Statutory Auditor
1. Statutory Auditor Independence and Powers (G4-1)
The Articles of Incorporation of i-SENS formalize the right of access to management information necessary for the duties of the Statutory Auditor as follows.
i-SENS independently audits the legality of the operation of the Board of Directors, the reliability of financial reporting, and the effectiveness of internal control, centered on one standing Statutory Auditor. Pursuant to Article 40-2 of the Articles of Incorporation, no separate Audit Committee is established; however, the independence of the Statutory Auditor is secured through the right to request the convening of an extraordinary general meeting, the right to demand business reporting from subsidiaries, and the right to investigate operations and the state of property granted by Articles 412 and 447-4 of the Commercial Act. The external auditor is Samjong Accounting Firm (Big 4), and the independence of the external auditor was also maintained in 2025 with 0 cases of non-audit services.
Power | Content |
Right to request the convening of an extraordinary general meeting | The Statutory Auditor may request the convening of an extraordinary general meeting by submitting to the Board of Directors a written document stating the purpose of the meeting and the reasons for convening (Article 412-3 of the Commercial Act) |
Right to demand business reporting from subsidiaries | When necessary for the performance of duties, the Statutory Auditor may demand a business report from subsidiaries (Article 412-5 of the Commercial Act) |
Right to investigate subsidiaries | When a subsidiary does not report without delay or when there is a need to verify the content, the Statutory Auditor may investigate the operations and the state of property of the subsidiary |
Statement of Audit Opinion | Duty to submit the Statutory Auditor's report to the Regular General Meeting of Shareholders · Right to speak at the Board of Directors · Right to demand the submission of extraordinary agenda items |
2. Statutory Auditor Support Organization and Major Activities
The Statutory Auditor, with operational support from the Ethics Management Office, performs 12 annual regular activities, including the evaluation of the internal accounting control system, the operation of the ESG Council, company-wide ethics and compliance education, and IT security audits.
Area | Major Activities |
Internal Control · Accounting | Evaluation of the internal accounting control system · Quarterly communication with the external auditor (Samjong Accounting Firm) · Amendment of the Internal Accounting Control Rules (Board resolution of July 22, 2025) |
ESG · Sustainability | Support for the ESG Council and the ESG Operating Council · Participation in the UNGC accession and operational council · Preparation and publication of the Sustainability Report |
Ethics and Compliance | Company-wide education on fair trade, trade secrets, personal information, and anti-corruption · Enactment of the Code of Ethical Conduct · Amendment of the ESG manual and Anti-corruption Rules · Spending report and fair competition convention education |
IT · Information Protection | IT security and trade secret security audit · Monthly compliance newsletter publication · Inspection of external security solutions |
3. 2025 Board Agenda Item Audit Performance (G4-2 · 10 meetings · 23 items)
The Statutory Auditor attended all 10 Board meetings in 2025 and conducted prior reviews on the legality, financial impact, and conflict of interest of the 23 agenda items. All agenda items were resolved, and there were 0 cases of opposition or amendment by the Statutory Auditor.
3.1 Seven Core Agenda Items — Directly Related to the Duties of the Statutory Auditor
From among the 23 agenda items at the 10 Board meetings in Section 3, 7 agenda items related to ethics, compliance, internal accounting, and ESG that are directly related to the duties of the Statutory Auditor are separately extracted and presented with the resolution and reporting classifications. This table is consistent with 1700 Board of Directors Section 3 and 1702 Ethics Management Section 8.
Date | Classification | Agenda Item | Evaluation from the Statutory Auditor's Perspective |
2025-02-24 | Report | ① Internal Accounting Control System Operating Status Report ② Statutory Auditor's Internal Accounting Control System Evaluation Report ③ ESG and Compliance Control Report | Directly prepared and submitted by the Statutory Auditor — conclusion that internal accounting is operated effectively (from a materiality perspective) · Some simple deficiencies remedied by period-end |
2025-03-07 | Resolution | Appointment of the Compliance Officer | Statutory Auditor's prior review appropriate · Preemptive response governance 2 months ahead of the RPM case (May 7, 2025) |
2025-04-14 | Report | Introduction and Operation of the CP | Statutory Auditor's listening to the report · Start of monitoring of CP operation, training, and case-mapping |
2025-07-22 | Resolution | Amendment of the Internal Accounting Control Rules | Statutory Auditor's prior review · Rule-level supplementation of the deficiencies (registration and changes to the customer master) reported in the February 24, 2025 evaluation |
2025-07-22 | Report | ESG Materiality Assessment Report | Statutory Auditor's listening · Verification of the appropriateness of the DMA results (221 respondents · 34 issues · Dual Material 9) (external ESG Credit advisory) |
2025-11-24 | Report | ① Human Rights Impact Assessment Result Report ② ESG Evaluation Report | Statutory Auditor's listening · Verification of the results of the September 2025 Human Rights Impact Assessment (S3) and the results of the external ESG specialist organization evaluation |
Statutory Auditor Opinion: The above 7 agenda items were all handled in accordance with the sta
ndards of Article 412 of the Commercial Act (Powers of the Statutory Auditor) and the External Audit of Stock Companies Act (Internal Accounting Control System), and the 2 resolution items (Appointment of the Compliance Officer · Amendment of the Internal Accounting Control Rules) were duly resolved after prior review by the Statutory Auditor. There were 0 opposing or amending opinions by the Statutory Auditor (consistent with G3-2).
3.2 Audit Performance of All 23 Agenda Items at the 10 Board Meetings
Round | Date | Major Agenda Items | Resolution |
1 | 2025-02-03 | Change of branch address · Lending of funds to other corporations · Dismissal of executives | Resolved |
2 | 2025-02-10 | Approval of the 25th-term financial statements, consolidated financial statements, and statement of appropriation of retained earnings · Approval of the 2025 Safety and Health Plan | Resolved |
3 | 2025-02-24 | Convening of the 25th-term Regular General Meeting of Shareholders · Introduction of the electronic voting system · Appointment of executives · Conclusion of treasury stock acquisition trust agreement | Resolved |
4 | 2025-03-07 | Lending of funds to other corporations · Appointment of the Compliance Officer | Resolved |
5 | 2025-04-14 | Resolution on the method of grant of stock options and issuance of new shares · Lending of funds · Termination of the treasury stock trust agreement | Resolved |
6 | 2025-04-25 | Sale of assets | Resolved |
7 | 2025-05-15 | Decision on retirement of shares · Extension of operating fund loan maturity | Resolved |
8 | 2025-07-22 | Renewal of borrowing maturity · Amendment of the Internal Accounting Control Rules | Resolved |
9 | 2025-10-16 | Extension of operating fund loan maturity | Resolved |
10 | 2025-11-24 | Borrowing of funds · Grant of stock options and issuance of new shares · Lending of funds | Resolved |
4. Statutory Auditor Expertise — External Education (G4-2 · 2025 · 11 sessions)
The Statutory Auditor maintains expertise by attending 11 external educational sessions hosted by the highest-level institutions in Korea covering accounting, legal affairs, AI, governance, and medical device regulations.
Date | Education Provider | Major Education Content |
2025-01-03 | Yulchon LLC | Commentary on the Supreme Court decision on ordinary wages and corporate response measures |
2025-02-14 | Korean Association of Auditors | Impact of accounting on the economy |
2025-03-20 | Korea Medical Devices Industry Association | Medical device compliance issues seminar |
2025-05-13 | Black-jaIs Management Research Institute | Audit methods using ChatGPT |
2025-05-28 | Audit Committee Forum | New paradigms in anti-money laundering |
2025-06-18 | Minwho Law Firm | Personal information protection seminar |
2025-07-01 | Samjong Accounting Firm | Preparation for sustainability disclosure and corporate governance improvement tasks |
2025-08-05 | Yulchon LLC | Special seminar on the amendment of the Commercial Act |
2025-09-05 | Yulchon LLC | Seminar on the Yellow Envelope Act |
2025-11-12 | Andon Accounting Firm | Corporate governance seminar |
2025-12-18 | Bae, Kim & Lee LLC | Media AI governance legal policy tasks |
5. External Auditor Independence (G4-3 · Samjong Accounting Firm)
Item | Content |
External Auditor | Samjong Accounting Firm (KPMG Samjong) — Big 4 global network |
Audit Opinion | Unqualified Opinion · FY2025 financial statements and consolidated financial statements |
Non-audit Fee | 0 cases in 2025 · KRW 0 — Auditor Independence fully secured |
Audit Cycle | Quarterly review + annual audit · Internal accounting control system operating status evaluation report (February 23, 2026 Board meeting) |
Internal Accounting Evaluation | Designed and operated effectively from a materiality perspective · Some simple deficiencies (registration and changes to the customer master) fully remedied by period-end · 0 significant weaknesses reported in the immediately preceding fiscal year |
6. Statutory Auditor Compensation and Personal Particulars (DART Disclosure)
Fiscal Year | Statutory Auditor Compensation (Unit: KRW million) |
2024 | Limit approved by General Meeting of Shareholders 300 · Actual 268 |
2025 | Limit approved by General Meeting of Shareholders 300 · Actual 224 |
2026 | Limit approved by General Meeting of Shareholders 100 (300→100 reduced · Scope of duties readjusted) |
7. Post-Response to Fair Trade Act Violation (RPM Case · Appointment of the Compliance Officer)
Transparent Disclosure Principle: In accordance with GRI 2-27 (Compliance with laws and regulations) and UNGC Principle 10 (Anti-corruption), this report discloses, as is, the fact of the Fair Trade Act violation that occurred during FY2025. This is the most significant non-financial governance issue of this report, and the post-response and recurrence prevention activities of the Statutory Auditor and the Ethics Management Office are reported together.
Item | Content |
Disposing Authority | Korea Fair Trade Commission |
Date of Resolution | May 7, 2025 |
Violated Law | Monopoly Regulation and Fair Trade Act (Fair Trade Act), Article 46 — Prohibition of Resale Price Maintenance (RPM) |
Subject of Disposition | i-SENS (manufacturer) + Daehan Medical Equipment Co., Ltd. (online general distributor) |
Content of Disposition | Surcharge of KRW 256 million (imposed on i-SENS) + Corrective order (both companies) |
Subject Products | Components of the blood glucose monitor — meter, strip, lancet |
Subject Transactions | Domestic online sales (offline and overseas sales not subject) |
7.1 Timeline of the Violating Acts (2018 to September 2024)
Time | Act |
2018 | Began setting recommended online sales prices for meters, strips, and lancets |
January 2019 | Implementation of supply price increases + supply quantity restrictions + new sales activity restrictions for companies selling below the recommended price |
January 2020 | Designated Daehan Medical Equipment Co., Ltd. as online general distributor → assigned the mission of price stabilization |
January 2020 to September 2024 | Daehan Medical Equipment, in consultation with i-SENS, determined and notified the online sales standard price · Requested correction from companies not complying with the standard price → notified of supply price increase → actual supply volume restriction and supply suspension |
Ongoing | Daehan Medical Equipment prepared a blacklist of non-complying companies · i-SENS instructed agencies and trading partners not to supply to blacklisted companies · Tracking of bypass-supplying agencies + volume restriction |
2025-05-07 | KFTC resolution — Surcharge of KRW 256 million + Corrective order |
7.2 Determination of Illegality and Market Impact
Article 46 of the Fair Trade Act prohibits acts of resale price maintenance (RPM), in which a business operator compels a counterparty business operator or business operators at subsequent transaction stages to sell goods supplied by the business operator at specific prices. The acts in question were judged to have caused the following three-fold harms.
Harm | Content |
Infringement of distribution autonomy | Artificial infringement of the autonomy of online sales operators in pricing decisions |
Restriction of price competition | Elimination of price competition among operators at the distribution stage |
Consumer harm | Blocking of opportunities for diabetic patients to purchase at low prices — infringement of access to essential medical devices |
KFTC Resolution Purpose (cited from the press release): "It is expected that this will promote price competition in the domestic sales market for blood glucose monitors, which are essential medical devices for diabetes prevention and management, at a time when the number of domestic diabetes patients continues to increase, and that consumers will be able to purchase products at lower prices online."
7.3 Post-Response and Recurrence Prevention Governance
Action | Content / Date | |
Appointment of the Compliance Officer | March 7, 2025 Board resolution (preemptive response 2 months before the KFTC resolution) — designation of the person responsible for the operation of the Compliance Program (CP) | |
Payment of the Surcharge | Recognized as KRW 256 million in non-operating expenses for FY2025 · Reflected in the financial statements · Unqualified opinion of the external auditor (Samjong Accounting Firm) maintained | |
Implementation of the Corrective Order | Full cessation of acts of determining, notifying, and enforcing online sales standard prices · Deletion of price management clauses in the Daehan Medical Equipment general distributorship agreement · Amendment of agency transaction terms and conditions | |
Company-wide Ethics and Compliance Education | Strengthened company-wide education in the four major areas of fair trade + anti-corruption + trade secrets + personal information — RPM cases under the Fair Trade Act newly added as a module | |
Strengthening Certification | ISO 37001 (Anti-Bribery) + ISO 37301 (Compliance) certification (Item 7 of the 2025 ESG Action Plan) — Strengthening of the re-certification cycle | |
Internal Education (Statutory Auditor) | August 5, 2025 Yulchon seminar on amendment of the Commercial Act + September 5, 2025 Yulchon seminar on the Yellow Envelope Act + November 12, 2025 Andon corporate governance seminar — Reinforcement of post-governance capabilities | |
Board Reporting | At the February 23, 2026 Board ESG and compliance control evaluation report, the implementation results of the RPM corrective order will be formally reported | |
8. 2025 Key Performance Summary · 2026 Plan
Board of Directors attendance 100% across 10 meetings · 100% resolution of 23 agenda items · 11 external Statutory Auditor educational sessions · 0 cases of non-audit services by the external auditor · 0 significant weaknesses in internal accounting · Statutory Auditor compensation KRW 224 million (within 75% of the KRW 300 limit)
2026Plan
1.Upgrade of the internal accounting control system (stabilization of the rules amended on July 22, 2025 + introduction of automation tools).
2.Strengthening of sustainability disclosure (KSSB·ESRS) audit response capabilities (implementation of the Samjong seminar of July 1, 2025).
3.Establishment of IT and AI governance audits (follow-up to the Bae, Kim & Lee seminar of December 18, 2025).
4.Verification of the appropriateness of the Statutory Auditor compensation limit of KRW 100 million + clarification and disclosure of the scope of duties.
Statutory Auditor Three-Pillar Integrated Framework (G4-1 · G4-2 · G4-3)
