RAKSUL INC.

If the domestic printing e-commerce market, on which the core printing business depends, does not expand as forecast, this may affect the Group's financial position and business results. As a countermeasure, the Group is promoting improvement of ARPU from existing customers and expansion of the customer base through the addition of original products other than paper, thereby seeking to expand the target market and revenue.

There are multiple competitors in the domestic printing e-commerce service space, and if a new entrant with a superior business model emerges, intensified competition may affect the Group's financial position and business results. The Group addresses this by continuously expanding its product lineup, conducting proactive marketing activities, enhancing customer support, and implementing measures to raise brand awareness.

Sales of the printing business depend on the number of registered users, usage rate, and average purchase amount. If the rate of user growth declines due to changes in the social and economic environment, intensifying competition, or reduced efficiency of marketing methods, this may lead to a slowdown in the pace of sales growth or an increase in marketing expenses. The Group seeks to maintain and expand the growth pace through continuous comparative analysis of customer acquisition costs and trials of new acquisition methods.

The Group's sales are highly dependent on the core printing business, and if the number of "Raksul" users declines or the market shrinks, this may have a material impact on the Group's financial position and business results. The Group is promoting diversification of revenue sources through expansion into customizable e-commerce areas such as cardboard, packaging materials, and hanko (seal stamps), as well as into physical product sales, the marketing support business centered on "Novasell," and multiple other business areas including software and finance.

The Group's business infrastructure depends on internet communication networks, and if a large-scale system failure occurs due to a surge in access load, software defects, unauthorized external intrusion, natural disasters, or other causes, this may affect the Group's financial position and business results. In addition to utilizing monitoring systems, the Group implements organizational and personnel-based measures as well as technical countermeasures through multi-layered defense.

The printing business employs a sharing-economy-style production system that networks suppliers, and if it becomes difficult to continue outsourcing operations due to rising procurement costs for raw materials or deterioration in suppliers' business conditions, this may affect the Group's financial position and business results. The Group seeks to stabilize its production system through low-cost procurement of materials via centralized purchasing, strengthening relationships with suppliers through regular communication, and promoting in-house production of some products.

The Group holds confidential information entrusted by business partners as well as personal information including member registration data, and if information is leaked or misused by employees or outsourcing partners, this may affect the Group's financial position and business results through loss of social trust or sanctions under the Act on the Protection of Personal Information. The Group addresses this by obtaining and operating under the Privacy Mark and ISMS certifications, establishing personal information protection policies and regulations, and repeatedly conducting employee training.

As the company grows in scale, the continuous recruitment and development of personnel with diverse backgrounds is important, and securing software development engineers in particular is essential. If the Group is unable to sufficiently secure and develop the personnel it needs, or if attrition of personnel progresses, this may affect the Group's financial position and business results. In addition to building an attractive human resources system, the Group is establishing development bases overseas in parallel with domestic recruitment activities, promoting continuous measures to strengthen its development capabilities.

The Group is subject to a variety of laws and regulations, including the Consumer Contract Act, the Act on Specified Commercial Transactions, the Act against Unjustifiable Premiums and Misleading Representations, and the Telecommunications Business Act. If legal violations or infringement of third parties' intellectual property rights occur, this may affect the Group's financial position and business results through loss of trust, restrictions on business activities, increased related costs, and damage to corporate value. The Group has established a compliance policy and strives to enhance its compliance framework through awareness-raising activities such as regular training.

For the purpose of business expansion, the Group may make investments and loans domestically and overseas, including capital contributions, establishment of subsidiaries, joint ventures, and M&A. Since it is difficult to accurately predict the business conditions of investees, if amounts invested or loaned become unrecoverable or impairment becomes necessary, this may affect the Group's financial position and business results. The Group manages this risk by confirming alignment with its vision and thoroughly examining the business model for each deal, and by continuously conducting regular monitoring after making an investment.