Policy & Strategy

Corporate Governance LS MnM was incorporated as a 100% subsidiary of LS in September 2022 and started anew with a new mission. We established a transparent and trustworthy board-centered responsible management system, along with a structure that enhances decision-making efficiency. We expanded our business to include not only the existing smelting business but also secondary battery and semiconductor materials, which will enable us to grow into a comprehensive materials company. We also plan to increase our corporate value by considering an initial public offering (IPO), and have been working with JK Partners since December 2024.

Performance

Board Operation LS MnM strictly follows the operational guidelines of the board as well as the Articles of Incorporation. For that reason, the board meets 4 times a year and holds an ad hoc meeting if necessary. In addition, to strengthen the efficiency and integrity of the management of the board by sharing relevant documents a week in advance to allow each director to take enough time to review and approve the agenda.

Board Transparency LS MnM has formed a board of directors in accordance with the relevant commercial laws and articles of incorporation for transparent and sound governance operation. Adhering to the Regulations of the Board of Directors, the board is responsible for approving matters specified in the Commercial Code, the Articles of Incorporation, and the basic policies. Moreover, LS MnM operates several committees in line with the Basic Regulations of Committees, which outlines the necessary guidelines for management activities. According to the Shareholders Agreement(SHA), the board may have up to seven directors, who are appointed by the General Meeting of Shareholders as specified in the Articles of Incorporation. In the near future, we intend to form a committee responsible for recommending outside director candidates within the board. With this committee, we aim to recommend outside director candidates based on professionalism and independence, without any discrimination toward discriminatory factors such as gender, race, religion, etc. The chairman is also appointed by the board’s decision as specified in SHA, and the directors comprising the board are as follows

Committee Composition and Operation LS MnM has formed various committees to ensure management transparency and foster trust among stakeholders. To improve the actual operation and efficiency of the committee, we established various committees within the company rather than within the board.

System

Risk & Compliance system All departments of the company manage risk indicators through the R&C system (Risk & Compliance system). Risk factors, management objectives, indicator alarm boundaries, etc. are assigned for each risk index, and real-time alarms for indicators set as normal warning risks allow us to systematically manage company-wide risks through the analysis of potential risks in advance. In addition, the risks and responses that took place are reviewed in management meetings every month and reported to the C-level. In 2022, we reviewed all 160 indicators and improved them so they can be implemented preemptively from a sustainability perspective. We will continue to support sustainable growth through preemptive systematic risk management.

Internal accounting management system We have established and are operating an internal accounting management system.We design and evaluate risk factors for each work, and report the findings related to our internal accounting management practices to the Board of Directors and at the shareholder’s meetings. We have established new control procedures in light of the strengthened laws related to the internal accounting system, in addition to operating a dedicated, independent team to manage the system. Our internal accounting management system enables us to reinforce internal control, as well as management and supervision, on top of securing the reliability of financial disclosures that build the foundation for sustainable growth.