The Company has adopted a corporate governance system comprised of a board of directors, a board of statutory auditors and an independent auditor.

The Company's board of directors, consisting of six directors, holds monthly board of directors' meetings and special meetings as needed and provides mutual supervision of directors' actions through exchanging opinions and reviews by directors.

The Company's board of statutory auditors consists of three outside statutory auditors to ensure their independence. The statutory auditors audit directors' activities by attending the board of directors' meetings as well as holding board of statutory auditors' meeting at least once a month and performing operational audits and accounting audits in accordance with the audit plan. We believe having these boards of directors and statutory auditors ensures effective corporate governance.

Our independent auditor is PricewaterhouseCoopers Aarata.

The Company has an Internal Audit Division consisting of one manager and one staff member reporting directly to the CEO in order to properly evaluate the effectiveness of internal control and each division's operation as well as contribute to the improvement of management.

The Internal Audit Division prepares the internal audit plan for each fiscal year in accordance with the internal audit regulations, and, with the approval of the CEO, performs internal audits of all divisions generally once a year. As for internal audits by consolidated subsidiaries, NEXON Korea Corporation and its consolidated subsidiaries are audited by an Internal Audit Division of NEXON Korea Corporation, consolidated subsidiaries with Internal Audit Divisions are audited by their respective divisions and those without Internal Audit Division are audited by the Company's Internal Audit Division.

The board of statutory auditors also prepares audit plans for each fiscal year and performs audits in accordance with the statutory auditor's audit standard. One of the three statutory auditors is a standing statutory auditor and understands the operation status at all times and performs the audit while providing the other two auditors with necessary information. One of the statutory auditors is a certified public accountant and possesses knowledge of finance and accounting.

The Company has appointed two (2) outside directors at its 10th Ordinary General Meeting of Shareholders in order to improve the board of directors' ability to supervise management. All three statutory auditors of the Company are outside statutory auditors to ensure the independence and transparency of the audit and there are no conflicts of interest between these statutory auditors and the Company. In order to ensure that outside directors and outside statutory auditors are able to perform their expected roles, the Company's articles of incorporation provide, pursuant to Article 427, Paragraph 1 of the Companies Act, that the Company may enter into an agreement with outside directors and outside statutory auditors limiting their liability for damages resulting from neglecting duties. The Company has entered into an agreement of limitation of liability as above with its three (3) outside statutory auditors as of December 14, 2011 and with its two (2) outside directors as of March 27, 2012.