September 18, 2019 Korea Morning Focus

Company News & Analysis Major Indices Close Chg Chg (%) Orion (271560/Buy/TP: W130,000) Raise TP KOSPI 2,062.33 0.11 0.01 August review KOSPI 200 271.68 -0.34 -0.12 KOSDAQ 644.28 5.69 0.89

Sector News & Analysis Turnover ('000 shares, Wbn) Conglomerates (Overweight) Volume Value Lotte Group: The transformation begins KOSPI 497,840 4,572 KOSPI 200 70,337 2,883 KOSDAQ 810,021 4,140

Market Cap (Wbn) Value KOSPI 1,376,689 KOSDAQ 225,609

KOSPI Turnover (Wbn) Buy Sell Net Foreign 1,415 1,496 -80 Institutional 956 860 96 2,154 2,185 -31

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 399 435 -36 Institutional 167 170 -3 Retail 3,553 3,498 56

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 1,132 1,096 36 KOSDAQ 372 415 -43

Advances & Declines Advances Declines Unchanged KOSPI 465 348 78 KOSDAQ 764 451 92

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Electronics 46,900 -200 281 KODEX Kosdaq150 7,575 95 228 Leverage KODEX KOSDAQ150 8,465 -60 166 INVERSE Hynix 79,400 -100 162 KODEX Leverage 12,060 5 129

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Heungu 8,480 1,950 184 Easy Bio System 6,480 930 115 Choong Ang Vaccine 22,500 3,400 98 Laboratory ViroMed 194,300 -4,900 96 Woorison F&G 2,840 505 84 Note: As of September 17, 2019

This document is a summary of a report prepared by Mirae Asset Co., Ltd. (“Mirae Asset Daewoo”) and published on our website. Please review the compliance notices contained in the original report. Information and opinions contained herein have been compiled in good faith from sources deemed to be reliable. However, the information has not been independently verified. Mirae Asset Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy or completeness of the information and opinions contained in this document. Mirae Asset Daewoo accepts no responsibility or liability whatsoever for any loss arising from the use of this document or its contents or otherwise arising in connection therewith. Information and opinions contained herein are subject to change without notice. This document is for informational purposes only. It is not and should not be construed as an offer or solicitation of an offer to purchase or sell any securities or other financial instruments. This document may not be reproduced, further distributed or published in whole or in part for any purpose.

Orion (271560 KS) August review

Food & Beverage August review: Uptrend continues In August, Orion recorded a 6.9% YoY increase in revenue (W179.2bn) and 13.7% YoY Company Report rise in operating profit (W33.1bn; OP margin of 18.5%, +1.1%p) on a consolidated basis September 17, 2019 (Korea, , , and Russia). In China, which has the biggest impact on Orion’s earnings, revenue (W90.8bn) grew 4.7% YoY, but operating profit (W18.7bn) slipped 0.5% YoY in the month. Revenue growth was driven by sales of new products (mostly new flavors of existing products), (Maintain) such as Oh Gamja (cheese bacon and mala shrimp), Swing Chips (cucumber and salt), Buy candies (My Gumi and King Jelly), and Ggobuk Chips (mala shrimp), which were boosted by the addition of new shelf space and distributors. The fall in operating profit Target Price (12M, W) ▲ 130,000 was largely due to expenses related to store entry/shelf space/promotions, caused by the addition of new shelf space (10,000 sites in traditional trade channels added in Guangzhou, Shanghai, and Shenzhen) and expansion within existing distributors (1,000 Share Price (09/17/19, W) 97,800 modern trade channels added).

Expected Return 33% In Vietnam, revenue grew 23.5% YoY, and operating profit (W5.3bn) surged 76.7% YoY in the month, helped by: 1) a sales boost from a 20% increase in snack weight; 2) sales of rice cakes and packaged bread; and 3) growth in Choco Pie sales. OP (19F, Wbn) 297 In Korea, robust earnings continued, with revenue growing 5.1% YoY and operating profit (W8.1bn) rising 20.9% YoY on the back of sales of new flavors (Chicken Pop, Sun Consensus OP (19F, Wbn) 301 Chips, and Poka Chip) and cost stabilization. EPS Growth (19F, %) 42.5 3Q19 outlook Market EPS Growth (19F, %) -28.1 For 3Q19, we forecast revenue to grow 8.5% YoY, and operating profit (W93.6bn) to P/E (19F, x) 19.4 increase 19.0% YoY (OP margin of 17.5%, +1.6%p YoY). We look for solid earnings Market P/E (19F, x) 13.1 across Korea, China, Vietnam, and Russia. KOSPI 2,062.33 In China (which accounted for 48.4% of revenue and 50.2% of profits in 2018), we Market Cap (Wbn) 3,867 expect revenue to grow 7.7% YoY. Despite a tough YoY comparison, revenue should remain supported by: 1) robust sales of new products (Oh Gamja, Swing Chips, and Shares Outstanding (mn) 40 Ggobuk Chips); 2) the Golden Week holiday; and 3) the addition of new distributors in Free Float (%) 56.2 Guangzhou and Shanghai. We forecast operating profit to grow a modest 7.1% YoY. Foreign Ownership (%) 38.5 Selling expenses are likely to increase in October, as the company has resumed its Beta (12M) 0.25 sales push (acquiring new shelf space and aggressively releasing new products) in China now that the THAAD impact has mostly died down. 52-Week Low 78,500 52-Week High 124,000 Maintain Buy and raise TP to W130,000 Orion’s efforts to restore its snack competitiveness in China (new product rollouts, (%) 1M 6M 12M weight increases, shelf space addition, and use of quality potatoes) are slowly Absolute 14.7 -2.7 -6.0 beginning to bear fruit. In Vietnam, Choco Pie sales are normalizing, and snack sales Relative 7.1 2.7 5.0 are also increasing. As a result, Orion’s stock has been bouncing back.

130 Orion KOSPI We maintain our Buy rating on Orion, as we continue to believe in the company’s long- 120 term growth potential overseas. We raise our target price to W130,000 (from W110,000), which is based on 22x our 2019-20 EPS estimate. We revised our target 110 multiple upwards to 22x (from 20x previously), in light of the company’s improved 100 fundamentals in China. Of note, major Chinese F&B stocks (snacks, instant noodles, 90 and dairy) are trading at 2019-20F P/Es of 22-25x. 80 70 9.18 1.19 5.19 9.19

Mirae Asset Daewoo Co., Ltd.

[ F&B] FY (Dec.) 12/16 12/17 12/18 12/19F 12/20F 12/21F Revenue (Wbn) 0 1,073 1,927 1,998 2,137 2,274 Woon-mok Baek +822-3774-1679 OP (Wbn) 0 107 282 297 326 357 [email protected] OP margin (%) - 10.0 14.6 14.9 15.3 15.7

NP (Wbn) 0 76 140 199 224 247 EPS (W) 0 3,261 3,538 5,040 5,671 6,239 ROE (%) 0.0 5.8 10.3 13.2 13.1 12.8

P/E (x) - 32.0 33.9 19.4 17.2 15.7 P/B (x) - 3.2 3.4 2.4 2.1 1.9 Dividend yield (%) - 0.6 0.5 0.6 0.7 0.8 Note: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, Mirae Asset Daewoo Research estimates

Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.

Conglomerates Lotte Group: The transformation begins

Overweight (Maintain) Stake sales will allow Lotte Corp. to meet holding company requirements and clear uncertainties Industry Report Lotte Corp. is currently in the process of selling its stakes in financial affiliates, September 18, 2019 including and , to comply with fair trade laws, which prohibit general holding companies from owning shares in financial companies. The company is required to complete the stake disposals by October 11th. Yesterday, there were media reports that the Commission (FSC) is set to approve the MBK Mirae Asset Daewoo Co., Ltd. Partners/Woori Bank consortium as Lotte Card’s majority shareholder on October 2nd, and that Lotte Corp. plans to sell its 25.6% stake in Lotte Capital to -based Lotte [Conglomerates/Software] Holdings next week. If the stake sales are completed within the deadline, we believe

Dae-ro Jeong this would be positive for Lotte Corp., as it would allow the company to meet its +822-3774-1634 holding company requirements and clear uncertainties. [email protected] Major group issues: DT-focused massive investment and asset securitization

creates positive investment cycle (1) Five-year, W50tr investment plan

By business segment, retail will account for 25% of the planned investment, food 10%,

chemical/construction 40%, and tourism/service 25%. Lotte Group plans to make massive investments through 2023, in a bid to enhance the competitiveness of its businesses and identify future growth engines. In particular, the retail business, led by Lotte Shopping, aims to increase its online revenue from W7tr in 2018 to W20tr in 2022 by investing heavily in online operations (e.g. integrating its online malls and establishing distribution systems).

(2) Group digital transformation

Lotte Corp. has launched a Digital Transformation (DT) strategy organization that focuses on realizing smart factory, smart logistics, smart retail, and smart services across the group. By building a “One LOTTE Smart Ecosystem”, the group is looking to realize IT-based business innovation and strengthen competitiveness to ensure sustainable growth.

(3) Lotte REIT to go public in late October

Lotte Group plans to list Lotte REIT, which owns ten Lotte Shopping stores, in late October. Lotte REIT is expected to offer a stable annual dividend yield of around 6% through master leases with Lotte Shopping.

Lotte REIT sets in motion investment idea: Lotte REIT→Lotte Shopping→Lotte Data Communication→Lotte Corp. · Lotte REIT (to be listed): Annual dividend yield in the 6% level; expected to add more quality assets from Lotte Group · Lotte Shopping (023530 KS): Likely to raise W1tr through asset securitization, which the company plans to use on new businesses, including online operations · Lotte Data Communication (286940 KS): IT investments and push for digital transformation by affiliates, such as Lotte Shopping, to create business opportunities · Lotte Corp. (004990 KS): A rise in the value of subsidiary stakes (40% in Lotte Shopping and 65% in Lotte Data Communication) could trigger a rerating.

September 18, 2019 Conglomerates

Lotte Corp. (004990 KS) Holding company conversion almost complete; Re-rating in the cards

Conglomerates Initiate coverage with Buy and TP of W52,000 We initiate our coverage on Lotte Corp. with a Buy rating and target price of W52,000. Our target price is based on a sum-of-the-parts (SOTP) valuation, consisting of brand (Initiate) Buy royalty income, the value of real estate investments, and the value of subsidiary stakes.

Target Price (12M, W) 52,000 We estimate that subsidiary stakes represent roughly 75% (45% for listed subsidiaries and 30% for unlisted subsidiaries) of Lotte Corp.’s total asset value. Of this, Lotte Chemical and Lotte Shopping are the biggest contributors, at 19% and 14%, respectively. Share Price (09/17/19, W) 37,800 Indeed, Lotte Corp.’s share price has shown a strong correlation with the share prices of Lotte Chemical (+0.91) and Lotte Shopping (+0.97) since 2019. Expected Return 38% At present, Lotte Corp. is trading at a 49% discount to its estimated NAV per share.

OP (19F, Wbn) 188 Investment points: Holding company conversion almost complete; Subsidiary Consensus OP (19F, Wbn) - stake value to trigger rerating EPS Growth (19F, %) 198.2 1) Lotte Corp. to meet holding company requirements and clear uncertainties with Market EPS Growth (19F, %) -28.1 financial affiliate stake sales P/E (19F, x) 7.3 Lotte Corp. is currently in the process of selling its stakes in financial affiliates, including Market P/E (19F, x) 13.1 Lotte Card and Lotte Capital, to comply with fair trade laws, which prohibit general KOSPI 2,062.33 holding companies from owning shares in financial companies. The company is required to complete the stake disposals by October 11th. Yesterday, the media reported that the Market Cap (Wbn) 3,966 FSC is set to approve the MBK Partners/Woori Bank consortium as Lotte Card’s majority Shares Outstanding (mn) 106 shareholder on October 2nd and that Lotte Corp. plans to sell its 25.6% stake in Lotte Free Float (%) 24.9 Capital to Japan-based next week. If the stake sales are completed within Foreign Ownership (%) 12.3 the deadline, we believe this would be positive to Lotte Corp., as it would allow the Beta (12M) 0.98 company to meet its holding company requirements and clear uncertainties. We believe 52-Week Low 29,800 the company will use the proceeds from the stake sales to pay down its short-term borrowings, which have increased following the acquisition of Lotte Chemical shares. 52-Week High 58,900 2) Lotte REIT’s IPO to pave way for new business opportunities for Lotte Shopping (%) 1M 6M 12M and Lotte Data Communication Absolute 26.8 -25.3 -30.6 Relative 18.5 -21.2 -22.5 Lotte Group plans to list Lotte REIT, which owns ten Lotte Shopping stores, in late October. Lotte Shopping is expected to raise around W1tr through the asset

130 KOSPI securitization and plans to invest the proceeds in new businesses, including online

110 operations. Meanwhile, Lotte Data Communication, which is the group’s only IT service provider, is likely to see new business opportunities from the IT investments and digital 90 transformation push by major group affiliates, such as Lotte Shopping. As both Lotte Shopping and Lotte Data Communication gain new business opportunities, this could 70 lead to a rise in the value of Lotte Corp.’s stakes in the two companies (40% and 65%,

50 respectively), triggering a valuation rerating. 9.18 1.19 5.19 9.19 3) IPO of unlisted subsidiaries to boost stake value

We expect Lotte Corp.’s unlisted subsidiaries, such as Korea Seven and Lotte GRS (), to follow in the footsteps of Lotte Data Communication and pursue IPOs. In this process, Lotte Corp.’s holdings could be re-rated at a higher value.

FY (Dec.) 12/15 12/16 12/17 12/18 12/19F 12/20F

Revenue (Wbn) 2,258 2,248 1,869 7,271 8,955 9,204 OP (Wbn) 144 128 -7 98 188 210 OP margin (%) 6.4 5.7 -0.4 1.3 2.1 2.3

NP (Wbn) 75 70 469 185 551 663 EPS (W) 2,117 1,965 10,602 1,746 5,207 6,265 ROE (%) 3.0 2.8 11.0 2.8 7.5 8.3

P/E (x) 30.5 25.8 6.1 30.2 7.3 6.0 P/B (x) 0.9 0.7 0.7 0.6 0.4 0.4 메일@ miraeasset.com Dividend yield (%) 0.7 0.9 0.0 1.5 2.1 2.1 Note: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research 2 September 18, 2019 Conglomerates

Lotte Data Communication (286940 KS) Group IT investments to drive earnings growth

Investment points: Only IT services provider within Lotte Group 1) Group IT investments to drive earnings growth (Maintain) Buy Lotte Data Communication acts as Lotte Group’s IT control tower and generates around 80% of its revenue from group affiliates. Lotte Group has announced plans to invest Target Price (12M, W) 63,000 W50tr across its domestic and overseas businesses over the next five years. We believe this will lead to new business opportunities and meaningful earnings growth for Lotte Share Price (09/17/19, W) 41,500 Data Communication, which will likely take charge of the group’s IT infrastructure projects, such as the construction of smart factories and logistics systems. Expected Return 52% 2) Gradual margin improvement OP (19F, Wbn) 49 Consensus OP (19F, Wbn) 51 Driven by increasing affiliate demand in high-tech sectors related to the group’s digital transformation, such as IoT, cloud computing, Big Data, and mobility, we expect the EPS Growth (19F, %) 81.1 company’s revenue mix to shift towards such high-margin businesses. As a result, Market EPS Growth (19F, %) -28.1 margins should grow more rapidly than revenue. P/E (19F, x) 10.4 Market P/E (19F, x) 13.1 3) HIT merger effects to materialize in 2H19 KOSPI 2,062.33 On July 1st, Lotte Data Communication finalized its merger with subsidiary Hyundai Market Cap (Wbn) 639 Information Technology (HIT). In 2Q19, HIT turned to an operating profit, thanks to the Shares Outstanding (mn) 15 normalization of its Yongin data center from late March (2Q19 utilization was 95%). Free Float (%) 30.5 Following the merger, we believe the company will capture various business Foreign Ownership (%) 1.6 opportunities from non-affiliates and overseas markets, especially in areas like data Beta (12M) 0.04 centers and SOC (railway, airports, and ports.), in 2H19. We also expect the merger to 52-Week Low 30,100 help improve the company’s cost competitiveness through savings in administrative 52-Week High 51,300 expenses. (%) 1M 6M 12M 4) Inorganic growth via M&As Absolute 2.0 -8.8 23.5 Relative -4.7 -3.8 37.9 Backed by large cash holdings (W249.2bn as of end-1H19), the company is weighing

190 Lotte Data Communication M&As to expand overseas. We expect the company to secure additional growth KOSPI 170 overseas, while enjoying stable domestic growth from group affiliates. 150 130 Maintain Buy and TP of W63,000; undervalued, given profit growth potential 110 We reaffirm our Buy rating and target price of W63,000 on Lotte Data Communication. 90 At a 2019F P/E of 14x, the stock’s valuation looks attractive relative to peers, such as 70 Samsung SDS (22x) and Hyundai Autoever (19x). 9.18 1.19 5.19 9.19 For full-year 2019, we forecast revenue of W901.8bn (+11.1% YoY), operating profit of W49.2bn (+26.1% YoY), and net profit attributable to controlling interests of W59.2bn (+125% YoY). We believe the company will easily exceed its full-year guidance (revenue growth of more than 10% and OP margin of more than 4.8%).

FY (Dec.) 12/15 12/16 12/17 12/18 12/19F 12/20F

Revenue (Wbn) 0 0 149 812 902 1,011 OP (Wbn) 0 0 5 39 49 57 OP margin (%) - - 3.4 4.8 5.4 5.6

NP (Wbn) 0 0 2 26 59 46 EPS (W) 0 0 1,139 2,205 3,991 3,010 ROE (%) 0.0 0.0 1.0 9.6 15.8 11.1

P/E (x) - - - 16.1 10.4 13.8 P/B (x) - - - 1.4 1.6 1.5 메일@ miraeasset.com Dividend yield (%) - - - 1.8 1.6 1.6 Note: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research 3

Mirae Asset Daewoo Research Key Universe Valuations September 18, 2019

※All data as of close September 16, 2019, unless otherwise noted.

19F Earnings growth Mkt Cap Price P/E (x) P/B (x) ROE (%) Ticker Company Div Yield OP EPS (Wbn) (W) (%) 19F 20F 19F 20F 19F 20F 19F 20F 19F 20F 005930 279,983 46,900 3.0 -53.4 23.9 -46.6 21.4 14.6 12.0 1.2 1.2 8.8 10.0 000660 SK Hynix 57,803 79,400 1.9 -85.3 102.4 -84.1 94.0 23.4 12.1 1.1 1.1 5.2 9.5 005380 Hyundai Motor 26,922 126,000 3.2 67.7 4.7 142.3 10.8 9.7 8.8 0.5 0.5 5.2 5.5 035420 NAVER 25,546 155,000 0.2 -23.3 105.7 -50.8 169.4 80.1 29.7 3.8 3.4 5.9 14.5 012330 23,636 248,000 1.6 10.3 7.8 25.4 8.8 10.2 9.4 0.7 0.7 7.4 7.4 051910 LG Chem 23,119 327,500 1.8 -35.9 64.2 -45.2 95.2 31.7 16.3 1.4 1.3 4.7 8.7 068270 Celltrion 21,946 171,000 - - - - 0.0 0.0 005490 POSCO 20,750 238,000 4.2 -21.1 -1.8 55.3 -0.7 7.9 8.0 0.4 0.4 5.9 5.7 051900 LG H&H 20,304 1,300,000 0.8 12.8 9.7 16.5 10.7 25.5 23.0 5.6 4.7 20.3 19.1 055550 20,272 42,750 14.3 5.4 11.3 0.9 5.8 5.7 0.5 0.5 9.3 8.6 017670 SK Telecom 19,339 239,500 4.2 11.4 3.3 -58.6 71.4 14.9 8.7 0.8 0.7 5.7 9.3 105560 KB Financial Group 18,439 44,100 10.3 4.1 12.6 3.2 5.4 5.2 0.5 0.4 9.3 8.9 000270 Motors 17,836 44,000 1.8 20.5 19.7 54.5 16.7 10.0 8.6 0.6 0.6 6.3 7.0 028260 Samsung C&T 17,357 91,500 2.2 -16.8 41.4 -39.5 16.8 16.9 14.5 0.6 0.6 4.2 4.1 015760 KEPCO 16,434 25,600 - 305.3 - - - 26.8 0.2 0.2 - 0.9 006400 Samsung SDI 16,125 234,500 0.4 22.3 40.8 14.1 34.5 20.6 15.3 1.2 1.2 6.4 8.0 096770 SK Innovation 15,858 171,500 4.7 -29.7 10.7 -53.9 53.4 21.1 13.8 0.8 0.8 4.2 6.3 018260 Samsung SDS 15,437 199,500 1.3 13.6 15.8 13.2 15.8 21.7 18.7 2.3 2.1 11.3 12.0 034730 SK Holdings 14,811 210,500 2.4 3.5 23.6 -50.2 14.0 13.3 11.7 0.8 0.8 6.5 6.9 032830 Samsung Life 14,560 72,800 - - - - 0.0 0.0 033780 KT&G 14,141 103,000 4.1 12.8 5.6 17.5 5.1 13.3 12.7 1.6 1.5 12.7 12.6 003550 LG Corp. 12,321 71,400 3.2 17.2 15.4 5.5 15.6 6.4 5.5 0.6 0.6 10.5 11.1 036570 NCsoft 11,460 522,000 1.2 4.9 73.6 31.4 51.5 20.8 13.8 3.6 2.9 21.3 26.5 010950 S-Oil 11,371 101,000 1.3 10.0 148.5 39.0 265.3 32.8 9.0 1.7 1.5 5.4 17.7 000810 Samsung F&M 11,062 233,500 - - - - 0.0 0.0 035720 11,062 132,000 0.1 184.9 132.6 205.6 127.5 70.5 31.0 2.1 2.0 3.0 6.5 086790 10,749 35,800 11.5 6.2 9.6 8.5 4.4 4.0 0.4 0.3 9.0 8.9 066570 LG Electronics 10,735 65,600 1.1 -11.8 30.9 -20.9 81.5 12.1 6.7 0.8 0.7 6.6 11.1 009540 KSOE 8,847 125,000 - 215.7 - 27.2 216.7 170.4 0.8 0.8 0.3 0.4 011170 Lotte Chemical 8,655 252,500 4.2 -35.3 21.0 -39.4 30.8 9.0 6.9 0.6 0.6 7.3 9.0 251270 8,487 99,000 16.8 50.4 24.2 35.1 35.8 26.5 1.8 1.7 5.3 6.7 010130 Korea Zinc 8,369 443,500 2.5 14.1 2.3 26.3 -2.0 12.6 12.8 1.2 1.1 10.2 9.3 090430 AmorePacific 8,097 138,500 0.8 -15.7 30.9 -9.8 31.4 27.0 20.6 2.1 1.9 6.6 8.1 024110 7,647 13,300 6.0 3.0 3.9 2.0 4.8 4.7 0.4 0.4 8.5 8.1 091990 Celltrion Healthcare 7,498 52,100 - 214.5 745.0 180.7 77.6 27.6 4.1 3.7 5.7 14.8 009150 Samsung Electro-Mechanics 7,223 96,700 1.1 -39.9 36.8 -3.0 -7.6 11.8 12.7 1.3 1.2 12.4 10.3 030200 KT 7,168 27,450 4.0 9.5 1.0 18.2 5.3 8.8 8.4 0.5 0.5 6.0 6.0 018880 Hanon Systems 6,379 11,950 - - - - 0.0 0.0 032640 LG Uplus 5,916 13,550 4.8 -13.0 8.7 -18.0 12.3 15.0 13.3 0.8 0.8 5.7 6.2 267250 5,831 358,000 5.2 78.7 2.1 154.0 4.5 8.5 8.2 0.7 0.6 8.6 8.5 Holdings 086280 5,681 151,500 2.2 13.5 4.6 23.2 21.9 10.5 8.6 1.2 1.1 11.9 13.1 004020 5,405 40,500 1.9 6.1 22.5 53.1 31.9 8.9 6.7 0.3 0.3 3.5 4.3 000720 Hyundai E&C 5,356 48,100 1.0 22.4 10.8 49.0 7.3 9.4 8.8 0.8 0.8 8.9 8.9 010140 5,311 8,430 - - - - - 33.9 0.7 0.7 - 2.4 034220 LG Display 5,260 14,700 - - - - - 28.3 0.4 0.4 - 1.4 071050 Korea Investment Holdings 4,408 79,100 - - - - 0.0 0.0 029780 Samsung Card 3,968 34,250 -16.3 3.1 2.8 4.1 11.2 10.7 0.6 0.5 1.5 1.5 004990 LOTTE Corporation 3,966 37,800 2.1 91.0 11.9 198.2 20.3 7.3 6.0 0.4 0.4 7.5 8.3 047810 Korea Aerospace 3,953 40,550 0.5 72.1 -6.3 265.3 -18.9 18.9 23.3 3.3 2.9 18.9 13.3 023530 Lotte Shopping 3,890 137,500 3.8 16.6 4.2 - 1.1 12.4 12.2 0.3 0.3 2.7 2.6 Source: Mirae Asset Daewoo Research

Mirae Asset Daewoo Research Market Data September 18, 2019

※All data as of close September 17, 2019, unless otherwise noted. Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 425.14 4.65 1.11 -0.88 USD/KRW 1,184.00 1,191.40 1,211.70 1,119.20 KOSPI 2,062.33 0.11 0.01 2.60 JPY100/KRW 1,095.13 1,105.14 1,141.55 999.42 KOSDAQ 644.28 5.69 0.89 -3.75 EUR/KRW 1,302.93 1,320.19 1,346.32 1,301.07 Dow Jones* 27,076.82 -142.70 -0.52 16.07 3Y Treasury 1.32 1.35 1.10 1.97 S&P 500* 2,997.96 -9.43 -0.31 19.44 3Y Corporate 1.82 1.85 1.63 2.41 NASDAQ* 8,153.54 -23.17 -0.28 22.32 DDR4 8Gb* 3.25 3.25 3.53 7.38 Philadelphia Semicon* 1,594.49 -11.16 -0.69 36.83 NAND MLC 64G* 2.43 2.42 2.46 3.07 FTSE 100* 7,321.41 -46.05 -0.63 8.72 Oil (Dubai)* 63.88 58.36 58.20 76.31 Nikkei 225 22,001.32 13.03 0.06 12.47 Gold* 1,504.80 1,492.90 1,512.50 1,196.20 Hang Seng* 27,124.55 -228.14 -0.83 7.94 Customer deposits (Wbn)* 24,811 24,055 24,991 24,587 Taiwan (Weighted) 10,874.50 -23.63 -0.22 13.82 Equity type BC (Wbn)(Sep. 11) 79,314 79,170 78,363 81,736 Note: * as of September 16, 2019 Source: KSDA, FnGuide, DRAMeXchange, MSCI

KOSPI Top 10 Foreign Net Buy / Net Sell (Wbn) KOSPI Top 10 Institutional Net Buy / Net Sell (Wbn) Net Buy Net Sell Net Buy Net Sell KODEX 200 27.10 Hyundai Motor 30.68 28.00 KODEX 200 23.64 Samsung Biologics 20.74 Hynix 29.24 KODEX Kosdaq150 Leverage 22.34 TIGER200 13.02 TIGER200 14.28 Celltrion 15.85 KODEX Leverage 17.91 KODEX 200 Futures Inverse 2X 12.39 SEMCO 12.06 SK C&C 14.19 Celltrion 14.67 Sunjin 6.32 7.50 Amore Pacific 12.63 Hynix 14.64 KODEX Inverse 5.79 Shinhan Inverse 2X WTI KT&G 5.88 SK Telecom 11.86 SK Telecom 10.64 5.03 Futures ETN(H) Doosan Heavy Ind. & Dongbu Hannong Chemical 5.80 7.41 Hanmi Pharm 10.31 Kakao 4.86 Construction 5.38 Korea 6.69 Hyundai Motor 7.94 KODEX KOSDAQ150 INVERSE 4.83 LG Chem 4.99 LG Display 6.26 SK C&C 6.68 Samsung Electronics 4.67 Kia Motors 4.95 LG Electronics 5.90 Samsung SDS 4.92 Shilla 4.47 Source: KSDA, FnGuide

KOSDAQ Top 10 Foreign Net Buy / Net Sell (Wbn) KOSDAQ Top 10 Institutional Net Buy / Net Sell (Wbn) Net Buy Net Sell Net Buy Net Sell RFHIC 4.41 ViroMed 20.28 Nepes 4.71 ECOPROBM 6.68 SFA Engineering 4.39 Celltrion Healthcare 9.25 Celltrion Healthcare 3.80 Easy Bio System 5.49 Soulbrain 1.95 Easy Bio System 5.82 iNtRON Bio 2.38 Woorison F&G 2.99 HLB 1.85 Emerson Pacific 4.49 SillaJen 2.13 HFR 2.57 KG Inicis 1.57 Komipharm 4.15 ABL Bio 2.04 Esmo 1.94 AfteecaTV 1.46 Heungu 3.33 OE Solutions 2.02 L&F 1.77 ENF Technology 1.36 Harim Holdings 2.79 Deutsch Motors 2.01 NEOWIZ Games 1.52 SK Materials 1.26 SillaJen 2.43 OliX 1.71 Daejoo Electronic Materials 1.49 1.24 Hyundai Feed 2.23 Alteogen 1.64 J contentree 1.46 Eutilex 1.21 Celltrion 2.19 CJ ENM 1.51 DAT 1.36 Source: KSDA, FnGuide

KOSPI Top 10 by Market Cap (Wbn) KOSDAQ Top 10 by Market Cap (Wbn) Close (W) Chg (W) Mkt Cap Close (W) Chg (W) Mkt Cap Samsung Electronics 46,900 -200 279,983 Celltrion Healthcare 52,100 1,200 7,498 Hynix 79,400 -100 57,803 ViroMed 194,300 -4,900 4,143 Samsung Electronics (P) 39,200 100 32,257 CJ ENM 167,400 3,400 3,671 Hyundai Motor 126,000 -2,000 26,922 KMW 72,000 -400 2,862 NAVER 155,000 500 25,546 PearlAbyss 192,300 300 2,504 Hyundai Mobis 248,000 3,500 23,636 Medy-tox 370,000 4,900 2,152 LG Chem 327,500 3,000 23,119 Hugel 398,200 -1,100 2,079 Celltrion 171,000 500 21,946 Studio Dragon 69,300 -400 1,947 Samsung Biologics 315,000 21,500 20,842 HLB 47,600 1,200 1,868 POSCO 238,000 0 20,750 SK Materials 172,000 1,000 1,814 Source: