Legal Compliance

Response to Countries' Competition Laws

Yang Ming's operations span globally. To comply with relevant regulations established by various countries, the Company has established a Legal Compliance Office to manage competition laws information in important business regions, actively participates in external organizations to stay informed of the latest information and regulations, continuously monitors environmental and competitive conditions, and timely adjusts operational behavior to ensure compliance with legal requirements. In response to updates in countries' competition laws and to ensure the consistency of internal information with the updated competition laws, in addition to sending emails regularly to all employees of the Group, including its agents worldwide, to propagate the competition laws so as to enhance their compliance awareness and reduce the probability of violations of law by them, the Legal Compliance Office presents compliance matters at important meetings and increases the knowledge of the personnel assigned overseas on local competition laws to prevent violations of law.

Vessel PSC Inspection and Detention Events

In 2025, classification society inspections of owned vessels identified 163 recommended improvement items, all of which were completed with corrective measures within the required timeframe. Port State Control inspections covered 143 vessel visits, with 98 vessel visits passing without deficiencies and 45 vessel visits being cited for a total of 141 deficiencies. Subsequently, accident anomaly and non-compliance reports (NC), corrective action reports (CAR/CAP), and corrective evidence were prepared for continuous tracking and improvement completion, then submitted to flag state authorities for case closure.

Personal Data Protection Laws

Personal data protection is not only an important process to implement corporate governance, but also a key commitment to achieve sustainable development. The Company established the "Personal Data Protection Operating Procedures" as the norm for employees' collection, processing and use of personal data. The Company has developed a sound personal data protection system, kept an eye on the development of laws and regulations related to personal data protection, and, if appropriate, adjusted the Company's legal compliance policies and relevant norms to ensure that the related procedures are compliant with the latest regulatory requirements. The Company is committed to protecting personal privacy, has established a privacy policy, and adopts a zero-tolerance stance towards violators of this policy; please refer to the Company's corporate website.
In response to digital development trends, the Company has established control procedures for personal data protection and computerized information systems in accordance with Articles 8, 9, and 13 of the "Regulations Governing Establishment of Internal Control Systems by Public Companies," and starting from 2024, privacy protection and information security inspections have been incorporated as audit items in the annual internal audit plan. To comply with the European Union's General Data Protection Regulation (GDPR), the Company updated the Group website's Privacy Policy and appointed a Data Protection Officer (DPO) at the Europe Regional Center to handle local personal data protection affairs. Customer data is used exclusively for the primary purpose of shipping operations, with the only additional secondary usage being the "issuance of Yang Ming's Ethical Management Statement" (100% application rate).

In 2025, no confirmed incidents of employee personal data leaks occurred, no complaints were received from stakeholders regarding the collection or use of personal data, and zero cases of customer privacy data leakage took place.

Litigations and Violations of Law

Since 2022, the Legal Affairs Office has submitted to the Board of Directors, on a quarterly basis, a list of material projects, contracts, and legal cases together with brief descriptions. This practice enhances information transparency and enables the Board to keep abreast of developments in material matters in a timely manner. In 2025, the Company was involved in one anti-competitive case and one antitrust case across its global operations. The antitrust case resulted in a monetary penalty of KRW 2.42 billion (approximately USD 2 million). Further details please refer to the Sustainability Report-2.3 Compliance Governance and Internal Audit System. No cases of corruption resulting in litigation were reported during the reporting period. In addition, there were no material regulatory violations resulting in penalties relating to environmental or social issues. No incidents involving money laundering, insider trading, or conflicts of interest were reported.

*Regulatory violation penalty cases use fines reaching NT$1 million as the materiality threshold.

Legal Compliance Training 

The Company has always spared no effort when it comes to legal compliance. The Company arrange regular legal compliance courses for continuing learning and education for employees to ingrain the idea of legal compliance in their daily work routine.

Implementation of the Internal Audit System

Project and Subsidiary Supervisory Audit System

The Audit Department is responsible for internal auditing of the Company and its subsidiaries and agency oversight management operations, serving as the third line of defense for internal control and compliance governance. Yang Ming's Audit Department introduced a project audit system in 2022. In addition to routine internal control audits of management departments, project audits covering vessels, finance, and information systems were completed between 2022 and 2023. Through cross-departmental vertical and horizontal project communication and collaboration, this helps enterprises optimize processes, reduce redundant work and resource waste, enhances enterprise risk management and prevention capabilities. Furthermore, the Company actively promotes subsidiaries to establish their internal control systems. As of 2025, it has guided important subsidiaries including Huan Ming (Shanghai), YES Logistics, Kuang Ming Shipping Corp., Hong Ming Terminal & Stevedoring Corp., and Yang Ming (Singapore) to establish internal audit units and formulate internal audit implementation rules, and to regularly report their audit operations and improvement tracking to the Audit Department.
Through the aforementioned internal auditing, project auditing, and implementation of subsidiary audit systems, the Company assists the Board of Directors and management in examining and reviewing deficiencies in the Group's internal control systems, measuring operational effectiveness and efficiency, providing timely improvement recommendations, ensuring continuous effective implementation of internal control systems, enhancing stakeholder trust and recognition, increasing the reliability, timeliness, and transparency of the Company's information disclosure, and helping the enterprise achieve long-term sustainable business development.

Compliance Review and Managrment

The Company's Legal Affairs Office, Insurance & Claim Department, Legal Compliance Office, and relevant departments and offices assist in reviewing contracts, tender notices, and other legal documents to confirm the legality, compliance, and reasonableness of document content, thereby reducing risks and losses from violations and breaches of contract. In addition, they also give relevant units reminders to pay attention to competition laws, personal data protection, anti-money laundering, economic sanctions, embargoes and other related laws and regulations and help clarify and identify legal risks to avoid violations of related laws and regulations.
In line with information security standards for digital transformation, the Company adopts an electronic contract management system to comprehensively and systematically manage the Company's contract review operations, ensuring complete tracking records for contract cases and addressing the difficulties in preserving and accessing paper documents and emails. In addition, the system also provides various auxiliary functions, such as a document comparison system and the setting of contract expiry notice, to improve operational efficiency and reserve business response time, avoiding an interim between the end of a contract and the start of a new one. In the future, the Company will continue to adjust or upgrade the system functions and optimize contract management procedures based on the Company's policies and needs.

Integration of Sustainability Information into Internal Control

In accordance with the "Regulations Governing Establishment of Internal Control Systems by Public Companies," Yang Ming Marine Transport Corp. has integrated sustainability information management into the Company's internal control system. Each responsible unit is tasked with the collection, recording, and maintenance of sustainability-related data, performing controls and regular inspections in accordance with internal control procedures. The Sustainability Development Office is responsible for overall coordination and consolidation, coordinating with relevant units for review to ensure the integrity and consistency of the information.

The Duty of Audit Office

The organizational regulations of Yang Ming Marine Transport Corporation has been  approved at the 369^th (12^th meeting of the 20^th session) Board of Directors, the duty of audit office as following： 

1. Auditing of each department's compliance with policies, objectives and operating procedures. 
2. Internal control to cycle operation by internal audit system. 
3. ISO /ISM CODE internal operation audit matters. 
4. Coordinate and handle ISO/ISM CODE external audit matters. 
5. Deliberation and supervision the projects including construction, renovation, purchase and sale property. 
6. Auditing of business matters entrusted by the agents and shipowners. 
7. Execution of the internal control system audit of the group's subsidiaries. 
8. Other assigned and special audit cases.

Audit Office organization table

In addition to the appointment and dismissal of the Senior Auditor, evaluation, and Remuneration shall be approved by the Board of Directors. The rest of the internal auditors can be approval by the Chairman.