Corporate Governance

The Internal Audit Office consists of one supervisor who reports directly to the Board of Directors. Its primary responsibilities are to examine and evaluate the effectiveness of the Company's internal control system, assess operational efficiency, reliability of reporting, and compliance with applicable laws and regulations. The Internal Audit Office also provides timely recommendations for improvement to ensure the continuous and effective implementation of all management systems.

Internal audits are conducted in accordance with the annual audit plan. In addition, special audit projects may be carried out when necessary to identify potential deficiencies in the internal control system and provide recommendations for improvement. Follow-up reviews are performed to monitor corrective actions, and audit reports are issued accordingly.

The Internal Audit Office regularly reports audit results and implementation status to the Board of Directors. Through the evaluation and enhancement of risk management, control, and governance processes, the Internal Audit Office assists the Board of Directors and management in achieving the Company's objectives.

Furthermore, each year the Internal Audit Office supervises all departments in conducting self-assessments to establish an effective self-monitoring mechanism. The assessment results serve as a basis for recommending that the Board of Directors and President issue the Internal Control System Statement.

Communication principles among Independent Directors, the Chief Internal Auditor, and External Auditors are as follows:

1. The Chief Internal Auditor and External Auditors may communicate directly with Independent Directors whenever necessary. Communication channels remain open and effective.
2. In addition to receiving monthly audit reports, Independent Directors are provided with separate briefings by the Chief Internal Auditor before Audit Committee meetings regarding audit activities. Audit execution and effectiveness are fully communicated and discussed.
3. The Chief Internal Auditor and External Auditors report to Independent Directors on financial statement audit results and significant findings during biannual communication meetings.
4. At least twice each year, separate meetings are held between the Chief Internal Auditor and External Auditors to discuss completed internal audit findings, external audit observations, and any deficiencies identified during the audit process. Communication records are documented and reported to the Board of Directors.
5. The Chief Internal Auditor regularly reports to the Audit Committee regarding:
   • Annual Internal Audit Plan.
   • Status of Internal Audit Activities and Execution Results.
6. External Auditors attend Audit Committee meetings at least once annually to present the results of the annual audit.
7. Other Matters: Meetings may be convened at any time when significant irregularities occur or when Independent Directors, the Chief Internal Auditor, or External Auditors consider independent communication necessary.