Even during times of uncertainty, our company has consistently prioritized compliance and made relentless efforts to foster a culture of compliance. Such commitment and the excellence of our compliance system have gained recognition internally and externally, allowing Hyundai Rotem Company to further establish itself as a pioneer in fostering a culture of compliance.

In line with the recent domestic and international trends in fair trade, the Korean Fair Trade Commission (“K-FTC”) has designated the following as its key initiatives for 2025: Eradication of unfair collaborative acts and trade practices, and rectification of unfair international transactions. Additionally, they are expanding policies to protect small and medium-sized enterprises through various measures, including strengthening payment protection measures for subcontractors. Internationally, the OECD Competition Committee’s stance in December 2024 indicates a move towards reducing the burden of proof for competition authorities, thereby easing the law enforcement processes for national competition authorities.

In light of such overarching domestic and international emphasis on fair competition, our company must reinforce its market position domestically and enhance its competitiveness globally by further strengthening our Compliance Program and raising compliance awareness among our employees.

For better implementation of the existing compliance programs, the K-FTC enacted legislation in June 2024 and revamped its CP evaluation and certification system to enhance its external credibility. Under this evaluation, our company has received a rating of AA, the highest Hyundai Rotem Company has ever achieved. This serves as an objective indicator of the exceptional quality of our Compliance Program.

Building on this momentum, our company will elevate our Compliance Program to new heights and cultivate a culture of compliance that aligns with global standards. To this end, all employees must strictly adhere to the fair trade regulations in their respective areas of work and foster cooperative relationships with our partners. Engaging in unfair practices such as collaborative acts with competitors, unfair internal transactions, and technology theft is unacceptable and will not be tolerated.

To conclude, establishing a fair and transparent competitive environment and ensuring compliance is a responsibility we all share. Therefore, for the long-term stability and prosperity of our company, all Hyundai Rotem Company employees are urged to adhere to the following codes of conduct and collectively strive to become a company trusted by our clients and society:

Hyundai Rotem's CP operation regulation clearly outlines the principles that executives and employees must adhere to. It guarantees the independent work performance of the Compliance Officer in charge, and places the Compliance Committee as a body directly under the CEO, which facilitates CP policies and critical matters to be determined by the CEO. CP operation regulation is meticulously designed to ensure that CP operates in organic and wholesome ways.

However, no matter how well the related regulations and systems are implemented, without the interest and will of executives and employees, they are nothing but empty rhetoric. For the stable operation of CP, it is most important for all executives and employees to have an awareness of compliance and participate autonomously.

The company is making a significant effort to internalize CP by carrying out activities to raise compliance awareness among executives and employees by providing fair trade training, requesting pledges to practice compliance management, distributing voluntary compliance handbooks, conducting on-site inspections of business sites, establishing and improving the compliance support system, and so on. We need support and active involvement from our employees, business partners and customers in order to deeply implement transparent and ethical business management as Hyundai Rotem's culture.

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