Notice

■ The Articles of Incorporation to be amended to enable investors to decide on their investment after confirming the dividend size.
■ To ensure transparency in management, one additional outside director to be added to the board of directors, forming a majority thereof.

LX Semicon will hold its Annual General Meeting of Shareholders at LX Semicon Daejeon Campus on the 21st of next month.

At this meeting, LX Semicon will present a diverse range of agenda items to enhance its ESG management system, including expanding shareholder rights and ensuring transparency in management.

First, LX Semicon will present an agenda item to amend the articles of incorporation to allow its board of directors to determine the dividend record date. In line with the global standard, this is to enable its investors to decide on investment after confirming the dividend size by setting different record dates for voting rights and dividends.

LX Semicon anticipates that its investors will be able to make a decision on their investments once they have recognized the dividend amount in advance, and that the time interval between the confirmation of eligible shareholders for dividends and the actual payment date will be significantly diminished, thereby enhancing the predictability of shareholder returns.

Furthermore, LX Semicon plans to appoint outside directors to form a majority of the board of directors at the shareholder’s meeting. Notwithstanding that it is not legally required for LX Semicon, a company with assets of less than KRW 2 trillion, to have its outside directors to constitute a majority of the board of directors under the Korean Commercial Code, LX Semicon will increase the proportion of outside directors to enhance the independence of the board of directors and ensure transparency in management.

LX Semicon has appointed Professor Nam Soo Kim, from the Department of Electrical and Computer Engineering at Seoul National University, and Mr. Sang-Beom Han, a former representative director of LG Display, as its new outside directors.
This appointment has been made in response to the expiration of tenure of the outside director, Mr. Young-Soo Shin and the appointment of one additional outside director.

If the appointment of new outside directors is approved, LX Semicon’s board of directors will be expanded from a total of six directors, consisting of two inside directors, one non-executive director, and three outside directors to a total of seven directors, consisting of two inside directors, one non-executive director, and four outside directors.

The outside director candidate, Prof. Nam Soo Kim is an expert in electrical and electronic engineering and has been involved in a various range of research activities in the fields of artificial intelligence and signal processing. The other candidate, Mr. Sang-Beom Han has nearly 40 years of experience in the semiconductor and display industry, possessing distinguished expertise and extensive experience in development, process, production, and equipment development in related fields.

The shareholders meeting will also include approval of its financial statements and director remuneration limits. (The end.)