Notice Regarding Measures to Prevent Recurrence
VALUE CREATION CO.,LTD.
Relevant locations/products
Internal control issues, including the inadequate functioning of procedures for independently verifying the actual nature of transactions with upstream and downstream agencies, the inadequate functioning of information sharing and checks and balances among the sales, advertising operations, and administrative departments, and the inadequate functioning of the internal audit and monitoring framework
Company response
Special Investigation Committee (established date and chair's name: Not disclosed)
(1) Tightening procedures for verifying deliverables, (2) strengthening the screening framework for downstream business partners, (3) strengthening organizational sharing of transaction information and checks and balances, and (4) strengthening internal audit and monitoring functions
The Company will steadily implement the measures to prevent recurrence and work to restore trust and enhance corporate value by strengthening its internal control and corporate governance frameworks. The deliverables verification procedures, downstream business partner screening system, information-sharing framework, and checks and balances are scheduled to be implemented from June 2026, while the internal audit and monitoring functions are scheduled to be implemented from July 2026.
| Item | Details |
|---|---|
| Event name | Notice Regarding Measures to Prevent Recurrence |
| Date recognized / date notice received | Date the matter became known / date the notification was received |
| Subject Entity | VALUE CREATION CO.,LTD. |
| Target Locations / Products | Relevant locations/products |
| Cause | Internal control issues, including the inadequate functioning of procedures for independently verifying the actual nature of transactions with upstream and downstream agencies, the inadequate functioning of information sharing and checks and balances among the sales, advertising operations, and administrative departments, and the inadequate functioning of the internal audit and monitoring framework |
| Investigation structure | Special Investigation Committee (established date and chair's name: Not disclosed) |
| Measures to prevent recurrence | (1) Tightening procedures for verifying deliverables, (2) strengthening the screening framework for downstream business partners, (3) strengthening organizational sharing of transaction information and checks and balances, and (4) strengthening internal audit and monitoring functions |
| Outlook | The Company will steadily implement the measures to prevent recurrence and work to restore trust and enhance corporate value by strengthening its internal control and corporate governance frameworks. The deliverables verification procedures, downstream business partner screening system, information-sharing framework, and checks and balances are scheduled to be implemented from June 2026, while the internal audit and monitoring functions are scheduled to be implemented from July 2026. |
Items this document does not state (17)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.There were internal control issues, including the inadequate functioning of procedures for independently verifying the actual nature of transactions with upstream and downstream agencies, information sharing and checks and balances among the sales, advertising operations, and administrative departments, and the internal audit and monitoring framework.