SUSTAINABILITY

Korea Investment Private Equity aims to create a positive social impact and realize long-term value through a sustainable business management.

Stewardship code

"Korea Investment Private Equity Co., Ltd. (hereinafter referred to as 'Korea Investment Private Equity') established and implemented the 'Korea Investment Private Equity Stewardship Code' on June 20, 2019, based on the seven principles outlined in the 'Principles on Custodian Responsibility of Institutional Investors' published by the Korea Corporate Governance Service.

Principle 1 Institutional investors shall establish clear policies and disclose them to fulfill their responsibilities as trustees who manage and operate third-party assets, including those of customers and beneficiaries.: Korea Investment Private Equity, as the operator of a private equity fund (PEF) established in accordance with the Capital Market and Financial Investment Business Act (hereinafter referred to as the 'FINANCIAL INVESTMENT SERVICES AND CAPITAL MARKETS ACT'), acknowledges its role as a trustee responsible for prioritizing the interests of limited liability members (hereinafter referred to as 'investors') in the operation of the PEF.

Korea Investment Private Equity is committed to complying with the FINANCIAL INVESTMENT SERVICES AND CAPITAL MARKETS ACT in the management of PEF assets and aims to enhance the value of invested companies (hereinafter referred to as 'portfolio companies') through active engagement, thereby contributing to maximizing the interests of investors and industrial development.

To fulfill this trustee responsibility, Korea Investment Private Equity diligently adheres to procedures outlined in laws, the PEF articles of association, and internal regulations of Korea Investment Private Equity throughout the entire process, including investment origination, investment review, investment execution, post-investment management, and exit. The decision-making process at each stage takes into consideration not only quantitative and financial matters such as the operational performance and financial structure of portfolio companies but also qualitative and non-financial aspects, including business strategies, products and services, governance, corporate social responsibility, and sustainability of portfolio companies.

Korea Investment Private Equity fulfills its trustee responsibilities by actively participating in the management of portfolio companies. Typically, it appoints members of the board of directors or management directly, constantly monitors the business situation, actively participates in governance, and exercises voting rights vigorously at shareholder meetings. Korea Investment Private Equity, in the operation of private equity funds (PEFs), recognizes the importance of identifying and preventing actual or potential conflicts of interest among Korea Investment Private Equity, its employees, PEFs, investors, and affiliated companies, or situations where conflicts of interest are likely to arise. To ensure investor protection and prevent issues, Korea Investment Private Equity conducts pre-investment reviews of internal regulations and PEF articles of association to assess potential conflicts of interest and take appropriate measures when conflicts of interest are identified or suspected.

Principle 2 Institutional investors should establish and disclose clear and effective policies for addressing actual or potential conflicts of interest they may face in the course of fulfilling their fiduciary duties.: Korea Investment Private Equity (Korea Investment Private Equity) recognizes the importance of identifying, preventing and mitigating realized or potential conflicts of interest among stakeholders when operating a Private Equity Fund (PEF) to fulfill their fiduciary responsibilities.

Korea Investment Private Equity restricts transactions that may give rise to conflicts of interest in accordance with internal control standards. In situations involving conflicts of interest or situations that may cause conflicts, consultation with the Risk Management Department is required before proceeding with the transaction.

Through internal control standards, employees are prohibited from pursuing their own interests ahead of the company's interests when performing their duties. Furthermore, in cases where conflicts of interest are a concern among the company, investors, funds, and affiliated companies, prior consultation with the Risk Management Department is required to take measures to prevent issues related to investor protection.

When the possibility of conflicts of interest is acknowledged, this fact must be disclosed to the relevant investors. After taking necessary measures to reduce the likelihood of such conflicts and ensuring that the investors' interests are not compromised, investments, recoveries, and transactions stipulated by relevant laws and regulations should be carried out. In accordance with stipulated relevant laws and regulations, if it is deemed difficult to reduce the possibility of conflicts of interest, investments, recoveries, or transactions should be prohibited.

In addition to internal control standards, the rules and regulation of our PEF establishment include provisions related to conflict transactions. Korea Investment Private Equity faithfully fulfills the obligations and responsibilities related to conflicts of interest as specified in the articles of association when operating PEF as General Partners.

Principle 3 Institutional investors shall periodically review invested companies to enhance their long-term value, thereby preserving and increasing the value of investor assets.: As a professional private equity fund general partner, Korea Investment Private Equity aims to maximize investor returns through the enhancement of the value of invested companies via active engagement.

Korea Investment Private Equity not only exercises voting rights but also directly participates in the boards of directors of invested companies to actively engage in important decision-making processes. Through board participation, Korea Investment Private Equity assesses important matters and the progress of invested companies, actively provides opinions, and exercises voting rights to enhance corporate value.

Korea Investment Private Equity conducts frequent reviews of invested companies to prevent and address issues that could deteriorate corporate value. These reviews aim to prevent any deterioration of corporate value and provide measures to safeguard corporate value.

The dedicated operating personnel for invested companies engage in ongoing discussions with the companies regarding their business operations and directions. They also provide regular reports on important matters, such as major contract executions, financial transactions, and significant investments by invested companies."

Furthermore, regular checks are conducted on the financial status, performance, and other aspects of invested companies. Quarterly reviews are conducted to examine key developments of invested companies and PEFs, and internal reporting is carried out. The examination of invested companies encompasses both quantitative and financial factors as well as qualitative and non-financial factors, including personnel management, compliance with business-related regulations, and potential litigation, to ensure comprehensive and thorough assessments.

Principle 4 Institutional investors shall strive to establish internal guidelines regarding the timing, process, and methods for carrying out activities to fulfill their trustee responsibilities, aiming to foster understanding with invested companies whenever necessary.: Korea Investment Private Equity recognizes the importance of establishing mutual understanding with invested companies in fulfilling the responsibility of enhancing corporate value for the benefit of investors.

Korea Investment Private Equity actively engages with invested companies by having dedicated personnel participate in their boards of directors or seconding individuals designated by the company to the management of invested companies. Collaboration efforts are made to jointly set goals during the establishment of business plans and ensure the presence of appropriate compensation systems for invested companies and the company.

Regular checks of invested companies' performance and major issues are conducted, and ongoing monitoring of company situations is performed to collaboratively address matters concerning invested companies.

Korea Investment Private Equity actively participates in the development of invested companies' business plans, sets goals collaboratively, and ensures the presence of appropriate compensation systems for invested companies and Korea Investment Private Equity, fostering mutual understanding between the two parties.

Principle 5 Institutional investors shall establish and disclose policies, including guidelines, procedures, and detailed criteria, for exercising voting rights to fulfill the duty of faithful voting. They shall also disclose the specific details of their voting rights exercises and the reasons for such exercises to enable an assessment of the appropriateness of their voting rights exercises.: In exercising voting rights, Korea Investment Private Equity assesses decisions based on whether they contribute to the ongoing growth and enhancement of corporate value, ultimately maximizing the benefits of investors.

Korea Investment Private Equity's decision-making regarding the exercise of voting rights is based not only on sufficient information gathering and internal discussions related to agenda items but also on the risk assessments conducted by the Risk Management Division, considering the potential occurrence of conflicts of interest. While Korea Investment Private Equity does not participate in external advisory services for voting rights exercutions, external advisory agencies may be consulted when necessary to make voting rights exercise decisions.

Korea Investment Private Equity provides reports to investors, including the details of voting rights exercises, as part of investor reporting. However, due to the nature of PEFs, such information is not publicly disclosed.

Principle 6 Institutional investors shall periodically report to clients and beneficiaries on their voting rights exercises and activities to fulfill their trustee responsibilities.: Korea Investment Private Equity acknowledges the importance of responsibility throughout the entire PEF operation process and ensures that voting rights exercises and trustee responsibilities are in line with the principles outlined in this Stewardship Code.

Korea Investment Private Equity reports on voting rights exercises and trustee responsibility activities to investors within the scope permitted by the FINANCIAL INVESTMENT SERVICES AND CAPITAL MARKETS ACT, through events such as shareholder meetings and regular investment reporting meetings.

Principle 7 Institutional investors shall possess the necessary capabilities and expertise to actively and effectively fulfill their trustee responsibilities.: Korea Investment Private Equity is equipped with a team of skilled professionals who possess the expertise and experience required to fulfill the trustee responsibility of maximizing investor returns. These professionals are responsible for identifying promising invested companies, enhancing the value of these companies, and maximizing profits for investors.

Korea Investment Private Equity invests in the continuous development of its employees' competencies. This is achieved through participation in seminars, external training programs, support for obtaining relevant certifications, and educational subsidies. These efforts ensure that our staff maintains the necessary expertise to fulfill their roles effectively.

Additionally, Korea Investment Private Equity collaborates with professional institutions such as law firms and accounting firms to enhance the expertise required to fulfill trustee responsibilities, prevent conflicts of interest, and uphold ethical obligations.

To further strengthen the commitment to fulfilling trustee responsibilities, Korea Investment Private Equity has established internal regulations not only related to PEF operations but also addressing conflict of interest prevention, ethical obligations, and other internal control standards, thereby creating a robust management and supervision system for ensuring complete compliance with trustee responsibilities."

CRO

Seoungju Lee

Risk Management Division / 02-6951-4417

sjlee42@koreainvestmentpe.com

Supervisor

Jiyong Choe

Risk Management Division / 02-6951-4474

jychoe@koreainvestmentpe.com