April 24, 2015

KOREA

Company News & Analysis Major Indices Close Chg Chg (%) Hyundai Motor (005380/Trading Buy/TP: W202,000) Downgrade rating KOSPI 2,159.80 -13.61 -0.63 A little more patience needed KOSPI 200 271.05 -1.54 -0.56 KOSDAQ 690.74 -1.74 -0.25 Yuhan (000100/Buy/TP: W277,000) Raise TP Solid profit gains expected in 1Q Turnover ('000 shares, Wbn) Volume Value KT&G (033780/Buy/TP: W115,000) Raise TP KOSPI 503,418 8,115 Tax hike shock fading away KOSPI 200 141,882 6,289 KOSDAQ 599,825 4,347

Cheil Worldwide (030000/Buy/TP: W30,000) Raise TP Market Cap (Wbn) Reviving growth through a carrot-and-stick strategy Value KOSPI 1,346,808 SK Hynix (000660/Buy/TP: W64,000) KOSDAQ 185,771 A strong start to 2015 KOSPI Turnover (Wbn) Samsung C&T (000830/Buy/TP: W72,000) Lower TP Buy Sell Net Foreign 2,131 1,597 534 Investment asset value to provide downside support Institutional 1,639 2,073 -434 Retail 4,280 4,361 -81 LS Industrial Systems (010120/Buy/TP: W83,000) A slight earnings slowdown in 1Q KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 278 266 12 Sector News & Analysis Institutional 204 286 -82 Securities (Overweight) Retail 3,852 3,786 66 Still too early to call a valuation bubble Program Buy / Sell (Wbn) Buy Sell Net KOSPI 1,589 1,416 173 KOSDAQ 40 47 -7

Advances & Declines Advances Declines Unchanged KOSPI 346 459 60 KOSDAQ 439 531 69

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Samsung Electronics 1,410,000 -41,000 542 KODEX LEVERAGE 12,550 -160 356 CHEIL INDUSTRIES 169,500 -9,500 224 KODEX INVERSE 7,425 45 223 Hyundai Motor 177,500 2,000 215

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Agabang 15,200 1,050 341 Celltrion 81,600 800 200 Boryung Medience 26,850 3,500 112 Medipost 93,000 -4,000 90 SK Broadband 4,825 205 68 Note: As of April 24, 2015

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.

Hyundai Motor (005380 KS) A little more patience needed

Auto 1Q15 review: Revenue and OP miss consensus by 1.2% and 4.4% Hyundai Motor (HMC) reported 1Q15 preliminary revenue of W20.9tr (-3.3% YoY, - Results Comment 11.2% QoQ) and operating profit of W1.59tr (-18.1% YoY, -15.3% QoQ), both of which April 24, 2015 missed market expectations (by 1.2% and 4.4%, respectively). As expected, the automotive division’s earnings were hit by a decline in utilization rate, rise in incentives, and the negative impact from the F/X environment. The automotive division posted revenue of W16.5tr (-6.7% YoY) and operating profit of W1.2tr (-17.5% YoY) with OP (Downgrade) Trading Buy margin of 7.3% (below our estimates of 7.6%). On the other hand, the finance division’s revenue exceeded our estimates on Hyundai Capital America’s continued solid growth. Target Price (12M, W) 202,000 However, overall OP margin missed expectations at 9.2%, a 2.9%p decline from 1Q14’s margin of 12.1%. Pretax profit and net profit exceeded market expectations by 1.2% Share Price (04/23/15, W) 175,500 and 14.2%, respectively, as equity-method gains totaled W616bn, W100bn higher than our estimate and marking a better-than-expected F/X-related gain. Despite the overall Expected Return 15% earnings miss, HMC’s 1Q15 earnings were broadly in line with market’s already lowered expectations.

OP (15F, Wbn) 7,190 Earnings to improve in 2Q15, albeit amid continued negative YoY growth Consensus OP (15F, Wbn) 7,438 We expect to see QoQ earnings improve in 2Q15 as HMC enters a period of seasonal strength, accompanied by the new Tucson’s launch contributing to earnings. However, EPS Growth (15F, %) 1.5 we expect to have to wait until 4Q15 to see YoY improvement in earnings. Although we Market EPS Growth (15F, %) 37.9 anticipate solid new model momentum from the new Tucson, the supply constraint in P/E (15F, x) 6.7 the US market (as the Tucson is 100% exported from Korea) could limit the positive Market P/E (15F, x) 11.1 impact. Furthermore, until the new Tucson is fully launched in global markets and starts KOSPI 2,173.41 contributing to earnings (which we should see in 4Q15), w e are more concerned about Market Cap (Wbn) 38,659 the rise in competition and the aging Elantra model, which will pressure HMC to increase Shares Outstanding (mn) 285 incentives throughout 2015, especially with the car segment expected to remain weak. Free Float (%) 68.0 Maintain TP of W202,000, but lower rating to Trading Buy Foreign Ownership (%) 44.8 Beta (12M) 1.65 We lower HMC’s rating to Trading Buy from Buy, as we anticipate limited upside to 52-Week Low 151,000 earnings, and since the recent spike in share price has reduced the upside potential to 52-Week High 245,500 15% of our target price (unchanged at W202,000). Although HMC trades at an attractive P/E of 6.2x and P/B of 0.8x, especially given our expectations of QoQ earnings (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M improvement in 2Q15, such improvement would mostly be on the back of a low base of Absolute -2.0 2.6 -28.4 comparison and seasonality than a fundamental recovery. Competition in the car Relative -8.1 -8.8 -34.1 segment is growing, all the while as the SUV segment is expanding . This poses major concerns for HMC, as 75% of its product portfolio is in the car segment . Moreover, the 130 Hyundai Motor KOSPI firm is grappling with limited supply for higher-demand models. While HMC is working 110 to expand production of the new Tucson, talks with the labor union will take time; even

90 if the union does approve the additional capacity, it will come online in late 2H15 at the earliest. Thus, we are maintaining our cautious view on HMC until we see a more solid 70 fundamental recovery.

50 4.14 8.14 12.14 4.15

Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/12 12/13 12/14 12/15F 12/16F 12/17F Revenue (Wbn) 84,470 87,308 89,256 90,133 93,375 95,173 [Auto/Auto Parts/Tire] OP (Wbn) 8,441 8,315 7,550 7,190 8,020 7,834

Michael Yun OP margin (%) 10.0 9.5 8.5 8.0 8.6 8.2 +822-768-4169 NP (Wbn) 8,567 8,542 7,347 7,457 7,841 7,815 [email protected] EPS (W) 30,008 29,921 25,735 26,120 27,467 27,375 ROE (%) 21.1 17.8 13.4 12.3 11.7 10.6 Young-ho Park +822-768-3033 P/E (x) 7.3 7.9 6.6 6.7 6.4 6.4 [email protected] P/B (x) 1.4 1.3 0.8 0.8 0.7 0.6 Notes: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, KDB Daewoo Securities Research estimates

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

Yuhan (000100 KS) Solid profit gains expected in 1Q

Healthcare 1Q15 preview: Revenue of W244.2bn (+8% YoY), OP of W16.4bn (+17% YoY) We forecast Yuhan to post 1Q revenue of W244.2bn (+8.1% YoY). By division, we Earnings Preview estimate revenue grew to W184.9bn (+12.4% YoY) for pharmaceuticals, W17.9bn (+3% April 24, 2015 YoY) for health/wellness, and W36.8bn (+5% YoY) overseas. We believe overall growth was driven by t he ethical drugs (ETC) unit, where revenue likely rose 11% YoY to

W158.6bn on the robust sales of licensed-in drugs Viread (hepatitis B) and Tradjenta (Maintain) Buy (diabetes). We project 1Q operating profit to come in at W16.4bn (+16.8% YoY), driven by Target Price (12M, W) 277,000 marketing spend reductions and increased exports of high-margin ac tive pharmaceutical ingredients (APIs). Share Price (04/23/15, W) 226,000 Exports of hepatitis C treatment APIs to expand in 2015 Expected Return 23% We expect Yuhan’s 2015 exports to e xpand 10.2% YoY to W162.5bn. More specifically, we see API exports for AIDS treatments and antibiotics declining to W68.8bn (-6.8% OP (15F, Wbn) 81 YoY) and W5.5bn (-47.8% YoY), respectively, but expect exports of hepatitis C Consensus OP (15F, Wbn) 80 treatment APIs to jump 50.8% YoY to W74.2bn.

EPS Growth (15F, %) 35.3 We believe Yuhan is supplying APIs for two new hepatitis C treatments—Gilead’s Market EPS Growth (15F, %) 37.9 Harvoni and AbbVie’s Viekira Pak, which both received US FDA approval in 2014 and are P/E (15F, x) 23.4 seen as potential blockbusters. We believe the APIs for these two drugs are highly Market P/E (15F, x) 11.1 profitable. Furthermore, Gilead is currently developing another hepatitis C treatment, KOSPI 2,173.41 and chances are high Yuhan will supply the APIs. We thus anticipate exports of hepatitis C treatment APIs to continue to grow over the medium and long term. Market Cap (Wbn) 2,520 Shares Outstanding (mn) 11 2015 equity-method gains to expand 18%; Raise TP by 19.4% to W277,000 Free Float (%) 75.1 We project Yuhan’s 2015 equity-method gains to rise 17.6% YoY to W59.7bn, driven by Foreign Ownership (%) 26.8 Beta (12M) 0.65 earnings improvements at Yuhan-Kimberly and Yuhan Chemical. We forecast 2015 52-Week Low 164,000 revenue and net profit at W1.54tr (+10.0% YoY) and W166.2bn (+15.3% YoY), 52-Week High 233,000 respectively, for Yuhan Kimberly, and W118.7bn (+9.5% YoY) and W6bn (+21.6% YoY), respectively, for Yuhan Chemical. (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M Absolute 25.6 18.9 24.9 We lift our target price on Yuhan to W277,000 (from W232,000). In deriving our target Relative 17.7 5.7 14.9 price, we used the stock’s historical high P/E of 24.8x (based on a 12-month forward EPS including equity-method profits), as we believe the company’s profits will grow

140 Yuhan KOSPI meaningfully, supported by improving subsidiary earnings and increasing API exports. 130 We maintain the stock as our second-favorite pick in pharmaceuticals. 120 110 100 90 80 4.14 8.14 12.14 4.15

Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/12 12/13 12/14 12/15F 12/16F 12/17F Revenue (Wbn) 763 932 1,008 1,091 1,188 1,256 [Healthcare] OP (Wbn) 30 56 67 81 93 99

Hyun-tae Kim OP margin (%) 3.9 6.0 6.6 7.4 7.8 7.9 +822-768-3251 NP (Wbn) 70 72 81 110 125 137 [email protected] EPS (W) 6,109 6,312 7,149 9,675 10,982 11,992 ROE (%) 6.2 6.2 6.8 8.8 9.2 9.3 Seung-min Kim +822-768-4157 P/E (x) 28.3 29.6 23.7 23.4 20.6 18.8 [email protected] P/B (x) 1.6 1.6 1.4 1.8 1.6 1.5 Note: All figures are based on non-consolidated K-IFRS Source: Company data, KDB Daewoo Securities Research estimates

KT&G (033780 KS) Tax hike shock fading away

Tobacco 1Q15 review: Results inflated by inventory gains KT&G announced that its 1Q15 consolidated revenue and operating profit grew 18% Results Comment and 64.7% YoY, respectively. The strong growth was due to a temporary gain on existing cigarette inventory as a result of the price (tax) hikes . Adjusting for this effect, April 24, 2015 we estimate revenue and operating profit declined 12.5% and 31.4% YoY, respectively. At the tobacco business (KT&G), revenue and operating profit increased 22% and 67% YoY, respectively. Domestic revenue expanded 33.1% YoY , but this was attributable to a (Maintain) Buy 127% YoY jump in ASP caused by the inventory effect (ASP should normalize in 2Q). Domestic sales volume actually fell 41.4% YoY in the quarter (overall market volume Target Price (12M, W) 115,000 shrank 35.1% YoY). Stripping out the inventory effect, we estimate revenue and operating profit declined 23.2% and 42.9% YoY, respe ctively, in line with our Share Price (04/23/15, W) 98,700 expectations. The company’s cigarette market share slipped 6%p YoY to 56.6%. Cigarette exports (including overseas production) were weaker than expected, rising Expected Return 17% 1.6% YoY, affected by temporary delays in exports to the US and Africa. (Exports normalized in April.)

OP (15F, Wbn) 1,229 At the red ginseng business (KGC), revenue and operating profit rose 15.7% and 32.8 % YoY, respectively, driven by 1) reduced discounts, 2) Lunar New Year holiday gift sales, Consensus OP (15F, Wbn) 1,073 3) robust sales of new products, and 4) an increase in Chinese tourists. EPS Growth (15F, %) 6.5 Decline in sales volume to slow in the coming quarters Market EPS Growth (15F, %) 37.9 P/E (15F, x) 15.4 We expect the YoY decline in domestic cigarette sales volume to slow in the coming quarters, from -41.4% in 1Q to -27% in 2QF, -25% in 3QF, and -25% in 4QF. In 2016, we Market P/E (15F, x) 11.1 anticipate volume to grow 10% YoY and ASP to rise 1%, driving domestic revenue up KOSPI 2,173.41 11.5% YoY. Market Cap (Wbn) 13,551 As the sales volume decline moderates, we believe KT&G’s investment case will Shares Outstanding (mn) 137 strengthen in light of the following points. Free Float (%) 83.1 Foreign Ownership (%) 55.2 1) Dividend appeal (2014 DPS of W3,400; dividend yield of 4%): Falling interest rates have fueled strong interest and demand in dividend stocks. We believe KT&G could raise Beta (12M) 0.44 its dividends given its ample cash flow (W1tr). 52-Week Low 76,000 52-Week High 104,000 2) Potential market share recovery: The recent price cuts of foreign cigarette brands will likely prove short-lived. If foreign brands begin raising prices again, KT&G’s market (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M share should slowly start to recover. In terms of market share, we believe 1Q15 marked Absolute 19.5 5.3 17.5 a bottom (56.6%). Relative 12.0 -6.4 8.1 Raise TP by 21% to W115,000; Tax hike shock fading away

130 KT&G KOSPI After falling sharply between December 2014 and February 2015 due to cigarette tax 120 hikes, KT&G’s stock has been bouncing back since March, helped by the slowing decline 110 in sales volume at convenience stores. In 2016, we expect operating p rofit to recover to the 2014 level. Given the stock’s dividend appeal and continued BPS growth, w e 100 maintain our Buy rating. We revise up our target price to W115,000 (from W95,000) in 90 light of the dissipation of the tax hike shock. 80 4.14 8.14 12.14 4.15

Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/12 12/13 12/14 12/15F 12/16F 12/17F Revenue (Wbn) 3,985 3,822 4,113 4,104 4,122 4,274 [F&B/Tobacco] OP (Wbn) 1,036 1,013 1,172 1,229 1,120 1,174

Woon-mok Baek OP margin (%) 26.0 26.5 28.5 29.9 27.2 27.5 +822-768-4158 NP (Wbn) 738 571 826 879 828 862 [email protected] EPS (W) 5,376 4,157 6,013 6,403 6,033 6,280 ROE (%) 14.9 11.0 15.1 15.0 13.2 12.9 Jungyeon Kwon +822-768-4161 P/E (x) 15.0 17.9 12.7 15.4 16.4 15.7 [email protected] P/B (x) 2.0 1.8 1.8 2.1 2.0 1.9 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

Cheil Worldwide (030000 KS) Reviving growth through a carrot-and-stick strategy

Media 1Q15 review: Gross profit and operating profit come in line Cheil Worldwide’ s 1Q15 earnings results came largely in line with our expectations. Results Comment Growth recovered in the quarter, with gross profit, operating profit, and net profit up 20%, 14%, and 31% YoY, respectively. April 24, 2015 M&A effect: Europe has been one of Cheil’s most underperforming regions since 3Q14. In 1Q, however, gross profit in the region jumped 64% YoY, thanks to the consolidation (Maintain) Buy of the recently acquired UK retail/digital marketer Iris Worldwide. Growth in China: The Chinese market has been a steady source of growth for the Target Price (12M, W) 30,000 company. In 1Q, gross profit in China grew 16% YoY, driven by digital marketing subsidiary Cheil PengTai. In 1Q, two major accounts were added: ChinaHR.com and Share Price (04/23/15, W) 24,200 Fidelity.

Reviving growth through a carrot-and-stick strategy Expected Return 24% Following a disappointing performance in 2014, Cheil Worldwide has been making a number of efforts to revive growth since late last year. The company has mainly OP (15F, Wbn) 157 adopted a carrot-and-stick approach by taking aggressive actions a gainst Consensus OP (15F, Wbn) 150 underperforming businesses, such as restructuring and M&As, while simultaneously reinforcing and building up growing businesses. EPS Growth (15F, %) 21.3 Market EPS Growth (15F, %) 37.9 By region: Europe and China are where the carrot-and-stick strategy comes into play. In Europe, deteriorating earnings h ave forced the company to rethink its strategy. As a P/E (15F, x) 22.6 result, the company has restructured some of its struggling businesses in the region. At Market P/E (15F, x) 11.1 the same time, the company acquired Iris WorldWide to tap into Europe’s growing retail KOSPI 2,173.41 and digital marketing marke t. In China, we believe the company will focus on Market Cap (Wbn) 2,784 strengthening its presence. While China’s ad market is quickly growing, competition is Shares Outstanding (mn) 115 getting fiercer at the same time. Currently, Cheil is focusing on bolstering the digital marketing capabilities of Peng Tai, which it acquired in 2009, and remains on the lookout Free Float (%) 61.8 for further M&A opportunities in the country. Foreign Ownership (%) 28.9 Beta (12M) 1.01 By media channel: Cheil’s key areas of focus are retail and digital marketing. The two 52-Week Low 15,600 media channels together accounted for 56% of overall gross profi t in 1Q15, up from 52-Week High 25,200 32% in 2010. With its largest advertiser being Samsung Electronics, Cheil is likely to concentrate on shopper marketing, which aims to appeal to consumers by providing (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M direct product experiences. Digital advertising is growing globally, but the pace of Absolute 3.6 12.0 0.4 growth has been especially high in emerging markets. Relative -2.9 -0.4 -7.6 Maintain Buy and Raise TP to W30,000 130 Cheil Worldwide KOSPI We reiterate our Buy rating on Cheil Worldwide and raise our target price to W30,000 110 (from W27,000). In 2Q, the company is likely to benefit from 1) the arrival of the global advertising industry’s peak season, and 2) robust marketing activities for the Galaxy S6. 90 The domestic ad market is also showing signs of picking up and advertising 70 deregu lations are getting underway. We revised up our 2015F EPS by 2.3% and applied a P/E of 28x, the average multiple of Asian peers, including the Chinese digital ad agency 50 4.14 8.14 12.14 4.15 BlueFocus.

Daewoo Securities CCo.,o., Ltd. FY (12) 12/12 12/13 12/14 12/15F 12/16F 12/17F Revenue (Wbn) 2,365 2,709 2,666 2,673 2,863 3,071 [Telecom Service / Media] OP (Wbn) 126 130 127 157 174 193

Jee-hyun Moon OP Margin (%) 5.3 4.8 4.8 5.9 6.1 6.3 +822-768-3615 NP (Wbn) 94 99 102 123 135 149 [email protected] EPS (W) 817 857 883 1,072 1,172 1,297 ROE (%) 13.6 14.7 13.2 13.1 12.6 12.3

P/E (x) 26.4 32.1 19.5 22.6 20.7 18.7 P/B (x) 3.1 3.5 2.0 2.5 2.2 2.0 Note: 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

SK Hynix (000660 KS) A strong start to 2015

Technology 1Q15 review: Revenue of W4.8tr (+29% YoY), OP of W1.59tr (+50% YoY) For 1Q15, SK Hynix reported revenue of W4.8tr (+29% YoY) and operating profit of Results Comment W1.59tr (+50% YoY), beating both our estimates (W4.7tr and W1.44tr ) and the consensus (W4.7tr and W1.48tr). Net profit also came in better than expected, boosted April 24, 2015 by F/X translation gains. DRAM: 1Q DRAM shipments and ASP declined 5% and 4% QoQ, respectively. PC DRAM prices fell due to muted PC demand and the slowdown in emerging economies, but (Maintain) Buy overall earnings were in line, supported by healthy server-related demand. Despite weaker revenue QoQ, OP margin gained 2.2%p to 44% thanks to t he smooth migration Target Price (12M, W) 64,000 to 2Ynm. In 2Q, the company is expected to meaningfully increase its mix of mobile DRAM at the expense of PC DRAM. 2Ynm should rise to 60% of overall production, and Share Price (4/23/15, W) 45,800 wafer input for 2Znm mass production is also scheduled to begin in 2Q. NAND: 1Q NAND shipments remained flat QoQ, while ASP slipped 7% QoQ . Shipments Expected Return 40% were better than our projection (-7% QoQ) due to 1) the effects of new smartphone releases, and 2) increased stand-alone sales (using inventory). Shipments of multi-chip packages (MCP) for use in low- to mid-tier smartphones declined, but shipments of OP (15F, Wbn) 6,207 MCPs bundled with LPDDR3 increased. As such, MCPs made up around 10% of overall Consensus OP (15F, Wbn) 6,127 revenue, similar to the previous quarter’s level. That said, profit margins did not show any meaningful improvement. In 2Q, the mass production of 128GB triple-level cell EPS Growth (15F, %) 14.8 (TLC) NAND is expected to begin. While SK Hynix is already producing TLC NAND on a Market EPS Growth (15F, %) 37.9 stand-alone basis, the firm will begin supplying embedded TLC NAND for smartphones P/E (15F, x) 6.8 for the first time in 2Q. In 2H, the chip maker will also release TLC-based solid-state Market P/E (15F, x) 11.1 drives (SSD), which should provide a huge lift to NAND margins. KOSPI 2,173.41 Watch for shift to mobile DRAM and NAND margin gains Market Cap (Wbn) 33,343 In 2015, we expect global memory shipment growth to be in the high-20% range for Shares Outstanding (mn) 728 DRAM and over 40% for NAND. We project SK Hynix’s DRAM shipments to grow in line Free Float (%) 78.2 with the overall market, but NAND shipments should outpace the market. For 2Q, we forecast the company’s DRAM and NAND shipments to increase 6% and 10% QoQ, Foreign Ownership (%) 51.5 respectively. The decline in PC DRAM contract prices is likely to eat into DRAM margins , Beta (12M) 0.44 but this should be partially offset by NAND margin gains. Memory prices should stabilize 52-Week Low 39,700 from 2Q, backed by the industry’s shift to mobile DRAM. 52-Week High 51,900 SK Hynix’s NAND cost efficiency should improve going forward, given that TLC mass (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M production is slated to begin in 2Q and 3D NAND sample production is set to start later Absolute -4.9 0.7 12.4 this year. As for demand, we see NAND bit growth of over 40% in 2015 due to increased Relative -10.9 -10.5 3.4 use in smartphones and strong demand for high-storage MCPs. The company plans to spend around W5tr in 2015, slightly more than last year. Construction of the new M14

160 SK Hynix KOSPI line should be completed in 2Q, after which equipment placement should begin. 140 Maintain Buy and TP of W64,000 120 SK Hynix’s stock is currently trading at a 12-month forward P/E of 6.5x and P/B of 1.4x. In our view, the recent correction caused by soft PC DRAM demand and worries over 100 BOE’s market entry is largely overdone. We believe investors should focus on the 80 positives ahead in 2Q, mainly the transition to mobile DRA M and NAND margin 4.14 8.14 12.14 4.15 improvements.

Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/12 12/13 12/14 12/15F 12/16F 12/17F Revenue (Wbn) 10,162 14,165 17,126 19,590 20,784 22,214 [Semiconductor] OP (Wbn) -227 3,380 5,109 6,207 6,850 7,580

Jonathan Hwang OP margin (%) -2.2 23.9 29.8 31.7 33.0 34.1 +822-768-4140 NP (Wbn) -159 2,872 4,195 4,881 5,550 6,392 [email protected] EPS (W) -233 4,099 5,842 6,704 7,624 8,780 ROE (%) -1.8 25.2 27.0 24.0 21.9 20.6 Joon-ho Jang +822-768-3241 P/E (x) - 9.0 8.2 6.8 6.0 5.2 [email protected] P/B (x) 1.8 2.0 1.9 1.5 1.2 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

Samsung C&T (000830 KS) Investment asset value to provide downside support

Construction 1Q15 review: Earnings deterioration at both construction and trading units For 1Q15, Samsung C&T announced revenue of W6.1tr (-5.6% YoY, -20.2% QoQ) , Results Comment operating profit of W48.8bn (-57.7% YoY, -75.4% QoQ), and net profit of W109.4bn April 24, 2015 (-17.8% YoY, turning to profit QoQ). Revenue and operating profit were worse than both our projections and the consensus.

1) Construction: The construction unit’s operating profit missed our estimate by (Maintain) Buy W39bn, hurt by cost overruns (W18bn) related to the Qatar roads/bridges project (contract value of W0.5tr) as well as losses resulting from dela ys to the Seoul metro Target Price (12M, W) 72,000 project.

Share Price (4/23/15, W) 61,400 2) Trading: The trading unit suffered a decline in profits from overseas oil fields due to the fall in oil prices, but gained an estimated W8bn in profits (non-operating) from the Expected Return 17% Ontario wind power project. Overall, the unit broke even, affected by deteriorating conditions in the steel and petrochemical segments.

OP (15F, Wbn) 526 3) Non-operating items: The company saw W10.1bn in equity-method gains and Consensus OP (15F, Wbn) 652 W123.7bn in dividend income (a sharp rise from W87.3bn in 1Q14), but was hit with a W50.5bn penalty related to the Korea Gas (KOGAS) gas pipeline construction project EPS Growth (15F, %) 61.9 and a W3.5bn fine related to price-fixing for the Saemangeum project. Market EPS Growth (15F, %) 37.9 P/E (15F, x) 22.5 Construction: Overseas revenue to decline, but affiliate revenue to rise in 4Q Market P/E (15F, x) 11.1 We expect construction revenue growth to slow going forward. First, despite improving KOSPI 2,173.41 housing market conditions, Samsung C&T’s housing revenue is unlikely to grow visibly Market Cap (Wbn) 9,592 because of its smaller presale volume compared to peers’. Furthermore, revenue from Shares Outstanding (mn) 161 the Roy Hill iron project should begin to materially decline from 3Q. Given a high base of Free Float (%) 80.1 comparison in 2H14, we see limited earnings momentum until 4Q, when earnings could Foreign Ownership (%) 33.1 pick up on meaningful contributions from group affiliate orders. Beta (12M) 1.42 Trading: Volatility is increasing, but earnings should improve in 2Q 52-Week Low 51,900 52-Week High 78,800 In 1Q, weaker overseas E&P profits (due to lower oil prices) and unfavorable trading market conditions weighed on the trading business . However, earnings should pick up (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M from 2Q on the back of a rebound in oil prices. That said, the increasing volatility of Absolute 4.6 -14.5 -5.1 earnings and lack of restructuring effects remain a concern. Relative -2.0 -24.0 -12.7

Investment asset value to provide downside support 130 Samsung C&T KOSPI 120 Samsung C&T’s stakes in Samsung Electronics (SEC) and Samsung SDS still ac count for a 110 large portion of its enterprise value. Despite weak earnings, we believe the value of the 100 company’s investment assets will keep downside risks limited. That said, operating value 90 is unlikely to recover meaningfully any time soon, given lingerin g concerns regarding the 80 Roy Hill project and volatile trading earnings. We remain Buy on Samsung C&T, but cut 70 4.14 8.14 12.14 4.15 our target price to W72,000 (from W75,000).

Daewoo Securities CCo.,o., Ltd.Ltd.Ltd. FY (Dec.) 12/12 12/13 12/14 12/15F 12/16F 12/17F Revenue (Wbn) 25,326 28,433 28,446 27,678 28,239 29,941 [Construction/Construction Materials] OP (Wbn) 490 433 652 526 590 687

Hyung-ryul Park OP margin (%) 1.9 1.5 2.3 1.9 2.1 2.3 +822-768-4165 NP (Wbn) 451 242 271 439 480 467 [email protected] EPS (W) 2,801 1,507 1,684 2,726 2,987 2,901 ROE (%) 4.3 2.1 2.2 3.3 3.5 3.3 Ye-gee Kim +822-768-4155 P/E (x) 22.3 40.2 36.5 22.5 20.6 21.2 [email protected] P/B (x) 0.8 0.9 0.7 0.7 0.7 0.7 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

LS Industrial Systems (010120 KS) A slight earnings slowdown in 1Q

Machinery 1Q15 preview: Revenue of W514.4bn (-8% YoY), OP of W32bn (-8% YoY) For 1Q, LS Industrial Systems (LSIS) is expected to record revenue of W514.4bn (-7.9% Earnings Preview YoY), operating profit of W32.3bn (-7.9% YoY), and net profit of W21bn (-3% YoY), missing the market consensus. OP margin is projected at 6.3% (flat YoY). April 24, 2015 Reasons for the earnings slowdown: 1) Exports to Iraq dropped sharply due to the ISIS threat. From 2H11 to 1H14, Iraq-bound exports of transmission and distribution (T&D) systems had driven up the company ’s overall exports, reaching 9% of total revenue. (Maintain) Buy Since 2H14, however , a sharp decrease in orders from the country amid escalating geopolitical risks has dragged down revenue. Although orders resumed recently, Target Price (12M, W) 83,000 revenue is still likely to remain depressed through 1H15. 2) LS Metal, a wholly-owned subsidiary of LSIS, is believ ed to have suffered a YoY decline in revenue and an operating Share Price (04/23/15, W) 60,000 loss in 1Q due to the plunge in copper prices and weak results at the thick stainless steel tube business. 3) We expect lackluster results at the automation, transportation SOC, and RFID businesses. Expected Return 38% On a positive note, we expect solid revenue for the power equipment, T&D systems, and photovoltaic systems businesses, despite tepid domestic demand. OP (15F, Wbn) 161 On the non-operating side, LSIS is anticipated to see F/X derivatives losses due to the Consensus OP (15F, Wbn) 181 won ’s depre ciation against the US dollar. Meanwhile, the upward revision to the EPS Growth (15F, %) 8.8 company ’s credit rating brought down borrowing rates. In addition, as the company has used its healthy cash flow to pay back debt steadily, interest expenses w ill likely Market EPS Growth (15F, %) 37.9 decrease going forward. P/E (15F, x) 15.5 Market P/E (15F, x) 11.1 Attractive cash flow; Exports to the Middle East to expand in 2H KOSPI 2,173.41 LSIS has stood out during hard economic times because of its strong sales and cash- Market Cap (Wbn) 1,800 generating ability. The company engages in various businesses that are less sensitive to cyclical fl uctuations, and has acquired competitiveness and built a strong reputation Shares Outstanding (mn) 30 along the way. LSIS is also diversifying exports, making inroads into new markets in the Free Float (%) 51.8 Middle East, including Iran. Although exports to Iraq have slowed recently after two Foreign Ownership (%) 17.9 years o f sharp growth, the company is anticipated to see exports recover in 2H15. LSIS Beta (12M) 0.19 is also making steady investments in new areas, reinforcing its mid- to long-term growth 52-Week Low 57,800 prospects. 52-Week High 67,800 Maintain Buy and TP of W83,000 (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M We reiterate our Buy rating and target price of W83,000 for LSIS. Although slowing Absolute 0.7 -2.9 -11.2 exports will likely depress earnings in 1H, the company is anticipated to maintain stable Relative -5.7 -13.7 -18.3 cash flow on the back of strong domestic margins. And given the expected recovery of exports to Iraq and the company’s expansion into other Middle East markets, revenue

120 LS Industrial Systems KOSPI should see a boost starting in 2H. 110 The stock is trading at a 2015F P/E of 13x and a P/B of 1.5x, vs. foreign peers’ 2015F 100 P/Es of 14-16x and P/Bs of over 3x. Given LSIS ’s competitiveness, solid reputation, and 90 sustainable growth potential, we believe the company is steeply undervalued compared 80 to foreign competitors. 70 4.14 8.14 12.14 4.15

Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/12 12/13 12/14 12/15F 12/16F 12/17F Revenue (Wbn) 2,232 2,352 2,294 2,296 2,446 2,604 [Shipbuilding & Machinery] OP (Wbn) 154 175 158 161 176 195

Ki-jong Sung OP margin (%) 6.9 7.4 6.9 7.0 7.2 7.5 +822-768-3263 NP (Wbn) 100 117 107 116 136 156 [email protected] EPS (W) 3,344 3,884 3,561 3,872 4,536 5,200 ROE (%) 12.5 13.2 11.1 11.3 12.2 12.7 Ho-seung Lee +822-768-4176 P/E (x) 20.1 16.9 16.8 15.5 13.2 11.5 [email protected] P/B (x) 2.3 2.1 1.8 1.6 1.5 1.4 Note: 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

Securities Still too early to call a valuation bubble

COE is trending down Many market watchers are arguing that brokerage stocks have become too expensive, mostly citing historical P/B-ROE comparison data . However, we believe this fairly Overweight (Maintain) simplistic approach overlooks an important point, which is that risk-free rates have fallen, and as a result, the cost of equity (COE) has also declined. Industry Report Too early to call a bubble given lower COE April 24, 2015 To illustrate our point, we analyzed Samsung Securities’ quarterly ROE, as well as the relationship between the firm’s theoretical P/B and actual P/B.

Daewoo Securities CCCo.,Co., Ltd. We expect Samsung Securities’ ROE to reach 11% in 2Q or 3Q. Dividing this figure by a

[Securities/Insurance] COE of 10% (the rate typically applied in the past), the stock’s target P/B would be 1.1x. However, if we reflect the fall in the risk-free rate, COE would be 7.72%, which translates

Gil-won Jeong into a higher target P/B of 1.3x. +822-768-3256 Another factor that needs to be considered is the difference between theoretical and [email protected] actual valuations. Historical data shows a steady widening of the gap between Samsung

Ju-hyun Kim Securities’ actual multiple and its theoretical multiple. While both multiples have m oved +822-768-4149 in the same direction, the stock’s actual multiple has almost always exceeded the [email protected] theoretical. On average, the P/B gap has been 0.7x.

During market booms, the gap has typically grown to 1.5x. Indeed, share performance has historically outpaced theoretical multiple expansion during bull runs , causing the gap to widen. At present, such a robust multiple gap is not reflected in Samsung Securities’ stock price. In sum, we believe it is too early to call a valuation bubble, in light of the 1) sharp fall in COE and 2) the historical gap between theoretical and actual multiples.

Maintain Overweight; Top picks are Kiwoom, Samsung, and KIH In addition to bringing down COE, low interest rates have changed financial consumers’ attitudes towards investment returns. Previously, many people were reluctant to assume risk, since they could earn a steady stream of reasonable returns by depositing their money with banks and insurers. Now, however, more people are investing in repurchase agreements (RP) or equity-linked securities (ELS) and buying stocks in order to achieve the same level of returns.

We raise our target price on Samsung Securities to W92,000 (from W68,000). We also plan to revise up our target prices for other brokerage firms under our coverage . Overall, we are looking at an upward earnings revision of roughly 30%, in light of 1) increasing trading value and 2) the positive feedback loop between ELS issuance and early redemptions.

Samsung Securities: Gap between actual and theoreticaltheoretical P/Bs has disappeared (x) 3.5 Actual P/B Theoretical P/B 3.0

2.5

2.0

1.5

1.0

0.5

0.0

-0.5 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

Source: Company data, KDB Daewoo Securities

Key Universe Valuations April 24, 2015

※All data as of close April 23, 2015, unless otherwise noted.

15F Earnings growth Mkt Cap Price P/E (x) P/B (x) ROE (%) Ticker Company Div Yield OP EPS (Wbn) (W) (%) 15F 16F 15F 16F 15F 16F 15F 16F 15F 16F 005930 Samsung Electronics 207,692 1,410,000 1.1 12.9 9.4 8.7 5.5 9.6 9.1 1.2 1.1 14.5 13.5 005380 Hyundai Motor 39,099 177,500 1.9 -4.8 11.5 1.5 5.2 6.8 6.5 0.8 0.7 12.3 11.7 000660 SK Hynix 34,362 47,200 0.8 21.5 10.4 14.8 13.7 7.0 6.2 1.5 1.2 24.0 21.9 015760 KEPCO 30,076 46,850 1.3 15.4 7.3 199.0 -57.2 3.7 8.7 0.5 0.5 14.0 5.5 012330 Hyundai Mobis 24,579 252,500 1.3 3.7 12.4 7.2 8.6 6.7 6.2 0.9 0.8 14.8 14.0 017670 SK Telecom 23,416 290,000 3.4 16.6 7.0 17.7 6.2 11.1 10.4 1.3 1.2 13.9 13.5 090430 AmorePacific 22,705 3,884,000 0.3 41.3 29.3 52.2 32.9 46.5 35.0 7.9 6.6 18.5 20.6 005490 POSCO 22,494 258,000 3.1 11.8 11.6 229.0 11.0 10.9 9.8 0.5 0.5 4.9 5.2 035420 NAVER 21,986 667,000 0.1 37.5 23.6 62.9 22.4 29.5 24.1 6.7 5.3 32.8 29.6 055550 Shinhan Financial Group 21,529 45,400 - - - - 0.0 0.0 032830 Samsung Life 21,400 107,000 - - - - 0.0 0.0 018260 Samsung SDS 20,699 267,500 0.2 20.1 17.8 12.5 18.4 44.6 37.6 4.5 4.1 10.6 11.4 000270 Kia Motors 20,552 50,700 2.3 1.8 26.8 -0.7 27.7 6.9 5.4 0.8 0.7 12.5 14.2 051910 LG Chem 18,490 279,000 1.4 39.4 26.3 53.9 29.5 15.4 11.9 1.6 1.4 10.6 12.4 105560 KB Financial Group 16,092 41,650 - - - - 0.0 0.0 000810 Samsung F&M 14,307 302,000 - - - - 0.0 0.0 051900 LG Household & Health Care 14,010 897,000 0.5 32.9 21.7 33.0 24.3 34.2 27.5 7.5 6.1 25.3 25.3 033780 KT&G 13,029 94,900 3.6 4.9 -8.9 6.5 -5.8 14.8 15.7 2.0 1.9 15.0 13.2 034730 SK C&C 12,225 244,500 0.8 18.4 11.8 287.4 8.6 24.8 22.8 3.6 3.2 19.6 18.2 003550 LG Corp. 12,062 69,900 1.4 18.0 4.2 18.5 5.9 9.8 9.3 0.9 0.8 9.4 9.2 096770 SK Innovation 11,050 119,500 2.7 - 20.5 - 22.5 13.6 11.1 0.7 0.7 5.3 6.2 034220 LG Display 11,003 30,750 1.6 77.8 -34.9 93.5 -34.2 6.3 9.6 0.8 0.8 14.3 8.5 009540 Hyundai Heavy Industries 10,906 143,500 - 213.9 - 490.7 99.3 16.8 0.7 0.6 0.7 4.2 066570 LG Electronics 10,195 62,300 1.0 1.2 26.2 174.9 27.6 10.3 8.0 0.9 0.8 9.0 10.5 086790 Hana Financial Group 9,349 32,250 - - - - 0.0 0.0 011170 Lotte Chemical 9,289 271,000 0.4 164.5 30.1 377.8 34.5 13.2 9.8 1.3 1.2 10.4 12.5 000830 Samsung C&T 9,248 59,200 1.0 -19.4 12.2 61.9 9.6 21.7 19.8 0.7 0.7 3.3 3.5 086280 Hyundai Glovis 9,206 245,500 0.8 7.2 14.0 -0.9 15.9 17.3 14.9 2.9 2.4 17.7 17.6 010130 Korea Zinc 9,143 484,500 1.3 6.5 16.8 12.2 16.9 16.3 13.9 1.8 1.6 11.6 12.3 004020 Hyundai Steel 9,033 77,500 1.0 12.3 3.8 37.4 0.3 8.6 8.6 0.6 0.6 7.4 7.0 006400 Samsung SDI 8,974 130,500 0.8 241.8 6.5 - 4.4 23.6 22.6 0.8 0.7 3.3 3.4 010950 S-Oil 8,613 76,500 2.5 - 32.9 - 28.9 17.1 13.3 1.6 1.5 10.1 11.9 024110 Industrial Bank of Korea 8,541 15,350 - - - - 0.0 0.0 023530 Lotte Shopping 8,518 270,500 0.6 11.3 12.6 37.8 13.4 11.3 9.9 0.5 0.5 4.4 4.8 003600 SK Holdings 8,453 180,000 1.4 29.8 6.2 34.0 -3.9 6.0 6.2 0.6 0.5 10.9 9.5 035250 Kangwon Land 8,173 38,200 2.6 10.0 10.8 15.2 13.2 19.7 17.4 2.6 2.4 14.7 15.2 030200 KT 7,964 30,500 2.6 - 5.9 - -41.2 7.0 12.0 0.6 0.6 10.4 5.7 001800 Orion 7,767 1,300,000 0.5 17.1 9.0 24.6 15.0 38.1 33.1 5.4 4.7 15.3 15.4 021240 Coway 7,327 95,000 2.7 18.4 12.4 23.9 14.3 23.7 20.7 5.5 4.9 27.6 27.6 088350 Hanwha Life 6,688 7,700 - - - - 0.0 0.0 035720 Daum Kakao 6,568 110,700 1.0 173.5 39.3 83.9 45.2 35.1 24.2 9.2 7.1 29.7 34.3 139480 Emart 6,384 229,000 0.7 7.3 17.6 34.2 22.1 16.4 13.4 0.9 0.8 5.5 6.3 000720 Hyundai E&C 6,125 55,000 1.1 16.8 15.6 35.8 21.5 10.2 8.4 1.0 0.9 10.5 11.5 002380 KCC 5,902 561,000 1.4 15.4 2.8 -20.9 4.3 23.8 22.8 1.1 1.1 4.7 4.8 161390 Hankook Tire 5,643 45,550 1.0 -0.9 12.0 2.2 21.2 7.9 6.5 1.1 0.9 14.7 15.5 097950 CJ CheilJedang 5,347 407,000 0.5 29.8 14.8 190.5 31.3 22.0 16.7 1.8 1.6 8.6 10.4 19306. 009150 Samsung Electro-Mechanics 5,214 69,800 0.7 38.3 -49.5 32.5 21.3 16.1 1.1 1.1 5.5 6.9 4 008770 Hotel Shilla 4,985 127,000 0.3 67.2 50.8 111.9 58.2 32.6 20.6 5.8 4.6 19.4 25.0 016360 Samsung Securities 4,861 63,600 - - - - 0.0 0.0 032640 LG Uplus 4,650 10,650 2.3 22.2 1.6 58.1 6.7 12.9 12.1 1.0 1.0 8.3 8.3 Source: KDB Daewoo Securities Research

Market Data April 24, 2015

※All data as of close April 24, 2015, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 436.06 4.89 1.13 12.77 USD/KRW 1,083.20 1,081.80 1,115.90 1,039.50 KOSPI 2,159.80 -13.61 -0.63 12.11 JPY100/KRW 905.80 901.61 932.99 1,014.25 KOSDAQ 690.74 -1.74 -0.25 24.74 EUR/KRW 1,171.81 1,159.96 1,223.14 1,436.59 Dow Jones* 18,058.69 20.42 0.11 1.27 3Y Treasury 1.77 1.75 1.80 2.88 S&P 500* 2,112.93 4.97 0.24 2.66 3Y Corporate 2.01 1.98 2.06 3.31 NASDAQ* 5,056.06 20.89 0.41 6.97 DDR2 1Gb* 1.20 1.20 1.21 1.73 Philadelphia Semicon* 705.46 -11.36 -1.58 2.73 NAND 16Gb* 1.89 1.89 2.02 3.02 FTSE 100* 7,053.67 25.43 0.36 7.73 Oil (Dubai)* 60.00 59.26 52.65 106.02 Nikkei 225 20,020.04 -167.61 -0.83 15.00 Gold* 1,194.40 1,186.90 1,187.70 1,284.20 Hang Seng* 27,827.70 -106.15 -0.38 16.64 Customer deposits (Wbn)* 21,211 21,798 17,590 15,029 Taiwan (Weighted) 9,913.28 115.79 1.18 6.89 Equity type BC (Wbn)(Apr. 22) 77,515 77,606 78,610 82,411 Note: * as of April 23, 2015 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 73.89 Samsung Electronics (P) 26.88 POSCO 68.47 Samsung Electronics 210.06 Hynix 69.08 POSCO 26.40 Samsung Life Insurance 29.31 Samsung Corp. 61.82 Hyundai Motor 58.19 KT&G 13.37 Hyundai Motor 28.47 LG Display 31.04 Kia Motors 56.04 SEMCO 11.04 Hynix 22.68 Hyundai Eng. & Cosnt. 20.07 Hyundai Mobis 35.99 Industrial Bank of Korea 7.48 KT&G 18.84 LG Household & Health Care 18.45 SK Telecom 33.79 S-Oil 7.11 Kia Motors 16.77 Samsung SDI 15.74 Shinhan Financial Group 26.54 CHEIL INDUSTRIES 6.85 Woori Bank 12.96 Woori Investment Securities 15.50 LG Electronics 26.34 Lotte Chil Sung Beverage 6.74 Korea Gas Corp. 11.99 Korean Air Lines 14.37 Hana Financial Group 25.36 Hanwha Chemical 6.56 Daelim Industrial 11.06 LG Life Sciences 14.27 KEPCO 21.27 Daelim Industrial 6.34 LG Hausys 9.70 LG Chem 13.78 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 Sansung P&C 5.67 Celltrion 10.57 SK Broadband 27.40 SM 8.07 CJ E&M 5.57 ATTO 3.84 ATTO 4.33 Sansung P&C 7.45 NaturalendoTech 5.13 Cell Biotech 2.84 Com2us 2.73 Celltrion 6.78 CJ O Shopping 3.83 COSON 2.76 iNtRON Bio 1.94 Partrion 6.43 SM 2.68 Daebongls 2.10 HyVISION 1.87 ViroMed 5.29 Boryung Medience 2.66 Eugene Technology 1.92 Binex 1.85 OCI Materials 4.93 Webzen 2.50 i-SENS 1.91 Kolon Life Science 1.46 Daum Communications 3.91 GS Home Shopping 2.38 Dongsuh 1.76 Leeno 1.33 CJ E&M 3.06 Medipost 2.06 KH Vatec 1.75 Maeil Dairy Industry 1.25 KREIT 3.02 Eugene Corporation 2.00 Kornic Systems 1.56 CrucialTec 1.22 Medipost 2.97 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 1,410,000 -41,000 207,692 Celltrion 81,600 800 8,878 Hyundai Motor 177,500 2,000 39,099 Daum Communications 110,700 -2,800 6,568 Hynix 47,200 1,400 34,362 Dongsuh 31,650 500 3,156 KEPCO 46,850 1,050 30,076 Paradise 26,450 450 2,405 Hyundai Mobis 252,500 6,500 24,579 CJ E&M 56,600 400 2,192 Samsung Electronics (P) 1,072,000 -62,000 24,477 Medy-tox 371,000 4,500 2,099 SK Telecom 290,000 15,000 23,416 Com2us 182,200 700 1,838 CHEIL INDUSTRIES 169,500 -9,500 22,883 Sansung P&C 90,000 -100 1,615 Amore Pacific 3,884,000 0 22,705 GS Home Shopping 246,000 -8,900 1,614 POSCO 258,000 6,000 22,494 CJ O Shopping 252,000 2,100 1,564 Source: Korea Exchange