Dear Shareholders and Investors

On March 19, 2025, Seojeon Electric Machinery Co., Ltd. was designated as a Stock Investment Warning due to "Inadequate Internal Accounting Control System."

The reason, as cited by the external auditor (Shinhan Accounting Corporation, a Financial Supervisory Service-designated accounting firm), is:

1. Failure to operate sufficient and appropriate control procedures related to the preparation of financial statements and the detection of significant errors.

2. Inadequate execution of company-wide control activities.

Among these,

For the first issue (Failure to operate sufficient and appropriate control procedures), we have followed the auditor’s corrective recommendations, and the financial impact of these recommendations has been appropriately reflected in the 2024 financial statements.

Regarding the second issue (Inadequate execution of company-wide control activities), we will continue to improve during the 2025 fiscal year to ensure an appropriate audit opinion in the 2025 financial audit, which is scheduled for 2026.

We are committed to continuously improving our processes to prevent recurrence of similar issues.

We sincerely apologize to our customers, shareholders, and all stakeholders and promise to prevent future occurrences.

Thank you.