October 2, 2013

KOREA

Company News & Analysis Major Indices Close Chg Chg (%) (Buy/TP: W11,000) KOSPI 1,999.47 0.60 0.03 Calmer waters ahead KOSPI 200 261.87 0.39 0.15 KOSDAQ 532.02 1.67 0.31 KT Skylife (Trading Buy/TP: W32,000) Downgrade rating & lower TP Weathering the storm Turnover ('000 shares, Wbn) Volume Value KOSPI 234,244 4,304 Sector News & Analysis KOSPI 200 72,282 3,619 Banks (Overweight) KOSDAQ 284,772 1,663 Potential margin recovery ahead Market Cap (Wbn) Value Auto (Overweight) KOSPI 1,170,019 3Q13 global production comes in shy of our estimates KOSDAQ 123,934 KOSPI Turnover (Wbn) Economy & Strategy Update Buy Sell Net Foreign 1,223 998 225 Fixed Income Monthly Institutional 974 1,202 -228 Yields more likely to fall than rise in October Retail 2,077 2,056 21

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 86 73 14 Institutional 70 74 -4 Retail 1,502 1,512 -10

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 738 749 -11 KOSDAQ 20 18 2

Advances & Declines Advances Declines Unchanged KOSPI 330 467 89 KOSDAQ 488 404 88

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Electronics 1,418,000 36,000 494 KODEX LEVERAGE 12,160 0 257 Hynix 31,150 1,200 218 Motors 62,800 -3,000 216 LG Electronics 68,400 -2,400 199

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value 44,300 -1,500 67 Binex 6,680 -340 55 HyVISION 19,700 2,550 47 CJ E&M 41,950 1,850 46 ATTO 7,850 580 46 Note: As of October 2, 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.

Hanjin Shipping (117930 KS) Calmer waters ahead

Shipping 3Q preview: Weaker than expected, but still resilient despite Sep. freight rate fall We forecast Hanjin Shipping’s 3Q operating profit to come in at W36.2bn, improving Earnings Preview both YoY and QoQ. We expect revenue to grow 2.3% QoQ on solid container traffic (+6.3% YoY) and higher freight rates in July-August. The company’s earnings are likely to October 2, 2013 be weaker than we originally expected, as freight rates have reversed sharply down since

September. However, we believe stronger bulk earnings thanks to a rise in the Baltic Dry Index (BDI) and solid profit from Hanjin Newport have reduced the liner’s cash depletion (Maintain) Buy risks. As such, concerns over a potential liquidity crisis have somewhat subsided.

Target Price (12M, W) 11,000 Despite falling rates, downside risks to shares are limited After climbing 25.3% from its previous trough, the Shanghai Containerized Freight Index Share Price (10/01/13, W) 8,660 (SCFI) has dropped 19.4% since September, raising risks of a stock pullback. However, we believe downside risks are limited for the following reasons. Expected Return 27% 1) Long-term indicators are improving: The Howe Robinson Container Index (HRCI; charter rates) and BDI have recently been moving up. Unlike the SCFI, which is heavily OP (13F, Wbn) -55 affected by idle capacity, these two indicators tend to reflect the overall supply and Consensus OP (13F, Wbn) -68 demand balance. The HRCI has been turning around for the first time in three years, a development largely attributable to capacity adjustments made by scrapping ships. EPS Growth (13F, %) RR Although the BDI is not directly correlated to the container market, it should have a Market EPS Growth (13F, %) 21.8 positive impact on non-container earnings and sentiment. P/E (13F, x) - Market P/E (13F, x) 10.2 2) Limited downside to spot rates: Freight rates have sharply declined since September, KOSPI 1,998.87 especially the Asia-Europe rate, which has slumped 49% from its peak (US$1,501/TEU). We see limited chances of a rebound with the off-season approaching. However, freight Market Cap (Wbn) 1,085 rates should see some downside support as rates fall below the cash cost level. The ratio Shares Outstanding (mn) 125 of laid-up ships has also been picking up from low levels, suggesting capacity Free Float (%) 62.0 adjustments are gaining pace. Foreign Ownership (%) 14.0 Beta (12M) 1.43 3) Perpetual bonds recognized as capital: The Korea Accounting Standards Board (KASB) 52-Week Low (W) 6,610 recently recognized perpetual bonds as a capital item, which should allow Hanjin to 52-Week High (W) 14,200 lower its debt ratio. Although this is merely an accounting change, if Hanjin successfully issues its perpetual bonds (an estimated W400bn), this would prove positive to the (%) 1M 6M 12M company’s balance sheet and further its financing abilities. Absolute 0.8 -13.4 -35.9 Relative -3.0 -13.5 -36.0 Chances of survival increasing; Valuation inexpensive

Share price We maintain Buy on Hanjin Shipping with a target price of W11,000. Currently, the 110 KOSPI stock is trading at a 12-month forward P/B of 1.1x, which we do not find demanding 90 given that supply and demand conditions are expected to improve full swing from 2014.

70 While there are lingering doubts over long-term competitiveness in an industry that is

50 leaning towards vessel upsizing, we expect that 1) more favorable supply and demand, 2) balance sheet improvement, and 3) strong alliances will give Hanjin a greater chance of 30 9/12 1/13 5/13 9/13 survival.

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Revenue (Wbn) 9,625 9,523 10,589 10,578 11,348 12,244 Transportation OP (Wbn) 687 -513 -110 -55 384 459 Jay JH Ryu OP margin (%) 7.1 -5.4 -1.0 -0.5 3.4 3.8 +822-768-4175 NP (Wbn) 287 -835 -651 -409 -59 24 [email protected] EPS (W) 3,257 -8,673 -5,204 -2,534 -473 193

ROE (%) 12.4 -35.6 -40.3 -37.7 -6.2 2.3 P/E (x) 11.0 - - - - 44.9 P/B (x) 1.2 0.7 1.2 1.2 1.1 1.0 Notes: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, KDB Daewoo Securities Research estimates

Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.

KT Skylife (053210 KS) Weathering the storm

Media What’s new: Net subscriber data still weak, home shopping negotiations stalling Yesterday, KT Skylife released its subscriber data for September. The company said it Earnings Preview acquired 63,429 new subscribers and, accounting for cancellations, added 30,966 net subscribers in the month. In 2H12, net subscriber additions averaged more than 50,000 October 2, 2013 per month, but the number has slowed since May this year to a little over 30,000 per

month. The September figure was particularly hurt by fewer business days due to the Chuseok holiday. We lowered our annual subscriber estimates, in light of the clear (Downgrade) Trading Buy slowdown in 3Q.

Target Price (12M, W) 32,000 As of end-September, negotiations on home shopping transmission commissions (which are typically concluded in the second quarter) have yet to yield an agreement. Although Share Price (10/01/13, W) 28,300 there are reports that the Korea Communications Commission (KCC) may propose guidelines for the negotiations, it seems talks are still in a stalemate. With this in mind, Expected Return 13% we are now more conservative on the company’s platform revenue.

Key issue: Major challenges need to be addressed OP (13F, Wbn) 83 In our view, KT Skylife currently faces three major challenges: 1) the ongoing Consensus OP (13F, Wbn) 109 deceleration in net subscriber additions, 2) stalling negotiations on home shopping commissions (which have a huge impact on profits), and 3) the risk of subscriber EPS Growth (13F, %) 16.4 regulations on KT’s IPTV and KT Skylife’s satellite TV operations. Although these Market EPS Growth (13F, %) 21.8 challenges stem from external factors that are beyond the firm’s control, they are also P/E (13F, x) 20.7 closely tied to its individual competitiveness. Market P/E (13F, x) 10.3 KOSPI 1,998.87 The domestic pay-TV market seems to be following in the footsteps of the telecoms market, where marketing has played an important role. With the conversion to digital Market Cap (Wbn) 1,353 broadcasting halfway done, marketing competition has intensified with telcos (IPTV) and Shares Outstanding (mn) 48 cable multiple-system operators (MSO) joining the race. In terms of content (number of Free Float (%) 49.5 channels) and marketing (sales network and bundled services), the competitiveness gap Foreign Ownership (%) 18.5 among industry players has significantly narrowed compared to in the past. Now, the Beta (12M) -0.10 only areas in which a company can differentiate itself are price and additional features 52-Week Low (W) 25,500 (such as VOD and UHDTV). For KT Skylife, we believe the key to earnings and share 52-Week High (W) 43,100 performance lies in its ability to restore competitiveness by differentiating itself in these areas. (%) 1M 6M 12M Absolute -14.2 -16.0 -7.8 Valuation: Downgrade to Trading Buy; Cut TP to W32,000 Relative -18.0 -16.2 -8.0 We downgrade our rating on KT Skylife to Trading Buy from Buy and lower our target Share price price to W32,000 from W41,000. Pay-TV stocks overall are faced with increasing 170 KOSPI uncertainties over growth and profit. In particular, we believe the delays to the home 150 shopping channel negotiations, which have usually gone smoothly in the past, are deeply 130 related to structural issues. Costs are rising due to marketing competition and demands 110 from copyright holders, while hopes of deregulation and policy support have been 90 tempered by delays at the National Assembly. In the short term, the conclusion of home 70 9/12 1/13 5/13 9/13 shopping negotiations in 4Q and a seasonal pickup in subscribers could serve as positive catalysts to the stock.

Daewoo Securities Co., Ltd. FY (Dec.) 12/10 12/11 12/12 12/13F 12/14F 12/15F Revenue (Wbn) 427 460 551 598 649 695 Media/Telecom Service OP (Wbn) 45 41 67 83 92 114 Jee-hyun Moon OP margin (%) 10.6 8.8 12.2 13.8 14.1 16.3 +822-768-3615 NP (Wbn) 34 31 56 66 72 91 [email protected] EPS (W) 858 670 1,178 1,371 1,496 1,899

ROE (%) 34.8 16.4 17.6 17.6 16.8 18.5 P/E (x) 40.9 28.4 20.7 18.9 14.9 P/B (x) 5.3 5.2 3.8 3.2 2.7 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. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.

Banks Potential margin recovery ahead

Overweight (Maintain) Low-yield environment fully factored in According to the August weighted average interest data released by the Bank of Korea Sector Update (BOK), net interest spread (NIS) on outstanding loans/deposits is continuing to contract, October 2, 2013 falling 1bp from the previous month’s figure. NIS on newly extended loans/deposits also inched down 4bps MoM. The prolonged NIS squeeze is largely attributable to the fact

that declines in lending yields have been outpacing declines in deposit yields. Despite Daewoo Securities Co., Ltd. respective 1bp and 3bps declines in newly extended and outstanding deposit yields, new lending yields and outstanding lending yields retreated 5bps and 4bps, respectively, Banks squeezing NIS indicators. However, we underscore the fact that the pace of yield Taye Shim declines on outstanding loans is decelerating. We also think the impact of the BOK’s +822-768-4178 base rate cut in May by 25bps has been largely baked in, supported by the fact that [email protected] yields on outstanding loans have declined by 25bps since April. (We assume the market Yong-uk Ku started to reflect the base rate cut a month ahead of the actual cut.) +822-768-4494 [email protected] Higher SME lending should bode well for margins

Joong-han Kim Based on the results of the latest loan officer survey conducted by the BOK, we expect +822-768-4152 to see a continued strong appetite for SME lending relative to other segments on the [email protected] back of the government’s supportive initiatives. We think banks will concentrate their lending capacity towards SME lending, as there is a reasonable match between supply and demand. Indeed, YTD, SME lending has picked up 4.7% as of August (vs. total loans: +3.5%; mortgage loans: +1.3%; general household credit: +0.7%). On the supply front, we expect banks will maintain a relaxed lending attitude towards SMEs and focus on segments that have high growth potential. On the demand side, we expect to see continued loan demand from SMEs, evinced by high loan demand figures (28p; highest since the global financial crisis). In addition, according to the BOK, the seasonal demand increase in working capital should drive loan demand during 4Q. Given that SME lending embeds higher lending spreads (2.18% for SME; 1.61% for large corporate; 1.14% for mortgage), we believe higher SME lending is likely to be positive for margins.

Banks are leveraged to a cyclical recovery; Focus on KBFG and HFG In our September 13th report, we argued that domestic banks were well-positioned for a recovery cycle, and presented three main arguments supporting our view: 1) a favorable macro backdrop, 2) fundamental soundness relative to emerging market banks, and 3) compelling valuation metrics. We believe our arguments still remain intact and expect an earnings recovery supported by potential margin improvement to keep banks’ share prices on an upward trajectory throughout 2H. We prefer large-cap banks that are trading at a discount—KB Financial Group (KBFG; 105560 KS) and (HFG; 086790 KS) in particular.

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.

Auto 3Q13 global production comes in shy of our estimates

Overweight (Maintain) Fewer working days, labor issues impact output in Korea September global production for Hyundai Motor (HMC) and Kia Motors (Kia) displayed Sector Update negative growth of 2.3% YoY (-3.9% MoM) and 8.2% YoY (-11.5% MoM), respectively. October 2, 2013 While both companies’ overseas production posted positive YoY growth (12.7% YoY for HMC and 1.7% YoY for Kia), their Korean production declined sharply line due to fewer

working days in the month (strikes, Chuseok holidays, and line adjustments in Daewoo Securities Co., Ltd. preparation for upcoming new car launches). HMC’s Korean plant production declined by 24.2% YoY while Kia posted a decline of 17.5% YoY. However, on a YTD basis, HMC’s and Auto/Auto parts/Tire Kia’s Korean plant production posted declines of 4.6% YoY and 2.5% YoY, respectively. Michael Yun +822-768-4169 Domestic growth continues to lose steam [email protected] September domestic sales for the five major domestic automakers decreased 7.3% MoM Young-ho Park and 12.8% YoY, with seasonally-adjusted annual rate (SAAR) coming in at 1.23mn units +822-768-3033 (-12.5% MoM). While September suffered from a decreased number of working days, we [email protected]

believe the picture for domestic makers is weak overall due to aging models, rising Sangmin Lee competition from foreign brands, and sluggish economic sentiment. Meanwhile, foreign +822-768-4170 brands are continuing to break monthly sales records. [email protected] HMC’s & Kia’s 3Q13 global production missed our estimates HMC’s and Kia’s 3Q13 global production came in shy of our estimates by 2% and 6.4%, respectively, due to strikes related to this year’s labor negotiations (15 days of partial strikes). Most of the damage came from HMC’s and Kia’s Korean plant production, which fell shy of our estimates by 8.4% and 8.3%, respectively. Meanwhile, both companies’ overseas plants continued to show solid growth in 3Q13. HMC’s and Kia’s overseas production increased by 16.0% YoY and 4.7% YoY, respectively. Overall, HMC’s 3Q13 global production came in at 1.1mn units, which is up 10.9% YoY, while Kia’s reached 629,914 units, up 2.6% YoY.

Despite 3Q13 global production coming in shy of our estimates, we still believe that both companies will show solid YoY earnings momentum given the low bases of comparison owing to last year’s extended labor strikes. HMC’s and Kia’s production losses due to the partial strikes in 3Q stand at 50,000 units and 20,000 units, respectively, but are likely to be made up for in 4Q13. Thus, weaker-than-expected earnings momentum in 3Q13 should give way to stronger 4Q13 earnings momentum on the back of new car launches (Genesis for HMC & the Soul for Kia).

Table 1. HMC’s & Kia’s 3Q13 production & KDB Daewoo’s estimates (units, %) Production (A) Estimates (B) (A)/(B) x 100 HMC Domestic 153,239 154,073 99.5 Exports 247,732 283,531 87.4 Korean plants 400,971 437,604 91.6 Overseas plants 706,137 692,602 102.0 Global total 1,107,108 1,130,206 98.0 Kia Domestic 112,487 108,000 104.2 Exports 227,353 262,454 86.6 Korean plants 339,840 370,454 91.7 Overseas plants 290,074 303,940 95.4 Global total 629,914 674,394 93.4 Source: Company data, KDB Daewoo Securities

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.

Fixed Income Monthly Yields more likely to fall than rise in October

Opportunities still exist In rough times After declining sharply in September, yields could fall further in October. In our view, a Fixed Income Report further decline is possible because confidence in the global economy is expected to September 27, 2013 weaken for a while. Ample liquidity has started to show diminishing effects, and the Citi Economic Surprise Indices for developed economies appear to be peaking out. However,

any downside will likely be limited, considering that: 1) the Fed is still forecast to initiate Daewoo Securities Co., Ltd. its tapering plan as early as in December, and 2) economic recovery is likely to accelerate from early next year.

Yeo-sam Yoon We expect the 3-year and 10-year KTB yields to bottom at around 2.7% and 3.3%, +822-768-4022 respectively. We believe yields will shoot up occasionally until early 2014, say, if the debt [email protected] ceiling issue is resolved before mid-October or if strong economic data is released. This means that there will be plenty of trading opportunities in the coming months. We Hyun-joo Lee +822-768-4143 present a Trading Buy call on the KTB market in October. [email protected] Factor analysis:

1. Fundamentals: Economic momentum may weaken in 2H 2. Monetary policy: Easing trend has been broken

3. Supply and demand: Bond trading to remain subdued for a while

4. Overseas yields: Still room for further decline

5. Price variables: Liquidity conditions remain favorable

6. Investment strategy: Yields may fall more than expected

US consumer confidence is deteriorating

(%) (p)

50 Gallup US Economic Conditions (% of "poor" responses, L) 0 Gallup US Economic Confidence Index (R) 46 -10

42 -20 38

-30 34

30 -40 1/12 4/12 7/12 10/12 1/13 4/13 7/13 10/13

Source: Gallup

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 2 AT THE END OF REPORT.

Key Universe Valuations October 2, 2013

※All data as of close October 1, 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 203,568 1,382,000 0.6 33.8 11.1 36.9 14.3 7.4 6.5 1.6 1.3 24.2 22.3 005380 Hyundai Motor 56,060 254,500 0.9 4.0 10.3 2.6 5.6 8.3 7.8 1.5 1.3 18.3 16.5 012330 28,084 288,500 0.8 -4.0 18.4 -3.8 12.7 8.2 7.3 1.5 1.2 18.6 17.7 005490 POSCO 27,246 312,500 2.5 -14.9 45.1 -29.1 66.5 15.4 9.2 0.6 0.6 4.4 6.9 000270 Kia Motors 26,673 65,800 1.1 5.3 6.2 3.3 8.4 6.7 6.2 1.4 1.2 21.3 19.2 000660 SK Hynix 21,271 29,950 0.5 - 18.9 - 22.0 7.6 6.2 1.8 1.4 24.8 24.0 032830 Samsung Life 21,000 105,000 2.0 0.0 9.3 4.2 4.3 18.1 17.4 1.1 1.0 6.0 5.8 055550 20,936 44,150 0.2 -10.3 14.2 -10.1 13.7 11.1 9.8 0.8 0.7 7.1 7.6 051910 LG Chem 20,113 303,500 1.3 4.1 25.6 3.1 26.2 14.6 11.5 1.9 1.7 13.7 15.3 009540 Hyundai Heavy 19,760 260,000 -31.9 47.9 -5.8 72.5 21.3 12.4 1.2 1.1 5.4 8.6 015760 KEPCO 18,938 29,500 - 80.9 - 295.0 33.8 8.6 0.4 0.4 1.1 4.3 035420 NHN 18,360 557,000 0.2 -5.8 54.7 28.3 47.9 38.3 25.9 28.3 14.8 26.8 37.1 017670 SK Telecom 18,087 224,000 4.4 26.0 29.6 66.0 25.6 9.5 7.5 1.7 1.5 15.6 18.0 105560 KB Financial Group 14,681 38,000 -3.3 11.4 3.8 11.4 8.4 7.5 0.6 0.6 6.9 7.4 096770 SK Innovation 13,454 145,500 2.0 21.1 18.1 18.9 24.7 9.7 7.8 0.9 0.8 8.8 10.1 000810 Samsung F&M 11,749 248,000 2.8 20.2 14.1 19.2 14.4 11.1 9.7 1.2 1.1 11.7 11.9 066570 LG Electronics 11,586 70,800 0.4 32.1 45.6 670.8 115.3 24.9 11.6 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 086790 Hana Financial Group 10,770 37,150 -8.7 10.0 -22.8 12.7 7.8 6.9 0.6 0.5 8.8 7.3 033780 KT&G 10,558 76,900 4.1 -4.5 5.1 1.3 5.6 14.1 13.4 1.9 1.8 14.2 14.0 000830 Samsung C&T 10,045 64,300 0.9 -7.1 34.4 -17.3 22.4 27.8 22.7 0.9 0.9 3.2 3.7 010140 Samsung Heavy 9,893 42,850 1.3 11.2 5.6 26.8 8.4 9.8 9.0 1.5 1.3 17.7 16.5 030200 KT 9,413 36,050 5.2 2.3 9.5 -7.7 10.0 9.6 8.8 0.9 0.9 7.8 8.3 034220 LG Display 9,250 25,850 1.9 19.4 -27.8 126.3 11.8 17.5 15.7 0.9 0.9 5.1 5.5 003600 SK Holdings 8,993 191,500 1.5 12.7 19.6 20.0 9.6 7.2 6.6 2.1 1.6 10.7 10.8 010950 S-Oil 8,714 77,400 4.4 22.9 21.4 52.0 5.6 10.2 9.6 1.5 1.4 15.6 15.0 006400 Samsung SDI 8,633 189,500 0.9 -43.6 152.4 -66.1 42.3 17.9 12.6 1.2 1.1 6.7 9.2 051900 LG Household & Health Care 8,434 540,000 0.7 16.8 12.2 14.5 13.1 27.5 24.3 6.2 4.9 26.0 23.9 086280 7,950 212,000 1.1 7.1 6.9 -1.0 11.0 16.1 14.5 3.4 2.8 23.0 20.9 161390 7,817 63,100 1.0 258.3 4.8 262.0 2.5 9.3 9.1 2.0 1.7 23.2 19.4 000720 Hyundai E&C 6,915 62,100 1.2 13.5 22.2 1.2 34.4 13.4 10.0 1.4 1.3 10.8 13.2 004020 6,868 80,500 0.7 -14.3 58.1 -41.3 63.7 14.7 9.0 0.7 0.6 4.6 7.2 011170 Lotte Chemical 6,701 195,500 1.0 27.8 50.2 19.7 38.6 16.6 12.0 1.1 1.0 6.5 8.4 024110 6,575 11,950 0.3 -26.5 16.3 -19.6 16.1 8.2 7.1 0.5 0.5 6.6 7.3 042660 DSME 6,536 34,150 0.9 -14.7 60.0 -11.0 131.5 33.1 14.3 1.4 1.3 4.2 9.1 009150 Samsung Electro-Mechanics 6,371 85,300 1.3 21.8 9.6 16.7 11.5 12.9 11.5 1.6 1.4 12.5 12.4 088350 Hanwha Life 6,054 6,970 3.5 - - 3.5 1.6 9.8 9.6 0.8 0.8 8.6 8.3 035250 6,022 28,150 3.2 11.6 15.4 19.7 16.6 17.0 14.6 2.2 2.0 14.3 15.4 010130 Korea Zinc 6,020 319,000 1.7 -13.2 20.7 -10.3 25.4 12.0 9.6 1.4 1.3 12.3 13.8 001800 Orion 5,803 972,000 0.3 -3.6 7.9 -1.9 16.2 39.0 33.6 5.4 4.6 14.0 14.1 034730 SK C&C 5,700 114,000 1.2 10.3 5.2 30.7 5.9 12.3 11.6 2.0 1.8 19.5 18.3 090430 Amorepacific 5,331 912,000 0.7 -4.1 10.2 -2.1 14.9 23.9 20.8 2.6 2.3 10.8 11.3 078930 GS 5,222 56,200 2.5 31.6 9.4 26.0 18.9 8.6 7.2 0.9 0.8 9.5 10.4 036460 KOGAS 5,188 56,200 -2.5 27.4 -91.8 1075.1 144.6 12.3 0.8 0.9 0.4 4.6 032640 LG Uplus 5,021 11,500 2.7 395.6 24.9 - 37.8 13.9 10.1 1.5 1.3 9.2 11.7 034020 Doosan Heavy I&C 4,883 46,000 1.8 3.9 6.6 1028.4 19.4 11.3 9.5 1.4 1.4 9.5 11.2 001300 4,819 91,900 0.8 1.7 26.8 98.6 -17.8 11.6 14.2 1.7 1.7 12.6 10.3 021240 COWAY 4,589 59,500 3.7 33.0 14.0 116.7 3.4 17.7 17.1 5.0 4.2 29.1 25.0 011210 Hyundai Wia 4,400 171,000 0.3 3.6 14.9 4.3 17.3 10.1 8.6 2.1 1.7 21.3 20.2 047050 Daewoo International 4,316 37,900 0.9 41.7 86.4 -4.4 96.5 21.3 10.8 5.6 4.6 8.9 15.4 Source: KDB Daewoo Securities Research

Market Data October 2, 2013

※All data as of close October 2, 2013, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 426.81 1.43 0.34 -0.56 USD/KRW 1,074.50 1,075.20 1,109.60 1,112.90 KOSPI 1,999.47 0.60 0.03 -1.56 JPY100/KRW 1,095.81 1,093.46 1,127.93 1,426.06 KOSDAQ 532.02 1.67 0.31 6.06 EUR/KRW 1,452.99 1,453.67 1,465.12 1,434.86 Dow Jones* 15,191.70 62.03 0.41 13.26 3Y Treasury 2.82 2.84 2.92 2.76 S&P 500* 1,695.00 13.45 0.80 15.90 3Y Corporate 3.24 3.26 3.29 3.27 NASDAQ* 3,817.98 46.50 1.23 22.68 DDR2 1Gb* 1.59 1.59 1.30 1.19 Philadelphia Semicon* 495.77 4.94 1.01 24.03 NAND 16Gb* 3.62 3.53 3.06 1.86 FTSE 100* 6,460.01 -2.21 -0.03 7.18 Oil (Dubai)* 104.40 105.09 112.39 109.23 Nikkei 225 14,170.49 -314.23 -2.17 32.58 Gold* 1,286.00 1,326.50 1,395.80 1,780.50 Hang Seng* 22,859.86 -347.18 -1.50 -1.94 Customer deposits (Wbn)* 16,513 16,265 17,505 18,735 Taiwan (Weighted) 8,216.52 29.50 0.36 5.62 Equity type BC (Wbn)(Sep. 30) 88,066 88,334 90,943 96,323 Note: * as of October 1, 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 136.71 LG Electronics 31.18 Samsung Electronics 64.44 Kia Motors 85.00 Hynix 29.20 Samsung Corp. 12.33 Hynix 23.36 LG Display 55.66 Hyundai Motor 26.11 KODEX LEVERAGE 12.25 Samsung Corp. 21.82 LG Electronics 53.67 KODEX 200 26.11 Honam Petrochemical 9.05 NHN Entertainment 9.86 Hyundai Motor 39.69 POSCO 16.31 NHN Entertainment 8.14 OCI 9.25 LG Chem 21.90 NHN 15.58 OCI 6.51 Honam Petrochemical 9.24 LG Uplus 19.63 13.38 Samsung SDI 6.02 SEMCO 9.01 NHN 18.33 LG Display 12.75 Mando 4.81 KODEX INVERSE 8.28 POSCO 17.56 HANKOOK TIRE 10.05 Samsung Techwin 4.54 Glovis 8.16 KODEX 200 17.35 KT 9.60 Korea Zinc 4.38 KODEX LEVERAGE 5.60 Hyundai Mobis 15.99 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 CJ E&M 6.88 Celltrion 5.87 Semiconductor 5.52 Medy-tox 4.52 Medy-tox 5.78 Interflex 1.98 CJ E&M 5.01 TK Corp. 1.79 SFA Engineering 1.97 GS Home Shopping 1.20 ATTO 3.28 Techno Semichem 1.61 Daum Communications 1.41 GNCENERGY 0.86 SM 2.34 SFA Engineering 1.61 Medipost 1.27 Duk San Hi Metal 0.84 Sung Kwang Bend 1.55 CJ O Shopping 1.49 Sung Woo HiTech 1.20 Partrion 0.70 PNESolution 1.17 Gamevil 1.41 KH Vatec 1.08 Sekonix 0.64 EO Technics 1.04 SEEGENE 1.39 STC 1.00 Wemade 0.57 Vieworks 0.91 KH Vatec 1.13 Modetour Network 0.80 Vieworks 0.57 HNK Machine Tool 0.88 Interflex 1.04 Techno Semichem 0.80 INICIS 0.49 Megastudy 0.78 HI-1 SPAC 1.03 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 1,418,000 36,000 208,870 Celltrion 44,300 -1,500 4,452 Hyundai Motor 247,500 -7,000 54,518 Seoul Semiconductor 41,000 850 2,391 Hyundai Mobis 281,000 -7,500 27,354 Paradise 24,050 -200 2,187 POSCO 313,000 500 27,289 CJ O Shopping 350,800 -7,000 2,177 Kia Motors 62,800 -3,000 25,457 Ssangyong E&C 136,800 0 1,999 Hynix 31,150 1,200 22,123 GS Home Shopping 254,600 -3,400 1,671 106,000 1,000 21,200 Dongsuh 27,750 -350 1,642 Shinhan Financial Group 43,800 -350 20,770 CJ E&M 41,950 1,850 1,591 Samsung Electronics (P) 901,000 34,000 20,573 SK Broadband 4,785 45 1,416 LG Chem 303,500 0 20,113 POSCO ICT 9,880 20 1,354 Source: