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GOVERNANCE STRUCTURE

MCNEX corporate governance is organised by due and transparent procedures based
on commercial law and the Articles of Association.

MCNEX is committed to establishing and continuously developing a transparent business environment and governance structure to enhance long-term sustainable growth and increase value for shareholders and stakeholders.

Company	MCNEX Co., Ltd
Established	2004-12-22
Listed	2012-07-25(KOSDAQ) 2021-07-06(KOSPI)
CEO	Dong Uk. Min
Business Area	Manufacturing

Capital	6.7 Million USD
Settlement Term	December
Total Capital	241 Million USD
H/Q	13-39, Songdogwahak-ro 16beon-gil, Yeonsu-gu, Incheon, Republic of Korea. Postcode:21984
Tel.	+82 2-2025-3600

Best Practices for Corporate Governance
Best Practices Recommendations	Status	Remarks
Introduction of corporate governance charter	Implemented
Introduction of the Code of Ethics for Employees	Implemented
Adoption of concentrated voting system and announcement of adoption	Not Implemented
Disclosure of the majority of the composition of the board of directors to outside directors	Implemented	3 out of 3(100%) outside directors
Separation or appointment of the CEO and the Charman of the Board of Directors Appointment of an outside director	Not Implemented
Disclosure of BOD activity details, attendance rate, and pros and cons of major agenda items	Implemented
Composition of the Outside Director Candidate Recommendation Committee	Implemented
Compensation Committee Composition	Not Implemented
Disclosure on the composition of all outside directors on the audit committee	Implemented
Introduction of regulations on the roles and operating procedures of the BOD and various committees	Implemented
uying director's liability insurance at the company's expense	Not Implemented	Under Revview
Evaluation of Board Activities	Not Implemented
Maintaining the independence of external auditors	Implemented
Accuracy and completeness certification of the financial reporting of the CEO and the person in charge of finance	Implemented
Explanation of differences from best practices	Implemented
Korean and English disclosure of audit reports and important occasional disclosures	Partially Implemented	Official announcement in Korean only.

BOARD OF DIRECTORS

MCNEX practices transparent management with responsible management
centred on the Board of Directors.

MCNEX is committed to the principle of independence and diversity of expertise for the composition of the
Board of Directors, and appoints experts in each area to ensure board expertise.

Stockholders' General Meeting
- Board of Directors
  - Audit Committee
  - Internal Transaction Committee
  - Recommendation Committee

BOARD STRUCTURE AND COMMITEE

Category	Name	Position/Expertise	Gender	Date of appointment	Term	Committee	Key Experiences
Executive Director	Dong Uk. Min	CEO. Board Chair	male	2024.03	3 years		Dongguk University Chairman of the Global Leading Companies Association
Executive Director	Bo Hong. Seo	R&D, Purchase	male	2024.03	3 years		Soonchunhyang University Former) Hyundai Electronics
Non-executive Director	Eun young. Lee	Accounting, Finance	female	2024.03	3 years	Chairman of the Audit Committee Member of the Insider Trading Committee Member of the Non-Executive Director Candidate Recommendation Committee	Pohang University of Science and Technology Hanul Accounting Corporation
	Sang oh. Lee	Finance, Corporate Advisory	male	2024.03	3 years	Chairman of the Internal Transactions Committee Member of the Audit Committee Member of the Non-Executive Director Candidate Recommendation Committee	Korea University Able IPO
	Han seok. Oh	Strategy, Technology	male	2023.03	3 years	Chairman of the Non-Executive Director Candidate Recommendation Committee Member of the Audit Committee Member of the Internal Transactions Committee	Hanyang Graduate School Dankook University Future Convergence Research Institute

SHAREHOLDERS

STATUS OF ISSUED STOCKS (2023.12.31 )
Category	Stocks	Number of shares	Total face value
Total number of issued shares	Common Stock	17,977,732	₩ 10,786,639,200
Number of treasury shares	Common Stock	360,000	₩ 216,000,000
Number of shares outstanding	Common Stock	17,617,732	₩ 10,570,639,200

DIVIDEND INDICATOR (2023.12.31 )
Category	2019	2020	2021	2022	2023
The Sum of Cash Dividends(one million won)	8,817	8,817	8,915	8,842	10,571
Dividend per share(won)	500	500	500	500	600
(Consolidated) Cash dividend payout ratio (%)	10.4	23.9	22.6	38.5	37.9
Dividend Yield(%)	1.7	1.3	0.9	1.8	2.0

* Based on common stock (no preferred stock)

ETHICAL MANAGEMENT

Establish systems and systems to practice corporate ethics
and practice ethical management

Code of Ethics

MCNEX aims to establish an ethical corporate culture through transparent management and continuous innovation,
and to grow together with all stakeholders through honest, fair, and rational business activities. To achieve this goal,
we have established Code of Ethics and practice guide, and we use them as the criteria for decision-making
and behavior in all our management activities.

Customer
Shareholder
Employee
Supplier
Society

Code of Ethics Code of Ethics Practice Guide Supplier Code of Conduct

ETHICAL RISK MANAGEMENT: MCNEX mandates the signing of an ethics code and integrity pledge by new employees upon entry. Additionally, we have constructed a checklist for key ethical management risks such as bullying, bribery, conflicts of interest, and personnel matters, and conduct integrity surveys among employees.

ETHICAL RISK MORNITORING: MCNEX operates an ESG Hotline System to monitor ethical risks. Through this, we proactively identify negative risks in the ethical area, preventing incidents from escalating and spreading. Furthermore, we address vulnerabilities in ethical management through improvement measures to eliminate risk factors.

ESG HOTLINE SYSTEM