the differences with Model Corporate Governance Standards O  
Announcement (in Korean and English) of audit reports and other crucial notices O  

Business Management Structure Charter

The first chapter General Rules

Article 1 (enterprise structure basic spirit of Samsung Electro-Mechanics)

Samsung Electro-Mechanics intends world top enterprise which contribute to human society inventing the best product and service with competent person and a technology under fair and transparent business management.All we wish to establish as standard of our action and value-judgement enacting『 Samsung Electro-Mechanics corporate governance improvement constitution 』 as following by belief that can be world top enterprise respected and trusted in international community when try to one direction for new technology development and realization of top quality based on wholesome corporate governance and clean corporate culture,

The second chapter Customer

Article 2 (justice of customer)

We define everyone related Samsung Electro-Mechanics, employeeㆍcooperation companyㆍrival companyㆍstockholderㆍbuyerㆍetc... as our customer.

Article 3 (pursuit of customer satisfaction)

We make customer satisfaction as primary value, and seek common prosperity with mutual trust and respect as companion of new value creation with customer.

The third chapter Stockholder

Article 4 (stockholder's right)

Stockholder must be able to be offered necessary information suitable to exercise all of own rights and exercise with appropriate and reasonable method.
- The right of self benefit, the right to participate of profit sharing
- The right of public benefit, attending general meeting of stockholders and voting right
- The right to be offered suitable and important information by regular and easy method

Article 6 (stockholder's liability)

Stockholder recognizes importance of own voting right and exercise voting right toward direction for development and profit of enterprise. In case give damage by counteraction, stockholders must take responsibility that is suitable accordingly

Article 7 (stockholder's fair treatment)

Stockholder has 1 voting right every a common stock, and the essential right must not be infringed except special occasion and special stockholder in law. Also, stockholder should be protected from other stockholder's unfair transaction (unfair insider trading, self-dealing etc..)

Article 8 (company's liability about stockholder)

As creating stable profit through strong business management, so that can protect stockholder's investment benefit and construct mutual trust with stockholder, company respects stockholder's right to know and right request, proposal, official resolution and opens to the public actively management substance, business activity circumstance according to related laws. Also, the company does not offer information that affects management to some specified stockholders, and does not deal securities such as buying and selling of stocks using information acquired officially inside or of other companies.

The fourth chapter board of directors

Article 9 (board of directors)

Board of directors has comprehensive right as an institution which is responsible for substantial management, and decides effective managerial policy for the profit of company and stockholder and achieve function of following management decision-making and management supervision.
- Strategy and target establishment about management
- Estimation for supervison and achievement on management
- Estimation and approval for important management decision-making such as business plan, budget etc...
- Deliberation, examination, and approval of company's basic policy
- Selection and estimation, compensation of CEO
- Deliberation and decision of director such as selection of chairman of the board of directors.
- Approval for alteration of management purpose
- Important fluctuating item supervision such as main capital expenditure and merger
- Supervision, examination, approval about accounting and main business action
- Supervision of regulation observance such as statute, bylaws, moral principle regulation

Article 10 (director's qualification)

A director as a meber of board of directors who take the responsibility for company's management must equip exemplary moral principle and occupational consciousness, and professionalism and must equip reasonable judgment and driving force, wisdom, honesty and service.
Also, a director must be able to medicate enough time and speak for long-term profit of stockholder in own job achievement.

Article 11 (director's duty and responsibility)

A director should be faithful for enterprise and stockholder profit according to duty of carefulness and faithfulness of good administrator and should face in the job sincerely and should not leak information that is gotten outside or not use for individual's profit.
Also, a director is liable for damage on company in case a director violates statute or articles of association or it takes liabilities for damages on company in case there is heavy mistake or malice to a director.
For the sake of faithful and careful activity of directors, attendance of the board of directors' meeting, major career and concurrent job of each director should be made public in an appropriate way.
But, director's management judgment by proper formality and sincere and reasonable judgment should be respected and in order to secure effectiveness of responsibility inquiry about a director and recruit able person, joins to insurance of compensation for damages.

Article 12 (estimation and compensation for directors)

Business action of the management and external director, board of directors should be estimated fairly and the results are reflected reasonably and properly. Especially, the compensation of director is decided by director compensation committee within scope approved in general meeting of stockholders.

Article 13 (recommendation and selection of external directors)

External directors must be recommended fairly and for this, keeps recommendation committee of external director candidate and recommends new external director. Recommended director candidate is assigned in general meeting of stockholders. A director that equips professionalism should contribute to management and assigned director's tenure should be respected.

A person that corresponds to essential factor that decided in statute (16③ of stock exchange act 191, 5④9 of 54, the same law 6③3 of 37) can not be assigned and except, can not be assigned as external director that has following important matter.
- Former employee who 5 years are not passed since retire
- Person in special relationship with company, C.E.O. or largest stockholder
- Employee of company of which officer is external director
- Accounting firm's employee who take charge of company's audit business, person who 5 years are not passed since retire

Article 14 (Rights and duties of external directors)

External director must be able to take part in decision-making of company independently and supervise and support the management as a member who composes board of directors. For this, external director can require enough information and human·physical support to company, and the company answers faithfully to this.
Also, external director must medicate enough time for job achievement and is bound to participate board of directors and should take part in board of directors after examine related data faithfully before participation.

Article 15 (committee)

The company increases professionalism and efficiency of business achievement and solidifies independence that keeps following standing, emergency New Year committee.
-Standing committee : executive committee, committee of audit, recommendation committee of external directors candidate
-Emergency New Year committee : director compensation committee, the investment deliberation committee etc..

Committee's composition and operation are clarified to articles of association and regulation and in accordance with the regulation, compose and operates the committee. Committee's determination for mandatory item has an equal effect with board of directors, and the committee must report result to board of directors.

(The fifth chapter audit organization)

Article 16 (inside audit organization)

Audit committee is established by determination of board of directors and composed by all external directors of board of directors in order to achieve audit business sincerely in independent way from management and controlling stockholder.
Also, members of audit committee must be able to approach necessary information freely and it is necessary that they be consulted by external specialist and the company should answer faithfully on this request.
Audit committee reports item, main activity particulars and result about belonging member's career to general meeting of stockholders and CEO must publish this through annual report.

Article 17 (assignment of outside auditor)

Outside auditor should be assigned as a person who is able to audit accounting information of company fairly and effectively. Audit committee of company must assign relevant accounting firm with applying this standard and report the truth in annual meeting of shareholders.

Article 18 (responsibilities and duties of outside auditor)

Outside auditor must achieve audit business fairly in dependent way from management, company and largest shareholder so that accounting information of company could be delivered fairly and trusted.
Outside auditor has responsibility to indemnify damage which caused by own carelessness or poor audit by deliberation, and damage of information user caused from it. Also, outside auditor should identify whether there is arranged information or not among information particularly published with financial statement that was audited.

The sixth chapter accounting data processing and management watch

Article 19 (standard of accounting process)

Processing and reporting of accounting data is observed by internal accounting regulation or international accounting standards and in case of relating foreign countries, is observed by accounting regulation of each countries or international accounting standards.

Article 20 (management watch participation of the persons concerned)

Employee's management participation form and the level should be decided as a level that the company can keep and develop sound activity.
Also, the persons concerned can require information that is necessary for own right protection in accordance with related statute and the company should answer faithfully on this request within scope that permitted by statue.

Article 21 (management watch by market)

Company makes out information connected with contents of company so that is easy to know and should publish to whom it may concern such as investor, stockholder, the persons concerned quicklyㆍexactly, and cooperate so that whom it may concern use inexpensively.
Also company prepares information conveyance system with designating a person in charge of public announcement so that important information of company can be delivered to a person in charge quickly and exactly.
Company should open to stockholders immediately about issues that was decided in decision-making organization including board of directors as guidance enterprise of corporate governance, and be faithful to decision-making, making use of professional advisor on items that is expected not only profit of company but also disadvantage to the persons concerned.

The seventh chapter the persons concerned

Article 22 (right protection of the persons concerned)

The company must protect right of the persons concerned by statute and contract, and relevant stakeholder protects own rights and must possess suitable means that can be exterminated infringement of their rights.

Article 23 (right protection of creditor and employee)

The company observes protection procedure of creditor on matters which have significant influence on creditor's status such as merger, reduction of capital. Also, the company informs to relevant creditor in advance about items to influence creditor such as possibility of bond retrieve, bond order of creditor, etc...
Also, the company observes statue of labor relations including labor three laws and efforts for improvement of labor conditions.

(An additional law)
1. This regulations enforce from February 28, 2001.
2. This regulations enforce revision from February 28, 2003.