www.good-morning.co.kr Issue Paper (02) 3772-2705 yhyoon@good-morning.co.kr (02) 3772-1560 gamong1@good-morning.co.kr

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2.0 214.7 210.6 (%) 200 1.5 250 1.0 0.06 303.0 0.94 1.92 1.85 300 0.5 350 0.0 396.3 1998 1999 2000 2001 400 5

6 4 2 0 (2) (4) (6) 6

(%) 60 50 40 30 20 10 0 Corporate bond market stalled as recently as late 2000-early 2001 Average tenor of bonds lengthening but remains a relatively short 3 year-average Corporate sector still heavily indebted Worrisome build-up in consumer debt Explosive growth of, and heavy reliance on, structured market 7

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6 (%) 80 5 60 4 40 3 20 2 1999 2000 2001 0 10

23-2 4 02-3772-1000 3772-1200 246-0606 255-9131 718-0900 381-8686 823-8577 538-0707 712-0109 484-9090 752-6655 657-9010 256-8200 557-7500 918-1515 678-0707 553-2772 2270-6500 757-0707 533-0202 887-0809 995-0123 2232-7100 335-6600 448-0707 937-0707 541-5566 3477-4567 449-0808 653-0844 2217-2114 2254-4090 518-2222 428-0707 243-0707 505-6400 818-0100 626-4477 746-9944 285-5500 297-2277 355-7707 273-8700 257-0777 232-0707 956-0707 442-9171 286-9911 533-1133 682-5262 791-8020 642-1777 752-8877 732-3377 3142-6363 547-0202 2057-0707 423-7700 642-0606 944-0707 451-0707 855-0606 282-0102

/ POSCO271 00-11-20 5 2,000 AAA SK201 01-01-18 4 1,500 AA- 20 01-02-09 5 3,000 A+ 3 01-02-26 5 300 A0 SK203 01-02-28 4 1,500 AA- 40 01-03-09 5 100 BBB+ 23 01-04-20 5 500 A+ 37 01-05-24 4 1,000 A+ 295 01-05-24 5 2,000 A+ LG 26 01-05-31 5 1,500 AA- 296 01-06-01 5 500 A+ POSCO274 01-06-13 5 2,000 AAA 128 01-07-04 5 700 A0 POSCO275 01-07-05 5 2,000 AAA 42 01-07-27 5 300 A0 LG 9 01-07-30 5 2,000 A+ 123 01-08-01 5 100 BBB+ SK 22 01-08-08 5 2,000 AA+ 299 01-08-13 5 1,000 A+ SK211 01-08-24 5 2,000 AA- LG 101 01-09-10 5 200 A+ LG 29 01-09-12 5 3,000 AA- 43 01-09-20 4 1,000 A- SK213 01-09-27 5 1,500 AA- LGEI1 01-10-31 5 2,000 AA- SK215 01-11-13 4 2,500 AA- SK 26 01-11-21 5 2,000 AA+ 3-1 01-11-29 5 2,000 AAA 4-1 02-03-15 5 1,300 AAA 2 02-03-28 5 1,000 AAA 2-1 02-04-08 5 500 AAA 2-2 02-04-08 5 500 AAA 2-2 02-05-13 5 500 AAA 2000 238,089 2,000 0.8% 2001 393,401 38,200 9.7% 2002 85,112 3,800 4.5%

0 10 20 30 40 50 60 70 (bp) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 00-10 01-01 01-04 01-07 01-10 02-01 02-04 ( ) ( ) ( )