Investment Procedure

• Individuals of foreign nationality
• Companies incorporated under a foreign residency
• Korean citizens with permanent foreign residency
• International financial organizations or associations established by treaties
• Governments, municipal governments and public institutions of foreign countries
• Funds and unions established, regulated and controlled by foreign laws

• Individuals working at business offices or performing business activities in Korea
• Corporations having their main offices in Korea
• Branches or offices of foreign corporations

According to the Korean Securities and Exchange Commission (SEC) rules, all foreign investors who want to invest in the Korean securities market are
required to register under their real names with the Financial Supervisory Services (FSS) to receive an investment registration certificate.
The application can be submitted either directly or through a standing proxy. Foreign residents of Korea are exempted from such registration.

Although foreign investors are not required by law to designate a standing proxy, non-resident foreign investors are recommended to have a
standing proxy to ensure that their investment-related activities are carried out in a timely manner. Securities companies, banks, and the Korean
Securities Depository (KSD) are eligible to be a standing proxy for foreign investors. The major services of standing proxies are investment
registration, account opening, order placing, settlement, and collection of dividends or interest.

To invest in the Korean market, foreigners are required to open an account for stock trading and/or bond trading. The following information is
necessary to open an account.

Foreign investors should designate one local custodian bank for settlement purposes.
Korea Investment & Securities Co., Ltd. can provide local custodian services and designate a foreign exchange bank on behalf of foreign investors
according to the Standing Proxy Agreement.

In principle, foreign investors must trade stocks on the Korean stock market; however, in the following cases, trading can occur on the OTC market :

• Trading of odd lot orders
• Acquisition of shares converted from overseas securities
• Acquisition by inheritance, donation, or bequeath
• Acquisition by the exercise of shareholders' rights
• Direct trading among foreigners of shares in excess of foreign investment ceilings

The FSS is solely responsible for the administration of foreign portfolio investment in the Korean market.
All the orders and trade details of foreign investors are sent to and processed by the Korea Securities Supervisory Board (KSSB)'s foreign investment
management system, where the investment ceilings are checked.

Individual investors must deposit a certain amount prior to any transaction.

For institutional investors, a securities company may waive the entrustment margin requirement so that investors only have to transfer the total
purchasing amount in cash and/or securities to their accounts by the second business day following the trade date.

All purchases and sales of securities on the Korea Exchange are cleared and settled through the KSD on the second business day followiing
the trade date[i.e., (T+2) settlement]. Settlement of a securities transaction is executed by the KSD on a book-entry basis, which means that
shares or rights are transferred by a simple book-entry transfer physical movement from or to an account. Investors (or their local custodian
banks) need to transfer the outstanding settlement amount or securities to their accounts with a brokerage firm by the settlement date.

Clients must pay overdue charges for all outstanding amounts when they cannot deposit money in full to settle the trade by the second business
day following the actual trade date. If settlement is delayed by one business day (T+3), a brokerage company shall be able to offset stocks with
market orders on the following business day (T+4).

Overdue charge rate : 17% per annum
Calculation of O/D Charge:.?? (Outstanding amount) x (O/D charge rate) x (No. of O/D days/365)