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Corporate Governance

Chapter 6 Accounting

Article 47 (Fiscal Year)

The fiscal year of the Company shall commence on January 1 and end on December 31 of eachyear.

Article 48 (Disposition of Profit)
  • The Company shall dispose of the profits (including net earned surplus forwarded) of eachfiscal year in the following order of priority:
    • 1. Earned surplus reserves;
    • 2. Other statutory reserves;
    • 3. Dividends;
    • 4. Voluntary reserves;
    • 5. Other appropriation of retained earningss; and
    • 6. Earned surplus carried forward to next fiscal year.
Article 48-2 (Transfer to Capital of Capital Reserve)

If new shares are to be issued with the transfer to capital of capital reserve, the Company mayissue new shares to be allocated for common shares as common shares or class shares, and newshares to be allocated for class shares shall be the same class shares, in accordance with theresolution of the Board of Directors.

Article 49 (Dividends)
  • ① Dividends may be paid in cash, shares or other properties.
  • ② Dividends under Paragraph 1 shall be paid to the shareholders or pledgees who areregistered in the Register of Shareholders as of the end of each fiscal year.
  • ③ In case the dividends are distributed in the form of shares, the Company may issuenew shares to be allocated to common shares as common shares or class shares inaccordance with the resolution of the general meeting of shareholders, and new sharesto be allocated to class shares shall be the same class shares.
Article 49-2 (Quarterly Dividends)
  • ① The Company may pay quarterly dividends to shareholders who are registered as ofrecord date of the end of March, June and September of each fiscal year in accordancewith Article 165-12 of the Financial Investment Services and Capital Market Act. Thequarterly dividends shall be paid in cash.
  • ② The quarterly dividends in Paragraph 1 above shall be decided by a resolution of theBoard of Directors, which resolution shall be made within forty five (45) days fromthe relevant quarterly dividend record date.
  • ③ The maximum amount to be paid as quarterly dividends shall be calculated bydeducting the following amounts from the net asset amounts recorded in the balancesheet of the fiscal year immediately prior to the fiscal year concerned:
    • (1) Amount of capital, as of the end of the immediately preceding period for thesettlement of accounts;
    • (2) Aggregate sum of capital reserves and legal reserves, as of end of theimmediately preceding period for the settlement of accounts;
    • (3) Unrealized profit set forth by the Enforcement Decree of the Commercial Act;
    • (4) Amount appropriated for dividends by the general meeting of shareholders atthe immediately preceding period for the settlement of accounts;
    • (5) Voluntary reserves accumulated for specific purposes in accordance with theresolution of the general meeting of shareholders or the relevant provisionsof the Articles of Incorporation until the fiscal year immediately prior to thefiscal year concerned;
    • (6) Sum of legal reserves to be accumulated for the fiscal year concerned basedon the quarterly dividends;
    • (7) Aggregate amount of quarterly dividends if any during the fiscal year concerned.
  • ④ If the Company issues new shares (including conversion of reserves into capital share,stock dividends, request of conversion of convertible bonds or exercise of warrantsattached to bonds with warrants) prior to the quarterly dividend record date underParagraph 1 above, but after the commencement date of the fiscal year concerned, thenew shares shall be deemed to have been issued at the end of the fiscal yearimmediately prior to the fiscal year concerned for the purpose of quarterly dividends.
  • ⑤ <Deleted>
Article 49-3 (Retirement of Shares)


Article 50 (Statute of Limitation Period for Claims for Payment of Dividends)
  • ① The claim for payment of dividends shall expire by statute of limitation if the right isnot exercised for five (5) years.
  • ② In the case of the expiration due to the statute of limitation set forth in Paragraph 1above, unclaimed dividends shall become vested in the Company.
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