Internal Audit

The Internal Audit Office is an independent unit with designated personnel who report directly to the Board of Directors. It is responsible for the examination and assessment of the internal controls of the Company’s financial, sales, operations and management departments. All departments, including those of the subsidiaries, are subject to its audit

Regular internal audits are executed according to an annual audit plan. Special audit projects are implemented as needed. These audits enhance internal control and provide timely recommendations for future improvements. In accordance with corporate governance, audit reports are submitted on a regular basis and reviewed by the Chairman, as well as presented to the Audit Committee and the Board of Directors by the Chief Internal Auditor. The Internal Audit Office also examines the mechanisms and results of self-evaluations by departments and subsidiaries to ensure strict implementation. In addition, it generates and consolidates related inspection reports for the President and the Board of Directors to evaluate the overall efficiency of existing internal control systems before generating an internal control system statement.

There are 12 dedicated internal audit staff members, including one supervisor in charge of the Internal Audit Office, whose responsibilities are detailed below:

• Articles of Incorporation

• Rules and Procedures on Governing AGM

• Rules and Procedures of Lending and Making Endorsements

• Rules and Procedures for Acquisition or Disposal of Assets

• Rules for Election of the Directors

• Code of Ethics

• Ethical Corporate Management Best Practice Principles

• Corporate Social Responsibility Best Practice Principles