August 12, 2015

KOREA

Company News & Analysis Major Indices Close Chg Chg (%) Kangwon Land (035250/Buy/TP: W54,000) Raise TP KOSPI 1,975.47 -11.18 -0.56 2Q results overcome MERS headwind KOSPI 200 237.24 -0.67 -0.28 KOSDAQ 717.20 -15.06 -2.06 CJ E&M (130960/Buy/TP: W110,000) Raise TP Domestic margin expansion and strong overseas growth potential Turnover ('000 shares, Wbn) Volume Value CJ CGV (079160/Buy/TP: W150,000) KOSPI 519,701 6,801 Strong growth in China to continue in 3Q KOSPI 200 102,155 4,627 KOSDAQ 578,207 3,990

Asiana Airlines (020560/Trading Buy/TP: W7,500) Downgrade rating & Lower TP Market Cap (Wbn) Pace of recovery to be slower than expected Value KOSPI 1,235,287 KOSDAQ 197,697

KOSPI Turnover (Wbn) Buy Sell Net Foreign 1,433 1,733 -300 Institutional 1,539 1,278 261 Retail 3,774 3,756 18

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 299 264 35 Institutional 272 373 -101 Retail 3,403 3,336 67

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 1,518 1,247 271 KOSDAQ 97 81 17

Advances & Declines Advances Declines Unchanged KOSPI 201 615 44 KOSDAQ 199 847 36

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value KODEX LEVERAGE 9,495 -130 266 Electronics 1,154,000 -3,000 257 Hyundai Motor 146,000 7,000 239 GENEONE 17,500 3,600 233 Amore Pacific 376,000 -25,000 190

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Daum Communications 134,900 1,400 162 Sansung P&C 60,000 -7,300 121 SM 42,600 1,200 88 Com2us 124,400 3,800 87 CJ E&M 85,000 3,500 82 Note: As of August 12, 2015

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.

Kangwon Land (035250 KS) 2Q results overcome MERS headwind

Entertainment 2Q review: Revenue and OP up 9.3% and 19.7% YoY, respectively Kangwon Land’s 2Q results came in above our expectations and the consensus, despite Results Comment the negative impact of MERS. 2Q revenue grew 9.3% YoY to W388.9bn. Casino revenue August 12, 2015 rose 9.4% YoY on an increase in visitors and capacity expansion effects, while non-casino revenue (e.g., golf course, condominiums, etc.) increased 6.7% YoY.

Revenue from VIP, mass tables, and slot machines expanded 14.1%, 3.4%, and 14.2% (Maintain) Buy YoY, respectively. The number of visitors increased 4% YoY, rising for the third consecutive quarter (vs. +7.5% YoY in 1Q15). Target Price (12M, W) 54,000 Drop amount grew 7.3% YoY to W1.64tr. An increase in sales mix of slot machines Share Price (08/11/15, W) 41,400 (which have higher hold rates) pushed up the hold rate to 23.2%, near the record high (23.3%) set after the main casino’s opening. Expected Return 30% 2Q operating profit gained 19.7% YoY to W147.9bn, as COGS growth was outweighed by top-line growth and SG&A expenses declined 13.3% YoY. OP margin improved 3.3%p OP (15F, Wbn) 599 YoY to 38% (from 34.7% in 2Q14). Consensus OP (15F, Wbn) 596 Capacity expansion effects to last through 2016 EPS Growth (15F, %) 25.3 Average table utilization in 2Q remained at the low end of the 80% range , suggesting Market EPS Growth (15F, %) 28.4 the new tables that were added in 2013 have not entirely come online . In 2H, we expect P/E (15F, x) 19.7 mass table utilization to rise on the addition of roughly 90 new dealers. Market P/E (15F, x) 11.1 KOSPI 1,986.65 The second Yeongdong Expressway scheduled to open in 2016 is expected to shorten Market Cap (Wbn) 8,857 the travel time from Seoul to Wonju by 23 minutes. Hence, the travel time between the Shares Outstanding (mn) 214 Seoul capital area and Kangwon Land should also be reduced, and better accessibility is Free Float (%) 58.4 likely to serve as an upside catalyst to casino attendance. Foreign Ownership (%) 29.0 Reiterate Buy and Raise TP to W54,000 Beta (12M) 1.32 52-Week Low 30,100 We remain Buy on Kangwon Land and lift our target price to W54,000 (from W45,000), 52-Week High 42,650 as we upped our 2015 and 20 16 DPS estimates by 3.8% and 4.9%, respectively. Our target price is based on a 2015F dividend yield of 2%. (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M Absolute 7.1 25.6 19.7 Kangwon Land’s dividend yield has historically ranged from 2% to 3%. The casino Relative 9.5 23.1 22.8 operator has nearly W1.4tr in cash. Looking ahead, we see further earnings improvement in 2H and a potential hike in dividend payout ratio. 130 Kangwon Land KOSPI 120 110 100 90 80 70 8.14 12.14 4.15 8.15

Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/12 12/13 12/14 12/15F 12/16F 12/17F Revenue (Wbn) 1,296 1,361 1,497 1,650 1,764 1,852 [Internet/Game/Entertainment] OP (Wbn) 405 388 513 599 672 707

Chang-kwean Kim OP margin (%) 31.3 28.5 34.3 36.3 38.1 38.2 +822-768-4321 NP (Wbn) 306 298 359 450 515 563 [email protected] EPS (W) 1,431 1,391 1,680 2,105 2,405 2,634 ROE (%) 13.2 12.2 13.8 15.8 16.4 16.4 Jeong-yeob Park +822-768-4124 P/E (x) 20.4 22.2 18.1 19.7 17.2 15.7 [email protected] P/B (x) 2.5 2.5 2.3 2.8 2.6 2.4 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

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.

CJ E&M (130960 KQ) Domestic margin expansion and strong overseas growth potential

Media 2Q review: OP beats, as broadcasting delivers both revenue and profit growth CJ E&M’s 2Q operating profit beat both our expectation and the consensus, driven by Results Comment the broadcasting unit’s fundamental improvements. August 12, 2015 Positives: The broadcasting unit delivered an impressive performance, recording a 7% YoY increase in revenue and returning to profitability YoY. Sales of both ad packages and content grew thanks to the success of the company’s major content. The increase in (Maintain) Buy revenue came as expenses (production and SG&A) remained unchanged Yo Y, leading to leverage effects. The music/performance unit also posted a better-than-expected Target Price (12M, W) 110,000 operating profit. Negatives: The film division posted a loss, as box-office revenue fell to a record low due Share Price (08/11/15, W) 81,500 to the absence of hit titles. Revenue recognition for foreign co-productions (including the movie Miss Granny released earlier this year in China) was also deferred to 3Q. On Expected Return 35% the non-operating side, write-downs related to content increased, partially offsetting equity-method gains from Games. OP (15F, Wbn) 59 Overseas expansion to gain pace; Film earnings to recover from 3Q Consensus OP (15F, Wbn) 52 We believe CJ E&M’s full-fledged overseas expansion and expectations on the recovery EPS Growth (15F, %) -42.4 of the film business will serve as positive share catalysts in 2H. Market EPS Growth (15F, %) 28.4 Overseas operations: In 2Q, CJ E&M established a wholly-owned subsidiary as a foreign P/E (15F, x) 24.4 invested enterprise in Shanghai’s free-trade zone. Earnings from the China subsidiary Market P/E (15F, x) 11.1 will be reflected in CJ E&M’s consolidated earnings. The subsidiary will be mainly KOSDAQ 732.26 involved in planning and developing local content, and intends to jointly develop Market Cap (Wbn) 3,157 intellectual properties and make co-productions with local partners. Meanwhile, t he Shares Outstanding (mn) 39 Hong Kong cable network Channel M, which was originally set up as a joint venture, Free Float (%) 56.7 became CJ E&M’s wholly-owned subsidiary in July. Following the reorganization, the Foreign Ownership (%) 12.2 network plans to overhaul its business and expand its advertising operations. Beta (12M) 1.39 Film business: Korean films have been staging a comeback this summer. CJ E&M’s film 52-Week Low 32,300 business should also recover, as a number of movies are set to be released, including 52-Week High 83,100 Veteran in August, Detective in September, and the blockbuster Himalaya in 4Q. (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M Altogether, the company has six major films lined up for 2H. Revenue from previously released foreign co-productions should also be booked in 3Q. In China, two co- Absolute 11.5 77.8 74.5 productions, Pyeongando and Final Recipe , are scheduled to hit theaters in 2H. Relative 11.3 46.0 30.2

Maintain Buy and Raise TP to W110,000 210 CJ E&M KOSDAQ We reiterate our Buy call on CJ E& M and raise our target price to W110,000 (from 160 W100,000) following our upward EPS revision. In contrast to foreign traditional media companies, which have recently sold off on worries about their broadcasting business, 110 CJ E&M is seeing positive trends in its broadcasting division. In 2H, the company’s film division should also pick up, supporting the uptrend in domestic margins. On th e 60 8.14 12.14 4.15 8.15 overseas front, the setup of the China subsidiary and the release of new content should reinforce the company’s growth potential. Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/12 12/13 12/14 12/15F 12/16F 12/17F Revenue (Wbn) 1,395 1,246 1,233 1,297 1,364 1,420 [Telecom Service / Media] OP (Wbn) 39 -9 -13 59 68 77

Jee-hyun Moon OP margin (%) 2.8 -0.7 -1.1 4.5 5.0 5.4 +822-768-3615 NP (Wbn) 37 5 225 129 80 95 [email protected] EPS (W) 975 133 5,796 3,337 2,074 2,453

ROE (%) 3.1 0.4 16.4 8.2 4.8 5.4 P/E (x) 27.2 229.0 6.6 24.4 39.3 33.2 P/B (x) 0.8 1.0 1.0 1.9 1.8 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

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

CJ CGV (079160 KS) Strong growth in China to continue in 3Q

Entertainment 2Q OP breakdown: Domestic W6.8bn, China W1.5bn, and Vietnam W4.6bn As expected, CJ CGV’s domestic business fared poorly in 2Q due to the impact of the Results Comment MERS outbreak. Non-consolidated revenue grew 12.3% YoY, which was better than August 12, 2015 expected, but non-consolidated operating profit contracted 6.3% YoY to W6.8bn, weighed down by 1) heavy fixed costs as a result of site expansion and 2) increased

promotional spending following the MERS outbreak. (Maintain) Buy On a consolidated basis, revenue grew 23.5% YoY and operating profit climbed 167.3% YoY, confirming the strong growth of overseas subsidiaries. Target Price (12M, W) 150,000 CJ CGV’s July box office revenue in China jumps 97% YoY Share Price (8/11/15, W) 120,500 In 2Q, China’s box office continued robust growth, with revenue increasing 47% YoY. More encouraging was the sharp growth in July (+53% YoY), which dispelled worries Expected Return 24% stemming from the sharp slowdown in June compared to the previous two months , as well as reduced promotions by Tencent and Alibaba.

OP (15F, Wbn) 84 The high growth of China’s box office in July also demonstrates the strong potential of Consensus OP (15F, Wbn) 84 locally-made films in driving market growth, as Chinese titles accounted for 92% of the EPS Growth (15F, %) 96.2 overall market. In July, CJ CGV’s China box-office revenue outpaced the overall market, Market EPS Growth (15F, %) 28.4 surging 97% YoY. Based on directly-operated sites only, the company’s China box-office P/E (15F, x) 39.1 revenue grew a whopping 150% YoY in July. Market P/E (15F, x) 11.1 After a poor performance in 1H, domestic films have been doing better in 3Q. The movie KOSPI 1,986.65 Assassination (starring Jun Ji-hyun and Ha Jung-woo) is on track to sell more than 10mn Market Cap (Wbn) 2,550 tickets, and the highly anticipated movies Veteran and Memories of the Sword are set Shares Outstanding (mn) 21 for release in August. In July, domestic box-office revenue rose 17% YoY, recovering Free Float (%) 60.9 from the MERS impact. Foreign Ownership (%) 13.1 Beta (12M) 1.03 Maintain Buy and TP of W150,000 52-Week Low 47,000 We keep our Buy rating and target price of W150,000, as we did not make any c hanges 52-Week High 131,000 to our earnings estimates for either the domestic business or the overseas business, (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M following the 2Q earnings release. Absolute 3.9 85.1 148.7 Our target price represents the sum of the valuations for Korea, China, and Vietnam Relative 6.2 81.3 155.3 operations. We value 1) the domestic business at W1.11tr, which equals 1 7.7x our

330 CJ CGV KOSPI 2015F EPS, 2) the China business at W1.83tr, which is based on a 60% discount to the 280 per-site value of rival Wanda Cinema Line, and 3) the Vietnam business at W178.5bn,

230 which corresponds to 20x our 2015F EPS.

180 130

80 8.14 12.14 4.15 8.15

Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/12 12/13 12/14 12/15F 12/16F 12/17F Revenue (Wbn) 665 773 865 908 962 1,014 [Internet/Game/Entertainment] OP (Wbn) 72 68 71 84 93 99

Chang-kwean Kim OP margin (%) 10.8 8.8 8.2 9.3 9.7 9.8 +822-768-4321 NP (Wbn) 73 43 33 65 72 77 [email protected] EPS (W) 3,528 2,062 1,572 3,084 3,389 3,623 ROE (%) 20.4 10.3 7.2 13.0 12.7 12.2 Jeong-yeob Park +822-768-4124 P/E (x) 9.1 21.1 34.3 39.1 35.6 33.3 [email protected] P/B (x) 1.7 2.0 2.4 4.8 4.3 3.8 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

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 CERTIFICATICERTIFICATIONSONS AND IMPORTANT DISCLOSURESDISCLOSURES & DISCLAIMERS IN APPEAPPENDIXNDIX 1 AT THE END OF REPORT.

Asiana Airlines (020560 KS) Pace of recovery to be slower than expected

Airlines 2Q15 review: MERS takes a larger-than-expected toll Asiana Airlines reported a weak 2Q, with revenue falling 5.4% YoY to W1.33tr. In the Results Comment international passenger segment, traffic decline was not as bad as expected, but fare August 12, 2015 discounts to stem cancellations in June led to a worse-than-projected fall in yield (-14% YoY vs. our estimate of -13% YoY). Cargo yield also declined by a larger-than-expected

16% YoY (vs. our estimate of -14% YoY) due to the dissipation of demand sparked by (Downgrade) Trading Buy the US West Coast port strike. Margins were also eroded by heavy fuel hedging costs (estimated at W10-20bn) and Target Price (12M, W) 7,500 higher maintenance costs (W105bn in 2Q15 vs. W62.1bn in 2Q14 and W71.7bn in 1Q15). We believe the marked increase in maintenance costs was largely due to one-off Share Price (08/11/15, W) 6,400 factors related to engine repair. On the non-operating side, F/X-translation losses of W47bn contributed to a 2Q net loss of W87.4bn. Expected Return 17%

Pace of recovery to be slower than expected OP (15F, Wbn) 181 1) Passenger: The fall in passenger traffic has yet to show signs of slowing. However, Consensus OP (15F, Wbn) 282 capacity cuts are leading to cost savings and yield decline is decelerating due to load factor improvement. With the August booking rate back to normal levels, the decline in EPS Growth (15F, %) -88.2 yield should moderate to the single digits. Market EPS Growth (15F, %) 28.4 P/E (15F, x) 170.9 2) Cargo: Seasonal weakness suggests a strong recovery is unlikely, but load factor Market P/E (15F, x) 11.1 should continue to improve and the fall in yield should be limited. According to Incheon KOSPI 1,986.65 International Airport (IIA) data, the July load factor indicator is up 2.2%p YoY for the overall market and up 9.4%p YoY for Asiana Airlines. Market Cap (Wbn) 1,249 Shares Outstanding (mn) 195 3) Lowering OP estimates: It will likely take some time before the carrier can restore its Free Float (%) 63.7 previously strong pace of growth that lasted until 1Q15. We revised down our 3Q Foreign Ownership (%) 8.5 operating profit forecast to W70.8bn (vs. W 112.2bn previously) and subsequently Beta (12M) -0.55 lowered our full-year estimates by 30.3% for 2015 and 1.4% for 2016. 52-Week Low 3,860 52-Week High 9,290 Downgrade to Trading Buy and Cut TP to W7,500

(%)(%)(%) 1M1M1M 6M6M6M 12M12M12M We downgrade our rating on Asiana Airlines to Trading Buy and cut our target price to Absolute -4.5 -27.7 40.8 W7,500 (from W9,000). Our target price is based on a P/B of 1.4x, the average mid- Relative -2.3 -29.2 44.6 cycle multiple. While we are beginning to see signs of improvement, we believe the pace of pickup will be slower than previously anticipated. Falling oil prices should support

220 Asiana Airlines KOSPI continued cost savings, but the most pressing challenge right now is the recovery of top-line growth (i.e. passenger demand). In the long term, competition with low-cost 170 carriers (LCC) could pose a serious challenge to the airliner. In the near term, the stock is

120 likely to show greater volatility. That said, we believe any excessive pullback should be viewed as a buying opportunity from a medium-term perspective. 70 8.14 12.14 4.15 8.15

Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/12 12/13 12/14 12/15F 12/16F 12/17F Revenue (Wbn) 5,888 5,724 5,836 5,763 6,143 6,386 [Transportation/Energy] OP (Wbn) 179 -11 98 181 281 258

Jay JH Ryu OP margin (%) 3.0 -0.2 1.7 3.1 4.6 4.0 +822-768-4175 NP (Wbn) 61 -116 62 7 137 157 [email protected] EPS (W) 317 -593 319 37 704 802 ROE (%) 6.6 -12.2 6.5 0.7 12.5 12.5 Choong-hyun Kim +822-768-4126 P/E (x) 19.5 - 22.4 170.9 9.1 8.0 [email protected] P/B (x) 1.2 1.1 1.4 1.2 1.1 0.9 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

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 & DISCLAIMDISCLAIMERSERS IN APPENDIX 1 AT THE END OF REPORT.

Key Universe Valuations August 12, 2015

※All data as of close August 11, 2015, unless otherwise noted.

15F Earnings growth Mkt Cap Price P/E (x) P/B (x) ROE (%) Ticker Company Div Yield OP EPS (Wbn) (W) (%) 15F 16F 15F 16F 15F 16F 15F 16F 15F 16F 005930 169,983 1,154,000 1.3 8.7 6.2 -6.9 8.5 9.1 8.4 1.0 0.9 12.6 12.3 005380 Hyundai Motor 32,160 146,000 2.5 -11.9 8.0 -7.1 2.1 6.1 6.0 0.7 0.6 11.4 10.7 015760 KEPCO 31,970 49,800 2.2 56.6 4.5 266.6 -47.6 3.2 6.2 0.5 0.5 16.9 7.9 000660 SK Hynix 26,062 35,800 1.1 13.1 0.6 8.5 2.8 5.6 5.5 1.2 1.0 22.9 19.4 090430 AmorePacific 21,980 376,000 0.3 40.9 31.8 51.4 31.2 45.2 34.5 7.8 6.5 18.6 20.7 012330 20,637 212,000 1.6 -10.7 11.1 -10.7 15.1 6.8 5.9 0.8 0.7 12.4 12.8 017670 SK Telecom 20,429 253,000 4.0 3.5 7.3 5.2 5.1 10.8 10.3 1.2 1.1 12.8 12.6 055550 20,248 42,700 - - - - 0.0 0.0 032830 Samsung Life 20,100 100,500 - - - - 0.0 0.0 018260 Samsung SDS 20,080 259,500 0.2 14.3 13.8 12.4 12.2 43.3 38.6 4.5 4.0 10.8 11.0 000270 Motors 17,917 44,200 2.6 -4.4 25.0 -0.3 14.9 6.0 5.2 0.8 0.7 13.0 13.7 035420 NAVER 17,404 528,000 0.2 12.7 34.4 32.0 35.5 29.0 21.4 5.3 4.3 28.8 29.4 005490 POSCO 16,696 191,500 4.2 -9.6 30.8 124.5 65.9 11.9 7.2 0.4 0.4 3.4 5.5 033780 KT&G 15,651 114,000 3.1 14.8 -6.3 22.9 -10.5 15.4 17.2 2.4 2.2 17.1 14.1 105560 KB Financial Group 14,565 37,700 - - - - 0.0 0.0 051910 LG Chem 14,116 213,000 1.9 53.5 26.1 61.5 35.5 11.2 8.3 1.2 1.1 11.2 13.8 034730 SK C&C 13,376 304,000 0.7 23.2 9.0 356.4 4.3 26.2 25.1 4.4 3.8 22.7 19.8 000810 Samsung F&M 12,531 264,500 - - - - 0.0 0.0 051900 LG Household & Health Care 12,526 802,000 0.5 34.8 20.3 34.4 22.6 30.3 24.7 7.0 5.6 26.1 26.0 003600 SK Holdings 9,721 207,000 1.2 91.8 -14.6 - -41.3 7.1 12.0 0.8 0.7 12.0 6.5 003550 LG Corp. 9,680 56,100 1.8 18.0 4.2 18.5 5.9 7.9 7.4 0.7 0.7 9.4 9.2 035250 Kangwon Land 9,328 43,600 2.5 16.8 12.2 25.3 14.2 20.7 18.1 3.0 2.7 15.8 16.4 010130 Korea Zinc 9,029 478,500 1.4 3.2 17.4 9.4 17.6 16.5 14.0 1.8 1.6 11.3 12.0 086790 8,628 29,150 - - - - 0.0 0.0 096770 SK Innovation 8,581 92,800 3.4 - -29.2 - -27.6 6.3 8.7 0.5 0.5 8.8 6.0 034220 LG Display 8,176 22,850 2.2 47.1 -34.0 49.0 -33.1 6.1 9.1 0.7 0.6 11.3 7.0 035720 Daum 8,086 134,900 0.1 33.4 37.8 -51.5 52.3 45.5 29.9 3.0 2.8 6.9 9.8 030200 KT 7,873 30,150 1.7 - 2.1 - -15.8 10.1 12.0 0.7 0.6 7.3 5.8 011170 Lotte Chemical 7,832 228,500 0.4 348.5 0.4 696.9 6.9 6.7 6.3 1.0 0.9 16.7 15.3 000830 Samsung C&T 7,764 49,700 1.2 -19.4 12.2 61.9 9.6 18.2 16.6 0.6 0.6 3.3 3.5 024110 7,762 13,950 - - - - 0.0 0.0 023530 Lotte Shopping 7,589 241,000 0.6 11.3 12.6 37.8 13.4 10.0 8.8 0.4 0.4 4.4 4.8 009240 Hanssem 7,566 321,500 0.3 35.1 34.9 35.3 34.3 64.5 48.1 15.9 12.3 30.8 31.8 088350 Hanwha Life 7,383 8,500 - - - - 0.0 0.0 004020 7,166 53,700 1.4 10.8 4.8 44.4 -4.6 5.7 5.9 0.4 0.4 7.8 7.0 19745. 009540 7,068 93,000 - - - - 13.5 0.4 0.4 - 3.4 0 021240 Coway 6,926 89,800 3.0 21.1 12.9 30.7 11.9 21.2 19.0 5.8 5.1 31.0 31.8 086280 6,844 182,500 1.1 3.7 12.3 -16.5 30.0 15.3 11.8 2.2 1.9 15.3 17.5 010950 S-Oil 6,620 58,800 4.6 - -24.6 - -22.9 7.2 9.4 1.2 1.1 17.8 12.2 066570 LG Electronics 6,603 40,350 1.5 -40.8 56.2 31.8 84.9 13.9 7.5 0.6 0.6 4.5 7.9 139480 Emart 6,398 229,500 0.7 -2.7 25.8 111.3 -18.2 10.4 12.8 0.9 0.8 8.7 6.7 001800 Orion 5,868 982,000 0.6 17.2 9.4 26.9 14.7 28.3 24.7 4.1 3.6 15.7 15.9 006400 Samsung SDI 5,549 80,700 1.2 -73.3 859.1 - 45.4 25.9 17.8 0.5 0.5 1.9 2.7 097950 CJ CheilJedang 5,301 403,000 0.5 45.4 11.4 201.6 19.3 21.0 17.6 1.8 1.6 9.1 10.1 051600 KEPCO KPS 5,265 117,000 - - - - 0.0 0.0 032640 LG Uplus 5,261 12,050 2.3 26.4 0.7 80.3 3.9 12.8 12.3 1.2 1.1 9.5 9.3 004800 4,916 140,000 0.7 -1.9 -4.4 9.4 -4.9 16.7 17.6 1.6 1.5 10.1 8.8 007070 GS Retail 4,774 62,000 1.0 69.0 25.0 67.0 24.3 25.7 20.7 2.6 2.4 10.6 12.1 036570 NCsoft 4,715 215,000 1.8 12.7 22.1 19.7 15.1 17.1 14.9 2.8 2.5 18.8 18.8 161390 4,682 37,800 1.1 -21.0 13.2 -12.4 12.7 7.6 6.8 0.9 0.8 12.9 13.0 Source: KDB Daewoo Securities Research

Market Data August 12, 2015

※All data as of close August 12, 2015, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 342.69 -6.30 -1.81 -11.38 USD/KRW 1,170.40 1,165.30 1,136.20 1,030.60 KOSPI 1,975.47 -11.18 -0.56 2.55 JPY100/KRW 935.80 935.65 933.57 1,008.17 KOSDAQ 717.20 -15.06 -2.06 29.52 EUR/KRW 1,292.59 1,283.75 1,256.52 1,379.46 Dow Jones* 17,402.84 -212.33 -1.21 -2.41 3Y Treasury 1.71 1.74 1.81 2.52 S&P 500* 2,084.07 -20.11 -0.96 1.26 3Y Corporate 1.95 1.98 2.02 2.91 NASDAQ* 5,036.79 -65.01 -1.27 6.56 DDR2 1Gb* 1.17 1.17 1.19 1.64 Philadelphia Semicon* 637.85 -14.80 -2.27 -7.12 NAND 16Gb* 1.57 1.59 1.70 2.39 FTSE 100* 6,664.54 -71.68 -1.06 1.78 Oil (Dubai)* 48.58 48.11 58.30 103.47 Nikkei 225 20,392.77 -327.98 -1.58 17.14 Gold* 1,107.60 1,104.20 1,157.90 1,308.50 Hang Seng* 24,498.21 -22.91 -0.09 2.68 Customer deposits (Wbn)* 20,829 20,691 21,423 16,231 Taiwan (Weighted) 8,283.38 -110.76 -1.32 -10.68 Equity type BC (Wbn)(Aug. 10) 77,945 77,831 76,739 78,343 Note: * as of August 11, 2015 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 SK Energy 14.73 Samsung Electronics 68.48 Samsung Electronics 74.26 KODEX LEVERAGE 81.29 Hanmi Science 9.27 Amore Pacific 32.25 Hyundai Motor 50.10 Amore Pacific 21.70 COSMAX 7.28 Hynix 25.40 Kia Motors 35.10 Hanmi Pharm 21.46 Hanmi Pharm 6.90 LG Chem 24.67 NHN 23.91 COSMAX 17.89 Hyundai Development E&C 6.66 SK Telecom 21.79 SK Telecom 22.82 Hanmi Science 13.26 Daewoo Securities 6.46 KODEX 200 16.12 Hyundai Mobis 16.68 Asiana Airlines 12.66 Hyundai Motor (2P) 5.59 Hyundai Motor 14.66 Lotte Shopping 14.07 Daewoo Securities 10.83 Kangwon Land 4.78 13.51 LG Uplus 12.34 LG Life Sciences 10.10 SAMSUNG SDS 4.52 CJ Cheiljedang 12.46 KODEX 200 11.92 Samsung Corp. 9.91 Samsung F&M Insurance 4.52 KOREA AEROSPACE 9.93 KEPCO 11.68 Samsung Techwin 8.67 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 12.69 Medy-tox 4.67 CJ E&M 10.75 ATTO 11.30 Daum Communications 6.11 YG Entertainment 4.55 YG Entertainment 3.33 SEEGENE 7.54 SM 5.23 ATTO 3.97 Hyungkuk F&B 2.32 Com2us 6.61 CJ E&M 3.87 PATI Games 3.48 SM 2.19 Celltrion 6.51 Wemade 3.53 Bio Space 2.32 Mezzion Pharma 1.81 Humedix 6.44 KEBT 3.04 Media Flex 2.17 Silicon Works 1.72 Boryung Medience 5.00 GemVax 2.54 Estech Pharma 1.91 Gamevil 1.67 Eugene Corporation 4.83 Huons 2.52 Dae Han New Pharm 1.69 INICIS 1.65 NeoPharm 4.52 Sansung P&C 2.26 OCI Materials 1.55 CJ O Shopping 1.58 COSON 3.98 Value Added Technology 2.17 DH PHARM 1.50 GemVax 1.32 Media Flex 3.38 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 1,154,000 -3,000 169,983 Celltrion 81,100 600 9,085 Hyundai Motor 146,000 7,000 32,160 Daum Communications 134,900 1,400 8,086 KEPCO 49,800 -500 31,970 Dongsuh 43,200 -2,500 4,307 Hynix 35,800 -300 26,062 CJ E&M 85,000 3,500 3,292 Amore Pacific 376,000 -25,000 21,980 Medy-tox 503,000 -16,600 2,845 Hyundai Mobis 212,000 5,000 20,637 ViroMed 170,100 -4,200 2,415 Samsung Electronics (P) 898,000 6,000 20,504 LOEN 93,500 -1,500 2,365 SK Telecom 253,000 -1,000 20,429 Paradise 21,700 -750 1,973 Shinhan Financial Group 42,700 -300 20,248 EO Technics 117,000 -2,000 1,436 100,500 500 20,100 Kolon Life Science 201,300 17,100 1,347 Source: