NAVER

Information processing and information communications services through use of computers and telecommunications equipments;

Sale of system integration services;

Development, sale and lease of softwares;

Specialized services related to information processing technology;

Advanced information communications services;

Advertising agency business, advertising media sales business; <Revised 2015.03.20>

Public opinion polls and research business;

Real estate lease business;

E-commerce and related distribution business;

Supplemental communications business; and

Electronic finance business; <Revised 2012.03.23>

Location based service; <Appended 2015.03.20>

Sale and lease of know-how business; <New 2015.03.20>

Online and mobile distribution of music, motion pictures, photography, and cartoons; <New 2015.03.20>

Management and brokerage of copyrights and licenses; <New 2015.03.20>

Management of copyrights and licenses regarding music, videos, and publication; <New 2015.03.20>

Manufacture and retail of synthetic resins, clothes, stationaries, toys, and metal works; <New 2015.03.20>

License business regarding intellectual property rights such as trademark and brand; <New 2015.03.20>

Certified managing business for creators, entertainment supporting business; <New 2015.03.20>

Entertainment related business; <New 2015.03.20>

Special-category telecommunications business; <New 2018.03.23>

Medical Service(Limited to set-up of auxiliary medical institution); <New 2018.09.07>

Publishing, film and audio recording production and distribution <New 2020.03.27>

Sales of food and Beverages and cafe operation <New 2020.03.27>

Any and all businesses and investments incidental to each of the aforementioned objectives.

The head office of the Company shall be located in Gyeonggi-do Seongnam-si. <Revised 2021.03.24>

The Company may establish branches, sub-branches, offices or overseas subsidiaries within or outside Korea, by resolution of the Board of Directors, whenever necessary.

The classes of shares to be issued by the Company shall be common shares and preferred shares, both in registered form. <Revised 2012.03.23>

<Deleted 2019.03.22>

The company should electronically register rights to be indicated on stocks and subscription right certificates on the electronic register of the electronic registry substituting the issuance of the rights to be indicated on stocks and subscription right certificates. <New 2019.03.22>

Class shares to be issued by the Company shall be "non-voting preferred shares"(referred to as "Class Shares" hereinafter), and the number of class shares that can be issued is limited to 1/4 of all shares issued. <Revised 2015.03.20>

Dividends shall preemptively be paid in cash for class shares based on the par value, following the preferred rate determined by the board of directors. <Revised 2015.03.20>

If the dividend rate declared on common shares exceeds that of class shares, the amount of excess dividends can be either participating or non-participating following the resolution of the board of directors. <Revised 2015.03.20>

If, for any fiscal years, dividends cannot be paid on class shares, such unpaid dividends can be either cumulative or non-cumulative when paid in the next year, following the resolution of the board of directors. <Revised 2015.03.20>

In the event that a resolution of not paying preferred dividends prescribed herein has been passed at a general shareholders meeting of the Company against the preferred dividends prescribed herein, preferred shareholders shall be granted voting rights from the following general shareholders meeting until the end of the general shareholders meeting at which a resolution is passed in favor of payment of the preferred dividends.

If the Company increases capital by issuing new shares with or without consideration, the new shares to be assigned shall be of the same class, of a different class or common shares following the resolution of the board of directors. <Revised 2015.03.20>

<Deleted 2015.03.20>

The Company shall determine the manner of issuing new shares by the resolution of the Board of Directors in following cases: <Revised 2014.03.21>
① Where the Company offers new share subscription rights to existing shareholders in order to allocate new shares based on the number of existing shares;
② Where the Company offers new share subscription rights to a specific individual(including the shareholder of the Company) in order to achieve the Company's management purposes such as introducing new technology and improving financial structure, in a manner not described in item 1 above and to the extent that the number of such new shares does not exceed 20/100 of the total number of outstanding shares; and
③ Where the Company offers new share subscription rights to a unspecified individuals(including the shareholder of the Company) and allocates new shares to the subscriber in a manner not described in item 1 above and to the extent that the number of such new shares does not exceed 50/100 of the total number of outstanding shares.

In cases where new shares are allocated by the manner described in Paragraph 1 item 3 above, the new shares may be allocated by the resolution of the Board of Directors and corresponding to any one of the following provisions: <Revised 2014.03.21>
① Where the Company allocates new share to unspecified individual subscribers without classifying individuals with new share subscription rights;
② Where the Company grants new share subscription rights to unspecified individuals after allocating new shares to members of the Employees Share Ownership Association pursuant to related laws;
③ Where the Company grants new share subscription rights to unspecified individuals in cases where there are unsubscribed shares after the new share subscription rights were granted to existing shareholders with priority; or
④ Where the Company grants new share subscription rights to specified individuals corresponding to rational standards set forth in related laws such as supply estimation by the investment management or investment brokerage as the underwriter or intermediary.

In the case of issuing new shares in the manner described in the manner described in provision of Paragraph 1 above, the class, number and price thereof shall be determined by a resolution of the Board of Directors. <Revised 2014.03.21>

If any shareholder waives or forfeits his/her preemptive rights for new shares or any fractional shares resulting from the allocation of the new shares, the method of dealing with such new shares or fractional shares shall be determined by a resolution of the Board of Directors. <Revised 2014.03.21>

The Company shall determine the method of dealing with fractional shares resulting from the allocation of the new shares by a resolution of the Board of Directors. <Revised 2014.03.21>

The Company may grant its officers and employees and affiliated company’s officers and employees (pursuant to Article 30 of KCC Enforcement Decree hereafter) stock options by a special resolution of the general shareholders meeting, to the extent of not exceeding 15/100 of the total number of issued shares, provided, however the Company may grant stock option to its officers and employees by a resolution of the Board of Directors to the extent of not exceeding 3/100 of the total number of issued shares. In such a case, the Company may grant such stock options to be linked to the management performance or share price index. <Revised 2013.06.28>

In the case of granting stock options by a resolution of the Board of Directors prescribed in the provision of paragraph 1 above, must be resolved at the following general shareholders meeting after the grant.

Those eligible for a stock option shall be the Company’s officers or employees who contribute or have the capacity to contribute to the Company’s incorporation, management, or technological innovation, etc. but excluding any person fitting any of the following descriptions. However, if the person became a specially related person(s) (hereinafter having the meaning defined in Article 34 of the KCC Enforcement Decree) following the promotion or joining of the Company as an executive (including the case where the executive or auditor does not conduct work for affiliated company ). <Revised 2013.06.28>
① The Company’s largest shareholder (hereinafter, having the meaning defined in Article 542-8 Paragraph 2-5 of the KCC) and any specially related person(s);
② The Company’s principal shareholder(s) (hereinafter, having the meaning defined in Article 542-8 Paragraph 2-6 of the KCC) and any specially related person(s); or
③ A person who becomes a principal shareholder of the Company as a result of exercising his/her stock options

The shares to be delivered as a result of the exercise of stock options hereunder (in case there is a difference between the share price at which such stock options are exercised and the market value of relevant share is paid in cash or treasury share, the share on the basis of which such difference is calculated) shall be shares described in Article 8 and determined by general shareholders' meeting where stock options are granted or by the resolution of the Board of Directors. <Revised 2013.06.28>

The number of shares covered by a stock option that may be granted to an executives or employee of the Company shall not exceed ten out of one hundred (10/100) of the total number of issued shares. <Revised 2019. 03. 22>

The per-share price at which stock options are exercised shall not be lower than either of the following prices. Such provision shall also apply to where the relevant stock option exercising price is adjusted subsequently after the grant of stock options.
① If new shares are to be issued and delivered, the higher of the following prices:
A. Actual market value of relevant shares as of the date of such stock options granted; or
B. Face value of relevant shares.
② Otherwise, the market value of relevant shares evaluated pursuant to Item 1-A above.

The stock options may be exercised after two (2) years have passed while working and holding office, following the date of the resolution set forth in Paragraph 1, above. However, if he/she is deceased within two (2) years from the date of the resolution set forth in Paragraph 1, above, or retires or resigns from office due to causes not attributable to him/herself, he/ she may exercise stock options during the above period. <Revised 2019.03.22>

The stock options may be exercised within five (5) years and after the date set by the board of directors or by the resolution of general shareholders’ meeting set forth in Paragraph 1, above. <Revised 2019.03.22>

The grant of the stock option may be cancelled by a resolution of the Board of Directors in any of the following cases:
① Where the relevant officer or employee of the Company voluntarily retires from his/her office after being granted stock options;
② Where the relevant officer or employee of the Company causes substantial damage to the Company due to his/her willful misconduct or negligence;
③ Where the stock options may not be exercised due to the Company’s bankruptcy or dissolution; or
④ Where any cause for cancellation set forth in the stock option agreement occurs.

The dividend of the profit gained from the new shares as result of stock option exercise should correspond to provisions in Article 13. <New 2013.06.28>

The Company may grant members of Employees Share Ownership Association, options for Employee Ownership Plan by a special resolution of the general shareholders meeting, to the extent of not exceeding 20/100 of the total number of issued shares in pursuant to Article 32-2 of the FAWW. Provided, however the Company may grant members of Employees Share Ownership Association options for Employee Ownership Plan by a resolution of the Board of Directors to the extent of not exceeding 10/100 of the total number of issued shares.

In the case of issuance or assignment of the shares following the exercise of the option, the shares of the Company shall be common shares and class shares in registered form. <Revised 2017.03.17>

<Deleted 2017.03.17>

The Employee Ownership Plan option may be exercised after six (6) months to two (2) years after the date of grant set forth in provisions of paragraph 1 above. However, the option may be exercised with the specific period during or with the end of the time set forth by the resolution set forth in provision of paragraph 1 above.

The exercise price for the Employee Ownership Plan option shall exceed 70/100 of the par value set forth in Article 14 of the Framework Act on Workers’ Welfare Enforcement Regulations. However, in the case of shares issuance for the granted options where exercise price is below the face value, the face value may be replaced as the exercise value. <Revised 2017.03.17>

The grant of Employee Ownership Plan option may be cancelled by a resolution of the Board of Directors in any of the following cases:
① Where the grantee causes substantial damage to the Company by willful misconduct or negligence;
② Where the Company is unable to respond to the exercise of options due to the Company’s bankruptcy or dissolution; or
③ Where any event constituting a cause of cancellation thereof set forth in relevant Employee Ownership Plan option agreement occurs.

The dividend plan for the newly issued shares following the exercise of Employee Ownership Plan option shall be in accordance with the provisions set in Article 13.

The Company shall retain a transfer agent for shares.

The transfer agent, the location where its services are to be rendered and the scope of its duties, shall be determined by a resolution of the Board of Directors of the Company and shall be publicly notified.

The Company shall keep the shareholders’ registry, or a duplicate thereof, at the location where the transfer agent renders its services. The transfer agent shall deal with the electronic registration of shares, maintenance of electronic register and other share-related matters. <Revised 2019.03.22>

The procedure of dealing with such matters mentioned in paragraph 3 shall be subject to the relevant regulation determined by the Transfer Agent. <Revised 2021.03.24>

The company shall prepare and keep shareholder’s registry by stating the matters notified and the date of notification when receiving a notice of owner's details from an electronic registration agency. <Revised 2021.03.24>

The company prepares shareholder’s registry through electronic document. <Revised 2021.03.24>

<Deleted 2021.03.24>

The Company shall deem those shareholders whose names appear in the list of shareholders on December 31 of each year to be the shareholders entitled to exercise their rights as shareholders at the annual general shareholders meeting.

In the case of convening an extraordinary general shareholders meeting or in any other necessary cases, the Company may authorize those who are registered in the shareholders registry as of a record date which shall be a date set by a resolution of the Board of Directors, to exercise their rights as the Company’s shareholders. In such case, the Company shall provide public notice in relation thereof at least two weeks prior. <Revised 2021.03.24>

The Company may issue convertible bonds to any person(s) other than the Company’s shareholders by a resolution of the Board of Directors to the extent that their aggregate par value does not exceed 500 billion Won, if such convertible bonds are issued: <Revised 2014.03.21>
① Through granting convertible bond subscription rights to allocate bonds to specified individuals(including shareholders) for the purpose of achieving management objectives including introduction of new technology and improvement of financial structure in cases not set forth in Article 10 Paragraph 1 item 1 above; or
② Through allocating convertible bonds to subscribers following the grant of convertible bond subscription rights to unspecified individuals in cases not set forth in Article 10 Paragraph 1 item 1 above.

The convertible bonds referred to in paragraph 1 above, the Board of Directors may also issue such bonds on condition that only a part thereof be granted the right to convert to capital shares.

The shares to be issued as a result of conversion of such bonds shall be common shares and the applicable conversion price shall be equal to or higher than the par value per share of such new shares, as determined by the Board of Directors at the time of issuance of such bonds.

The period in which holders of convertible bonds are entitled to make a request for conversion hereunder shall begin on the day after three (3) months have elapsed from the date of issuance thereof and end on the day immediately preceding the maturity date thereof provided, however, that in the event that the convertible bonds are issued by a method other than public offering, conversion may be requested during the period from the date when one (1) year has elapsed after the relevant convertible bonds are issued to the date immediately prior to the redemption date of the bonds. However, the period for requesting conversion may be adjusted by a resolution of the Board of Directors within the aforementioned period.

The payment of dividends on the new shares to be issued as a result of conversion hereunder and the payment of interest on such convertible bonds, the provisions of Article 13 hereof shall apply, mutatis mutandis.

The Company may issue bonds with warrants to persons other than shareholders in the cases set forth in Article 18 paragraph 1 above by a resolution of the Board of Directors to the extent that the aggregate face value amount of the bonds shall not exceed 500 billion Won.

The aggregate price of new shares that may be subscribed by the holders of warrants shall be determined by the Board of Directors, but shall not exceed the aggregate face value of the bonds with warrants.

The shares to be issued as a result of exercise of warrants shall be common shares and the applicable conversion price shall be equal to or higher than the par value per share of such new shares, as determined by the Board of Directors at the time of issuance of such bonds.

The period in which holders of bonds with warrants are entitled to make a request for exercise hereunder shall begin on the day after three (3) months have elapsed from the date of issuance thereof and end on the day immediately preceding the redemption date thereof provided, however, that in the event that the bonds with warrants are issued by a method other than public offering, exercise may be requested during the period from the date when one (1) year has elapsed after the relevant warrants are issued to the date immediately prior to the redemption date of the bonds. However, the period for requesting exercise may be adjusted by a resolution of the Board of Directors within the aforementioned period.

The payment of dividends on the new shares to be issued as a result of such warrant hereunder and the payment of interest on such convertible bonds, the provisions of Article 13 hereof shall apply, mutatis mutandis.

The Company may issue participating bonds to persons other than shareholders by a resolution of the Board of Directors to the extent that the aggregate face value amount of the bonds shall not exceed 500 billion Won.

The participating bonds stipulated in paragraph 1 above, may participate in the Company’s distribution of dividends at the rate of 5/100 of the dividends for common stock.

The quarterly dividends under Article 57 shall not apply to participating bonds.

The issue price of the participating bonds stipulated in paragraph 1 shall be determined by the Board of Directors at the time of issuance.

The Company may issue exchangeable bonds to persons other than shareholders by a resolution of the Board of Directors to the extent that the aggregate face value amount of the bonds shall not exceed 500 billion Won.

Details pertaining to issuance of exchangeable bonds shall be determined by resolution of the Board of Directors.

The Company’s meetings of shareholders shall consist of annual general shareholders meeting and extraordinary shareholders meeting.

Annual general shareholders meeting shall be convened within three (3) months after the close of each fiscal year and extraordinary shareholders meeting shall be convened at any time whenever deemed necessary.

Unless otherwise provided in relevant laws and regulations, the general shareholders meeting shall be convened by the Representative Officer of the Company in accordance with a resolution of the Board of Directors.

If Representative Officer is absent or unable to execute his/her duties, the provisions of Article 40 paragraph 2 hereof shall apply mutatis mutandis.

In convening a general shareholders meeting, a notice thereof either in written or electronic form, which sets forth the time, date, place and agenda of the meeting, shall be sent to each shareholder at least two (2) weeks prior to the date of the meeting.

The written notice to shareholders holding not more than 1/100 of the total number of issued and outstanding shares with voting rights stated in provisions of paragraph 1 above may be replaced by public notices made at least twice in the Korea Economic Daily and the Maeil Business Newspaper, circulated in Seoul two weeks prior to the meeting or through a disclosure at Data Analysis, Retrieval and Transfer System operated by Financial Supervisory Commission or the Korea Stock Exchange. The public notice of a meeting shall announce that the general meeting will be held and shall include the agenda of the meeting.

In case of personal notification according to paragraph 1 or public notice according to paragraph 2, if the purpose is to appoint directors, then information such as the names and brief personal records of the candidates for such directors and others shall be included in such notices as prescribed by the Article 542-4 Paragraph 2 of the KCC.

When the Company gives personal or public notice of convening of general shareholders meeting in accordance with paragraph 1 and 2 above, information such as performance and remuneration of outside directors and operations of the Company in accordance with Article 542-4 Paragraph 3 of KCC. However, if the Company posts such matters on the online corporate website and keeps them at the head office and branches of the Company, the transfer agent company, the Financial Supervisory Commission, and the Korea Stock Exchange, it shall replace notice or public notice thereof.

The Representative Officer shall preside over the general meetings of shareholders as chairman.

In the absence of the Representative Officer, the provision of Article 40, paragraph 2 shall apply mutatis mutandis.

The chairman of a general shareholders meeting may order the suspension, cancellation of statements or removal of person(s) who deliberately speak or behave in a manner that disrupts the proceedings of the meeting or otherwise interferes with the proceedings.

The chairman of a general shareholders meeting may limit the length and frequency of statements made by a shareholder whenever deemed necessary to facilitate the smooth proceedings of the meeting.

If a shareholder holding more than two (2) votes wishes to split his/her votes, he/she shall give written notice to the Company of such intention and the reason therefore at least three (3) days prior to the meeting.

The Company may refuse to allow a shareholder to split his/her votes unless such shareholder holds shares in trust or on behalf of a third party.

A shareholder may exercise his/her vote by proxy.

In case of paragraph 1 above, the proxy shall present appropriate documents evidencing his/her power of representation (a power of attorney) prior to the opening of the general shareholders meeting.

Directors shall be elected at a general shareholders meeting.

A resolution for the election of directors shall be passed by the affirmative votes of the majority of the shareholders present; provided, that, such votes shall represent at least one fourth (1/4) of the total number of issued and outstanding shares.

In case two (2) directors or more are elected at shareholders meeting, the cumulative vote stipulated in Article 382-2 of the KCC shall not apply.

The term of office for directors shall be within three (3) years; provided, however, that such term of office shall be extended until the close of the annual shareholders meeting convened in respect of the last period for the settlement of accounts comprised in their term of office if their term of office expires after the end of the said last period for the settlement of accounts but before the close of the such general shareholders meeting. <Revised 2018.03.23>

<Deleted 2021.03.24>

If there is a vacancy in the number of directors, a director shall be elected at a shareholders meeting to fill such a vacancy; provided, however, that the foregoing provision shall not apply if the number of the existing directors in office is not less than the number of directors provided in Article 35 hereof and no hindrance is caused to carrying on the Company’s business thereby.

If there is a vacancy in the number of directors and if an outside director is deceased or resigns from office due to causes not attributable to him/her, a director shall be elected at the first shareholders meeting from the period to fill such a vacancy that the number of the existing directors in office is not less than the number of directors provided in Article 35 hereof. <New 2009.03.30>

The representative director shall represent the Company and shall direct the overall operation of the Company.

The vice presidents, senior managing directors, managing directors, and directors shall assist the representative director and shall perform their respective responsibilities as determined by the Board of Directors. In the absence of the representative director, the vice president, senior managing director and managing director shall take his/her place in the foregoing order of priority.

Each director shall faithfully perform his/her duties in the interest of the Company in compliance with law, regulations, and these Articles of Incorporation.

Each director shall exercise due care in the performance of his/her duties in the interest of the Company.

Each director shall not disclose any business secrets of the Company that he/she obtained while serving as director during his/her term and after retirement.

If a director becomes aware of any fact that is likely to cause substantial losses to the Company, he/she must immediately notify the audit committee or a member of an audit committee.

Remuneration for directors shall be determined by a resolution of a general shareholders meeting.

Severance pay for directors shall be paid in accordance with the Rules on Severance Pay for executives and others adopted by resolution at the general shareholders’ meeting. <Revised 2019. 03. 22>

The Board of Directors shall compose of directors and resolve all important matters relating to the execution of the Company’s businesses.

The Chairman or any other director designated by the Board of Directors shall convene a meeting of the Board of Directors by notifying all of the directors thereof at least three (3) days prior to the date of the meeting. Provided, however, that if all member of Board of Directors unanimously consent to holding a Board of Directors meeting, the procedures of convening a meeting may be omitted. <Revised 2013.06.28>

Directors other than the director designated to convene a meeting of the Board of Directors under paragraph 2 above may request the designated director to convene a meeting. If the designated director refuses to convene such meeting without justifiable reason, the other directors may convene a meeting.

Each director shall report to the Board of Directors of his/her execution of duties at least once every three (3) months.

Except for cases where the related laws set strengthened resolution requirements, a quorum for a Board of Directors’ meeting shall be the attendance of at least three fifths (3/5) of the total number of directors of the Company. Resolutions of the Board of Directors shall be adopted by the affirmative vote of a majority of the directors present at the meeting. <Revised 2013.06.28>

The Chairman shall be elected by resolution of the Board of Directors.

<Deleted 2013.06.28>

No director having a special interest in any resolution of the Board of Directors shall be allowed to exercise his/her vote upon such resolution.

The Company shall have committees within the Board of Directors as described below:
① An audit committee;
② Any other committee required by the related law; <New 2012.03.23>
③ Any other committee deemed necessary by the Board of Directors.

The composition, authority, operation, and other details pertaining to each committee shall be determined by the resolution of the Board of Directors.

The provisions of Articles 43 through 45 of this Articles of Incorporation shall apply to the committees unless otherwise specified herein.

The Company shall in lieu of a statutory auditor have an audit committee as set forth in Article 46 above.

The audit committee shall be comprised of at least three (3) directors, with at least two-thirds (2/3) of its members being outside directors.

<Deleted 2013.06.28>

The audit committee may, if necessary, seek the assistance of experts at the Company's expense.

The audit committee shall by its resolution appoint a chairman from the outside directors who shall represent the audit committee.

<Deleted 2013.06.28>

The audit committee shall examine the accounts and businesses of the Company.

The audit committee may require the Board of Directors to convene an extraordinary general shareholders meeting by submitting a document which states the agenda of and reasons for convening such meeting.

The company’s external auditors shall be appointed by the Audit Committee. <Revised 2019. 03. 22>

The audit committee may request the Company’s subsidiary to report the details of its operations, if deemed necessary for the performance of its duties. In such a case, if the subsidiary fails to immediately report the details, or if deemed necessary to check for the performance, the auditors may investigate the subsidiary’s business operation and financial status.

The audit committee shall take care of matters other than those set forth in paragraphs 1 through 4 above as delegated by the Board of Directors.

Board of Directors shall not overthrow resolution approved by the audit committee. <New 2009.03.30>

The audit committee shall maintain a record of its audit activities in an audit report.

The audit report shall contain the audit procedures performed, results of the audit, and the name and seal or signature of the audit committee member(s) who have performed such audit shall be affixed to the audit report.

The representative director of the Company shall prepare the documents stipulated in Article 477 of the KCC, together with supplementary documents and the business reports, and have them audited by the audit committee no later than six (6) weeks before the date set for such meeting. The representative director shall submit the following documents and the business report to the ordinary general shareholders meeting.

The chairman of the audit committee shall submit its audit report to the representative director at least one (1) week prior to the day set for the annual general shareholders meeting.

The representative director shall maintain the documents specified in paragraph 1 and the audit report at the main office for at least five (5) years, and maintain copies thereof at the branches of the Company for at least three (3) years from one (1) week before the date of the ordinary general shareholders meeting.

The representative director shall give public notice of the documents stipulated in Article 477 of the KCC and the external auditors’ report immediately after the documents specified in paragraph 1 above have been approved at the general shareholders meeting.

Legal reserve;

Other statutory reserves;

Dividends;

Discretionary reserve; and

Other appropriation of retained earnings.

Dividends may be paid in either cash or shares.

If the Company issues class shares and dividends are to be paid in shares, common shares and/or class shares shall be paid for common shares and/or class shares following the resolution of the shareholders' general meeting. <Revised 2015.03.20>

Dividends in paragraph 1 above shall be paid to the shareholders or pledgees registered in the shareholders registry of the Company as of the end of each fiscal year.

The Company may pay, by resolution of the Board of Directors, quarterly dividends to shareholders of record as at the end of March, June and September (hereinafter, the "Quarterly Dividend Record Date") in accordance with Article 165-12 of the FSCMA.

The quarterly dividends mentioned in paragraph 1 above shall be decided by a resolution of the Board of Directors, which resolution shall be made within forty five (45) days from the relevant Quarterly Dividend Record Date.

The maximum amount to be paid as quarterly dividends shall be calculated by deducting the following amounts from the net asset amounts recorded in the balance sheet of the fiscal year immediately prior to the fiscal year concerned:
① The amount of capital, as of end of the immediately preceding period for the settlement of accounts; <Revised 2013.06.28>
② The aggregate sum of capital reserves and legal reserves, as of end of the immediately preceding period for the settlement of accounts;
③ The amount appropriated for dividends by resolution adopted at annual shareholders meeting convened at the immediately preceding period for the settlement of accounts;
④ Voluntary reserves accumulated for specific purposes in accordance with the relevant provisions of the Articles of Incorporation or by resolution of the general shareholders meeting of shareholders until the fiscal year immediately prior to the fiscal year concerned;
⑤ Sum of legal reserves to be accumulated for the fiscal year concerned based on the quarterly dividends;
⑥ Aggregate amount of possible quarterly dividend within the operating year; or <New 2009.03.30>
⑦ Unrealized profit set forth in the Act on Implementation of Commercial Act. <New 2013.06.28>

If the Company issues new shares (including those shares issued by way of conversion of reserves into capital stock, stock dividends, request of conversion of convertible bonds or exercise of warrants attached to bonds with warrants) prior to Quarterly Dividend Record Date, but after the commencement date of the fiscal year concerned, the new shares shall be deemed to have been issued at the end of the fiscal year immediately prior to the fiscal year concerned for the purpose of quarterly dividends. However, if the Company issues new shares after a Quarterly Dividend Record Date, the new shares shall be deemed to have been issued immediately after most recent Quarterly Dividend Record Date.

The quarterly dividends for preferred stock under Article 9 shall be subject to the same dividend rates as that of common stock. <Revised 2012.03.23>

The right to dividends shall be extinguished by statute of limitation if the right is not exercised for five (5) years.

After the expiration of the statute of limitation applicable period set forth in paragraph 1 above, unclaimed dividends shall become vested in the Company.