January 3, 2018

KOREA Morning Focus

Company News & Analysis Major Indices Close Chg Chg (%) POSCO (005490/Buy/TP: W450,000) KOSPI 2,479.65 12.16 0.49 Earnings to continue to climb higher KOSPI 200 326.00 1.26 0.39 KOSDAQ 812.45 14.03 1.76 Sector News & Analysis Turnover ('000 shares, Wbn) Volume Value Auto (Overweight) KOSPI 230,256 4,601 Auto sales end 2017 on a disappointing note KOSPI 200 70,198 3,653 KOSDAQ 977,967 6,567

Market Cap (Wbn) Value KOSPI 1,613,508 KOSDAQ 287,930

KOSPI Turnover (Wbn) Buy Sell Net Foreign 1,149 1,019 130 Institutional 937 1,080 -143 Retail 2,448 2,475 -27

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 448 361 87 Institutional 262 355 -93 Retail 5,861 5,840 21

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 1,051 956 96 KOSDAQ 198 203 -5

Advances & Declines Advances Declines Unchanged KOSPI 498 305 76 KOSDAQ 834 337 80

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Electronics 2,551,000 3,000 432 KODEX KOSDAQ150 20,440 640 264 LEVERAGE Daum Communications 146,500 9,500 193 SAMSUNG BIOLOGICS 389,500 18,500 156 Hynix 76,600 100 154

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value SillaJen 102,500 9,000 670 Diostech 29,250 6,750 356 Healthcare 106,700 -1,900 295 Sky Newpharm 7,580 1,340 269 Celltrion 225,900 4,800 261 Note: As of January 2, 2018 Mirae Asset Daewoo Research

POSCO

(005490 KS) Earnings to continue to climb higher

Steel 4Q17 preview: Earnings improvement to continue Earnings Preview For 4Q17, we see POSCO’s non-consolidated operating profit coming in at W853bn January 3, 2018 (+18.1% QoQ, +74.7% YoY). We believe the main driver of earnings growth was higher steel prices. In 4Q17, China’s spot price for hot-rolled coil (HRC), a key benchmark of steel prices, gained 4.5% QoQ and 24.6% YoY to an average of RMB4,153/tonne, while the domestic spot HRC price also rose 5.5% QoQ and 20.5% YoY to W777,000/tonne.

(Maintain) Buy Steel price uptrend to continue; 1Q18 to be even better than 4Q17 We expect the uptrend in steel prices to extend into 2018, driven by the continued Target Price(12M, W) 450,000 improvement in China’s supply/demand dynamics (see our November 17th report “Structural changes underway”). Chinese steelmakers’ profit margins have improved Share Price (01/02/18, W) 339,000 for the past couple of years thanks to the government’s supply-side restructuring (closures of outdated and illegal facilities) and demand-boosting policies, but are still Expected Return 33% below the manufacturing sector average. The steel sector’s debt ratio also remains 1.7 times higher than the manufacturing sector average. As such, we think it is likely that

the Chinese government will maintain its current policy stance. OP (17F, Wbn) 4,703 Consensus OP (17F, Wbn) 4,694 In particular, we could see a steeper-than-expected price rise in 1Q18 as Chinese traders build up inventory amid the government’s winter production restrictions (from EPS Growth (17F, %) 121.6 November 2017 to March 2018). We expect the winter production cuts to affect around Market EPS Growth (17F, %) 46.7 40mn tonnes of steel, equivalent to 12% of China’s total output during the season (see P/E (17F, x) 9.6 our November 21st report “China’s winter production cuts to support robust roll Market P/E (17F, x) 10.0 margins”). KOSPI 2,479.65 Reaffirm Buy and TP of W450,000 Market Cap (Wbn) 29,556 We reaffirm our Buy call and target price of W450,000 on POSCO. We expect the Shares Outstanding (mn) 87 continued uptrend in steel prices to support higher product pricing at the parent level Free Float (%) 78.8 and earnings growth at steel subsidiaries. Non-steel earnings should also improve now Foreign Ownership (%) 56.1 that group restructuring is complete. POSCO’s stock is currently trading at a 12-month Beta (12M) 0.43 forward P/E of 9.1x and P/B of 0.6x, a discount to major competitors such as China’s 52-Week Low 244,000 Baoshan I&S (P/E of 11x and P/B of 1.2x) and Japan’s NSSMC (P/E of 11x and P/B of 52-Week High 347,000 0.8x). (%) 1M 6M 12M

Absolute 3.2 18.1 30.1 Relative 3.0 13.9 6.3

140 POSCO KOSPI 130 120 110 100 90 80 12.16 4.17 8.17 12.17

Mirae Asset Daewoo Co., Ltd.

[ Metals & Mining] FY (Dec.) 12/14 12/15 12/16 12/17F 12/18F 12/19F Revenue (Wbn) 65,098 58,192 53,084 59,571 62,479 64,954 Jaekwang Rhee +822-3774-6022 OP (Wbn) 3,214 2,410 2,844 4,703 5,096 5,226 [email protected] OP margin (%) 4.9 4.1 5.4 7.9 8.2 8.0

NP (Wbn) 626 181 1,363 3,021 3,265 3,356 EPS (W) 7,181 2,072 15,637 34,650 37,449 38,495 ROE (%) 1.5 0.4 3.3 7.0 7.1 6.9

P/E (x) 38.4 80.4 16.5 9.6 9.1 8.8 P/B (x) 0.6 0.3 0.5 0.6 0.6 0.6 Dividend yield (%) 2.9 4.8 3.1 3.1 3.0 3.0 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.

January 3, 2018 POSCO

Table 1. Quarterly and annual earnings (Wbn, %) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17F 2016 2017F 2018F Sales 12,461 12,857 12,748 15,017 15,077 14,944 15,036 14,514 53,084 59,682 61,477 POSCO (parent) 5,767 6,010 6,107 6,442 7,067 7,134 7,255 7,603 24,325 29,127 30,680 Subsidiaries 6,694 6,848 6,641 8,576 8,010 7,810 7,781 6,911 28,759 30,555 30,797 Operating profit 660 679 1,034 472 1,365 979 1,126 1,233 2,844 4,772 5,194 POSCO (parent) 582 713 852 488 795 585 722 853 2,635 3,022 3,680 Subsidiaries 78 (34) 182 (16) 570 394 404 381 209 1,750 1,514 Pretax profit 545 268 663 (44) 1,325 773 1,231 1,126 1,433 4,455 4,664 Net profit 360 292 546 166 851 513 869 788 1,363 3,021 3,265 Profitability (%) OP margin 5.3 5.3 8.1 3.1 9.1 6.6 7.5 8.5 5.4 8.0 8.4 POSCO (parent) 10.1 11.9 14.0 7.6 11.3 8.2 9.9 11.2 10.8 10.4 12.0 Subsidiaries 1.2 (0.5) 2.7 (0.2) 7.1 5.0 5.2 5.5 0.7 5.7 4.9 Pretax margin 4.4 2.1 5.2 (0.3) 8.8 5.2 8.2 7.8 2.7 7.5 7.6 Net margin 2.9 2.3 4.3 1.1 5.6 3.4 5.8 5.4 2.6 5.1 5.3 Source: Mirae Asset Daewoo Research estimates

Table 2. Key assumptions (Wbn, ‘000 tonnes, W’000/tonne) (Parent) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17F 2016 2017F 2018F Sales (Wbn) 5,767 6,010 6,107 6,442 7,067 7,134 7,255 7,603 24,325 29,127 30,680 Carbon steel 4,561 4,732 4,808 5,074 5,525 5,606 5,796 6,078 19,176 23,047 24,480 STS 816 907 916 933 1,078 1,088 1,057 1,075 3,573 4,323 4,400 Other 389 371 383 434 464 441 402 450 1,577 1,757 1,800 Shipments ('000 tonnes) 8,740 9,005 8,945 9,185 8,722 8,463 8,962 9,000 35,875 35,146 36,000 Carbon steel 8,277 8,492 8,440 8,702 8,239 7,953 8,440 8,500 33,911 33,133 34,000 STS 463 513 505 483 483 509 521 500 1,964 2,013 2,000 ASP (W'000/tonne) 660 667 683 701 810 843 810 845 678 829 852 Carbon steel 551 557 570 583 671 705 687 715 565 696 720 STS 1,764 1,767 1,814 1,931 2,235 2,137 2,028 2,150 1,819 2,148 2,200 Cost per tonne (W'000/tonne) 593 588 587 648 719 774 729 750 605 743 750 OP per tonne (W'000/tonne) 67 79 95 53 91 69 81 95 73 86 102 Source: Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research 2

Auto Overweight (Maintain)

Auto sales end 2017 on a disappointing note

 December domestic sales hit by HMC’s production disruptions  HMC’s and ’s 2017 global wholesales fall 6.5% and 7.8% YoY, respectively Issue Comment  Additional headwinds to weigh on 4Q17 earnings January 3, 2018

1. December domestic sales hit by HMC’s production disruptions Mirae Asset Daewoo Co., In December, domestic sales for the five major automakers slumped 19.7% YoY. In Ltd. [Auto/Tire] particular, Hyundai Motor (HMC), GM Korea, and Renault Samsung suffered sharp declines of roughly 30%. HMC’s domestic sales plunged 26.1% YoY in the month, as production was Young-ho Park +822-3774-1743 derailed by labor strikes after labor and management failed to reach an agreement. The [email protected] disruptions negatively affected the ramp-up of new models, causing shipments of new

models (Kona, etc.) to fall from over 4,000 units in November to fewer than 3,000 units in December. More broadly, aging models weighed on sales across the industry.

Overall, Korean automakers’ domestic sales ended the year at 1.55mn units, down 2.4% YoY. We attribute the contraction to 1) soft car demand, 2) aging models, and 3) the continued

advance of foreign brands. Against this backdrop, HMC and Kia Motors (Kia) have succeeded in improving their competitive strengths and product mix by launching new large vehicles (HMC) and SUVs (Kia).

2. HMC’s and Kia’s 2017 global wholesales fall 6.5% and 7.8% YoY, respectively

HMC’s and Kia’s 2017 global wholesales contracted 6.5% and 7.8% YoY, respectively, to 7.25mn units combined, down sharply from 7.8mn units in 2016. This was largely due to a decline in overseas sales, caused by 1) a steep drop in China production and sales, and 2) soft US sales amid an aging lineup and reduction in fleet sales.

HMC’s and Kia’s December overseas wholesales fell 15.0% and 19.6% YoY, respectively, hurt by 1) weaker sales in China due to reduced purchase tax benefits, and 2) the ongoing impact of aging models in the US. We expect overseas wholesales to gradually improve from 1Q18 onwards, supported by the stockpiling of new models.

3. Additional headwinds to weigh on 4Q17 earnings

HMC’s and Kia’s 4Q17 global wholesales were far below expectations, slipping 8.8% YoY and 10.4% YoY to 1.23mn units and 724,000 units, respectively (from 1.35mn units and 808,000 units, respectively, in 4Q16).

We believe 4Q17 operating earnings will be weaker than previously expected, affected by 1) the sharp YoY decline in global wholesales (recognized as revenue), 2) some unrealized inventory losses, 3) heavy incentive spending in the US, and 4) won appreciation. Expenses related to the recent recall should further cut into operating profit.

That said, our expectation of a 2018 earnings recovery driven by improved marketability and low base effects remains largely intact. We maintain our Trading Buy rating and target price of W177,000 on HMC. We also maintain our Trading Buy rating and target price of W38,000 on Kia.

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.

January 3, 2018 Auto

Table 1. HMC/Kia’s wholesales negatively affected by production disruptions, aging models, and weak core markets (units, %) Dec. 2017 Nov. 2017 MoM Dec. 2016 YoY 2017 2016 YoY

HMC Domestic 53,361 63,895 -16.5 72,161 -26.1 688,939 658,642 4.6 Overseas 353,310 357,632 -1.2 415,689 -15.0 3,815,886 4,156,900 -8.2

Global 406,671 421,527 -3.5 487,850 -16.6 4,504,825 4,815,542 -6.5

Kia Domestic 46,502 49,027 -5.2 49,600 -6.2 521,550 535,000 -2.5 Overseas 180,340 207,973 -13.3 224,394 -19.6 2,224,638 2,444,883 -9.0

Global 226,842 257,000 -11.7 273,994 -17.2 2,746,188 2,979,883 -7.8

Source: Media reports, Mirae Asset Daewoo Research

Table 2. Domestic sales and market shares hurt by HMC’s production disruptions (units, %) Dec. 2017 Nov. 2017 MoM Dec. 2016 YoY 2017 2016 YoY

Domestic sales HMC 53,361 63,895 -16.5 72,161 -26.1 688,939 658,642 4.6 Kia 46,502 49,027 -5.2 49,600 -6.2 521,550 535,000 -2.5

GM (Chevrolet) 11,852 10,349 14.5 18,313 -35.3 132,377 180,275 -26.6

Renault Samsung 9,953 8,302 19.9 14,078 -29.3 100,537 111,101 -9.5

SsangYong 10,647 8,769 21.4 10,700 -0.5 106,677 103,554 3.0

Total 132,315 140,342 -5.7 164,852 -19.7 1,550,080 1,588,572 -2.4

Market shares HMC 40.3 45.5 -5.2 43.8 -3.4 44.4 41.5 3.0 Kia 35.1 34.9 0.2 30.1 5.1 33.6 33.7 0.0

GM (Chevrolet) 9.0 7.4 1.6 11.1 -2.2 8.5 11.3 -2.8

Renault Samsung 7.5 5.9 1.6 8.5 -1.0 6.5 7.0 -0.5

SsangYong 8.0 6.2 1.8 6.5 1.6 6.9 6.5 0.4

Source: KAMA, media reports, Mirae Asset Daewoo Research

Mirae Asset Daewoo Research 2

Mirae Asset Daewoo Research Key Universe Valuations January 3, 2018

※All data as of close December 29, 2017, 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 005380 Hyundai Motor 32,931 149,500 3.1 17.2 16.4 31.5 15.0 7.5 6.5 0.6 0.5 7.8 8.4 005490 POSCO 29,556 339,000 2.8 8.8 2.5 7.7 2.8 9.0 8.7 0.6 0.6 7.2 7.0 035420 NAVER 29,172 885,000 0.1 26.5 16.8 32.6 16.3 26.2 22.5 4.1 3.5 20.7 19.8 051910 LG Chem 29,013 411,000 1.5 8.0 13.3 14.8 13.8 12.8 11.3 1.7 1.5 14.6 14.7 068270 Celltrion 27,710 225,900 - - - - 0.0 0.0 105560 KB Financial Group 26,383 63,100 11.5 3.7 -0.6 3.7 7.7 7.4 0.7 0.7 9.6 9.2 207940 Samsung Biologics 25,771 389,500 1031.1 242.1 - 386.7 597.9 122.8 6.4 6.1 1.1 5.1 012330 25,017 257,000 1.5 18.4 4.5 19.4 3.7 8.5 8.2 0.7 0.7 9.2 8.8 032830 Samsung Life 24,500 122,500 - - - - 0.0 0.0 015760 KEPCO 24,234 37,750 3.2 20.5 3.9 19.1 6.6 6.0 5.6 0.3 0.3 5.5 5.6 055550 23,425 49,400 -0.2 6.1 -1.1 6.0 7.0 6.6 0.7 0.6 9.6 9.4 017670 SK Telecom 21,438 265,500 3.8 4.9 6.0 8.4 -5.4 7.1 7.6 1.0 0.9 16.1 13.6 034730 SK Holdings 19,912 283,000 1.3 9.6 -0.7 12.3 7.2 9.0 8.4 1.2 1.0 14.5 13.6 096770 SK Innovation 19,094 206,500 3.9 3.0 5.2 0.3 5.1 8.2 7.8 1.0 0.9 12.3 11.8 051900 LG Household & Health Care 18,742 1,200,000 0.8 10.5 10.2 10.2 9.8 29.2 26.6 5.8 5.0 22.3 20.6 090430 AmorePacific 18,268 312,500 0.6 41.3 20.0 49.7 20.6 31.9 26.5 4.5 4.0 15.1 16.0 066570 LG Electronics 17,919 109,500 0.6 35.8 10.3 14.4 8.7 8.8 8.1 1.2 1.1 15.0 14.2 251270 Games Corporation 16,027 188,500 16.0 -2.8 17.6 -3.6 38.4 39.8 3.5 3.2 9.5 8.4 033780 KT&G 15,789 115,000 3.6 5.4 4.8 12.6 7.1 13.1 12.2 1.8 1.7 15.0 14.7 003550 LG Corp. 15,668 90,800 1.4 3.3 0.0 -7.6 0.0 9.4 9.4 1.0 0.9 10.6 9.7 018260 Samsung SDS 15,630 202,000 0.4 10.1 5.7 12.1 5.7 26.4 25.0 2.6 2.4 10.2 9.8 086790 15,067 50,900 18.0 7.0 14.3 7.4 7.0 6.5 0.6 0.5 8.6 8.5 091990 Celltrion Healthcare 14,654 106,700 64.5 44.1 29.6 56.9 45.2 28.8 12.2 8.6 31.2 34.9 006400 Samsung SDI 14,578 212,000 0.5 366.2 45.6 54.7 11.6 13.1 11.7 1.2 1.1 9.7 9.9 000270 Kia Motors 13,296 32,800 3.7 113.9 6.7 62.5 8.8 5.4 4.9 0.5 0.4 8.8 8.9 010950 S-Oil 13,172 117,000 6.6 39.0 14.2 29.9 14.2 9.0 7.9 1.8 1.6 21.2 21.8 000810 Samsung F&M 12,578 265,500 - - - - 0.0 0.0 011170 Lotte Chemical 12,356 360,500 1.7 9.6 8.4 10.7 9.0 4.7 4.4 0.9 0.7 20.4 18.6 002790 AmoreG 12,039 146,000 0.3 34.9 11.5 50.2 11.7 39.4 35.3 3.8 3.5 10.5 10.7 034220 LG Display 10,681 29,850 1.7 -49.2 95.4 -51.5 98.6 11.3 5.7 0.7 0.6 6.4 11.7 035720 Corp. 9,949 146,500 0.2 33.5 8.9 12.3 9.8 71.8 65.4 2.4 2.3 3.4 3.6 036570 NCSOFT 9,796 446,500 2.0 52.1 1.6 43.6 1.5 13.5 13.3 3.0 2.5 25.2 21.4 010130 Korea Zinc 9,426 499,500 1.7 8.8 12.5 16.2 12.0 11.9 10.6 1.4 1.3 12.8 12.9 024110 9,184 16,400 7.5 6.4 7.8 7.2 6.6 6.2 0.5 0.5 8.0 8.0 030200 KT 7,846 30,050 2.7 5.3 1.0 21.2 11.4 8.8 7.9 0.6 0.5 7.2 7.6 004020 7,633 57,200 1.3 9.4 5.8 9.2 6.9 7.7 7.2 0.4 0.4 5.8 5.9 009150 Samsung Electro-Mechanics 7,544 101,000 0.7 75.1 13.7 81.2 17.4 25.9 22.1 1.6 1.5 6.7 7.4 021240 Coway 7,310 97,700 3.8 8.6 7.3 10.9 6.6 19.0 17.9 6.3 5.7 37.0 35.9 018880 Hanon Systems 7,206 13,500 - - - - 0.0 0.0 161390 6,813 55,000 0.9 42.8 11.2 40.5 11.8 7.3 6.5 0.9 0.8 13.5 13.3 128940 6,609 592,000 -11.3 162.5 -9.1 180.9 124.5 44.3 8.5 7.1 7.1 17.6 032640 LG Uplus 6,134 14,050 3.9 9.8 1.3 14.1 0.5 10.1 10.1 1.1 1.0 11.4 10.6 009540 6,092 107,500 - - - - - 21.1 0.8 0.8 - 3.9 088350 Hanwha Life 5,949 6,850 - - - - 0.0 0.0 078930 GS Holdings 5,807 62,500 2.4 10.4 9.6 11.8 8.9 6.7 6.1 0.7 0.7 11.2 11.1 009830 Hanwha Chemical 5,365 32,550 1.1 8.4 4.2 0.8 11.4 5.4 4.8 0.8 0.7 15.1 14.6 086280 5,175 138,000 2.2 3.4 3.2 3.6 -1.2 8.1 8.2 1.2 1.1 15.5 13.6 005830 DB Insurance 4,977 70,300 - - - - 0.0 0.0 097950 CJ CheilJedang 4,895 371,500 0.7 14.4 7.3 -13.6 5.5 15.7 14.9 1.4 1.3 9.3 9.1 047810 Korea Aerospace Industries 4,718 48,400 1.4 - 29.4 - 46.7 48.7 33.2 3.7 3.5 7.6 10.8 Source: Mirae Asset Daewoo Research

Mirae Asset Daewoo Research Market Data January 3, 2018

※All data as of close January 2, 2018, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea (Dec. 28) 554.16 0.00 0.00 0.00 USD/KRW 1,071.40 1,071.40 1,085.10 1,208.50 KOSPI 2,479.65 12.16 0.49 0.00 JPY100/KRW 951.05 949.11 963.16 1,034.45 KOSDAQ 812.45 14.03 1.76 0.00 EUR/KRW 1,286.91 1,279.25 1,291.00 1,272.37 Dow Jones* 2,4719.22 -118.29 -0.48 0.00 3Y Treasury 2.12 2.14 2.08 1.64 S&P 500* 2,673.61 -13.93 -0.52 0.00 3Y Corporate 2.66 2.68 2.64 2.12 NASDAQ* 6,903.39 - 46.77 -0.67 0.00 DDR2 1Gb* 1.32 1.32 1.28 1.17 Philadelphia Semicon* 1,253.05 -13.25 -1.05 0.00 NAND 16Gb* 2.87 2.87 2.88 1.87 FTSE 100* 7,687.77 64.89 0.85 0.00 Oil (Dubai)* 64.33 63.85 60.97 44.65 Nikkei 225 22,764.94 -19.04 -0.08 0.00 Gold* 1,309.30 1,297.20 1,282.10 1,187.90 Hang Seng* 29,919.15 55.44 0.19 0.00 Customer deposits (Wbn)(Dec. 28) 27,461 26,928 27,072 22,437 Taiwan (Weighted) 10,710.73 67.87 0.64 0.00 Equity type BC (Wbn)(Dec. 28) 77,779 77,366 73,056 74,002 Note: * as of December 29, 2017 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 ROBOTICS 21.57 45.91 Daum Communications 23.93 Samsung Electronics 59.77 KODEX 200 19.70 Hyundai Merchant Marine 8.83 SAMSUNG BIOLOGICS 18.69 Hyundai Motor 42.10 POSCO 14.46 Samsung Electronics (P) 7.81 Korean Air Lines 14.62 31.42 Hynix 13.70 LG Electronics 7.63 Hyundai Eng. & Cosnt. 9.96 Hynix 25.37 Hana Financial Group 12.32 LG Display 7.24 Samsung Heavy Ind. 9.58 Hyundai Mobis 17.79 NHN 10.78 Kolong Industries 5.38 KODEX LEVERAGE 8.51 KODEX 200 16.16 LG Chem 10.01 Samsung Heavy Ind. 4.54 Doosan Infracore 7.60 KODEX KOSDAQ150 LEVERAGE 12.98 Daum Communications 9.87 Samsung SDI 4.28 LG Electronics 7.53 CJ Corp. 12.54 SAMSUNG BIOLOGICS 8.68 KODEX LEVERAGE 3.58 Poongsan 7.52 KEPCO 12.32 TIGER200 8.19 Doosan Bobcat 3.05 Hanwha Chemical 7.47 Kia Motors 12.26 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 SillaJen 28.71 Paradise 8.70 SillaJen 4.98 Celltrion Healthcare 34.13 Celltrion Healthcare 12.23 CJ E&M 3.76 Medipost 4.62 Celltrion 30.31 Celltrion 6.68 Oscotec 3.19 KH Vatec 3.38 PearlAbyss 12.19 Vidente 5.45 NATURECELL 2.95 Paradise 3.38 Webzen 9.20 Medy-tox 4.67 Interflex 2.22 Woori Technology 3.17 BH,LTD. 6.81 SKPI 4.25 SFA Engineering 1.80 ISPLUS 2.78 Celltrion 4.67 HLB 3.06 Optomagic CO. 1.78 Posco Chemtech 2.65 SKPI 4.50 Celltrion 2.97 Austem 1.78 Solid Technologies 2.46 Jtuen Entertainment 3.78 Medipost 2.85 ViroMed 1.64 ECOPRO 2.28 SK Materials 3.67 Sky Newpharm 2.76 BH,LTD. 1.64 L&F 2.15 INNOX Advanced Materials 3.42 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 2,551,000 3,000 329,330 Celltrion 225,900 4,800 27,710 Hynix 76,600 100 55,765 Celltrion Healthcare 106,700 -1,900 14,654 Samsung Electronics (P) 2,097,000 7,000 38,271 SillaJen 102,500 9,000 6,970 Hyundai Motor 149,500 -6,500 32,931 CJ E&M 96,100 -1,600 3,722 POSCO 339,000 6,500 29,556 TissueGene(Reg.S) 54,300 2,500 3,282 NHN 885,000 15,000 29,172 PearlAbyss 249,000 1,400 3,005 LG Chem 411,000 6,000 29,013 Medy-tox 498,400 13,500 2,819 KB Financial Group 63,100 -300 26,383 LOEN 110,200 -2,300 2,787 SAMSUNG BIOLOGICS 389,500 18,500 25,771 ViroMed 166,300 3,000 2,654 Hyundai Mobis 257,000 -6,000 25,017 Posco Chemtech 40,500 700 2,392 Source: Korea Exchange