Press Release of September 26, 1998

Measures toward 4 securities houses'

management improvement plans

- The Financial Supervisory Commission (FSC, Chairman Hun Jai Lee) held a meeting on September 25, 1998 and decided on the conditional approval of the management improvement plans of Ssangyong Investment & Securities Co. and SK Securities Co. and the disapproval of the management improvement plans of KLB Securities Co. and Dongbang Peregrine Securities Co..

- Required measures for conditionally approved securities houses ; Utilizing input from the evaluation report on management improvement plans of the Appraisal Committee, the FSC approved the following measures.

O Ssangyong Investment & Securities Co. and SK Securities Co. will be required to make supplementary measures concerning their management improvement plans and to submit detailed implementation plans and a memorandum of implementation by October 24, 1998.

O Ssangyong Investment & Securities Co.

· Further self-restructuring efforts including the sell-off of held real estate properties.

· Right issues and subordinated loans from H&Q to be secured by the end of Dec., 1998.

O SK Securities Co.

· Devise plans to recapitalize through increasing equity stake of major shareholders.

· Right issues of 200 billion won to be secured by the end of December, 1998.

· Developments relating to suits currently under court proceedings and the preparation of plans to secure a sufficient level of equity capital even if losses are incurred as a result of final outcome of the suits.

- Reasons for disapproval of the other securities houses

O KLB Securities Co.

· The company applied for business suspension on a voluntary basis.

· Concerns toward the recipient (the parent bank) of government's financial support making equity capital contribution to a distressed financial institution.

※ The parent bank, Korea Long Term Credit Bank, will receive financial support from the government.

O Dongbang Peregrine Securities

· Uncertainty toward the funding capability of entities that intend to participate in rights issues.

- Future plans

O Securities houses that received conditional approvals with regards to management improvement plans will be required to submit a memorandum of implementation and will be monitored for satisfactory implementation on a quarterly basis.

O Securities houses that received disapprovals with regards to

management improvement plans will be subject to business suspension as of September 26, 1998 until Oct. 24, 1998.

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Structual Reform Planning Unit

Financial Supervisory Commission

Seoul, Korea