Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises Article 6

When determining whether a relationship of subordination or control with an affiliate exists, a public company shall consider substantive as well as legal relationships.In any of the following circumstances, a public company shall prepare a consolidated business report and consolidated financial statements of the affiliates; however, this requirement shall not apply where there are relevant materials and evidence proving that no relationship of control or subordination exists.1. The company obtains a majority of directorships of another company; 2. Its appointee is engaged as general manager of another company; 3. It wields operational power over another company pursuant to a joint venture contract; 4. Its financing of another company amounts to one-third or more of that company's total assets; 5. Its endorsements and guarantees on behalf of another company amount to one-third or more of that company's total assets.A public company determined to have a relationship of subordination under any subparagraph of the preceding paragraph shall prepare an affiliation report; however, this requirement shall not apply where there are relevant materials and evidence proving that no relationship of control or subordination exists. A public company determining, as proven by relevant materials or evidence pursuant to the preceding two paragraphs, that no relationship of control or subordination exists [with a certain company] shall disclose the name of such company and the reasons for such determination in its consolidated business report of affiliates or its affiliation report.