KOSDAQ :

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• 9th XBRL International Conference (Auckland, New
  Zealand)

KOSDAQ A Window into the Korean Capital Market
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TABLE of CONTENTS
I About KOSDAQ
01. KOREA IT Industrial Development 02. KOSDAQ
is 03. Key Statistics
Mission of KOSDAQ XBRL Project

• 9th XBRL International Conference

A Window into the Korean Capital Market
II Review of XBRL Pilot Project
01. Introduction 02. Approach 03. XBRL Pilot
Service at KOSDAQ
III Star Index Project (Expansion Project)
K O S D A Q
01. Introduction 02. Enhanced Features compared
with the Pilot Project 03. Benefits
? Global Investor Relations Management
Project
01. Introduction 02. Approach 03. Benefits
Summary of KOSDAQ XBRL Project
? Next Steps
01. KOSDAQs Efforts 02. Next Step 03. KOSDAQ
Role in the Korean Economy
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I About KOSDAQ
01. KOREA IT Industrial Development
(World competitiveness)
12th
12th
5th
2nd
GDP (2002)
Trade Scale (2003)
Automobile
Shipbuilding
1st
1st
2nd
5th
Internet User 2003
Mobile Phone User 2003
Semiconductor
TFT-LCD
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I About KOSDAQ
02. KOSDAQ is

• KOSDAQ has achieved unprecedented growth along
  with that of Korea's flourishing IT industry.
• Entrepreneurial pioneers in the IT, BT, and CT
  industries are making their dreams come true
  through KOSDAQ and they form a vital resource for
  Korea's future economic growth.

• Listed companies (2003.12)
• New Index composition

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I About KOSDAQ
03. Key Statistics Among Asia New Markets
listed Cos
Trading Value
874
Daily Avg. Trading Value (DEC, 2003)
843
(Unit bil.KRW)
(Unit Cos)
702
1000
1,728
1,205
500
395
359
429
JASDAQ (Japan)
Gre Tai (Taiwan)
KOSDAQ (Korea)
4
99
97
01
02
03
99
97
01
02
03
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I About KOSDAQ
03. Key Statistics - Global Status
(US bil.)
Rank No. of Listed Companies Rank Accumulated Trading Value Rank Market Cap.
1 Mumbai(5,644) 1 NYSE (9,692) 1 NYSE (11,328)
2 TSX Group(3,616) 2 Nasdaq (7,068) 2 Tokyo (2,953)
3 Nasdaq(3,294) 3 London (3,624) 3 Nasdaq (2,844)
4 Spanish Exchange (BME)(3,223) 4 Tokyo (2,130) 4 London (2,425)
14 KOSDAQ(874) 13 KSE (459) 16 KSE (298)
17 KSE(684) 19 KOSDAQ(223) 41 KOSDAQ(31)
WFE Dec. 2003
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Mission of KOSDAQ XBRL Project
Mission of KOSDAQ
Project Evolution
Phase1
Active support of companies seeking
growth (Increase brand value)
Pilot Project
Phase2
Protect investors thru increased transparency
(Build investor confidence)
Star Index Project
Phase3
Make efforts to set global standars for a sound
capital market (Enhance market integrity)
Global IR Management Project
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II Review of XBRL Pilot Project
Pilot
01. Introduction - Project Goal
Establish K-GAAP Taxonomy
- Approval from XBRL International- XBRL
adoption among participating Korean Companies
Increasing Market Transparency
- Provide standardized Financial Statements
through XBRL - Empower investors by providing
enhanced analytical tools
Frontier in XBRL Technology in Korea
- KOSDAQ is the first organization in Korea to
deploy XBRL
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II Review of XBRL Pilot Project
Pilot
02. Approach Tasks Steps
Phase 2. Extended FSS Taxonomy (Commercial
Industrial)
Phase 1. K-GAAP Taxonomy (Korean Standards)
Phase 3. Company Extension
K-GAAP Taxonomy Definition/ Establishment based
on Korean Companies Accounting Principles
In actual industry accounting practices over
2,500 accounts were used, FSS Element Extension
Naming and defining down to the level of
Individual Companys User defined Accounts
(excluded in FSS Accounts Schema)

FSS Financial Supervisory Service
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II Review of XBRL Pilot Project
Pilot
03. XBRL Pilot Service in KOSDAQ
GAAP Taxonomy (686 representative accounts)
FSS Taxonomy (2,541 detail accounts)
Expansion

Auditors Report in Annual Report(SGML)
Mapping Table
XBRL Instance Document
Converter

On-line Viewers (Web)
Off-line Viewers (Excel)
View/ Analyze
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II Review of XBRL Pilot Project
Pilot
03. XBRL Pilot Service at KOSDAQ
Excel-based Financial Analytical Tool
KOSDAQ Web-based Financial Analytical Site
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III Star Index Project
01. Introduction Why Star Index Project?
Increase Visibility ofBlueChip Index
Success of XBRL Pilot Service Recognition of
Value of XBRL
Improve Corporate Image Brand Recognition
Expansion ofInvestment Pool
STAR Index Project
Increased Demand for XBRL Services by Listed
companies
Improve Expand Scopes Of Pilot Project
Platform Leading intoGlobal IR Project
Maximizing Value of XBRL thru Selection of High
Quality Companies
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III Star Index Project
01. Introduction What is Star Index?
Star Index Companies chosen based on SUPERIOR
earnings performance, financial soundness,
corporate governance, liquidity and market
cap.(37.5)
Corporate governance
Financial soundness
Earnings performance
BLUECHIP Index of KOSDAQ
NASDAQ ? Nasdaq100 KOSDAQ ? Star30
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III Star Index Project
01. Introduction Project Goal

• To provide corporate information with XBRL
  technology
• for 30 Star Index companies to all Market
  Participants
• Contractor PwC(Samil), UB Matrix
• - Personnel Accounting Consultants(4),
  Engineer (5)
• - Software UBmatrix Automator, Web
  Analyzer, Oracle, JSP, Excel
• - Duration 29 Mar 2004 17 Jun 2004
• - Samples 30 Star Index Companies
• Project Deliverables
• - Korean GAAP Taxonomy 30 Company Level
  Taxonomies
• - 5-year annual reports (Instance
  Documents) of 30 companies
• - Web Analyzer (CoA, Notes, Market Data,
  Annual Reports)
• - Excel Analyzer (CoA, Notes)

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III Star Index Project
02. Enhanced Features of Star Index Project
Pilot Project
Star Index Project
30 Star index Companies
15 sample companies
Company Level Taxonomy
FSS Taxonomy
(1)
SGML Code
KOSDAQ Code
(2)
Additional Non-Financial Information
Financial Information only
(3)
Pilot Application
Advanced Application
(4)
Taxonomy Versioning
(5)
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III Star Index Project
02. Enhanced Features of Star Index Project
STAR Index Project
Pilot Project
Architecture Inheritance
GAAP Taxonomy
GAAP Taxonomy
Data Flow
Element Name
Element Name
FSS Taxonomy
B Company Taxonomy
A Company Taxonomy
C Company Taxonomy
KOSDAQ Code
SGML Code
As Auditors Report
Bs Auditors Report
Cs Auditors Report
As Annual Report
Bs Annual Report
Cs Annual Report
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III Star Index Project
Star
03. Benefits
Individual Companies Can Manage Taxonomy Elements
Non-Financial Information Can be Standardized
Structured Taxonomy Elements will be Mapped to
Each Companys Accounting System
Key Performance Indicators from Annual Report
will be provided to Investors in XBRL
Global IR Management Project is the Best Case for
Standardization of Value-based Management of
Corporate Information
XBRL formatted Financial Information will be
Saved in Repository as Data Base
KOSDAQ Code acts as a Buffer Adjusting to
Changes in Companys New Transaction Accounting
Terms
Linking Financial Statements to Non-Financial
Information will Enhance Corporate Performance
Analysis
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? Global IR Management Project
01. Introduction Why Global IRM Project?
Future Business Reporting Model

• The traditional financial reporting model is no
  longer adequate
• Declining relevance of historical data as an
  indicator of future performance
• The market wants more information about
  non-financial factors

True Value
Global IR Management Project
Star Index Project
XBRL Pilot Project
Under-value
Additional Non-Financial Information
Financial Information
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? Global IR Management Project
01. Introduction Why Global IRM Project?
To Provide "value embedded Corporate Management
Contents" to the market more efficiently
NOW
After Global IRM Project
Information needs
Information needs
Information Gap
Added Value Reporting
Information Gap
Analyst Corporate Reports Forecasts
Analyst Corporate Reports Forecasts
Reporting to Financial Supervisor
Reporting to Financial Supervisor
Typical Financial Information
Typical Financial Information
? Time
2000 Time
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? Global IR Management Project
01. Introduction Why Global IRM Project?
KOSDAQ CEO Survey (03.11.18)
Do you believe your share price accurately
reflects the true underlying value of your
company? Over 80 companies believe theyre
undervalued
Does the market fully reflect a companys true
valuation? What more could KOSDAQ do for the
companies to be evaluated correctly in the
market? - More IR Promotion to
domestic/overseas 81.4
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? Global IR Management Project
01. Introduction Project Goal
Quality Marketplace for Shareholders Venture
Firms
Capital Market Efficiency
Do the Right Thing
Do Things Right
Correct Evaluation of companies with New Global
IR Model
Integrity of Informationusing XBRL
Global IR Best practicesEstablishing Benchmarks
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? Global IR Management Project
01. Introduction - Project concept
Listed Companies
Market
On-line Viewers (applet)
Taxonomy Builder Build Data Elements
Achieve Correct Corporate Evaluation Efficient
Capital Market
Value Reporting Data
F/S, Disclosure Data
Off-line Viewers (eNumerate, Excel, etc.)
Marketing Data
VR
F/S
View/Analyze
Apply inDomestic/ Overseas IR Fair Disclosure
Investor Briefing Standardized Report
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? Global IR Management Project
02. Approach

• Analytical Review of Disclosure, Corporate
  Information
• CEO, CFO Interview/Survey

Analyze Current Status of Sample Companies

• Review of Analyst, Fund Manager reports
• Capital Market Stakeholders Interview/Survey

Review Verify Market Information

• Industry KPI to meet Global IR Standards
• Industry Standardized Investor Briefing Model

Establishment of Standardized IB Model

• Industry Standardized IB KPI Taxonomy
• Reference check for KPI validation

Industry StandardizedTaxonomy

• Web Design Application support
• Provide Information on the Web

Web Designing Mapping
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? Global IR Management Project
03. Benefits
Benefits
Market Participants
GOAL
More Financial Resources
Your Market Of Choice in NE ASIA
Upgrades Service for Star Index Companies
Visibility (Greater BrandValue)
Correct evaluation
Transparent Information Builds
Investor Confidence
Enhanced Application Tool
Better Investment Decisions
Increase the Market Stability
Improved MarketQuality Integrity
New Biz Model
Promotion of IR Model
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Summary of KOSDAQ XBRL Project
XBRL Global Standard for Corporate Financial
Reporting, Container of Corporate Disclosure
Information,
Global IR Management Framework Contents to
analyze Corporate Management Key Performance
Indicators
KOSDAQ Stock Market Increased self-regulatory
capability enhances Financial Information Supply
Chain
eXtensible Business Reporting Language
Container
Key Performance Indicators
Contents
Enhanced Reporting Analysis Service
Business

• Create Instance Document thru Corporate
  Regulatory Reports Creation of Taxonomies

• XBRL Application to Star Index
• Financial Institutions Analysiswith KPI of
  Global IR Mgmt

• On-Line Analytical Processing Marketing of
  Financial Institutions Analysis

Application to Star Index companies
Global IR Mgmt Framework
Financial Institutions
KOSDAQ
Reports
Strategy
Market Overview
Taxonomy ( e.g. ltdepositgt100lt/depositgt)
Excel Server
Value Platform
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? Next Step
01. KOSDAQs Efforts
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Asia New Market Forum (Seoul, Taipei)
MOU with Gretai Securities (Taipei) Shenzhen
Stock Exchange (China)
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Global IR (NY, HK, London)
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7.0
5
0
00
01
02
03
Mar. 04
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? Next Step
02. Next Step

• Co-operate with FSS, KSE for Korea
  Standardization in Working Group
• Announce K-GAAP Taxonomy as Standard Financial
  Reporting for Korean Companies with the aid of
  FSS, KSE KASB
• Co-operation with FSS to improve e-disclosure
  infrastructure from existing SGML to XBRL XML.

XBRL Intl Approval on KGAAP Taxonomy

• Stock Exchanges adopting XBRL (Canada, New
  Zealand, Japan, China etc.) Global Information
  Vendors (Bloomberg, Reuters etc.)
• Sharing Knowledge of XBRL Project know-how
• - XBRL Format Financial Information Exchange
• - English Disclosure Exchange

Strategic Global Alliances

• Value Reporting Enhancement
• ASP Service using XBRL
• Expand participating companies by Market
  Consolidation (2004)

After Global IR Management Project
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? Next Step
03. KOSDAQ Role in the Korean Economy
Building Public Trust
Restoring growth balance between SMEs
Conglomerate
Facilitating growth in Knowledge-based industries
Enhancing competitiveness of exchange industry
COMPANIES
INVESTORS
Providing Venture Capital
Providing various investment tools
through XBRL
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Thank you