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Home , Apink, Hanmi Pharmaceutical, Huh Gak, Kakao, POSCO, Samsung Biologics

May 18, 2018

Korea Morning Focus

Company News & Analysis Major Indices Close Chg Chg (%) (035720/Trading Buy/TP: W130,000) KOSPI 2,448.45 -11.37 -0.46 Kakao to merge with to separate platform and content KOSPI 200 314.29 -1.68 -0.53 KOSDAQ 855.62 5.33 0.63

Turnover ('000 shares, Wbn) Volume Value Sector News & Analysis KOSPI 588,984 8,078 KOSPI 200 106,407 4,994 Pharmaceutical/Biotech (Overweight) KOSDAQ 1,014,358 5,391 Takeaways from 2018 ASCO meeting abstracts Market Cap (Wbn) Advanced Materials/Metals (Overweight) Value KOSPI 1,634,548 Estimating North 's rail needs for railway development KOSDAQ 278,110

KOSPI Turnover (Wbn) Buy Sell Net Foreign 1,529 1,800 -270 Institutional 1,297 1,190 107 Retail 5,209 5,064 145

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 549 476 73 Institutional 202 208 -6 Retail 4,638 4,701 -63

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 1,467 1,593 -126 KOSDAQ 198 179 18

Advances & Declines Advances Declines Unchanged KOSPI 450 366 70 KOSDAQ 660 486 85

KOSPI Top 5 Most Active by Value (Wbn) Price (W) Chg (W) Value Electronics 49,400 -450 513 Hyundai Eng. & Cosnt. 69,000 -300 415 35,100 1,250 290 Hyundai Elevator 104,000 -4,500 285 Hynix 86,700 -300 250

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Daea TI 7,540 200 291 SillaJen 76,700 1,700 161 Emerson Pacific 9,400 1,860 151 Semyung Electric 13,000 3,000 151 ECOMAISTER 15,200 350 144 Note: As of May 17, 2018

Mirae Asset Research This document is a summary of a report prepared by Mirae Asset Daewoo Co., Ltd. (“Mirae Asset 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. Mirae Asset 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. Mirae Asset 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.

Kakao (035720 KS/Trading Buy) Kakao to merge with Kakao M to separate platform and content  Kakao announced plans to merge with Kakao M (formerly LOEN Entertainment) at a 1:0.8 Issue Comment ratio on September 1st May 18, 2018  Combination of Kakao and Melon to strengthen AI business and boost Melon’s paid subscribers

 Kakao M’s music/video production business to be spun off; Content production business Mirae Asset Daewoo Co., Ltd. to expand

[ Internet/Game/Advertising]

Jee-hyun Moon 1. Separation of platform and content to enhance specialization +822-3774-1640 Yesterday, Kakao announced plans to merge with its subsidiary Kakao M. Acquired by Kakao [email protected] in March 2016, Kakao M reorganized its Melon platform, music content, and video content businesses into a company in company (CIC) structure in October 2017 and officially

changed its name from LOEN Entertainment to Kakao M in March 2018. On September 1st,

the Melon platform business will merge with Kakao. We believe the separation of platform and content production will enhance the specialization of each business.

1) Platform operation: Kakao’s integration of the Melon platform has already been underway. In March 2018, the “Melon with Kakao” function, which allows users to directly access Melon’s music streaming service on the KakaoTalk app, was renamed “Kakao Melon.” characters have also been incorporated into Melon. Looking ahead, Kakao and Kakao M are likely to combine their user info and share data. We could potentially see a rise in Kakao M’s paid subscribers. Melon’s paid subscribers have increased to 4.65mn in May 2018 from 3.6mn in March 2016, when it was acquired. We think the positive effects of the Kakao account linkage could be further amplified. We also expect music content to be more widely utilized in Kakao’s AI business. Some of the key features of Kakao’s AI speaker Kakao Mini are music streaming and personalized recommendations. On its Melon app, Kakao M currently offers AI services like “Smart i” (voice search and music recommendations) and chatbots. 2) Content production: After merging with Kakao M, Kakao plans to spin off Kakao M’s music and video operations into a separate company. Kakao M has a vertically integrated value chain across platform and content, but the different natures of the platform and content businesses have led to issues like slow decision-making and conflicting interests. We believe separating the content production business will help facilitate video content production, distribution, and . We maintain our Trading Buy rating on Kakao. We believe the latest deal will have a limited near-term impact on Kakao’s value, as the company already owns 76.42% of Kakao M. In the medium and long term, we think the combination of platform and AI and the strengthening of the content business could have positive implications for revenue. We plan to revise our target price once we get a more detailed picture of the company’s business plans and development.

FY (Dec.) 12/15 12/16 12/17 12/18F 12/19F 12/20F Revenue (Wbn) 932 1,464 1,972 2,446 2,806 3,024 OP (Wbn) 89 116 165 100 176 195 OP margin (%) 9.5 7.9 8.4 4.1 6.3 6.4 NP (Wbn) 76 58 109 98 145 156 EPS (W) 1,269 874 1,602 1,297 1,900 2,049 ROE (%) 3.0 1.9 2.9 2.4 3.5 3.6 P/E (x) 91.2 88.1 85.5 89.9 61.3 56.8 P/B (x) 2.7 1.5 2.3 2.2 2.1 2.0 Dividend yield (%) 0.1 0.2 0.1 0.1 0.1 0.1 Note: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, Mirae Asset Daewoo 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.

May 18, 2018 Kakao

2. Merger overview

Table 1. Details of merger between Kakao and Kakao M

Merger ratio Kakao : Kakao M = 1 : 0.8023366 (based on common ) Kakao merger price W115,808 Kakao M merger price W92,917 Kakao’s current Kakao M stake 76.42% (consolidated subsidiary) New issues 7,012,650 shares (9.2% of current shares outstanding) Kakao’s current shares outstanding 76,273,522 shares Surviving entity Kakao Merging entity Kakao M Date of record Jun. 1 Submission of dissent Jun. 4-18 Merger date Sep. 1 Listing of new shares Sep. 18 Source: Company data, Mirae Asset Daewoo Research

3. Platform: Integration already underway Kakao’s integration of the Melon platform has already been underway. In March 2018, the “Melon with Kakao” function, which allows users to access Melon’s music streaming service on KakaoTalk without separately opening the Melon app, was renamed “Kakao Melon.” Kakao Friends characters have also been incorporated into Melon. For instance, the music streaming platform has offered free promotional Kakao Friends emoticons to attract monthly subscribers, and users can include KakaoTalk emoticons when writing music reviews on its app. Looking ahead, Kakao and Kakao M are likely to combine their user info and share data. We could potentially see a rise in Kakao M’s paid subscribers. Melon’s paid subscribers have increased to 4.65mn in May 2018 from 3.6mn in March 2016, when it was acquired. KakaoTalk’s domestic monthly active users (MAU) are around 43.52mn. We think the positive effects of linking Kakao accounts to Melon could be further amplified. We also expect music content to be more widely utilized in Kakao’s AI business. Some of the key features of Kakao’s AI speaker Kakao Mini are music streaming and personalized recommendations. Kakao M also offers AI services on its Melon app, including “Smart i” (voice search and recommendations) and chatbots. We believe the organizational integration will bring new momentum to the AI business. 4. Content: Independent entertainment production business to expand After merging with Kakao M, Kakao plans to spin off Kakao M’s music and video operations into a separate company. We think this will lead to the expansion of the video content business. Kakao M has a diverse range of entertainment/content businesses, which include artist subsidiaries like Fave (IU), Starship (K.will, Monsta X), King Kong Entertainment (Lee Kwangsoo, Lee Dongwook), Cre.Ker Entertainment (MelodyDay, etc.), Plan A (, ), and Mun Hwa In (Oohyo, Seen Root). The company also owns drama production subsidiary . Kakao M has a vertically integrated value chain across platform and content. While such a structure has benefits, the different natures of the platform and content businesses have led to issues like slow investment decision-making and revenue opportunity limitations due to conflicting interests. We believe separating the content production business will help facilitate content production and distribution and IP . In this respect, it is worth noting the recent push by management agencies like SM Entertainment and YG Entertainment into content production (dramas and entertainment shows), as well as CJ E&M’s expansion of its drama production business and supply channel diversification through the spinoff of .

As for over-the-top (OTT) platforms, we think video content distribution through apps like Melon, Kakao TV, and Kakao Page could gather steam. Indeed, Kakao Page, a /novel platform operated by Kakao’s subsidiary Podotree, began expanding its offerings to drama and movie VODs this year.

Mirae Asset Daewoo Research

Pharmaceutical/Biotech Overweight(Maintain)

Takeaways from 2018 ASCO meeting abstracts

 ASCO meeting abstracts were released yesterday  , (Oscotec), Sillajen, HLB, MedPacto, and ImmunoMet are set Issue Comment to present at this year’s meeting May 18, 2018  The ASCO meeting may generate limited share price momentum in the near term, but is positive in the medium/long term

Mirae Asset Daewoo Co., ASCO meeting abstracts are released [Pharmaceutical/Biotech] Abstracts of the 54th American Society of Clinical Oncology (ASCO) meeting were published Taehee Kim yesterday. The ASCO meeting, which will take place from June 1st to 5th in Chicago this year, +822-3774-6813 is widely considered one of the biggest industry events, alongside the JP Morgan Healthcare [email protected] conference. Many pharmaceuticals and biotech companies present their latest clinical data at the annual meeting, which is attended by more than 30,000 oncology specialists and

multi-national pharmaceutical officials every year. Among domestic firms, Hanmi, Yuhan (Oscotec), Sillajen, and HLB to present

Among domestic companies, Hanmi Pharmaceutical, Yuhan (in collaboration with Oscotec), Sillajen, HLB, MedPacto (Theragen Etex’s subsidiary), and ImmunoMet (spun off from HanAll Biopharma) have been confirmed to present data at this year’s ASCO conference. Clinical data on Hanmi Pharmaceutical’s Rolontis (neutropenia), poziotinib (lung cancer), and Oraxol (cancer) will be delivered by the company’s partners. Yuhan will present phase 1/2 study results of YH25448 (lung cancer), while Sillajen will provide results on the administration of Pexa-Vec in patients with solid tumors prior to surgery. HLB will unveil data from eight studies across a variety of cancers, while MedPacto and ImmunoMet will present phase 1 data on their advanced solid tumor treatments.

Among them, we think the study results of Yuhan and Hanmi Pharmaceutical deserve particular attention.

Yuhan has for the first time unveiled human trial data for YH25448, after presenting data from an animal model at the American Association for Cancer Research (AACR) meeting in . Results showed a 64% objective response rate (ORR) in evaluable patients, higher than AstraZeneca’s Tagrisso (51%), which is currently the most effective treatment option. The ORR in patients with brain metastases was also impressive, at 56%. The drug also displayed fewer side effects, such as pruritus, decreased appetite, rash, and constipation, compared to Tagrisso. Meanwhile, the phase 3 study on Hanmi Pharmaceutical’s Rolontis demonstrated non- inferiority to Amgen’s Neulasta (original). It looks increasingly likely Rolontis will be rolled out, which would make it the first drug in Hanmi’s pipeline to be globally released. ASCO meeting may generate limited share price momentum in the near term, but is positive in the medium/long term We do not expect to see any meaningful share price momentum during the ASCO conference in early June, considering that the titles of the ASCO abstracts were made available in late April, the abstract bodies were published yesterday, and interim data from most studies had already been released. However, we believe the presentation of study results to global pharmaceuticals will lay the foundation for potential licensing and collaboration deals. The pharmaceutical/biotech sector has recently reacted sensitively to rumors and negative news (yesterday was no exception). We believe it will take time for uncertainties surrounding R&D expensing, ’ accounting issue, and valuation pressures to fully subside, and thus expect volatility to continue for some time.

However, our outlook remains bullish in the medium/long term, supported by continued R&D progress (data presentations and licensing) and the listing of new technology firms. We maintain our Overweight opinion on the pharmaceutical/biotech sector.

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.

Advanced Materials/Metals Overweight (Maintain)

Estimating North Korea’s rail needs for railway development  We believe North Korea’s outdated railway network would need massive repairs to build Issue Comment an inter-Korean railway link May 18, 2018  We estimate North Korea’s railway development would require 320,000-530,000 tonnes of rail  North Korea railway development would provide a lift to railroad rail demand Mirae Asset Daewoo Co.,

Ltd. [Advanced Materials/Metals] North Korea’s outdated railway would need massive repairs for an inter-

Jaekwang Rhee Korean railway link +822-3774-6022 [email protected] North Korea’s railway has a combined length of 5,248km, compared with ’s 3,577km. North Korea also has a higher railway electrification rate of 80.4%, compared with

South Korea’s 60%, but most of its lines are not in operation due to electricity shortages. The double-track rate is just 3%, compared with 49.3% in South Korea, suggesting transportation capacity is weak. In terms of operating speed, South Korea’s KTX can travel at

200km per hour on average, while regular trains can run at 60-140km per hour. In North Korea, some trains in sections that have been maintained (Pyongui ) are believed to operate at 30-60km per hour. Overall, we believe North Korea’s railway network is severely outdated and would need massive repairs to build an inter-Korean railway link. North Korea railway development would require 320,000-530,000 tonnes of rail

The South Korean government’s Korean Peninsula Integrated Railway Network plan (completed in January 2017) includes the of a new high-speed railway between Sinuiju and separate from the existing Gyeongui Line, as well as upgrades of the Gyeongui Line, Pyongra Line, Gangwon Line, and Hambuk Line to improve speeds to up to 100km per hour.

We estimate implementing these plans would require around 320,000-530,000 tonnes of railroad rail, which would cost W450-750bn based on current prices. Considering that high- speed railway typically needs 240 tonnes of rail per kilometer (based on double track), building a 439km high-speed Gyeongui Line would require 110,000 tonnes of rail. And given that regular railway generally requires 100 tonnes of rail per kilometer for single track and 200 tonnes of rail per kilometer for double track, we believe upgrading the existing railways (2,129km) would require 210,000 tonnes of rail based on single track and 420,000 tonnes based on double track. North Korea railway development to boost rail demand

Since 2001, Korea’s railroad rail demand has averaged roughly 100,000 tonnes annually. Thus, given the potential for new demand of 320,000-530,000 tonnes and replacement demand for maintenance, we think North Korea’s railway development would provide a significant lift to railroad rail demand. Among domestic steelmakers, Hyundai is the only supplier of railroad rail and accounted for an estimated 73% of domestic demand in 2017. That said, the company’s railroad rail revenue is around W75bn, making up only 0.4% of overall revenue.

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.

Mirae Asset Daewoo Research Key Universe Valuations May 18, 2018

※All data as of close May 16, 2018, unless otherwise noted.

18F Earnings growth Mkt Cap Price P/E (x) P/B (x) ROE (%) Ticker Company Div Yield OP EPS (Wbn) (W) (%) 18F 19F 18F 19F 18F 19F 18F 19F 18F 19F 005930 317,115 49,400 143.3 26.6 1.4 36.7 5.8 0.1 0.1 0.0 0.0 23.4 20.5 000660 SK Hynix 63,118 86,700 1.7 59.5 -2.7 60.2 -2.5 3.7 3.8 1.2 0.9 40.5 28.6 068270 , Inc. 33,543 267,500 - - - - 0.0 0.0 005380 Hyundai Motor 32,931 149,500 2.7 -13.8 10.4 -8.7 15.8 11.6 10.0 0.6 0.5 5.2 5.6 005490 POSCO 31,387 360,000 2.2 23.4 3.5 35.2 3.4 8.3 8.0 0.7 0.6 8.3 8.1 207940 Samsung Biologics 26,334 398,000 4.5 277.0 - 375.1 508.5 107.0 6.5 6.2 1.3 5.9 028260 Samsung C&T Corporation 24,470 129,000 1.6 14.5 11.3 66.5 6.1 23.2 21.8 1.0 0.9 4.6 4.7 051910 LG Chem 24,390 345,500 1.7 -1.6 16.5 12.1 17.6 12.4 10.6 1.5 1.3 12.8 13.5 105560 KB Financial Group 24,083 57,600 19.0 5.7 6.6 3.7 6.7 6.5 0.7 0.6 10.2 9.9 015760 KEPCO 23,271 36,250 -80.1 280.7 - - - 15.6 0.3 0.3 - 2.1 012330 23,119 237,500 1.5 4.3 10.4 43.3 8.7 10.3 9.5 0.7 0.7 7.4 7.6 035420 22,975 697,000 0.2 -1.3 35.7 0.7 34.6 29.5 21.9 3.4 3.0 15.2 17.4 055550 22,856 48,200 19.1 4.4 14.4 4.2 6.8 6.6 0.7 0.6 10.0 9.8 032830 Samsung Life 22,400 112,000 - - - - 0.0 0.0 034730 SK Holdings 21,108 300,000 1.3 4.6 7.0 26.5 6.1 10.0 9.4 1.3 1.1 14.5 13.6 051900 LG Household & Health Care 19,819 1,269,000 0.9 9.0 10.1 13.1 10.5 32.8 29.7 6.2 5.4 20.9 19.7 096770 SK Innovation 18,863 204,000 3.9 -5.8 -4.7 2.8 -0.9 8.8 8.9 1.0 0.9 11.5 10.5 090430 AmorePacific 18,824 322,000 0.6 16.7 20.7 23.6 19.5 45.6 38.2 4.9 4.4 11.2 12.2 017670 SK Telecom 17,926 222,000 4.5 -17.7 3.5 -5.2 -7.3 7.3 7.8 0.8 0.8 13.2 11.2 018260 Samsung SDS 17,178 222,000 1.1 17.9 13.1 22.7 10.7 26.4 23.9 2.8 2.6 11.1 11.2 066570 LG Electronics 16,037 98,000 0.7 65.0 21.8 62.8 20.7 6.3 5.2 1.1 0.9 19.3 19.3 006400 Samsung SDI 13,753 200,000 0.5 321.8 65.3 12.8 41.6 19.0 13.4 1.1 1.1 6.4 8.6 086790 13,691 45,600 23.5 8.1 17.5 7.2 5.6 5.3 0.5 0.5 9.6 9.4 033780 KT&G 13,619 99,200 4.6 -6.2 1.4 -12.1 0.0 13.3 13.3 1.6 1.5 12.7 11.9 003550 LG Corp. 13,598 78,800 1.6 0.8 6.8 -21.5 7.1 7.4 6.9 0.8 0.7 11.1 10.8 000270 Motors 13,580 33,500 3.3 99.2 11.8 65.4 15.6 8.5 7.3 0.5 0.5 5.8 6.4 091990 Celltrion Healthcare 13,068 93,000 76.3 40.6 39.4 39.6 53.2 38.1 6.7 5.9 13.4 16.4 011170 Lotte Chemical 12,939 377,500 2.8 -5.7 11.1 1.1 14.9 5.7 5.0 0.9 0.8 18.1 17.7 000810 Samsung F&M 12,602 266,000 - - - - 0.0 0.0 010950 S-Oil 12,103 107,500 5.3 7.4 38.2 -9.9 38.3 11.2 8.1 1.7 1.5 16.0 20.2 251270 11,914 140,000 0.3 -18.2 7.0 -6.3 6.7 41.0 38.4 2.6 2.4 6.5 6.6 002790 AmoreG 10,637 129,000 0.4 24.5 12.2 30.3 7.7 43.4 40.3 3.4 3.2 8.5 8.5 024110 9,408 16,800 21.1 8.2 18.0 7.7 6.2 5.8 0.5 0.5 8.8 8.9 035720 Kakao Corp. 8,887 116,500 0.1 -39.5 76.0 -19.1 46.6 89.9 61.3 2.2 2.1 2.4 3.5 009150 Samsung Electro-Mechanics 8,851 118,500 0.7 129.6 15.6 184.2 12.4 20.0 17.8 1.9 1.7 10.3 10.6 004020 8,621 64,600 1.2 -7.8 2.2 0.5 1.2 12.0 11.8 0.5 0.5 4.2 4.1 009540 8,507 123,000 - - - - - 28.1 0.8 0.7 - 2.7 010130 Korea Zinc 8,416 446,000 2.2 -2.6 2.9 7.8 4.8 12.4 11.8 1.3 1.2 10.9 10.5 034220 LG Display 8,212 22,950 2.2 -94.9 617.4 -94.4 501.7 82.0 13.6 0.6 0.6 0.7 4.2 036570 NCSOFT 7,920 361,000 2.3 19.0 70.1 14.5 70.3 15.7 9.2 2.4 2.0 17.2 24.6 000720 Hyundai E&C 7,684 69,000 0.7 -3.2 11.0 10.6 14.2 16.1 14.1 1.1 1.0 7.0 7.6 139480 Emart 7,234 259,500 0.7 11.2 12.1 -27.4 15.8 16.2 14.0 0.8 0.8 5.3 5.8 030200 KT 7,154 27,400 3.6 -10.3 -0.3 30.1 18.3 11.5 9.8 0.6 0.5 5.2 5.9 021240 Coway 6,694 90,700 4.5 10.9 5.4 13.2 4.2 18.5 17.8 5.5 5.2 35.6 34.8 018880 Hanon Systems 6,219 11,650 - - - - 0.0 0.0 086280 5,719 152,500 2.0 -6.5 8.0 -27.4 19.5 11.6 9.7 1.3 1.2 12.0 13.2 078930 GS Holdings 5,668 61,000 3.0 -8.0 4.8 -2.6 5.3 6.0 5.7 0.7 0.6 11.8 11.3 036460 KOGAS 5,493 59,500 26.9 4.7 - 4.1 9.3 8.9 0.6 0.6 7.3 7.1 128940 Hanmi Pharmaceutical 5,482 481,500 0.1 0.1 100.0 -7.3 112.4 97.9 46.1 7.0 6.2 7.6 14.5 032640 LG Uplus 5,458 12,500 4.4 1.6 2.5 4.4 1.9 9.6 9.4 1.0 0.9 10.5 10.0 Source: Mirae Asset Daewoo Research

Mirae Asset Daewoo Research Market Data May 18, 2018

※All data as of close May 17, 2018, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 542.42 1.13 0.21 -2.12 USD/KRW 1,078.70 1,072.60 1,073.10 1,117.70 KOSPI 2,448.45 -11.37 -0.46 -1.26 JPY100/KRW 977.84 973.10 1,001.63 991.22 KOSDAQ 855.62 5.33 0.63 5.31 EUR/KRW 1,274.92 1,268.40 1,328.61 1,239.98 Dow Jones* 24,768.93 62.52 0.25 -0.22 3Y Treasury 2.26 2.29 2.18 1.68 S&P 500* 2,722.46 11.01 0.41 0.99 3Y Corporate 2.87 2.89 2.79 2.21 NASDAQ* 7,398.30 46.67 0.63 5.59 DDR2 1Gb* 1.34 1.34 1.34 1.23 Philadelphia Semicon* 1,370.10 19.00 1.41 6.40 NAND 16Gb* 2.90 2.90 2.91 2.41 FTSE 100* 7,734.20 11.22 0.15 1.13 Oil (Dubai)* 75.10 75.30 68.18 51.09 Nikkei 225 22,838.37 121.14 0.53 -2.84 Gold* 1,291.50 1,290.30 1,347.50 1,236.40 Hang Seng* 31,110.20 -41.83 -0.13 1.95 Customer deposits (Wbn)* 28,465 28,903 28,289 24,302 Taiwan (Weighted) 10,833.81 -63.76 -0.59 1.15 Equity type BC (Wbn)(May. 15) 80,785 80,849 81,861 69,074 Note: * as of May 16, 2018 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 HYUNDAI ROTEM 12.78 Samsung Electronics 116.94 Hynix 39.67 SAMSUNG BIOLOGICS 35.75 Hyundai Elevator 11.64 Celltrion 23.06 Samsung Electronics 37.80 SEMCO 17.12 SK C&C 9.15 Hyundai Motor 22.96 LG Chem 23.28 Lotte Shopping 10.58 Samsung 8.96 Samsung Electronics (P) 22.71 Samsung SDI 21.56 Daewoong Pharm. 10.27 SAMSUNG BIOLOGICS 6.17 Hyundai Eng. & Cosnt. 18.55 Celltrion 19.77 KODEX INVERSE 9.82 SK Energy 5.74 LG Chem 17.16 Communications 14.23 SK Energy 9.69 LG Electronics 5.56 Saehan Media 11.79 Hanmi Pharm 9.96 SK C&C 9.43 Woori Investment Securities 5.45 Hynix 9.97 KODEX KOSDAQ150 LEVERAGE 8.52 Honam Petrochemical 6.54 5.36 Daum Communications 8.65 Daewoo Eng .& Const. 8.24 Doosan Infracore 6.39 Hyundai Steel 5.05 SEMCO 6.25 Samsung Electronics (P) 7.83 Hanwha Chemical 5.97 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 SK Materials 7.55 SillaJen 12.63 Posco Chemtech 4.89 Amotech 4.66 L&F 6.18 Bio Space 4.79 Kakao M 4.09 THERAGEN ETEX 4.52 Posco Chemtech 3.64 Kakao M 4.58 ViroMed 3.97 Emerson Pacific 3.60 HLB 3.04 Jtuen Entertainment 3.74 L&F 3.46 NUTRIBIOTECH 2.73 UniTest 2.66 Celltrion 2.56 SK Materials 3.20 Oscotec 2.61 Techno Semichem 2.41 Oscotec 2.47 HLB 2.86 Medy-tox 2.61 AHNLAB 2.37 Celltrion Healthcare 2.37 Insun ENT 2.59 Winix 2.43 Cafe24 Corp. 2.30 SFA Engineering 2.05 SFA Engineering 2.32 Cafe24 Corp. 2.07 Nowcom 2.12 Paradise 1.83 SEOJIN SYSTEM 1.92 WONIK IPS 1.95 NCB Networks 2.09 CELLUMED 1.81 UniTest 1.91 SillaJen 1.70 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 49,400 -450 317,115 Celltrion Healthcare 93,000 100 13,068 Hynix 86,700 -300 63,118 SillaJen 76,700 1,700 5,322 Samsung Electronics (P) 38,750 -950 35,016 NANOS 8,070 1,040 3,961 Celltrion 267,500 -1,000 33,543 Medy-tox 670,000 3,000 3,790 Hyundai Motor 149,500 -1,000 32,931 HLB 100,400 1,200 3,668 POSCO 360,000 -3,000 31,387 CJ E&M 88,700 200 3,436 SAMSUNG BIOLOGICS 398,000 -16,000 26,334 ViroMed 213,000 7,500 3,399 SAMSUNG C&T 129,000 -1,500 24,470 PearlAbyss 236,600 -500 2,997 LG Chem 345,500 3,500 24,390 Celltrion 87,200 -1,400 2,969 KB Financial Group 57,600 0 24,083 Studio Dragon 93,000 100 2,607 Source: