• The symbol of KR is expressed as a mark with the combination of Alphabet K & R: “K”, www.kr.or.kr Management information standing for Korea, “R”, for railway. being focused on the fact that KR is the heart of CEO’s message & Overview of KR Korean railway industry 02 • “R”, standing for rail, symbolizes the image of expanding railway, expressing the vision 01 of Korean railway advancing into global market

Fast, Korea’s top public Fast, Leading the railway industry Safe, KOREA RAIL NETWORK AUTHORITY Safe, Convenient, organization Convenient, with consistent change and Rail Network Rail Network innovation Fast 2014 Railway Investment KRW 7.2 trillion (1.1788 trillion won increase compared to that of last year) CEO’s message “KR is doing its best to construct advanced rail Annual investment of Unit: trillion KRW Safe network for the new era of 8 the Korean railway 7.2 7.2 national happiness and hope” 7 Structure of railway industry 6.2 6.4 (Inaugural Speech, 2014.2.18) 6 5.6 5.7 Convenient ➊ Responsible management as Chairman & CEO 5 4.6 Kang Young Il an exemplary public enterprise 4.0 Ministry of Land, 4 3.5 3.3 Infrastructure ➋ Status reinforcement as a Rail Network 3 2.8 and Transport professional rail construction& management organization (Policy) ➌ Pursuit of the best railway quality & Cultivation of competent 2 & creative human resources 1 ➍ Securing financial stability ➎ Creativity & Innovation '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 KR ➏ Establishment of corproate culture for co-prosperity via (Construction, Management of (Operator) candid and open communication. (in the Inaugural Speech) facilities, Funding) KTX Credit Rating Moody's (2012.08.27.) (Rated as high quality and very low credit risk) Measures to reduce debt of public institutions – Find Aa3 (2nd operator) (by top global credit rating agencies) answers in the field (on-site safety inspections during Thaw, S&P (2012.09.17.) A+ (Rated as high quality and very low credit risk) 2014.3.6.) ※ One of the highest level among Korean public entities Debt reduction by 846.2 billion won through painful self- 2004.1 Inauguration of Korea Rail Network Authority (Consolidation of Korea High-speed efforts! Construction Authority and Korea Railroad Agency’s sectors of construction & facilities management) Profit creation of 1.6 trillion won through improvement of Redemption of Net 2011 41.5 billon won 41.5 billion won track access charging methods! (countermeasure meeting for Liabilities Major Projects Normalization, 2014.3.13.) 2012 92.9 billon won 134.4 billion won Osong Viaduct ● Gyeongbu High-speed rail (169.5km‘02-’14) 2013 137.7 billon won 272.1 billion won KR is going to play a leading role in global rail market, Total cost : KRW 21.0291 trillion opening the era of Eurasian Iron Silk Road beyond the (KRW 9.5531 trillion from national coffer, 11.476 trillion from KRNA) Korean penninsula. (interview with Munhwa Daily, 2014.3.31.) ● Honam High High-speed rail (182.3km‘06-’17) (Korea Rail Network Authority) Organization Organization 4 headquarters, 1 office, 1 research institute, and 5 regional offices KR constructs Total cost : KRW 10.7161 trillion Aim of KRNA’s foundation Contributing to enhancing convenience of citizens’ use of Number of current staffs 1,333 (KRW 5.3581 trillion from national coffer, 5.3581 trillion from KRNA) fast, safe, and convenient railway & its Mission public transportation and national economic growth with ● Metropolitan High-speed rail (61.1km‘08-’15) efficient construction and management of railway 1,545 facilities 1,444 Total cost : KRW 3.1181 trillion 1,347 1,333 (KRW 1.2472 trillion from national coffer, 1.8709 trillion from KRNA) ➊ Construction and renewal of High-speed, Conventional and ● Conventional rail : Opening of 23 projects Samnangjin∼Jinju, Jeolla Inter-city railway double-tracked le ➋ Asset Management and Development & Operation of railway 2008 2010 2012 2013 ● Opening of 8 projects such as Inter-city line of Gyeongui and Ori ~ Suwon land and Station area Achieved the goal of development plan of pubic organizations conducted by the Korean government (2012) ➌ Development of railway technology and management of railway facilities in safety ※Selected as one of the exemplary organization in personal ➍ Creating trans-Korean railway and advancing into Overseas affairs of “Development plan of public organizations” conducted 242 Jungang-ro, Dong-gu, Daejeon City by the Ministry of Strategy and Finance Main Contact : 1588-7270 http://www.kr.or.kr railway market 03 What does KR envision in 2020? 04 KR business 05 Innovative methods of construction 06 Sustainability management

Fast, To be one of the global powerhouses Fast, Establishment of low cost and Fast, Great railway by cutting-edge Fast, Citizen-adoring Public Safe, Safe, Safe, Safe, Convenient, in the railway industry by connecting Convenient, high efficient railway infrastructure Convenient, technology Convenient, organization Rail Network Korean major cities within 90 minutes Rail Network Rail Network Rail Network

Total length of lines 2020 4,934km Construction of HSR(High-speed rail) Construction of Inter-city Rail Construction of Conventional rail Construction by new Realizing responsible technology and method management Overview of Projects Overview of Projects Overview of Projects 2013 3,661km optimal to on-site 3 Projects of 660.9km : 10 projects of 404.4km: 27 projects of 1,327.9km: Creating jobs Gyeongbu, Honam(Osong∼ Gyeongui, Wangsimni∼Seolleung, Wonju-Gangneung, Seongnam- condition Creation of 21,577 jobs in 2013 Double-track ratio Mokpo), Seoul Metropolitan ∼Ulsan double-tracked & Yeoju, Pohang∼Samcheok Renewal Applied technology (increase of 19.9% compared to area(Suseo∼Pyeongtaek) line electrified line Total cost KRW 33.6525 trillion 2020 79% 18,003 jobs in 2012) Total cost KRW 34.4488 trillion Total cost KRW 19.9978 trillion Steel Arch Bridge Method 2013 2,077km 57% Incremental Launching and Geongji overpass (Honam HSR) Yoolhyeon Tunnel Management of railway facilities Asset development Overseas rail projects Rotation method 8.1∼10.1m of superstructure and 3arch Seoul-Metropolitan High-speed rail, “Field Management” of CEO Countermeasures meeting for Electrification ratio most environment-friendly construction (fields visits- center of Daejeon city) normalization Shield Tunnel Boring Machine Method 2020 85% Overview of Projects Overview of Projects Overview of Projects Enhancing citizens’convenience by Development of Station complex & PM(project management), 2013 2,529km 69% the management of rail facilities area, vacant land, and Supervision, and ODA(Official PSM (Precast Span Method) This figure is the highest among that of the six HSR-operating nations (Statistics of (installation of vertical crossing, housing business for the general Development Assistance) International Union of Railways) sound-proofing wall) and renewal populace MSS KR won the 32 overseas projects of old facilities (Movable Scaffolding System) of KRW 84.1 billion from 12 countries during 2004-2013, FCM Accumulated turnover 2020 KRW 16.4 trillion aiming at getting KRW 14.6 billion (Free Cantilever Method) in 2014 Han-river underwater tunnel Booyong 1 bridge (Honam HSR) 2013 KRW 5.89 trillion NTR (Wangsimni∼Seolleung) PSM Granting KR scholarship for young Junior board meeting (New Tubular Roof Method) Korea’s first tunnel applied by TBM technology students Details of turnover (including new businesses) Access charges, Asset lease, Station complex & area development, Profit from Accumulated Overseas Projects of KRNA (2004-2013) : 32 projects of KRW 84.1 billion from 12 countries Asset development and Overseas business Decrease of hazard rate to 0.102% in 2013, by thorough Quality & ※ Participating in a bid for Project Management Construction Managemen Consultancy Service for Oman Railway 2nd National Development Bangladesh China Environment-friendly railway Plan of Rail Network Jejin Consultancy Services of Replacement and (2005) Supervision of Suining ~ Chongqing line (HSR) Modernization of Existing Railway Signalling (2006) Supervision of Wuhan ∼ Guangzhou line (HSR) Operating joint investigation into (2011-2020) System at 11 stations of Bangladesh Railway (2008) Supervision of Hal’bin ∼ Dalian line (HSR) environment and ecology in East Zone (2010) Technology consulting for Lanzhou ∼ Xinjiang line (HSR) Realizing low vibration and sound Technology consulting for Xi’an ∼ Baoji line (HSR) charity event(making and sharing Training for 2013 new employees by earthquake-proof tracks and Kimchi) (Daejeon Gyejok Mt.) Technology consulting for Tianjin ~ Qinhuangdao line (HSR) Nepal sound-absorbing blocks Uijeongbu Technology consulting for Panjin ~ Xinhaicheng line (HSR) Gangneung (2011) Feasibility Study(FS) for Katumandu LRT Daegok Seoul Technology consulting for Ha’erbin ~ Qiqiha’er line (HSR) Creating mid and long-term plan Cheongnyangni Detail Design of electrified railway Training railway specialists Suseo Technology consulting for Changsha ∼ Kunming line (HSR; to prevent climate change Gwangmyeong Wonju Samcheok (2012) Detail Design of electrified railway in Airport Selected as a top supervising organization for Guizhou line) Reviving the vicinity of the viaduct in the Air-view of the installation of solar Pangyo the 2nd phase Installing environment-friendly and Wonsi (2012) Technology consulting for Zhengzhou ∼ Xuzhou obsolete rail of to be energy generator Fostering railway specialist Bubal Dongtan Jecheon renewable energy facilities eco-friendly with three characteristics Dodam (Solar, geothermal, LED) Malaysia U.S.A Chungju Man of Creativity (2012) Project Management Professional Engineering & Design Services Cheonan Yeongju Consulting(PMC) for the MRT for Design-Build Construction Package 1 of with constant challenge MunGyeong Hongseong Osong telecommunication project California High Speed Rail Project Establishment of cutting- Man of Expertise Daejeon edge electrical system for with global capacity Gimcheon Gumi safe operation of trains Pohang Philippines Man of Social responsibility Projects completed in 2014 st Gunjang Dongdaegu Yeongcheon Electrical and power system Graduation Ceremony of the 1 KR Green Railway Graduate School Iksan Consulting Services for the Civil Works of the LRT line 2 East (Masinag) with public service and st Daeya •the 1 half of the 2014 New Gyeongju Extension Project (Detailed Engineering Design & Construction) Electrical transmission customer satisfaction - Expansion of airport-rail-associated Saemangeum Jeonju Vietnam Catenary Graduate school of Green facilities Ulsan ENG Academy of railway (2012) Consulting and training the supervision Power System Railway traffic centralized control center (environment-friendly) railway Samnangjin staffs of Renewal project •December, 2014 Masan Signalling system Fostering tailor-made Strengthening technology Gwangju Jillye Indonesia - Yongsan~Gongdeok section Jinju Songjeong (2011) Project Management Consulting(PMC) experts of railway with 140 certified top experts of Gwangju CTC(Centralized Traffic Control) Busan for the establishment of master plan 487 masters and 28 doctors - Singyeongju~Pohang & KTX Suncheon ATC(Automatic Train Control) direct line Geoje India Cambodia Interlocking system - the 2nd phase of Gyeongbu Mokpo Bosung Yeosu (2012) Consulting for detailed design of HSR (2011) Project Management Consulting(PMC) Overseas railway Academy of win-win High-speed rail for the establishment of master plan Communication system High speed rail Conventional rail Academy growth Commencement(’11~’15) Cameroon Paraguay Train Radio System - Osong~Gwangjusongjeon Commencement(’16~’20) Strengthening global Strengthening Public-private Additional business (2009) Consulting for the establishment of master plan (2011) Project Management Consulting(PMC) of feasibility section of Honam high speed rail Transmission Network System capacity sector partnership as a top public (2011) Feasibility Study(FS) for the construction of railway study for the construction of railway Operations Communication Equipment Construction of catenary Train wireless system with 700 Project Managers organization to cooperate with the private sector