April 6, 2018

Korea Morning Focus

Company News & Analysis Major Indices Close Chg Chg (%) Hite Jinro (000080/Trading Buy/TP: W27,000) Lower TP KOSPI 2,437.52 29.46 1.22 Leaning on imported beer and FiLite KOSPI 200 313.04 4.50 1.46 KOSDAQ 868.93 6.42 0.74 (253450/Buy/TP: W110,000) On the right trajectory Turnover ('000 shares, Wbn) Volume Value KOSPI 574,657 7,171 KOSPI 200 93,027 4,516 KOSDAQ 837,102 5,852

Market Cap (Wbn) Value KOSPI 1,622,984 KOSDAQ 280,015

KOSPI Turnover (Wbn) Buy Sell Net Foreign 1,491 1,419 72 Institutional 1,414 1,218 196 Retail 4,238 4,502 -263

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 524 523 1 Institutional 285 271 15 Retail 5,036 5,027 9

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 1,262 1,144 118 KOSDAQ 277 236 40

Advances & Declines Advances Declines Unchanged KOSPI 473 326 89 KOSDAQ 745 417 70

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Electronics 2,437,000 91,000 642 Celltrion 295,000 1,000 529 Hyundai Merchant 5,150 665 367 Marine Pharmicell 17,700 1,200 354 KODEX LEVERAGE 16,300 475 316

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Diostech 22,400 3,850 379 Celltrion 90,800 8,700 248 Celltrion Healthcare 101,200 200 178 HLB 84,400 4,500 129 SillaJen 106,200 -900 127 Note: As of April 05, 2018 Mirae Asset Daewoo Research This document is a summary of a report prepared by Mirae Asset Daewoo 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.

Hite Jinro

(000080 KS) Leaning on imported beer and FiLite

Food & Beverage 1Q18 preview: Likely to turn to profit Earnings Preview For 1Q18, we expect Hite Jinro to report a 1.2% YoY rise in revenue. For soju (54.4% of overall revenue), we believe revenue remained stagnant, affected by cold weather. For April 5, 2018 beer (39.2% of revenue), we believe regular beer sales declined, also due to cold weather, but revenue likely rose slightly thanks to stronger sales of low-malt beer (FiLite) and imported beer (Kronenbourg, etc.). At the operating level, we estimate the company swung to operating profit of W25.1bn. (In 1Q17, the company recorded an (Maintain) Trading Buy operating loss due to W56bn in restructuring charges.) Overcoming shrinking regular beer sales with imported beer and FiLite Target Price (12M, W) ▼ 27,000 Hite Jinro is seeking to overcome the shrinking regular beer market with imported beer and FiLite. In our view, strong sales of imported beer and FiLite will likely keep Share Price (04/05/18, W) 22,300 Hite Jinro’s market share from falling further from 32-33%.

Expected Return 21% In 2017, the imported beer market grew 44.5%, accounting for 16% of the overall market (in terms of sales volume). Sales of Hite Jinro’s imported beers (Kirin, Kronenbourg, Singha, Somersby, XXXX Gold, etc.) increased from W47bn in 2016 to W85bn in 2017 and are forecast to climb to over W100bn in 2018. While the brewery OP (18F, Wbn) 138 business as a whole is losing money, the company is generating 7-8% margin on its Consensus OP (18F, Wbn) 155 imported beer. EPS Growth (18F, %) 370.5 Because imported beers are more expensive than regular beers, growth may be Market EPS Growth (18F, %) 16.0 limited in the restaurant/bar segment, but we see potential for growth in the P/E (18F, x) 26.6 household segment (70-80% of imported beer is consumed at home), given the Market P/E (18F, x) 9.2 increasing number of single-person households and diversifying consumer tastes. KOSPI 2,437.52 Sales of FiLite, Korea’s first low-malt beer (10% malt content) that launched in 1H17, totaled around W80bn (5mn boxes) in 2017. In 2018, we forecast FiLite sales to reach Market Cap (Wbn) 1,564 W110bn (8mn boxes), representing 14.6% of the company’s overall beer sales. Shares Outstanding (mn) 71 Free Float (%) 43.6 We believe FiLite will grow into a major beer category (regular, premium, low-malt, Foreign Ownership (%) 18.5 and third beer), given its price appeal (ex-factory price, including taxes, is W717, 40% Beta (12M) 0.24 cheaper than regular beer) and the recent “small but certain happiness” trend among 52-Week Low 19,900 consumers. In Japan, low-malt beers and third beers (no malt), which are more affordable than regular beers, began to grow in popularity during the mid-1990s. 52-Week High 27,150 Today, low-malt/third beers account for 55% of the Japanese market, while (%) 1M 6M 12M regular/premium beers make up the rest. Absolute 6.2 -15.2 9.6 Current share prices offer trading opportunities Relative 3.5 -16.7 -2.9 From a long-term perspective, Hite Jinro’s brewery business faces a number of

140 Hite Jinro KOSPI headwinds, such as dwindling demand for regular beer, Lotte Chilsung’s capacity 130 ramp-ups, and the growing popularity of craft beer. However, we believe current share 120 prices offer trading opportunities and thus maintain our Trading Buy rating, given 110 that: 1) the soju business is performing well, with market share of over 50%; 2) 100 imported beer and FiLite are helping the company overcome the weakness in regular 90 beers; and 3) the stock is trading at a P/B of only 1.2x. That said, we lower our target 80 price to W27,000 (from W29,000), reflecting our earnings revisions. 3.17 7.17 11.17 3.18

Mirae Asset Daewoo Co., Ltd.

[ F&B/Tobacco] FY (Dec.) 12/15 12/16 12/17 12/18F 12/19F 12/20F Revenue (Wbn) 1,907 1,890 1,890 1,917 1,944 1,974 Woon-mok Baek +822-3774-1679 OP (Wbn) 134 124 87 138 142 145 [email protected] OP margin (%) 7.0 6.6 4.6 7.2 7.3 7.3

Susie Hong NP (Wbn) 53 38 13 60 62 64 +822-3774-1853 EPS (W) 747 538 178 837 870 895 [email protected] ROE (%) 4.0 2.9 1.0 4.9 5.1 5.2

P/E (x) 31.3 39.2 135.4 26.6 25.6 24.9 P/B (x) 1.2 1.1 1.3 1.2 1.2 1.2 Dividend yield (%) 4.3 4.3 3.3 3.6 3.6 3.6 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

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.

April 5, 2018 Hite Jinro

Table 1. 1Q18 preview (Wbn, %) 1Q18F Growth 1Q17 4Q17 Mirae Asset Consensus YoY QoQ Daewoo Revenue 413.4 456.9 418.3 428.2 1.2 -8.4 Operating profit -27.4 23.1 25.1 28.6 TTB 8.8 Pretax profit -27.4 0.8 15.2 18.3 TTB - Net profit -21.2 -10.5 9.9 12.0 TTB TTB OP margin -6.6 5.0 6.0 6.7 - - Net margin -5.1 -2.3 2.4 2.8 - - Source: Company data, Mirae Asset Daewoo Research estimates

Table 2. Quarterly and annual earnings (Wbn, %) 17 18F 17 18F 19F

1Q 2Q 3Q 4Q 1QF 2QF 3QF 4QF Annual Annual Annual Revenue 413 491 528 457 418 502 516 481 1,890 1,917 1,944 Operating profit -27 35 57 23 25 34 49 31 87 138 142 Pretax profit -27 23 43 1 15 24 37 13 40 89 93 Net profit -21 14 31 -11 10 16 25 9 13 60 62 OP margin -6.6 7.1 10.7 5.0 6.0 6.7 9.5 6.4 4.6 7.2 7.3 Net margin -5.1 2.8 5.8 -2.3 2.4 3.1 4.9 1.8 0.7 3.1 3.2 Revenue growth 1.0 -1.8 7.9 -6.9 1.2 2.1 -2.3 5.2 0.0 1.4 1.4 OP growth TTR 26.7 103.9 -44.4 TTB -3.9 -13.7 33.9 -29.6 58.6 2.6 Pretax profit growth TTR 25.4 267.0 -96.0 TTB 5.6 -14.7 - -35.1 125.1 3.9 Net profit growth TTR 37.0 267.0 TTR TTB 13.3 -17.4 TTB -67.0 370.5 3.9 Source: Company data, Mirae Asset Daewoo Research estimates

Table 3. 2018-19 earnings forecast revisions (Wbn, %) Previous Revised % chg. Notes 18F 19F 18F 19F 18F 19F Continued beer market Revenue 1,928 1,963 1,917 1,944 -0.6 -0.9 contraction Operating profit 147 152 138 142 -5.9 -6.6 Pretax profit 97 100 89 93 -7.9 -7.1 Net profit 64 66 60 62 -6.8 -6.1 OP margin 7.6 7.7 7.2 7.3 - - Net margin 3.3 3.4 3.1 3.2 - - Source: Company data, Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research 2

Studio Dragon

(253450 KQ) On the right trajectory

Media 1Q18 preview: Likely to meet expectations Earnings Preview We expect Studio Dragon to deliver a decent 1Q18 report, with consolidated revenue of W89.6bn (+19.0% YoY; all growth figures hereafter are YoY) and operating profit of April 6, 2018 W14.7bn (+5.3%), in line with the current consensus (revenue of W87.1bn and operating profit of W15.1bn). Despite an elevated base (due to last year’s hit drama Goblin and content sales to multiple countries/channels), we believe the company saw positive growth in 1Q18 on the back of strong licensing sales to Netflix. While our earnings expectations have come down, we still think it was a good quarter overall. (Maintain) Buy Programming revenue likely climbed to W38.1bn (+44.5%), helped by a YoY increase in the number of titles aired (from four to seven, based on our estimate). Licensing Target Price(12M, W) 110,000 revenue, which is key to profits, likely grew to W38.8bn (+6.4%). Regarding Netflix sales, we believe the company recognized around 80% of sales for A Korean Odyssey (estimated at W9bn) and around half for Live and Bad Guys in 1Q18. Altogether, this Share Price (04/05/18, W) 91,700 comes to more than W10bn in Netflix sales. However, we believe non-Netflix exports and domestic VOD sales were somewhat sluggish due to temporary factors, including Expected Return 20% sudden cast/storyline changes, diversion away from drama buzz, and the Pyeongchang Olympics.

Bullish earnings outlook for 2H18 OP (18F, Wbn) 58 In terms of earnings, we are quite bullish on 2H18. We forecast revenue and operating Consensus OP (18F, Wbn) 69 profit to expand to W198.4bn (+32.8%) and W33.6bn (+231.7%), respectively, during the latter half of the year. Two highly anticipated dramas are scheduled for 2H18, one EPS Growth (18F, %) 51.9 in 3Q18 (Mr. Sunshine) and the other in 4Q18 (Memories of the Alhambra). We expect Market EPS Growth (18F, %) 16.0 these new dramas to drive selling price gains and channel expansion. P/E (18F, x) 57.5 1) Airing in July, Mr. Sunshine is a big-budget drama costing over W1bn per episode, Market P/E (18F, x) 9.2 more than some of the most expensive dramas previously made (Goblin, Legend of KOSDAQ 868.93 the Blue Sea, and Descendants of the Sun). Given the drama’s budget, material, writer (Kim Eun-sook), and cast (Lee Byung-hun and Kim Tae-ri), we see it as the type of Market Cap (Wbn) 2,571 project that can only be pulled off by a duo like CJ E&M and Studio Dragon. And considering the intensifying competition among platforms, we see strong potential for Shares Outstanding (mn) 28 a sharp rise in pricing. In our view, the drama has what it takes to increase the size of Free Float (%) 23.9 profits in a seller-driven content market. 2) The drama Memories of the Alhambra is Foreign Ownership (%) 0.9 expected to debut in October. Hyun Bin has recently been confirmed as the male lead, Beta (12M) 0.77 and preproduction looks set to begin soon. 52-Week Low 57,800 On the right trajectory; Buy on near-term weakness 52-Week High 98,600 We reiterate our Buy rating on Studio Dragon with a target price of W110,000. Our (%) 1M 6M 12M current estimates model the production of one Netflix original program in 2019 and licensing sales of one tentpole title to Netflix per quarter. We see several catalysts that Absolute 5.0 - - could prompt us to raise our forecasts, including: 1) the production of more original Relative 2.1 - - programs; 2) sharp price gains; and 3) resumption of licensing sales to China. We think all three catalysts could come to pass, given: 1) confirmation of the company’s first 160 Studio Dragon Corporation KOSDAQ Netflix original (set to air in 1H19); 2) the company’s ample production capability (up to 140 40 titles, vs. 30 titles scheduled in 2019); and 3) recent signs from China, which has begun to allow limited sales (rights to remakes). 120 We believe the overall industry environment will remain favorable to production 100 companies in the long term. In addition to Netflix, new and old media firms alike 80 (Amazon, Walt Disney, Time Warner, etc.) are moving into over-the-top (OTT) 60 platforms, while Chinese platform providers are rushing to raise funding (e.g., iQiyi’s 3.17 7.17 11.17 3.18 IPO). As the battle for exclusive broadcasting rights intensifies, Studio Dragon’s client base should become more diversified, lessening its dependence on Netflix. This should be positive to pricing, while also reducing counterparty risks. Mirae Asset Daewoo Co., Ltd.

[Media] FY (Dec.) 12/14 12/15 12/16 12/17 12/18F 12/19F Revenue (Wbn) - - 196 287 363 492 Jeong-yeob Park +822-3774-1652 OP (Wbn) - - 21 33 58 81 [email protected] OP margin (%) - - 10.7 11.5 16.0 16.5 NP (Wbn) - - 13 24 45 63 EPS (W) - - 907 1,050 1,595 2,248 ROE (%) - - 9.5 9.5 11.4 14.2 P/E (x) - - - 61.9 57.5 40.8 P/B (x) - - - 4.9 6.2 5.4

Dividend yield (%) - - - 0.0 0.0 0.0 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.

April 6, 2018 Studio Dragon

Table 1. Target price calculation (Wbn, W, x)

2018F 2019F 12-month forward Note EBITDA 114 149 140 Avg. of Zhejiang Huace Film & TV, Huayi Target EV/EBITDA 24.2 19.6 20.7 Brothers Media, Beijing Enlight, & Ciwen Media Fair EV 2,755 2,917 2,907 Net debt (net cash) -181.6 -181.6 -181.6 Fair market cap 2,937 3,098 3,088 Target price (W) 104,756 110,508 110,155 Source: Mirae Asset Daewoo Research estimates

Table 2. Quarterly and annual earnings (Wbn, %, no.) 1Q17 2Q17 3Q17 4Q17 1Q18F 2Q18F 3Q18F 4Q18F 2017 2018F 2019F Revenue 75 62 77 72 90 75 103 96 287 363 492 Programming 26 24 42 39 38 31 41 36 131 146 187 Licensing 36 26 23 26 39 35 47 46 112 166 209 Other 13 12 12 7 13 10 15 13 44 51 65 Original production contracting 0 0 0 0 0 0 0 0 0 0 30 Costs 59 50 67 64 72 62 80 75 240 288 390 Production costs (excl. originals) 24 25 36 39 39 32 43 39 125 153 199 Commission fees 7 5 5 5 8 7 9 9 22 33 42 Depreciation expenses 9 9 10 11 12 14 14 15 39 55 67 on tangible/intangible assets Other 19 10 16 9 12 10 13 12 54 47 59 Production costs for originals 0 0 0 0 0 0 0 0 0 0 24 SG&A 3 3 4 4 3 4 5 5 14 17 20 EBITDA 23 18 17 15 27 23 32 31 72 114 149 Operating profit 14 9 7 3 15 10 18 15 33 58 81 OP margin 18.5 14.3 8.6 4.8 16.4 12.9 17.7 16.1 11.5 16.0 16.6 Pretax profit 13 9 6 2 15 10 18 15 30 57 81 Net profit 13 3 6 2 11 7 14 12 24 45 63 Net margin 17.8 4.5 7.3 2.8 12.7 9.9 13.7 12.4 8.3 12.3 12.8 YoY Revenue 19.0 20.8 32.5 33.2 46.7 26.6 35.4 Programming 44.5 26.8 -2.4 -6.5 49.5 11.2 28.5 Licensing 6.4 31.3 101.5 78.8 48.3 48.7 25.7 Other 1.9 -15.3 20.5 85.1 35.3 16.3 28.3 EBITDA 20.0 28.7 95.0 112.2 - 57.8 30.8 Operating profit 5.3 8.7 172.9 344.6 56.1 75.2 40.5 Net profit -15.2 164.9 147.8 496.5 83.8 87.5 41.0 Major assumptions No. of titles aired 4.0 4.5 6.5 6.5 7.0 6.0 6.5 6.5 21.5 26.0 30.0 No. of titles licensed to Netflix 0.0 1.0 1.0 1.1 2.0 0.5 1.0 1.0 3.1 4.5 5.5 Source: Mirae Asset Daewoo Research estimates

Table 3. Earnings forecast revisions (Wbn, %, %p) Previous Revised Change 18F 19F 18F 19F 18F 19F Revenue 383 525 363 492 -5.1 -6.3 Operating profit 62 85 58 81 -6.4 -4.7 Net profit 48 66 45 63 -6.5 -4.8 OP margin 16.2 16.3 16.0 16.6 -0.2 0.3 Net margin 12.5 12.6 12.3 12.8 -0.2 0.2 Note: All figures are based on consolidated K-IFRS Source: Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research 2

Mirae Asset Daewoo Research Key Universe Valuations April 6, 2018

※All data as of close April 04, 2018, unless otherwise noted.

18F Earnings growth Mkt Cap Price P/E (x) P/B (x) ROE (%) Ticker Company Div Yield OP EPS (Wbn) (W) (%) 18F 19F 18F 19F 18F 19F 18F 19F 18F 19F 068270 Celltrion, Inc. 36,187 295,000 - - - - 0.0 0.0 005380 Hyundai Motor 33,923 154,000 2.6 7.4 21.1 10.6 20.2 9.9 8.2 0.6 0.6 6.3 7.1 207940 33,215 502,000 1031.1 242.1 - 386.7 770.5 158.3 8.3 7.9 1.1 5.1 005490 POSCO 27,769 318,500 3.2 18.0 2.5 26.0 2.7 7.9 7.7 0.6 0.5 7.7 7.4 051910 LG Chem 27,072 383,500 1.6 1.4 20.9 17.0 21.2 13.2 10.9 1.6 1.4 13.2 14.3 035420 NAVER 25,678 779,000 0.2 21.4 22.1 28.9 21.7 25.8 21.2 3.7 3.2 19.0 19.3 012330 25,553 262,500 1.3 4.3 10.4 43.3 8.7 11.4 10.5 0.8 0.8 7.4 7.6 105560 KB Financial Group 24,292 58,100 18.2 5.0 3.8 5.0 7.0 6.6 0.7 0.6 9.9 9.6 032830 Samsung Life 22,700 113,500 - - - - 0.0 0.0 015760 KEPCO 22,148 34,500 2.9 23.4 42.9 120.3 57.4 7.4 4.7 0.3 0.3 4.2 6.3 055550 21,007 44,300 16.8 4.6 11.5 4.6 6.5 6.2 0.6 0.5 9.5 9.2 034730 SK Holdings 20,440 290,500 1.3 9.6 -0.7 12.3 7.2 9.2 8.6 1.2 1.1 14.5 13.6 051900 LG Household & Health Care 20,023 1,282,000 0.9 7.5 9.9 10.2 10.3 34.0 30.8 6.3 5.4 20.4 19.3 096770 SK Innovation 19,741 213,500 3.7 1.1 0.3 12.9 0.1 8.4 8.4 1.0 0.9 12.5 11.5 090430 AmorePacific 19,467 333,000 0.5 19.9 18.0 29.1 16.1 45.2 38.9 5.0 4.6 11.7 12.3 017670 SK Telecom 18,814 233,000 4.3 0.1 1.7 13.8 -7.2 6.2 6.7 0.8 0.8 15.9 13.2 018260 Samsung SDS 18,571 240,000 1.0 18.2 12.1 19.5 11.0 29.3 26.4 3.0 2.8 10.8 11.0 066570 LG Electronics 17,183 105,000 0.7 48.8 19.8 38.0 20.8 8.0 6.6 1.2 1.0 16.1 16.6 011170 Lotte Chemical 15,321 447,000 2.3 3.8 6.5 14.4 9.6 6.0 5.4 1.1 0.9 20.2 18.6 003550 LG Corp. 14,460 83,800 1.6 0.8 6.8 -21.5 7.1 7.8 7.3 0.8 0.8 11.1 10.8 091990 Celltrion Healthcare 13,917 101,200 64.5 44.1 29.6 56.9 42.9 27.3 11.6 8.1 31.2 34.9 033780 KT&G 13,564 98,800 4.7 -5.3 0.1 -14.9 2.2 13.7 13.4 1.6 1.5 12.3 11.9 010950 S-Oil 13,510 120,000 5.6 18.5 33.6 3.4 29.1 10.9 8.4 1.9 1.7 18.1 21.2 006400 Samsung SDI 13,134 191,000 0.5 319.7 40.6 39.3 14.8 14.2 12.4 1.1 1.0 8.1 8.7 000270 Motors 13,114 32,350 3.1 150.6 21.8 110.1 17.0 6.4 5.5 0.5 0.4 7.3 8.0 000810 Samsung F&M 12,649 267,000 - - - - 0.0 0.0 086790 Hana Financial Group 12,535 41,750 18.3 7.6 12.6 7.9 5.4 5.0 0.5 0.4 9.2 9.1 251270 12,457 146,500 0.2 -11.7 3.9 -5.9 6.3 42.7 40.2 2.7 2.6 6.5 6.5 002790 AmoreG 12,080 146,500 0.3 24.5 12.2 30.3 7.7 49.3 45.7 3.9 3.6 8.5 8.5 035720 Corp. 9,496 124,500 0.2 10.4 24.7 2.5 25.0 74.3 59.5 1.6 1.6 2.5 2.7 036570 NCSOFT 9,083 414,000 2.4 54.7 36.8 50.0 36.5 13.7 10.1 2.6 2.2 22.0 24.8 009540 8,957 129,500 467.0 402.1 - - - 38.9 1.0 1.2 - 3.1 034220 LG Display 8,928 24,950 2.0 -78.9 158.6 -80.8 182.6 25.8 9.1 0.6 0.6 2.4 6.5 010130 Korea Zinc 8,746 463,500 1.8 7.9 2.9 20.3 2.8 11.4 11.1 1.3 1.2 12.1 11.3 024110 8,512 15,200 12.2 8.8 10.1 9.4 6.0 5.5 0.5 0.4 8.2 8.3 139480 Emart 7,903 283,500 0.6 23.2 11.3 -56.4 13.9 29.4 25.8 0.9 0.9 3.2 3.6 009150 Samsung Electro-Mechanics 7,880 105,500 0.8 80.5 12.1 87.3 15.5 27.0 23.4 1.7 1.6 6.7 7.3 030200 KT 7,207 27,600 2.9 11.1 1.7 21.0 12.8 8.9 7.9 0.5 0.5 6.6 7.0 004020 6,739 50,500 1.5 9.4 5.8 9.2 6.9 6.8 6.4 0.4 0.4 5.8 5.9 161390 6,640 53,600 0.9 38.5 13.1 33.2 13.6 8.0 7.0 0.9 0.8 12.1 12.1 021240 Coway 6,539 88,600 4.6 10.9 5.4 13.2 4.2 18.1 17.4 5.4 5.1 35.6 34.8 086280 6,506 173,500 1.7 0.7 3.9 -20.0 13.1 11.9 10.6 1.5 1.3 13.0 13.2 018880 Hanon Systems 6,192 11,600 - - - - 0.0 0.0 128940 5,807 510,000 -1.4 100.0 14.7 113.1 105.3 49.4 7.5 6.5 7.5 14.3 078930 GS Holdings 5,659 60,900 3.0 -8.0 4.8 -2.6 5.3 6.0 5.7 0.7 0.6 11.8 11.3 032640 LG Uplus 5,436 12,450 4.4 4.6 4.2 6.7 4.2 9.5 9.1 1.0 0.9 10.6 10.3 088350 Hanwha Life 5,168 5,950 - - - - 0.0 0.0 271560 Orion 4,961 125,500 0.6 153.2 15.7 18.4 17.6 27.3 23.2 3.3 2.9 12.6 13.3 009830 Hanwha Chemical 4,953 30,050 1.2 0.7 -2.8 12.0 6.6 5.2 4.9 0.7 0.6 14.5 13.6 097950 CJ CheilJedang 4,885 324,500 0.9 16.7 10.2 -9.9 10.6 14.1 12.8 1.2 1.1 9.1 9.3 Source: Mirae Asset Daewoo Research

Mirae Asset Daewoo Research Market Data April 6, 2018

※All data as of close April 05, 2018, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 540.60 -10.94 -1.98 -2.45 USD/KRW 1,057.60 1,057.80 1,081.30 1,118.90 KOSPI 2,437.52 29.46 1.22 -1.70 JPY100/KRW 990.68 992.82 1,023.28 1,009.70 KOSDAQ 868.93 6.42 0.74 6.95 EUR/KRW 1,299.31 1,298.08 1,333.95 1,194.87 Dow Jones* 24,264.30 230.94 0.96 -2.25 3Y Treasury 2.18 2.17 2.31 1.65 S&P 500* 2,644.69 30.24 1.16 -1.90 3Y Corporate 2.78 2.76 2.85 2.17 NASDAQ* 7,042.11 100.83 1.45 0.50 DDR2 1Gb* 1.34 1.34 1.34 1.25 Philadelphia Semicon* 1,319.01 16.92 1.30 2.43 NAND 16Gb* 3.00 3.00 2.96 2.18 FTSE 100* 7,034.01 3.55 0.05 -8.03 Oil (Dubai)* 64.70 65.16 60.28 51.10 Nikkei 225 21,645.42 325.87 1.53 -7.92 Gold* 1,335.80 1,332.80 1,323.40 1,255.00 Hang Seng* 29,518.69 -661.41 -2.19 -3.27 Customer deposits (Wbn)* 29,026 28,193 27,311 23,391 Taiwan (Weighted) 10,821.53 -66.74 -0.61 1.03 Equity type BC (Wbn)(Apr. 3) 81,296 81,040 80,301 69,355 Note: * as of April 04, 2018 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 NHN 37.40 Hana Financial Group 19.40 145.41 Hyundai Merchant Marine 51.28 SAMSUNG BIOLOGICS 19.28 POSCO 15.54 KODEX LEVERAGE 65.77 LG Electronics 19.46 Celltrion 17.50 Samsung Electronics 15.13 Hynix 63.27 NHN 12.95 Honam Petrochemical 16.62 13.15 Hyundai Heavy Industries 29.72 Shinhan Financial Group 11.28 LG Chem 14.08 KT&G 12.23 OCI 16.15 Hyundai Mobis 10.16 Shinhan Financial Group 13.94 Hyundai Heavy Industries 11.73 KODEX KOSDAQ150 LEVERAGE 13.03 Netmarble Games 10.15 Hyundai Merchant Marine 12.46 Hynix 11.31 KODEX 200 12.99 ITSHANBUL 7.93 OCI 11.18 Netmarble Games 10.90 Glovis 11.36 LG Household & Health Care 7.88 Hyundai Mobis 10.75 Hyundai Motor 9.97 SEMCO 11.12 Daum Communications 7.87 LG Electronics 10.65 SAMSUNG C&T 8.68 Hana Financial Group 10.82 NCsoft 7.37 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 25.03 SillaJen 15.04 PearlAbyss 18.09 SM 22.24 ECOPRO 8.44 Celltrion Healthcare 12.37 Celltrion Healthcare 9.00 Studio Dragon 10.55 Cafe24 Corp. 6.36 Medipost 11.26 Diostech 5.39 Posco Chemtech 9.43 Huons 5.69 Medy-tox 7.74 SillaJen 5.00 Jtuen Entertainment 5.53 HLB 5.62 Hugel 6.40 ECOPRO 3.98 JY Solutec 4.42 SM 4.95 Paradise 6.35 INICIS 3.53 Cafe24 Corp. 4.05 Texcell-Netcom 4.49 ANTEROGEN 4.59 Hugel 3.15 Paradise 1.99 WONIK IPS 2.88 Jenexine 3.32 CJ E&M 3.01 SKPI 1.68 DANAWA 2.42 SK Materials 3.25 Celltrion 2.97 ISPLUS 1.68 NEOWIZ Games 2.39 Sam Chun Dang Pharm 2.85 Gamevil 2.91 SFA Engineering 1.52 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 2,437,000 91,000 312,878 Celltrion Healthcare 101,200 200 13,917 Hynix 82,900 2,500 60,351 SillaJen 106,200 -900 7,242 Samsung Electronics (P) 2,040,000 81,000 36,868 Medy-tox 737,000 -13,000 4,169 Celltrion 295,000 1,000 36,187 ViroMed 240,400 -1,200 3,836 Hyundai Motor 154,000 -2,500 33,923 CJ E&M 94,000 0 3,641 SAMSUNG BIOLOGICS 502,000 -1,000 33,215 HLB 84,400 4,500 3,076 POSCO 318,500 1,000 27,769 PearlAbyss 253,100 9,100 3,054 LG Chem 383,500 7,500 27,072 Celltrion 90,800 8,700 3,029 SAMSUNG C&T 137,500 1,500 26,082 Kolon TissueGene(Reg.S) 47,000 150 2,862 NHN 779,000 25,000 25,678 LOEN 104,500 -1,400 2,643 Source: Korea Exchange