Korea Securities Depository October, 2009

Contents 1. About KSD 2. Scope of Business 3. Corporate Action in Korea

Established in 1974 Sole CSD in Korea under the related law Member of ACG (Asia Pacific Central Securities Depository Group) Special membership of AECSD 1. About KSD 1. About KSD

Contents 1. About KSD 2. Scope of Business 3. Corporate Action in Korea

Deposit & Settlement Entitlements processing Transfer agent / Bond Registrar Value added business – International services – Securities Lending & Borrowing (SLB) – Fund Net Service 2. Scope of Business 2. Scope of Business

Scope of Business of KSD Training Program w/ KOICA 200 people Invited from 10 countries KSD provides Consulting Service Expert Dispatch SystemImplementation KSDFoundation dispatch experts for on-site consultation SLB/Repo, Fund Settlement System e.g. SLB implementation to Thailand Established in 2009 Education of finance and Economics Support facilities and Equipment

Contents 1. about KSD 2. Scope of Business 3. Corporate Action in Korea

20 Corporate Actions in Korean Securities Market Beneficial Beneficial Owner system Advantage One Example Beneficial Owner The people whose shares are deposited in CSD and registered in CSD’s name The people whose shares are deposited in CSD and registered in CSD’s name. What is Beneficial owner system?

21 Advantage One Example Beneficial Owner system Beneficial BeneficialOwner 1.One part of the securities depository system 2.allows the beneficial owners to have the status of shareholders 3.allows exercise their right against the issuer Beneficial Owner System System Corporate Actions in Korean Securities Market What is Beneficial owner system?

A Part of the securities depository system Central Securities Depository Stock custody Shareholder’s rights Account book Stock Trades Account book Depository System Book-entry system Beneficial owner system Corporate Actions in Korean Securities Market

Operational structure Corporate Actions in Korean Securities Market CSDIssuer Registration in the name of CSD Exercise of rights for deposited shares Secondary Market Efficient Settlement Enforced Liquidity

21 Advantage One Example Beneficial BeneficialOwner Advantage Corporate Actions in Korean Securities Market What is Beneficial owner system? Beneficial Beneficial Owner System Simplify the complicate procedure between CSD and issuer

24 Before After Participant A Participant BParticipant C Issuing Co. A (Transfer agent) Issuing Co. B (Transfer agent) Issuing Co. C (Transfer agent) Issuing Co. A (Transfer agent) Issuing Co. B (Transfer agent) Issuing Co. C (Transfer agent) Participant A Participant BParticipant C Corporate Actions in Korean Securities Market Simplify the complicate procedure

21 Advantage One Example Beneficial BeneficialOwner One Example Corporate Actions in Korean Securities Market What is Beneficial owner system? Beneficial Beneficial Owner System Rights Exercising (Cash Dividends)

Corporate Actions in Korean Securities Market Submitting the statement(D+3) Submitting the statement(D+3) Beneficial Owners’ Statement  Notification of the record date or the closing period  Request for beneficial owners’ statement owners’ statement Beneficial Owners’ Book  Notification of the final statement(D+6) Notification of rights Notification of rights - Corporate actions - Corporate actions Clients Participants Issuing Co. KSD 26 Closing the shareholders’ book

Corporate Actions in Korean Securities Market  Fixing the statement Of dividend payment  Notification of dividend payment schedule and dividend notice Notification of Notification of the final statement the final statement  ’ Notification of dividend notice dividend notice  Receiving cash dividends cash dividends Payment of Payment of cash dividends cash dividends  Crediting the cash dividends the cash dividends to the accounts to the accounts Participants Beneficial Owners Issuing Co. 32 Rights Exercising : Cash Dividends

International Relations & Planning Team Korea Securities Depository Tel : International Relations & Planning Team Korea Securities Depository Tel :