Ministry of Trade, Industry and Energy

Sales Trends of Major Distributor for June 2014

The sales of supermarkets declined by 5.9% year-on-year and by 6.7% month-on-month in June 2014. The overall sales decline is attributed to the weaker seasonal sales due to temperatures being lower than in the previous year, as well as there being less operating days on holidays (-1 day). Quarterly sales also declined for the ninth consecutive quarter since the 2nd quarter of 2012, but the pace of the sales decline has been slowed. * Year-on-year sales growth/decline by quarter: (1Q 2012)0.1, (2Q 2012)-5.1, (3Q 2012)-3.8, (4Q 2012)-4.5, (1Q 2013)-8.4, (2Q 2013)-3.4, (3Q 2013)-4.3, (4Q 2013)-3.8, (1Q 2014) -3.3, (2Q 2014) -2.9 As the sales growth in May 2014 due to the seasonal demand in the so-called Month of Family has been normalized, overall sales has declined month-on-month in June 2014.   [Sales Growth Rate by Category] Non-Foods ○ Home Appliances and Culture - Year-on-Year (Monthly) : 0.5 - Year-on-Year (Quarterly) : 5.7 - Month-on-Month : -7.1 ○ Apparel - Year-on-Year (Monthly) : -14.7 - Year-on-Year (Quarterly) : -9.2 - Month-on-Month : -20.6 ○ Household Supplies - Year-on-Year (Monthly) : -7.8 - Year-on-Year (Quarterly) : -4.9 - Month-on-Month : -1.8 ○ Sports - Year-on-Year (Monthly) : -10.9 - Year-on-Year (Quarterly) : -4.6 - Month-on-Month : -11.2 ○ General Merchandise - Year-on-Year (Monthly) : -13.3 - Year-on-Year (Quarterly) : -8.8 - Month-on-Month : -10.1 ○ Subtotal - Year-on-Year (Monthly) : -7.6 - Year-on-Year (Quarterly) : -3.4 - Month-on-Month : -7.8     ○ Foods - Year-on-Year (Monthly) : -4.5 - Year-on-Year (Quarterly) : -2.5 - Month-on-Month : -4.3 ○ Total - Year-on-Year (Monthly) : -5.9 - Year-on-Year (Quarterly) : -2.9 - Month-on-Month : -6.7       Sales of department stores also declined by 4.6% year-on-year, and by 14.1% month-onmonth. There was a particularly strong decline in the apparel category due to the worsened consumer confidence compared to the same period of the previous year, and the sales declined in most categories. Year-on-year quarterly sales also declined, for the first time since the 3rd quarter of 2012. * Year-on-Year Quarterly Sales Growth/Decline : (1Q 2012)-0.2, (2Q 2012)-1.4, (3Q 2012)-2.9, (4Q 2012)2.6, (1Q 2013)0.0, (2Q 2013)1.0, (3Q 2013)2.4, (4Q 2013)1.0, (1Q 2014) 1.1, (2Q 2014) -1.6 As the sales growth in May 2014 due to the seasonal demand in the so-called Month of Family has been normalized, the overall sales has declined month-on-month in June 2014.     [Sales Growth Rates by Product of Department Stores] Non-foods ○ General Merchandise - Year-on-Year (Monthly) : -5.8 - Year-on-Year (Quarterly) : -3.7 - Month-on-Month : -21.5 ○ Women’s Formal Dress - Year-on-Year (Monthly) : -3.6 - Year-on-Year (Quarterly) : -2.3 - Month-on-Month : -10.0 ○ Women’s Casual - Year-on-Year (Monthly) : -6.7 - Year-on-Year (Quarterly) : -4.7 - Month-on-Month : -17.4 ○ Men’s Apparel - Year-on-Year (Monthly) : -12.4 - Year-on-Year (Quarterly) : -5.7 - Month-on-Month : -10.7 ○Kids & Sports - Year-on-Year (Monthly) : -4.9 - Year-on-Year (Quarterly) : -0.6 - Month-on-Month : -23.9 ○Household Supplies - Year-on-Year (Monthly) : -1.3 - Year-on-Year (Quarterly) : 2.3 - Month-on-Month : -1.9 ○Foreign Premium Brands - Year-on-Year (Monthly) : -1.6 - Year-on-Year (Quarterly) : 2.2 - Month-on-Month : -4.7 ○Subtotal - Year-on-Year (Monthly) : -5.1 - Year-on-Year (Quarterly) : -1.9 - Month-on-Month : -14.9 ○Foods - Year-on-Year (Monthly) : -0.2 - Year-on-Year (Quarterly) : 1.3 - Month-on-Month : -9.1 ○Total - Year-on-Year (Monthly) : -4.6 - Year-on-Year (Quarterly) : -1.6 - Month-on-Month : -14.1 Sales of convenience stores grew by 6.3% year-on-year, and declined by 0.5% month-on-month. While sales grew compared to the previous year thanks to the increase of stores and the incr date2014-07-25

Korea’s Car Sales for 2014 1H and Outlook for 2014 2H

The Ministry of Trade, Industry and Energy (Minister Yoon Sang-jick) announced provisionally that the car industry had produced 2,342,578 units, sold 807,063 units in the domestic markets and exported 1,596,198 units in the 1st half of 2014, showing year-on-year growth of 2.6%, 7.3% and 0.4%, respectively. < Overview of the Car Industry Results (Unit: 1 unit, %, USD 0.1 billion) > ○ June 2014 - Production : 380,456 - Domestic Sales : 139,864 - Korean Cars : 122,061 - Imported Cars : date2014-07-11

Labor Productivity of All Industries in the 1st Quarter of 2014 Grew by 1.1% Year-on-Year

Ministry of Trade, Industry and Energy (Minister: Yoon Sang-jick) and Korea Productivity Center (Chairman Jin Hong) jointly analyzed the labor productivity index of all industries for the quarter. According to the analysis result, the labor productivity index of all industries for the 1st quarter of 2014 was 99.0 (2020: 100), a year-on-year increase of 1.1% and showing moderate growth for the third consecutive quarter. Prompted by the base effect, capital investment in the 1st quarter of 2014 grew by 7.3% (1st quarter of 2013: -12.7%), and both industrial production and labor input of all industries grew compared to the same period in the previous year, thanks to the moderate growth of consumption and export. In terms of industrial production, production of all industries grew by 1.6% year-on-year, thanks to the growth in production of major sectors including manufacturing (0.6%), services (1.8%) and construction (6.5%). As for labor input, the number of employees grew by 1.3% compared to the same period in the previous year, while the labor hours declined by 0.7% with labor input growth of all industries as 0.6%. Looking at labor productivity by industry, the service sector showed productivity growth of 3.0% compared to the same period in the previous year, thanks to production growth and labor input decline, while the manufacturing sector and the construction sector recorded productivity growth rates of -1.6% and -3.1%, respectively, as there was more labor input than production growth. Real value added of all industries grew by 4.2% year-on-year, as the gradual growth has continued since the 1st quarter of 2013 (2.2%). The value added labor productivity by industry of the manufacturing sector and the service sector grew by 3.3% and 3.2%, respectively, compared to the same period in the previous year, driving the growth of value added labor productivity of all industries (construction sector: -6.9%). date2014-07-04

Nano Korea 2014 Will Showcase the Locomotives of the Creative Economy

The International Nanotech Symposium will include themed lectures addressing characteristics and trends in nanotechnology, with the slogan “Nanotechnology: Locomotive of the Creative Economy”. In addition, diverse programs will be running for students and female scientists. A discussion of career paths in the nanotech industry, as well as accessible lectures and experiments, will take place in order to give young adults more exposure to nanotechnology. “Women in Nano” is a cooperative session organized by the Association of Korean Women Scientists and Engineers, It is designed to encourage participation by female scientists in Nano Korea 2014. Director Man-ki Jeong said, “I believe this event will provide practical assistance to nano businesses. The government will concentrate policy initiatives to achieve fully-fledged commercialization of nanotechnology and technology convergence.” First Deputy Minister Sang-mok Lee said, “I will be actively supporting Nano Korea 2014 in cooperation with the Ministry of Trade, Industry and Energy, in order to move valuable research achievements towards commercialization, and boost nanotech foundations and exchange.” Deputy Director Song Jeong-hun, Export and Import Division (044-203-4042) date2014-07-02

Sales Trends of Major Retailers for May 2014

Sales of supermarkets grew by 1.2% year-on-year and 18.8% month-on-month. Supermarkets recorded growth in sales for the first time in four months due to the fact that there were more holidays compared to the same period in the previous year, and an uptick in demand for food and home appliances due to the World Cup. Non-food sales grew significantly due to promotion events in May, the Month of Family, contributing to the significant sales growth month-on-month. The sales growth rates of supermarkets by category are as follows: Non-Food ○ Home Appliances & Culture - Year-on-Year : 13.4 - Month-on-Month : 32.8 ○ Apparel - Year-on-Year : -8.6 - Month-on-Month : 24.2 ○ Home Supplies - Year-on-Year : -1.1 - Month-on-Month : 18.5 ○ Sports - Year-on-Year : -1.3 - Month-on-Month : 27.6 ○ General Merchandise - Year-on-Year : -6.6 - Month-on-Month : 27.5 ○ Subtotal - Year-on-Year : 0.5 - Month-on-Month : 24.8   ○ Foods - Year-on-Year : 2.3 - Month-on-Month : 12.6 ○ Total - Year-on-Year : 1.2 - Month-on-Month : 18.8       Sales of department stores grew by 0.8% year-on-year and by 8.0% month-on-month. Sales grew slightly compared to May 2013, which was attributable to the earlier off-season events than the previous year and the sales growth in cooling systems for the summer and in TVs for the World Cup. Sales in all categories grew month-on-month, thanks to the added demand related to the Month of Family, more holidays, more operating days during holidays and better consumer sentiment. The sales growth rates of department stores by category are as follows: Non-Food ○ General Merchandise - Year-on-Year : -1.9 - Month-on-Month : 17.0 ○ Women’s Formal Dress - Year-on-Year : 0.8 - Month-on-Month : 1.9 ○ Women’s Casual - Year-on-Year : -2.5 - Month-on-Month : 8.1 ○ Women’s Apparel - Year-on-Year : -3.8 - Month-on-Month : 8.2 ○ Kids & Sports - Year-on-Year : -2.3 - Month-on-Month : 3.8 ○ Home Supplies - Year-on-Year : 9.6 - Month-on-Month : 1.4 ○ Foreign Premium Brands - Year-on-Year : 7.5 - Month-on-Month : 5.0 ○ Subtotal - Year-on-Year : -0.3 - Month-on-Month : 7.5   ○ Foods - Year-on-Year : 4.6 - Month-on-Month : 10.0 ○ Total - Year-on-Year : 0.8 - Month-on-Month : 8.0         Sales of convenience stores grew by 6.9% year-on-year, and by 9.5% month-on-month. Sales grew year-on-year due to the higher number of stores operated and the growth in customers going on picnics due to there being more holidays. The month-on-month sales growth was attributed to the sales growth in foods, including beverages and beer. The sales growth rates of convenience stores by category are as follows: Non-Food ○ Daily Commodities - Year-on-Year : 4.5 - Month-on-Month : 6.2 ○ General Merchandise* - Year-on-Year : -4.9 - Month-on-Month : 18.9 ○ Tobacco & Other goods - Year-on-Year : 3.9 - Month-on-Month : 5.8 ○ Subtotal - Year-on-Year : 3.2 - Month-on-Month : 6.8   Foods ○ Beverages & Processed Goods - Year-on-Year : 10.9 - Month-on-Month : 13.2 ○ Instant Foods (Specific Perishable Goods) - Year-on-Year : 2.8 - Month-on-Month : 0.7 ○ Subtotal - Year-on-Year : 9.9 - Month-on-Month : 11.6   ○ Total - Year-on-Year : 6.9 - Month-on-Month : 9.5 * Books, magazines, lottery tickets and gift certificates       The sales of SSMs declined by 0.2% year-on-year, but grew by 7.2% month-on-month. The year-on-year sales decline due to obligatory off-days on weekends and the growing number of stores with date2014-06-26

May Car Industry Trend

* Comparison of business days: (May 2013) 21 days → (May 2014) 19 days (two days less) Some plants voluntarily closed on May 2 (Fri): Kia’s Hwaseong Plant, GM’s Gunsan Plant and Renault’s Busan Plant * Exports by GM Korea to EU (From Jan to Apr 2013 → From Jan to Apr 2014): 19,017 units→11,658 units (down 38.3%) Exports by GM Korea to Eastern Europe (From Jan to Apr 2013 → From Jan to Apr 2014): 23,405 units →22,203 units (down 5.1%) ○ 2014 May - Production : 373,470 - Domestic Sales : 137,396 - Domestic Cars : 122,082 - Imported Cars : 15,314 - Export : 255,187 - (Amount) : 41.4 ○ Month-on-Month - Production : -13.9 - Domestic Sales : -7.0 - Domestic Cars : -6.8 - Imported Cars : -8.4 - Export : -14.9 - (Amount) : -12.6 ○ Year-on-Year - Production : -3.0 - Domestic Sales : 3.0 - Domestic Cars : 1.7 - Imported Cars : 14.2 - Export : -5.1 - (Amount) : -0.5     ○ 2014 Jan to May - Production : 1,962,122 - Domestic Sales : 667,199 - Domestic Cars : 590,739 - Imported Cars : 76,460 - Export : 1,342,638 - (Amount) : 214.7 ○ Year- on -Year - Production : 4.1 - Domestic Sales : 6.8 - Domestic Cars : 4.9 - Imported Cars : 23.9 - Export : 2.4 - (Amount) : 6.5       Despite the weak consumer demand and less business days, the domestic sales recorded growth for five consecutive months with year-on-year growth of 3.0% thanks to the effect of the launch of new cars and growing demand for RVs. Meanwhile, the export volume of the automotive sector for May was recorded at 255,187 units, a year-on-year decline of 5.1%, due to the decline in exports by GM Korea to EU and Eastern Europe. date2014-06-13

Sales Trends of Major Retailers for April 2014

Non-Foods ○ Electronics & Cultural Goods - Year-on-Year : 3.1 - Month-on-Month : -20.9 - Year-on-Year (From January to April) : 3.5 ○ Apparel Goods - Year-on-Year : -3.9 - Month-on-Month : -7.6 - Year-on-Year (From January to April) : -6.7 ○ Home Supplies - Year-on-Year : -5.7 - Month-on-Month : -16.4 - Year-on-Year (From January to April) : -4.6 ○ Sports Goods - Year-on-Year : -0.8 - Month-on-Month : -8.4 - Year-on-Year (From January to April) : -1.6 ○ General Merchandise - Year-on-Year : -5.9 - Month-on-Month : -14.8 - Year-on-Year (From January to April) : -5.1 ○ Sub Total - Year-on-Year : -2.9 - Month-on-Month : -15.7 - Year-on-Year (From January to April) : -2.8     ○ Foods - Year-on-Year : -5.3 - Month-on-Month : -11.8 - Year-on-Year (From January to April) : -3.5 ○ Total - Year-on-Year : -4.1 - Month-on-Month : -14.3 - Year-on-Year (From January to April) : -3.5         Revenues of department stores also declined by 1.4% year-on-year, and by 7.2% month-on-month. Revenues of clothing, general merchandise and foods declined year-on-year due to less PR activities and weaker consumer confidence, while the sales growth of foreign brands, which had been thriving, was slowed down, leading to a slight decline in overall sales. Sales of all categories, especially sales of foreign brands, declined month-on-month, with the exception of the menswear and kids sports categories which showed sales growth. The revenues growth rate of department stores by product is as follows: Non-Foods ○ General Merchandise - Year-on-Year : -3.9 - Month-on-Month : -5.8 - Year-on-Year (From January to April) : -2.0 ○ Women’s Suit - Year-on-Year : -4.1 - Month-on-Month : -12.1 - Year-on-Year (From January to April) : -4.0 ○ Women’s Casual - Year-on-Year : -5.2 - Month-on-Month : -14.3 - Year-on-Year (From January to April) : -2.0 ○ Menswear - Year-on-Year : -0.4 - Month-on-Month : 3.0 - Year-on-Year (From January to April) : -2.8 ○ Kids Sports - Year-on-Year : 5.1 - Month-on-Month : 0.8 - Year-on-Year (From January to April) : 2.5 ○ Home Supplies - Year-on-Year : -0.8 - Month-on-Month : -5.3 - Year-on-Year (From January to April) : 3.5 ○ Foreign Brands - Year-on-Year : 0.9 - Month-on-Month : -15.4 - Year-on-Year (From January to April) : 8.0 ○ Sub Total - Year-on-Year : -1.3 - Month-on-Month : -7.5 - Year-on-Year (From January to April) : 0.3     ○ Foods - Year-on-Year : -0.8 - Month-on-Month : -4.4 - Year-on-Year (From January to April) : 2.3 ○ Total - Year-on-Year : -1.4 - Month-on-Month : -7.2 - Year-on-Year (From January to April) : 0.5             The reve date2014-05-22

April Car Industry Trend

Also, despite the decline in the Won/USD exchange rate, exports increased by 14% - 299, 268 cars – thanks to the recovery of major markets, such as the US and China. * Won/USD Exchange Rate Trend (Won): 1,064.5(End of March) → 1,041.5(4/9) → 1,035.0(4/28) →1,030.6 (4/29) ○ 2014 April - Production : 433,799 - Domestic sales : 147,765 - Domestic : 131,053 - Import : 16,712 - Export : 299,268 - (Amount) ○ Month-on-month - Production : 1.9 - Domestic sales : 6.9 - Domestic : 7.0 - Import : 6.2 - Export : 4.9 - (Amount) : 4.7 ○ Year-on-year (month) - Production : 12.3 - Domestic sales : 11.2 - Domestic : 10.2 - Import : 25.5 - Export : 14.0 - (Amount) : 18.9       ○ 2014 Jan-April - Production : 1,588,652 - Domestic sales : 529,803 - Domestic : 468,657 - Import : 61,146 - Export : 1,086,772 - (Amount) : 174.3 ○ Year-on-year (quarter) - Production : 5.9 - Domestic sales : 8.0 - Domestic : 5.9 - Import : 26.6 - Export : 4.2 - (Amount) : 8.9         Prompted by the new car effect and the increase of the average export price, the export amount for completed cars (as of MTI741, preliminary) reached 4.83 billion USD, the largest figure in the history of Korea’s automobile industry. Car parts (as of MTI742, preliminary) recorded 2.34 billion USD in exports thanks to the expansion of overseas production by the domestic automakers and an increase of the supply by overseas automakers. This figure is the second-largest figure for the monthly parts export amount. The number of complete cars produced by Korean automakers abroad was recorded as 1,018,332 cars for the first quarter of 2013 and as 1,088,902 cars for the first quarter of this year. date2014-05-16

Sales Trends of Major Retailers for March 2014

The overall sales of major retailers grew in March 2014. The sales of supermarkets declined by 3.7% year-on-year, but grew by 23.5% month-on-month. - Compared to March 2013: Sales of the apparel and sports sectors declined due to the hot days following the last cold snap. - Sales showed a year-on-year decline of 3.3% in the 1st quarter, marking the eighth consecutive quarter of decline since the sales regulations were adopted in the 2nd quarter of 2012. - Compared to March 2013: Sales grew sharply, fueled by the base effect created by the low sales of the previous month. Sales of department stores declined by 1.1% year-on-year and grew by 16.6% month-on-month. - Compared to April 2013: Sales of the fashion sector dropped due to the lower temperature and less holidays compared to the previous year. Sales showed year-on-year growth of 1.1% in the 1st quarter. Sales in the fashion sector declined, while sales of foreign brands, home supplies, kids & sports and foods sectors grew by 10.5%, 5%, 1.6% and 3.2%, respectively. - Compared to February 2014: Sales of all items grew, due to the low sales of the previous month and the increase in the number of operating days, including holidays (plus three days). Sales of convenience stores showed year-on-year growth of 6.5% and month-on-month growth of 18.8%. - Compared to April 2013: Sales of processed foods, including dairy products and ice cream products of PBs grew year-on-year. _ Compared to February 2014: Sales of beverages, processed foods and tobacco products grew sharply thanks to the increase in operating days. In keeping with this trend, sales of SSMs also showed a year-on-year decline of 2.1% and month-on-month growth of 21.0%. - Compared to March 2013: With the exception of meat products, which showed a slight sales growth, all sectors recorded a decline in sales, as a result of the drop in vegetable prices and the continued sales decline of fisheries goods. - Compared to February 2014: The sales of all items grew, which could partly be attributed to more operating days, including holidays. ※ This analysis is based on the ordinary sales of major retailers (three department stores, three supermarkets, four convenience stores and 4 SSMs) and aims to identify the consumption trends. This analysis may have discrepancies in the growth rates or the trends with data of Statistics Korea obtained through the complete enumeration of large retail businesses due to differences in scope and standards. ※ Major supermarkets (EMart, Lotte and Home plus), department stores (Hyundai, Lotte and Shinsegae), convenience stores (CU, GS25, 7-Eleven and BuyTheWay), and SSM (Lotte, GS Super, Home plus express and Everyday Retail) date2014-04-25

Automobile export sales for March is the second largest in history

- Overall Manufacturing •Domestic consumption• Exports in H1 stay strong - The Ministry of Trade, Industry and Energy (Minister: Yoon Sang-jik) announced that they calculated the figures in the Automobile industry for March, and manufacturing (425,510 vehicles) increased by 16.4%, domestic consumption (138,230) 5.4%, and exports (286,754) 9.9%, compared to the same month of the previous year. The number of vehicles manufactured was recorded at 425,510, up by 16.4% compared to the sam date2014-04-09