October 7, 2014

KOREA

Company News & Analysis Major Indices Close Chg Chg (%) Kangwon Land (035250/Buy/TP: W45,000) Raise TP KOSPI 1,972.91 4.52 0.23 Surge in Chinese tourists expected for winter ski season KOSPI 200 249.93 0.74 0.30 KOSDAQ 562.82 -3.45 -0.61 SK Hynix (000660/Buy/TP: W57,000) Don’t overreact to SEC’s plant announcement Turnover ('000 shares, Wbn) Volume Value Orion (001800/Buy/TP: W1,050,000) KOSPI 324,339 3,778 A China consumer play that deserves renewed attention KOSPI 200 66,422 2,810 KOSDAQ 331,627 2,040

Koh Young Technology (098460/Not Rated) Market Cap (Wbn) More than meets the eye Value KOSPI 1,177,791 KOSDAQ 138,428

KOSPI Turnover (Wbn) Buy Sell Net Foreign 1,061 1,226 -166 Institutional 886 757 129 Retail 1,800 1,777 23

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 136 145 -9 Institutional 103 109 -6 Retail 1,798 1,781 17

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 787 785 2 KOSDAQ 24 25 0

Advances & Declines Advances Declines Unchanged KOSPI 382 447 59 KOSDAQ 412 536 61

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Hynix 44,700 0 248 Samsung Electronics 1,162,000 11,000 224 KODEX LEVERAGE 10,705 25 197 Hyundai Motor 182,000 -2,500 111 Hyundai Merchant Marine 11,750 850 111

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Celltrion 43,700 -4,850 100 Com2us 159,900 -7,100 79 Daum Communications 156,800 2,000 59 SundayToz 22,000 400 59 LiHOM-CUCHEN 14,450 -900 48 Note: As of October 7, 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.

Kangwon Land (035250 KS) Surge in Chinese tourists expected for winter ski season

Entertainment 3Q preview: VIP normalization to drive solid growth Following capacity additions, Kangwon Land’s casino earnings indicators (table turnover, Earnings Preview drop per head, etc.) have continuously improved, with the exception of the number of October 7, 2014 general visitors, which has been falling due to an admissions price hike (from W5,000 to W7,500).

For 3Q, we project Kangwon Land’s overall revenue to come in at W408bn (+9% YoY), (Maintain) Buy driven by a 10% YoY rise in casino revenue . We estimate 3Q operating profit rose 13.5% YoY. We believe the solid growth in 3Q was led by VIP revenue, which appears to be Target Price (12M, W) 45,000 normalizing after several setbacks (celebrity gambling scandals and audits of weekday visits by public officials). Share Price (10/06/14, W) 34,000 In 4Q13, the casino operator recorded a contingent liability of W54.2bn related to a Expected Return 32% lawsuit filed by its labor union calling for fixed bonuses and allowances to be recognized as ordinary wages. A court ruling is expected in mid-October; a verdict favorable to

Kangwon Land would allow the firm to write back the liability, providing an additional OP (14F, Wbn) 522 lift to profit. Consensus OP (14F, Wbn) 509 Number of Chinese visitors still small, but growing fast EPS Growth (14F, %) 32.6 Market EPS Growth (14F, %) 7.9 The casino’s number of Chinese visitors, while still small, is rapidly rising . The monthly P/E (14F, x) 18.4 average number of foreign visitors to the casino jumped from 800 in 2013 to 1,200- Market P/E (14F, x) 11.9 1,300 in 3Q14, and to 1,600 more recently. We attribute the sharp growth to 1) the KOSPI 1,968.39 April introduction of a 72-hour visa waiver program for Chinese tourists entering through Yangyang International Airport in Kangwon province, and 2) the extension of Market Cap (Wbn) 7,274 the visa-free stay in July to 120 hours. During China’s recent “Golden Week,” about Shares Outstanding (mn) 214 5,000 Chinese tourists are estimated to have arrived via Yangyang Airport. Free Float (%) 58.4 Foreign Ownership (%) 26.8 Kangwon Land currently operates eight foreigner-only mass tables and is undertaking a Beta (12M) 0.64 number of activities to attract Chinese tourists, including signing a memorandum of 52-Week Low 28,000 understanding (MOU) with China’s largest travel agency, CTS. 52-Week High 36,500 We believe the upcoming winter ski season—the first since the visa-free program was (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M adopted at the Yangyang Airport—will bring a meaningful increase in Chinese visitors. Absolute -4.0 10.7 19.9 Relative 0.0 11.9 21.7 Maintain Buy and Raise TP to W45,000

140 Kangwon Land KOSPI Out of the casino’s 200 tables, the 33 tables that remain idle because of a shortage of 130 dealers are expected to become operational in 1Q15, p ointing to more room for growth. 120 110 We maintain Buy on Kangwon Land and raise our target price to W45,000 (from 100 W40,000). Our target price is based on our 2015F DPS of W1,150, divided by a dividend 90 yield of 2.5%, the stock’s median dividend yield during the past decade. 80 9.13 1.14 5.14 9.14

Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/11 12/12 12/13 12/14F 12/15F 12/16F Revenue (Wbn) 1,266 1,296 1,361 1,508 1,631 1,729 [Internet/Game/Entertainment] OP (Wbn) 490 405 388 522 579 620

Chang-kwean Kim OP margin (%) 38.7 31.3 28.5 34.6 35.5 35.9 +822-768-4321 NP (Wbn) 381 306 298 395 460 502 [email protected] EPS (W) 1,782 1,431 1,391 1,844 2,152 2,347 ROE (%) 17.5 13.2 12.2 14.9 15.9 15.9 Jeong-yeob Park +822-768-4124 P/E (x) 15.3 20.4 22.2 18.4 15.8 14.5 [email protected] P/B (x) 2.4 2.5 2.5 2.5 2.3 2.1 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. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.

SK Hynix (000660 KS/Buy)

Don’t overreact to SEC’s plant announcement Technology ¢ SEC unveils plan to invest W15.6tr in new chip plant by 2017 ¢ DRAM overcapacity worries are overblown: 1) SEC has not yet decided what it will News Comment produce at the new facility, and 2) production is not expected to begin until 2H17 October 7, 2014 ¢ Maintain Buy and TP of W57,000 on SK Hynix; Buy on dips

Daewoo Securities CCo.,o., Ltd. What’s new: SEC unveils plan to invest W15.6tr in new chip plant by 2017

[Semiconductor] On October 6 th , Samsung Electronics (SEC) announced plans to build a new W15.6tr chip manufacturing plant in the Pyeongtaek industrial complex by 2017. The company will make Will Cho +822-768-4306 the investment more than a year earlier than originally planned, which we believe was a [email protected] response not only to growing chip demand, but also to government policies to spur investment. The plant is expected to break ground in 1H15 and commence production in Joon-ho Jang +822-768-3241 2H17. Neither the type of chips to be produced at the new plant nor its capacity has yet been [email protected] determined. We expect these decisions to be made after 2H15.

Our view: DRAM overcapacity worries overblown

SK Hynix shares plunged 5.1% on the day of SEC’s announcement. The news sparked concerns that DRAM chip makers, led by SEC, will resume their investment cycles, and that the subsequent rise in capacity will push down prices.

However, we believe worries over DRAM overcapacity are overblown. First, SEC has not yet decided what types of chips it will produce at the new line. Second, the production schedule (2H17) suggests SEC does not plan to aggressively ramp up DRAM capacity, but is rather making more of a medium- to long-term move to prepare for increasing demand.

As evidence, we note the measured pace at which SEC has been converting its new S3 line (Line 17) to DRAM production. We believe SEC’s focus is not to aggressively expand market share, but to maximize profits by taking a more flexible approach to the use of its production lines.

Action: Maintain Buy and TP of W57,000; Buy on dips

It is still too early to know whether SEC’s latest investment will focus on DRAM. On the contrary, SEC’s recent behavior regarding DRAM capacity expansion, as well as the timing of the new plant’s operation, suggest DRAM supply and demand will remain stable at least through 2016. The investment announcement will admittedly undermine sentiment on SK Hynix, but we see only a limited impact on SK Hynix’s fundamentals. In sum, we do not expect material changes in DRAM supply and demand through 2016. We recommend buying SK Hynix on weakness, and maintain our target price of W57,000.

FY (Dec.) 12/11 12/12 12/13 12/14F 12/15F 12/16F Revenue (Wbn) 10,396 10,162 14,165 16,059 16,574 15,608 OP (Wbn) 369 -227 3,380 4,627 4,820 4,473 OP margin (%) 3.5 -2.2 23.9 28.8 29.1 28.7 NP (Wbn) -57 -159 2,872 3,342 3,645 3,446 EPS (W) -96 -233 4,099 4,661 5,035 4,761 ROE (%) -0.7 -1.8 25.2 22.6 19.9 15.8 P/E (x) - - 9.0 9.6 8.9 9.4 P/B (x) 1.7 1.8 2.0 2.0 1.6 1.4 Notes: All figures are based on consolidated K-IFRS; NP refers to profit attributable to controlling interests Source: Company data, KDB Daewoo Securities Research estimate

Orion (001800 KS) A China consumer play that deserves renewed attention

Food & Beverage 3Q preview: China sales slowly picking up We forecast Orion to post 3Q consolidated revenue and operating profit of W645.9bn Earnings Preview (+2.6% YoY) and W72.6bn (+2.3% YoY), respectively. At the parent company (domestic October 7, 2014 sales and direct exports), we estimate revenue fell 3.1 % YoY and operating profit shrank 10.5% YoY. The contraction in domestic sales was likely due to 1) weaker volume

following price hikes, and 2) stronger sales of foreign and private brand snacks. (Maintain) Buy We estimate China revenue grew 4.7% YoY in won terms and 13-15% YoY in CNY terms , driven by 1) a modest pickup in China’s confectionery market after a sluggish 1H (+2-3% Target Price (12M, W) 1,050,000 YoY), and 2) the company’s expansion into traditional trade channels. We believe operating profit in China rose 8% YoY, outpacing revenue growth. Share Price (10/06/14, W) 854,000 Looking elsewhere, we estimate revenue in Vietnam and Russia increased 10-20 % YoY Expected Return 23% based on local currencies, but remained stagnant in won terms. Meanwhile, the Sports ToTo business (expected to be discontinued in October) likely saw both revenue and

operating profit growth thanks to the Asian Games. OP (14F, Wbn) 263 Consensus OP (14F, Wbn) 276 Key issues: 1) Domestic sales recovery, and 2) China growth

EPS Growth (14F, %) 2.0 Domestic sales are expected to decline for the second consecutive year in 2014, falling 3.4% Market EPS Growth (14F, %) 8.1 YoY. In 2015, however, we forecast sales to grow more than 5%, aided by 1) easing of P/E (14F, x) 34.3 backlash against price increases, and 2) release of new products. We also expect operating Market P/E (14F, x) 12.0 profit to improve 7% in 2015, recovering from three straight years of decline, on the back of KOSPI 1,968.39 management’s profit-oriented strategy (SG& A cost reductions and merger with Orion Snack International). The recent advance of private brands in domestic convenience stor es poses a Market Cap (Wbn) 5,102 key threat to Orion, and we believe the company needs to respond through mergers and Shares Outstanding (mn) 6 acquisitions, as well as new product launches (e.g. premium chocolates). Free Float (%) 59.3 Foreign Ownership (%) 43.7 As for China sales, we believe 1H14 marked a bottom. External headwinds beyond Beta (12M) 1.08 Orion’s control (i.e. discount store restructurings, slowing consumption, and regulations 52-Week Low 769,000 against gift certificates) are likely to subside in 2015. Other positives include 1) rising 52-Week High 1,035,000 utilization at the Shenyang plant, 2) capacity expansion at the Guangzhou plant, and 3) (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M the company’s continued expansion of its presence in traditional trade channels (from Absolute -3.5 5.6 -10.1 160,000 stores in 2013 to 230,000 stores in 2014). We see traditional trade channels Relative 0.5 6.6 -8.8 accounting for half of overall China sales by 2018.

110 Orion KOSPI Reiterate Buy and TP of W1,050,000

100 Lately, many F&B stocks have come under pressure due to the rising US$/W rate. Orion,

90 on the other hand, remains largely unaffected by US$/W fluctuations. Though the stock was left behind in the recent rally of China consumer plays (investors flocked to 80 cosmetics stocks), we expect Orion to regain investor attention as China sales p ick up in 70 2H. We advise investors to take an overweight view on the stock, and closely monitor 9.13 1.14 5.14 9.14 the company’s China growth in the coming quarters.

Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/11 12/12 12/13 12/14F 12/15F 12/16F Revenue (Wbn) 1,913 2,368 2,485 2,483 2,524 2,771 [F&B/Tobacco] OP (Wbn) 215 264 259 263 280 306

Woon-mok Baek OP margin (%) 11.2 11.1 10.4 10.6 11.1 11.0 +822-768-4158 NP (Wbn) 99 152 146 149 173 190 [email protected] EPS (W) 16,660 25,413 24,407 24,903 28,951 31,784 ROE (%) 13.0 16.3 13.8 12.7 13.4 13.0 Jung-yeon Kwon +822-768-4161 P/E (x) 40.7 43.2 38.9 34.3 29.5 26.9 [email protected] P/B (x) 4.5 6.5 5.0 4.1 3.7 3.3 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

Koh Young Technology (098460 KQ) More than meets the eye

US NDR: Investors show keen interest in 3D AOI and new business areas We recently joined Koh Young Technology on a non-deal road show (NDR), meeting Event Summary with more than 10 institutional investors on the US east coast. Investors showed strong October 7, 2014 interest in both the growth potential of the company, as well as the 3D inspection equipment market. In particular, many investors took note of the transition in

automated optical inspection (AOI) from 2D to 3D, and frequently asked whether 3D Not Rated AOI equipment could replicate the strong growth of 3D solder paste inspectio n (SPI) equipment during the past decade. Target Price (12M, W) - Another major area of interest was the company’s new businesses in 3D semiconductor packaging inspection equipment, and surgical robot s. Investors were encouraged by the Share Price (10/06/14, W) 29,550 company’s ongoing efforts to drive new growth on top of the high growth potential of the 3D AOI equipment segment. Expected Return -

Earnings & catalysts: 3D AOI to mirror growth curve of 3D SPI OP (14F, Wbn) 28 For 3Q, we expect revenue of W34.1bn and operating profit of W7bn. We believe 3D AOI Consensus OP (14F, Wbn) 27 revenue continued to grow, but 3D SPI revenue likely declined on seasonal weakness , causing overall revenue and operating profit to slightly fall QoQ. On a YoY basis, however, EPS Growth (14F, %) 51.0 we estimate revenue and operating profit rose 25% and 50%, respectively. Market EPS Growth (14F, %) 8.1 P/E (14F, x) 17.7 Looking ahead to 4Q, we forecast revenue to reach a record quarterly high of W37.7bn, Market P/E (14F, x) 11.9 driven by robust sales from the company’s two biggest downstream industries: mobile KOSDAQ 566.27 devices and automotive electronics. As such, we expect record-breaking earnings for the full year: revenue of W138bn (+33% YoY) and operating profit of W28.1bn (+58% YoY). Market Cap (Wbn) 397 Shares Outstanding (mn) 13 The biggest near-term earnings catalyst is indeed the rapid penetration of 3D AOI. Most Free Float (%) 79.9 2D AOI makers already seem to agree that inspections before and after the reflow Foreign Ownership (%) 35.8 process (the final stage of surface mounting) must also shif t to 3D technology. Koh Beta (12M) 0.61 Young remains the only company capable of mass producing 3D AOI equipment. We 52-Week Low 17,614 believe it will take some time before latecomers to 3D AOI catch up, as the technology is 52-Week High 29,550 more sophisticated than 3D SPI. We thus expect Koh Young’s 3D AOI equipment sales (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M to grow for some time at least as fast as its 3D SPI sales did. Absolute 7.8 34.6 35.0 Valuation: Still cheaper than global peers Relative 9.0 33.2 26.9 Even after recent gains, the stock is still trading at a 12-month forward P/E of 12.9x,

150 Koh Young KOSDAQ which is lower than 1) global semiconductor/surface-mounting technology (SMT) back- 130 end companies’ 12-month forward P/E (14.8x), and 2) the stock’s three-year average

110 multiple (16.5x). We see strong upside to earnings, given 3D AOI equipment’s high growth potential and margins, as well as earnings contribution from 3D semiconductor 90 packaging-inspection equipment. 70 9.13 1.14 5.14 9.14

Daewoo Securities CCo.,o., Ltd. FY (12) 12/10 12/11 12/12 12/13 12/14F 12/15F Revenue (Wbn) 71 80 101 104 138 171 [Small Cap] OP (Wbn) 19 19 20 18 28 38

Will Lee OP Margin (%) 26.8 23.8 19.8 17.3 20.3 22.2 +822-768-4168 NP (Wbn) 16 17 15 15 22 32 [email protected] EPS (W) 1,240 1,281 1,105 1,103 1,665 2,410

ROE (%) 34.6 26.4 19.2 16.1 20.4 24.3 P/E (x) 9.7 16.1 17.0 16.9 17.7 12.3 P/B (x) 2.8 3.8 2.9 2.5 3.3 2.7 Notes: All figures are based on non-consolidated K-IFRS Source: Company data, KDB Daewoo Securities Research estimates

Key Universe Valuations October 7, 2014

※All data as of close October 6, 2014, unless otherwise noted.

14F Earnings growth Mkt Cap Price P/E (x) P/B (x) ROE (%) Ticker Company Div Yield OP EPS (Wbn) (W) (%) 14F 15F 14F 15F 14F 15F 14F 15F 14F 15F 005930 Samsung Electronics 171,162 1,162,000 1.3 -33.1 -5.8 -26.4 -4.0 9.0 9.4 1.2 1.1 14.3 12.3 005380 Hyundai Motor 40,090 182,000 1.1 0.2 4.6 -1.3 4.1 6.2 5.9 0.9 0.8 15.2 13.9 000660 SK Hynix 32,391 44,700 36.9 4.2 13.7 8.0 9.6 8.9 2.0 1.6 22.6 19.9 015760 KEPCO 31,039 48,350 2.3 296.4 18.7 3984.2 46.1 12.7 8.7 0.6 0.6 4.8 6.6 005490 POSCO 26,679 306,000 2.6 15.8 36.7 16.4 86.3 16.7 8.9 0.6 0.6 3.8 6.8 035420 NAVER 25,381 770,000 0.1 59.7 32.3 -64.7 56.8 48.0 30.6 9.7 7.4 30.7 34.8 012330 Hyundai Mobis 24,141 248,000 0.8 6.3 12.4 11.1 7.0 6.4 5.9 1.0 0.9 17.4 16.0 055550 Shinhan Financial Group 22,928 48,350 - - - - 0.0 0.0 000270 Kia Motors 22,741 56,100 1.3 -4.6 9.0 -3.6 3.7 6.2 6.0 1.0 0.8 16.9 15.2 017670 SK Telecom 22,447 278,000 3.4 3.1 12.4 17.6 10.6 11.6 10.5 1.3 1.2 13.8 13.9 032830 Samsung Life 21,200 106,000 - - - - 0.0 0.0 051910 LG Chem 16,038 242,000 1.7 -15.3 26.0 -13.8 30.7 16.4 12.5 1.5 1.3 9.1 11.1 105560 KB Financial Group 14,952 38,700 - - - - 0.0 0.0 090430 Amorepacific 13,557 2,319,000 0.3 54.0 19.6 50.0 21.4 39.8 32.8 5.5 4.8 14.8 15.7 000810 Samsung F&M 13,218 279,000 - - - - 0.0 0.0 003550 LG Corp. 12,700 73,600 1.4 5.6 18.0 11.4 18.5 12.2 10.3 1.0 0.9 8.6 9.4 033780 KT&G 12,507 91,100 3.6 8.2 2.9 37.5 8.7 15.9 14.7 2.1 1.9 14.4 14.5 034730 SK C&C 12,200 244,000 0.5 16.9 9.9 142.2 15.8 26.7 23.0 3.8 3.3 17.8 17.6 000830 Samsung C&T 11,857 75,900 0.7 40.6 30.7 110.4 27.8 23.9 18.7 1.0 1.0 4.6 5.6 034220 LG Display 11,701 32,700 16.4 -8.8 132.3 -12.3 11.8 13.5 1.0 1.0 9.0 7.3 086280 Hyundai Glovis 11,513 307,000 0.5 7.0 10.5 37.3 -9.2 17.4 19.2 4.0 3.3 25.3 18.9 086790 Hana Financial Group 11,030 38,050 - - - - 0.0 0.0 066570 LG Electronics 10,719 65,500 0.5 61.1 21.6 470.7 46.5 11.7 8.0 1.0 0.9 8.4 11.3 023530 Lotte Shopping 9,951 316,000 0.5 0.3 8.3 -1.3 15.3 12.8 11.1 0.6 0.6 4.7 5.2 009540 Hyundai Heavy Industries 9,082 119,500 1.7 - - - - - 11.1 0.5 0.5 - 4.8 030200 KT 8,995 34,450 -96.2 5483.2 - - - 10.2 0.8 0.7 - 7.8 006400 Samsung SDI 8,252 120,000 1.3 - - -43.1 148.2 76.1 30.7 1.1 1.1 1.5 3.5 003600 SK Holdings 8,195 174,500 1.4 6.3 29.8 278.9 34.0 7.7 5.8 0.6 0.6 8.9 10.9 004020 Hyundai Steel 8,100 69,500 0.7 72.4 7.8 -16.6 7.6 10.3 9.6 0.6 0.5 5.8 5.9 051900 LG Household & Health Care 7,809 500,000 0.8 -0.3 12.0 -5.7 12.5 26.3 23.4 5.1 4.3 21.8 20.7 002380 KCC 7,438 707,000 1.1 40.7 7.9 3.2 10.2 29.1 26.4 1.4 1.4 5.0 5.4 035250 Kangwon Land 7,188 33,600 2.9 34.6 10.9 32.6 16.7 18.2 15.6 2.4 2.2 14.9 15.9 010130 Korea Zinc 7,133 378,000 1.3 12.2 19.5 15.6 23.2 13.8 11.2 1.5 1.4 11.8 13.0 096770 SK Innovation 7,018 75,900 3.3 -65.9 216.0 -68.9 390.9 31.3 6.4 0.5 0.4 1.4 6.9 021240 Coway 6,478 84,000 2.2 11.1 14.8 9.0 16.5 24.3 20.8 5.5 4.8 26.5 26.8 000720 Hyundai E&C 6,403 57,500 0.9 34.7 16.3 11.7 31.2 11.4 8.7 1.2 1.1 11.0 13.0 161390 Hankook Tire 6,367 51,400 0.9 -0.6 8.2 -2.6 14.2 8.9 7.8 1.4 1.2 17.2 16.9 088350 Hanwha Life 5,984 6,890 - - - - 0.0 0.0 139480 Emart 5,924 212,500 0.7 -5.2 12.4 -6.1 18.1 13.5 11.4 0.8 0.8 6.4 7.0 011210 Hyundai Wia 5,519 214,500 0.2 9.2 16.7 11.6 13.9 11.8 10.4 2.0 1.7 18.8 18.0 010140 Samsung Heavy Industries 5,449 23,600 2.1 -63.8 138.9 -55.1 117.9 19.2 8.8 0.8 0.8 4.8 9.8 032640 LG Uplus 5,043 11,550 1.6 0.2 21.0 -6.9 37.9 19.4 14.1 1.2 1.1 6.4 8.4 001800 Orion 5,001 837,000 0.4 1.7 6.3 2.0 16.3 33.6 28.9 4.1 3.6 12.7 13.4 097950 CJ CheilJedang 4,991 380,500 0.5 48.7 26.2 75.1 64.4 26.9 16.3 1.8 1.6 6.9 10.6 036460 Korea Gas 4,893 53,000 1.9 -15.1 17.9 - -8.6 12.7 13.9 0.5 0.5 4.2 3.7 011170 Lotte Chemical 4,781 139,500 0.7 -14.3 93.7 0.9 113.4 16.5 7.7 0.7 0.7 4.6 9.2 008770 Hotel Shilla 4,631 118,000 0.3 74.2 72.3 841.7 76.7 46.4 26.2 6.1 5.0 14.0 21.0 010950 S-Oil 4,475 39,750 1.3 -96.2 3527.1 -61.9 258.6 42.0 11.7 0.9 0.8 2.1 7.2 005830 Dongbu Insurance 4,149 58,600 - - - - 0.0 0.0 047050 Daewoo International 4,117 36,150 2.4 139.3 20.5 144.3 24.4 12.2 9.8 1.6 1.5 14.3 15.7 Source: KDB Daewoo Securities Research

Market Data October 7, 2014

※All data as of close October 7, 2014, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 405.03 -3.38 -0.83 -8.47 USD/KRW 1,069.70 1,061.10 1,018.00 1,071.60 KOSPI 1,972.91 4.52 0.23 0.29 JPY100/KRW 983.18 966.22 965.98 1,102.30 KOSDAQ 562.82 -3.45 -0.61 13.41 EUR/KRW 1,353.49 1,327.54 1,317.39 1,454.05 Dow Jones* 16,991.91 -17.78 -0.10 3.35 3Y Treasury 2.29 2.26 2.51 2.84 S&P 500* 1,964.82 -3.08 -0.16 7.25 3Y Corporate 2.65 2.64 2.88 3.25 NASDAQ* 4,454.80 -20.82 -0.47 7.52 DDR2 1Gb* 1.45 1.46 1.54 1.60 Philadelphia Semicon* 617.97 -5.15 -0.83 17.10 NAND 16Gb* 2.42 2.42 2.40 3.65 FTSE 100* 6,563.65 35.74 0.55 -2.30 Oil (Dubai)* 92.16 90.60 100.34 105.63 Nikkei 225 15,837.36 -53.59 -0.34 -0.45 Gold* 1,206.70 1,192.20 1,266.30 1,309.70 Hang Seng* 23,315.04 250.48 1.09 -0.11 Customer deposits (Wbn)* 15,149 15,185 14,944 16,050 Taiwan (Weighted) 9,040.81 -54.33 -0.60 4.97 Equity type BC (Wbn)(Oct. 2)* 76,706 76,595 76,875 87,772 Note: * as of October 6, 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 Kia Motors 14.59 Hynix 44.91 Hynix 29.33 KODEX LEVERAGE 24.78 Hyundai Mobis 13.18 Hyundai Motor 38.27 SK Telecom 22.92 Daelim Industrial 7.36 KT 8.94 NHN 24.99 Samsung Corp. 15.22 Hyundai Mobis 7.17 LG Electronics 8.30 SK Telecom 23.12 POSCO 14.59 LG Electronics 6.29 KEPCO 7.74 Amore Pacific 10.86 Samsung Electronics 14.40 KT 5.86 Samsung SDI 7.63 Samsung F&M Insurance 9.38 NHN 10.46 DSME 5.61 KB Financial Group 6.48 Hyundai Development E&C 8.89 Samsung F&M Insurance 9.44 Honam Petrochemical 5.58 Honam Petrochemical 5.16 SK Energy 8.59 Amore Pacific 8.04 S-Oil 5.17 Hotel Shilla 3.57 SK Corp. 7.55 KODEX 200 7.26 Kangwon Land 4.82 BGF Retail 3.40 KODEX 200 6.53 Hyosung Corp. 6.00 Hana Financial Group 4.79 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 Tovis 3.82 Celltrion 12.72 Paradise 3.27 Celltrion 10.44 Cell Biotech 3.10 SundayToz 3.38 KT Music 2.27 Seoul Semiconductor 5.03 SK Broadband 2.28 Com2us 2.62 SEEGENE 1.28 SM 3.14 CJ E&M 2.18 Gamevil 2.47 MPK 1.18 Eugene Technology 2.48 Suprema 1.71 OSSTEM IMPLANT 2.10 Daum Communications 1.13 CJ E&M 1.81 GS Home Shopping 1.36 Daum Communications 1.76 Sewoon Medical 0.99 KCP 1.62 Sung Woo HiTech 1.10 Wemade 1.64 KEBT 0.97 UniTest 1.56 Medy-tox 1.04 Devsisters 1.49 Com2us 0.94 LiHOM-CUCHEN 1.44 Digital Chosun 1.04 INICIS 1.45 KREIT 0.91 Medy-tox 1.18 Eugene Technology 0.97 Seoul Semiconductor 1.16 The Leadcorp.Inc. 0.88 STC 1.01 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 1,162,000 11,000 171,162 Celltrion 43,700 -4,850 4,525 Hyundai Motor 182,000 -2,500 40,090 Paradise 34,750 650 3,160 Hynix 44,700 0 32,391 Dongsuh 23,150 -400 2,308 KEPCO 48,350 1,350 31,039 Daum Communications 156,800 2,000 2,127 POSCO 306,000 6,000 26,679 CJ O Shopping 313,500 100 1,946 NHN 770,000 -9,000 25,381 Com2us 159,900 -7,100 1,613 Hyundai Mobis 248,000 7,000 24,141 CJ E&M 40,450 -350 1,567 Shinhan Financial Group 48,350 -150 22,928 GS Home Shopping 233,400 700 1,532 Kia Motors 56,100 500 22,741 Medy-tox 232,200 -5,900 1,313 SK Telecom 278,000 1,500 22,447 Seoul Semiconductor 22,050 -550 1,286 Source: Korea Exchange