Article 1 (Purpose)

The purpose of this environmental standard is to assist the SD BIOSENSOR INC. (hereinafter referred to as the "SD BIOSENSOR") by presenting the direction of desirable environmental management that can be trusted internally and externally from a future-oriented perspective in performing related activities. This environmental standard includes principles and standards for environmental management in accordance with domestic and foreign environmental policies and practices, accepts demands under current laws and regulations, and also presents the direction of desirable environmental management that the company should pursue from a future-oriented perspective.

Article 2 (Leadership and Governance)

1. 1. Environmental management leadership

   1. 1.1 The CEO of the SD BIOSENSOR shall express his/her firm commitment to environmental management and show leadership to perform it.

   2. 1.2 The SD BIOSENSOR establishes an environmental policy that expresses the will of the CEO to practice environmental management, and actively discloses it internally and externally.



2. 2. Environmental management strategy and goals

   1. 2.1 The SD BIOSENSOR establishes an environmental management promotion strategy, and the environmental management strategy is integrated with the company's management strategy and policy.

   2. 2.2 The SD BIOSENSOR establishes environmental goals for the execution of environmental management and establishes and manages detailed performing plans to achieve this.



3. 3. Environmental management governance

   1. 3.1 The SD BIOSENSOR establishes, continuously executes and maintains decision-making systems to execute enterprise-wide environmental management systems and major activities.

   2. 3.2 The SD BIOSENSOR reports major issues such as the goals, activities, and achievements of environmental management to the board of directors, and the board periodically reviews and manages environmental management activities.

   3. 3.3 The SD BIOSENSOR allocates appropriate human resources to perform and maintain the environmental management system, and establishes and operates a working-level organization dedicated to environmental management.

   4. 3.4 The SD BIOSENSOR endeavors to raise awareness of environmental management and strengthen the capabilities of employees by providing environmental information and education and raise the level of environmental awareness of executives and employees by actively participating in corporate environmental management activities.

Article 3 (Risk Management)

1. 1. Identification, evaluation, and management of environmental risks and opportunities

   1. 1.1 The SD BIOSENSOR identifies the major environmental risks and opportunities that may affect management activities.

   2. 1.2 The SD BIOSENSOR improves the efficiency of environmental management by selecting priorities for major environmental risks and opportunities.

   3. 1.3 Major environmental risks and opportunities are appropriately reflected in the establishment of environmental management policies or strategies and are integrated with management strategies from a short, medium, and long-term perspective.



2. 2. Risk management system

   1. 2.1 The SD BIOSENSOR establishes and executes a management system to cope with identified environmental risks.

   2. 2.2 The SD BIOSENSOR establishes and executes appropriate response procedures to prevent and systematically manage potential emergencies and accidents.

   3. 2.3 The SD BIOSENSOR establishes a management system for environmental violations and environmental accidents.

Article 4 (Operation and Performance)

1. 1. Environment-friendly products and services

   1. 1.1 The SD BIOSENSOR carries out eco-friendly design activities to minimize the negative impact of the product on the environment. In addition, we consider global or community environmental issues in the stage of designing and establishing management strategies of the SD BIOSENSOR.

   2. 1.2 The SD BIOSENSOR plays a leading role in the spread of sustainable production and consumption by supplying eco-friendly products and services made through eco-friendly design to the market.

2. 
   2. Eco supply chain

   1. 2.1 The SD BIOSENSOR establishes an eco-friendly supply chain management system to improve the environmental performance of the supply chain and perform product accountability.

   2. 2.2 The SD BIOSENSOR strives to improve not only its environmental performance but also its partners' environmental performance.

   3. 2.3 As a producer and consumer, the SD BIOSENSOR contributes to the expansion of consumption of eco-friendly products.



3. 3. Eco-friendly workplace

   1. 3.1 The SD BIOSENSOR performs an eco-friendly workplace that develops, applies and executes eco-friendly production activities suitable for its characteristics.

   2. 3.2 The SD BIOSENSOR continuously performs activities such as improving energy efficiency and reducing energy use, and seeks various activities to cope with climate change, such as developing greenhouse gas reduction technology, expanding the use of renewable energy, and maintaining carbon sinks in forests.

   3. 3.3 The SD BIOSENSOR maximizes the efficiency of using natural resources by reducing the use of raw, subsidiary, and water and establishing resource-circulating businesses.

   4. 3.4 The SD BIOSENSOR is responsible for minimizing the negative impact of the ecosystem through by-products of production activities, check management activities, pollutants and emission sources related to products and services, and continue to carry out activities to minimize the generation and discharge of environmental pollutants in the production and manufacturing process.

   5. 3.5 The SD BIOSENSOR minimizes the generation of waste and wastewater from business activities and recycles the generated waste to dispose of it legally.

   6. 3.6 The SD BIOSENSOR systematically manages the chemicals it handles and actively responds to regulations related to chemicals. In addition, we are fully aware of the hazards and risks of hazardous chemicals, reduce the use of hazardous chemicals, and make efforts to prevent chemical accidents.



4. 4. Performance management

   1. 4.1 In order to establish and perform eco-friendly production goals and plans the SD BIOSENSOR manages the use of resources such as raw materials, components, water, and energy, and emission data such as waste, wastewater and environmental pollutants generated in the production process and the final stage.

   2. 4.2 The SD BIOSENSOR establishes an environmental performance system that can systematically analyze the environmental management level of the SD BIOSENSOR in consideration of industrial characteristics and circumstances based on environmental performance and data.

   3. 4.3 The SD BIOSENSOR establishes standards and guidelines suitable for industrial characteristics and circumstances in order to continuously ascertain and improve the outcomes of environmental management, and establishes and performs an internal review system according to the purpose of environmental review.

   4. 4.4 The results of the environmental performance evaluation and internal environmental review of the SD BIOSENSOR are reported to the decision makers and appropriate measures are taken.



5. 5. Accounting of environment

   1. 5.1 The SD BIOSENSOR may quantitatively measure environmental costs and benefits generated from environmental management activities and provide them to interested parties in connection with the sustainability accounting framework.

   2. 5.2 The SD BIOSENSOR recognizes the need to internally measure and manage carbon risks in order to respond to climate change policies such as carbon tax and emission trading systems.



6. 6. Ecosystem conservation

   1. 6.1 The ecosystem is the basis of clean water and air, food security and human health, and biodiversity is an important factor in terms of protecting not only the ecosystem but also the survival and genetic diversity of animals and plants. Therefore, SD BIOSENSOR recognizes the importance of ecosystems that are sources of forest resources, water resources, biological resources, and marine resources, and strives to perform activities to preserve them.

Article 5 (Communication of Interested Parties)

1. 1 Setting up the interested parties

   1. 1.1 The SD BIOSENSOR identifies the interested parties involved in management activities and establishes key interested parties for the implementation of environmental management.

2. 2. Responsive action to interested parties

   1. 2.1 The SD BIOSENSOR actively collects various requirements and opinions from domestic and foreign interested parties on environmental management. To this end, the SD BIOSENSOR builds an appropriate means of communication to increase accessibility to interested parties and promote mutual exchanges.

   2. 2.2 The SD BIOSENSOR will continue its efforts to respond to global environmental issues such as responding to climate change by voluntarily participating in domestic and international initiatives based on the analysis of risk and opportunity factors.



3. 3. Disclosure of environmental information

   1. 3.1 The SD BIOSENSOR strives to disclose key matters and environmental performance related to environmental management activities to interested parties.

   2. 3.2 The SD BIOSENSOR determines the content system to provide useful environmental information to interested parties, and ensures that the environmental information it creates meets the requirements for clarity, comparability, consistency, and reliability.

Article 6 (Purpose)

This social standard provides guidance for voluntary participation and improvement of social responsibility activities of the SD BIOSENSOR. Therefore, this social standard aims to establish standards for a socially responsible enterprise by presenting global standards considering the characteristics of Korean companies from a future-oriented perspective, and ultimately to maximize the long-term value of the SD BIOSENSORs.

Article 7 (Leadership and Governance)

1. 1. Leadership

   1. 1.1 The CEO of the SD BIOSENSOR expresses his/her firm commitment to social responsibility management and shows leadership to perform it.

   2. 1.2 The CEO of the SD BIOSENSOR has governance for the practice of social responsibility management and continues to improve it.



2. 2. Strategy and Policy

   1. 2.1 The SD BIOSENSOR reflects social responsibility in corporate strategies to build effective social responsibility management governance.

   2. 2.2 The SD BIOSENSOR prepares effective integration of social responsibility management within the business strategy in consideration of the company's business and environmental changes.

   3. 2.3 The SD BIOSENSOR measures and manages the economic, social, and environmental performance created by business activities that reflect social responsibility management strategies.



3. 3. Organization and decision making

   1. 3.1 The organization with decision-making authority within the company will be involved. in order to ensure the effectiveness of social responsibility management

   2. 3.2 The SD BIOSENSOR provides procedures, systems, structures, and mechanisms for performing social responsibility principles and practices to ensure the effectiveness of the social responsibility management decision-making organization.



4. 4. Corporate culture

   1. 4.1 The SD BIOSENSOR supports the faithful implementation of social responsibility management by forming a corporate culture that reflects social responsibility.

   2. 4.2 The CEO of the SD BIOSENSOR forms a corporate culture that conforms to the long-term strategy of the company, and the board evaluates and monitors it.

Article 8 (Non-financial Risk Management)

1. 1. Integrated management of non-financial risks

   1. 1.1 The board of directors of the SD BIOSENSOR makes management decisions considering both financial and non-financial risks.

   2. 1.2 The board of directors of the SD BIOSENSOR supervises whether non-financial risks as well as financial violations are being faithfully managed.

   3. 1.3 The SD BIOSENSOR integrates and manages non-financial risks into enterprise risk management.



2. 2. Awareness of non-financial risks and opportunities

   1. 2.1 The SD BIOSENSOR identifies non-financial issues to identify risk and opportunity factors that may affect the enterprise.

   2. 2.2 Among the non-financial issues identified by the SD BIOSENSOR, risk factors are prioritized according to the possibility and influence of occurrence, and opportunity factors are determined to be utilized and reflected in the strategy.



3. 3. Responding to non-financial risks

   1. 3.1 The SD BIOSENSOR prepares measures to minimize negative impacts based on the response priorities of non-financial risks.

   2. 3.2 The SD BIOSENSOR evaluates whether the non-financial risk response measures have effectively achieved their intended goals and revises the strategy according to the results.

   3. 3.3 The SD BIOSENSOR tries to disclose decision-making systems and responses to major non-financial risks to interested parties.

Article 9 (Operation and Performance)

1. 1. Human rights

   1. 1.1 The executives of the SD BIOSENSOR express their commitment to human rights management and disclose it to internal and external interested parties.

   2. 1.2 The SD BIOSENSOR prepares policies on human rights issues and shares them with interested parties.

   3. 1.3 The SD BIOSENSOR identifies the actual and potential human rights risks that may arise in business activities.

   4. 1.4 Based on the results of the human rights impact assessment, the SD BIOSENSOR prepares measures to prevent and mitigate risks and address human rights risks.

   5. 1.5 The SD BIOSENSOR provides a channel for interested parties to frequently communicate human rights-related grievances.



2. 2. Labor practices

   1. 2.1 The SD BIOSENSOR strives to promote employment and maintain attracting talent in consideration of diversity. We also provide a fair performance management system to ensure proper wages.

   2. 2.2 The SD BIOSENSOR respects and guarantees the three labor rights stipulated by the Constitution and the basic rights of workers stipulated by the International Labor Organization (ILO), and forms sound labor-management relations through sincere and effective dialogue between labor and management.

   3. 2.3 The SD BIOSENSOR provides workers with various opportunities for learning and growth, contributing to enhancing their individual capabilities and improving their quality of life.

   4. 2.4 The SD BIOSENSOR provides a safe and healthy working environment for its employees and its partners.

   5. 2.5 The SD BIOSENSOR improves the way of working and culture, ensuring that workers have a work-life balance and a quality life.



3. 3. Fair operation practice

   1. 3.1 SD BIOSENSOR fulfill their social responsibilities by establishing supply chain management strategies to support shared growth and managing supply chain risks in an integrated manner.

   2. 3.2 The SD BIOSENSOR promotes fair trade, free competition, and complies with the basic order of economic activity.

   3. 3.3 The SD BIOSENSORs carry out mutual cooperation activities between companies from a mid- and long-term perspective and seek mutual growth to create sustainable growth engines and jobs, and to establish an economic foundation for a fair society.



4. 4. Sustainable consumption

   1. 4.1 The SD BIOSENSOR strives to prevent consumers from being unfairly damaged by unfair trading practices.

   2. 4.2 The SD BIOSENSOR establishes an effective consumer protection system from risk factors for products and services.

   3. 4.3 The BIOSENSOR provides a channel for consumers to freely express their opinions on the company's business activities and actively strives to ensure that consumers' opinions are reflected.

   4. 4.4 The SD BIOSENSOR establishes a system that allows consumers to receive prompt and fair compensation for damages caused by their products and services.

   5. 4.5 SD BIOSENSOR develops, sells and provides products and services that can realize social values. This satisfies the social needs of consumers and generates profits in a sustainable manner.



5. 5. Protection of information

   1. 5.1 The SD BIOSENSOR provides appropriate systems and procedures to protect information assets.

   2. 5.2 The SD BIOSENSOR collects and utilizes personal information in a legitimate manner to protect the privacy of individuals in order to comply with the Privacy Act and to ensure effective self-regulation.

   3. 5.3 The SD BIOSENSOR transparently discloses activities related to privacy and guarantees the legitimate freedom and rights of the data subject.



6. 6. Participation and development in the community

   1. 6.1 The SD BIOSENSOR identifies the needs of the community, establishes a participatory strategy that can coexist with the community and develop with each other.

   2. 6.2 The SD BIOSENSOR encourages employees to participate in community activities and measures and manages the resources and performance spent on community participation activities.

   3. 6.3 The SD BIOSENSOR voluntarily participates in social responsibility management programs at home and abroad to enhance the level of social responsibility management.

Article 10 (Communication of Interested Parties)

1. 1 Participation and communication of interested parties

   1. 1.1 The SD BIOSENSOR develops and maintains communication methods that can lead to the active participation of interested parties.



2. 2. The SD BIOSENSOR discloses information related to social responsibility management.

Article 11 (Purpose)

This governance standard aims to maximize corporate value by enhancing the transparency and efficiency of the SD BIOSENSOR from a future-oriented perspective. The SD BIOSENSOR recognizes the need for transparent and responsible management to gain trust from shareholders and other interested parties and wants to establish a management system in which creative and progressive entrepreneurship can be exercised on the basis of corporate transparency and responsible management. Furthermore, the SD BIOSENSOR recognizes that there are various interest groups in companies and adjusts the interests of a wide variety of interested parties in a reasonable and fair manner to reduce the cost burden and strengthen corporate competitiveness. In addition, companies and their members fulfill their social responsibilities with a strong sense of ethics for the long-term development of the SD BIOSENSOR.

Article 12 (Leadership of Board of Directors)

1. 1 The role and responsibility of the board of directors

   1. 1.1 The board of directors of the SD BIOSENSOR creates shareholder value and contributes to sustainable growth with the aim of improving mid-to long-term corporate value.

   2. 1.2 The board of directors and management of the SD BIOSENSOR exercise their leadership to establish corporate goals and management strategies and to create a corporate culture that pursues sustainability in order to promote sustainable growth and mid- to long-term improvement in corporate value, and to improve profitability and capital efficiency.

   3. 1.3 The board of directors of the SD BIOSENSOR has comprehensive authority over corporate management and performs management decision-making functions and management supervision functions of the company.

   4. 1.4 The board of directors of SD BIOSENSOR protects the interests of general shareholders from unfair internal transactions and self-transactions by other shareholders, including controlling shareholders.

   5. 1.5 The board of directors of the SD BIOSENSOR establishes and operates internal control and risk management systems for systematic risk management.

   6. 1.6 The SD BIOSENSOR's board of directors ensures that decisions related to business groups, such as transactions with affiliates, do not unfairly infringe on the interests of all shareholders of the company and the company concerned.

   7. 1.7 The SD BIOSENSOR's board of directors monitor and supervise corporate management rights defenses so that they are not carried out at the expense of the interests of companies and shareholders to maintain the management rights of some shareholders or management.

   8. 1.8 The board of directors of the SD BIOSENSOR designs remuneration policies and practices for key management to match corporate sustainability. It also discloses the main points and the remuneration of major management.

   9. 1.9 The board of directors of the SD BIOSENSOR establishes standards and procedures to fairly evaluate the management activities of management and directors. Also, the evaluation results are disclosed transparently and appropriately reflected in the remuneration.



2. 2. The role and responsibility of directors

   1. 2.1 The director of the SD BIOSENSOR shall perform his/her duties by fulfilling the duty of due care of a good manager. Directors make rational decisions with sufficient time and effort based on sufficient information.

   2. 2.2 The director of the SD BIOSENSOR shall not divulge confidential information of an enterprise he/she has learned in the course of performing his/her duties to the outside or use it for his/her own or a third party's benefit.

   3. 2.3 The director of the SD BIOSENSOR shall not exercise his/her authority for the benefit of himself/herself or a third party, and shall always pursue the results in the best interests of the enterprise and shareholders.

   4. 2.4 When the director of the SD BIOSENSOR violates statutes or articles of association or neglects his/her duties, he/she shall be liable for damages to the enterprise. He/she shall also be liable for damages to a third party if the conduct was intentional or negligent.

   5. 2.5 The SD BIOSENSOR may purchase liability insurance for a director at the company's expense to ensure the effectiveness of the pursuit of responsibility for a director and to recruit a competent person as a director.



3. 3. Composition of the board of directors

   1. 3.1 The board of directors of the BIOSENSOR must be a proper size for effective and careful discussion and decision-making, and the committee set up within the board must consist of a sufficient number of directors to be activated.

   2. 3.2 The board of directors of the BIOSENSOR must have outside directors who can function independently from management and controlling shareholders, which allows the board to actually maintain its independence.

   3. 3.3 The SD BIOSENSOR shall not appoint a person responsible for damaging corporate value or infringing shareholder rights as a registered director.

   4. 3.4 The board of directors of the SD BIOSENSOR consists of competent people with expertise to make a substantial contribution to corporate management, and the term of office of the appointed director is respected.

   5. 3.5 The SD BIOSENSOR must form a board of directors with various backgrounds.



4. 4. The outside director

   1. 4.1 The outside director of the SD BIOSENSOR shall not have a significant relationship with the company and shall be a person who can make independent decisions from management and controlling shareholders.

   2. 4.2 The SD BIOSENSOR confirms and discloses that the candidate for outside director has no significant relationship with the company. Outside directors must submit a confirmation letter to the SD BIOSENSOR that they have no significant relationship with the company when accepting the appointment.

   3. 4.3 No outside director of the SD BIOSENSOR shall hold an excessive concurrent office to perform his/her duties faithfully.

   4. 4.4 Outside directors of the SD BIOSENSOR spend enough time to perform their duties, and when the board of directors is held, they attend after reviewing related data in advance.



5. 5. The operation of the board of directors

   1. 5.1 The chairman of the board of directors representing the SD BIOSENSOR shall be appointed separately from the CEO representing the management.

   2. 5.2 The chairman of the board of directors of the SD BIOSENSOR encourages an active discussion culture, leads the board of directors constructively, and supports outside directors to participate in decisions that are accurate and timely but based on information.

   3. 5.3 For the effective operation of the board of directors, the SD BIOSENSOR prepares the board of directors' management regulations that specifically define the authority, responsibility, and operation procedures of the board of directors.

   4. 5.4 In principle, the board of directors of the SD BIOSENSOR shall be held regularly, and an annual plan for the activities of the board of directors shall be established and held regularly.

   5. 5.5 The board of directors and committees of the SD BIOSENSOR shall prepare detailed minutes of each meeting and record the contents of the meeting to maintain and preserve them. Particularly important discussions and resolutions should be recorded on a director-by-director basis.

   6. 5.6 The SD BIOSENSOR allows members of the board to participate in the board meeting as much as possible by using remote communication if necessary.

   7. 5.7 The SD BIOSENSOR provides sufficient information necessary for the performance of duties of outside directors, and outside directors may request to provide information necessary for the performance of their duties promptly.

   8. 5.8 Outside directors of SD BIOSENSOR may receive support from executives, employees, or external experts in accordance with appropriate procedures, if necessary, and SD BIOSENSOR shall subsidize expenses incurred therein.

   9. 5.9 In order to enhance the management supervision and support functions of outside directors of the SD BIOSENSOR, meetings involving only outside directors may be held separately from the board of directors.

   10. 5.10 Outside directors of the SD BIOSENSOR regularly engage in in-house and overseas education to efficiently perform their duties.

   11. 5.11 The activities of the SD BIOSENSOR's board of directors, committees within the board of directors, and individual directors will be evaluated fairly, and the results of the evaluation of individual directors will be reflected in the decision on remuneration and re-election.

   12. 5.12 The board of directors of the SD BIOSENSOR may delegate its authority to the representative director, the representative executive officer, or the committee within the board of directors. However, important matters prescribed by Acts and subordinate statutes, articles of association, or regulations on the operation of the board of directors shall be excluded.



6. 6. Committees within the board of directors

   1. 6.1 The SD BIOSENSOR may set up a committee within the board of directors composed of an appropriate number of people performing specific functions and roles.

   2. 6.2 The organization, operation, and authority of all committees shall be stipulated as prestigious, and the committee shall report the resolved matters to the board of directors.

Article 13 (Protection of Shareholder Rights)

1. 1 Shareholder's right

   1. 1.1 The SD BIOSENSOR guarantees the fundamental rights of shareholders.

   2. 1.2 Matters that bring significant changes to the existence and shareholder rights of the SD BIOSENSOR shall be determined at the shareholders' meeting to ensure the rights of shareholders as much as possible.

   3. 1.3 The SD BIOSENSOR guarantees one vote per week. However, restrictions on voting rights for specific shareholders are limited as prescribed by law.

   4. 1.4 The SD BIOSENSOR's board of directors allows shareholders who oppose important structural changes, such as merger and transfer of business, to exercise their right to purchase shares based on the fair value reflecting the actual value of the stake, as prescribed by statutes.

   5. 1.5 The SD BIOSENSOR guarantees the exercise of minority shareholder rights to protect the interests of all shareholders. Otherwise, the controlling shareholder who affects the management of a company shall be correspondingly liable if it violates the rights of other general shareholders by acting against the interests of the company and all shareholders.



2. 2. General meeting of shareholders

   1. 2.1 The board of directors of the SD BIOSENSOR strives to create an environment in which agendas or bills on various topics can be tabled at shareholders' meetings.

   2. 2.2 When appointing an executive or amending the articles of association at the shareholders' meeting of the SD BIOSENSOR, the bill shall be presented separately.

   3. 2.3 The SD BIOSENSOR provides shareholders with sufficient information on the date, time, venue, and agenda of the shareholders' meeting before sufficient time. The date and time of the general meeting of shareholders shall be determined to allow shareholders to participate as much as possible.

   4. 2.4 The SD BIOSENSOR allows shareholders to exercise their voting rights with sufficient information and judgment time on directors and audit candidates.

   5. 2.5 The SD BIOSENSOR allows shareholders to exercise their voting rights as easily as possible and creates an environment for shareholders to propose a general shareholders' meeting to the board of directors.

   6. 2.6 The SD BIOSENSOR's board of directors allows the opinions of shareholders who are not controlling shareholders to be reflected in the appointment of directors and may adopt an intensive voting system.

   7. 2.7 In order to enhance the independence of auditors, the appointment of directors who become auditors shall be presented separately from the appointment of other directors.

   8. 2.8 The resolution of the shareholders' meeting of the SD BIOSENSOR must be transparent and fair, and the board of directors shall respond sincerely when shareholders ask for questions and explanations about the bill at the shareholders' meeting.

Article 14 (Audit)

1. 1. Internal audit

   1. 1.1 The SD BIOSENSOR should establish the audit committee.

   2. 1.2 The auditor and the audit committee of the SD BIOSENSOR shall not have a significant relationship with the relevant enterprise who are able to make independent decisions from management and controlling shareholders.

   3. 1.3 The audit committee of the SD BIOSENSOR shall be comprised of all outside directors to maintain independence and expertise, and at least two members shall be those who have expertise in audit affairs.

   4. 1.4 Audit committee or auditor of the SD BIOSENSOR shall faithfully perform audit duties.

   5. 1.5 The board of directors of the SD BIOSENSOR shall stipulate the audit committee or regulations on the objectives, organization, authority, responsibility, and work of the audit. In addition, the audit committee or the auditor must evaluate the validity of the regulation every year and discloses its contents.

   6. 1.6 The audit committee of SD BIOSENSOR shall formulate a plan for the activities of the annual audit committee on a regular basis, and may have the management, the financial officer, the head of the internal audit department, external auditors, etc. attend the meeting, if necessary.

   7. 1.7 The audit committee of the SD BIOSENSOR shall prepare the minutes of each meeting, and the minutes shall specify the main discussions and resolutions in detail and clearly. The Audit Committee or the Auditor shall prepare an audit report that specifically records the audit details.

   8. 1.8 The audit committee or auditor of SD BIOSENSOR shall have free access to information necessary for audit affairs and may seek advice from external experts if necessary.

   9. 1.9 The audit committee or auditor of the SD BIOSENSOR shall report the evaluation of his/her independence and major activities to the general shareholders' meeting, and the CEO shall disclose them through the business report.

   10. 1.10 In order to ensure the independence and loyalty of the members of the audit committee of the SD BIOSENSOR, an appropriate level of compensation shall be paid in consideration of the amount of audit work and the level of responsibility, and no other nominal compensation shall be paid.

   11. 1.11 The SD BIOSENSOR establishes, complies with, and discloses ethical regulations to eradicate all forms of corruption.



2. 2. External audit

   1. 2.1 The SD BIOSENSOR allows external auditors to maintain legal and practical independence from companies, their management, controlling shareholders, and consolidated mother and son companies.

   2. 2.2 The SD BIOSENSOR will have external auditors attend the shareholders' meeting to facilitate explanations in the event of shareholders' questions about the audit report.

   3. 2.3 The audit committee or auditor of the SD BIOSENSOR shall require external auditors to report important matters and regularly communicate with external auditors.

Article 15 (Communication with Shareholders and Interested parties)

1. 1 Direct communication with shareholders and interested parties

   1. 1.1 The board and management of the SD BIOSENSOR shall pay attention to constructive dialogue with shareholders and interested parties to contribute to the sustainable growth of companies. To this end, the chairman of the board of directors or outside directors in charge of communication may communicate directly.

   2. 1.2 The board of directors of the SD BIOSENSOR reviews the agenda that had considerable opposition at the shareholders' meeting. If necessary, they will have the opportunity to communicate with the opposing shareholders, and review results and action plans will be made public.



2. 2. Disclosure of information

   1. 2.1 The BIOSENSOR shall provide shareholders with information on the necessary companies in a timely manner, sufficiently, fairly, and fairly to all shareholders even when they disclose information that they are not obliged to disclose.

   2. 2.2 The SD BIOSENSOR shall provide interested parties with the information necessary to protect the rights of interested parties within the scope permitted by the statute, and interested parties have access to relevant information.

   3. 2.3 In addition to the disclosures required by statutes, the SD BIOSENSOR shall disclose matters that may or may have a significant impact on the decision-making of shareholders and interested parties.

   4. 2.4 The CEO and Chief Financial Officer of the SD BIOSENSOR strives to ensure the accuracy and completeness of financial reports.

   5. 2.5 The SD BIOSENSOR makes information disclosure easier to understand and makes it easier for interested parties to use.

   6. 2.6 The SD BIOSENSOR designates a public disclosure officer and has an internal information delivery system to ensure that important information of the company is quickly delivered to the public disclosure officer.

Article 1 (Enforcement Date)

This regulation shall enter into force on the date of approval from the CEO.