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Fixed Income

Bond Brokerage and Analysis/ Bond Management Team

The Korean bond market, which has been the poor relation of the stock market, is developing rapidly as the financial industry matures. The bond management team at Korea Investment & Securities provides information required by customers based on its professional expertise, and has become a leader in the Korean financial market by placing the greatest emphasis on customer profits. In particular, it has expanded its market share through an analysis of relative values and gap analysis. Also, it has become a leader in the FRN (Floating Rate Note), ABS, and CBO markets based on its know-how in structured notes.

Performance: 51.7467 billion won from 38th bond trading (market share: 3%, national bond market share: 5%)

Structured DCM Team/Takeover, Issuance Team

DCM Team, operated under the Asset Management Division of Korea Investment & Securities, is in charge of providing financial services for companies to procure capital in the primary financial market. The duties of the DCM Department are , issuance of corporate bonds, including non-guaranteed bonds, convertible bonds, and bonds with cwarrants, as well as structured bonds, including ABS, MBS, and P-CBO, and structure plans for real asset products.

Major achievements in the latest fiscal year include capital procurement worth 405 billion won for sound companies such as Woori Financial Group, Yuhan Corporation, Hanmi Pharmaceutics, and Taeyoung, (corporate bonds), and mergers worth 267 billion won.

DCM Department plans to provide more professional and customer-oriented consulting for issuing corporate bonds and ABS, offer various services based on the latest financial methods, and present a new type of securities that are related to fixed income products.

Management and PD/Bond Management Team

Bond Management Team consists of professional treasury bond dealers1) approved by the Ministry of Economy and Finance of Korea. We will push for various types of transactions that are linked with IRS and CRS, with our own management strategies that might include general trading, trading to earn margin from the gap between spots and futures, and spread trading.

1) Treasury Bond Dealers
As participants of the treasury bond market, treasury bond dealers are dedicated to promoting transparency and setting orders for the financial market. About 65% of the total bond circulation is treasury bond, and the proportion is increasing. Our treasury bond dealers are the best in the market, as they ranked third in the second and third quarters of 2004, first in the forth quarter of 2004, and also first in the first quarter of this year among the 22 companies that operate treasury bond dealers. As of April 2005, treasury bond dealers are working at 22 institutions, including 11 security firms and 11 banks.

Retail Bonds

Performance

Classification Market Size Performance Market Share
Bond trading 18,343,225 517,467 3%
Retail bonds N/A 3,700 N/A
Corporate bond issuance 246,460 3,700 3,700
Structure DCM 196,149 2,410 1%
Derivatives DCM 18,363 0 0%

Contact point

If you have any further queries about Fixed Income, please contact :

Hee-Song Oh,,
82-2-768-5950,
hnwoo2@truefriend.com