September 2, 2014

KOREA

Company News & Analysis Major Indices Close Chg Chg (%) Heavy Industries (010140/Trading Buy/TP: W33,500) Downgrade rating & lower TP KOSPI 2,051.58 -16.28 -0.79 SHI to absorb Samsung Engineering KOSPI 200 262.61 -2.66 -1.00 KOSDAQ 568.74 1.79 0.32

Sector News & Analysis Turnover ('000 shares, Wbn) Electronic Materials (Overweight) Volume Value KOSPI 319,591 3,982 Finding calm amid the smartphone turbulence KOSPI 200 56,932 2,935 Holding Companies (Overweight) KOSDAQ 335,940 2,023 Progress in efforts to introduce intermediate financial holding companies Market Cap (Wbn) Value Auto (Overweight) KOSPI 1,228,125 Decline in working days hits production KOSDAQ 138,805 KOSPI Turnover (Wbn) Buy Sell Net Foreign 963 933 30 Institutional 890 1,104 -214 Retail 2,092 1,906 186

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 134 75 59 Institutional 89 92 -3 Retail 1,798 1,851 -53

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 691 844 -153 KOSDAQ 23 16 7

Advances & Declines Advances Declines Unchanged KOSPI 351 458 71 KOSDAQ 432 511 60

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value KODEX LEVERAGE 11,870 -220 429 1,194,000 -32,000 379 KODEX INVERSE 7,655 75 166 Hyundai Motor 225,500 -6,500 135 Samsung Heavy Ind. 27,950 -1,000 132

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Daum Communications 166,800 3,800 97 Agabang 6,700 820 67 Com2us 132,700 2,700 62 Sansung P&C 23,300 950 52 LiHOM-CUCHEN 13,700 850 41 Note: As of September 2, 2014

This document is a summary of a report prepared by Daewoo Securities Co., Ltd. (“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. 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. 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.

Samsung Heavy Industries (010140 KS) SHI to absorb Samsung Engineering

SHI announced it will absorb Samsung Engineering Shipbuilding (SHI) announced on September 1 st that the company will absorb Samsung Engineering, with the merger process scheduled to be completed on st Company Update December 1 . The merger ratio is fixed at 1:2.359, meaning shareholders of Samsung Engineering will receive 2.359 SHI shares for each share they own. The merger prices and September 2, 2014 ratio were calculated based on the Financial Investment Services and Capital Markets Act.

SHI will hold a general shareholders’ meeting on the merger on October 27 th . Trading of th th (Downgrade) Trading Buy Samsung Engineering shares will be suspended from November 27 to December 12 , with new shares scheduled to be listed on December 15 th . Shareholders that will have bought Samsung Engineering shares or cancelled share borrowing contracts by September Target Price (12M, W) 33,500 22 nd will be able to exercise appraisal rights. Dissenting shareholders of SHI can exercise appraisal rights at W27,003 per common share and W28,354 per preferred share. Share Price (09/01/14, W) 28,950 Samsung Engineering shareholders will be able to exercise appraisal rights at W65,439 per common share. Both SHI and Samsung Engineering shares closed higher than their Expected Return 16% respective appraisal rights exercise prices on September 1 st .

Synergy generation or ownership succession plan? OP (14F, Wbn) 331 SHI and Samsung Engineering said the merger is aimed at generating synergy. Du ring the Consensus OP (14F, Wbn) 279 conference call, however, they talked only about potential medium- to long-term synergy, rather than near-term effects. In the on- and off-shore plant businesses, the only overlap EPS Growth (14F, %) -55.1 between the companies is in the procurement of some major parts. Mo reover, their Market EPS Growth (14F, %) 12.7 respective project management businesses do not share common ground. In our view, the P/E (14F, x) 23.6 merger is unlikely to generate synergy within two years, especially considering that the Market P/E (14F, x) 12.1 companies do not appear to have engaged in detailed discussion prio r to making the KOSPI 2,067.86 merger decision.

Market Cap (Wbn) 6,684 Samsung Group has stepped up its reorganization efforts in light of the deteriorating Shares Outstanding (mn) 231 health of the group’s chairman. We believe these efforts are aimed at helping leadership Free Float (%) 69.6 succession. The group aims to vertically integrate its operations and remove redundant Foreign Ownership (%) 22.9 businesses to enhance global competitiveness. Beta (12M) 1.68 52-Week Low 25,200 Downgrade to Trading Buy and lower TP to W33,500 52-Week High 45,550 We believe the share prices of SHI and Samsung Engineering will eventually converge, and so whichever stock falls more or rises less than the other in the near term will be the more (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M attractive investment. It appears that the stocks’ differentiated performances following Absolute 3.0 -9.2 -26.7 the merger announcement are being driven by arbitrage traders. Relative 3.3 -13.1 -31.7 We downgrade our rating from Buy to Trading Buy, and lower our target price by 5% to

130 Samsung Heavy KOSPI W33,500. We applied a P/B of 1.45x to the 2015F BPS of the merged corporation. In

110 deriving our target price, we calculated the enterprise value based on the merger ratio, and summed the revenue, etc., of the two companies (arithmetic sums are allowed 90 because the two companies did not recognize any consolidated financial data before the

70 merger). If the aforementioned synergies are generated earlier than expected, the merged firm’s enterprise value may i ncrease further. We expect the company’s P/B to jump from 50 8.13 12.13 4.14 8.14 0.9x to 1.24x following the merger.

Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/11 12/12 12/13 12/14F 12/15F 12/16F Revenue (Wbn) 13,392 14,489 14,835 13,781 13,988 14,478 [Shipbuilding & Machinery] OP (Wbn) 1,083 1,206 914 331 790 840

Ki-jong Sung OP margin (%) 8.1 8.3 6.2 2.4 5.6 5.8 +822-768-3263 NP (Wbn) 851 796 632 284 618 667 [email protected] EPS (W) 3,685 3,448 2,737 1,228 2,676 2,887

Hyung-ryul Park ROE (%) 20.1 16.0 11.4 4.8 9.8 9.8 +822-768-4165 P/E (x) 7.6 11.2 13.9 23.6 10.8 10.0 [email protected] P/B (x) 1.2 1.5 1.4 1.0 0.9 0.9 Note: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Ye-gee Kim Source: Company data, KDB Daewoo Securities Research estimates +822-768-4155 [email protected] Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including t he U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURESDISCLOSURES & DISCLAIMERS IN APPENDIX 1 AATT THE END OF REPORT.

Electronic Materials Finding calm amid the smartphone turbulence

What’s new: Smartphone saturation takes bigger toll than expected Overweight (Maintain) In 1H, many of Samsung Electronics’ (SEC) smartphone materials suppliers suffered Industry Report sharp earnings declines YoY, due to the electronic giant’s embattled smartphone business. Those firms with large exposure to SEC , having once enjoyed high profit September 1, 2014 margins thanks to their dominant positions, have been particularly hard-hit.

Our view: Consensus still too bullish Daewoo Securities CCCo.,Co., Ltd. We recommend a conservative stance on the electronic materials sector in 2H, as we see [Semiconductor/Electronic Materials] limited upside to earnings for smartphone-related suppliers. While SEC should see

Will Cho increased smartphone shipments in 3Q, inventory building is expected to be more muted +822-768-4306 than before due to dwindling demand. And with smartphone prices moving downwards, [email protected] the downward pressure on components and materials prices is unlikely to subside.

Joon-ho Jang In the near term, we advise selectively focusing on electronic materials stocks with +822-768-3241 limited exposure to smartphones. Although smartphone-related stocks have pulled back [email protected] sharply, we believe consensus estimates are still too bullish. We expect shares to hit a

bottom only when the impact of SEC’s 3Q earnings weakness is priced into the sector’s earnings estimates.

Strategy: Focus on materials used in components; Top pick is OCI Materials We believe SEC will shift its growth strategy away from devices and into co mponents. As such, investors should focus on companies supplying materials used in the manufacturing of next-generation components, such as semiconductors, LCDs, and flexible OLEDs.

We present OCI Materials as our top pick, as the company is highly expose d to the LCD and semiconductor industries, and is well-poised to benefit from industry restructuring. The company should see huge margin gains in 2H, driven by a simultaneous increase in ASP and volume. We also advise closely watching Soulbrain and Duksan Hi-Metal. Even though both companies reported lackluster earnings in 1H because of their heavy reliance on smartphones, they have improved their financial positions, having raised their cash reserves in 1H. A sound balance sheet is imperative for a company’s survival during industry downturns, and lays the foundation for rapid earnings growth once the industry cycle picks up.

2H2H2H OP growth forecast (YoY)(YoY):: Focus on OCI MMMaterialsMaterialsaterials’’’’ turnaround (%) 11,000% 50

25 14%

0

-13% -13% -25

-41% -41% -50 -49% OCI Materials Wonik Materials Hansol Chemical Electronic Innox Soulbrain Duksan Hi-Metal Materials

Notes: Wonik Materials earnings are consensus figures Source: KDB Daewoo Securities Research

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

Holding Companies (Overweight/Maintain)

Progress in efforts to introduce intermediate financial holding companies ¢ Bill allowing non-financial holding companies to own financial subsidiaries is likely to News Comment pass into law by year-end September 2, 2014 ¢ This would enable Hyundai Motor Group (HMG) and others to adopt holding structures without having to dispose of their stakes in financial subsidiaries. ¢ Look for investment opportunities during conversion, especially opportunities arising Daewoo Securities CCo.,o., Ltd. from controlling shareholders ’ efforts to secure sufficient stakes and potential share

[Holding Companies/IT repurchases Services]

Dae-ro Jeong 1. Bill to pass into law by year-end +822-768-4160 [email protected] The bill allowing non-financial holding companies to own financial subsidiaries and requiring

conglomerates to establish intermediate financial holding companies under certain circumstances is still pending at the National Assembly. However, the government has recently demonstrated its firm commitment to the introduction of intermediate financial

holding companies.

In July, the Fair Trade Commission (FTC) disclosed its plan to prioritize the establishment of intermediate financial holding companies in order to encourage large conglomerates to improve their corporate governance and separate financial and non-financial capital. The new economic leadership (led by Finance Minister Choi Kyung-hwan) is pushing the National Assembly to pass bills relevant to the government’s economic democratization agenda (including the intermediate financial holding company requirement) by year-end.

These efforts are consistent with the plans unveiled by the government to boost M&A activities as part of its three-year economic innovation plan, and also with the previous agenda items set forth by the presidential transition committee. Thus, the bill allowing non- financial holding companies to own financial subsidiaries is likely to pass into law by year-end.

TableTableTable 111.1. GovGovGovernmentGov ernment to allow nonnon----financialfinancial holding companies to own financial subsidsubsidiariesiaries NotesNotesNotes Permission for holding companies to own financial subsidiaries; Proposal to revise the Fair Trade Act introduction of intermediate financial holding companies to prevent (9/26/12) movement of capital between financial and non -financial companies Permission for holding companies to own financial subsidiaries; Presidential transition committee’s obligation to establish intermediate financial holding company if certain national agenda (3/21/13) criteria are met FTC policy briefing (4/24/13) Permission for holding companies to own financial subsidiaries; obligation to establish intermediate financial holding company if certain Plan to promote M&As criteria are met—e.g. companies that own three or more financial (3/6/14) subsidiaries (including insurers), or whose financial subsidiaries (including insurers) hold total assets of at least W20tr FTC reports to National Policy Prioritize the establishment of intermediate financial holding companies Committee in order to encourage large conglomerates to improve their corporate (7/2/14 ) governance and separate financial and non -financial capital Passage of economic democratization agenda items (including New economic team’s policy direction requirements to establish intermediate financial holding companies) by (7/30/14) year -end Source: FTC, MoSF, KDB Daewoo Securities Research

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

Auto (Overweight/Maintain)

Decline in working days hits production

¢ Weak August production for HMC and due to fewer working days in Korea ¢ Korean plants likely to show sluggishness through September News Comment ¢ HMC broadly keeping pace with 3Q14 projections; So far, so good for Kia September 2, 2014

August global production: HMC -5.9% YoY and Kia -3.0% YoY Daewoo Securities CCo.,o., Ltd. For August, Hyundai Motor (HMC) and Kia Motors (Kia) recorded respective global production

[Auto] of 357,698 units (-5.9% YoY, -6.1% MoM) and 217,438 units (-3.0% YoY, -17.2% MoM). Production was hurt by MoM and YoY declines in working days at Korean plants caused by Michael Yun +822-768-4169 summer holidays and partial strikes. For the month, Korean plants were operational for 15 [email protected] days, vs. 19 days In August 2013 and 22 days in July 2014. Nevertheless, HMC and Kia both recorded solid domestic daily sales rates (DSR): 3,209 units (+27.9% YoY, +18.4% MoM) for Young-ho Park +822-768-3033 the former and 2,400 units (+16.9% YoY, +24.8% MoM) for the latter. We expect Korean [email protected] plants to continue to display weak shipments in September, as only 18 working days are th th scheduled for the month. (Chuseok holidays: September 6 -11 ). Based on July-August

shipments, HMC is broadly keeping pace with our 3Q14 estimate of 1.14mn units, with

overseas shipments running slightly behind. For Kia, July-August global shipments are ahead of our estimate by 4.8%, with exports outpacing our projection by nearly 20%.

HMC: Weak momentum continues: HMC’s August domestic, export, and overseas production posted growth of 1.0%, -25.2%, and -0.6% YoY, respectively. In the domestic market, the new Genesis continued to see strong sales momentum (YTD sales of 25,543 units; +206% YoY) and is likely to surpass its annual sales target of 33,000 units. However, the new Sonata has lost steam. Luckily for HMC, the Grandeur and Santa Fe are showing solid sales, offsetting some of the weakness from aging models. Meanwhile, HMC’s production in the US and China declined by 8.1% and 0.1% YoY, respectively.

Kia: So far, so good: Kia’s August domestic, export, and overseas production posted growth of -7.6%, -10.7%, and 5.2% YoY, respectively. Kia’s sluggish August performance was somewhat expected; indeed, we saw a huge spike in Korean shipments in July in preparation for sluggishness in the subsequent month. Despite absolute sales falling by 7.6% YoY, Kia’s domestic DSR increased 24.8% YoY thanks to new car momentum from the Carnival. The new Carnival sold 4,844 units domestically, down from last month’s 8,736 figure, as exports to the US started in August. Kia’s strong overseas production growth was led by China (+16.6% YoY) thanks to expansion effects.

Table 111.1. JulyJulyJuly-July ---AugustAugust production andandand 333Q143Q14 estimates (units, %) JulyJulyJuly-July ---AugustAugust production (A) 333Q143Q14 forecastforecastssss (B)(B)(B) (A)/(B)*100 HMC Domestic 107,783 160,628 67.1 Exports 161,505 245,338 65.8 Korea total 269,288 405,966 66.3 Overseas total 469,243 730,560 64.2 Global total 738,531 1,136,526 65.0 Kia Domestic 77,977 121,030 64.4 Exports 196,853 230,150 85.5 Korea total 274,830 351,180 78.3 Overseas total 204,794 321,080 63.8 Global total 479,624 672,260 71.3 Source: Company data, KDB Daewoo Securities Research

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

Key Universe Valuations September 2, 2014

※All data as of close September 1, 2014, unless otherwise noted.

14F Earnings growth Mkt Cap Price P/E (x) P/B (x) ROE (%) Ticker Company Div Yield OP EPS (Wbn) (W) (%) 14F 15F 14F 15F 14F 15F 14F 15F 14F 15F 005930 Samsung Electronics 175,875 1,194,000 1.3 -24.7 -1.2 -18.2 0.0 8.3 8.3 1.2 1.0 15.8 13.9 005380 Hyundai Motor 49,672 225,500 0.9 0.2 4.6 -1.3 4.1 7.6 7.3 1.1 0.9 15.2 13.9 000660 SK Hynix 31,832 44,050 32.6 1.1 9.9 4.4 9.8 9.4 1.9 1.6 21.9 18.8 005490 POSCO 28,946 332,000 2.4 21.2 32.4 25.6 71.4 16.7 9.8 0.7 0.6 4.1 6.7 012330 27,743 285,000 0.7 6.3 12.4 11.1 7.0 7.3 6.8 1.2 1.0 17.4 16.0 015760 KEPCO 26,930 41,950 2.6 296.4 18.7 3984.2 46.1 11.0 7.5 0.5 0.5 4.8 6.6 035420 NAVER 25,151 763,000 0.1 74.5 21.0 -62.6 47.0 44.9 30.5 9.5 7.3 32.2 34.2 055550 24,469 51,600 - - - - 0.0 0.0 000270 Kia Motors 24,362 60,100 1.2 -4.6 9.0 -3.6 3.7 6.6 6.4 1.0 0.9 16.9 15.2 017670 SK Telecom 22,770 282,000 3.3 2.8 1.7 17.4 1.4 11.8 11.7 1.4 1.3 14.0 13.2 032830 Samsung Life 21,500 107,500 - - - - 0.0 0.0 051910 LG Chem 17,396 262,500 1.5 -9.5 36.3 -6.5 41.3 16.4 11.6 1.6 1.4 10.0 13.0 105560 KB Financial Group 16,285 42,150 - - - - 0.0 0.0 000810 Samsung F&M 13,147 277,500 - - - - 0.0 0.0 033780 KT&G 13,139 95,700 3.4 8.2 2.9 37.1 8.0 16.8 15.5 2.4 2.2 14.9 15.5 034220 LG Display 12,398 34,650 -8.4 -28.9 84.3 -30.7 15.8 22.8 1.1 1.1 7.2 4.7 003550 LG Corp. 12,390 71,800 1.4 5.6 18.0 11.4 18.5 11.9 10.1 1.0 0.9 8.6 9.4 066570 LG Electronics 12,339 75,400 0.3 62.9 21.6 478.8 46.3 13.3 9.1 1.1 1.0 8.5 11.4 086790 12,234 42,200 - - - - 0.0 0.0 000830 Samsung C&T 11,638 74,500 0.7 40.6 30.7 110.4 27.8 23.5 18.4 1.0 1.0 4.6 5.6 086280 11,288 301,000 0.5 7.0 10.5 37.3 -9.2 17.1 18.8 3.9 3.3 25.3 18.9 009540 10,830 142,500 1.4 - - - - - 13.3 0.6 0.6 - 4.8 023530 Lotte Shopping 10,770 342,000 0.4 0.3 8.3 -1.3 15.3 13.8 12.0 0.6 0.6 4.7 5.2 034730 SK C&C 10,625 212,500 0.6 16.9 9.9 142.2 15.8 23.2 20.0 3.3 2.9 17.8 17.6 006400 Samsung SDI 10,555 153,500 1.0 - 6081.5 -30.9 121.4 80.2 36.2 1.4 1.3 1.8 3.7 030200 KT 9,100 34,850 -95.3 5080.4 - - - 7.5 0.8 0.7 - 10.7 096770 SK Innovation 8,692 94,000 3.4 -50.1 140.0 -45.5 204.8 22.1 7.3 0.6 0.5 2.5 7.5 004020 8,613 73,900 0.7 72.4 7.8 -16.6 7.6 10.9 10.2 0.6 0.6 5.8 5.9 010130 Korea Zinc 7,888 418,000 1.2 12.2 19.5 15.6 23.2 15.2 12.4 1.7 1.5 11.8 13.0 003600 SK Holdings 7,655 163,000 1.5 6.3 29.8 278.9 34.0 7.2 5.4 0.6 0.5 8.9 10.9 035250 7,638 35,700 2.7 35.2 7.8 33.3 13.0 19.3 17.1 2.6 2.4 15.0 15.5 002380 KCC 7,154 680,000 1.2 40.7 7.9 3.2 10.2 28.0 25.4 1.4 1.3 5.0 5.4 000720 Hyundai E&C 6,971 62,600 0.8 34.7 16.3 11.7 31.2 12.4 9.5 1.3 1.2 11.0 13.0 139480 Emart 6,704 240,500 0.6 -5.2 12.4 -6.1 18.1 15.3 12.9 0.9 0.9 6.4 7.0 010140 Samsung Heavy Industries 6,453 27,950 1.8 -63.8 138.9 -55.1 117.9 22.8 10.4 1.0 0.9 4.8 9.8 161390 6,392 51,600 0.9 2.4 9.5 1.1 14.9 8.6 7.5 1.4 1.2 17.7 17.4 021240 Coway 6,386 82,800 2.2 11.1 14.8 9.0 16.5 23.9 20.5 5.4 4.7 26.5 26.8 088350 Hanwha Life 5,923 6,820 - - - - 0.0 0.0 011210 Hyundai Wia 5,661 220,000 0.2 9.2 16.7 11.6 13.9 12.1 10.7 2.1 1.8 18.8 18.0 011170 Lotte Chemical 5,655 165,000 0.6 -17.1 102.8 -4.0 124.8 20.5 9.1 0.9 0.8 4.3 9.2 001800 Orion 5,234 876,000 0.3 4.1 5.8 4.3 15.9 34.4 29.7 4.2 3.7 12.9 13.5 036460 Korea Gas 5,197 56,300 1.8 -15.1 17.9 - -8.6 13.5 14.8 0.6 0.5 4.2 3.7 010950 S-Oil 5,134 45,600 2.1 -42.5 263.3 -8.1 124.2 20.0 8.9 1.0 0.9 5.0 10.6 032640 LG Uplus 4,934 11,300 1.5 -0.7 4.2 -7.4 10.1 19.1 17.3 1.2 1.1 6.3 6.7 097950 CJ CheilJedang 4,925 375,500 0.5 39.9 10.7 64.0 39.5 28.3 20.3 1.7 1.6 6.5 8.5 008770 4,710 120,000 0.3 74.2 72.3 841.7 76.7 47.2 26.7 6.2 5.1 14.0 21.0 042660 DSME 4,584 23,950 1.3 -9.8 40.7 -26.7 58.5 23.2 14.7 0.9 0.9 3.9 6.0 005830 Dongbu Insurance 4,354 61,500 - - - - 0.0 0.0 047050 Daewoo International 4,128 36,250 2.3 139.3 20.5 144.3 24.4 12.2 9.8 1.6 1.5 14.3 15.7 009150 Samsung Electro-Mechanics 4,071 54,500 0.4 -80.0 171.7 -87.1 298.7 99.5 25.0 1.0 1.0 1.0 4.1 Source: KDB Daewoo Securities Research

Market Data September 2, 2014

※All data as of close September 2, 2014, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 460.89 -0.29 -0.06 4.15 USD/KRW 1,014.30 1,014.90 1,026.20 1,109.60 KOSPI 2,051.58 -16.28 -0.79 4.29 JPY100/KRW 972.25 974.60 998.59 1,127.93 KOSDAQ 568.74 1.79 0.32 14.60 EUR/KRW 1,331.88 1,332.97 1,373.98 1,465.12 Dow Jones* 17098.45 18.88 0.11 4.00 3Y Treasury 2.51 2.52 2.54 2.92 S&P 500* 2003.37 6.63 0.33 9.36 3Y Corporate 2.88 2.89 2.94 3.29 NASDAQ* 4580.27 22.58 0.50 10.55 DDR2 1Gb* 1.56 1.57 1.69 1.30 Philadelphia Semicon* 645.25 4.76 0.74 22.26 NAND 16Gb* 2.40 2.40 2.39 3.06 FTSE 100* 6,825.31 5.56 0.08 1.60 Oil (Dubai)* 101.37 101.05 104.37 112.39 Nikkei 225 15,668.60 192.00 1.24 -1.51 Gold* 1,286.50 1,293.60 1,395.80 Hang Seng* 24,752.09 10.03 0.04 6.05 Customer deposits (Wbn)* 16,075 14,953 16,153 17,505 Taiwan (Weighted) 9,399.72 -113.34 -1.19 9.14 Equity type BC (Wbn)(Aug. 29) 77,130 77,305 78,398 90,976 Note: * as of September 1, 2014 Source: KSDA, Wisefn, 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 Hyundai Motor 32.04 Samsung Electronics 46.79 KODEX INVERSE 85.02 KODEX LEVERAGE 209.42 Samsung Engineering 29.70 14.25 Amore Pacific 21.02 Hyundai Motor 59.83 KB Financial Group 21.62 Amore Pacific 13.10 Samsung Life Insurance 16.48 Samsung Electronics 52.81 Hyundai Mobis 17.30 LG Household & Health Care 10.57 Lotte Shopping 8.21 Samsung Engineering 25.73 Samsung Corp. 11.41 Hynix 9.42 SK C&C 6.21 Hyundai Mobis 19.79 TIGER200 10.10 LG Chem 7.53 Hyundai Department Store 6.02 Hynix 18.79 POSCO 9.00 Kolao Holdings 5.66 Hotel Shilla 5.97 LG Chem 16.80 SK Energy 8.44 GKL 5.57 LG Household & Health Care 5.89 KODEX 200 11.78 Shinhan Financial Group 7.31 SK C&C 3.90 KT&G 5.81 Hyundai Steel 11.17 Samsung Heavy Ind. 7.02 Hyundai Department Store 3.56 COSMAX 5.76 TIGER200 10.90 Source: KSDA, Wisefn

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 Medy-tox 5.36 Paradise 2.14 SM 4.01 Medy-tox 3.52 Daum Communications 5.32 SM 1.47 Daum Communications 2.79 Paradise 3.28 CJ E&M 2.63 Duk San Hi Metal 1.34 Binex 1.41 CJ E&M 2.91 KEBT 2.32 Semiconductor 1.22 Romanson 1.35 China Great Star 2.22 ATTO 2.08 Alton Sports 1.02 Bio Space 1.15 GS Home Shopping 1.81 Easy Bio System 1.74 Bio Space 0.97 LiHOM-CUCHEN 1.02 JEIL TECHNOS 1.79 Tovis 1.73 BLUECOM 0.55 YG Entertainment 0.98 Gamevil 1.15 Interpark INT 1.68 Danal 0.47 LMS Co. 0.93 LION CHEMTECH 1.02 LiHOM-CUCHEN 1.66 YG Entertainment 0.45 Dongsuh 0.91 Leneco 0.88 Gamevil 1.42 Bioland 0.39 HANS BIOMED 0.89 Woory Industrial 0.87 Source: KSDA, Wisefn

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 1,194,000 -32,000 175,875 Celltrion 41,050 -50 4,250 Hyundai Motor 225,500 -6,500 49,672 Paradise 38,200 -1,050 3,474 Hynix 44,050 -450 31,832 Daum Communications 166,800 3,800 2,262 POSCO 332,000 -2,500 28,946 CJ O Shopping 353,200 -1,800 2,192 Hyundai Mobis 285,000 -8,500 27,743 Dongsuh 20,300 300 2,024 KEPCO 41,950 -200 26,930 GS Home Shopping 279,500 -5,200 1,834 NHN 763,000 -2,000 25,151 CJ E&M 45,900 -1,000 1,778 Shinhan Financial Group 51,600 -200 24,469 Seoul Semiconductor 29,200 -350 1,703 Kia Motors 60,100 -500 24,362 Com2us 132,700 2,700 1,339 SK Telecom 282,000 2,500 22,770 Medy-tox 214,900 11,900 1,216 Source: Korea Exchange