AI Ethics and
Governance

With careful consideration of the ethical risks and social impacts associated with the use of AI, we are committed to ensuring that AI is utilized correctly and responsibly for the well-being of all people. To guide this vision, we have established our conceptual framework—the AI Ethics Policy. This policy is endorsed by the Board of Directors.

As a practical implementation of this policy, we have developed a range of supporting documents, including internal regulations, guidelines, and checklists. These resources are used across the organization to promote human-centric, fair, transparent, accountable, and other responsible AI practices. Through these efforts, we aim to ensure the proper use of technology in harmony with society, and to realize AI that is trusted by all.

To comply with all relevant laws, guidelines, and social norms concerning the development and use of AI, and to ensure that AI is utilized appropriately for the well-being of people, we promote governance over internal departments that use AI through the Digital Governance Division, which is responsible for various forms of governance, including AI governance.

The Chief AI Governance Officer, who is responsible for AI governance at our company, is responsible for decision-making and management oversight related to AI governance. The officer also oversees the implementation status of AI governance in each department and helps ensure the effectiveness of company-wide AI governance through measures such as appointing AI Governance Managers, who are responsible for risk management and promoting improvements.

In addition, the AI Ethics Committee, composed of experts from both inside and outside the company, serves as an Advisory Board and provides guidance that contributes to the advancement of governance.

As part of our regular governance structure, the internal departments responsible for using AI are accountable for the validity of outcomes, risk decisions, and compliance assurance in each use of AI, and bear accountability within the company. These departments are responsible for appropriately managing the purpose of AI use, the validity of outcomes, risk assessment results, and compliance with laws, regulations, and internal rules, as well as reporting and explaining such matters to the Digital Governance Division and other relevant departments.

In cases where concerns arise regarding the inappropriate use of AI or its potential social impact, the Chairperson of the AI Ethics Committee collaborates with relevant department heads to promptly assess the situation, evaluate risks, and formulate and implement appropriate responses.

Moreover, in the event of a significant ethical or social incident involving AI, we will establish an Emergency Response Headquarters led by the President. This unit will coordinate with both internal and external stakeholders to ensure an effective response and, when necessary, report appropriately to relevant government ministries and agencies.

As we continue to strengthen our AI ethics and governance framework, we conduct ethical reviews, provide expert guidance, and carry out risk assessments based on a risk-based approach during the development and deployment of AI technologies within the company. To continuously monitor and evaluate AI usage and its social impact, we have established an AI Governance Monitoring Function, which facilitates close collaboration with both internal and external stakeholders. These activities are conducted in reference to domestic and international guidelines, enabling us to revise countermeasures and explore new initiatives as needed. As one such initiative, we are advancing our efforts toward obtaining certification under ISO/IEC 42001, the international standard for AI management systems. As part of this process, we have undergone a certification audit and continue to take the necessary steps toward achieving certification.

However, simply establishing rules is not sufficient to embed desirable behavior across the organization. For rules to be effective, they must be fully understood by all stakeholders and naturally integrated into their daily work practices.

Therefore, in addition to developing robust governance rules, we place strong emphasis on education and training to communicate these principles clearly. We believe that only when each employee understands the context and intent behind the rules —and applies them in their own actions— can the governance truly function effectively.