Other Changes under the Amended LSA that may be relevant to Payroll and HR Administration

l Reduced Work Hours to Max 52 Hours per Week in Korea (to be adopted in phases depending on the company sizes)

Under the amended LSA, the Korean government adopted the new legislation stipulating that the maximum work hours including overtime and holiday work shall be limited to 52 hours per week in an effort to improve long working hours of the workers and their quality of life.

This change will be adopted in different phases depending on company size with the first phase already started from July 1, 2018 for the companies having 300 or more employees as we announced you earlier this year. The second phase will take effect from January 1, 2020 that will be applicable to companies having 50 to 299 employees.

For your future reference, the implementation schedules for the second and third (final) phases are as below:

• 1st phase - 300 or more employees: July 1, 2018

• 2nd phase - 50 or more but less than 300: January 1, 2020

• 3rd phase (final) - 5 or more but less than 50: July 1, 2021