Securities and Exchange Act Article 28-1

If a public company whose stock is neither listed on a stock exchange nor traded on the over-the-counter market and whose ownership dispersion fails to meet the standards prescribed by the Competent Authority pursuant to paragraph 1 of Article 22-1 issues new shares for cash, it shall allocate a certain percentage of the total amount of the newly issued shares to be publicly offered, unless such a public offering is deemed to be unnecessary or inappropriate by the Competent Authority. The provisions of paragraph 3 of Article 267 of the Company Act regarding the preemptive subscription rights of existing shareholders shall not apply to such public offering.In cash offering of new shares by a public company whose stock is listed on a stock exchange or traded on the over-the-counter market, the Competent Authority may require a certain percentage of its new issues to be offered at the market value to the public; in such circumstance, the provisions of paragraph 3 of Article 267 of the Company Act regarding the preemptive subscription rights of existing shareholders shall not apply to such public offering.The percentage referred to in the preceding two paragraphs shall be ten percent of the total newly issued shares . However, if a higher percentage is determined by a resolution of the shareholders meeting, the percentage resolved upon shall be complied with.When shares are allocated for public offering in accordance with paragraphs 1 and 2, the price of the shares in the same issue that is subscribed by company employees or existing shareholders shall be identical to the price of the publicly issued shares.