Kun Ho Hwang Chairman Address to the Australia- Korea Business Forum

Agenda 2 I. Korea Financial Investment Association II. Economic Cooperation between Australia & Korea II. Economic Cooperation between Australia & Korea III. Australian Financial Services Reform Act IV. The Need for Mutual Cooperation V. FSR Act Dramatically Advanced Australian IB & Asset Management Business V. FSR Act Dramatically Advanced Australian IB & Asset Management Business VI. Importance of Investor Education

3 Created in Feb Through the Merger of Asset Management Association of Korea Korea Futures Association Korea Securities Dealers Association The Sole Self-regulatory Organization The Sole Self-regulatory Organization Governing the Korean Capital Market Governing the Korean Capital Market The Sole Self-regulatory Organization The Sole Self-regulatory Organization Governing the Korean Capital Market Governing the Korean Capital Market I. Korea Financial Investment Association

4 First Australia-Korea Economic Treaty Signed in 1975  Australia is Korea’s 8 th largest trading partner  As of 2008, Korea is Australia’s 4 th largest trading partner Cooperation has significantly contributed to growth in Korea’s manufacturing sector Time to strengthen our capital market ties Major Trading Partners to Australia Unit: US$ Billion II. Economic Cooperation between Australia & Korea

5 FSR Act in 2001 Created a Climate for Australian Industry to Become Globally Competitive  The largest in Asia in overseas bond issuance  6 th most active market in global M&A  The largest stock market cap. in Asia (free-float) ex. Japan Global Position of Australian Financial Sector  Macquarie’s total investment in Korea : AUS $20bil.  Macquarie, an example of a successful entry into overseas market III. Australian Financial Services Reform Act Australian Financial Companies Highly Successful in Korea Australian Financial Companies Highly Successful in Korea

6 Inspired by Australia’s Success, Korea Enacts Revolutionary Reform Measures  Financial Investment Services and Capital Market Act (Feb. 2009) The Global Financial Crisis Requires Greater Cooperation As the influence of the US & UK wanes, the Asia Pacific region begins to play a greater role IV. The Need for Mutual Cooperation Australia and Korea must share their experiences of financial reform and work together to grasp this new opportunity Australia and Korea must share their experiences of financial reform and work together to grasp this new opportunity

7 Reform of Australia’s Superannuation Regulatory System Growth of Superannuation Assets Enabled industry to develop new innovative products, leading to a 15% increase in assets, ensuring greater investor protection V. FSR Act Dramatically Advanced Australian IB & Asset Management Business

8 Raise Investor Confidence, Providing Momentum for Stable Growth of the Market  MOU with Financial Services Institute of Australia (2006)  Today, MOUs with the Australian Financial Markets Association, and the Investment and Financial Services Association  KOFIA takes the lead by running the Korea Council for Investor Education from 2005 MOUs with our Australian Partners Improve Investor Education and Nurture Professionals VI. Importance of Investor Education Our cooperation will offer more opportunities for both our financial sectors Our cooperation will offer more opportunities for both our financial sectors

9 “Good Company Makes a Journey Shorter” Closing Remarks Through mutual cooperation, our two nations can overcome any obstacle in this financial crisis Through mutual cooperation, our two nations can overcome any obstacle in this financial crisis