Employees are KTB's partners. We believe that we have to emphasize on employees' rights and interests, cultivate talents, arrange duties appropriately, establish reasonable performance management system, and build an equal and safe workplace, so as to achieve cohesiveness among all employees and improve their sense of identity with KTB. When we realize the personal value of our employees, we are achieving a win-win-win situation for the company, employees, and customers.

Current Employee Structure

KTB had 1,010 full-time employees and 77 non-employee workers (74 contracted employees and 3 dispatched employees). For details on the distribution of employees, please refer to Appendix 8.4 Human Resource Management Indicators. The ratio of female to male employees was 65:35, and the number of female employees holding managerial positions accounted for 56.25% of the total, which demonstrates KTB's focus on personality traits, professional abilities, and appropriate job arrangements when hiring employees and recruiting outstanding talents. KTB treats all its employees with fairness and mutual respect, to provide fair competition and development opportunities for both sexes.

Diversified Recruitment Channels

KTB proactively invests resources in recruiting outstanding talents with potential, with local residents as the main recruiting targets. In addition to general external recruitment, we put great emphasis on industry-academia cooperation, which includes campus recruitment, internship program, courses co-organization, career coaching programs, company visits, and seminars, to assist students in their career exploration, and at the same time, to find our future partners.

◆ Promotion Program of "Friends to Comrades"
KTB values employee retention. A good retention rate not only reduces recruiting costs but also boosts organizational morale. Furthermore, we have also noticed that the highest turnover rate occurred during the probationary period, mainly due to incompatibility with the jobs or corporate culture. In order to encourage employees to recommend outstanding talents, expand the company's talent introduction channel, and reduce frictional turnover rate, we have launched the "Talent Recommendation Incentive" subsidy program in 2022, in which employees who recommend talents and apply for the job vacancies announced in the recruitment website will receive the recommendation incentive after the recommended talents being formally employees, and the employees who made the recommendations will be given the retention incentive again when the recommended employees have served for the company for two years. In 2024, there were nine new recruits recommended by employees, with a retention rate of 88.89%.

◆ College and University Internship Programs
Since 2017, KTB has been promoting internship programs in colleges and universities, including semester internship program and summer holiday internship program. In the internship, senior employees are assigned to work together with students to complete daily tasks, so as to facilitate the student's understanding of the outlook of the finance industry through practical experience. The internship also helps students combine theoretical knowledge and practical experience to reduce their inability to adapt to the workplace after they are formally recruited in the future. From the academic year of 2023 to 2024, a total of 13 interns were recruited. In July 2024, 7 interns successfully transitioned to full-time employee after passing their probationary period assessment, resulting in a retention rate of 54%. We expect that a well-designed internship program can effectively assist students in transitioning from academia to the workplace more seamlessly. Additionally, companies can leverage internship programs to identify and recruit talented individuals early on.

◆ The Youth's Employment Ultimate Program
Since August 2020, KTB has responded to the Ministry of Labor's "The Youth's Employment Ultimate Program," providing not only employment opportunities for youth, but also practical vocational training. The Company assigned senior employees to act as training instructors to lead and guide students to familiarize themselves with skill sets, on a one-on-one basis, and regularly track and provide feedback to them. In this way, these students may have a less steep learning curve in their future work and acquire useful skills. As of November 30, 2024, we have hired a total of 235 employees under this program.

Talent Retention Measures

Hiring outstanding talents is the foundation of a company's growth. Creating a place that attracts talents and allows them to demonstrate their strengths is a key value of a company's existence. Only in this way can we move forward together with a common goal and become a prosperous company.

◆ Comprehensive Remuneration Structure
Based on the position and responsibilities of the employees and the operational performance of KTB, the departments, and the individuals, KTB has formulated a comprehensive remuneration structure and system. Performance evaluation and remuneration are carried out in accordance with the "Regulations on the Annual Employee Performance Evaluation," "Regulations on the Employee Benefit Payment," and
"Regulations on the Distribution of Annual Bonus," approved by the Board of Directors. Remuneration includes base salary, additional pay, allowance, and annual bonus. In addition, with reference to the salary and remuneration level of peer companies in the same industry, we adjust the base salary in a timely manner to provide our employees with competitive and motivating salary and remuneration.

In 2024, KTB’s total salary and compensation expenses amounted to NT$1 billion. For the average and median salaries of full-time employees not in managerial positions, as well as changes in these figures, please refer to page 63 of the KTB's 2024 Annual Report. The highest individual total compensation at the Company was 50.8 times Note1 the median total compensation of all employees. Additionally, the percentage increase in the highest individual total compensation was 23.7 times Note2 the median percentage increase in the average total compensation of employees. The significant increase in this year’s data compared to previous years primarily reflects exceptional performance in specific positions due to particular performance factors during the year. In accordance with the Company's compensation mechanism, this resulted in relatively high variable remuneration, which is one-off in nature and has been reviewed through internal procedures to ensure its reasonableness and compliance. Overall, the Company remains committed to a fair, transparent, and market-aligned compensation philosophy, and regularly reviews its related mechanisms to ensure that the remuneration system strikes a balance between the organization’s sustainable development and the value of its employees.

Regarding the implementation of salary equality, KTB complies with labor acts, including Labor Standards Act, Gender Equality in Employment Act, and Employment Services Act, and provides fair and reasonable salary and remuneration based on the ability and experience required by the position, without gender discrimination. The salary and related performance assessment of managers are also proposed to the "Remuneration Committee" every year for discussions to examine the reasonableness of the correlation between personal performance, company operational performance, and future risks. KTB ensures that employee salaries are sufficient to meet basic living needs. In 2024, the Company's average monthly salary for employees was 2.1 times the national minimum wage in Taiwan. The ratio of female to male employees at all levels of KTB for total salary and remuneration and for the regular salary and remuneration ratio (female: male) in 2024 are shown below:

Long-term Reward Mechanism

In addition to the salary mentioned above, KTB regards every employee as its partner and believes that KTB's steady growth lies in the team's cooperation and profit-sharing. In 2010, we launched the employee stock ownership trust, and the employees formed the "King's Town Bank Employee Stock Ownership Association." It has been agreed upon that KTB allocates a certain amount from each member's salary and deposits it to the trust organization for long-term investment and management of KTB's stocks. The Company also allocates additional relative incentive bonuses based on members' performance evaluations from the previous year and the amount members contribute voluntarily. Through “Employees to Shareholders," KTB gives its employees a sense of value in the workplace and the meaning of their hard work. As KTB grows and appreciates, we also assist our employees to build up their own assets so that they can enjoy a secure retirement in the future. The employee stock ownership trust participation rate for 2024 was 86.73%, with a cumulative return rate of 253.70%.

Employee Benefit Plans

As employees devote most of their time and efforts to work, it is the responsibility of KTB to help employees achieve a work-life balance. In addition to the statutory labor and health insurance, KTB has introduced a number nof measures and programs to take care of the employees in multiple aspects, such as the important moments of their lives, daily needs, emergency assistance, and retirement. The average welfare expense in 2024 was NT$1.1612 million (Note).

◆ Childcare Allowance for KTB Babies of 0-6 Years Old
In order to encourage employees to have children and reduce their burden of childcare, we have launched the "Childcare Allowance for King's Babies of 0-6 Years Old," which not only provides a monthly subsidy for childcare, but also includes a stepped reward. The more kids you have, the more reward you will receive, which could be up to NT$1.095 million, to encourage our employees to have more and more children. For the first King's Baby, the employee will receive NT$2,000 per month, for the second, he or she will receive NT$5,000 per month, and for the third, he or she will receive NT$8,000 per month, in the hope that our employees could feel at ease when giving birth and raising their children. In 2023-2024, approximately NT$150,000 was disbursed as subsidies, benefiting 41 KTB babies.

V Provide employees with secure retirement
In order to encourage employees to plan their future retirement through long-term savings, the Company has formulated the "Regulations Governing Retirement of Employees" with reference to the "Labor Standards Act" and the "Labor Pension Act." Employees that can apply for retirement are those who have served in the Company for more than 15 years and have reached the age of 55, those who have served for more than 25 years, and those who have served for more than 10 years and have reached the age of 60. KTB has also set up the "Labor Retirement Reserve Supervisory Committee" to review, check, and supervise issues related to the employee's retirement reserves. A total of 7 Labor Retirement Reserve Supervisory Committee meetings were held in 2024.

With regards to the retirement system, for those who are subject to the "Labor Standards Act," KTB allocates 15% of the total salary of the employees to the "Company Pension Account" at the Bank of Taiwan every month starting 2012. When employees retire, the retirement pension is calculated based on the base unit of their service years and the approved average monthly salary for the final six months before their retirement. Furthermore, the Company hires external actuaries on an annual basis to assess the allocation status and ensure compliance with legal regulations. For the employees who are subject to the "Labor Pension Act," 6% of the individual employee's salary is allocated to their own individual labor pension account at the Bureau of Labor Insurance on a monthly basis.

Preferential measures for retired employees include: Six free monthly cross-bank ATM withdrawals and six free monthly cross-bank online banking transfers per savings account; Fund subscription fees set at 0.3% of the subscription amount for domestic funds; Fund subscription fees set at 0.5% of the subscription amount for offshore funds (including foreign currency trusts)

V Care for important moments of employees
KTB has formulated the "King’s Town Bank Working Rules," which specify the various benefits and leaves employees are entitled to. In addition, KTB has also set up the "Employee Welfare Committee" to be in charge of employee welfare matters and formulated the "King’s Town Bank Enforcement Rules for Employee Benefits" as the basis for the utilization of employee welfare fund. Employee welfare fund, deposited in a special account, is exclusively for welfare purposes, and cannot be utilized unless approved by the Employee Welfare Committee. Benefit allocation is calculated in accordance with the following guidelines: 0.1% of the total monthly operating revenue and 0.5% of the monthly salary of each employee are allocated for employee benefits. All employees (including those who are on probation period) of the Company are entitled to the same rights and obligations. A total of 4 Employee Welfare Committee meetings was held in 2024.

V Care for the daily needs of employees