#GungHoOnlineEntertainment

Effective February 1, 2026, Kazuyoshi Morishita will resign as Representative Director, President and CEO, and assume the position of Chairman and Chief Development Officer. Kazuya Sakai will assume the position of new Representative Director, President and CEO.

Revision of the directors’ compensation system including a review of basic remuneration, an increase in the cap for performance-linked remuneration to JPY 400 million annually, abolition of stock options, and introduction of a performance-linked stock compensation plan scheduled for proposal at the March 2026 shareholders meeting.

The new director compensation system maintains fixed compensation at 300 million yen, changes the KPI for performance-linked compensation to net income attributable to owners of parent, making it variable, abolishes stock option-type equity compensation, and introduces a restricted stock compensation system. Total compensation is estimated to decrease approximately 63% compared to the current system.