Woongjin.com November 2002

Table of Contents Company Overview Business Outlook Industry Overview Financial HighlightsWOONGJIN.COM

Company Overview Investment Highlights Company Milestones Business Overview Sales Revenue Breakdown Ownership StructureWOONGJIN.COM

Company Overview Investment Highlights Private Education Market in Korea - Higher reliance on private education - Market size : KRW 18,369 bn(2001) KRW 25,421bn (2005E) Private Education Market in Korea - Higher reliance on private education - Market size : KRW 18,369 bn(2001) KRW 25,421bn (2005E) 1. A leading children’s publisher in Korea - Target Age Group 0 to 12 years only 2. Constant growth since the establishment - No negative growth rate in 20 years of company’s history 3. Marketing-oriented company : 920 sales branches nationwide - Exclusive sales agent : 17,000 - Tutors : 10, Cash-basis sales : Strong cash flow, No bad debt 5. Think Big : A fastest growing market player - CAGR : 25% - Subscribers (As of Dec 31, 2001) : 843, Decrease the debt level to zero (April. 2002) - The increase of operating margin results from organizational restructuring 7. CEO’s commitment to constant change and transparent management 8. Constant Innovation & Profit-Improvement as a result of new CEO 3

Constant innovation and growth in an ever-changing business environment. To be the best publishing company Started Its English Education business(‘Englab’) Changed Company name to Woongjin.com Awarded Planning & Editing Award by Korean Publisher Association Launched its infant education business Awarded Bokwan Cultural Medal Listed on the Korea Stock Exchange Launched Think Big: Learning material and educational Service Changed company name to Woongjin Publishing.Co Established as a publishing house for infants and children Company Milestones Company Overview Merge of Edubig.com Nominated to Korean Industrial ‘Good Image’ Company

Educational service Think Big (5~12) Infant Education(0~5) Educational service Think Big (5~12) Infant Education(0~5) New Business Education Toys (0~7) On-line Education (0~12) New Business Education Toys (0~7) On-line Education (0~12) Publication Series publications(0~12) Magazine (All) Separate Volume Publication (All) Publication Series publications(0~12) Magazine (All) Separate Volume Publication (All) Innovative Leader In the Education and publishing industry Innovative Leader In the Education and publishing industry Business Overview 5 Company Overview

Sales Revenue Breakdown Total of KRW 454 billion Total of KRW 291 billion Company Overview 6

Paid in Capital KRW 18 Million Market Capital: KRW 142 Billion (As of November 4, 2002) Outstanding shares : 35,857,210 Ownership Structure Company Overview 7

Business Outlook Business Structure Operating System Door-to-Door Sales Division Think Big Division Infant Education Division English Education DivisionWOONGJIN.COM

Business Outlook / Business Structure Business Structure (By Products) AllMagazines Sales of 8 different magazines (Enfant, My Wedding, Figaro...etc) Direct sales /bookshops kinds(1,235 titles) of general interest All Single Volume Publication 17,000 sales forces - Home visit - Direct sales/Membership - 57 products of series publication 0~12 Door to Door Sales Publication (46%) 0~12 Internet Education - Home Visit - Monthly subscription - Tutoring Services for 9 products Mathematics Story, Gabe Wooden Blocks 0~7 Infant Education - Home Visit & Study room system - Monthly subscription - Think Big Series (8 products) : Korean, English, Maths etc. - Tutoring services 5~12 Think Big Educational Service (54%) Marketing Channels Sales MethodProducts/Business Model Target Age DivisionClassification web sites - charge contents -Profit from charged digital contents and marketing support for offline products ,200 Tutors 1,100 Tutors Direct sales /bookshops 9

Woongjin.com Business Outlook / Operating Structure Marketing Channel Door-to-Door Sales force - 17,000 Teacher - Think Big : 9,200 - Infant Education : 1,100 Operating System Support System Outside VendorsCustomers R&D - In-house development 60% - Licensing 40% Training Programs Printing & Binding 100% Outsourcing Cash Sales (95%) Installment Sales (5%) Sales Commission (48.6%) Publications & Educational Service Cash Sales (95%) Installment Sales (5%) 10

Business Outlook / Door-to-Door Sales Division Door to Door Sales Division Introduction Products : Encyclopedia,Reference, Storybook, Picture book and 57 other products Marketing Channel : 17,000 sales forces visit customers' homes and offices Target Age : 0~12 Children Sales method : Cash sales (85%), Credit sales (15%) Majority of sales forces are housewives : Closeness to customers New challenges to Door to Door sales : Pole Star Department Competitiveness Strong marketing channel throughout the nation (650 distribution channel) Positive brand image "Publishing Quality Books" Ability to satisfy different demographic market segment (E)2003(E)2004(E) (unit : KRW billions) Sales Revenue CAGR 14.2%

Business Outlook / Think Big Division Think Big Division Introduction Products : Think Big Series (Korean, English, Mathematics, Chinese Characters etc, 8 products) Target Age : Children aged between 5~12 Marketing Channel : 9,400 tutors 'Home visit’ or 'Studyroom’ system(tutor's home) = 60% : 40% Tutoring Service : Once a week 30 minutes (KRW 24,000 ~ 32,000 per month) or twice a week an hour (KWR 51,000 per month) 100% cash sales Increase in price ( ) : 8~10% Competitiveness Contents focused on creativity: Affiliates national educational standards Differentiated tutoring services : Twice a week tutoring services, Studyroom system Profit from integration of online and offline(www. thinkbig.co.kr) Qualified in tutoring and sales tutors : Since its launch in 1994, top ranked in the industry (E)2003(E) (unit : KRW billions) (unit : thousand people) (E)2003(E) Subscribers Instructors Sales Revenue Subscribers & Instructors , CAGR 29.3%

Business Outlook / Infant Education Division Infant Education Division Products : 8 Educational series publication and Education Toys Target Age : Children aged between 0 ~ 7 Marketing Channel : 1,100 tutors visit students' homes Sales method : Provide tutoring services to requested customers(KRW 35,000 ∼ 50,000 per month) Launch of new market: Educational Toy ( ) Introduction Competitiveness Generates revenue with Door to Door Sales Division --> Door to Door Sales Division sells series publication and provides tutoring services to the customers Operates quality training courses to educate tutors (Ehwa - Woongjin Academy) (E)2003(E) Sales Revenue (E)2003(E) Subscribers & Instructors CAGR 46.9% (unit : KRW billions) (unit : thousand people) Subscribers Instructors

Industry Overview Infant and Children Population Private Education Market Learning Materials Industry Publishing Industry English Education IndustryWOONGJIN.COM

Industry Overview / Infant and Children Population Infant and Children Population 7,291 7, , E2003E2004E 2005E 7,123 7,180 7,232 7,271 7,238 In thousands persons Potential demand (80%) 15

21,485 23, , E2003E2004E 2005E 14,725 17,254 18,369 19,686 In KRW billions Private Education Market 25,421 Higher Reliance on private education than public education High educational zeal: Parents are willing to pay Private education market depends on quality of contents, not population Higher Reliance on private education than public education High educational zeal: Parents are willing to pay Private education market depends on quality of contents, not population Private Education Market 16 Industry Overview / Private Education Market

Leaning Materials Market Sell Learning Materials (6 subjects including Korean, English, Mathematics, Chinese Characters) and provide Tutoring Service on monthly subscription basis Target Age : Children aged between 5~12 Research done by Korean Education Development Institute (‘2001) Size of Education Materials Market : KRW 3,120 Billion Expected Annual Average Growth Rate 13% by 2005 (Woongjin.com’s annual growth rate:30%) Size of Educational Material Market (in KRW billions) 2,841 3,120 3,510 4,030 4,680 5,330 Industry Overview / Learning Materials Industry 17

Publishing Industry Main products are series publication, single volume publication, learning materials, video, CD and Cassette Tape - Single volume books are sold through wholesalers and domestic retailers - Series publications, educational materials are sold through door to door sales system [Usually purchased after long consideration rather than impulsive buying] Target Age : Aged between 0 ~ 12 Research done by Korean Education Development Institute('2001) Size of Publication Market : KRW 2,730 Billion Expected Annual Average Growth Rate 10% by 2005 (Woongjin.com's annual growth rate: 13%) Size of Publication Market (in KRW billions) 2,470 2,730 2,990 3,250 3,510 3,900 Industry Overview / Publishing Industry 18

Financial Highlights Financial Projection Profitability Enhancement Strategy Financial Stability Affiliate Status

Financial Projection Financial Highlights 2002 (E)2004 (E) (E) (E) 978 Sales Net Profit (KRW Billion) Number three player in the learning materials industry (0.84million Think Big subscribers) Infant Education business to turn black (BEP sales KRW 20 billion) Running of the business without borrowings Successful launch of Educational Toys market 1.2 million Think Big subscribers Market Leader in Study Material’s Market Number two in the learning materials industry Stabilize online education business Find opportunities in emerging education market including China Attain 1.7 million Think Big subscribers in the learning materials market Door-to-Door sales reach KRW 336 billion in sales 20

Financial Stability Borrowings (KRW billions) E03E NO Debt Short term debts Long term debts Total Net Cash (KRW billions) 0102E03E Financial Highlights 21 -5

Affiliate Status Financial Highlights (Dec. 31, 2001) Others Woongjin Coway Development Woongjin Food Sales Net Profit (KRW billion) Sales & Net Profit (E)Payment Guarantee [71] [59] [22] [4][4] (KRW billion) (E) [0][0]

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