January 13, 2020 Korea Morning Focus

Company News & Analysis Major Indices Close Chg Chg (%) Dentium (145720/Buy/TP: W85,000) KOSPI 2,206.39 19.94 0.91 Quick comment on stock sell-off KOSPI 200 297.06 2.65 0.90 KOSDAQ 673.03 6.94 1.04 Hyundai Steel (004020/Buy/TP: W37,000) Lower TP Shadows cast by shrinking automotive steel margins Turnover ('000 shares, Wbn) Volume Value KOSPI 584,150 6,459 Sector News & Analysis KOSPI 200 92,613 4,428 Telecom Services (Overweight) KOSDAQ 827,031 4,914

5G series (2): CES 2020 Market Cap (Wbn) Value Global Fintech KOSPI 1,484,063 Korea to introduce MyData and facilitate data convergence and use of big KOSDAQ 242,703

data KOSPI Turnover (Wbn) Buy Sell Net Foreign 1,840 1,461 379 Institutional 1,459 1,823 -364 Retail 3,119 3,142 -23

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 528 583 -56 Institutional 216 246 -31 Retail 4,145 4,048 98

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 1,657 1,383 274 KOSDAQ 510 577 -67

Advances & Declines Advances Declines Unchanged KOSPI 568 265 74 KOSDAQ 891 360 95

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Electronics 59,500 900 935 Hynix 98,900 -100 279 KODEX Leverage 14,650 255 279 KODEX Kosdaq150 8,710 165 221 Leverage Samsung SDI 249,000 16,500 200

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value SK Bioland 27,300 6,300 298 SillaJen 17,100 -200 198 GemVax 40,950 700 161 Kukil Paper 5,870 310 141 HLB 112,600 100 108 Note: As of January 10, 2020

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.

Dentium (145720 KS/Buy) Quick comment on stock sell-off

Medtech  Stock tumbles on negative news  Focus on fundamentals rather than excessive fears Issue Comment

January 13, 2020 Stock tumbles on negative news

- On January 9th, media outlets reported that the civic group Citizens United for Consumer Mirae Asset Daewoo Co., Ltd. Sovereignty filed a complaint with prosecutors alleging that current and former officials of the , Financial Services Commission, and Financial Supervisory Service [Medtech/Healthcare Solutions] illegally allowed Dentium’s IPO even though the company failed to meet listing

Choong-hyun Kim, CFA requirements. +822-3774-1740 [email protected] - In response, Dentium said that multiple audit reviews and explanations given during its listing process had shown the allegations to be groundless, and argued that claims of

government agencies committing illegal acts for the mere purpose of listing a small-cap

company were absurd.

Analyst’s insight: Focus on fundamentals rather than excessive fears

- Amid the noise fueled by the negative news, Dentium’s stock closed 12.3% lower. In our view, the focus right now should be the company’s fundamentals rather than the excessive fears. We believe Dentium continues to exhibit robust fundamentals and has the most attractive valuation among the three major implant makers.

- From 1Q19 to 3Q19, Dentium’s revenue grew 38.3% YoY. While the company has not yet issued its 2020 guidance (as 4Q19 earnings have not been released), this year’s growth is expected to be in line with the 2019 level. (We plan to adjust our earnings estimates after the 4Q19 earnings release.) China remains the key source of revenue growth. Dentium is the first foreign company in China to receive regulatory approval for local dental implant production. The company has also been approved to sell its dental CT scanners in China, further enhancing its competitive position.

- Dentium currently faces three major concerns: 1) a falling OP margin, 2) cash flow deterioration, and 3) increasing accounts receivables.

1) Falling OP margin: We do not expect a sharp rise in labor costs in 2020, as the company does not have any major hiring plans. Meanwhile, the company manufactures its dental CT scanners at its Vietnamese plant, and it has improved its cost competitiveness by internally sourcing detectors, which account for the highest portion of dental CT costs. Further taking into account leverage effects from revenue growth, we think OP margin is unlikely to fall below the 2019 level.

2) Cash flow deterioration: The main cause of Dentium’s cash flow deterioration has been capital spending. Since 2018, the company has spent around W100bn (W26bn expected in 2020) for the construction of its headquarters building, Vietnamese and Chinese plants, and related production facilities. The company’s three-year capex cycle will come to an end this year.

3) Increasing accounts receivables: Dentium’s accounts receivables have grown due to the addition of new dealers resulting from its expansion overseas. The company gives new dealers more time to make payments to ensure stabilization. Right now, allowances are at their highest level since 2015. The ratio of allowances to accounts receivables has steadily fallen since 2015. We believe this suggests Dentium’s ability to collect debt has gradually improved, given how stringent auditing standards have become lately.

- Dentium’s stock is currently trading at a 12-month forward P/E of 10.1x, a steep discount to its historical valuation (three-year average of 21.0x) and rivals (vs. 15.6x for Osstem Implant and 17.7x for DIO Implant). The stock is even cheaper than Vatech (10.2x), a dental equipment provider, which is a group that traditionally has lower valuations than dental implant names.

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.

Hyundai Steel (004020 KS) Shadows cast by shrinking automotive steel margins Steel Stock has lost half of its value post-merger, mainly because of automotive steel margin erosion Company Report January 13, 2020 Following its merger with in July 2015, Hyundai Steel’s market value from 2016 to 2018 averaged around W7.2tr. However, the stock has continued to lose value since 2019, closing at W3.8tr on Friday, down 48% (or W3.4tr) from its 2016-18 average. The company’s stock decline is ultimately the result of shrinking profits. Hyundai Steel’s annual consolidated operating profit averaged W1.4tr from 2016 to (Maintain) Buy 2018 (adjusting for the ordinary wage effects in 2018), but that figure slumped to an estimated W0.5tr in 2019. While the steel market downturn triggered by US-China ▼ Target Price (12M, W) 37,000 trade disputes was partly to blame, we believe the bigger cause was the margin erosion of automotive steel supplies to Hyundai Motor (HMC)/ Motors (Kia), which Share Price (01/10/20, W) 28,800 have an outsized impact on the steelmaker’s profits.

Expected Return 28% Automotive steel price negotiations have not reflected market dynamics Iron production costs (the weighted average of iron ore and coking coal prices), which

had fallen steadily since 2011, have been on the rise since late 2015. In won terms, OP (19F, Wbn) 476 production costs have jumped to an average of W300,000/tonne, up from Consensus OP (19F, Wbn) 540 W150,000/tonne in 4Q15. However, the price of Hyundai Steel’s automotive steel to HMC/Kia was raised by roughly W60,000/tonne during that period (in 2Q17). This EPS Growth (19F, %) -97.9 suggests that Hyundai Steel’s automotive steel margins have contracted by around Market EPS Growth (19F, %) -34.1 W90,000/tonne, which translates to a decline in full-year profit of approximately P/E (19F, x) 502.6 W400bn. Market P/E (19F, x) 15.2 KOSPI 2,206.39 While higher costs do not always lead to product price hikes, we think the extent of Hyundai Steel’s automotive steel price hike was not determined by market dynamics, Market Cap (Wbn) 3,843 given that: 1) steel prices (based on China’s HRC export prices) have increased from Shares Outstanding (mn) 133 US$300/tonne to US$500/tonne during that period; and 2) the average ASP of CRC at Free Float (%) 62.4 one rival has increased by W150,000/tonne. Foreign Ownership (%) 22.1 Beta (12M) 1.14 Maintain Buy, but cut TP 52-Week Low 28,200 We maintain our Buy rating on Hyundai Steel, as: 1) we believe the automotive steel 52-Week High 51,700 margin decline has largely been priced in; 2) steel prices have continued to move (%) 1M 6M 12M higher after rebounding in November 2019; and 3) prices of non-automotive steel Absolute -6.6 -28.0 -41.1 products are likely to be raised. However, we adjusted down our earnings estimates, as Relative -11.2 -32.8 -44.9 we believe automotive steel prices were frozen in 2H19, and price hikes look unlikely this year, as well. As such, we cut our target price by 11.9% from W42,000 to W37,000. 130 Hyundai Steel KOSPI

110

90

70

50 1.19 5.19 9.19 1.20

Mirae Asset Daewoo Co., Ltd.

[ Metals & Mining/Machinery] FY (Dec.) 12/16 12/17 12/18 12/19F 12/20F 12/21F Revenue (Wbn) 16,692 19,166 20,780 20,281 19,529 20,294 Jaekwang Rhee +822-3774-6022 OP (Wbn) 1,445 1,368 1,026 476 586 675 [email protected] OP margin (%) 8.7 7.1 4.9 2.3 3.0 3.3

NP (Wbn) 850 716 399 8 226 293 EPS (W) 6,371 5,366 2,988 63 1,697 2,199 ROE (%) 5.4 4.4 2.4 0.0 1.3 1.6

P/E (x) 8.9 10.9 15.1 502.6 17.0 13.1 P/B (x) 0.5 0.5 0.4 0.2 0.2 0.2 Dividend yield (%) 1.3 1.3 1.7 2.4 2.6 2.6 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.

January 13, 2020 Hyundai Steel

Table 1. Quarterly and annual earnings (Wbn, %) 1Q19 2Q19 3Q19 4Q19F 1Q20F 2Q20F 3Q20F 4Q20F 2018 2019F 2020F Revenue 5,072 5,572 5,047 4,590 4,757 5,008 4,757 5,008 20,780 20,281 19,529 Hyundai Steel (parent) 4,478 5,017 4,459 4,060 4,227 4,478 4,227 4,478 18,611 18,014 17,409 Subsidiaries 594 555 589 530 530 530 530 530 2,170 2,267 2,120 Operating profit 212 233 34 (3) 94 167 158 167 1,026 476 586 Hyundai Steel (parent) 169 218 34 (4) 85 157 148 157 933 417 546 Subsidiaries 43 14 0 1 10 10 10 10 93 59 40 OP margin 4.2 4.2 0.7 (0.1) 2.0 3.3 3.3 3.3 4.9 2.3 3.0 Hyundai Steel (parent) 3.8 4.4 0.8 (0.1) 2.0 3.5 3.5 3.5 5.0 2.3 3.1 Subsidiaries 7.3 2.6 0.0 0.2 1.9 1.9 1.9 1.9 4.3 2.6 1.9 Pretax profit 156 132 (65) (81) 42 89 80 89 570 143 301 Net profit (controlling) 114 46 (68) (80) 32 67 61 67 399 12 226 Source: Company data, Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research

Telecom Services

5G series (2): CES 2020

Overweight (Maintain) Growth of automobiles and 5G is mutually reinforcing

This year’s Consumer Electronics Show (CES) provided insight into the evolution of Industry Report automobiles and potentially mutually reinforcing relationship between cars and January 13, 2020 5G. Broadly, the is moving in three directions: 1) electrification of powertrains; 2) enhancement of in-car entertainment; and 3) application of autonomous driving technology. While the introduction of electric vehicles (EVs) Mirae Asset Daewoo Co., Ltd. has been going on for a decade, we sense the market is nearing a turning point, with a large number of automakers rolling out mass-volume models and more [Telecom Services/Robotics/Shipbuilding] pure EV makers entering the scene. One of the biggest EV-related highlights of CES

Hakmoo Lee 2020 was Sony’s showcase of an electric concept car. We believe Sony’s concept car +822-3774-1785 is significant not only in terms of showing that EV technology has advanced far [email protected] enough for a tech company to make its own EV, but also in terms of signaling the acceleration of automobiles’ transition into moving smart devices.

We believe the entry of tech companies into the auto market could speed up the

evolution of cars into “smart devices on wheels,” enhance in-car entertainment capabilities, and lead to more convenient services, all of which should increase the

need for mobile network connections. Sony’s concept car emphasized in-car entertainment by featuring massive displays and built-in in mobile modems. To maximize such entertainment capabilities, it is important to ensure a certain level of autonomy for drivers, which is where autonomous driving technology comes in.

Telecom and media companies stand to benefit

The increasing presence of EVs, the enhancement of in-car entertainment, and the full-fledged application of autonomous driving are undoubtedly beneficial to telecom companies. The introduction of EVs alone does not increase the need for mobile networks, but the enhancement of in-car entertainment and adoption of autonomous driving do significantly increase the need for 5G. As such, we believe the evolution of automobiles and changes in related industries will benefit the telecom and 5G sectors by gradually expanding the subscriber base to individual vehicles. In addition, we think media companies could benefit even more than telecom companies. In-car content consumption will likely be led by over-the-top (OTT) services, further opening up new opportunities for media companies.

We favor SKT among telco stocks and Disney among media stocks In terms of the automotive industry’s evolution and the expansion of 5G, we favor SK Telecom (SKT), which remains at the forefront of the 5G market and technology. Among media names, we like Walt Disney. Disney launched its own OTT service Disney+ in November 2019 and this year plans to strengthen its OTT service with more exclusive content. OTT is an attractive tool for Disney to directly distribute its compelling content in the global market. The growing role of in-car entertainment, as highlighted at CES 2020, presents another opportunity for the media company. It will, of course, take quite some time before drivers can fully enjoy content in their vehicles, but the trend is indeed positive to medium- and long-term growth. Another positive is Disney’s potential synergies with Quibi, which took center stage in the media part of CES 2020.

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.

Global Fintech

Korea to introduce MyData and facilitate data convergence and use of big data

Industry Report Expected benefits of latest revisions to Credit Information Act January 13, 2020 On January 9th, the National Assembly passed three data-related bills (revisions to the Personal Information Protection Act, Credit Information Act, and Information and Communications Network Act) in a regular session. The Financial Services Mirae Asset Daewoo Co., Ltd. Commission (FSC) said that revisions will: 1) lay the foundation for the emergence of innovative players in new businesses like MyData (personal credit info management) [Banks/Credit Cards] and non-financial credit bureau (CB); 2) facilitate the use of big data and data convergence by establishing the legal basis for use of big data in the financial sector; Heather Kang +822-3774-1903 3) encourage the creation of customized financial services based on data; and 4) [email protected] promote financial accessibility.

The introduction of MyData, a broad form of open banking

MyData businesses, the introduction of which is set forth in the latest revisions to the Credit Information Act, can be likened to the EU’s General Data Protection Regulation

(GDPR) and Payment Services Directive 2 (PSD2), and to the UK’s open banking policy, in that they all seek to promote the self-determination of individual financial data and ensure the right to data portability. MyData operators will be allowed to provide individuals with 1) one-stop access to their account and credit data, 2) financial status analysis, 3) credit management and data management assistance, and 4) personalized financial product information and recommendations.

Implication: Acceleration of digital transformation, more collaboration between financial and fintech firms, and increased competition to become the no. 1 financial platform The latest revisions are positive to credit card companies, as they provide them with a new income model (individual business CB) and make it easier to distribute data.

Facilitation of the use of big data and data convergence should accelerate the digital transformation of the financial sector. Financial companies will likely need to develop more aggressive channel strategies and step up efforts to strengthen platform competitiveness. Collaboration with competitive platform operators or fintech firms will likely continue to grow. As platform providers and fintech firms look to move beyond providing one-stop account access as an aggregator and become more comprehensive financial platforms, competition is likely to intensify. When it comes to open banking and MyData, the key thing to watch is which operators will obtain customer consent first and become the primary app (operator) for users. In this sense, we think NAVER Financial and Pay, which are owned by two of Korea’s biggest tech companies, NAVER (035420 KS) and Kakao (035720 KS), are competitively positioned.

As illustrated by the examples of Tencent (700 HK) and Alibaba’s (BABA US) Ant Financial, we believe that: 1) new, data-based financial offerings will increase; 2) big tech will become more prominent in the financial sector, especially among millennials and mass customers; and 3) the move to non-face-to-face channels will gather pace.

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.

January 13, 2020 Global Fintech

Credit Information Act revisions aimed at promoting data economy

According to the FSC, the revised Credit Information Act (Credit Information Use and Protection Act) will be enforced six months after its promulgation; thus, if the revisions are made public in January 2020, they will take effect in July 2020. However, some provisions that may take time for the financial industry to implement (e.g., mandatory API adoption by all financial institutions and public agencies, the enhancement of consent forms for using personal data, and the introduction of a continued monitoring system for the financial industry’s data use and management) may be enforced 12 to 18 months after promulgation, depending on the industry’s readiness.

Establishing legal basis for the analysis and use of big data: “Pseudonymous data,” or data that have been de-identified, may be used without consent for the purpose of statistical analysis (including commercial uses), research (including industry research), and public records. The revised bill establishes the legal basis for data convergence, but permits it only through government-designated institutions. Safety and control measures for the use and convergence of pseudonymous data have also been put in place.

Overhauling CB industry regulatory framework: The CB industry will be categorized into consumer CB, individual business CB, and corporate CB. Regulatory requirements for entry into the CB business will be lowered. 1) Non-financial data CB, which uses non-financial data such as utilities and telecom payments to rate credit, will be newly established as a subcategory of the consumer CB business. 2) Individual business CB will also be newly established to develop a credit rating system specializing in individual businesses, and credit card companies will be allowed to enter this category. The current regulation restricting CBs from engaging in for-profit businesses outside the credit business will be lifted, allowing CBs to carry out various operations, such as data analysis/processing and consulting.

Introducing MyData businesses in the financial sector: MyData businesses, which provide services like one-stop data access and credit/asset management, will be introduced. Based on the data collected, MyData operators can assist with personal data management, recommend personalized products, and offer financial advisory services. To encourage the entry of fintech firms, the minimum capital requirement has been set at W500mn, and no investment from financial companies will be required.

Other key provisions of the revised bill include strengthening the role of the Personal Information Protection Commission and increasing personal data protection in the financial sector.

With the latest revisions, the government will take a number of follow-up actions, including establishing a data exchange where buyers and sellers can trade de-identified data and corporate data to facilitate data distribution. (In addition to financial companies, commercial companies in the telecom and retail industries will be allowed to participate.)

Mirae Asset Daewoo Research 2

Mirae Asset Daewoo Research Key Universe Valuations January 13, 2020

※All data as of close January 09, 2020, unless otherwise noted.

19F Earnings growth Mkt Cap Price P/E (x) P/B (x) ROE (%) Ticker Company Div Yield OP EPS (Wbn) (W) (%) 19F 20F 19F 20F 19F 20F 19F 20F 19F 20F 005930 355,202 59,500 2.4 -53.2 41.0 -46.6 37.2 18.5 13.5 1.5 1.4 8.7 11.1 000660 SK Hynix 71,999 98,900 1.5 -64.8 -3.0 -61.6 -3.2 12.1 12.5 1.3 1.2 12.1 10.6 035420 NAVER 30,985 188,000 0.2 -17.8 77.0 -47.3 132.4 90.7 39.0 4.5 4.1 6.3 13.4 005380 Hyundai Motor 24,251 113,500 3.5 49.6 41.9 118.5 48.0 9.7 6.6 0.4 0.4 4.7 6.6 012330 23,302 244,500 2.0 17.9 16.4 24.3 17.1 10.1 8.7 0.7 0.7 7.3 7.9 051910 LG Chem 22,943 325,000 1.2 -55.7 70.9 -72.5 164.0 62.8 23.8 1.5 1.4 2.4 6.1 068270 22,780 177,500 - - - - 0.0 0.0 051900 LG H&H 20,975 1,343,000 0.8 11.7 13.9 15.2 15.2 26.7 23.1 5.7 4.9 20.1 19.6 005490 POSCO 20,707 237,500 4.6 -23.9 -9.2 37.8 -0.3 8.9 8.9 0.4 0.4 5.3 5.1 028260 Samsung C&T 20,297 107,000 1.9 -27.7 39.8 -42.8 17.9 20.9 17.7 0.7 0.6 4.0 3.9 055550 19,608 41,350 12.3 3.9 10.0 -0.2 5.6 5.7 0.5 0.5 9.1 8.4 105560 KB Financial Group 19,460 46,800 9.3 2.3 12.6 0.9 5.7 5.6 0.5 0.5 9.2 8.5 017670 SK Telecom 18,652 231,000 4.3 7.3 -3.5 -60.6 68.2 15.1 9.0 0.7 0.7 5.4 8.8 034730 SK Holdings 17,309 246,000 2.0 -2.8 21.5 -36.6 11.0 12.2 11.0 0.9 0.8 8.2 8.3 015760 KEPCO 17,140 26,700 - - - - - 139.8 0.3 0.3 - 0.2 006400 Samsung SDI 17,122 249,000 0.4 -33.6 89.7 -37.7 75.8 40.1 22.8 1.4 1.3 3.6 5.9 000270 Kia Motors 16,377 40,400 2.2 70.4 29.1 79.8 24.5 7.9 6.3 0.6 0.5 7.4 8.5 018260 Samsung SDS 15,166 196,000 1.3 10.4 12.3 10.3 11.8 21.9 19.5 2.3 2.1 11.1 11.3 032830 Samsung Life 14,440 72,200 - - - - 0.0 0.0 035720 Kakao 14,227 165,000 0.1 179.1 115.5 220.9 96.5 83.9 42.7 2.7 2.5 3.2 6.1 036570 NCsoft 13,348 608,000 1.0 6.0 76.9 33.5 52.9 23.9 15.6 4.1 3.4 21.6 27.0 033780 KT&G 13,002 94,700 4.4 12.8 5.6 17.5 5.1 12.3 11.7 1.5 1.4 12.7 12.6 090430 AmorePacific 12,890 220,500 0.5 -8.4 18.7 -0.9 19.1 39.2 32.9 3.3 3.0 7.2 8.1 096770 SK Innovation 12,760 138,000 4.6 -42.8 18.2 -68.7 92.4 25.0 13.0 0.7 0.7 2.8 5.4 003550 LG Corp. 12,096 70,100 3.6 -28.0 45.0 -18.4 16.8 8.1 6.9 0.6 0.6 8.1 8.9 066570 LG Electronics 10,932 66,800 1.1 -6.4 13.9 -42.2 106.7 16.8 8.2 0.8 0.7 4.9 9.4 000810 Samsung F&M 10,849 229,000 - - - - 0.0 0.0 086790 10,493 34,950 4.6 2.7 14.8 -6.2 4.1 4.3 0.4 0.3 9.2 8.1 009150 Samsung Electro-Mechanics 9,897 132,500 0.8 -30.5 18.6 -39.3 60.9 25.8 16.0 1.8 1.6 7.6 10.7 010950 S-Oil 9,817 87,200 0.3 -13.3 197.8 -54.2 948.9 86.1 8.2 1.5 1.3 1.8 17.3 009540 KSOE 9,271 131,000 - 88.1 - -39.1 37.8 62.0 0.8 0.8 2.1 1.3 010130 Korea Zinc 7,954 421,500 2.6 12.2 15.7 25.4 9.3 12.0 11.0 1.2 1.1 10.2 10.3 251270 7,691 89,700 1.8 57.7 14.5 36.9 35.2 25.7 1.6 1.5 4.9 6.3 091990 Celltrion Healthcare 7,427 51,600 - 144.5 435.7 165.0 121.2 45.7 4.1 3.9 3.7 9.3 011170 Lotte Chemical 6,992 204,000 5.1 -46.0 12.7 -54.7 32.3 9.8 7.4 0.5 0.5 5.5 6.9 030200 KT 6,802 26,050 4.2 -2.4 -1.1 -7.8 21.0 10.7 8.9 0.5 0.4 4.7 5.5 024110 6,406 11,100 0.6 -0.8 -1.0 -2.3 4.2 4.3 0.3 0.3 8.0 7.3 018880 Hanon Systems 5,845 10,950 - - - - 0.0 0.0 032640 LG Uplus 5,720 13,100 5.0 -11.8 10.9 -16.7 15.0 14.3 12.4 0.8 0.8 5.8 6.4 034220 LG Display 5,689 15,900 ------0.4 0.5 - - 267250 5,261 323,000 5.7 -1.6 92.1 74.3 199.2 11.2 3.8 0.6 0.6 6.0 16.5 Holdings 086280 5,194 138,500 2.4 21.0 2.9 4.6 29.7 11.3 8.8 1.1 1.0 10.2 12.0 010140 4,694 7,450 - - - - - 47.5 0.7 0.7 - 1.7 029780 Samsung Card 4,397 37,950 11.7 -28.6 1.7 6.8 12.5 11.7 0.6 0.6 1.5 1.6 000720 Hyundai E&C 4,321 38,800 1.3 12.4 10.9 42.6 -6.7 7.9 8.5 0.6 0.6 8.3 7.3 271560 Orion 4,171 105,500 0.6 14.2 7.7 56.5 9.1 19.1 17.5 2.5 2.3 14.4 13.7 008770 4,023 102,500 0.3 22.5 20.6 33.9 28.6 27.8 21.6 4.1 3.5 17.7 19.2 071050 Korea Investment Holdings 3,856 69,200 - - - - 0.0 0.0 004020 Hyundai Steel 3,843 28,800 2.6 -53.6 23.0 -97.9 2611.5 460.2 17.0 0.2 0.2 0.0 1.3 028050 3,783 19,300 102.6 8.0 373.7 -1.2 11.6 11.8 2.7 2.2 26.7 20.9 Source: Mirae Asset Daewoo Research

Mirae Asset Daewoo Research Market Data January 13, 2020

※All data as of close January 10, 2020, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 476.01 13.48 2.91 0.53 USD/KRW 1,160.00 1,174.10 1,189.30 1,121.60 KOSPI 2,206.39 19.94 0.91 1.44 JPY100/KRW 1,059.60 1,076.12 1,095.37 1,036.89 KOSDAQ 673.03 6.94 1.04 -0.15 EUR/KRW 1,288.47 1,304.25 1,315.90 1,295.34 Dow Jones* 28,956.90 211.81 0.74 1.47 3Y Treasury 1.43 1.42 1.39 1.80 S&P 500* 3,274.70 21.65 0.67 0.52 3Y Corporate 1.99 1.98 1.95 2.26 NASDAQ* 9,203.43 74.19 0.81 1.22 DDR4 8Gb* 3.16 3.15 2.74 6.12 Philadelphia Semicon* 1,878.73 11.14 0.60 -0.49 NAND MLC 64G* 2.44 2.43 2.35 2.66 FTSE 100* 7,598.12 23.19 0.31 -0.08 Oil (Dubai)* 66.17 69.24 63.74 58.07 Nikkei 225 23,850.57 110.70 0.47 2.78 Gold* 1,554.30 1,560.20 1,459.30 1,292.00 Hang Seng* 28,561.00 473.08 1.68 0.06 Customer deposits (Wbn)* 28,154 26,914 23,585 23,085 Taiwan (Weighted) 12,024.65 54.02 0.45 -0.63 Equity type BC (Wbn)(Jan. 8) 87,726 87,944 81,544 85,185 Note: * as of January 09, 2020 Source: KSDA, FnGuide, DRAMeXchange, MSCI

KOSPI Top 10 Foreign Net Buy / Net Sell (Wbn) KOSPI Top 10 Institutional Net Buy / Net Sell (Wbn) Net Buy Net Sell Net Buy Net Sell KODEX 200 TR 119.80 KODEX 200 119.22 KODEX 200 123.16 Samsung Electronics 174.67 Samsung Electronics 96.63 Samsung Electronics (P) 28.17 Samsung SDI 55.39 KODEX 200 TR 119.81 LG Chem 54.62 Hyundai Motor 11.14 LG Chem 29.20 Hynix 38.43 Samsung SDI 52.90 Kia Motors 9.59 KODEX Leverage 27.11 SK Telecom 20.13 20.90 SK Energy 7.78 Posco Chemtech 17.26 POSCO 13.15 NAVER 19.61 Dentium 7.17 KODEX Kosdaq150 Leverage 13.27 NAVER 11.96 Hotel Shilla 15.48 Celltrion 7.06 NHN 11.26 SK Energy 10.32 POSCO 15.15 LG Electronics 6.59 Samsung Biologics 7.63 LG Corp. 10.15 Kakao 12.98 Shinhan Financial Group 6.53 SamwhaCapacitor 6.31 Samsung F&M Insurance 9.29 KT&G 12.42 KODEX Leverage 5.64 Hanwha Chemical 6.00 emart 9.13 Source: KSDA, FnGuide

KOSDAQ Top 10 Foreign Net Buy / Net Sell (Wbn) KOSDAQ Top 10 Institutional Net Buy / Net Sell (Wbn) Net Buy Net Sell Net Buy Net Sell Soulbrain 4.32 HLB 13.43 Paradise 7.97 CJ ENM 5.10 Paradise 3.45 Kukil Paper 9.87 ECOPROBM 4.84 SM 4.92 KINX 2.73 SFA Semicon 6.03 Chunbo 4.65 SK Materials 4.78 ViroMed 2.63 UniTest 5.13 Wemade 4.42 TESNA 3.80 Daejoo Electronic Materials 2.56 Energy Solutions 5.11 GemVax 3.49 BH,LTD. 3.51 PearlAbyss 2.30 S&STECH 4.08 2.77 ABL Bio 3.24 KMW 2.11 Dongjin Semichem 3.64 NHN KCP 2.70 HLB 2.99 NHN KCP 2.08 FST 3.50 Korea Information Service 2.11 Celltrion Healthcare 2.09 Emerson Pacific 1.82 Wonik IPS 3.38 Aptabio 2.05 KH Vatec 2.08 SFA Engineering 1.80 Mezzion Pharma 3.19 GMP 1.95 Modetour Network 1.94 Source: KSDA, FnGuide

KOSPI Top 10 by Market Cap (Wbn) KOSDAQ Top 10 by Market Cap (Wbn) Close (W) Chg (W) Mkt Cap Close (W) Chg (W) Mkt Cap Samsung Electronics 59,500 900 355,202 Celltrion Healthcare 51,600 800 7,427 Hynix 98,900 -100 71,999 HLB 112,600 100 4,812 Samsung Electronics (P) 48,550 150 39,951 CJ ENM 151,400 -2,600 3,320 NAVER 188,000 2,000 30,985 PearlAbyss 191,500 5,400 2,494 Samsung Biologics 436,500 16,500 28,881 Studio Dragon 84,400 1,800 2,371 Hyundai Motor 113,500 2,000 24,251 KMW 56,400 800 2,246 Hyundai Mobis 244,500 -500 23,302 Medy-tox 344,500 14,700 2,003 LG Chem 325,000 18,500 22,943 ViroMed 91,500 500 1,959 Celltrion 177,500 500 22,780 Paradise 21,150 750 1,923 LG Household & Health Care 1,343,000 19,000 20,975 SK Materials 174,500 -3,200 1,841 Source: Korea Exchange