Korea Exchange Chairman And Division Presidents Sign Unprecedented Performance Agreement

On March 31, 2005, the Chairman of the Korea Exchange and its division presidents signed an agreement relating to the Exchange’s performance. This initiative, unprecedented among securities institutions, is one of a series of actions implemented by KRX toward its vision formulated as 'Global KRX, a Premiere Capital Market in Northeast Asia.’ ? The performance agreement is intended to promote responsible management and management efficiency in the new consolidated exchange launched on January 27.

In accordance with the vision of KRX, announced on March 14, and the 3 related strategies, the agreement makes the division directors accountable for the progress achieved by their divisions toward respective operational goals.?To better align its efforts toward its operation objectives, KRX plans to conduct an interim progress evaluation in June. The annual evaluation, scheduled for January of next year, will consist of an assessment by the Operation Evaluation Committee and a review by the chairman.

Evaluation Items

• Operation Results (60%): progress toward the set objectives of each division and performance level concerning duties specific to individual divisions (196 tasks)
• Management Competence (20%): leadership, innovation initiatives, management performance, efficiency in management of organization and PR activities (4 total areas)
• Customer Satisfaction (20%): Satisfaction level regarding services provided, satisfaction level regarding tasks completed (2 areas)

Use of Evaluation Results

• The evaluation results will be passed on to the Compensation Committee, and used as a basis of determination of compensation and special bonus and incentive allowances.

Furthermore, the performance agreement entered into between the Chairman and division directors will be followed by agreements, this time, between division director and executive officer (deputy director) of each division.