Stewardship Code

CGS Stewardship Code

Hyundai Venture Investment Corporation ("HVIC" or "the Company") hereby announces the following Stewardship Code, which will be effective as of September 28, 2018,
based on the "Principles of Responsibilities of Trustees of Institutional Investors" enacted and declared by Korea Corporate Governance Service (KCGS).

Principle 1 : Institutional investors shall establish and disclose clear policies to fulfill responsibilities as the trustees managing and operating the assets of others including customers and beneficiaries.

Hyundai Venture Investment Corporation is the asset manager that raises funds with assets invested by pension funds and fund of funds (the “investors”) and hereby establishes and discloses the following Stewardship Code to fulfill our fiduciary duties to maximize the profit of investors and responsibilities assigned to us by the related laws and regulations and fund bylaws and agreements.
We are an investor dedicated to protecting and increasing the value of assets and responsible as a trustee assigned to manage and operate the investors’ assets.
Our priority is the investors’ profits at all times. In case of conflicts in interests, we will put the investors’ profits before the interests of our company, shareholders, and officers/employees, will handle all investors’ profits equally, and will not prefer or discriminate certain investors when raising, operating, and/or liquidating funds without a valid reason. In order to do so, we have established internal regulations to prevent conflicts and adopted a corresponding system to minimize the possibility of conflicts and promote the code of conduct of our officers/employees through regular training.
Our company inspects our financial factors and non-financial factors, such as technology, human resources, and governance, regularly for our investees’ sustainable growth and mid/long-term corporate values.
We will communicate with the investees’ management and leaders in regards to the major management issues for empathy and exercise our voting rights for their major agenda based on the final decisions made with careful internal deliberations as an active shareholder.
It is our principle to report to our investors these activities and follow-up details regularly.
We will secure the capacities and expertise we need to fulfill our responsibilities as a trustee.

Principle 2 : Institutional investors shall establish and disclose effective and clear policies as to how to resolve the conflicts of interests that they have confronted or may confront while fulfilling responsibilities as trustees.

Hyundai Venture Investment Corporation has internal control standards to prevent conflicts of interests while performing responsibilities as a trustee and manages the possibility of conflicts in accordance with the methods and procedures of the standards. The standards demand that we manage the investments in good faith for the profit of investors.
We have a compliance officer who manages and supervises conflicts in interests and compliance with internal control standards and minimize the possibility of conflicts in interests among the company and its officers/ employees, the investors, and our funds.
When we believe that there may be conflicts in interests while operating our funds, we will notify our investors in advance (with consent of meeting of investors, if necessary) to minimize the possibility and take actions so our investors’ interests are not encroached. We will do business within the scope of related laws and regulations for investment and recollection to fulfill our duties as a trustee.

Principle 3: Institutional investors shall inspect the investees regularly to enhance the investees’ mid/long-term value and preserve and enhance the value of investment assets.

Hyundai Venture Investment Corporation inspects our investees and carefully analyzes the information as a part of our responsibilities as a trustee.
We discuss the current issues with the management of investees regularly and receive their financial/non-financial records every quarter for internal review and analysis. By doing so, we establish follow-up strategies to enhance the value of companies with individual portfolios and review the portfolios and anticipated profit rates for the entire funds to adjust the operating strategies and maximize the profitability of investors.
We report the operation of funds, including the above information, to investors regularly/quarterly to share the management of investees with our investors. The purpose of our regular inspection is to identify the risks that may cause fluctuation of value of investees early and establish response measures swiftly. The ultimate purpose is to ensure our investees’ sustainable growth and mid/long-term corporate value.
We are making efforts to reflect our opinion on the management of our investees and have our investment officers participate in the investees’ Board of Directors, if necessary. We will actively exercise our authority as shareholders, including shareholders’ rights to speak and request special shareholders’ meetings.

Principle 4: Institutional investors shall pursue empathy with investees and establish internal guidelines, including the time, procedure, and method of activities, to perform our responsibilities as a trustee, if necessary.

Hyundai Venture Investment Corporation intends to fulfill our responsibilities to multiply the assets and seek to build empathy with the investees.
We fulfill our responsibilities as a trustee to contribute to the value of shareholders in the mid/long-term perspective to bring greater profit to investors in good faith.
We interact with and support the investees’ management and leaders from the investment review phase to secure trust and execute follow-up activities with their active participation after making investments. By doing so, we set the common goal with our investees to pursue their sustainable growth and mid/long-term value.
In the process of fulfilling our responsibilities as a trustee, we comply with the related laws and regulations, including the Financial Investment Services and Capital Markets Act, and do not seek or demand non-disclosed key information or information for fair disclosure.

Principle 5: Institutional investors shall disclose the policies for voting rights, including the guidelines, procedures, and standards related to exercising the voting rights. Specific details and reason of exercising the voting rights shall also be disclosed to ensure the suitability of voting rights.

Hyundai Venture Investment Corporation comprehensively considers the information from our internal review and in-depth discussions with the investees’ management and leaders about the agenda that require decision-making, including the investees’ meeting of shareholders and agenda that require prior consent/discussion. By doing so, we exercise our voting rights in good faith to maximize the profit of our fund investors.
Our decision to exercise voting rights basically does not follow outside advisory services, but independent decisions derived from our operators and managers. We save and manage the details of our voting rights and our grounds on ERP.
When demanded by our fund investors, we make detailed reports to them the exercise and details of our voting rights.
We are a fund operator that raises funds through private equity and the portfolio companies of our funds are mostly unlisted. Therefore, we do not disclose the exercise of voting rights to the general public on our Homepage.

Principles 6: Institutional investors shall report to customers and beneficiaries about the exercise of voting rights and the fulfillment of responsibilities of trustee regularly.

Hyundai Venture Investment Corporation writes quarterly reports to report to the fund investors and the reports shall include the current status of investors, our follow-up management activities and fulfillment of responsibilities as a trustee.
Also, we hold fund investment reports or investors’ meetings once or twice a year to report the operation of investees and seek approval.

Principle 7: Institutional investors shall secure the capacities and expertise required for active and effective execution of responsibilities as a trustee.

Hyundai Venture Investment Corporation is a fund operator with more than 20 years of experience since 1997. Based on years of experience in operating funds, we have distinguished capacities and expertise in investments suitable for each investee’s level of growth and field of industry.
Our fund operators have secured expertise and network in each industry based on years of experience in Korea’s leading companies in various industries.
Also, we have signed agreements with legal affairs, tax affairs, and accounting corporations and seek advice on various issues that we can encounter while operating funds to address financial/non-financial and legal/tax risks from multifaceted aspects and secure financial resources to operate the funds lawfully according to the principles.
We constantly support our officers and employees to participate in various vocational programs and local/international seminars for better understanding of shareholders’ meeting agenda, industries and systems governing the investees, and the equity market to improve our capacities and expertise as a trustee.

책임자 : 나종윤 전무 ( 02-728-8875, rcy@hvic.co.kr )

담당자 : 김은영 관리본부 이사 ( 02-728-8963, bosini@hvic.co.kr)