(1) "Relevant company prescribed by Presidential Decree" in the main sentence of Article 542-3(1) of the Act means a corporation specified in any of the following subparagraphs; provided, the scope of the corporations falling under subparagraph 1 or 2 shall be limited to those engaging in manufacturing or sales which affect the results of export of the company that grants a stock option, or those engaging in research and development projects for technical innovation of such company:
1. A foreign corporation in which investments made by the relevant company as the largest investor are at least 30/100 of the corporation's total equity capital;
2. A foreign corporation in which investments made by the foreign corporation mentioned in subparagraph 1 as the largest investor are at least 30/100 of the former foreign corporation's equity capital, or a foreign corporation in which investments made by such foreign corporation as the largest investor are at least 30/100 of the former foreign corporation's equity capital;
3. If the relevant company is a financial holding company as defined in the Financial Holding Companies Act, an unlisted corporation among subsidiaries and sub-subsidiaries of the financial holding company.
(2) "Persons prescribed by Presidential Decree, including the largest shareholder under Article 542-8(2)5" in the proviso of Article 542-3(1) of the Act means the following persons; provided, persons who fall under specially related persons when they become executives of a relevant company or an affiliated company under paragraph (1) (including where the executive is a director or auditor who does not engage in the regular business of the affiliated company) shall be excluded herefrom:
1. The largest shareholder as defined in Article 542-8(2)5 of the Act and persons specially related to the largest shareholder;
2. Major shareholders as defined in Article 542-8(2)6 of the Act and persons specially related to such major shareholders.
(3) "Limit prescribed by Presidential Decree" in Article 542-3(2) of the Act means the number of shares equivalent to 15/100 of the total number of stocks issued and outstanding. In such cases, stock options granted pursuant to Article 542-3(3) of the Act shall be included in calculating the number of shares.
(4) "Limit prescribed by Presidential Decree" in the former part of Article 542-3(3) of the Act means the number of shares determined according to the following classification:
1. A corporation with equity capital valued at 300 billion won or more as at the end of the latest business year: The number of shares equivalent to 1/100 of the total number of stocks issued and outstanding;
2. A corporation with equity capital valued at less than 300 billion won as at the end of the latest business year: The number of shares equivalent to 3/100 of the total number of stocks issued and outstanding.
(5) "Cases provided for by Presidential Decree" in Article 542-3(4) of the Act means such cases where a person granted a stock option dies, retires or resigns from office due to an event not attributable to the person. Such events not attributable to the person shall not include retirement or resignation due to old age.
(6) In any of the following cases, a listed company may revoke the grant of a stock option by resolution of its board of directors, as stipulated by its articles of incorporation:
1. If the person granted the stock option voluntarily retires or resigns from office;
2. If the person granted the stock option inflicts substantial loss on the company by intention or negligence;
3. If the company is unable to accept the exercise of the stock option due to bankruptcy or any similar event;
4. If any other event stipulated as a ground for revocation in the stock option grant agreement made with the person granted the stock option occurs.
(7) Where the date for retirement or resignation of a director, auditor or employee is set as the date for exercising a stock option, but such director, auditor or employee retires or resigns from office due to an event not attributable to him or her, a period of at least three months from the date of retirement or resignation shall be additionally given for the exercise of the stock option.