APU strives to minimize uncertainty by identifying and proactively managing risks that may impact our business and projects. The following outlines risks associated with future business activities, based on comprehensive assessments of APU’s capabilities and changes in internal and external environments.

APU owns a diverse range of intellectual property (IP), including trademarks, brands, and copyrights, and makes every effort to protect these rights in compliance with legal regulations. However, intentional infringements by third parties could harm our corporate and brand image and undermine business value, potentially impacting our financial performance negatively. To address this, we actively manage our existing IP assets, secure new IP rights through appropriate contracts, and closely monitor for potential infringements. Additionally, we continuously conduct investigations and gather information with the help of experts to safeguard our IP portfolio.

APU operates extensively in Korea, Japan, Vietnam, Thailand, and China, among other regions. As the scope of our international business expands, we face increased risks such as natural disasters, political and socio-economic instability, currency fluctuations, and IP-related legal disputes. To mitigate these risks, we avoid over-concentration of business operations in any single country or region, maintain close communication with local offices, and gather valuable insights from local partners and institutions. Furthermore, we have established internal manuals and systems to respond swiftly and effectively to overseas business risks.

As part of our growth strategy, APU invests in domestic and international projects. However, unforeseen changes in investment conditions may lead to financial or operational challenges. To counter this, we conduct thorough fact-checking during project planning, evaluate potential returns and risks with expert analysis, and create detailed plans for investment terms and procedures. This meticulous approach reduces potential investment risks.

Quality deterioration caused by negligence, either by APU or its partners, could harm corporate, brand, and business value, lead to additional costs, and pose a risk to financial performance. To prevent such risks, APU has established stringent management standards across all project areas, ensuring strict adherence to maintain high-quality outcomes.

Given the diverse nature of our projects across various regions and industries, risks related to client credit issues, such as losses or contract breaches, persist. To mitigate these risks, APU strengthens its client management system by regularly assessing and monitoring the financial status and credibility of clients, particularly for major transactions or large-scale investments.

As our business diversifies and project areas expand, the risk of information breaches due to hacking or insider misconduct increases, potentially damaging corporate reputation and incurring costs. To address this, APU enforces stringent security measures for its information systems, establishes comprehensive guidelines in compliance with data protection laws, and provides regular training for all executives, employees, and partners. By enhancing our information management framework, we aim to prevent such risks proactively.