Basic Concept of Corporate Governance

Our management philosophy is “Connecting people and society to the future with a smile” and our management vision is “Becoming an infrastructure hub for a better life through the power of home appliances and ICT.” To realize the goals of our vision and philosophy, we chose the seven material issues (materiality) that we should address first.

The Company examined these issues from the viewpoints of their risks and opportunities, while incorporated them into our management strategies and business portfolio. We intend to continue improving our corporate governance system to better manage the value creation processes that we have built up, using our capital flow in a beneficial cycle to create more social and economic value.

History of Enhancing Corporate Governance

To improve the supervisory function of the Board of Directors and the execution divisions, the Company ensures diversity of the Board of Directors by increasing the number of independent outside directors, appointing female directors, and in other ways. At the same time, the Company is working on improving management effectiveness by establishing the Effectiveness Evaluation Committee for the Board of Directors, which is made up of a majority of outside directors, as well as the Nomination and Compensation Committee. We will continue to strengthen the monitoring function of the Board of Directors which supports the Company’s value creation processes.