November 24, 2014

KOREA

Company News & Analysis Major Indices Close Chg Chg (%) SM Entertainment (041510/Buy/TP: W46,000) Lower TP KOSPI 1,978.54 13.70 0.70 Leaving the worst behind KOSPI 200 252.34 2.44 0.98 KOSDAQ 541.93 -2.05 -0.38

Sector News & Analysis Turnover ('000 shares, Wbn) Securities (Overweight) Volume Value KOSPI 322,592 5,477 Investing in brokerages from an ROIC perspective KOSPI 200 94,084 4,227 Steel/Non-ferrous metals (Overweight/Neutral) KOSDAQ 350,825 2,082 China's rate cuts offer nothing more than short-term relief Market Cap (Wbn) Value KOSPI 1,212,362 KOSDAQ 140,488

KOSPI Turnover (Wbn) Buy Sell Net Foreign 1,659 1,314 345 Institutional 1,349 1,258 91 Retail 2,420 2,863 -443

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 131 153 -23 Institutional 88 134 -46 Retail 1,859 1,789 70

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 1,212 875 338 KOSDAQ 25 22 3

Advances & Declines Advances Declines Unchanged KOSPI 430 388 67 KOSDAQ 406 541 75

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value SAMSUNG SDS 404,000 4,000 374 KODEX LEVERAGE 10,875 215 312 Samsung Electronics 1,220,000 -3,000 251 Halla Climate Control 42,000 -5,500 209 SK Energy 98,500 9,600 182

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Com2us 147,100 4,500 174 Gamevil 164,200 21,400 112 Daum Communications 144,400 2,000 92 Bosung Power Tec 4,940 65 82 PATI Games 34,350 4,450 39 Note: As of November 24, 2014

This document is a summary of a report prepared by Daewoo Securities Co., Ltd. (“Daewoo”) and published on our website. Please review the compliance notices contained in the original report. Information and opinions contained herein have been compiled in good faith from sources deemed to be reliable. However, the information has not been independently verified. Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy or completeness of the information and opinions contained in this document. Daewoo accepts no responsibility or liability whatsoever for any loss arising from the use of this document or its contents or otherwise arising in connection therewith. Information and opinions contained herein are subject to change without notice. This document is for informational purposes only. It is not and should not be construed as an offer or solicitation of an offer to purchase or sell any securities or other financial instruments. This document may not be reproduced, further distributed or published in whole or in part for any purpose.

SM Entertainment (041510 KQ) Leaving the worst behind

Entertainment 3Q review: OP of W14.2bn, hurt by 18% YoY fall in yen SM Entertainment reported 3Q consolidated revenue and operating profit of W78.6bn Results Comment (-4.3% YoY) and W14.2bn (-4.7% YoY), respectively. November 24, 2014 Japan revenue contribution fell materially due to 1) yen depreciation and 2) royalty income from TVXQ’s concert performances being deferred to 4Q. From 1Q14 to 3Q14, Japan accounted for 21.7% of non-consolidated revenue, down sharply from 46.7% in (Maintain) Buy 2012.

Target Price (12M, W) 46,000 TVXQ’s Japan concert royalties to be recognized in 4Q Despite worries, SM Entertainment artists are c ontinuing to expand their presence in Share Price (11/21/14, W) 33,150 Japan. We expect the company to book royalties from TVXQ’s Japan concerts ( held in April with 650,000 attendees) in 4Q. For the full year, we estimate S M Entertainment Expected Return 39% artists to attract 1.82mn concertgoers in Japan, u p from 1.56mn in 2013 and 900,000 in 2012. For 4Q, we forecast consolidated revenue of W73.6bn and operating profit of OP (14F, Wbn) 36 W11.9bn. Consensus OP (14F, Wbn) 46 Retain Buy, but Cut TP to W46,000 EPS Growth (14F, %) -18.8 2014 is shaping up to be one of SM Entertainment’s worst years, marred by the exit of Market EPS Growth (14F, %) 1.4 two EXO members, the scandal involving Girls’ Generation member Jessica, P/E (14F, x) 44.7 unprecedented yen depreciation, and a huge tax fine. Market P/E (14F, x) 12.9 KOSDAQ 543.98 Despite these negative events, the 3Q earnings report showed that 1) domestic and overseas concerts, album releases, and management activities remain on track, and 2) Market Cap (Wbn) 684 EXO, despite having no prior presence in Japan, has already had three sold-out concerts Shares Outstanding (mn) 21 in the country (a total of nine are scheduled by year-end). Free Float (%) 78.2 Foreign Ownership (%) 10.6 Although the entertainment industry by nature is highly unpredictable, we could see Beta (12M) 1.73 several positive catalysts in 2015, including a potential strategic partnership (similar to 52-Week Low 24,450 YG Entertainment’s alliance with LVMH) that could take SM’s global business to the next 52-Week High 53,200 level. It is widely believed the company has already received a number of offers from (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M global media, telecom, and internet companies. We also think the company’s China Absolute 6.8 -27.5 -19.6 business could gather steam in 2015, as a drama coproduction is set for early in the Relative 9.4 -27.2 -26.0 year, and more detailed schedules for artist ventures are emerging. Furthermore, the company’s new business initiatives, such as the mobile game SuperStar SMTOWN and

150 SM Entertainment KOSDAQ the musical theater COEX Artium (which opens on December 20th) could do surprisingly 130 well. 110

90 That said, we reduced our 2014F-15F EPS by 19.1% and 20.3%, resp ectively, in light of

70 1) the impact of yen depreciation confirmed in the 3Q earnings report, and 2) delays in the company’s expansion in China. As such, we lower our target price by 20% to 50 11.13 3.14 7.14 11.14 W46,000 (from W58,000), but keep our Buy rating intact.

Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/11 12/12 12/13 12/14F 12/15F 12/16F Revenue (Wbn) 143 241 269 281 309 338 [Internet/Game/Entertainment] OP (Wbn) 26 61 41 36 47 53

Chang-kwean Kim OP margin (%) 18.2 25.3 15.2 12.8 15.2 15.7 +822-768-4321 NP (Wbn) 23 40 19 15 42 46 [email protected] EPS (W) 1,228 1,994 913 741 2,043 2,214 ROE (%) 20.6 24.7 8.5 6.4 15.8 14.7 Jeong-yeob Park +822-768-4124 P/E (x) 33.2 22.8 48.4 44.7 16.2 15.0 [email protected] P/B (x) 6.9 4.4 3.9 2.7 2.3 2.0 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. PLEASEPLEASEPLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSUREDISCLOSURESS & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.REPORT.

Securities Investing in brokerages from an ROIC perspective

ROIC down cycle comes to an end Overweight (Maintain) Although the state of the securities sector is still far from ideal, positive changes are unfolding rapidly. For years, brokerage stocks have declined in line with the fall in the Outlook Report industry’s return on invested capital (ROIC). However, as firms began reduci ng their invested capital (equity and human capital), ROIC has been picking up since 2014, and November 20, 2014 should continue to do so in 2015. We expect profit growth of around 20% in 2015, although our figure could change depending on the IPO of Korea Exchange (KRX).

Daewoo Securities Co.,Co., Ltd. Daewoo Securities CCo., Ltd. () = [Securities/Insurance] () + ()

Gil-won Jeong +822-768-3256 Based on the simple formula above, we believe that once the reduction of human capital [email protected] has been fully exhausted, the only way for brokerage firms to raise their ROIC will be to

Ju-hyun Kim either scale back their equity capital or increase their net revenue. The former depends on +822-768-4149 whether the firm can repurchase shares or increase its dividend payout, while the latter [email protected] dep ends on whether the firm can improve its traditional businesses, or find new

opportunities by leveraging its equity.

In the end, capitalizing on low interest rates and policy trends is key Encouragingly, the industry environment is becoming increasingly favorable to brokerages’ net revenue. Here, we highlight an example to illustrate our point. An investor can currently get a loan from a commercial bank at an interest rate of 4%. If the investor were to invest the money in an ELS with Samsung Life and Sam sung F&M as its underlying assets, the investor could expect an 8% rate of return. Samsung Life and Samsung F&M both have equity capital two to three times the regulatory requirement. With industry growth stalling, the insurers are likely to spend their ca pital on dividends and share repurchases, which should support their share prices. If share prices were to plummet 50% within the next three years, the investor would suffer a capital loss, but we believe the risk/reward tradeoff is still attractive.

The above example demonstrates how investors’ search for better alternatives in a low- interest-rate environment presents an immense opportunity for the brokerage industry. In addition, the policy landscape also looks supportive, not only from an interest rate perspective, but also at the industry level. The government’s dividend-boosting measures, promotion of retirement plans, and introduction of individual savings accounts (ISA) are likely to broaden the demand base, while the integration of banking and brok erage branches and revision of the Door-to-Door Sales Act (DDSA), should expand distribution channels. Over the long term, capturing these opportunities will require more capital, which should be freed up by changes in net capital ratio (NCR) rules.

Use a barbell strategy; Top picks: Samsung Securities, KIH, & Kiwoom Securities We recommend a barbell strategy, using industry leaders with the highest profit stability as the anchor on one end, and on the other, switching between stocks as events warrant.

For anchor stocks, we recommend Samsung Securities and Korea Investment Holdings (KIH). Samsung Securities has been most aggressive in reducing labor costs, the effects of which should become more visible in 2015. Furthermore, we exp ect the firm’s equity capital to decline on share repurchases. Meanwhile, KIH has the strongest cost control ability among large brokerage firms thanks to its unique ownership structure. This, combined with the firm’s relatively low equity capital, make it better-positioned to raise ROIC in 2015. At the other end of the barbell, we suggest an event-driven approach, adding exposure to 1) stocks that could undergo further restructuring via M&As, or 2) stocks that stand to benefit from specific policy events, such as the KRX IPO or eased limits on daily stock-price movements.

We maintain our Overweight stance on Securities, and continue to recommend Samsung Securities, KIH, and Kiwoom Securities as our top picks.

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.

Steel/Non -ferrous metals (Overweight/Neutral (Maintain))

China’s rate cuts offer nothing more than Steel short -term relief ¢ China’s interest rate cuts are positive in the short term, but not in the medium to long News Comment term November 24, 2014 ¢ The latest moves could ease destocking pressures in the near term, but also could stall the pace of restructuring

¢ Focus on POSCO, which has short-term upside potential, but less risk of subsequent Daewoo Securities CCo.,o., Ltd. correction

[Steel/Non-ferrous metals]

Seung-hun Jeon China’s first interest rate cuts in more than two years +822-768-2713 [email protected] The People’s Bank of China (PBOC) lowered the benchmark deposit and loan rates for the first time in more than two years. Although we had expected China to reduce rates, as real interest

rates were at their highest levels since 2008, the latest cuts came earlier than we anticipated.

(Our projection was sometime in 1H15.)

The PBOC cut the deposit rate by 25bps and the loan rate by 40bps. The latter cut was much sharper than the previous cuts made in June and July 2012, when the loan rate was lowered by 25bps and 31bps, respectively. (The deposit rate was lowered by 25bps each time.) This suggests that the latest move is more aimed at alleviating financial pressures on corporations and local governments than at boosting consumption.

In addition, the PBOC made clear in its statement that the rate cuts do not mean it intends to introduce aggressive stimulus measures. We thus believe the latest move is more intended to tame the pace of the slowdowns in both growth and inflation.

China’s rate cuts are positive in the short term, but not in the medium/long term

China’s surprise rate cuts sent steel stocks in the US and Europe soaring on November 21 st , a common pattern after China’s interest rate events. We expect Korean steel shares to follow suit, but caution that the rate cuts offer nothing more than short-term relief.

In the near term, lower interest rates are positive because they should ease the rapid inventory adjustments taking place amid restructuring and financial pressures, hence slowing the pace of the steel market’s deterioration. Our analysis suggests China’s apparent steel consumption grew just 1% in 2014, with inventory reductions dragging down demand growth by 0.8%p.

However, the latest rate cuts are unlikely to prove positive over the medium and long term. First, the rate cuts indicate that China is not strong enough to withstand aggressive restructuring, which in turn suggests that the pace of restructuring will stall. In the past, China’s rate reductions served as short-term boosts to Korea’s steel and non-ferrous metal industries, but eventually caused share prices to decline over the medium to long term.

Recommend positioning for a near-term rebound and subsequent retreat

We believe investors should position themselves for a short-term rebound in share prices and a subsequent retreat. As such, we advise focusing on stocks that can benefit from other positives aside from a temporary market pickup (i.e., inexpensive valuation and internal changes), which will make them less vulnerable to downside risks in the medium and long term. In this light, we recommend POSCO as our top pick.

Key Universe Valuations November 24, 2014

※All data as of close November 21, 2014, 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 005380 Hyundai Motor 37,777 171,500 1.3 1.9 6.2 3.7 7.1 6.0 5.6 0.7 0.6 13.0 12.4 018260 Samsung SDS 31,261 404,000 0.1 39.5 8.9 29.9 10.0 57.2 52.0 6.8 6.1 11.7 11.5 015760 KEPCO 28,118 43,800 2.3 12.6 9.7 224.9 -55.8 3.4 7.7 0.5 0.4 14.6 5.9 005490 POSCO 27,769 318,500 2.5 26.2 14.5 98.6 20.4 11.2 9.3 0.6 0.6 5.7 6.6 035420 NAVER 24,722 750,000 0.1 38.9 30.3 61.7 34.6 32.3 24.0 7.5 5.7 33.3 32.5 055550 Shinhan Financial Group 23,663 49,900 - - - - 0.0 0.0 012330 Hyundai Mobis 23,606 242,500 0.9 11.4 8.8 11.8 6.6 5.9 5.6 0.9 0.8 15.8 14.6 032830 Samsung Life 23,600 118,000 - - - - 0.0 0.0 017670 SK Telecom 22,770 282,000 3.5 15.8 7.5 13.9 8.0 10.9 10.1 1.3 1.2 13.8 13.6 000270 Kia Motors 22,660 55,900 1.6 19.5 10.2 12.9 7.7 5.7 5.3 0.8 0.7 15.9 14.8 105560 KB Financial Group 15,396 39,850 - - - - 0.0 0.0 051910 LG Chem 14,513 219,000 1.8 19.7 35.2 29.2 36.2 12.7 9.3 1.2 1.1 10.1 12.5 000810 Samsung F&M 14,331 302,500 - - - - 0.0 0.0 090430 Amorepacific 13,358 2,285,000 0.3 16.0 22.1 16.7 23.0 32.7 26.6 4.7 4.1 15.5 16.4 033780 KT&G 13,029 94,900 3.5 1.0 2.4 3.3 -1.5 15.4 15.6 2.0 1.9 14.4 13.2 034220 LG Display 12,488 34,900 -7.6 23.2 -17.5 32.3 14.5 10.9 1.0 0.9 7.2 8.8 003550 LG Corp. 11,665 67,600 1.5 18.0 4.2 18.5 5.9 9.5 8.9 0.9 0.8 9.4 9.2 000830 Samsung C&T 10,842 69,400 0.9 26.7 6.4 41.7 6.8 17.3 16.2 0.9 0.9 5.7 5.8 066570 LG Electronics 10,833 66,200 0.6 18.2 25.4 68.7 26.5 9.9 7.8 0.9 0.8 9.5 10.9 034730 SK C&C 10,450 209,000 0.6 9.9 19.7 15.8 -56.6 19.7 45.5 2.8 2.7 17.6 6.9 086280 Hyundai Glovis 10,275 274,000 0.5 12.2 12.2 1.7 10.3 17.1 15.5 3.0 2.6 19.3 17.9 009540 Hyundai Heavy Industries 10,222 134,500 1.5 - 103.3 - 118.1 24.5 11.2 0.6 0.6 2.7 5.6 086790 Hana Financial Group 10,074 34,750 - - - - 0.0 0.0 023530 Lotte Shopping 9,542 303,000 0.5 8.3 6.0 15.3 7.3 10.6 9.9 0.5 0.5 5.2 5.3 051900 LG Household & Health Care 9,465 606,000 0.7 18.8 12.2 20.0 14.6 25.8 22.5 5.1 4.3 22.3 21.2 006400 Samsung SDI 9,111 132,500 1.2 - 71.5 143.2 52.1 33.7 22.2 1.2 1.1 3.5 5.1 096770 SK Innovation 9,108 98,500 3.2 198.4 35.4 - 35.5 12.3 9.1 0.6 0.6 4.8 6.2 030200 KT 8,682 33,250 3.0 - 7.2 - 33.0 16.0 12.1 0.7 0.7 4.9 6.3 024110 Industrial Bank of Korea 8,398 15,200 - - - - 0.0 0.0 003600 SK Holdings 8,312 177,000 1.4 29.8 6.2 34.0 -3.9 5.9 6.1 0.6 0.5 10.9 9.5 010130 Korea Zinc 8,190 434,000 1.2 15.6 5.5 21.5 6.2 13.6 12.8 1.6 1.4 12.5 11.9 035720 Daum Communications 8,168 144,400 0.8 226.9 35.3 144.0 39.4 33.4 24.0 10.5 7.8 37.2 38.4 004020 Hyundai Steel 7,925 68,000 0.7 -0.5 8.0 1.0 17.7 10.0 8.5 0.5 0.5 5.6 6.2 088350 Hanwha Life 7,374 8,490 - - - - 0.0 0.0 035250 Kangwon Land 7,092 33,150 3.3 7.2 5.3 12.1 7.1 16.1 15.0 2.2 2.1 15.3 15.1 161390 Hankook Tire 6,528 52,700 0.9 7.0 9.0 13.2 10.1 7.8 7.1 1.2 1.1 17.1 16.1 021240 Coway 6,455 83,700 2.4 14.4 13.6 14.3 17.3 21.9 18.6 4.8 4.2 26.0 26.3 011170 Lotte Chemical 6,358 185,500 0.5 65.2 25.9 76.9 29.2 12.3 9.5 0.9 0.8 7.7 9.2 139480 Emart 6,077 218,000 0.7 12.4 9.7 18.1 13.8 11.7 10.3 0.8 0.7 7.0 7.3 001800 Orion 5,688 952,000 0.3 3.6 17.5 12.4 18.5 32.0 27.0 4.1 3.6 13.6 14.2 010140 Samsung Heavy Industries 5,622 24,350 2.1 152.4 4.2 128.4 6.0 9.5 8.9 0.8 0.7 9.5 9.3 002380 KCC 5,481 521,000 1.5 7.9 11.4 10.2 12.3 19.4 17.3 1.0 1.0 5.4 5.8 000720 Hyundai E&C 5,384 48,350 1.2 19.8 5.1 38.8 9.6 8.1 7.4 0.9 0.8 11.6 11.4 010950 S-Oil 5,291 47,000 2.9 - 62.4 - 62.4 15.6 9.6 1.0 0.9 6.6 10.0 036460 Korea Gas 5,280 57,200 1.7 19.1 8.4 0.1 21.8 10.7 8.8 0.5 0.5 5.0 5.8 011210 Hyundai Wia 5,140 189,000 0.3 20.6 10.4 11.8 10.5 9.6 8.7 1.6 1.4 18.3 17.0 032640 LG Uplus 4,825 11,050 2.0 16.6 3.6 35.9 9.5 14.9 13.6 1.1 1.0 7.5 7.8 000120 CJ Korea Express 4,562 200,000 51.5 14.5 157.1 9.7 29.0 26.4 1.5 1.5 6.7 6.9 097950 CJ CheilJedang 4,454 339,500 0.5 22.3 7.9 118.2 14.7 16.4 14.3 1.5 1.4 9.7 10.2 042660 DSME 4,306 22,500 1.3 27.7 18.4 119.3 30.5 12.5 9.6 0.8 0.8 6.7 8.2 Source: KDB Daewoo Securities Research

Market Data November 24, 2014

※All data as of close November 24, 2014, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 390.62 1.85 0.48 -11.73 USD/KRW 1,110.90 1,113.10 1,055.40 1,061.90 KOSPI 1,978.54 13.70 0.70 0.58 JPY100/KRW 942.00 940.91 975.64 1,049.57 KOSDAQ 541.93 -2.05 -0.38 9.20 EUR/KRW 1,374.07 1,395.83 1,335.08 1,431.18 Dow Jones* 17,810.06 91.06 0.51 8.32 3Y Treasury 2.12 2.16 2.21 2.95 S&P 500* 2,063.50 10.75 0.52 12.64 3Y Corporate 2.44 2.48 2.55 3.38 NASDAQ* 4,712.97 11.10 0.24 13.76 DDR2 1Gb* 1.38 1.38 1.41 1.49 Philadelphia Semicon* 662.95 6.68 1.02 25.62 NAND 16Gb* 2.30 2.30 2.40 3.52 FTSE 100* 6,750.76 71.86 1.08 0.49 Oil (Dubai)* 75.84 73.60 84.27 105.99 Nikkei 225 17357.51 56.65 0.33 9.11 Gold* 1,197.70 1,190.90 1,251.00 1,243.60 Hang Seng* 23,437.12 87.48 0.37 0.42 Customer deposits (Wbn)* 15,195 15,979 15,479 14,556 Taiwan (Weighted) 9,122.33 30.80 0.34 5.92 Equity type BC (Wbn)(Nov. 20) 79,129 79,185 77,574 83,923 Note: * as of November 21, 2014 Source: KSDA, Wisefn, DRAMeXchange, MSCI

KOSPI Top 10 Foreign Net Buy / Net Sell (Wbn) KOSPI Top 10 Institutional Net Buy / Net Sell (Wbn) Net Buy Net Sell Net Buy Net Sell SAMSUNG SDS 154.72 Samsung Electronics 35.69 KODEX LEVERAGE 125.36 SAMSUNG SDS 85.77 Halla Climate Control 48.94 POSCO 24.40 POSCO 64.82 Halla Climate Control 61.00 Hyundai Motor 23.99 SK C&C 10.57 SK Energy 62.77 NHN 54.27 Hynix 19.91 Kia Motors 8.51 S-Oil 41.41 KEPCO 48.86 LG Household & Health Care 19.44 Hyundai Motor (2P) 7.73 Honam Petrochemical 34.40 LG Household & Health Care 19.40 Hyundai Mobis 19.14 KODEX 200 7.14 Hyundai Heavy Industries 30.64 Samsung Life Insurance 17.79 NHN 15.25 Samsung Corp. 6.66 DSME 28.44 SK C&C 13.90 LG Chem 8.79 OCI 6.59 Samsung Electronics 27.37 Glovis 12.99 Shinhan Financial Group 7.92 LG Electronics 5.59 LG Chem 24.30 KT 10.28 LG Display 7.83 TIGER200 5.46 DHICO 18.07 KODEX INVERSE 9.39 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 Daum Communications 16.92 Com2us 9.12 Partrion 3.77 Daum Communications 8.45 Dongsuh 1.92 NaturalendoTech 4.93 Paradise 3.53 Interpark INT 7.06 Medy-tox 1.86 Paradise 2.73 Seoul Semiconductor 2.87 SEEGENE 5.74 EO Technics 1.59 Celltrion 2.73 Com2us 2.29 PATI Games 3.65 GS Home Shopping 1.23 GOLFZON 2.37 Easy Bio System 1.85 3.55 Vieworks 1.05 Bio Space 2.10 GOLFZON 1.67 EO Technics 2.97 HANA Micron 1.02 Value Added Technology 1.88 Leeno 0.86 Medy-tox 2.35 CJ O Shopping 0.94 Access Bio 1.85 Modetour Network 0.73 KH Vatec 2.13 Partrion 0.92 Easy Bio System 1.69 The Leadcorp.Inc. 0.71 Spigen Korea 1.77 Lumens 0.79 Digital Chosun 1.67 YG Entertainment 0.62 i-SENS 1.76 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 1,220,000 -3,000 179,705 Daum Communications 144,400 2,000 8,168 Hyundai Motor 171,500 6,500 37,777 Celltrion 40,250 -250 4,169 Hynix 47,100 650 34,289 Paradise 28,450 350 2,587 SAMSUNG SDS 404,000 4,000 31,261 Dongsuh 22,450 -50 2,238 KEPCO 43,800 -1,600 28,118 CJ O Shopping 260,000 4,800 1,614 POSCO 318,500 18,500 27,769 Com2us 147,100 4,500 1,484 NHN 750,000 -13,000 24,722 GS Home Shopping 215,000 1,400 1,411 Shinhan Financial Group 49,900 900 23,663 CJ E&M 36,200 -150 1,402 Hyundai Mobis 242,500 8,000 23,606 Medy-tox 245,000 -6,000 1,386 Samsung Life Insurance 118,000 -2,000 23,600 SK Broadband 4,285 -55 1,268 Source: Korea Exchange