Forval RealStraight Inc.

As a real estate brokerage business, the Company is subject to regulations under the Building Lots and Buildings Transaction Business Act, the National Land Use Planning Act, the City Planning Act, the Building Standards Act, and other laws, and is also subject to the Construction Business Act in relation to interior construction and related services. If these regulations are amended or abolished, their interpretation changes, or new legal regulations are introduced in the future, the Group may be forced to change its business operations, which could affect its business performance. The Group has obtained a license under the Building Lots and Buildings Transaction Business Act and has established a compliance system.

In the course of its business activities, the Group handles customers' personal information. Should an external leak or unauthorized use of such information occur, it could damage the Group's reputation and result in damages liability, thereby affecting business performance. As countermeasures, the Group has obtained the Privacy Mark, thoroughly instills personal information management practices among all employees, and has established a strict management system including locked storage and password-based access restrictions.

Transactions with related parties inherently carry risks such as being coerced into unnecessary transactions, distortion of transaction terms, and outflow of shareholder interests. The Group has established a system for deliberating on the business necessity of transactions and the appropriateness of terms, and for obtaining approval based on internal regulations; however, if deliberation opportunities are not obtained and improper transactions are conducted, this could affect the Group's business results and financial position.