December 18, 2013

Korea

Company News & Analysis Major Indices Close Chg Chg (%) Hyundai Mipo Dockyard (010620/Buy/TP: W210,000) KOSPI 1,974.63 8.89 0.45 Dominant player in a red ocean KOSPI 200 259.98 1.26 0.49 KOSDAQ 485.65 -0.50 -0.10 Mando (060980/Buy/TP: W170,000) Company visit comment Turnover ('000 shares, Wbn) Volume Value Simmtech (036710/Trading Buy/TP: W8,000) Lower TP KOSPI 254,192 3,688 Three-year earnings downtrend to end KOSPI 200 55,403 2,770 KOSDAQ 287,084 1,211

Market Cap (Wbn) Sector News & Analysis Value Tourism (Overweight) KOSPI 1,165,258 Volume-driven growth period to begin KOSDAQ 115,245 KOSPI Turnover (Wbn) Buy Sell Net Foreign 1,020 1,167 -147 Institutional 1,016 730 286 Retail 1,639 1,768 -130

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 79 68 11 Institutional 70 86 -17 Retail 1,059 1,053 6

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 907 703 204 KOSDAQ 20 15 5

Advances & Declines Advances Declines Unchanged KOSPI 391 404 88 KOSDAQ 392 525 81

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value ByucksanEng&Const 7,060 -850 349 Samsung Electronics 1,401,000 6,000 298 KODEX LEVERAGE 11,930 160 214 Hyundai Motor 227,500 500 188 Hynix 35,550 -1,050 167

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value CJ E&M 28,300 -2,850 173 Celltrion 37,850 -650 23 SMEC 4,750 -360 18 Taewoong 27,250 850 17 Hyunjin Materials 5,200 190 17 Note: As of December 18, 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.

Hyundai Mipo Dockyard (010620 KS) Dominant player in a red ocean

Shipbuilding 2013 orders likely to exceed the US$6bn level, far surpassing the company target Hyundai Mipo Dockyard (HMD), which had set an order target of US$3.2bn early this Company Report year, has already exceeded its goal, winning orders of US$5.87bn (169 vessels) so far. December 18, 2013 Notably, product carriers account for 76.1% of total orders. Global product carrier orders are estimated at around 160 vessels this year, of which HMD received 133, proving again that the company is the dominant player in the global small- and mid-sized (Maintain) Buy merchant ship red ocean. We believe that the company’s orders will comfortably exceed the US$6bn mark this Target Price (12M, W) 210,000 year, as it will likely win additional orders for product and LPG carriers by year-end. In 2014, we expect the company to continue to see order growth and newbuilding price Share Price (12/17/13, W) 181,000 hikes.

Expected Return 16% High-priced orders from BP th After lengthy negotiations, HMD announced on December 12 that it had secured a OP (13F, Wbn) -260 US$573mn deal with BP, the world’s second-largest oil major, for 14 product carriers. In Consensus OP (13F, Wbn) -230 our view, the order terms were favorable for HMD, given that: 1) the prices differ greatly by delivery date and vessel type and 2) the newbuilding prices under the deal are EPS Growth (13F, %) TTR significantly higher than under previous agreements. Market EPS Growth (13F, %) 12.9 P/E (13F, x) - Among the 14 ship orders, nine are for 50,000 DWT vessels and five are for 40,000 DWT Market P/E (13F, x) 10.9 vessels. The smaller vessels are priced at US$40mn, 50,000 DWT vessels due for delivery KOSPI 1,965.74 in 2016 at US$41mn, and 50,000 DWT vessels due for delivery in 2017 at US$42mn. The company did not want to increase its order backlog to over 2.5 years, but BP insisted on Market Cap (Wbn) 3,620 setting delivery dates in 2017. In exchange, HMD was able to secure higher prices for Shares Outstanding (mn) 20 ships slated for later delivery. In our view, the company was able to win high-priced Free Float (%) 52.3 orders due to its market dominance and strong competitiveness. Foreign Ownership (%) 21.4 Beta (12M) 1.14 Maintain Buy call with TP of W210,000 52-Week Low (W) 104,500 52-Week High (W) 189,000 We maintain our Buy call on HMD with a target price of W210,000 (based on a P/B of 1.6x and our 12-month forward BPS estimate). The company’s 2014 earnings are (%) 1M 6M 12M anticipated to stagnate. However, considering rising newbuilding prices and the Absolute -2.4 40.3 47.2 company’s massive order-taking, its turnaround is likely to outpace that of competitors. Relative -0.4 35.9 48.0 HMD has improved its competitiveness despite recording sluggish earnings. As such, we Share price 180 KOSPI advise investors to focus more on the company’s potential to lead price increases and 160 dominate the global market than on its current sluggishness. The shipbuilder has proven 140 its technological prowess by taking the world’s first orders for product carriers with 120 dual-fuel engines. Indeed, HMD has established itself as an unrivaled global shipbuilder in 100 the small- to mid-sized segment. We recommend that investors take note of the 80 12/12 4/13 8/13 12/13 shipbuilder’s differentiated position and future growth story.

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Revenue (Wbn) 4,138 4,624 4,415 3,802 4,086 4,495 Shipbuilding/Machinery OP (Wbn) 683 384 93 -260 -45 220 Ki-jong Sung OP margin (%) 16.5 8.3 2.1 -6.9 -1.1 4.9 +822-768-3263 NP (Wbn) 493 200 97 -216 -2 312 [email protected] EPS (W) 24,629 9,992 4,828 -10,811 -99 15,612

ROE (%) 14.7 5.5 3.0 -7.4 -0.1 12.1 P/E (x) 9.1 11.2 26.3 - - 11.6 P/B (x) 1.2 0.8 0.9 1.5 1.7 1.5 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.

Mando (060980 KS/Buy)

Company visit comment

 4Q13 earnings tracking lower than consensus Company Visit Note  Growth in China to continue into 2014 December 18, 2013  Maintain Buy rating with TP of W170,000

4Q13 earnings likely to slightly miss consensus Daewoo Securities Co., Ltd. After our meeting with Mando, we believe the company’s 4Q13 revenue and operating profit Auto/Auto parts/Tire are likely to miss the respective market consensus estimates of W1.51tr and W91.8bn (OP Michael Yun margin of 6.1%). We attribute the expected earnings miss to worse-than-anticipated +822-768-4169 production at Hyundai Motor’s (HMC) and Kia Motors’ Korean plants, along with a stronger [email protected] won. HMC’s October-November production in Korea declined by 4.3% YoY. Mando is guiding Young-ho Park revenue slightly below W1.5tr on an OP margin in the high-5% range. On a full-year basis, +822-768-3033 Mando is still on track to post solid top-line growth of close to 12%, with OP margin [email protected] improvement of 0.6%p. Sangmin Lee +822-768-4170 Growth in China still strong [email protected] While domestic operations have been weaker than expected, the Chinese business is on track to beat company targets in 2013 thanks to solid local sales by HMC and Kia. We believe Mando’s Chinese operations will continue to lead the company’s growth in 2014, thanks to new orders and new products. Mando’s Chinese joint venture with Geely should see its revenue jump by 65% YoY in 2014, thanks to the launches of new products (e.g., electric power steering (EPS) and anti-lock braking systems (ABS)). This should help the joint venture turn to black after two years of losses. In addition, Great Wall China will start contributing to sales in 2014. As the Chinese auto market’s overall mix improves, we see more potential for electronic parts (e.g., EPS, ABS) to be adopted by Chinese manufacturers, opening up more doors for Mando.

Maintain Buy rating with TP of W170,000

We maintain our Buy rating on Mando with a 12-month target price of W170,000. With Halla E&C’s recent sell-off of part of its Mando stake, investors have grown concerned that the builder might be strapped for cash. As a result, sentiment on Mando has turned cold once again on group-related worries. However, we believe Mando is unlikely to provide additional direct or indirect financial support to Halla E&C, as regulations have been tightened on aid between affiliates. Furthermore, Halla E&C’s asset disposal plans appear to be on track, as the HyHill sell-off should be finalized before year-end. On the bright side, Mando is likely to maintain double-digit top-line growth with margin improvement in 2014, thanks to strong Chinese operations and a steady rise in core electronic parts. Mando is supplying all major driver assistance system (DAS) parts for HMC’s new Genesis model, including smart cruise control, lane-keeping assistance, smart parking system, and blind-spot detection components. Thus, we believe investors should see further pullbacks as buying opportunities.

FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Revenue (Wbn) 3,640 4,560 5,059 5,752 6,402 7,129 OP (Wbn) 273 300 256 337 403 476 OP margin (%) 7.5 6.6 5.1 5.9 6.3 6.7 NP (Wbn) 202 224 163 211 274 330 EPS (W) 11,555 12,307 8,954 11,671 15,162 18,246 ROE (%) 19.3 17.4 11.4 13.3 15.3 15.9 P/E (x) 11.2 16.7 14.4 11.2 8.6 7.2 P/B (x) 2.1 2.8 1.6 1.5 1.3 1.1 Notes: All figures are based on consolidated K-IFRS; NP refers to profit attributable to controlling interests Source: Company data, KDB Daewoo Securities Research estimates

Simmtech (036710 KQ) Three-year earnings downtrend to end

2014 outlook: Margins to steadily recover In 2013, Simmtech’s fiscal year earnings are projected to come in far shy of expectations. We attribute the delay in the company’s turnaround to a fire at its plant Technology early in the year. For 2013, we estimate revenue at W531.4bn (-15.7% YoY) and operating losses at W19.1bn. In 4Q13, the company is projected to break even, with its Company Update revenue improving slightly to W142.0bn (+1.5% QoQ). December 18, 2013 Starting next year, Simmtech’s revenue and margins are anticipated to steadily improve. Of note, OP margin is forecast to rebound to 7-8% in 2H14 backed by accelerating growth of revenue from mobile-related substrates, including multi-chip packaging (Maintain) Trading Buy (MCP). We project 2014 revenue at W638.8bn (+20% YoY) and operating profit at W35.7bn (turning to black YoY) with an OP margin of 5.6%. Target Price (12M, W) 8,000 Catalyst: Three pillars of growth: MCP, FC-CSP and SSD modules Share Price (12/17/13, W) 6,250 ▶ Multi-chip packaging (MCP): Simmtech’s MCP revenue (mobile DRAM and NAND) should continue to rise, aided by the ongoing expansion of the mobile device market. Expected Return 28% This year, the company’s MCP revenue is estimated to come in at W155.9bn, accounting for a whopping 29% of total revenue. We expect this figure to climb further next year to W201bn (+29% YoY). OP (13F, Wbn) -19 Consensus OP (13F, Wbn) -19 ▶ Flip-chip chip-scale packages (FC-CSP): In this segment, Simmtech is targeting low- to mid-priced AP producers such as MediaTek and Spreadtrum (China). In the integrated EPS Growth (13F, %) TTR chip AP packaging arena, Kinsus of Taiwan is the world’s largest producer, but Simmtech Market EPS Growth (13F, %) 12.9 is forecast to gain market share, generating W29bn in revenue next year. P/E (13F, x) - Market P/E (13F, x) 10.9 ▶ SSD modules: Demand is steadily rising. Simmtech’s SSD module revenue is KOSDAQ 486.15 estimated at W16.6bn this year, and is expected to soar 105% YoY next year, to W34bn.

Market Cap (Wbn) 201 The combined revenue of Simmtech’s mobile-related substrates (MCP, CSP, FC-CSP, etc.) Shares Outstanding (mn) 32 is estimated to have reached W197.5bn in 2013, contributing 37% to total revenue. In Free Float (%) 73.7 2014, revenue is forecast to expand to W264bn (41% revenue contribution). Strong Foreign Ownership (%) 2.7 mobile-related substrate sales should offset falling PC-related revenue to some extent Beta (12M) 0.77 next year. 52-Week Low (W) 6,010 52-Week High (W) 11,100 Valuation: Lower TP by 20% to W8,000 (%) 1M 6M 12M Simmtech’s valuation has declined to a 2014F P/E of 8.2x and a P/B of 1.1x. The Absolute -13.2 -31.8 -37.0 company’s earnings are estimated to have fallen significantly below expectations in Relative -11.2 -36.2 -36.1 2013. Given the delay to the company’s earnings turnaround in 2H13, we lowered our 2014 operating profit forecast by 29.4% to W35.7bn and revised down our target price Share price 130 KOSDAQ by 20% to W8,000 (average of fair values based on 2014F P/B of 1.5x and P/E of 10x).

110 In 2014, the company’s earnings, which have steadily fallen for three years, will likely 90 pick up. As such, we believe that downside to the company’s shares will be limited. Risks 70 include: 1) the likelihood of intensifying competition in the MCP market and 2) potential 50 lower-than-expected FC-CSP market share gains. 12/12 4/13 8/13 12/13

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Semiconductor Revenue (Wbn) 577 612 631 531 639 716 OP (Wbn) 85 63 46 -19 36 46 James Song OP margin (%) 14.7 10.2 7.3 -3.6 5.6 6.4 +822-768-3722 [email protected] NP (Wbn) 71 42 25 -30 26 35 EPS (W) 2,590 1,435 792 -921 759 1,017

ROE (%) 93.2 27.0 12.6 -15.0 13.8 16.3

P/E (x) 5.5 8.5 13.0 - 8.2 6.1

P/B (x) 3.0 2.1 1.6 1.2 1.1 1.0 Note: All figures are based on non-consolidated K-IFRS 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.

Tourism (Overweight)

Volume-driven growth period to begin

 International tourism grew by 5% in the first nine months of 2013, outpacing the Sector Update previous estimate of 3-4%  Korea’s outbound travel market to enter the maturity stage December 18, 2013  Growth of Chinese inbound travelers to weaken in the short term

Daewoo Securities Co., Ltd. Volume-driven growth to begin Hotel/Leisure, Textiles/Apparel Korea’s outbound travel market saw its first boom in the 2000s as soaring income levels Regina Hahm prompted many Koreans to begin traveling overseas. The second boom, which started in 2010, +822-768-4172 was more driven by rising demand than by income growth. [email protected]

As an industry matures, purchase prices marginally decline while sales volume largely drives overall growth. This year, travel demand has risen at a stronger-than-expected pace, but packaged tour prices have steadily fallen. Moreover, duty-free-shop sales are not fully

absorbing the secular growth of outbound travelers.

Although the number of outbound travelers will likely continue to grow in 2014, increasing by

8.7% YoY, the overall outbound travel market should expand only modestly due to a steady decline in the prices of travel products. Travel agencies with high outbound travel revenue contributions will see both top- and bottom-line growth slowdowns, in our view.

Korean inbound travel market growth to slow in the short term

Growth of Chinese inbound travelers to weaken in the short term In 2013, the most notable development in the Korean inbound travel market has been the 54.9% YoY growth in the cumulative number of Chinese travelers during January-October. And the proportion of Chinese travelers in the Korean inbound market rose from 25.5% in 2012 to 36.5% in 2013 for the period.

Meanwhile, China’s new tourism law, which took effect in October, could drag down Chinese inbound tourism growth for one or two quarters. However, the structural momentum of Chinese outbound travel should remain unscathed, as the market is still in its nascent stages. In addition, Chinese travelers’ affinity for Korea as a tourist destination is growing markedly. Accordingly, the number of Chinese tourists to Korea is projected to increase 40.9% YoY in 2014, driving the domestic inbound tourism market.

Time to take a selective approach; Hotel Shilla is our top pick Given the current near-saturation conditions, the overall growth of the outbound travel market is likely to be outpaced by volume growth. On the other hand, the growth potential for inbound travelers might weaken in light of the slowing growth of Chinese travelers. But we are still positive on the outbound market given the rebound in Japanese visitors and an increase in individual Chinese tourists as a percentage of Chinese visitors.

We select Hotel Shilla as our top pick for the tourism sector, as it is best positioned to benefit from the fast-growing inbound travel market. And we advise investors to take a selective approach to tourism companies, as we maintain our Trading Buy ratings for both Hana Tour and Modetour Network.

Key Universe Valuations December 18, 2013

※All data as of close December 17, 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 205,483 1,395,000 1.0 33.8 11.1 35.5 11.5 7.6 6.8 1.6 1.3 23.8 21.6 005380 Hyundai Motor 50,003 227,000 0.8 2.8 8.5 3.4 3.7 7.3 7.1 1.3 1.1 18.3 16.3 005490 POSCO 28,423 326,000 2.5 -15.1 47.3 -24.9 56.9 15.1 9.7 0.7 0.6 4.6 6.9 012330 Hyundai Mobis 28,327 291,000 0.7 -3.9 18.5 -3.6 13.2 8.3 7.3 1.5 1.3 18.6 17.8 000660 SK Hynix 25,993 36,600 0.5 - 29.1 - 46.8 9.8 6.7 2.2 1.7 23.7 26.9 035420 NAVER 24,129 732,000 0.1 -25.2 89.8 4.9 80.2 61.5 34.1 12.4 9.7 23.1 41.2 000270 Kia Motors 21,971 54,200 1.1 -2.3 12.1 -0.1 10.4 5.7 5.2 1.2 1.0 20.7 19.1 055550 Shinhan Financial Group 21,007 44,300 0.2 -10.3 14.2 -10.1 13.7 11.2 9.8 0.8 0.7 7.1 7.6 015760 KEPCO 20,928 32,600 - 365.1 - - - 7.5 0.4 0.4 - 5.5 032830 Samsung Life 20,100 100,500 2.0 0.0 9.3 4.2 4.3 18.1 17.4 1.1 1.0 6.0 5.8 009540 Hyundai Heavy 19,190 252,500 0.4 -41.7 8.3 -49.3 73.8 38.5 22.1 1.2 1.1 2.9 4.8 051910 LG Chem 19,053 287,500 1.4 -4.6 20.3 -6.6 23.4 15.2 12.3 1.9 1.7 12.5 13.9 017670 SK Telecom 18,450 228,500 4.0 21.3 23.9 53.2 12.6 10.5 9.3 1.6 1.5 13.9 14.0 105560 KB Financial Group 15,164 39,250 -3.3 11.4 3.8 11.4 8.6 7.8 0.6 0.6 6.9 7.4 096770 SK Innovation 12,714 137,500 2.1 -4.1 45.6 -16.7 67.9 13.0 7.8 0.9 0.8 6.3 9.9 000810 Samsung F&M 12,010 253,500 2.8 20.2 14.1 19.2 14.4 11.1 9.7 1.2 1.1 11.7 11.9 086790 Hana Financial Group 11,494 39,650 -8.7 10.0 -22.8 12.7 8.3 7.4 0.6 0.6 8.8 7.3 066570 LG Electronics 11,079 67,700 0.4 11.1 51.7 500.5 142.5 30.5 12.6 1.1 1.0 3.2 7.6 003550 LG Corp. 10,612 61,500 1.5 -11.3 19.9 -1.4 11.5 11.7 10.5 0.9 0.9 8.0 8.5 033780 KT&G 10,269 74,800 4.1 -5.6 6.6 -10.0 16.6 15.5 13.3 1.9 1.8 12.7 14.0 000830 Samsung C&T 9,139 58,500 0.8 -3.2 43.3 -15.3 37.5 24.6 17.9 0.9 1.0 3.4 4.7 034220 LG Display 8,784 24,550 2.1 16.1 -46.6 89.9 -8.7 19.8 21.7 0.9 0.9 4.3 3.8 010140 Samsung Heavy 8,589 37,200 -1.6 -5.0 12.6 -1.4 9.6 9.7 1.3 1.1 15.7 13.5 003600 SK Holdings 8,571 182,500 1.5 -3.5 34.8 -1.3 22.4 8.4 6.8 2.1 1.6 8.9 10.2 051900 LG Household & Health Care 8,200 525,000 0.7 15.7 12.3 16.0 14.5 26.4 23.1 6.0 4.8 26.2 24.4 086280 Hyundai Glovis 8,175 218,000 1.0 4.1 12.7 1.8 16.7 16.1 13.8 3.5 2.9 23.6 22.4 010950 S-Oil 8,162 72,500 3.0 -29.1 121.6 -30.4 135.6 20.8 8.8 1.6 1.4 7.5 16.5 030200 KT 8,094 31,000 5.7 -1.7 8.3 -42.8 41.4 13.4 9.5 0.8 0.8 4.9 6.8 011170 Lotte Chemical 8,072 235,500 0.9 36.5 77.8 18.0 78.6 20.2 11.3 1.3 1.2 6.4 10.7 006400 Samsung SDI 7,540 165,500 0.9 -70.5 253.7 -70.1 46.5 17.7 12.1 1.1 1.0 5.9 8.5 161390 Hankook Tire 7,507 60,600 0.9 238.5 10.9 244.1 9.3 9.4 8.6 1.9 1.6 21.9 19.3 004020 Hyundai Steel 7,141 83,700 0.6 -12.7 63.8 -23.5 20.4 11.7 9.7 0.7 0.7 6.0 6.9 042660 DSME 6,756 35,300 0.9 -14.7 60.0 -11.0 131.5 34.2 14.8 1.4 1.3 4.2 9.1 035250 Kangwon Land 6,718 31,400 2.9 10.5 13.8 18.4 12.5 19.1 17.0 2.4 2.3 14.2 14.7 000720 Hyundai E&C 6,637 59,600 1.1 9.4 12.5 9.7 10.0 11.9 10.8 1.3 1.2 11.7 11.7 034730 SK C&C 6,525 130,500 1.2 11.6 5.0 31.9 1.8 13.9 13.7 2.3 2.1 19.7 17.8 024110 Industrial Bank of Korea 6,327 11,500 0.3 -26.5 16.3 -19.6 16.1 7.9 6.8 0.5 0.5 6.6 7.3 088350 Hanwha Life 6,149 7,080 3.5 - - 3.5 1.6 9.8 9.6 0.8 0.8 8.6 8.3 036460 KOGAS 5,991 64,900 -4.4 26.3 - - - 15.0 1.0 1.0 - 4.4 090430 Amorepacific 5,746 983,000 0.7 -4.1 10.2 -2.1 14.9 25.7 22.4 2.8 2.5 10.8 11.3 009150 Samsung Electro-Mechanics 5,527 74,000 1.3 4.1 7.9 -1.3 9.4 13.2 12.1 1.4 1.3 10.7 10.8 001800 Orion 5,409 906,000 0.3 -2.6 4.1 -3.0 11.8 36.8 32.9 5.2 4.5 14.0 13.8 036570 NCsoft 5,325 243,000 0.5 41.5 81.8 19.5 100.1 28.6 14.3 4.6 3.5 17.2 27.7 010130 Korea Zinc 5,246 278,000 1.6 -17.4 26.3 -15.1 29.7 11.0 8.5 1.3 1.1 11.7 13.5 078930 GS 5,045 54,300 2.4 11.2 26.9 2.7 21.3 10.1 8.4 0.8 0.8 7.8 8.9 011210 Hyundai Wia 5,005 194,500 0.3 2.6 16.9 4.6 19.7 11.4 9.6 2.3 1.9 21.2 20.5 021240 COWAY 4,921 63,800 3.5 42.7 8.6 117.9 -0.2 18.9 18.9 5.8 4.8 30.5 26.0 001300 Cheil Industries 4,546 86,700 0.8 -6.8 26.5 81.6 -18.1 12.0 14.7 1.6 1.7 11.6 9.5 047050 Daewoo International 4,544 39,900 0.8 4.8 105.7 13.0 33.6 19.0 14.2 5.9 5.6 10.5 12.8 032640 LG Uplus 4,432 10,150 1.7 348.9 23.6 - 46.0 14.5 9.9 1.3 1.2 7.8 10.5 Source: KDB Daewoo Securities Research

Market Data December 18, 2013

※All data as of close December 18, 2013, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 436.16 1.61 0.37 1.62 USD/KRW 1,051.50 1,052.60 1,066.70 1,072.90 KOSPI 1,974.63 8.89 0.45 -2.78 JPY100/KRW 1,025.15 1,021.35 1,063.30 1,279.24 KOSDAQ 485.65 -0.50 -0.10 -3.18 EUR/KRW 1,447.92 1,448.48 1,438.60 1,412.15 Dow Jones* 15,875.26 -9.31 -0.06 18.36 3Y Treasury 2.90 2.88 2.94 2.90 S&P 500* 1,781.00 -5.54 -0.31 21.78 3Y Corporate 3.32 3.30 3.37 3.33 NASDAQ* 4,023.68 -5.84 -0.14 29.28 DDR2 1Gb* 1.56 1.56 1.47 1.17 Philadelphia Semicon* 517.18 5.03 0.98 29.38 NAND 16Gb* 3.44 3.45 3.54 1.88 FTSE 100* 6,486.19 -36.01 -0.55 7.61 Oil (Dubai)* 106.08 107.04 106.43 104.87 Nikkei 225 15,587.80 309.17 2.02 45.84 Gold* 1231.2 1245.5 1,287.40 1,697.00 Hang Seng* 23,069.23 -45.43 -0.20 -1.04 Customer deposits (Wbn)* 13,630 13,497 14,798 17,220 Taiwan (Weighted) 8,349.04 -3.89 -0.05 7.32 Equity type BC (Wbn)(Dec. 16) 83,609 83,456 84,196 94,900 Note: * as of December 17, 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 SK Telecom 11.33 Hyundai Motor 52.46 Hyundai Motor 54.75 Hynix 21.77 LG Electronics 9.01 Samsung Electronics 25.63 Samsung Electronics 31.14 SEMCO 8.00 Hana Financial Group 6.98 TIGER200 22.32 KODEX LEVERAGE 27.19 LG Electronics 6.92 HYUNDAI WIA 4.63 NHN 16.75 Kia Motors 22.94 Kumho Petrochemical 6.46 Kumho Petrochemical 4.10 KODEX 200 12.70 TIGER200 20.59 KODEX INVERSE 5.00 NHN Entertainment 4.08 Kia Motors 11.16 KB Financial Group 18.71 Daelim Industrial 3.93 Korea Plant Service & HANJINKAL 3.75 Hyundai Heavy Industries 11.07 KODEX 200 15.08 3.72 Engineering Cheil Industries 3.72 POSCO 10.39 LG Chem 14.35 NHN Entertainment 3.26 Industrial Bank of Korea 3.72 KB Financial Group 10.38 LG Display 14.02 LG International 2.85 Woori Finance Group 3.71 DHICO 9.69 POSCO 13.63 Samsung SDI 2.50 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 GS Home Shopping 3.10 Partrion 2.03 POSCO ICT 1.63 CJ E&M 10.28 CJ E&M 2.73 Taewoong 1.93 Techno Semichem 1.38 SFA Engineering 3.88 Seoul Semiconductor 2.72 Sekonix 1.56 SM 1.17 Duk San Hi Metal 2.54 Huons 1.24 OSSTEM IMPLANT 1.13 Sekonix 1.15 Maeil Dairy Industry 1.98 InkTec 0.92 Sung Kwang Bend 1.01 ViroMed 0.80 GS Home Shopping 1.77 Kolon Life Science 0.86 KREIT 0.92 Sung Kwang Bend 0.79 KMW 1.67 NaturalendoTech 0.85 Celltrion 0.72 HaanSoft 0.75 Interpark 1.66 Silicon Works 0.80 Daum Communications 0.71 Wemade 0.72 Kornic Systems 1.48 CJ O Shopping 0.73 GD 0.67 GemVax 0.71 ATTO 1.09 CrucialTec 0.68 TPC 0.64 Medy-tox 0.60 SEEGENE 0.73 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 1,401,000 6,000 206,366 Celltrion 37,850 -650 3,804 Hyundai Motor 227,500 500 50,113 CJ O Shopping 396,000 4,000 2,457 POSCO 328,000 2,000 28,597 Paradise 25,900 500 2,355 Hyundai Mobis 292,000 1,000 28,424 Seoul Semiconductor 39,500 950 2,303 Hynix 35,550 -1,050 25,248 Ssangyong E&C 136,800 0 1,999 Samsung Electronics (P) 1,038,000 -12,000 23,701 GS Home Shopping 281,000 2,700 1,844 NHN 710,000 -22,000 23,404 SK Broadband 4,365 -35 1,292 Kia Motors 54,500 300 22,092 Daum Communications 88,500 200 1,200 Shinhan Financial Group 45,500 1,200 21,576 CJ E&M 28,300 -2,850 1,096 KEPCO 32,850 250 21,089 Dongsuh 17,200 200 1,018 Source: Korea Exchange