Industrial Processing I. Auto Sales & CO2 Emission in Transport Sector Automobile Sales in Korea(000 units) CO2 Emissions by Sector 2007(mil.tCO2) Transport: 100.2 525.4 (84.7%) 60.9 (9,8%) 18.4 (3,0%) 15.3 (2.5%) Agriculture Waste Industrial Processing Energy Consuming Sectors 1 -

Higher Ratio of Medium/Large Cars II. Consumer Preferences in Korea New Registration by Fuel Type(000 units) Higher Ratio of Medium/Large Cars Mini :12% 156 (10.7%) Large : 23% Small :28% 171 (13.6%) 179 (14.4%) Medium : 38% 151 (13.2%) 190 (16.2%) 440 (30.2%) Car sales by size (2009) 378 (30.4%) 488 (38.8%) 482 (42.1%) 461 (39.2%) Preference of Auto T/M 854 (58.5%) 679 (54.5%) 592 (47.0%) 506 (44.2%) 519 (44.1%) Manual T/M Auto T/M 4% 96% - 2 -

Availability & Development Plan III. Environment-friendly Vehicles in Korea Category Availability & Development Plan HEV LPG HEVs introduced in 2nd half 2009 FCEV Mass production models to be developed by 2015 EV - Small EV ‘BlueOn’ introduced by Hyundai Road test & marketing to be commence late 2010 or 2011 Medium EVs to be developed by 2014 BD Already available in the market by oil refineries Max. volume content of bio-diesel : BD2 in 2010, BD2.5 in 2011, BD3 in 2012 * The BD content ratio is under review NGV City buses are being replaced by CNG vehicles LPG Available only for taxes, the disable, mini vehicles, HEV, etc. Clean Diesel European emission standards applied -5-

IV. Government Plans for Infrastructure ITS (Intelligent Transport System) Efficient traffic management and CO2 reduction Electric Charging System Establish roadmap for EV charging infrastructure by June 2011, and then set up 2.2 million charging systems by 2020 Electronic Toll System The use of electronic toll collection system on the Seoul Ring Expressway reduced 100 thousand tons of CO2 over 10 years. -6-

Fuel Efficiency Regulation V. Integrated Approach for CO2 Reduction Fuel Efficiency Regulation Establishment of fuel efficiency regulations - Fuel efficiency of 17Km/L or CO2 emissions of 140g/km by 2015 Tax Incentives Tax-cut of environment-friendly vehicles Revise of tax basis to CO2 emissions or fuel efficiency (under review) Fuel Quality Auto-Oil Program to be implemented after 2011 for fuel quality improvement among industry-refinery-government Consumer Education Publicity campaign and educational programs for eco-driving -6-