2025 Corporate Governance Report Filing

Amended Disclosure. Corporate Governance Report Filing [000001] Corporate Governance Report Filing Statement [000002] I. Company Overview 1. Company Name: LX Semicon Co., Ltd. 2. Reporting Period and Report Reference Date: - Reporting period start: 2025-01-01 - Reporting period end: 2025-12-31 - Report reference date: 2025-12-31 2-1. Fiscal Year Periods (Current/Prior/Two Years Prior) - Current: 2025-01-01 to 2025-12-31 - Prior: 2024-01-01 to 2024-12-31 - Two Years Prior: 2023-01-01 to 2023-12-31 3. Persons Responsible for Preparing the Corporate Governance Report - Disclosure Officer: Lee Hyuk-ju, Division Head, Management Support Division, 02-6924-3114, hjlee@lxsemicon.com - Working-Level Staff: Park Jin-su, Team Leader, Finance Team, 02-6924-3114, jinsu.park@lxsemicon.com 4. Table 1-0-0: Company Overview - Largest shareholder(s): LX Holdings Co., Ltd. and 2 others - Largest shareholder ownership: 33.11% - Minority shareholder ownership: 66.89% - Industry: Non-financial - Main product: Driver IC - Subject to Fair Trade Act business group: Yes - Subject to Public Institution Operation Act: No - Business group name: LX Summary Financial Status (KRW millions) - Revenue (consolidated): Current 1,639,071 / Prior 1,865,622 / Two Years Prior 1,901,445 - Operating profit (consolidated): 108,856 / 167,077 / 129,036 - Net income (consolidated): 82,633 / 130,509 / 101,204 - Total assets (consolidated): 1,399,843 / 1,499,802 / 1,205,065 - Total assets (separate): 1,386,272 / 1,485,186 / 1,195,688 [000003] Compliance Status with Key Governance Indicators Compliance rate: 66.7% 5. Compliance with Key Governance Indicators (Current / Prior period / Notes): - General meeting convocation 4 weeks in advance: O / O — Feb 24, 2026 convocation notice; Mar 26, 2026 AGM - Electronic voting implemented: O / O — E-voting adopted - AGM held outside concentrated dates: O / O — Not held on the most concentrated date - Dividend predictability provided: O / O — Articles of Incorporation amended for dividend procedure improvement; record date (Feb 27, 2026) set after dividend confirmation date (Feb 5, 2026) - Dividend policy and implementation plan notified to shareholders at least annually: X / X — No formal written dividend policy disclosed, but an implementation plan is established and communicated to shareholders through disclosures - CEO succession policy established and operated: O / X — From 2026, succession policy established, formalized, and operated - Risk management and internal control policy established and operated: O / O — Compliance control standards, internal accounting management rules, and disclosure information management rules in place - Chairperson of the board is an independent director: X / X — Considering industry understanding and management efficiency, CEO concurrently serves as board chair - Cumulative voting system adopted: X / X — Excluded under Articles of Incorporation - Policy established to prevent appointment of executives responsible for damaging corporate value or violating shareholder rights: O / X — Executive HR management rules amended (board approval Apr 30, 2026) - All board members not of a single gender: X / X — Currently single-gender, with plans to consider diverse candidates for future appointments - Independent internal audit department (support organization) established: X / X — Audit committee support organization exists but does not fully meet independence requirements due to organizational structure - Accounting or finance expert on the internal audit body: O / O — One audit committee member qualifies as an accounting or finance expert under Article 37(2) of the Commercial Act Enforcement Decree - Internal audit body meets with external auditor at least quarterly without management present: O / O — Audit committee holds quarterly meetings with external auditors without management present - Procedures ensuring internal audit body's access to important management information: O / O — Per audit committee regulations, the committee audits accounting and operations and may request business reports or investigate company operations and financial status at any time [000004] II. Corporate Governance Status [100000] 1. General Corporate Governance Policy a. Detailed explanation of the company's corporate governance policy direction and key considerations: The company recognizes that the soundness and transparency of its governance must be ensured to sustain corporate growth, enhance corporate value, and protect the rights and interests of shareholders and other stakeholders. Accordingly, the company practices 'board-centered management' and strives to implement a corporate governance structure that secures management transparency, soundness, and stability, while pursuing checks and balances. To establish sound governance and provide a check on management's executive authority, outside directors constitute a majority of the board (currently 4 out of 7 total directors are outside directors). The company's outside directors are composed of industry experts and accounting/finance experts, who, based on diverse backgrounds and expertise, conduct substantive review of board agenda items and efficient monitoring of management's execution of duties. These outside directors are selected transparently and fairly after thorough verification of legal disqualifications and any conflicts of interest with the company. Important decisions of the company are made through the board, and sufficient support is provided for directors' execution of their duties. [Translation truncated]