August 30, 2013

KOREA

Company News & Analysis Major Indices Close Chg Chg (%)

KOSPI 1,926.36 18.82 0.99 Partron (Buy/TP: W24,700) KOSPI 200 251.74 2.88 1.16 Beneficiary of mid- to low-end smartphone growth KOSDAQ 516.74 -3.63 -0.70 Turnover ('000 shares, Wbn) Soulbrain (Buy/TP: W60,000) Volume Value Balanced growth to continue KOSPI 296,211 4,961 KOSPI 200 67,262 3,519 Duksan Hi-Metal (Buy/TP: W34,000) KOSDAQ 392,253 1,938 Finding opportunity in uncertainty Market Cap (Wbn) Sungwoo Hitech (Buy/TP: W18,800) Value Back on track KOSPI 1,128,186 KOSDAQ 120,078

YG Entertainment (Buy/TP: W59,500) Lower TP KOSPI Turnover (Wbn) Potential of new artists and businesses has yet to be proven Buy Sell Net Foreign 1,781 1,283 498 Silicon Works (Buy/TP: W29,000) Institutional 1,236 1,282 -46 A long-awaited breakthrough Retail 1,927 2,366 -439 KOSDAQ Turnover (Wbn) SM Entertainment (Buy/TP: W46,000) Lower TP Buy Sell Net Royalty income recognition deferred to 2H Foreign 122 184 -61 Institutional 84 90 -6 Daesang (Trading Buy/TP: W36,000) Lower TP Retail 1,726 1,661 65 Taking a breather Program Buy / Sell (Wbn) Buy Sell Net KOSPI 1,091 821 271 KOSDAQ 35 23 12

Advances & Declines Advances Declines Unchanged KOSPI 419 376 79 KOSDAQ 411 500 71

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value NHN Entertainment 108,500 -19,000 555 Samsung Electronics 1,368,000 24,000 464 KODEX LEVERAGE 11,230 165 401 NHN 446,500 -33,500 342 KODEX INVERSE 7,860 -55 188

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Celltrion 45,100 -7,900 478 Speco 4,140 -60 44 AHNLAB 58,000 2,400 34 Lumens 8,580 -530 34 SM 33,400 2,000 31 Note: As of August 30, 2013

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.

Partron (091700 KQ) Beneficiary of mid- to low-end smartphone growth

Technology 2Q13 review: Record-high quarterly earnings Partron’s 2Q revenue came in at a record-high W318bn, up 61.1% YoY and 25.3% QoQ, Results Comment driven by a 147.9% YoY surge in antenna revenue (including laser direct structuring August 30, 2013 (LDS)) and a 45.8% YoY rise in camera module revenue. 2Q operating profit also rose to an all-time high of W38.7bn, up 118.7% YoY and 29.3% QoQ. OP margin remained in the double digits, gaining 3.2%p YoY to 12.2%. (Maintain) Buy That said, revenue and operating profit fell short of our estimates (W347.7bn and Target Price (12M, W) 24,700 W39.6bn) by 8.5% and 2.3%, respectively. We attribute the shortfall to the weaker- than-expected smartphone sales of the firm’s largest customer, which should continue Share Price (08/29/13, W) 17,750 to affect Partron’s earnings into 3Q.

Expected Return 39% Earnings declined MoM through July after hitting a record high in May. Earnings appear to have improved in August, but with the Chuseok holidays coming in September, we think expectations should be lowered for 3Q. As such, we now forecast 3Q revenue and OP (13F, Wbn) 140 operating profit at W287.4bn (-9.6% QoQ) and W35.2bn, respectively, and thus revise Consensus OP (13F, Wbn) 141 down our full-year revenue and operating profit forecasts by 11.3% and 4.9%, respectively. EPS Growth (13F, %) 58.7 Market EPS Growth (13F, %) 22.4 Sustainable growth of camera modules and LDS antennae P/E (13F, x) 8.4 In 2012, Partron’s largest customer became the world’s top handset maker (including Market P/E (13F, x) 9.6 smartphones). We expect the handset maker to cement its market leadership in 2013 by KOSDAQ 520.37 building a larger footprint in the mid- to low-end segment, while raising its brand equity Market Cap (Wbn) 961 in the high-end market. The handset company is expected to focus on achieving Shares Outstanding (mn) 54 economies of scale by seeking a more balanced product portfolio. This will undoubtedly Free Float (%) 74.5 continue to benefit Partron, which has a high exposure to the standardized parts used in Foreign Ownership (%) 24.0 the mid- to low-end segment. Beta (12M) 1.12 52-Week Low (W) 10,700 We expect Partron’s camera module mix to shift away from two-megapixel modules (for 52-Week High (W) 30,000 video calling) to five-megapixel and eight-megapixel modules, which should drive up ASP. We are also upbeat on Partron’s new growth driver, antennae, especially with the (%) 1M 6M 12M recent development of the firm’s proprietary LDS. The technology is essential to making Absolute 11.6 4.9 120.0 antennae thinner to create room for installing both LTE and 3G antennae. Even under Relative 11.2 10.7 121.1 the most bearish scenarios, we believe Partron has the highest growth potential among Share price smartphone part suppliers in 2014. That said, we believe the company preferably needs 320 KOSDAQ to identify its next growth engine beyond antennae and camera modules. 270 220 Maintain Buy and TP of W24,700 170 120 We keep our Buy rating and target price of W24,700, which was derived by applying a 70 P/E of 10.4x to our 2014F EPS of W2,378. Our target price represents 39.2% upside 8/12 12/12 4/13 8/13 from current levels.

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Revenue (Wbn) 273 426 873 1,165 1,474 1,741 Telecom equipment/ OP (Wbn) 27 30 91 140 176 209 Electronic components OP Margin (%) 9.9 7.1 10.4 12.1 11.9 12.0 Wonjae Park NP (Wbn) 23 26 72 115 129 153 +822-768-3372 EPS (W) 432 484 1,334 2,117 2,378 2,815 [email protected] ROE (%) 22.8 20.6 43.3 48.5 40.0 36.1

P/E (x) 18.8 16.5 10.5 8.4 7.5 6.3 P/B (x) 4.2 3.4 4.2 3.7 2.8 2.1 Notes: Based on consolidated K-IFRS since 1Q13; 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 the U.S.

PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.

Soulbrain (036830 KQ) Balanced growth to continue

Technology What’s new: 2Q margins significantly surprise to the upside 2Q review: Soulbrain’s 2Q revenue came in below the consensus (W176bn) at W167.4bn Results Comment (+3.6% YoY), but operating profit was a much better-than-expected W33bn (+44% YoY; August 30, 2013 vs. consensus of W28.7bn). Top line was dragged down by customers’ lower utilization, which resulted in QoQ revenue contractions in semiconductor etchants and rechargeable battery electrolytes. Still, OP margin advanced 4.8%p QoQ, aided by: 1) (Maintain) Buy top-line growth of high-margin thin glass and 2) cost savings from the internal sourcing of raw materials. Target Price (12M, W) 60,000 3Q preview: We expect earnings growth to continue in the seasonally strong 3Q, driven by 1) Samsung Electronics’ (SEC) growing shipments of OLED smartphones (thin glass), Share Price (08/29/13, W) 46,700 2) a pickup in SEC’s semiconductor utilization (etchants), and 3) Samsung SDI’s full- fledged capacity expansion (electrolytes). We estimate revenue to rise 7.3% QoQ to Expected Return 28% W179.5bn and operating profit to grow 2.6% QoQ to W33.9bn (OP margin of 18.9%) in the quarter. OP (13F, Wbn) 123 Catalyst: Thin glass in 2013, semiconductor materials in 2014 Consensus OP (13F, Wbn) 116 Continued growth of thin glass: Despite worries over growth stagnating, thin glass EPS Growth (13F, %) 18.3 revenue has continued to grow. For 2013, we estimate thin glass revenue (including Market EPS Growth (13F, %) 22.4 scribing) to rise 39% YoY to W254.8bn, as we see SEC’s OLED smartphone shipments P/E (13F, x) 8.6 jumping 67% YoY (from around 120mn units in 2012 to 200mn units in 2013). If Market P/E (13F, x) 9.6 Soulbrain takes over Samsung Display’s (SDC) thin glass and ITO coating business, we KOSDAQ 520.37 could see additional upside to top-line growth. Market Cap (Wbn) 757 Semiconductor materials: Major semiconductor technology advances (structure changes Shares Outstanding (mn) 16 and process migrations) are expected to bring attention to new semiconductor Free Float (%) 51.7 materials. SEC is likely to adopt 3D NAND technology at its Chinese NAND fab and the Foreign Ownership (%) 16.9 Beta (12M) 0.42 14nm process at its domestic S3 fab. Together with SEC, Soulbrain has jointly developed 52-Week Low (W) 36,550 high selectivity nitride (HSN) for the firm’s 3D NAND production. We expect Soulbrain 52-Week High (W) 52,600 to supply HSN exclusively to the Chinese NAND line from 2014. In 14nm (or below) processes, cleaning solutions will become more important to remove fine dust. One of (%) 1M 6M 12M such solutions is electrolyzed water, which is excellent for removing foreign substances Absolute 2.4 11.2 24.5 on substrates with fine patterns. Soulbrain’s supply of electrolyzed water equipment to Relative 2.0 17.1 25.6 SEC (which began last year) should increase in line with tech migration.

Share price 140 KOSDAQ Valuation: 12-month forward P/E of 8x, vs. peer average of 13.6x 130 120 Soulbrain has one of the most well-balanced and stable portfolios among IT stocks. It has 110 a presence in almost every major IT segment, including smartphones, tablets, OLED, non- 100 memory chips, and semiconductor technology migration. And yet the stock is trading at 90 80 a cheaper multiple (12-month forward P/E of 8x) than its peers (average of 13.6x). We 8/12 12/12 4/13 8/13 reiterate our Buy rating and target price of W60,000 (based on a 12-month forward P/E

of 11x). Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Revenue (Wbn) 359 481 664 687 787 863 Electronic materials OP (Wbn) 45 59 107 123 131 139 Will Cho OP Margin (%) 12.5 12.2 16.1 17.9 16.7 16.1 +822-768-4306 NP (Wbn) 32 7 74 88 98 104 [email protected] EPS (W) 2,206 479 4,614 5,456 6,023 6,414

ROE (%) 16.5 3.2 26.4 23.6 21.1 18.7 P/E (x) 13.9 80.7 10.1 8.6 7.8 7.3 P/B (x) 2.2 2.6 2.4 1.9 1.6 1.3 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 the U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.

Duksan Hi-Metal (077360 KQ) Finding opportunity in uncertainty

Technology What’s new: 2Q earnings disappoint on weaker OLED material revenue 2Q review: Duksan Hi-Metal’s 2Q revenue and operating profit came in at W29.5bn Results Comment (-20% YoY) and W7.5bn (-29% YoY; OP margin of 25.5%), respectively, below the market August 30, 2013 consensus. Both revenue and OP margin contracted QoQ, as revenue from high-margin OLED materials shrunk 8% QoQ to W14.5bn. This was largely due to: 1) lower ASP (-5% QoQ), and 2) weaker shipments (-3% QoQ) as a result of better material efficiency at (Maintain) Buy Samsung Display (SDC) amid the absence of new lines from the display firm. At the semiconductor unit, solder ball revenue slipped 8% QoQ to W15bn, as restocking Target Price (12M, W) 34,000 demand was concentrated in 1Q. 3Q preview: In 3Q, OLED material revenue should resume growth on the operation of Share Price (08/29/13, W) 23,600 SDC’s new line (A2 Phase 4), while restocking demand for solder balls should increase with the rollouts of new smartphones by Samsung Electronics (SEC) and Apple. We Expected Return 44% forecast revenue to climb 26% QoQ to W37.3bn and operating profit to jump 42% QoQ to W10.7bn (OP margin of 28.7%) in the quarter. We estimate 3Q OLED material OP (13F, Wbn) 38 revenue at W17.6bn, up 21% QoQ, with additional upside if stockpiling demand for Consensus OP (13F, Wbn) 44 OLED TV materials emerges. At the semiconductor unit, we expect increased revenue from solder balls, as well as revenue of W5bn from its subsidiary UMT (unlisted). EPS Growth (13F, %) -5.2 Market EPS Growth (13F, %) 22.4 Catalyst: Confidence in OLED growth story and TV shipment growth P/E (13F, x) 17.5 Confidence in OLED: We believe Samsung’s recent acquisition of the German OLED Market P/E (13F, x) 9.6 materials supplier Novaled signals the group’s confidence in the growth of OLED, as well KOSDAQ 520.37 as its determination to continue investing in the field. The takeover should allow Market Cap (Wbn) 694 Samsung Group to: 1) achieve greater vertical integration of OLED materials and 2) gain Shares Outstanding (mn) 29 access to a large number of OLED patents, both of which we believe are predicated on Free Float (%) 44.1 strong confidence in the growth of OLED. Foreign Ownership (%) 17.6 Beta (12M) 0.66 OLED TV shipment growth: The largest earnings drag in 1H came from the sharp YoY 52-Week Low (W) 16,500 revenue contraction in OLED TV materials, especially after SDC’s massive stockpiling late 52-Week High (W) 29,600 last year. However, we expect OLED TV materials supply to resume in 2H, in light of the partial depletion of SDC’s inventory in 1H and SEC’s official release of curved OLED TVs. (%) 1M 6M 12M Recently, SEC and LG Electronics (LGE) drastically reduced their OLED TV prices, which Absolute -1.3 -7.8 11.1 we believe is a sign of their determination to boost the market. Relative -1.7 -1.9 12.2 Valuation: Maintain Buy and TP of W34,000; Valuation attractive at below 15x Share price 150 KOSDAQ Currently, the stock is trading at a 12-month forward P/E of 14.2x. The stock has 130 recently come under pressure due to rising worries over Samsung’s OLED investment 110 delays. However, we find the current valuation attractive considering the expected 90 recovery of earnings momentum in 2H and competitive OLED TV launches by TV

70 manufacturers. We see current levels as a near-term bottom and thus continue to 8/12 12/12 4/13 8/13 recommend overweighting the stock at levels below a 12-month forward P/E of 15x.

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Revenue (Wbn) 73 129 144 136 192 220 Electronic materials OP (Wbn) 20 39 42 38 53 60 Will Cho OP Margin (%) 27.7 30.4 29.0 27.6 27.5 27.1 +822-768-4306 NP (Wbn) 16 35 42 40 54 54 [email protected] EPS (W) 638 1,181 1,426 1,352 1,819 1,850

ROE (%) 18.7 29.0 26.1 19.6 21.5 18.0 P/E (x) 31.8 21.5 14.9 17.5 13.0 12.8 P/B (x) 6.6 6.0 3.7 3.3 2.6 2.2 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

Sungwoo Hitech (015750 KQ) Back on track

Auto 2Q13 review: Strong QoQ earnings improvement Sungwoo Hitech’s 2Q13 consolidated earnings were stronger than expected with Results Comment revenue of W793bn (+2.9% QoQ, +2.3% YoY) and operating profit of W51.7bn (+ 30.5% August 30, 2013 QoQ, -5.3% YoY). OP margin was 6.5%, beating our estimate of 5.3%. We attribute the strong QoQ earnings improvement to: 1) production normalization of Hyundai Motor’s (HMC) and Kia Motors’ (Kia) domestic plants, 2) weaker won, and 3) high utilization rate (Maintain) Buy at the firm’s key overseas subsidiaries (China and Czech Republic). Sungwoo Hitech’s key overseas subsidiaries saw earnings normalize in 2Q13 after Target Price (12M, W) 18,800 posting weak 1Q13 earnings due to sales mix deterioration and scheduled cost reductions (Czech Republic). Meanwhile, Sungwoo Hitech’s pretax profit declined 28.2% Share Price (08/29/13, W) 14,650 YoY due to last year’s one time gain of W29.9bn from negative goodwill related to its purchase of German parts maker WMU. Excluding the purchase, however, the Expected Return 28% company’s pretax profit seems to have increased by 20% YoY. Overall, despite weaker- than-expected earnings from its Indian and Russian subsidiaries, we believe Sungwoo OP (13F, Wbn) 202 Hitech’s 2Q13 earnings were solid. Consensus OP (13F, Wbn) 195 2H13 outlook: Key overseas subsidiaries to continue solid earnings EPS Growth (13F, %) -11.9 We believe Sungwoo Hitech’s earnings have rebounded solidly after a poor 1Q13. Going Market EPS Growth (13F, %) 22.4 into the second half, we believe solid sales of new HMC and Kia cars in China will lead to P/E (13F, x) 6.2 solid margin improvement for Sungwoo Hitech’s Chinese operations, as well as Market P/E (13F, x) 9.7 improving overall sales mix. Additionally, the start of production for Kia’s third plant in KOSDAQ 520.37 China will secure solid margins for Sungwoo Hitech in 2014. Market Cap (Wbn) 733 Sungwoo Hitech’s Czech plant will also likely enjoy continued margin improvement Shares Outstanding (mn) 50 thanks to solid output in the region from HMC and Kia, along with anticipation of the EU Free Float (%) 54.7 auto market recovery from 2014. The Russian plant, which is still in the red, will also Foreign Ownership (%) 16.3 Beta (12M) 1.15 likely post positive operating profit from as early as 4Q13. 9,300 52-Week Low (W) Maintain Buy rating with TP of W18,800 52-Week High (W) 18,200 Sungwoo Hitech’s share price underperformed the sector after the disappointing 1Q13 (%) 1M 6M 12M earnings release due to concerns over low earnings visibility in the company’s overseas Absolute 3.9 2.8 5.4 subsidiaries. However, we find Sungwoo Hitech’s current valuation (P/E of 6.2x) Relative 3.5 8.7 6.5 attractive given the better-than-expected margin recovery in 2Q13 and positive outlook

Share price for key overseas subsidiaries. We maintain our Buy rating with a 12-month target price 140 KOSDAQ of W18,800. 120

100

60 8/12 12/12 4/13 8/13

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Revenue (Wbn) 2,082 2,584 3,011 3,241 3,526 3,843 Auto/Auto Parts/Tire OP (Wbn) 190 175 200 202 223 247 Michael Yun OP Margin (%) 9.1 6.8 6.7 6.2 6.3 6.4 +822-768-4169 NP (Wbn) 128 51 134 118 143 150 [email protected] EPS (W) 2,550 1,022 2,677 2,359 2,858 3,005

Young-ho Park ROE (%) 27.9 8.4 19.0 14.6 15.5 14.3 +822-768-3033 P/E (x) 4.3 13.6 4.4 6.2 5.1 4.9 [email protected] P/B (x) 1.0 1.1 0.8 0.9 0.8 0.7 Note: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Sangmin Lee Source: Company data, KDB Daewoo Securities Research estimates +822-768-4170 [email protected] 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.

YG Entertainment (122870 KQ) Potential of new artists and businesses has yet to be proven

Entertainment 2Q revenue up 34.2% YoY, operating profit up 36.5% YoY YG Entertainment’s 2Q revenue and operating profit grew 34.2% and 36.5% YoY to Results Comment W30.6bn and W5.5bn, respectively. Net profit climbed 56.5% YoY. Overall, 2Q results August 30, 2013 met expectations thanks to revenue recognition from Psy’s domestic concerts and G- Dragon’s concerts outside of Japan. In 3Q, we project YG Entertainment to deliver record-high earnings, backed by G-Dragon’s (Maintain) Buy Japan dome tour (320,000 attendees based on maximum seating capacity), Daesung’s Japan concerts (70,000 attendees based on maximum seating capacity), and new album releases by Target Price (12M, W) 59,500 2NE1 and Seungri. We forecast 3Q operating profit of W8bn on revenue of W40bn.

Share Price (08/29/13, W) 49,250 Boy band to debut via reality competition show; Big Bang set for 4Q dome tour YG Entertainment has not introduced a single new idol group following the debut of Expected Return 21% 2NE1 four years ago and Big Bang eight years ago. However, the entertainment firm plans to debut a new boy group through a reality program called WIN (set to premiere OP (13F, Wbn) 27 on August 23rd), which will feature eleven contestants competing in two teams. Consensus OP (13F, Wbn) 29 We revise down our 2013F and 2014F net profit by 7.2% and 12.3%, respectively. EPS Growth (13F, %) 28.6 Although revenue from Psy’s overseas concerts has not yet been reflected, we believe Market EPS Growth (13F, %) 22.4 2013 overseas concert revenue has been largely in line with expectations. We note that P/E (13F, x) 20.7 G-Dragon’s concerts have been attracting much larger-than-expected crowds. Market P/E (13F, x) 9.6 On the other hand, we expect a decline in overseas royalties from Japanese-language KOSDAQ 520.37 albums (released through local agents). We note that royalties from Japanese albums Market Cap (Wbn) 508 and digital music are one of the company’s most profitable sources of revenue. Shares Outstanding (mn) 10 Free Float (%) 58.2 Looking forward into 2014, we expect: 1) Chinese concerts to begin generating meaningful Foreign Ownership (%) 3.2 revenue, 2) a clearer picture of Psy’s overseas concert schedule to emerge, and 3) the firm’s Beta (12M) 0.93 pop group lineup to expand with the addition of a new girl group. However, we believe the 52-Week Low (W) 45,350 contribution of the company’s most profitable sources of income (such as overseas albums 52-Week High (W) 108,700 and domestic digital music) will be smaller than expected.

(%) 1M 6M 12M Lower TP to W59,500; Potential of new artists or Psy effect yet to be confirmed Absolute -12.1 -26.4 -19.5 We maintain Buy on YG Entertainment, but slash our target price by 30% to W59,500 Relative -12.5 -20.5 -18.4 (from W85,000), in light of downward adjustments to our 2013F and 2014F EPS. We Share price also believe the current stock price reflects a growth premium relative to other 220 KOSDAQ entertainment or media players, but we have yet to see any concrete evidence that 170 validates the potential of new artists or businesses.

120 YG Entertainment has initiated a number of new businesses: including 1): the launch of

70 YG Channel on China’s largest online video website Youku, together with Samsung 8/12 12/12 4/13 8/13 Electronics, 2) the opening of a hologram concert hall at Everland, and 3) a W5bn investment in Red Rover, a 3D animation company.

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Revenue (Wbn) 58 78 107 137 165 185 Internet/Game/Entertainment OP (Wbn) 14 18 22 27 32 35 Chang-kwean Kim OP Margin (%) 23.6 22.7 20.2 19.8 19.6 18.7 +822-768-4321 NP (Wbn) 10 13 19 25 29 31 [email protected] EPS (W) 1,289 1,663 1,849 2,378 2,838 3,045

ROE (%) 61.4 26.5 21.6 22.7 22.4 20.1 P/E (x) 0.0 22.1 33.3 20.7 17.4 16.2 P/B (x) 0.0 5.2 7.1 4.7 3.8 3.2 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

Silicon Works (108320 KQ) A long-awaited breakthrough

Technology 2Q review: Revenue of W86.9bn (-29% YoY), OP of W5bn (-62% YoY) For 2Q, Silicon Works posted consolidated revenue of W86.9bn (-7% QoQ, -29% YoY) Results Comment and operating profit of W5bn (-4% QoQ, -62% YoY), missing our projections (W99.4bn August 30, 2013 and W5.7bn, respectively). OP margin gained slightly QoQ but was still down 5%p YoY, mainly because of a 46% YoY decline in revenue from highly profitable COG driver ICs (W38.8bn). We estimate iPad component shipments were just 4.5mn units in 2Q13, a (Maintain) Buy sharp drop from 8.5mn units in 2Q12. COF driver IC revenue jumped 30% YoY to W26.3bn on the back of increased shipments Target Price (12M, W) 29,000 for LG Electronics (LGE) TVs. However, COF driver ICs contribute little to profits due to their low margins. T-con and PMIC revenue contracted YoY to W14.3bn and W2bn, Share Price (08/29/13, W) 24,450 respectively, which we attribute to dwindling supply to Samsung Electronics (SEC).

Expected Return 19% Catalysts: 1) New iPad model to drive up 3Q earnings, 2) UHD TV expansion In 3Q, we expect the release of the newest iPad model to boost component shipments OP (13F, Wbn) 27 to 10mn units (+122% QoQ). Since late 2012, COG driver IC revenue has persistently Consensus OP (13F, Wbn) 31 fallen due to a lack of supply for iPad mini usage. However, we believe supply will begin this year for the newest model of the iPad mini (featuring retina display). As such, we EPS Growth (13F, %) -28.4 forecast 3Q COG driver IC revenue to climb 77% QoQ to W66.8bn. Market EPS Growth (13F, %) 22.4 P/E (13F, x) 13.5 Recently, the expanding lineup of ultra-high definition (UHD) TVs among TV makers has Market P/E (13F, x) 9.6 been raising expectations for Silicon Works. UHD TV panel shipment growth should KOSDAQ 520.37 benefit the company, because their higher resolution requires a larger number of driver ICs and more sophisticated T-cons. UHD TVs use around 12-14 source driver ICs, around Market Cap (Wbn) 398 double the amount typically required for existing HDTVs. That said, UHD TVs are likely Shares Outstanding (mn) 16 to become widespread only after 2016, as the infrastructure for producing and Free Float (%) 72.2 transmitting UHD content is still underdeveloped. We forecast global UHD TV sales to Foreign Ownership (%) 24.5 Beta (12M) 1.01 rise from an estimated 1mn units in 2013 (0.5% of the global TV market) to 11mn units 52-Week Low (W) 19,500 in 2016, but this would still only represent 5% of the global TV market. 31,000 52-Week High (W) Maintain Buy and TP of W29,000 (%) 1M 6M 12M We maintain our Buy rating on Silicon Works with a target price of W29,000. The stock Absolute 11.9 14.8 -20.4 has recently gained 15% from its previous low, driven by bullish expectations for 3Q Relative 11.5 20.7 -19.3 earnings and Apple’s new product launch. We expect 3Q consolidated revenue and

Share price operating profit to markedly improve QoQ to W119.6bn (+38% QoQ, -13% YoY) and 130 KOSDAQ W8.8bn (+76% QoQ, -36% YoY), respectively. The stock is currently trading at a P/E of 110 11.8x and a P/B of 1.3x on a 12-month forward basis. 90

50 8/12 12/12 4/13 8/13

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Revenue (Wbn) 257 302 473 412 469 548 Display OP (Wbn) 38 25 44 27 33 47 Jonathan Hwang OP margin (%) 14.7 8.2 9.2 6.5 7.0 8.6 +822-768-4140 NP (Wbn) 41 33 41 29 35 47 [email protected] EPS (W) 2,688 2,021 2,529 1,810 2,140 2,908

ROE (%) 27.5 15.5 17.3 11.1 12.1 14.9 P/E (x) 12.5 15.4 8.8 13.5 11.4 8.4 P/B (x) 2.7 2.2 1.4 1.4 1.3 1.2 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

SM Entertainment (041510 KQ) Royalty income recognition deferred to 2H

Entertainment Another huge earnings miss SM Entertainment delivered another quarter of disappointing earnings in 2Q. Under non- Results Comment consolidated K-IFRS, revenue rose 3.5% YoY and 0.9% QoQ, but operating profit plunged 78.3% YoY and 71% QoQ. On a consolidated basis, revenue and operating profit came in August 30, 2013 at W56.9bn and W3.7bn, respectively.

The poor performance was attributable to 1) a sharp YoY contraction in overseas (Maintain) Buy management revenue (which includes concert royalty income) and 2) a decline in overseas royalty income (from albums which are more profitable) as a percentage of Target Price (12M, W) 46,000 overall revenue. Expenses related to new business initiatives, such as pop-up stores and merchandise shops also increased. Another major negative was the deferral of revenue Share Price (08/29/13, W) 31,400 expected from Exo album sales (500,000 copies) to 3Q. SM Entertainment is projected to draw roughly 2.2mn concertgoers in 2013 (vs. 1.5mn Expected Return 46% in 2012), based on the seating capacity of concerts booked through year-end. In Japan, the firm’s dome concerts (which are more profitable) as a percentage of total concerts

have nearly doubled from 46% in 2012 to 84% in 2013. We expect the company to sell OP (13F, Wbn) 62 around 4mn albums this year in Japan, largely in line with last year’s numbers (3.8mn Consensus OP (13F, Wbn) 64 albums). EPS Growth (13F, %) 25.3 Revenue and profit recognition skewed towards 2H Market EPS Growth (13F, %) 22.4 P/E (13F, x) 12.6 Royalty income from TVXQ’s Japan dome tour (700,000 attendees) will be reflected in Market P/E (13F, x) 9.6 3Q earnings. Royalty income from TVXQ’s stadium concerts as well as overseas concerts KOSDAQ 520.37 performed by Super Junior and SHINee should be booked in 4Q. We also expect the deferred profits from domestic and Japanese album sales to be recognized in 4Q. Market Cap (Wbn) 648 Shares Outstanding (mn) 21 Following the 2Q earnings results, we revised down our full-year consolidated operating Free Float (%) 78.3 profit estimate to W61.5bn (our revenue estimate remains unchanged at W281bn). For Foreign Ownership (%) 9.5 2H, we forecast consolidated revenue of W174.1bn and operating profit of W52.8bn (vs. Beta (12M) 0.65 W106.9bn and W8.7bn, respectively). 29,100 52-Week Low (W) Maintain Buy, but cut TP by 20% to W46,000; Bank on content competitiveness 52-Week High (W) 71,600 We lowered our 2013F-14F EPS by 8.7% and 15.9%, respectively, in light of the latest 2Q (%) 1M 6M 12M results. We subsequently cut our target price by 20% to W46,000 from W58,000, but Absolute -16.5 -28.0 -41.5 keep our Buy rating intact. Relative -16.9 -22.1 -40.4 Despite the recent string of disappointing results, we see a number of positive Share price developments that bode well for the company. These include 1) the successful 150 KOSDAQ 130 generational transition of the firm’s idol group lineup (to Exo, f(x) and SHINee); 2) the

110 2Q return to profit at SM C&C (which has a major impact on consolidated earnings); 3) 90 the earnings contribution from Chinese concerts (TVXQ and Super Junior), and 4) the 70 firm’s transformation into a major record label with an economy of scale (as suggested 50 by the recent acquisition of the boy group Infinite’s management company). 8/12 12/12 4/13 8/13

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Revenue (Wbn) 97 143 241 281 335 368 Internet/Game/Entertainment OP (Wbn) 20 26 61 62 74 87 Chang-kwean Kim OP Margin (%) 20.9 17.9 25.1 21.9 22.0 23.5 +822-768-4321 NP (Wbn) 17 23 40 52 62 72 [email protected] EPS (W) 942 1,235 1,994 2,500 3,003 3,489

ROE (%) 22.9 23.1 24.7 21.9 21.4 20.2 P/E (x) 16.0 33.0 22.8 12.6 10.5 9.0 P/B (x) 3.6 7.4 5.5 2.9 2.2 1.8 Note: 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

Daesang (001680 KS) Taking a breather

Food & Beverage Sluggish 2Q earnings performance Daesang’s 2Q revenue rose 8.7% YoY, while operating profit declined 16.4% YoY. These Results Comment results were largely in line with expectations. However, pretax profit contracted by a larger-than-expected 22.8% YoY, partly due to increased F/X-related costs. August 30, 2013 Revenue at the general food unit (processed food and Chungjungwon) inched up 2.2% YoY despite unfavorable macro conditions (which dragged down red vinegar drink and (Maintain) Trading Buy condiment sales), but operating profit slumped 41.1% YoY on higher SG&A expenses related to new product releases. Foodstuff revenue (starch sugar and biotech) fell 13.1% YoY, affected by sluggish downstream industries (beverage, etc.), but operating profit Target Price (12M, W) 36,000 improved 10.4% YoY thanks to lower costs.

Share Price (08/29/13, W) 30,900 The firm’s subsidiary Daesang Bestco (food material distributor) saw wider operating losses in 2Q, despite 13.1% YoY revenue growth. Daesang FNF (kimchi producer) delivered a 15% YoY Expected Return 17% top-line increase, but profits were eroded by higher napa cabbage prices. PT Miwon Indonesia was unscathed by the country’s crisis, eking out 15% YoY growth in profit.

OP (13F, Wbn) 131 Top-line and bottom-line reviving since July Consensus OP (13F, Wbn) 144 Both revenue and operating profit have been reviving over the past couple of months. After a period of contraction in 1H (-7.3%), we forecast operating profit to grow 9% YoY EPS Growth (13F, %) -7.6 in 2H and 8.3% in 2014, backed by: 1) cost savings in general food, 2) lower costs in Market EPS Growth (13F, %) 22.4 foodstuffs, and 3) better earnings at domestic subsidiaries. P/E (13F, x) 13.2 Market P/E (13F, x) 9.6 We expect the general food unit to benefit from lower SG&A expenses as a result of KOSPI 1,907.54 easing competition with CJ CheilJedang. As for the foodstuff unit, achieving top-line growth will likely be challenging due to falling starch sugar prices, but margins should Market Cap (Wbn) 1,063 expand, aided by lower corn input prices (corn purchases estimated to total W230bn). Shares Outstanding (mn) 36 Free Float (%) 55.5 For 2013, we project Daesang Bestco to post revenue of W450bn with operating loss Foreign Ownership (%) 8.8 staying flat (operating loss of W6.8bn on revenue of W400bn in 2012). Government Beta (12M) 0.55 support to protect mom and pop stores should delay the opening of new stores and private consumption should remain depressed, leading to a worse-than-expected 52-Week Low (W) 16,750 slowdown in both revenue and profit. 52-Week High (W) 42,800 PT Miwon Indonesia, a producer and distributor of monosodium glutamate (MSG), (%) 1M 6M 12M contributes 8.7% (W165bn) of Daesang’s overall revenue. MSG (which accounts for 70% Absolute -1.9 -5.5 82.3 of PT Miwon Indonesia’s sales) is considered a food necessity and is thus less sensitive to Relative -2.3 0.4 83.4 changes in economic conditions. Therefore, even if Indonesia’s domestic consumption

Share price tentatively contracts, we believe sales are bound to recover. 280 KOSPI

230 Maintain Trading Buy and Cut TP to W36,000

180 Daesang’s stock has been trending down due to: 1) shrinking sales volume across the

130 overall industry, 2) slowing growth at Daesang Bestco and 3) rising risks in Indonesia. We maintain our Trading Buy rating on Daesang and lower our target price to W36,000 80 8/12 12/12 4/13 8/13 (from W43,000) in line with our downward earnings revisions. Our target price is based on a 2014F P/E of 13.5x. If operating conditions continue to improve, and the stock corrects further, we will revisit our investment rating. Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Food & Beverage Revenue (Wbn) 1,785 2,164 2,480 2,572 2,727 2,879 Woon-mok Baek OP (Wbn) 75 109 132 131 142 153 +822-768-4158 OP Margin (%) 4.2 5.0 5.3 5.1 5.2 5.3 [email protected] NP (Wbn) 32 56 91 84 96 103

EPS (W) 876 1,541 2,531 2,339 2,653 2,867 ROE (%) 7.0 11.2 16.3 13.2 13.2 12.6 P/E (x) 8.8 10.5 10.4 13.2 11.7 10.8 P/B (x) 0.7 1.4 1.9 1.9 1.7 1.4

Note: 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 the U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.

Key Universe Valuations August 30, 2013

※All data as of close August 29, 2013, unless otherwise noted.

13F Earnings growth Mkt Cap Price P/E (x) P/B (x) ROE (%) Ticker Company Div Yield OP EPS (Wbn) (W) (%) 13F 14F 13F 14F 13F 14F 13F 14F 13F 14F 005930 Samsung Electronics 197,970 1,344,000 0.6 35.6 11.2 38.7 14.4 7.1 6.2 1.5 1.2 24.4 22.5 005380 Hyundai Motor 52,756 239,500 0.9 4.0 10.3 2.6 5.6 7.8 7.4 1.4 1.2 18.3 16.5 005490 POSCO 28,031 321,500 2.5 -10.5 39.5 -26.6 62.6 15.3 9.4 0.7 0.6 4.6 7.2 012330 Hyundai Mobis 26,964 277,000 0.8 -4.0 18.4 -3.8 12.7 7.9 7.0 1.4 1.2 18.6 17.7 000270 Kia Motors 26,186 64,600 1.1 5.3 6.2 3.3 8.4 6.6 6.1 1.4 1.1 21.3 19.2 032830 Samsung Life 21,100 105,500 2.0 0.0 9.3 4.2 4.3 18.1 17.4 1.1 1.0 6.0 5.8 015760 KEPCO 19,548 30,450 - 80.9 - 295.0 34.9 8.8 0.4 0.4 1.1 4.3 000660 SK Hynix 19,495 27,450 0.5 - 0.8 - 1.7 6.4 6.3 1.7 1.3 26.7 21.7 051910 LG Chem 19,020 287,000 1.5 3.9 28.3 6.1 28.4 13.4 10.4 1.8 1.6 14.1 16.0 055550 Shinhan Financial Group 18,873 39,800 0.2 -10.3 14.2 -10.1 13.7 10.0 8.8 0.7 0.7 7.1 7.6 017670 SK Telecom 17,401 215,500 4.4 26.0 29.6 66.0 25.6 9.1 7.2 1.7 1.5 15.6 18.0 009540 Hyundai Heavy 16,948 223,000 -31.9 47.9 -5.8 72.5 18.3 10.6 1.0 0.9 5.4 8.6 035420 NHN 15,822 480,000 0.3 22.0 30.2 16.0 34.9 36.5 27.0 5.0 4.1 30.6 33.8 105560 KB Financial Group 13,522 35,000 -3.3 11.4 3.8 11.4 7.7 6.9 0.5 0.5 6.9 7.4 096770 SK Innovation 12,991 140,500 2.0 33.8 14.8 26.9 29.5 8.8 6.8 0.9 0.8 9.4 11.1 066570 LG Electronics 11,750 71,800 0.4 32.1 45.6 670.8 115.3 25.2 11.7 1.2 1.1 4.2 8.8 003550 LG Corp. 11,441 66,300 1.5 5.1 11.4 15.8 5.4 10.7 10.2 1.0 0.9 9.4 9.2 000810 Samsung F&M 11,417 241,000 2.8 20.2 14.1 19.2 14.4 11.1 9.7 1.2 1.1 11.7 11.9 023530 Lotte Shopping 10,707 340,000 0.4 11.7 12.3 12.6 10.3 8.7 7.9 0.9 0.8 7.4 7.6 034220 LG Display 10,591 29,600 1.9 6.0 -21.6 111.5 22.2 21.5 17.6 1.0 1.0 4.7 5.6 086790 Hana Financial Group 9,972 34,400 -8.7 10.0 -22.8 12.7 7.2 6.4 0.5 0.5 8.8 7.3 033780 KT&G 9,940 72,400 4.1 -4.5 5.1 1.3 5.6 13.3 12.6 1.8 1.7 14.2 14.0 030200 KT 9,335 35,750 5.2 2.3 9.5 -7.7 10.0 9.6 8.7 0.9 0.9 7.8 8.3 010140 Samsung Heavy 9,039 39,150 1.3 11.2 5.6 26.8 8.4 9.0 8.3 1.3 1.2 17.7 16.5 000830 Samsung C&T 8,701 55,700 0.9 -7.1 34.4 -17.3 22.4 24.0 19.6 0.8 0.8 3.2 3.7 003600 SK Holdings 8,664 184,500 1.5 12.7 19.6 20.0 9.6 7.0 6.4 2.0 1.5 10.7 10.8 010950 S-Oil 8,601 76,400 4.0 32.6 17.5 35.7 23.7 11.2 9.1 1.5 1.4 14.1 16.0 006400 Samsung SDI 8,064 177,000 0.9 -42.0 145.4 -63.9 33.6 15.7 11.8 1.1 1.1 7.1 9.2 051900 LG Household & Health Care 7,825 501,000 0.7 16.8 12.2 14.5 13.1 25.5 22.6 5.7 4.6 26.0 23.9 161390 Hankook Tire 7,271 58,700 1.0 258.3 4.8 262.0 2.5 8.7 8.5 1.9 1.5 23.2 19.4 086280 Hyundai Glovis 6,975 186,000 1.1 7.1 6.9 -1.0 11.0 14.2 12.8 3.0 2.5 23.0 20.9 000720 Hyundai E&C 6,314 56,700 1.2 13.5 22.2 1.2 34.4 12.2 9.1 1.3 1.2 10.8 13.2 004020 Hyundai Steel 6,305 73,900 0.7 -14.3 58.1 -41.3 63.7 13.5 8.2 0.6 0.6 4.6 7.2 024110 Industrial Bank of Korea 6,162 11,200 0.3 -26.5 16.3 -19.6 16.1 7.7 6.6 0.5 0.5 6.6 7.3 009150 Samsung Electro-Mechanics 6,102 81,700 1.3 21.8 9.6 16.7 11.5 12.3 11.1 1.5 1.4 12.5 12.4 010130 Korea Zinc 6,095 323,000 1.7 -13.2 20.7 -10.3 25.4 12.1 9.7 1.4 1.3 12.3 13.8 011170 Lotte Chemical 5,913 172,500 1.2 18.1 62.0 2.9 54.4 17.0 11.0 0.9 0.9 5.6 8.2 139480 Emart 5,812 208,500 0.3 4.1 5.0 3.3 4.5 10.7 10.2 0.9 0.8 8.7 8.4 035250 Kangwon Land 5,766 26,950 3.2 11.6 15.4 19.7 16.6 16.3 13.9 2.1 1.9 14.3 15.4 001800 Orion 5,677 951,000 0.3 -3.6 7.9 -1.9 16.2 38.2 32.8 5.3 4.5 14.0 14.1 032640 LG Uplus 5,676 13,000 2.7 395.6 24.9 - 37.8 15.7 11.4 1.7 1.5 9.2 11.7 042660 DSME 5,656 29,550 0.9 -14.7 60.0 -11.0 131.5 28.7 12.4 1.2 1.1 4.2 9.1 088350 Hanwha Life 5,585 6,430 3.5 - - 3.5 1.6 9.8 9.6 0.8 0.8 8.6 8.3 034730 SK C&C 5,375 107,500 12.2 6.3 30.7 4.8 11.6 11.0 1.9 1.7 19.5 18.0 090430 Amorepacific 5,226 894,000 0.7 -1.0 10.4 4.3 12.6 22.0 19.5 2.6 2.3 11.5 11.7 078930 GS 5,213 56,100 2.5 31.6 9.4 26.0 18.9 8.5 7.2 0.9 0.8 9.5 10.4 001300 Cheil Industries 4,615 88,000 0.9 2.6 45.4 21.1 49.3 18.3 12.2 1.6 1.5 7.7 11.0 034020 Doosan Heavy I&C 4,520 42,700 1.8 3.9 6.6 1028.4 19.4 10.5 8.8 1.3 1.3 9.5 11.2 021240 COWAY 4,504 58,400 3.7 33.0 14.0 116.7 3.4 17.4 16.8 4.9 4.1 29.1 25.0 011210 Hyundai Wia 4,348 169,000 0.3 3.6 14.9 4.3 17.3 10.0 8.5 2.0 1.7 21.3 20.2 Source: KDB Daewoo Securities Research

Market Data August 30, 2013

※All data as of close August 30, 2013, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 394.08 8.90 2.31 -8.19 USD/KRW 1,110.90 1,117.00 1,109.40 1,134.00 KOSPI 1,926.36 18.82 0.99 -5.16 JPY100/KRW 1,129.19 1,143.47 1,132.91 1,440.55 KOSDAQ 516.74 -3.63 -0.70 3.02 EUR/KRW 1,470.61 1,490.19 1,471.12 1,421.24 Dow Jones* 14,840.95 16.44 0.11 10.65 3Y Treasury 2.88 2.91 2.91 2.78 S&P 500* 1,638.17 3.21 0.20 12.02 3Y Corporate 3.25 3.28 3.35 3.29 NASDAQ* 3,620.30 26.95 0.75 16.32 DDR2 1Gb* 1.30 1.30 1.32 1.20 Philadelphia Semicon* 461.82 5.43 1.19 15.53 NAND 16Gb* 3.03 3.01 2.98 1.76 FTSE 100* 6,483.05 52.99 0.82 7.56 Oil (Dubai)* 111.84 111.33 105.04 108.72 Nikkei 225 13,388.86 -70.85 -0.53 25.27 Gold* 1,412.60 1,419.00 1,328.40 1,659.80 Hang Seng* 21,704.78 180.13 0.84 -6.89 Customer deposits (Wbn)* 17,802 17,681 17,633 18,559 Taiwan (Weighted) 8,021.89 104.23 1.32 3.12 Equity type BC (Wbn)(Aug. 28) 90,793 90,994 92,890 99,340 Note: * as of August 29, 2013 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 Electronics 237.55 NHN Entertainment 128.97 KODEX LEVERAGE 102.27 NHN 70.27 Hyundai Motor 88.05 Hotel Shilla 16.90 Hotel Shilla 41.99 Samsung Electronics 60.63 NHN 82.26 KB Financial Group 11.22 NHN Entertainment 38.53 Hyundai Motor 34.06 Kia Motors 55.03 LG Electronics 8.53 Samsung Corp. 21.96 Samsung SDI 20.68 Samsung Electronics (P) 24.89 KODEX INVERSE 7.94 KB Financial Group 20.84 Samsung F&M Insurance 17.86 Hynix 24.37 SEMCO 7.81 KT 17.55 Samsung Electronics (P) 12.17 Samsung F&M Insurance 24.10 Woori Finance Group 7.35 Woori Finance Group 11.63 SK Energy 9.53 KODEX 200 22.21 LG Innotek 6.26 Samsung Engineering 10.97 POSCO 9.12 KODEX LEVERAGE 19.52 SK Energy 5.60 Kia Motors 8.61 KODEX INVERSE 6.84 Hyundai Mobis 15.82 KT 4.30 LG Electronics 8.01 Halla Climate Control 5.39 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 STC 6.16 Celltrion 88.25 SM 8.53 STC 4.79 Partrion 4.00 Lumens 2.38 Sung Woo HiTech 3.66 Lumens 3.98 Paradise 3.40 Daum Communications 1.76 CJ E&M 2.98 SK Broadband 2.89 CJ O Shopping 2.95 Maeil Dairy Industry 1.04 Kornic Systems 2.15 CJ O Shopping 2.70 CJ E&M 2.32 Modetour Network 1.00 Seoul Semiconductor 1.66 Daum Communications 2.60 WAVE ELECTRO 1.81 GS Home Shopping 0.77 Vieworks 1.27 CTC Bio 2.03 China Food Packaging 1.60 Media Flex 0.63 GemVax 1.22 POSCO ICT 1.95 INICIS 1.56 LiHOM-CUCHEN 0.59 GS Home Shopping 1.14 KCP 1.71 Duk San Hi Metal 1.41 KH Vatec 0.58 KH Vatec 1.03 LMS Co. 1.30 POSCO ICT 1.21 Biotoxtech 0.56 Medy-tox 0.95 Sekonix 1.30 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 1,368,000 24,000 201,505 Celltrion 45,100 -7,900 4,533 Hyundai Motor 249,000 9,500 54,849 Seoul Semiconductor 37,450 -250 2,184 POSCO 322,500 1,000 28,118 CJ O Shopping 333,700 1,800 2,071 Kia Motors 67,200 2,600 27,240 Paradise 22,200 550 2,019 Hyundai Mobis 279,000 2,000 27,159 Ssangyong E&C 136,800 0 1,999 Samsung Life Insurance 106,000 500 21,200 Dongsuh 29,000 1,350 1,716 Samsung Electronics (P) 919,000 30,000 20,984 SK Broadband 5,020 -80 1,486 Hynix 28,250 800 20,063 CJ E&M 38,150 1,550 1,447 KEPCO 30,700 250 19,708 GS Home Shopping 211,400 -300 1,387 Shinhan Financial Group 40,900 1,100 19,395 POSCO ICT 9,170 -90 1,257 Source: Korea Exchange