October 9, 2012

KOREA

Morning

Company News & Analysis Major Indices Close Chg Chg (%) GS Retail (Buy/TP: W42,000) Raise TP KOSPI 1,981.89 -13.28 -0.67 Stellar growth to drive share re-rating KOSPI 200 260.11 -1.96 -0.75 KOSDAQ 537.79 1.97 0.37 Korean Air (Buy/TP: W70,000) Focus on significant improvement in the passenger unit Turnover ('000 shares, Wbn) Volume Value KOSPI 497,669 4,021 Sector News & Analysis KOSPI 200 68,343 2,882 KOSDAQ 554,935 2,973 Banks (Overweight) Operational risk assessment of the banking industry Market Cap (Wbn) Value KOSPI 1,142,453 Economy & Strategy Update KOSDAQ 117,910

Fixed Income Weekly KOSPI Turnover (Wbn) Economy needs monetary easing Buy Sell Net Foreign 870 929 -59 Institutional 945 1,068 -123 Retail 2,182 2,006 176

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 84 98 -14 Institutional 107 100 8 Retail 2,781 2,772 9

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 533 558 -25 KOSDAQ 14 12 2

Advances & Declines Advances Declines Unchanged KOSPI 302 534 65 KOSDAQ 432 497 70

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Samsung Electronics 1,373,000 3,000 329 KODEX LEVERAGE 12,580 -205 189 Hynix 23,700 450 133 Hyundai Motor 237,500 -5,000 119 POSCO 358,000 -7,000 108

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value YG Entertainment 88,500 -8,700 168 Wemade 63,200 -1,300 110 Joymax 43,900 1,550 87 Dragonfly 20,350 100 64 S Connect 2,855 5 57 Note: As of October 8, 2012

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.

Company October 9, 2012

Retail GS Retail (007070 KS) Daewoo Securities Co., Ltd. Mina Kim Stellar growth to drive share re-rating +822-768-4163 [email protected] Raise TP to W42,000; Maintain Buy call Jieun Lee +822-768-3265 We maintain our Buy call on GS Retail and raise our target price by 35% to W42,000 [email protected] (from W31,000). We expect GS RetailÊs shares to be re-rated, as the company will

likely see stellar growth despite increasingly tough domestic market conditions. During 2000~2008, when Shinsegae (currently Emart) achieved structural growth regardless of domestic consumption growth, its shares traded at a lofty valuation (a P/E of 13.5x on average; high P/E of 24x). During 2006~2007, even stripping away Buy (Maintain) expectations for the companyÊs expansion into China, its shares would have traded Target Price (12M, W) 42,000 at a P/E of a lofty 19x (the upper bound of its structural-growth-phase P/E range). Share Price (10/08/12, W) 33,600 Considering GS Retail is also likely to display stellar growth despite a tough Expected Return (%) 25.0 domestic environment, we derived our target price by applying a target P/E of 19x to EPS Growth (12F, %) 46.4 Market EPS Growth (12F, %) 13.9 a 2013 EPS estimate. P/E (12F, x) 18.9 Market P/E (12F, x) 11.0 Shares to be affected by regulations in 4Q KOSPI 1,981.89 For 3Q, we project GS Retail to post revenues of W1.3tr (up 16.5% YoY) and an Market Cap (Wbn) 2,587 operating profit of W61.7bn (up 52% YoY), vs. market consensus estimates of Shares Outstanding (mn) 77 W1.25tr for revenues (up 14.9% YoY) and W63.6bn for operating profits (up 56.7% Avg Trading Volume (60D, '000) 115 Avg Trading Value (60D, Wbn) 3 YoY). The third quarter has traditionally been a strong season for the convenience Dividend Yield (12F, %) 0.9 store business. Because the weather was warm in 3Q, we estimate beverage Free Float (%) 34.3 revenues were strong (margins for food and beverages are higher than tobacco 52-Week Low (W) 19,350 margins). For 4Q, we expect two factors to influence the companyÊs shares. 52-Week High (W) 33,600 Thirteen over-the-counter drug products will be allowed to be on sale at Beta (12M, Daily Rate of Return) -0.04 convenience stores starting on November 15th, which should boost customer traffic. Price Return Volatility (12M Daily, %, SD) 2.8 On the other hand, the Fair Trade Commission (FTC) is likely to announce a Foreign Ownership (%) 6.6 Major Shareholder(s) restriction on new convenience store openings within a certain distance of existing GS (65.75%) convenience stores, which should negatively affect GS RetailÊs shares. LG Corp. (11.97%) Samsung Asset Mngt. (5.01%) Likely to show stellar growth despite tough domestic environment Price Performance We expect the domestic convenience store industry to continue to post robust (%) 1M 6M 12M Absolute 14.1 40.0 - growth over the long term, supported mainly by consumers seeking convenience in Relative 11.4 42.3 - shopping. Recent trends indicate a segment of Korean consumers are seeking Key Business convenience at the expense of price discounts. Moreover, demand for franchise GS GroupÊs retail subsidiary, which businesses should continue to grow with the accelerating retirement of the baby- operates CVS, supermarkets, H&B boom generation. Additionally, as the product mix at convenience stores is drugstores, etc. continuously improving with the addition of more fresh food and drug products, customers are likely to increase.

Also, given that mom-and-pop supermarkets still account for 80% of supermarkets,

Share price KOSPI FY Revenues OP OP Margin NP EPS EBITDA FCF ROE P/E P/B EV/EBITDA 160 (Wbn) (Wbn) (%) (Wbn) (Won) (Wbn) (Wbn) (%) (X) (X) (X)

140 12/10 3,280 95 2.9 442 5,743 173 96 37.4 - - - 12/11 3,982 103 2.6 94 1,215 214 -263 6.7 19.1 1.4 9.2 120 12/12F 4,710 165 3.5 138 1,779 261 227 9.3 18.9 1.8 6.3 100 12/13F 5,416 208 3.8 169 2,165 303 105 10.5 15.5 1.6 5.0 80 12/14F 6,138 253 4.1 201 2,588 351 137 11.5 13.0 1.4 4.2 12/11 4/12 8/12 Notes: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Sources: Company data, KDB Daewoo Securities Research estimates

they are highly likely to switch to the franchise business. Furthermore, if the expansion of the super-supermarket (SSM) business is hindered by restrictions, this could benefit the convenience store business, including GS Retail.

Figure 1. Valuation of Shinsegae Figure 2. Store expansion plans for GS Retail

(W) 25x 20x (Number of stores) (%) 9,307 400,000 9,400 GS25 (L) 30 YoY growth (R) 8,307 15x 300,000 7,550 7,307 25

6,307

10x 200,000 5,700 20 5,026

3,915 5x 100,000 3,850 3,388 15 2,856 2,399

0 2,000 10 00 01 02 03 04 05 06 07 08 09 10 11 12F 2006 2007 2008 2009 2010 2011 2012F 2013F 2014F

Source: KDB Daewoo Securities Research estimates Sources: Company data, KDB Daewoo Securities Research estimates

2 Company October 9, 2012

Transportation Korean Air (003490 KS) Daewoo Securities Co., Ltd. Jay JH Ryu Focus on significant improvement in the passenger unit +822-768-4175 [email protected] Maintain Buy call with TP of W70,000

We maintain our Buy call on Korean Air with a target price of W70,000. Our target price corresponds to a 12-month forward P/B of 1.5x and a 12-month forward P/E of

4.5x. As the companyÊs 3Q results are likely to fall short of expectations, we are lowering our 2012 and 2013 operating profit estimates by 16.9% and 7.2%, respectively. However, the companyÊs 12-month forward P/B of 1.0x still appears attractive, considering: 1) the companyÊs earnings quality has improved; and 2) Buy (Maintain) earnings at the cargo unit could turn around. As the companyÊs earnings could Target Price (12M, W) 70,000 improve in 2013, we believe current share prices present investors with buying Share Price (10/08/12, W) 47,750 opportunities. Expected Return (%) 46.6 EPS Growth (12F, %) TTB 3Q Preview: Passenger unit to hit historic high Market EPS Growth (12F, %) 13.9 P/E (12F, x) 6.2 For 3Q, we project Korean AirÊs consolidated operating profits to come in at Market P/E (12F, x) 10.9 W352.3bn, falling shy of the consensus estimate of W386.8bn. This shortfall should KOSPI 1,981.89 be attributable to: 1) a greater-than-expected rise in oil prices; and 2) still-weak cargo Market Cap (Wbn) 3,437 demand. However, we forecast 3Q net profits to surge QoQ to W464.2bn on the Shares Outstanding (mn) 73 back of F/X translation gains of W267.7bn (driven by won appreciation). Avg Trading Volume (60D, '000) 546 Avg Trading Value (60D, Wbn) 27 Because Korean AirÊs international passenger flight demand is likely to grow 4.7% Dividend Yield (12F, %) 0.0 YoY, we forecast the companyÊs 3Q international passenger load factor to improve Free Float (%) 68.2 52-Week Low (W) 41,500 to 82%. We believe the load factor for long-distance flights was especially strong. 52-Week High (W) 58,900 With the arrival of a strong season, the monthly number of passengers transferring Beta (12M, Daily Rate of Return) 1.08 in Korea to connecting flights from China to North America was a whopping Price Return Volatility (12M Daily, %, SD) 2.3 50,000~60,000, higher than the previous peak recorded in 2011. We believe the Foreign Ownership (%) 14.4 introduction of large jets during end-2011~early 2012 led to greater operating Major Shareholder(s) leverage. Hanjin et al. (25.67%) National Pension Service (9.21%) In contrast, we estimate the companyÊs cargo demand declined 7.9% YoY in 3Q. Treasury shares (6.17%) Still, as the company reduced supply by 10% YoY, cargo load factor is likely to come Price Performance in at a solid 76%. Since a reduction in cargo supply should lead to a decrease in fuel (%) 1M 6M 12M consumption, the company could have curtailed costs despite strong oil prices. Absolute -3.1 -4.5 6.1 Relative -5.9 -2.2 -6.5 Although 3Q12 operating profit (W352.3bn) is likely to fall behind the 3Q10 level Key Business (W446.9bn), it should be noted that the quality of earnings has improved. In 3Q10, An airline that focuses on both passenger and cargo transportation. the passenger and cargo units made similar contributions to operating profit. However, in 3Q12, as the cargo unit remained in the red, we think the entire operating profit came from the passenger unit. In other words, earnings at the companyÊs passenger unit have leaped forward, on the back of its long-distance fleet expansion.

Share price FY Revenues OP OP Margin NP EPS EBITDA FCF ROE P/E P/B EV/EBITDA 140 KOSPI (Wbn) (Wbn) (%) (Wbn) (Won) (Wbn) (Wbn) (%) (X) (X) (X) 130 120 12/10 11,640 1,236 10.6 563 7,678 2,361 2,818 19.5 9.1 2.1 7.2 110 12/11 12,269 460 3.8 -219 -2,983 1,803 1,770 -8.4 - 1.5 9.2 100 12/12F 13,143 588 4.5 565 7,699 2,055 1,549 21.2 6.2 1.3 8.4 90 80 12/13F 14,018 1,242 8.9 928 12,648 2,545 1,376 28.4 3.8 1.0 6.5 70 12/14F 14,632 1,447 9.9 926 12,619 2,709 1,547 22.9 3.8 0.8 5.7 9/11 1/12 5/12 9/12 Notes: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Sources: Company data, KDB Daewoo Securities Research estimates

Although the cargo unit remains in the red, it is unlikely to show further deterioration. With the increasing likelihood of a US economic recovery, we still expect the cargo unit to turn around in 2013, which should lead to the companyÊs earnings improvement.

Need to prevent financial deterioration following KAI acquisition Korean Air was selected as one of the final-round bidders (the other one being Hyundai Heavy Industries (HHI)) for the acquisition of Korea Aerospace Industries (KAI). The Korea Finance Corporation (KoFC) plans to complete the M&A process this year, beginning with due diligence next week and proceeding with a final bid in November. We estimate the acquisition price to be W1.2tr based on the October 8th closing price. Factoring in a control premium, the price could exceed W1.5tr. Considering Korean AirÊs current capital holding (W1.2tr), the airline should need to raise additional capital of at least W500bn to fund the acquisition. We believe minimizing the deterioration of Korean AirÊs financial position should require company efforts like the sale of its existing aerospace business, as well as the governmentÊs financial support.

Table 1. 3Q Earnings forecasts and consensus (Wbn, %, %p) 3Q12F 3Q11 2Q12 Daewoo Est. Consensus YoY QoQ Revenues 3,313 3,246 3,448 3,556 4.1 6.2 Operating profit 240 126 352 387 46.8 180.3 OP margin 7.2 3.9 10.2 10.9 3.0 6.3 Pretax profit -717 -224 546 477 TTB TTB Net profit -536 -165 464 372 TTB TTB Note: Based on consolidated K-IFRS Sources: Company data, FN Guide, KDB Daewoo Securities Research

Table 2. Quarterly earnings forecasts (Wbn, %, %p) 2011 2012F 3Q12 Growth 2011 2012F 2013F 1Q 2Q 3Q 4Q 1Q 2Q 3QF 4QF QoQ YoY Revenues 2,821 2,944 3,313 3,191 2,998 3,246 3,448 3,451 6.2 4.1 12,269 13,143 14,017 Operating profit 163 -20 240 77 -99 126 352 209 180.3 46.8 460 588 1,242 Pretax profit 369 35 -717 53 -28 -224 546 388 TTB TTB -260 683 1,244 Net profit 271 21 -536 45 -64 -165 464 330 TTB TTB -200 566 921 OP margin 5.8 -0.7 7.2 2.4 -3.3 3.9 10.2 6.0 6.3 3.0 3.8 4.5 8.9 Pretax margin 13.1 1.2 -21.7 1.7 -0.9 -6.9 15.8 11.3 22.8 37.5 -2.1 5.2 8.9 NP margin 9.6 0.7 -16.2 1.4 -2.1 -5.1 13.5 9.6 18.5 29.7 -1.6 4.3 6.6 RPK growth (%,YoY) 3.0 6.4 10.6 10.2 9.7 10.1 4.7 10.2 -5.3 -5.8 7.6 8.6 9.4 L/F (%) 77.7 78.3 79.1 74.8 75.7 79.0 82.0 75.0 3.8 2.9 77.5 77.9 77.7 Jet fuel (US$/bbl) 121 131 126 129 132 112 128 126 14.3 1.8 127 124 125 US$/W rate 1,120 1,084 1,085 1,145 1,131 1,119 1,133 1,090 1.2 4.4 1,109 1,118 1,064 Note: Based on consolidated K-IFRS Sources: Company data, KDB Daewoo Securities Research

2 Industry October 9, 2012

Overweight Banks Daewoo Securities Co., Ltd. Taye Shim Operational risk assessment of the banking industry +822-768-4178 [email protected] Over the past couple of years, the share price trajectory of the banking industry has Yong-uk Ku been quite disappointing. We ascribe this trend to the constant emergence of risks +822-768-4494 (both systemic and operational). And investors have overreacted to uncertainties by [email protected] demanding higher COE which has led to a sequential squeeze in valuations. We believe that the unwinding of risk perception should be the key catalyst for valuation improvements. And, in our view, the systemic risks hanging over the global community are largely being addressed by global leaders and central bankers, and recent developments lead us to believe that the worst-case scenario is unlikely to materialize. We also expect an orderly resolution to the global disorder to be outlined by global regulators in the near horizon. Given this backdrop, we believe that focusing on operational risks is both timely and necessary.

Rundown of operational risks and our views We will assess five major risks currently hanging over the banking landscape and provide arguments supporting our view that the downside to banking shares is limited, as most risk factors are baked in the cake. These five risks are: 1) over- leveraged households, 2) regulatory repression of banking operations, 3) concerns over asset quality, 4) the new Basel framework, and 5) share overhang.

Over-indebtedness of households

Household debt remains the key potential threat, and, in the worst-case scenario, the impact of a related meltdown could be devastating. However, we strongly believe that this issue does not pose an imminent risk to the banking system, as it is likely to be managed by banks and regulators. Base-case impact: ★★★☆☆

Regulatory repression lingers, but further risk to the downside seems low

Regulatory measures on banking operations have aligned well with the interests of the authorities; however, this intervention has not been in sync with the interests of equity investors. We agree with the market consensus that regulatory intervention on banking operations is a key valuation discount factor given its negative repercussions on overall profitability metrics. However, we argue that most of the regulatory measures have been largely priced in. Going forward, we expect limited surprises to emerge. We would also like to add that a full reversal of regulatory measures is less likely to materialize in the near horizon as political agendas are heavily focused on propping up the stagnating economy by demanding increased public function from banks. Base-case impact: ★★★☆☆

Concerns over asset quality overblown

Concerns over banksÊ asset quality are a key drag on valuations, in our view. But we think that the worst part of the credit cycle is over and firmly believe asset quality concerns have been largely priced in. Base-case impact: ★★☆☆☆

The new Basel framework: Fully compatible with Korea banks

We believe the Basel III framework is fully compatible with Korea banks. In other words, we do not expect fresh capital-raising to dilute existing shares. We believe most Korean banks meet the minimum criteria set by the Basel Committee. And, in our view, those that do not should be able to stock capital organically via earnings retention and blend into the phase-in. However, at the same time, we expect the new Basel framework to further delay the risk-on leverage cycle. Moreover, banksÊ dividend payouts should be largely capped at the current levels for the time being. All in all, we expect a limited impact from the phase-in of the Basel III standards. Base-case impact: ★☆☆☆☆

Share overhang should only pose mild headwinds

We expect share overhang to stimulate volatility in the short term; however, over the longer investment horizon, our belief is that valuations will converge with fundamentals. We assume the base-case impact on banks to be marginal. Base- case impact: ★☆☆☆☆

Risks to the upside Valuations are attractive

Banks are trading at a P/B of 0.55x against our 12-month forward BPS. This valuation represents a 63% discount from the 2003~present peak of 1.52x (July 2007) and a 17% premium from the trough of 0.47x (February 2009). Banks are trading at near- crisis level valuations, and we argue that their current share prices overly reflect challenging headwinds and limited risk to the downside (P/B of 0.5x). Our fair target P/B multiple estimates are 0.8x for the medium term and 0.9x over the longer investment horizon. We believe our target P/B is undemanding given our adjusted ROE estimate of 10% for both 2012 and 2013.

Figure 1. 12-month forward P/B trend Figure 2. KRX Banks index vs. KOSPI

(x) (12/11=100) 1.52x (7/07) 1.6 130 KOSPI KRX Banks 1.4 125

1.2 120

1.0 115

0.8 110

0.6 105

0.55x (10/12) 0.4 0.47x (2/09) 100

0.2 95

0.0 90 1/03 1/04 1/05 1/06 1/07 1/08 1/09 1/10 1/11 1/12 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12

Source: KDB Daewoo Securities Research Source: KDB Daewoo Securities Research

2 Industry October 9, 2012

Foreign investors seem to agree with our view, but local institutional investors seem to prefer building exposure to upside risk Year to date, foreign investors have net accumulated W1.3tr in banking shares. On the other hand, local institutional investors had net bought W722bn as of July 4th, but reversed their strategy and reduced their exposure down to W80bn. We believe that foreigners are acknowledging our view on limited downside risk to current valuations. However, we believe local institutional investors are still biased to the negative. Relaxed risk perception should trigger the reversal of sentiment, and the transition from divergence to convergence should result in the expansion of valuation multiples, in our view.

Figure 3. Cumulative net buying by investor type

(Wbn) (p) 1,400 KRX Banks index (R) 900 Institutionals (L) 1,200 Foreigners (L) 850 1,000 800 800

600 750

400 700 200 650 0

-200 600 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12

Source: KDB Daewoo Securities Research

Sequential mitigation of risks to propel banks out of the valuation down cycle In our view, banksÊ ability to break out of the valuation down cycle will depend on the resolution of risks. The outlook for incremental earnings growth remains murky; however, our view is that valuation multiple expansion is less likely to hinge on ROE accretion. We maintain a firm belief that risk to the downside is limited and also believe operational risk factors are largely blended into valuations. As such, assuming that recurring ROE levels are not hampered by operational risk factors, we believe the road to valuation multiple expansion via waning COE will be reasonably paved.

3 Fixed Income October 8, 2012

Daewoo Securities Co., Ltd. Yeo-sam Yoon Fixed Income Weekly Sr. Fixed Income Strategist Economy needs monetary easing +82-2-768-4124 [email protected] Sticking to our guns: We still expect a rate cut in October

We reiterate our bet that the Bank of Korea (BoK) will cut the base rate for October, although the odds of a rate cut have fallen in recent days with the latest batch of

economic indicators turning positive. Even if the policy rate is cut, we believe the

downside of yields should be limited. Accordingly, investors should focus on short-term risk management rather than accumulating long positions.

Economic fundamentals continue to weaken

We believe a rate cut is coming because KoreaÊs economic fundamentals are weakening rapidly, and the BoK has emphasized the need to put the country back on a stable growth track. In July, the central bank cut the base rate, saying the countryÊs 2012 GDP growth would slow to 3.0% from its earlier forecast of 3.5%. The BoK is now widely expected to lower its growth forecast once again, to about 2.5%, and we expect the downward revision will be accompanied by another rate cut in October.

BoK loath to allow the won to appreciate Another reason for a rate cut in October is that the won is now under pressure to appreciate against the dollar as a result of the implementation of fresh monetary easing by the Fed and ECB. The Reserve Bank of Australia (RBA) last week cut its benchmark interest rate, although the countryÊs economic data had started to stabilize and its growth outlook for 2012 was revised upward. From this decision, it is easy to infer that the country was more concerned about the negative effect of currency appreciation on exports than about inflationary pressures arising from the rate cut.

Market Data October 9, 2012

※All data as of close October 8, 2012, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 409.16 1.25 0.31 14.23 USD/KRW 1,110.60 1,113.30 1,134.60 1,186.60 KOSPI 1,981.89 -13.28 -0.67 8.52 JPY100/KRW 1,410.73 1,417.67 1,438.02 1,548.08 KOSDAQ 537.79 1.97 0.37 6.12 EUR/KRW 1,445.50 1,449.41 1,432.89 1,593.13 Dow Jones* 13,610.15 34.79 0.26 11.40 3Y Treasury 2.76 2.75 2.82 3.43 S&P 500* 1,460.93 -0.47 -0.03 14.40 3Y Corporate 3.28 3.27 3.32 4.25 NASDAQ* 3,136.19 -13.27 -0.42 18.40 DDR2 1Gb* 1.20 1.20 1.20 1.15 Philadelphia Semicon* 383.28 -0.37 -0.10 3.98 NAND 16Gb* 1.86 1.86 1.76 3.02 FTSE 100* 5,871.02 43.24 0.74 3.00 Oil (Dubai)* 108.41 106.05 111.20 96.61 Nikkei 225* 8,863.30 38.71 0.44 3.54 Gold* 1,778.60 1,794.10 1,691.60 1,640.30 Hang Seng* 21,012.38 104.43 0.50 11.31 Customer deposits (Wbn)* 18,421 19,369 18,103 19,863 Taiwan (Weighted) 7,615.89 -74.76 -0.97 9.55 Equity type BC (Wbn)(Oct. 2) 96,138 96,277 98,670 103,500 Note: * as of October 5, 2012 Source: KSDA, FnGuide, 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 32.58 POSCO 51.19 Hynix 25.76 KODEX LEVERAGE 47.73 SK Energy 19.55 NHN 37.36 NHN 23.28 Hyundai Motor 28.58 KB Financial Group 13.44 Samsung SDI 9.91 KODEX INVERSE 22.44 SK Energy 27.73 Samsung Corp. 12.72 HANKOOK TIRE 9.34 POSCO 19.04 Samsung Corp. 22.60 Hynix 12.36 Honam Petrochemical 7.70 HANKOOK TIRE 16.81 Hanjin Shipping 20.14 Shinhan Financial Group 9.66 SK Corp. 7.62 CJ Cheiljedang 14.60 HYUNDAI WIA 19.36 Hanjin Shipping 9.05 CJ Cheiljedang 7.05 Samsung Electronics 9.92 KB Financial Group 13.52 LG Chem 6.39 Hankook Tire 6.97 Hankook Tire 9.34 Hyundai Heavy Industries 13.21 Korea Gas Corp. 6.26 Cheil Industries 6.55 Mando 7.22 Honam Petrochemical 10.97 DHICO 4.15 Samsung Heavy Ind. 6.51 COSMAX 7.14 Samsung Heavy Ind. 10.37 Source: KSDA, FnGuide

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 Paradise 7.49 Megastudy 4.69 Megastudy 4.71 Dragonfly 10.21 Wemade 5.09 OSSTEM IMPLANT 2.54 Medy-tox 3.63 YG Entertainment 9.35 Sung Kwang Bend 1.57 Gamevil 2.37 Paradise 2.99 Wemade 7.25 EG 1.38 Com2us 2.11 SEEGENE 2.42 Silicon Works 1.73 Bioland 1.07 Seoul Semiconductor 2.11 Seoul Semiconductor 2.21 ELK 1.66 Daum Communications 1.07 Interflex 2.01 Maeil Dairy Industry 2.12 NEPES 1.39 Genic 1.01 GS Home Shopping 1.34 Interflex 2.05 S-MAC 0.96 CJ E&M 0.97 TK Corp. 1.16 Sung Woo HiTech 1.90 YeaRimDang 0.73 NEOWIZ Games 0.87 SM 1.14 GS Home Shopping 1.66 Innox 0.68 Medy-tox 0.80 GemVax 1.10 Nowcom 1.25 Celltrion 0.63 Source: KSDA, FnGuide

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 1,373,000 3,000 202,242 Celltrion 27,750 50 4,846 Hyundai Motor 237,500 -5,000 52,316 Paradise 19,100 1,150 1,737 POSCO 358,000 -7,000 31,213 Daum Communications 113,500 100 1,532 Hyundai Mobis 308,000 -2,000 29,982 CJ O Shopping 243,500 4,500 1,511 Kia Motors 71,000 -700 28,781 SM 67,700 -300 1,383 LG Chem 329,000 -5,000 21,803 Seoul Semiconductor 21,850 150 1,274 Samsung Life Insurance 95,300 -500 19,060 CJ E&M 31,550 400 1,197 Hyundai Heavy Industries 245,500 -7,000 18,658 SK Broadband 3,880 -35 1,148 Shinhan Financial Group 37,850 -200 17,948 Wemade 63,200 -1,300 1,062 Samsung Electronics (P) 783,000 0 17,879 SEEGENE 78,500 1,000 1,028 Source: Korea Exchange