1. Policies on appointment and operation of external auditors
(i) Standards and procedures for appointment of external auditors
In order to secure the independence and professionalism of external auditors, the Company appoints external auditors based on the external auditor appointment rules approved by the audit committee. This regulation is effectively operated by reflecting the amendments to the Act on External Audit of Stock Companies, etc.

External auditors are selected by the Audit Committee in accordance with Article 5 of the External Auditor Appointment Regulations. Upon selection, in accordance with Article 7 of this regulation, the audit committee receives proposals from auditor candidates, holds a face-to-face meeting to evaluate auditor candidates, and conducts evaluation of external auditor candidates in accordance with the evaluation criteria to the auditors in Article 4 of this regulation. The auditor who meets the qualifications of the the audit committee agrees on audit hours, manpower, audit fees, and audit plan based on the proposals received with the selected auditor and finalizes them.

When receiving a notice of auditor designation from the Securities and Futures Commission, in accordance with Article 16 of the Regulations on Appointment of External Auditors, review whether there is a reason for requesting a change of designated auditor as stipulated in the Act on External Audit of Stock Companies, etc., and if deemed necessary you may request the Securities and Futures Commission to change the designated auditor with the approval of the Audit Committee within one week from the date of this notice. If there is no reason to request a change, an audit contract will be concluded with the designated auditor within two weeks from the date of receipt of this notice.

After appointment, it is reported to the regular general meeting convened after the appointment of the auditor in accordance with Article 11 of this regulation, and the appointment of the auditor is also recorded in the audit report.
(ii) Appointment of external auditor
For the appointment of external auditors, the Audit Committee analyzes and evaluates objective indicators of competency, such as size, global audit capability, and supervisory points, as well as proposal submissions. On March 8, 2017, the Audit Committee appointed Samil Accounting Corporation(PwC) as an external auditor for three consecutive business years from the 2017 business year to the 2019 business year, but the contract has expired. In accordance with the Act on External Audit of Stock Companies, etc., for listed companies that have freely appointed external auditors for six consecutive business years, the Securities and Futures Commission will designate external auditors for the following three business years. Accordingly, the Company was designated as an external auditor from Hanyoung Accounting Corporation(EY) from the 2020 business year to the 2022 business year, and the appointment process has been completed. After that, on December 9, 2019, the Audit Committee approved the matters to be complied with, such as audit hours, manpower, and remuneration related to the appointment of auditors, and on January 13, 2020, the Audit Committee enacted the External Auditor Appointment Regulations to reflect the amendments to the Act on External Audit of Stock Companies.