Coway has established a Code of Ethics as the foundation for practicing ethics management, providing employees and stakeholders with a clear standard for ethical judgment and conduct. The Code of Ethics consists of the Charter of Ethics, Regulations of Ethics, and Code of Ethics, and applies to a wide range of stakeholders, including all employees and partners. Coway also strives to improve accessibility so that ethical values can be put into practice in the workplace. Following the publication of the English version of the Code of Ethics in 2021, Coway posted the Code of Ethics on the websites of major overseas subsidiaries, including those in Malaysia, the United States, and Thailand, in 2022, advancing the global expansion of its ethics management culture.

Coway manages its ethics management framework based on the 3C Framework (Code of Conduct, Compliance Check Organization, and Consensus by Ethics Education). Through a dedicated organization that supervises ethical compliance, Coway preemptively addresses ethical risks and strengthens organization-wide ethical awareness by carrying out regular ethics training and campaigns for employees and partners.

Coway conducts regular and ad-hoc business diagnoses to maintain its soundness and transparency. We carry out various risk management activities in parallel, including monitoring corporate credit card usage, preventing irregular sales practices, and auditing sales ethics across overseas subsidiaries. In 2025, we focused inspections on ethical risks that may arise in transactions with partners and are reinforcing business rules and procedures for preventive management.

In 2025, Coway strengthened the linkage between order filtering systems and ongoing monitoring indicators, reorganizing the framework into nine core risk metrics. We also conducted on-site inspections of large-scale irregular sales practices, recovering undue gains and taking measures to prevent recurrence. We regularly share company-wide soundness and risk status with field operations, and irregular sales and service risk metrics have been formally embedded as KPI items to further enhance sales transparency. Globally, in 2025 we intensively reviewed the management systems of our Malaysia and Thailand subsidiaries and established risk management systems tailored to local conditions. Going forward, we will continue ethical diagnoses and monitoring at home and abroad to strengthen our internal control functions.

Coway maintains procedures for reporting and handling Code of Ethics violations. Employees aware of a violation must report it to the responsible department, and reports can be submitted anytime through various channels, including online platforms, email, and postal mail. Coway operates domestic and overseas Ethics Management Centers and online reporting channels, keeping customer complaint channels for products, services, and sales separate from whistleblowing channels for employee and partner misconduct. Reports are processed promptly and fairly. When a violation of the Code of Ethics or employment rules is confirmed, disciplinary actions—including dismissal, suspension, salary reduction, or warning—are strictly enforced in accordance with the severity of the violation, following review by the Disciplinary HR Committee.

Coway places the highest priority on protecting whistleblowers' identity and the content of their reports. We have revised our protection process so that only the Head of the Compliance Division can access whistleblower information, and established the "Whistleblower Protection and Rewards Guidelines" to foster an active reporting culture. Coway operates both a "Whistleblower Reward System" and a "Self-Reporting Leniency System." Under the reward system, verified reports are eligible for up to KRW 50 million, paid within 60 days of verification. We will continue to strengthen these systems to protect whistleblowers and build a transparent reporting culture.

To systematically manage compliance risks, Coway conducts annual regular diagnoses while also carrying out ad-hoc diagnoses based on reports submitted to the Ethics Management Center. In particular, we identify areas with a high likelihood of unfair trade and unfair competition as key compliance risks and conduct related risk assessments on a regular basis. We designate operations with a high likelihood of corruption and unfair practices, such as procurement involving large expenditures, as a core management focus and develop annual audit plans accordingly. Based on the results of regular audits, we establish and implement specific risk mitigation measures for unfair trade and unfair competition risks, and continuously conduct follow-up audits on improvement items. Through this approach, we run a prevention-focused ethics management system that goes beyond preventing recurrence to proactively block potential unfair trade and unfair competition before they occur.

To establish a healthy organizational culture and sound sales practices, Coway consistently provides ethics management training content—covering workplace harassment prevention, internal whistleblowing procedures, and improper sales prevention—via our integrated learning platform, making it accessible at all times to all employees, including full-time, part-time, and contract staff. Monthly educational media are also displayed across key business sites, such as the Coway R&D Center, to continuously raise employee ethical awareness. In 2025, we delivered tailored training focused on field-level ethics internalization and unfair trade prevention. We conducted in-person training for 93 general sales managers and technical service branch managers to enforce managerial accountability, alongside online video training for 1,561 branch managers and team leaders to disseminate practical guidelines for preventing fraudulent orders. Monthly short-form video guides highlighting core compliance rules and procedures are also distributed company-wide. Going forward, we will continue regular training on unfair trade prevention to solidify a fair, transparent commercial culture.

Coway operates the "Clean-Coway" initiative to foster a fair and transparent sales environment. Through our internal intranet, we disseminate ethical sales principles and focus on embedding compliant sales practices across field operations. We also analyze actual cases of irregular sales practices and distribute non-compliance case studies alongside prevention guidelines to ensure similar incidents are preemptively prevented.