Released on = July 18, 2007, 9:11 pm

Press Release Author = Shushmul Maheshwari

Industry = Financial

Press Release Summary = Impending introduction of CMIA has made small brokerages of
South Korea attractive to both global and local banks, as it is believed to bring
futures trading, asset management, and broking together.

Press Release Body = Global banks are hunting for small brokerages of South Korea,
competing to enter the thriving fund and derivatives market of the country. The
igniting force is the impending introduction of the Capital Markets Integration Act
(CMIA) in 2008 (if everything goes as planned), which is expected to initiate a
financial turnaround, integrating futures trading, asset management, and broking
together.

This will make packaging and sale of derivatives easier for brokerages and they can
develop in-house funds, which can be sold in branches, a step to free brokerages
from their infatuation with trading commissions.

Choi Jong-won, a financial analyst at Tongyang Investment Bank, said, “The
level of attractiveness of local brokerages has risen, along with their increased
premiums. Once the Capital Markets Integration Act passes, brokerage companies will
have a bigger influence and find it much easier to attract customers”, as
reported by gulfnews.com on May 12, 2007.

Consequently, a chaotic industry with over 40 brokerages has suddenly become luring
to investment banks from West and local players. The companies operating in the
brokerage industry worth over 23.5 Trillion Won (or over $25.89 Billion), by
international measures, are cheap, as they are trading at a value lower than
12-times the earnings of 2007. As per the industry sources, Standard Chartered,
Calyon (a unit of Credit Agricole), and Citigroup, all are interested in expanding
into the local brokerage industry.

But the big attraction is derivatives trading. The new Act is expected to allow
trading for a broader range of securities, although existing holders will have to
apply for permission again. The other pull is asset management, which is being
expanded by brokerages even before the introduction of CMIA, thus making it more
appealing to local lenders.

The RNCOS report “South Korean Banking Industry Analysis (2007-2011)”
has identified South Korean banking industry (financial institutions) a very stable
and capitalized industry, and asset management is a vital part of this industry.
Asset management companies had a share of over 7.2% in 1995 in financial
institutions and it rose to over 8.4% at May 2005 end. In 2005, Allianz acquired 50%
stake in Hana Bank’s South Korean asset management JV.

The market research report is a work of rational analysis of South Korean banking
industry. It discusses the financial system, types of banks, and performance of
banking industry in the country, together with the forces, opportunities,
challenges, and future outlook.

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM528.htm
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Web Site = http://www.rncos.com

Contact Details = RNCOS E-Services Pvt Ltd.
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com