February 14, 2019

Korea Morning Focus

Company News & Analysis Major Indices Close Chg Chg (%) (251270/Buy/TP: W149,000) Lower TP KOSPI 2,201.48 11.01 0.50 M&A expectations will be key driver of share prices for now KOSPI 200 284.97 1.28 0.45 KOSDAQ 739.91 9.33 1.28 Sector News & Analysis Turnover ('000 shares, Wbn) Volume Value Airlines (Overweight) KOSPI 416,940 5,504 Group unveils medium/long-term vision and plans for Hanjin KAL’s KOSPI 200 92,553 3,888 management reform KOSDAQ 787,425 3,889

Market Cap (Wbn) Value KOSPI 1,453,501 KOSDAQ 250,983

KOSPI Turnover (Wbn) Buy Sell Net Foreign 1,507 1,539 -33 Institutional 1,413 1,279 133 Retail 2,538 2,665 -127

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 444 292 152 Institutional 277 250 27 Retail 3,153 3,324 -171

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 1,489 1,531 -42 KOSDAQ 393 278 115

Advances & Declines Advances Declines Unchanged KOSPI 559 266 72 KOSDAQ 815 377 98

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Electronics 46,200 150 522 SEMCO 115,500 2,500 211 KODEX KOSDAQ150 LEVERAGE 13,435 390 184 Hynix 76,200 300 181 KODEX LEVERAGE 13,505 115 158

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Heungkuk 8,430 1,260 109 Tes 17,650 4,050 79 Posco Chemtech 69,500 2,500 77 Emerson Pacific 25,950 400 73 YBM Sisa.com 4,800 180 61 Note: As of February 13, 2019

Mirae Asset Daewoo 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.

Netmarble (251270 KS) M&A expectations will be key driver of share prices for now Game 4Q18 review: Earnings fall far short of expectations Results Comment For 4Q18, Netmarble reported revenue of W487.1bn (-20.9% YoY) and operating profit February 13, 2019 of W38bn (-59.0% YoY). Net profit slumped 72.1% YoY, hit by one-off non-operating expenses of W25.8bn related to intangible asset and goodwill impairments.

The latest results fell far short of our expectations (revenue of W582bn and operating profit of W79bn), as a result of 1) delays in new releases, which led to sluggish new title (Maintain) Buy revenue, and 2) weaker-than-anticipated revenue from the much-anticipated new title Blade & Soul Revolution (released in Korea). Target Price (12M, W) ▼ 149,000 New title releases concentrated in 2Q19 Share Price (02/13/19, W) 123,500 The company’s 2019 new title releases are heavily geared toward 2Q19, as it indicated during its latest earnings release. Yokai Watch: Medal Wars is due to come out in Japan Expected Return 21% in late March, while the big-budget title Seven Deadly Sins: Grand Cross will begin pre- registrations in Korea and Japan in late 1Q19.

Many of Netmarble’s most-anticipated 2019 titles are planned for release in 2Q19, OP (18P, Wbn) 242 including BTS World (a cinematic game), A3: Still Alive, and Seven Knights 2. In Consensus OP (18F, Wbn) 265 particular, King of Fighters: All Star, which became an instant hit in Japan, will be EPS Growth (18P, %) -44.3 launched in Korea in early 2Q19. Market EPS Growth (18F, %) 5.0 Maintain Buy, but cut TP to W149,000 (from W156,000) P/E (18P, x) 51.3 Market P/E (18F, x) 9.1 In light of the disappointing 4Q18 earnings, we revised down our 2019-20 operating KOSPI 2,201.48 profit forecasts by 9.3% and 8.6%, respectively. We hence lower our target price on Netmarble to W149,000 (from W156,000), reflecting our 2019F net profit revision. Market Cap (Wbn) 10,530 Shares Outstanding (mn) 85 Nevertheless, we maintain our Buy rating. While repeated delays in new title releases Free Float (%) 26.1 and subpar performances of several games are weighing on earnings, we remain Foreign Ownership (%) 24.9 positive on the stock, as we believe the company’s current bid for Nexon, if successful, Beta (12M) 1.20 could create a giant game developer and publisher unrivaled in size and quality. 52-Week Low 91,800 In our view, the combination of Nexon’s extensive intellectual property and strength in 52-Week High 166,500 PC game development and Netmarble’s mobile game development capabilities could (%) 1M 6M 12M have significant synergy effects. Absolute 6.9 0.8 -15.4 That said, there are still a number of uncertainties regarding the deal, as several other Relative 0.8 3.0 -8.0 big firms, including , have also reportedly joined the bidding. The acquisition could also allegedly cost up to W13tr if Japan’s mandatory tender offer rule is applied. 120 Netmarble KOSPI As such, we believe Netmarble’s stock will experience volatility for some time, as 100 investors balance worries about earnings against expectations of a mega M&A. 80 60

40 2.18 6.18 10.18 2.19

Mirae Asset Daewoo Co., Ltd.

[ Internet] FY (Dec.) 12/15 12/16 12/17 12/18P 12/19F 12/20F Revenue (Wbn) 1,073 1,500 2,425 2,021 2,318 2,656 Chang-kwean Kim +822-3774-1614 OP (Wbn) 225 295 510 242 350 560 [email protected] OP margin (%) 21.0 19.7 21.0 12.0 15.1 21.1

NP (Wbn) 121 174 310 185 277 399 EPS (W) 2,049 2,719 3,898 2,172 3,254 4,675 ROE (%) 14.8 15.3 11.2 4.2 6.0 8.1

P/E (x) - - 48.4 51.3 38.0 26.4 P/B (x) - - 3.7 2.1 2.2 2.1 Dividend yield (%) - - 0.2 0.3 0.3 0.3 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.

February 13, 2019 Netmarble

Table 1. Earnings forecast revisions (Wbn, %)

Previous Revised % chg. Notes 2019F 2020F 2019F 2020F 2019F 2020F Revenue 2,555 2,928 2,318 2,656 -9.2 -9.3 Operating profit 386 613 350 560 -9.3 -8.6 Net profit 344 517 323 464 -6.1 -10.2 Reflected 4Q18 earnings OP margin 15.1 20.9 15.1 21.1 - - Net margin 13.4 17.6 13.9 17.4 - - Note: Net profit is attributable to controlling and non-controlling interests Source: Company data, Mirae Asset Daewoo Research estimates

Table 2. Quarterly and annual earnings (Wbn, %)

1Q18 2Q18 3Q18 4Q18P 1Q19F 2Q19F 3Q19F 4Q19F 2018P 2019F 2020F

Revenue 507 501 526 487 467 523 626 701 2,021 2,318 2,656 Domestic 162 148 144 154 174 193 210 223 608 800 871 Overseas 345 353 382 333 293 330 416 479 1,413 1,517 1,786 Mobile games 482 476 502 463 443 500 603 678 1,923 2,224 2,563 MMORPG 185 140 132 136 156 175 227 264 593 822 1,122 RPG 165 170 184 122 131 166 195 216 641 709 680 Casual 119 125 168 136 117 110 131 147 549 505 562 Other 13 40 18 68 39 48 49 50 139 187 199 Online game 12 12 11 10 10 9 9 9 45 37 36 Other 13 13 13 14 14 14 14 15 53 57 57 Operating profit 74 62 67 38 28 55 107 161 242 350 560 OP margin 14.6 12.4 12.8 7.8 6.0 10.4 17.0 22.9 12.0 15.1 21.1 Net profit 79 66 55 15 30 56 103 133 215 323 464 Net margin 15.6 13.2 10.5 3.0 6.4 10.7 16.5 19.0 10.6 13.9 17.5 YoY growth Revenue -26.2 -7.3 -9.6 -20.9 -7.9 4.5 19.0 44.0 -16.6 14.7 14.6 Domestic -65.9 -43.4 -16.2 -21.6 7.4 30.8 46.4 44.3 -45.0 31.7 8.8 Overseas 63.8 26.5 -6.8 -20.5 -15.2 -6.5 8.8 43.9 7.2 7.4 17.7 Mobile games -27.4 -7.9 -9.7 -19.8 -8.0 4.9 20.1 46.5 -16.9 15.6 15.3 MMORPG -52.4 -33.4 -50.9 -50.8 -15.6 24.8 72.3 93.7 -48.1 38.6 36.5 RPG 6.0 -1.5 26.6 -26.7 -20.7 -2.2 6.1 77.7 0.2 10.6 -4.1 Casual 6.6 0.8 25.8 5.5 -2.1 -12.2 -21.9 8.0 10.0 -8.0 11.3 Other 61.4 347.2 106.3 1326.5 208.7 19.1 178.9 -26.6 359.7 34.3 6.5 Operating profit -62.9 -40.8 -39.8 -59.0 -62.5 -12.1 58.5 322.7 -52.6 44.7 60.1 Net profit -46.0 -15.1 -34.6 -72.1 -61.9 -15.4 87.7 813.2 -40.4 50.3 43.8 Source: Company data, Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research February 13, 2019 Netmarble

Table 3. Valuation table (Wbn, x, %)

Revenue Operating profit Net profit EV/EBITDA P/E P/B ROE Company Market cap 19F 20F 19F 20F 19F 20F 19F 20F 19F 20F 19F 20F 19F 20F NCsoft (KOR) 9,499.6 1,723.7 1,944.2 633.7 719.2 456.9 542.8 12.3 11.0 20.7 17.5 3.3 3.0 16.6 18.9 Netmarble 10,530.4 2,065.8 2,604.6 265.4 497.8 224.0 373.1 24.7 14.5 47.3 28.4 2.3 2.1 5.1 8.1 Com2Us 1,554.3 483.3 577.3 151.6 185.8 133.7 154.2 5.5 4.5 11.7 10.1 1.7 1.5 16.5 16.3 NHN Entertainment 1,260.0 1,257.6 1,480.3 77.2 98.8 120.3 78.2 9.1 7.6 11.4 16.4 0.7 0.7 7.9 4.9 Pearl Abyss 2,613.2 - 414.5 - 183.6 - 161.1 - 12.2 - 15.6 - 6.0 - 46.4 Webzen 693.9 225.9 206.1 74.3 64.1 59.1 52.8 7.4 8.6 12.0 13.2 2.1 1.8 19.9 15.1 DoubleU Games 1,036.4 487.8 542.8 141.0 170.3 96.6 114.2 8.3 7.2 11.0 9.3 1.9 1.6 21.8 20.9 WeMade 613.2 121.9 138.6 1.3 5.5 11.0 10.3 78.1 49.0 55.8 60.6 2.1 2.1 3.8 3.5 Activision Blizzard (US) 35,723.2 8,380.6 7,692.8 2,849.2 2,538.4 2,258.3 2,061.1 11.3 11.7 16.0 17.6 2.8 2.5 17.2 13.3 Electronic Arts 34,443.8 5,551.1 5,366.5 1,798.0 1,553.8 1,432.1 1,341.2 14.7 17.3 23.9 26.2 7.3 5.9 30.6 23.0 Take-Two Interactive 11,347.0 2,165.1 3,311.6 521.2 727.5 414.0 626.1 16.3 12.3 27.3 18.9 6.5 4.7 27.4 33.6 Zynga 5,127.2 1,011.5 1,346.3 183.8 232.8 155.2 220.6 22.0 17.0 29.7 23.9 2.7 2.7 6.7 9.0 Glumobile 1,532.1 414.7 506.7 40.0 63.7 44.5 63.6 31.6 22.3 35.0 26.9 8.0 6.7 21.1 26.0 Ubisoft (FR) 9,461.0 2,137.4 2,653.8 353.0 554.7 287.7 468.5 9.2 7.3 34.3 22.0 5.8 6.2 14.7 28.3 Nintendo (JP) 43,130.9 10,415.3 12,632.9 1,685.8 2,690.8 1,319.8 2,009.1 18.1 11.9 27.3 18.4 2.7 2.5 10.6 14.0 Nexon 15,521.5 2,635.6 2,783.8 1,066.5 1,119.4 1,025.3 916.3 9.6 9.2 15.0 16.6 2.7 2.4 19.0 15.3 Square Enix 4,203.7 2,468.3 2,624.1 380.5 297.5 252.1 213.5 6.5 7.9 16.2 19.1 2.1 1.9 13.2 10.2 DeNA 2,545.6 1,387.8 1,373.6 275.1 175.2 227.5 132.2 3.9 5.0 10.7 18.5 0.9 0.9 9.6 5.3 Gungho Online 2,860.5 794.3 903.3 216.3 235.4 136.6 152.3 9.3 8.5 15.9 15.2 3.0 2.5 20.1 20.8 GREE 1,128.5 792.5 772.7 103.7 80.0 75.4 58.6 2.0 3.1 14.7 18.3 0.9 0.9 6.6 5.1 Tencent (CH) 473,997.1 40,417.7 52,043.9 14,216.6 16,869.9 10,976.0 12,779.1 32.0 24.7 43.7 35.6 12.2 8.4 31.2 26.7 NetEase 36,060.7 9,195.4 11,209.1 2,239.2 1,283.9 2,229.0 1,406.7 13.8 21.1 16.7 25.2 4.5 4.1 28.5 13.8 Kingsoft 3,073.4 871.0 942.8 141.3 - 58.0 208.6 28.9 9.5 67.6 11.7 80.7 1.7 1.5 14.8 2.9 Youzu Interactive 2,780.3 557.4 617.8 130.6 149.5 135.9 156.0 19.3 17.2 19.9 18.0 4.7 3.4 23.7 19.0 Changyou 1,111.5 536.2 519.5 127.5 111.9 104.6 120.1 4.5 5.0 10.6 10.1 1.3 1.2 11.2 12.3 Average 15.4 10.4 23.1 17.2 3.1 2.6 16.7 16.2

Note: Market cap, revenue, operating profit, and net profit are based on Bloomberg figures (exchange rates as of Feb. 13) Source: Bloomberg, Mirae Asset Daewoo Research

Mirae Asset Daewoo Research

Airlines Hanjin Group unveils medium/long-term vision and plans for Hanjin KAL’s management reform

Overweight (Maintain) Hanjin Group sets 2023 operating profit target at W2.2tr On February 13th, Hanjin Group unveiled its medium/long-term vision and plans for Industry Report Hanjin KAL’s management reform. The group aims to increase its revenue and operating profit from W16.5tr and W1.0tr, respectively, in 2018 to W22.3tr (CAGR of February 14, 2019 6%) and W2.2tr (CAGR of 17%), respectively, in 2023. To this end, the group presented several growth strategies, dividing its business into three segments: 1) air transportation (Korean Air and Jin Air), 2) logistics (Hanjin Transportation, etc.), and 3) hotel leisure (KAL Hotel Network, overseas hotels such as the Wilshire Grand Center in Mirae Asset Daewoo Co., Ltd. Los Angeles, Hanjin Travel, etc.).

[Transport/Energy] 1) Air transportation: Profitability-oriented route management, expansion of joint ventures and alliances, and new aircraft investments Jay JH Ryu +822-3774-1738 2) Logistics: Parcel delivery terminal capacity expansions, automation investments, [email protected] and advance into global e-commerce market

3) Hotel leisure: Increased cross-selling with air transportation business and

partnering with global hotel groups

Shareholder value creation: Hanjin KAL to raise dividend payout and sell idle assets The group also laid out four broad agendas for Hanjin KAL’s management reform: 1) improving governance, 2) enhancing management transparency, 3) introducing more shareholder-oriented policies, and 4) advancing the business structure. 1) Improving governance: The company’s auditor will be replaced with an outside director, bringing the ratio of inside directors to outside directors to 3 to 4. 2) Enhancing transparency: An audit committee and an internal transaction committee will be established. 3) Expanding shareholder-oriented policies: Dividend payout will be increased to around 50%, and joint investor events will be held to improve shareholder communication. 4) Advancing the business structure: Debt ratio improvement, sale of the Songhyeon-dong site, consolidation of affiliates, and investments in parcel delivery terminals The biggest highlight was the announcement that Hanjin KAL will increase the 2018 dividend payout ratio to 50%. While this is higher than previous payouts (17-41%), we are somewhat disappointed that the ratio is based on non-consolidated net profit. There are no consensus estimates for non-consolidated net profit available for 2018, but given 2017 earnings (adjusting for one-offs) and payout ratio (50%), we estimate this implies a dividend yield of 1%. In response to calls from several shareholders to liquidate idle assets, the group also revealed plans to sell its Songhyeon-dong land and either develop or sell its Paradise Hotel site.

Improvements in fundamentals and long-term shareholder value: Positive to Korean Air We view Korean Air (003490 KS/Buy/TP: W43,000) as a key beneficiary of Hanjin Group’s latest plans. 1) In order to improve its operating profit over the long term, the group will have no choice but to focus on Korean Air, which accounts for 70% of overall profit (debt ratio target: 300%; coverage ratio target: 4x). 2) Korean Air also owns the Songhyeon-dong land (acquired for W290bn in 2008; 37,000m2)—the only asset that was confirmed to be up for sale—and is thus likely to see meaningful cash flow following its disposal. 3) We also expect Korean Air’s cash flow to improve on the back of the recent decline in oil prices, strength in long-haul routes, and lower capex, driving continued enhancements in shareholder value.

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 February 14, 2019

※All data as of close February 12, 2019, 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 275,804 46,200 3.1 9.8 -44.6 11.1 -25.5 7.7 10.3 1.3 1.2 19.5 12.1 000660 SK Hynix 55,474 76,200 2.0 51.9 -59.0 45.0 -59.3 3.6 8.8 1.1 1.0 38.3 12.7 051910 LG Chem 26,684 378,000 1.6 -23.3 3.8 -24.3 7.6 20.1 18.7 1.7 1.6 8.8 8.9 068270 Celltrion 26,597 212,000 - - - - 0.0 0.0 005490 POSCO 23,279 267,000 3.7 19.9 -17.7 -39.4 64.7 13.8 8.4 0.5 0.5 3.9 6.2 028260 Samsung C&T 22,289 117,500 1.7 28.7 5.4 107.7 -4.2 16.9 17.7 0.9 0.8 5.8 5.2 015760 KEPCO 21,827 34,000 - - - - - 12.4 0.3 0.3 - 2.5 017670 SK Telecom 20,954 259,500 3.9 -21.8 7.5 19.6 -6.0 6.7 7.2 0.9 0.8 15.5 12.5 035420 NAVER 20,602 125,000 0.2 -20.1 -2.3 -17.5 -5.0 32.3 34.0 3.2 2.9 12.6 10.7 055550 20,557 43,350 17.5 4.6 8.2 6.8 6.5 6.1 0.6 0.5 9.2 9.0 105560 KB Financial Group 19,296 46,150 5.1 17.4 -8.7 17.6 6.3 5.3 0.5 0.5 8.8 9.7 034730 SK Holdings 19,032 270,500 1.7 3.9 6.3 28.9 -9.9 8.9 9.8 1.1 1.0 14.5 11.4 032830 Samsung Life 17,940 89,700 - - - - 0.0 0.0 018260 Samsung SDS 17,371 224,500 1.1 18.9 13.5 23.1 12.6 26.6 23.6 2.9 2.6 11.2 11.6 096770 SK Innovation 17,014 184,000 4.3 -34.4 5.3 -22.5 -4.1 10.6 11.0 0.9 0.9 9.0 8.4 006400 Samsung SDI 16,400 238,500 0.4 511.7 43.3 6.7 47.0 23.9 16.3 1.4 1.3 6.0 8.3 000810 Samsung F&M 13,739 290,000 - - - - 0.0 0.0 033780 KT&G 13,606 99,100 4.0 -14.1 14.2 -17.3 10.5 14.1 12.8 1.6 1.5 12.1 12.6 003550 LG Corp. 13,132 76,100 1.7 0.5 8.3 -23.0 10.4 7.3 6.6 0.7 0.7 10.9 10.8 086790 Hana Financial Group 12,175 40,550 16.3 10.4 9.0 11.3 5.4 4.9 0.5 0.4 8.9 9.0 066570 LG Electronics 11,799 72,100 1.0 9.5 -3.3 -28.1 8.4 10.5 9.7 0.9 0.8 9.0 9.0 010950 S-Oil 11,709 104,000 1.7 -50.4 129.2 -73.2 250.3 36.3 10.4 1.8 1.6 5.0 16.6 251270 Netmarble 10,530 123,500 0.3 -44.5 36.2 -31.6 29.9 46.3 35.7 2.3 2.2 5.1 6.3 091990 Celltrion Healthcare 10,441 74,300 -14.3 87.4 -8.7 33.6 64.9 48.5 5.6 5.2 9.0 11.1 011170 Lotte Chemical 10,317 301,000 3.5 -31.4 -11.1 -24.6 -3.4 6.1 6.3 0.8 0.7 13.9 12.1 036570 NCsoft 9,500 433,000 1.7 5.1 37.8 -5.1 49.2 22.7 15.2 3.0 2.6 14.7 19.4 009150 Samsung Electro-Mechanics 8,627 115,500 0.9 232.5 6.0 305.8 5.4 13.7 13.0 1.8 1.6 14.5 13.4 035720 Kakao 8,180 98,100 0.2 -38.4 40.3 -48.8 126.5 119.6 52.8 2.0 1.9 1.6 3.7 010130 Korea Zinc 8,133 431,000 2.3 -14.5 10.1 -15.7 25.8 15.3 12.2 1.3 1.2 8.7 10.2 024110 7,868 14,050 18.2 6.7 16.8 4.8 5.3 5.0 0.4 0.4 8.6 8.5 030200 KT 7,416 28,400 3.5 -8.3 -1.1 42.4 17.2 10.9 9.3 0.5 0.5 5.5 6.0 000720 Hyundai E&C 7,004 62,900 0.8 -14.7 24.1 89.1 22.8 18.4 15.0 1.1 1.0 5.9 7.1 034220 LG Display 6,781 18,950 2.6 -96.2 -52.4 - - - - 0.5 0.5 - - 004020 6,752 50,600 1.5 -25.0 31.1 -44.3 95.2 16.9 8.7 0.4 0.4 2.4 4.5 032640 LG Uplus 6,418 14,700 3.7 -11.5 -5.7 -13.7 -12.2 13.6 15.5 0.9 0.9 7.8 6.0 128940 5,464 470,500 0.1 3.0 97.1 -7.8 114.0 96.2 44.9 6.9 6.0 7.6 14.6 023530 Lotte Shopping 5,446 192,500 2.7 30.3 26.6 - 657.1 70.4 9.3 0.4 0.4 0.6 4.6 086280 5,288 141,000 2.1 -2.3 4.6 -35.7 32.9 12.1 9.1 1.2 1.1 10.6 12.9 005830 DB Insurance 5,076 71,700 - - - - 0.0 0.0 097950 CJ CheilJedang 5,021 333,500 0.9 7.6 9.9 136.6 -65.7 5.5 16.1 1.1 1.0 23.3 6.6 036460 KOGAS 5,003 54,200 2.8 27.9 1.9 - -3.2 7.9 8.1 0.6 0.6 7.8 7.1 139480 Emart 4,892 175,500 1.0 -18.4 10.9 -27.3 -6.0 10.9 11.6 0.6 0.6 5.4 4.9 271560 Orion 4,408 111,500 0.5 168.8 9.2 39.5 23.5 24.5 19.8 3.1 2.7 13.1 14.4 003670 POSCO Chemtech 4,105 69,500 0.6 2.2 23.9 27.6 8.4 31.1 28.7 5.4 4.7 18.9 17.6 000120 CJ Logistics 4,004 175,500 3.0 30.1 20.3 270.1 105.7 28.6 1.3 1.2 1.5 5.1 029780 Samsung Card 3,864 33,350 -35.4 -12.6 -9.8 -11.6 11.1 12.5 0.6 0.5 1.5 1.3 012750 S1 3,857 101,500 2.7 2.4 5.3 5.2 5.2 25.6 24.3 3.0 2.9 12.1 12.0 005940 NH Investment & Securities 3,743 13,300 - - - - 0.0 0.0 006360 GS E&C 3,694 46,500 0.6 234.2 -8.1 - 14.9 6.0 5.3 1.0 0.9 17.3 18.2 088350 Hanwha Life 3,665 4,220 - - - - 0.0 0.0 Source: Mirae Asset Daewoo Research

Mirae Asset Daewoo Research Market Data February 14, 2019

※All data as of close February 13, 2019, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 464.19 3.76 0.82 8.22 USD/KRW 1,124.60 1,124.50 1,118.90 1,083.40 KOSPI 2,201.48 11.01 0.50 9.53 JPY100/KRW 1,018.15 1,018.25 1,031.96 996.64 KOSDAQ 739.91 9.33 1.28 10.54 EUR/KRW 1,274.57 1,267.99 1,286.90 1,332.26 Dow Jones* 25,425.76 372.65 1.49 8.99 3Y Treasury 1.80 1.80 1.80 2.28 S&P 500* 2,744.73 34.93 1.29 9.35 3Y Corporate 2.25 2.24 2.26 2.82 NASDAQ* 7,414.62 106.72 1.46 11.23 DDR2 1Gb* 1.13 1.14 1.15 1.34 Philadelphia Semicon* 1,336.72 27.84 2.13 14.71 NAND 16Gb* 2.49 2.49 2.81 2.89 FTSE 100* 7,133.14 4.03 0.06 5.92 Oil (Dubai)* 62.23 62.02 61.16 60.29 Nikkei 225 21,144.48 280.27 1.34 8.09 Gold* 1,309.20 1,307.00 1,289.50 1,324.20 Hang Seng* 28,171.33 27.49 0.10 12.10 Customer deposits (Wbn)* 24,947 26,187 23,114 28,761 Taiwan (Weighted) 10,090.58 -7.16 -0.07 5.61 Equity type BC (Wbn)(Feb. 11) 87,990 88,059 86,605 80,021 Note: * as of February 12, 2019 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 SEMCO 27.01 Doosan Infracore 18.10 SEMCO 39.07 WooriFinancialGroup 16.49 Honam Petrochemical 15.24 Hyundai Motor 16.73 KODEX KOSDAQ150 LEVERAGE 29.37 Samsung SDI 13.79 Netmarble 14.24 15.13 Samsung Electronics 26.98 Doosan Corp. 11.85 S-Oil 11.96 NCsoft 13.15 LG Electronics 21.77 Doosan Infracore 10.30 Samsung SDI 10.98 LG Uplus 12.64 LG Chem 18.99 KODEX LEVERAGE 10.20 Samsung Electronics (P) 10.01 NHN 12.24 Honam Petrochemical 17.77 KODEX 200 Futures Inverse 2X 9.19 KOREA 9.73 SK Telecom 9.76 Shinhan Financial Group 13.63 Hyundai Motor 8.93 Samsung Electronics 8.64 9.67 Hynix 10.04 Hyundai Heavy Industries 8.35 Hynix 5.90 KB Financial Group 9.45 KB Financial Group 8.83 KIWOOM 5.79 5.58 Shinhan Financial Group 9.33 MANDO 7.84 Macquarie Korea Infrastructure Fund 5.54 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 Posco Chemtech 17.48 SillaJen 4.59 Posco Chemtech 10.94 Mezzion Pharma 6.00 ViroMed 9.44 Jtuen Entertainment 2.85 Seoul Semiconductor 6.44 Unick Corporation 4.33 Celltrion Healthcare 6.19 HLB 2.76 4.42 ViroMed 4.09 Cafe24 Corp. 5.62 Kolon TissueGene 2.61 Paradise 4.03 ECOPRO 2.77 Tes 4.78 Dongjin Semichem 1.98 AbClon 3.14 DoubleUGames 2.52 Sam Chun Dang Pharm 4.78 SKPI 1.90 NEPES 2.80 YG Entertainment 2.24 STCUBE 4.70 Emerson Pacific 1.83 AP Systems 2.75 Insun ENT 2.14 Mezzion Pharma 4.69 WONIK IPS 1.45 Partrion 2.69 Celltrion Healthcare 2.10 SFA Engineering 4.47 OSSTEM IMPLANT 1.37 Chunbo 2.40 NCB Networks 2.02 CJ FW 3.83 Com2us 1.34 SEOJIN SYSTEM 2.30 OliX 1.85 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 46,200 150 275,804 Celltrion Healthcare 74,300 100 10,441 Hynix 76,200 300 55,474 SillaJen 72,300 -200 5,087 Samsung Electronics (P) 37,600 450 30,941 CJ O Shopping 219,800 300 4,819 LG Chem 378,000 6,500 26,684 ViroMed 282,600 3,300 4,509 Hyundai Motor 124,500 -4,000 26,602 Posco Chemtech 69,500 2,500 4,105 Celltrion 212,000 -500 26,597 HLB 82,000 600 3,212 379,500 2,500 25,110 Medy-tox 535,000 5,000 3,026 POSCO 267,000 1,500 23,279 Studio Dragon 94,500 2,300 2,651 SAMSUNG C&T 117,500 500 22,289 PearlAbyss 201,900 4,900 2,613 KEPCO 34,000 -50 21,827 Kolon TissueGene 39,100 -1,150 2,386 Source: Korea Exchange