August 2, 2013

Korea

Company News & Analysis Major Indices Close Chg Chg (%) CJ CheilJedang (Buy/TP: W350,000) KOSPI 1,923.38 2.64 0.14 Facing strong headwinds; Look for a possible recovery in 2014 KOSPI 200 249.33 0.44 0.18 KOSDAQ 551.76 2.24 0.41 CJ Korea Express (Buy/TP: W130,000) Ready for liftoff Turnover ('000 shares, Wbn) Volume Value SK Broadband (Trading Buy/TP: W6,000) KOSPI 294,265 3,971 IPTV, the growth driver KOSPI 200 97,120 3,218 KOSDAQ 330,024 2,067

Hana Tour (Buy/TP: W90,000) Lower TP Market Cap (Wbn) Market leadership firmly intact Value KOSPI 1,120,302 KOSDAQ 127,371 Sector News & Analysis KOSPI Turnover (Wbn) Auto (Overweight) Buy Sell Net July auto sales Foreign 1,041 985 56 Institutional 940 944 -4 Retail 1,966 2,016 -50

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 88 72 16 Institutional 79 94 -15 Retail 1,899 1,895 4

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 537 621 -83 KOSDAQ 17 17 -1

Advances & Declines Advances Declines Unchanged KOSPI 463 322 92 KOSDAQ 521 386 77

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Samsung Electronics 1,286,000 6,000 289 KODEX LEVERAGE 11,145 95 284 Hynix 27,450 50 188 STX Shipbuilding 6,390 130 128 Samsung Engineering 84,400 3,400 121

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Celltrion 57,600 2,000 413 KG ETS 5,350 -50 70 GemVax 22,750 -1,400 60 Woory Industrial 11,800 1,500 49 Danal 12,000 650 46 Note: As of August 2, 2013

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.

CJ CheilJedang (097950 KS) Facing strong headwinds; Look for a possible recovery in 2014

Food & Beverage 2Q review: Parent earnings in line with expectations Under consolidated K-IFRS (including CJ Korea Express), CJ CheilJedang (CJCJ) reported Results Comment a 12.8% YoY rise in revenue and a 49.2% decline in operating profit for 2Q. At the parent August 2, 2013 level (processed foods, foodstuff, biotech, animal feed and pharma), revenue inched 2.4% YoY higher, but operating profit shrank 34.9% YoY, broadly in line with expectations. The processed foods unit saw operating profit jump 48.7% YoY thanks to (Maintain) Buy stock keeping unit (SKU) cuts and reduced marketing spend. On the other hand, biotech operating profit slumped 79.7% YoY, hurt by weaker lysine prices. The firm’s biotech Target Price (12M, W) 350,000 products are lysine (63% of biotech revenue), nucleic acids (11%), and other items (26%; MSG, threonine, tryptophan, etc.). Of note, the four major amino acids for feed are Share Price (08/01/13, W) 285,000 lysine, methionine, threonine, and tryptophan. In 2Q, lysine prices plunged to US$1,540/tonne (US$1,430/tonne in China, Expected Return 23% US$1,670/tonne in ex-China markets), down 28.4% from 2Q12 (US$2,150/tonne) and 21.4% from 1Q13 (US$1,960/tonne). We note the decline was steeper in China, and as a OP (13F, Wbn) 481 result, we believe the firm’s lysine operating profit in the country (Liaocheng and Consensus OP (13F, Wbn) 593 Shenyang plants) has fallen to break-even levels.

EPS Growth (13F, %) -26.1 A possible comeback in 2014 Market EPS Growth (13F, %) 17.6 In 2H, we expect parent-based operating profit to decline further by 8.1% YoY. P/E (13F, x) 21.8 Foodstuff and processed foods operating profit should grow, aided by falling input costs Market P/E (13F, x) 9.5 and restructuring efforts, but weaker lysine prices (US$1,590/tonne in 2H13, vs. KOSPI 1,920.74 US$1,935/tonne in 2H12) should pull down biotech operating profit by 54.5% YoY. Market Cap (Wbn) 3,733 Looking further ahead to 2014, we expect operating profit to recover by 13.7% YoY. We Shares Outstanding (mn) 14 see processed foods and foodstuffs earnings accelerating on the back of more favorable Free Float (%) 59.2 conditions (restructuring, raw materials, and F/X). Biotech operating profit should also Foreign Ownership (%) 15.2 Beta (12M) 0.50 resume modest growth, as the decline in lysine prices comes to an end and sales volume 52-Week Low (W) 244,500 increases. CJCJ increased its Chinese capacity by 100,000 tonnes in 2012 and is currently 52-Week High (W) 390,000 in the process of also raising its US capacity by 100,000 tonnes (to be completed in early 2014). We also expect the firm’s methionine plant in Malaysia (to be completed in 2014) (%) 1M 6M 12M to contribute to sales in 2014. Absolute 11.8 -21.8 1.4 Relative 8.3 -19.9 -0.8 Maintain Buy and TP of W350,000

Share price We maintain our Buy rating and target price of W350,000. We believe that the current 150 KOSPI operating conditions for CJCJ are among the worst in history. However, we expect them 130 to improve going forward, as Chinese lysine prices appear to have reached a trough (at 110 around US$1,300/tonne as of July). Indeed, leading indicators for Chinese lysine prices— 90 China’s pork prices and food price inflation—are turning around. Even if lysine prices

70 remain still, we expect falling raw material (grain) prices, stabilizing F/X, and vigorous 7/12 11/12 3/13 7/13 restructuring to drive a slow but steady pickup in share price.

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F F&B/Tobacco Revenue (Wbn) 5,778 6,538 9,878 11,064 12,253 13,206 OP (Wbn) 453 460 616 481 570 667 Woon-mok Baek OP margin (%) 7.8 7.0 6.2 4.4 4.7 5.1 +822-768-4158 [email protected] NP (Wbn) 658 302 255 189 256 334 EPS (W) 47,681 21,158 17,692 13,076 17,730 23,176

ROE (%) 29.3 11.2 9.0 6.1 7.5 8.9

P/E (x) 4.6 13.7 20.1 21.8 16.1 12.3

P/B (x) 1.2 2.8 3.5 2.4 2.0 1.7 Notes: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, KDB Daewoo Securities Research estimates

PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS BEGINNING ON PAGE 5.

CJ Korea Express (000120 KS) Ready for liftoff

Logistics 2Q review: Parcel delivery and forwarding drag down earnings CJ Korea Express’ (CJ Korex) 2Q operating profit came in at W14.2bn, missing our Results Comment estimate (W18.2bn) and the market consensus (W28bn). The parcel delivery unit was hurt by a combination of lower ASP (-12.8% YoY) and weaker volume (-3.3% QoQ). The August 2, 2013 unit also incurred W11bn in one-off expenses from post-merger operational disruptions

and labor strikes, as well as W4bn in promotional expenses targeted at reviving traffic. The stevedoring segment saw revenue plunge 37.8% YoY due to a 29.2% YoY decline in (Maintain) Buy container volume. The firm sustained another operating loss (W7bn) from its CJ Korea Express Busan Container Terminal (CJ KBCT). Forwarding revenue and gross profit Target Price (12M, W) 130,000 slumped 18.4% YoY and 53% YoY, respectively, as the termiㅈnation of CJ GLS’ contract with Samsung Group ate into profits. On a positive note, the contract logistics unit Share Price (08/01/13, W) 103,500 turned in a 9.6% YoY rise in revenue and 16.2% YoY growth in gross profit, thanks to shipments oriented towards large customers. The company posted a 2Q net loss of Expected Return 26% W2bn, in large part due to one-off interest expenses related to the refinancing of CJ GLS’ debt (W3.3bn out of total interest expenses of W16bn).

OP (13F, Wbn) 110 Management offers positive news Consensus OP (13F, Wbn) 112 Amid the tepid earnings results, the company delivered some positive news. First, management said that it planned to hike parcel delivery prices in 2H, at least for lower- EPS Growth (13F, %) -63.3 yielding cargo, which raised hopes that prices could normalize down the line. We believe Market EPS Growth (13F, %) 17.6 the move was triggered by: 1) the need to improve earnings, 2) price hikes by P/E (13F, x) 77.6 competitors, and 3) signs of a volume pickup since July. Market P/E (13F, x) 9.5 KOSPI 1,920.74 Another positive message was the firm’s plan to possibly merge CJ KBCT with another container terminal operator. Although further discussions are necessary, and the deal Market Cap (Wbn) 2,361 would have to be approved by regulators, the merger, if successful, would lead to better Shares Outstanding (mn) 23 operating efficiency and thus cost savings. We believe CJ Korex will continue its efforts Free Float (%) 36.1 to reduce the terminal’s losses by further lowering rents and actively attracting cargo Foreign Ownership (%) 2.8 owners. Beta (12M) 0.65 52-Week Low (W) 83,300 Maintain Buy and TP of W130,000: Ready for liftoff 52-Week High (W) 126,500 We slightly lowered our 2013 earnings estimates in light of the sluggish 2Q results. (%) 1M 6M 12M Regardless, we maintain our Buy rating and target price of W130,000, as we believe: 1) Absolute 5.4 -16.2 21.8 the logistics industry will structurally benefit from capacity constraints and third-party Relative 1.9 -14.3 19.6 logistics (3PL) market growth, and 2) parcel delivery prices could be raised for the first time in two decades. Looking further into 2H14, we expect the completion of the Seoul Share price metropolitan terminal will enable the company to offer more differentiated services 170 KOSPI (same-day delivery), which should prove supportive to price increases and market share 150 gains. The stock currently appears stretched, trading at a 2013F P/E of 77.6x. But if 130 earnings normalize and the long-term outlook continues to remain bullish, we consider 110 the stock’s current 2014F P/E of 17.7x undemanding. We believe earnings weakness is 90 largely priced in, and expect the stock to resume its outperformance in 2H. 7/12 11/12 3/13 7/13

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Transportation Revenue (Wbn) 2,464 2,588 2,773 3,935 4,617 5,163 OP (Wbn) 174 125 129 110 246 342 Jay JH Ryu OP margin (%) 7.1 4.8 4.7 2.8 5.3 6.6 +822-768-4175 [email protected] NP (Wbn) 98 85 83 30 134 203 EPS (W) 4,300 3,703 3,630 1,334 5,864 8,907

ROE (%) 4.9 3.9 3.7 1.3 5.7 8.1

P/E (x) 21.9 20.3 27.7 77.6 17.7 11.6

P/B (x) 1.1 0.8 1.1 1.3 1.2 1.1 Notes: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, KDB Daewoo Securities Research estimates

PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS BEGINNING ON PAGE 7.

SK Broadband (033630 KQ) IPTV, the growth driver

Telecom Service What’s new: 2Q IPTV revenue better than expected, but expenses also increased SK Broadband’s 2Q results underperformed the consensus overall. Top line at the IPTV Results Comment unit grew faster than expected, but other segments, such as residential voice and August 2, 2013 corporate services, were weaker than projected. Marketing expenses, including sales commissions and media ads, increased, as did content spending, including for Btv Mobile’s (a mobile IPTV service) exclusive broadcasting rights to several Major League (Maintain) Trading Buy Baseball games. SK Broadband’s strategic focus on IPTV is starting to show in its earnings figures, with Target Price (12M, W) 6,000 revenue from broadband internet/IPTV bundles on the rise. The downside is that IPTV- related marketing and content expenses are growing at the same time. As the firm shifts Share Price (08/01/13, W) 5,250 its business portfolio away from the traditional fixed-line segment, it is likely to incur high expenses for some time. Expected Return 14% Catalyst: Keep an eye on IPTV net subscriber additions and margins in 2H

OP (13F, Wbn) 87 SK Broadband’s IPTV net subscriber addition figure is steadily growing, which is Consensus OP (13F, Wbn) 93 especially encouraging given the increasing competition in the pay-TV market. The company added 58,000 net subscribers in June and likely added over 60,000 in July. EPS Growth (13F, %) 81.2 Management’s guidance by year-end is over 2mn in total IPTV subscribers. Given the Market EPS Growth (13F, %) 17.6 current trends, we think the firm will handily achieve its annual guidance. P/E (13F, x) 38.1 Market P/E (13F, x) 9.5 In 3Q, we expect operating profit to grow QoQ. The delayed negotiations on home KOSDAQ 549.52 shopping transmission commissions should be concluded in 3Q, and the expected Market Cap (Wbn) 1,554 incremental revenue will likely be recognized in the quarter. The firm’s expanding IPTV Shares Outstanding (mn) 296 subscriber base should continue to push up variable operating expenses in 2H. As such, Free Float (%) 49.4 upside to margins could be limited. Foreign Ownership (%) 4.5 Valuation: Maintain Trading Buy and TP of W6,000 Beta (12M) -0.02 52-Week Low (W) 2,950 We retain our Trading Buy call on SK Broadband with a target price of W6,000. As a 52-Week High (W) 5,660 wired operator, the company’s growth had long been stagnant compared with that of wireless service providers. But, expectations on growth are now reemerging, and the (%) 1M 6M 12M stock is trading at a premium as a result. Absolute 3.4 5.9 75.6 Relative -0.2 7.7 73.4 Worries about overvaluation could arise, given that the IPTV business still accounts for

Share price less than 10% of overall revenue. We believe share appreciation over the medium to 200 KOSDAQ long term will require not only the growth of IPTV alone, but also stronger top-line and 180 bottom-line growth across all business segments. This year, the company’s top priority is 160 140 driving top-line growth (mostly in IPTV), suggesting margin gains will likely be modest. 120 100 80 7/12 11/12 3/13 7/13

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Telecom/Media Service Revenue (Wbn) 2,123 2,295 2,492 2,577 2,691 2,788 OP (Wbn) -23 65 82 87 126 145 Jee-hyun Moon OP margin (%) -1.1 2.8 3.3 3.4 4.7 5.2 +822-768-3615 [email protected] NP (Wbn) -120 -14 23 41 85 109 EPS (W) -405 -48 76 138 287 367

ROE (%) -10.2 -1.3 2.0 3.6 7.2 8.5

P/E (x) - - 61.4 38.1 18.3 14.3

P/B (x) 1.7 1.1 1.5 1.6 1.5 1.4 Notes: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, KDB Daewoo Securities Research estimates

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Hana Tour (039130 KS) Market leadership firmly intact

Hotel/Leisure 2Q13 review: Consolidated OP of W6.4bn (+1.3% YoY) Under non-consolidated K-IFRS, Hana Tour reported 2Q preliminary revenue of W65.5bn Results Comment (+13.5% YoY) and operating profit of W4.2bn (-13.3% YoY). Revenue beat both our August 2, 2013 estimate (by 7.9%) and the market consensus, but bottom line was disappointing, with operating profit falling 13.9% short of our projection and OP margin (6.4%) also coming in below the consensus (9.4%). We attribute the subdued margin to: 1) weaker ASP and (Maintain) Buy margins of China-bound products, affected by the avian flu outbreak, 2) higher local ground costs due to won depreciation, and 3) a one-off rise in promotional spending Target Price (12M, W) 90,000 following the launch of a new frequent independent travel (FIT) brand. Since Hana Tour has a number of affiliates directly operating overseas, we believe it is Share Price (08/01/13, W) 75,000 more appropriate to look at the firm’s earnings on a consolidated basis to gauge its overall operating performance. In consolidated terms, revenue and operating profit Expected Return 20% came in at W79.2bn (+12.6% YoY) and W6.4bn (+1.3% YoY), respectively, beating the consensus by 4.8% and 11.9%. Therefore, considering that the overall business OP (13F, Wbn) 42 environment was sluggish in 2Q, we believe the earnings figures were relatively decent. Consensus OP (13F, Wbn) 42 3Q OP to hit record-high W15bn (+29.8% YoY) EPS Growth (13F, %) 17.8 We expect Hana Tour to post record-breaking earnings in 3Q, driven by peak seasonal Market EPS Growth (13F, %) 17.6 demand and the positive impact of the Chuseok holidays (which fall in September). P/E (13F, x) 24.7 Because the firm books earnings based on arrivals, part of last year’s 3Q peak season Market P/E (13F, x) 9.5 demand was reflected a quarter later (4Q12). As such, the resulting low base effect KOSPI 1,920.74 should provide an additional boost to growth in 3Q. Bookings for August are growing at Market Cap (Wbn) 871 10.1% YoY despite a relatively high base of comparison, and bookings for September are Shares Outstanding (mn) 12 growing sharply at 56.7% YoY, buoyed by the Chuseok holiday momentum. October Free Float (%) 75.6 bookings are also showing strong growth (51.9% YoY), thanks to an extended holiday Foreign Ownership (%) 19.0 period (between the National Foundation Day and Hangul Day). With the outbound Beta (12M) 0.13 travel market continuing to grow at an impressive rate, we believe the abundance of 52-Week Low (W) 42,100 holidays in 2H will further accelerate earnings growth. 52-Week High (W) 81,500 Trim TP to W90,000 (from W91,000) (%) 1M 6M 12M Absolute 4.2 5.8 63.6 We shifted our valuation base year to 2014 from 2013 and changed our valuation Relative 0.7 7.7 61.4 methodology by applying a 15% discount to the stock’s 2012 P/E (previously we used the 2011-2012 average multiple). We revised up our consolidated EPS estimate for Share price 2014F to W4,470 (from W3,812 for 2013F), but lowered our target multiple to 20.1x 200 KOSPI 180 from 22.6x, as we believe current prices already reflect the positive momentum from the 160 mid-term industry consolidation brought on by the fast growth of LCCs and the 140 120 introduction of zero-commission schemes. Accordingly, we trim our target price to 100 W90,000 from W91,000, but leave our Buy rating unchanged, as our revised target price 80 still implies a 20% upside from current levels. 7/12 11/12 3/13 7/13

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Hotel & Leisure Revenue (Wbn) 218 226 259 307 357 388 OP (Wbn) 27 22 35 42 52 63 Regina Hahm OP margin (%) 12.5 9.6 13.4 13.6 14.6 16.3 +822-768-4172 [email protected] NP (Wbn) 22 20 30 35 42 51 EPS (W) 1,901 1,680 2,579 3,039 3,621 4,376

ROE (%) 22.2 17.8 22.7 22.2 23.7 25.1

P/E (x) 22.9 20.4 23.7 24.7 20.7 17.1

P/B (x) 4.2 3.0 4.6 5.2 4.7 4.1 Note: All figures are based on non-consolidated K-IFRS Source: Company data, KDB Daewoo Securities Research estimates

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Auto July auto sales

Overweight (Maintain) HMC’s & Kia’s global production up 9.4% YoY and 1.8% YoY July global production for Hyundai Motor (HMC) and Kia Motors (Kia) grew 9.4% YoY Sector Update and 1.8% YoY, respectively. Strong overseas growth primarily drove the increase, with August 2, 2013 HMC’s overseas production increasing 16.0% YoY and Kia’s increasing 7.2% YoY. We note that China-based production continued to show very solid growth in July, coming in

at 17.2% YoY for HMC and 16.3% YoY for Kia. We note HMC’s Korean-plant production Daewoo Securities Co., Ltd. finally turned positive YoY in July after five straight months of negative growth, owing to the shift change and the absence of weekend shifts. Meanwhile, HMC’s and Kia’s Auto/Auto parts/Tire global production saw negative MoM growth of 10.7% each due to a fewer number of Michael Yun working days in all of their global factories with the arrival of summer vacations. +822-768-4169 [email protected] Domestic growth ticks up

Young-ho Park July domestic sales for the five major automakers increased 10.1% MoM and 2.9% YoY, +822-768-3033 with SAAR (seasonally adjusted annual rate) coming in at 1.44mn units, a 7.3% [email protected]

improvement from the prior month. HMC’s and Kia’s new cars (Maxcruz, K5, and the Sangmin Lee Sportage) were the main reason for the increase in domestic sales. +822-768-4170 [email protected] Meanwhile, exports for HMC and Kia declined 14.3% MoM and 11.5% MoM due to a reduced number of working days with summer vacation kicking in from the last week of July.

Less impact from labor issues this year than last HMC’s and Kia’s July global production came in slightly below our 3Q13 estimates by 1.2% and 1.9%, respectively, due to seasonal weakness from summer vacations and differences in the number of working days. There were no line stoppages due to labor issues in the month of July this year, and we believe labor talks between management and the union will speed up after the two parties return from summer vacations, given that both the Chuseok holidays and the new labor union election are in September. Thus, unlike last year, when labor issues continued throughout July and August, we believe they will be less of an issue this year.

Table 1. HMC’s & Kia’s July production vs. KDB Daewoo’s 3Q estimates (units, %) July production (A) 3Q13 estimates (B) (A)/(B) x 100 HMC Domestic 59,302 154,073 38.5 Export 94,058 283,531 33.2 Korean plants 153,360 437,604 35.0 Overseas plants 209,891 692,602 30.3 Global total 363,251 1,130,206 32.1 Kia Domestic 41,500 108,000 38.4 Export 85,250 262,454 32.5 Korean plants 126,750 370,454 34.2 Overseas plants 85,108 303,940 28.0 Global total 211,858 674,394 31.4 Source: Company data, KDB Daewoo Securities Research estimates

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Key Universe Valuations August 2, 2013

※All data as of close Agust 1, 2013, unless otherwise noted.

13F Earnings growth Mkt Cap Price P/E (x) P/B (x) ROE (%) Ticker Company Div Yield OP EPS (Wbn) (W) (%) 13F 14F 13F 14F 13F 14F 13F 14F 13F 14F 005930 Samsung Electronics 188,543 1,280,000 0.6 33.1 14.3 36.1 17.5 6.9 5.9 1.5 1.2 24.0 22.8 005380 Hyundai Motor 50,994 231,500 0.9 4.0 10.3 2.6 5.6 7.5 7.1 1.3 1.1 18.3 16.5 005490 POSCO 28,554 327,500 2.5 -10.5 39.5 -26.6 62.6 15.6 9.6 0.7 0.6 4.6 7.2 012330 Hyundai Mobis 26,185 269,000 0.8 -4.0 18.4 -3.8 12.7 7.7 6.8 1.4 1.2 18.6 17.7 000270 Kia Motors 25,741 63,500 1.1 5.3 6.2 3.3 8.4 6.5 6.0 1.4 1.1 21.3 19.2 032830 Samsung Life 21,500 107,500 2.0 0.0 9.3 4.2 4.3 18.1 17.4 1.1 1.0 6.0 5.8 055550 Shinhan Financial Group 19,561 41,250 0.2 -10.3 14.2 -10.1 13.7 10.4 9.2 0.7 0.7 7.1 7.6 051910 LG Chem 19,086 288,000 1.5 3.9 28.3 6.1 28.4 13.4 10.5 1.8 1.6 14.1 16.0 000660 SK Hynix 19,048 27,400 0.5 - 0.8 - 1.7 6.4 6.3 1.6 1.3 26.7 21.7 017670 SK Telecom 17,926 222,000 4.4 26.0 29.6 66.0 25.6 9.4 7.5 1.7 1.5 15.6 18.0 009540 Hyundai Heavy 16,302 214,500 -31.9 47.9 -8.8 74.6 18.2 10.4 1.1 1.0 5.2 8.5 035420 NHN 14,125 293,500 0.3 22.8 30.3 19.4 31.7 21.7 16.5 4.5 3.7 31.8 34.6 096770 SK Innovation 14,009 151,500 2.0 33.8 14.8 26.9 29.5 9.4 7.3 0.9 0.8 9.4 11.1 105560 KB Financial Group 14,005 36,250 -3.3 11.4 3.8 11.4 8.0 7.2 0.5 0.5 6.9 7.4 066570 LG Electronics 11,766 71,900 0.4 32.1 45.6 670.8 115.3 25.3 11.7 1.2 1.1 4.2 8.8 000810 Samsung F&M 11,725 247,500 2.8 20.2 14.1 19.2 14.4 11.1 9.7 1.2 1.1 11.7 11.9 003550 LG Corp. 11,354 65,800 1.5 11.1 12.4 16.5 8.3 10.6 9.8 1.0 0.9 9.4 9.5 023530 Lotte Shopping 11,085 352,000 0.4 11.7 12.3 12.6 10.3 9.0 8.2 0.9 0.8 7.4 7.6 086790 Hana Financial Group 10,509 36,250 -8.7 10.0 -22.8 12.7 7.6 6.8 0.5 0.5 8.8 7.3 033780 KT&G 10,434 76,000 4.1 -4.5 5.1 1.3 5.6 14.0 13.2 1.9 1.8 14.2 14.0 034220 LG Display 10,090 28,200 1.9 6.0 -21.6 111.5 22.2 20.5 16.7 1.0 1.0 4.7 5.6 030200 KT 9,465 36,250 5.2 0.1 21.1 -5.3 19.6 9.5 7.9 0.9 0.9 8.0 9.2 051900 LG H&H 9,293 595,000 0.6 18.5 17.3 16.9 18.8 29.7 25.0 6.8 5.3 26.4 25.3 010140 Samsung Heavy 9,108 39,450 1.3 11.2 5.6 26.8 8.4 9.0 8.3 1.4 1.2 17.7 16.5 000830 Samsung C&T 8,779 56,200 0.9 -7.1 34.4 -17.3 22.4 24.3 19.8 0.8 0.8 3.2 3.7 010950 S-Oil 8,500 75,500 4.0 32.6 17.5 35.7 23.7 11.1 9.0 1.5 1.4 14.1 16.0 003600 SK Holdings 8,383 178,500 1.4 11.0 21.0 15.0 13.8 7.0 6.2 1.9 1.5 10.3 10.8 006400 Samsung SDI 7,654 168,000 0.9 -42.0 145.4 -63.9 33.6 14.9 11.2 1.1 1.0 7.1 9.2 161390 Hankook Tire 7,507 60,600 1.0 258.3 4.8 262.0 2.5 9.0 8.7 1.9 1.6 23.2 19.4 086280 Hyundai Glovis 7,331 195,500 1.2 5.5 9.4 3.3 12.9 14.3 12.6 3.1 2.6 23.8 21.9 000720 Hyundai E&C 6,615 59,400 1.2 13.5 22.2 1.2 34.4 12.8 9.6 1.4 1.2 10.8 13.2 024110 Industrial Bank of Korea 6,300 11,450 0.3 -26.5 16.3 -19.6 16.1 7.9 6.8 0.5 0.5 6.6 7.3 035250 Kangwon Land 6,087 28,450 2.9 12.3 15.4 18.4 17.8 17.4 14.7 2.2 2.0 14.1 15.4 088350 Hanwha Life 6,062 6,980 3.5 - - 3.5 1.6 9.8 9.6 0.8 0.8 8.6 8.3 139480 Emart 6,021 216,000 0.3 4.1 5.0 3.3 4.5 11.1 10.6 0.9 0.9 8.7 8.4 009150 Samsung Electro-Mechanics 6,020 80,600 1.2 21.0 9.4 18.7 10.7 12.0 10.8 1.5 1.4 12.8 12.7 004020 Hyundai Steel 5,998 70,300 0.7 -14.3 58.1 -41.3 63.7 12.8 7.8 0.6 0.6 4.6 7.2 001800 Orion 5,964 999,000 0.3 -3.1 7.8 -0.2 9.5 39.4 36.0 5.5 4.7 14.3 13.6 032640 LG Uplus 5,938 13,600 2.7 395.6 24.9 - 37.8 16.4 11.9 1.8 1.5 9.2 11.7 011170 Lotte Chemical 5,895 172,000 1.2 18.1 62.0 2.9 54.4 17.0 11.0 0.9 0.9 5.6 8.2 068270 Celltrion 5,585 55,600 36.3 27.9 30.2 29.2 43.1 33.4 11.6 9.3 19.2 20.3 090430 Amorepacific 5,554 950,000 0.7 2.3 11.1 4.5 16.6 23.3 20.0 2.7 2.4 11.5 12.1 010130 Korea Zinc 5,482 290,500 1.7 -13.2 20.7 -10.3 25.4 10.9 8.7 1.3 1.1 12.3 13.8 034730 SK C&C 5,275 105,500 12.2 6.3 30.7 4.8 11.3 10.8 1.9 1.6 19.5 18.0 078930 GS 5,157 55,500 2.5 31.6 9.4 26.0 18.9 8.5 7.1 0.9 0.8 9.5 10.4 034020 Doosan Heavy I&C 4,917 46,450 1.8 3.9 6.6 1028.4 19.4 11.5 9.6 1.5 1.4 9.5 11.2 001300 Cheil Industries 4,599 87,700 0.9 2.6 45.4 21.1 49.3 18.2 12.2 1.8 1.9 8.0 12.7 011210 Hyundai Wia 4,155 161,500 0.3 3.6 14.9 4.3 17.3 9.5 8.1 2.0 1.6 21.3 20.2 010060 OCI 3,995 167,500 2.0 -43.8 381.3 - - - 12.2 1.4 1.3 - 10.6 069960 Hyundai Department Store 3,803 162,500 0.5 4.1 6.7 6.0 10.0 10.1 9.2 1.2 1.1 12.7 12.4 Source: KDB Daewoo Securities Research

Market Data August 2, 2013

※All data as of close August 2, 2013, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 384.82 0.89 0.23 -10.35 USD/KRW 1,121.40 1,119.60 1,136.90 1,127.60 KOSPI 1,923.38 2.64 0.14 -5.30 JPY100/KRW 1,127.21 1,144.38 1,140.89 1,438.08 KOSDAQ 551.76 2.24 0.41 10.00 EUR/KRW 1,481.37 1,488.84 1,485.93 1,379.84 Dow Jones* 15,628.02 128.48 0.83 16.52 3Y Treasury 2.96 2.92 2.94 2.79 S&P 500* 1,706.87 21.14 1.25 16.72 3Y Corporate 3.39 3.35 3.39 3.38 NASDAQ* 3,675.74 49.37 1.36 18.11 DDR2 1Gb* 1.30 1.30 1.43 1.23 Philadelphia Semicon* 486.60 8.82 1.85 21.73 NAND 16Gb* 2.98 2.98 2.98 1.89 FTSE 100* 6,681.98 60.92 0.92 10.86 Oil (Dubai)* 105.04 103.83 99.63 101.03 Nikkei 225 14,466.16 460.39 3.29 35.35 Gold* 1,311.00 1,312.40 1,255.70 1,603.70 Hang Seng* 22,088.79 205.13 0.94 -5.25 Customer deposits (Wbn)* 18,156 17,407 19,892 16,567 Taiwan (Weighted) 8,099.88 43.66 0.54 4.12 Equity type BC (Wbn)(Jul. 31) 92,611 92,715 91,893 99,993 Note: * as of August 1, 2013 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 50.20 LG Electronics 29.22 KODEX LEVERAGE 45.08 Hyundai Motor 34.36 KODEX 200 15.95 Hyundai Mobis 28.76 Samsung Engineering 32.40 KODEX KRW CASH 30.35 Samsung F&M Insurance 13.68 POSCO 14.78 POSCO 28.49 Hynix 22.43 Honam Petrochemical 10.37 KT 13.88 KB Financial Group 22.45 Kia Motors 16.88 SK Energy 9.57 Daelim Industrial 12.63 Hyundai Steel 19.43 Samsung F&M Insurance 9.93 Hynix 9.39 Woori Finance Group 9.67 KT 19.32 LG Uplus 8.49 SK Telecom 9.32 KB Financial Group 9.49 Honam Petrochemical 13.66 NCsoft 7.52 Glovis 8.88 KT&G 8.41 Woori Finance Group 12.82 SK Energy 7.15 Hana Financial Group 8.22 Kumho Petrochemical 5.77 Kumho Petrochemical 11.46 HANKOOK TIRE 6.53 OCI 7.54 Samsung Corp. 4.90 Shinhan Financial Group 7.20 DSME 6.50 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 Celltrion 5.73 Partrion 4.10 Danal 3.88 CJ E&M 4.49 Seoul Semiconductor 4.71 Maeil Dairy Industry 1.22 Partrion 2.77 Sung Kwang Bend 2.94 Daum Communications 2.50 Media Flex 1.05 CTC Bio 1.66 SK Broadband 2.42 Techno Semichem 1.65 Wins Technet 0.98 Chemtronics 1.65 Seoul Semiconductor 2.33 Com2us 1.45 Eugene Technology 0.96 Samcholy 1.41 Gamevil 2.22 SEEGENE 1.25 INICIS 0.93 Kolon Life Science 1.03 Daum Communications 1.87 i-SENS 1.19 Silicon Works 0.84 KH Vatec 0.94 Paradise 1.77 STC 1.05 OSSTEM IMPLANT 0.83 Wemade 0.89 Woory Industrial 1.59 Interpark 1.03 GemVax 0.83 OCI Materials 0.84 TK Corp. 1.57 ACTOZ SOFT 0.97 CTC Bio 0.82 TK CHEMICAL 0.61 ATTO 1.38 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 1,286,000 6,000 189,427 Celltrion 57,600 2,000 5,785 Hyundai Motor 231,500 0 50,994 CJ O Shopping 368,000 2,000 2,283 POSCO 335,000 7,500 29,208 Seoul Semiconductor 37,200 0 2,169 Hyundai Mobis 264,500 -4,500 25,747 Ssangyong E&C 136,800 0 1,999 Kia Motors 62,300 -1,200 25,254 Paradise 21,900 0 1,992 Samsung Life Insurance 106,000 -1,500 21,200 Dongsuh 27,900 -250 1,651 Shinhan Financial Group 40,900 -350 19,395 GS Home Shopping 241,400 -2,200 1,584 LG Chem 288,500 500 19,119 SK Broadband 5,190 -60 1,536 Hynix 27,450 50 19,083 CJ E&M 37,650 -300 1,428 Samsung Electronics (P) 820,000 9,000 18,723 POSCO ICT 9,670 0 1,325 Source: Korea Exchange