1. © Mondex Korea Limited 1999 Chip Card Platforms Assessment Page 1 of 38 © Mondex Korea Limited 1999 Evolution of Electronic Payments K.B. Kim President, Mondex Korea Chairman, MasterCard Korea

2. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 2 of 41 Discussion Overview Changes in Payment Business Environment Changes in Payment Business Environment Changes in Payment Technology Changes in Payment Technology Evolution of Payment Products Evolution of Payment Products Future of Payment Products and Technology Future of Payment Products and Technology Impact on New Economy Impact on New Economy

3. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 3 of 41 Changes in Payment Business Environment

4. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 4 of 41 The New Economy Virtual Economy New Economy Traditional Economy  Mature business model  Incremental innovation  Capital asset driven  Evolving business models  Significant innovation  Technology enabled  Seamless integration of virtual/traditional economy  Immature business models  Speed-to-market  Business model innovation  Technology asset driven

5. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 5 of 41 Internet Transforms Industries Indexed Market Capitalization Brokerage Industry Computer Industry Charles Schwab Dell Merrill Lynch Compaq 1995 199619971998199920001995 19961997199819992000 1,039 463 5,816 343

6. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 6 of 41 Emerging Consumer and Merchant Choice New concepts introduced weekly Increasing consumer choice Increasing merchant choice Inflection point in the evolution of the industry? Number of Consumer Payment Choices Cash, Credit, Debit, Check 4 20 19952000

7. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 7 of 41 Well-Funded New Entrants Average new entrant investment was approximately $60M in 2000 $17 billion spent by VCs on Internet startups in Q1 2000 Nearly $5B spent in the financial services sector $ 2,000 $ 1,800 $ 1,600 $ 1,400 $ 1,200 $ 1,000 $ 800 $ 600 $ 400 $ 200 $- B2B Payments E-commerce Technologies Financial Mortgage Brokerage Debt Collections Total VC Funding Q1 2000 $17 Billion Contents Sites Total VC Funding for Financial Services Q1 2000 30% 18% 15% 9% 4% 24% E-commerce & content Financial Services

8. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 8 of 41 New Payments Competition Software Providers eRetailers eFinancial Services Portals - ISPs Telcoms/ Cable Online Currency Traditional Competitors

9. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 9 of 41 Competitive Impact Disintermediation threat at a number of places along bank’s value chains Pressure from new channels on infrastructure and standards Challenged by new economic / business models Infrastructure & Standards Delivery Channels Acceptance Products & Services Branding

10. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 10 of 41 Competitive Dynamics Health Care Government Service/ Recurring Retail Leisure Travel Online Traditional $ 0.9T $ 2.4T $ 5.1T $ 9.2T $ 0.6T Competitors leveraging online capabilities to push into traditional card markets Competitors employing new technologies to capture traditional cash and check transactions $ 18.2 Trillion Global Personal Consumption Expenditure Cash/Check

11. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 11 of 41 New Competitive Environment It is early in the game but competitors and new entrants are putting significant “stakes in the ground” The bar is being raised on what it takes to lead, let alone remain competitive We are at an inflection point in our industry where “doing business as usual” will create a weakened position for MasterCard Success will be driven by appropriate focus and investment in emerging markets and ideas

12. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 12 of 41 Market is Changing 19951996 1997 199819992000 Navigator Introduced Launched IPO Launched Next Card Introduced Person to Person Payment EBPP AMEX Launches Blue Card Secure Interface Development mastercard.com Launched Electronic Certification Services Shop Smart! Internal Pilot of Clarus B-to-B Electronic Purchasing Announce Alliance From Marketing Alliance MasterCard/ Cirrus ATM Locator on Palm VII Organizer 3 Wallet Alliances with

13. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 13 of 41 Creating Value in the New Economy  The fundamentals have not changed:  Know your customer  Differentiate  Execute  Our plans  Focus on our members and their customers  Invest in new activities  Become net ready and active across the company  Leverage our current assets coupled with disciplined investments and execution in Leadership / Big GDV opportunity areas

14. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 14 of 41 e-Business Strategy Add Member Value Profitable GDV Growth Focus Leverage Platforms in the e-Business Environment Expand Interactive Presence and Build Brand Preference Strengthen Develop Key MasterCard Partner Programs Differentiate

15. © Mondex Korea Limited 1999 Chip Card Platforms Assessment Page 15 of 38 © Mondex Korea Limited 1999 Changes in Payment Technology

16. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 16 of 41 ATM Second Industrial Revolution Changed Banking Landscape Citibank never sleeps  24hr Banking Changed Banking Operations Automated processing Cost Competitiveness

17. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 17 of 41 Electronic Funds Transfer (EFT) 3 rd Industrial Revolution SWIFT, TESTED TLX Obsolete Accelerate Credit card usage Authorization and settlement B2B transactions  ATM Network

18. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 18 of 41 Internet Payment B2B transactions B2C transactions Cyber transactions and cyber payments Network type vs IC card type Security critical

19. © Mondex Korea Limited 1999 Chip Card Platforms Assessment Page 19 of 38 © Mondex Korea Limited 1999 Evolution of Payment Products

20. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 20 of 41 Credit Card, Debit Card 1970198019902000 2010 100 500 1,000 1,500 CardsVolume($Billion) 100 150 1,000 2,500

21. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 21 of 41 Virtual Card Internet Payment Card Virtual account EC driven Real and virtual world HSBC i-Life Card

22. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 22 of 41 Electronic Cash Network vs IC Card Micropayments for virtual and Real Security critical Life style card Mondex leading e-cash

23. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 23 of 41 Mobile Commerce Internet Access Internet Access Voice, Data, Fax Voice, Data, Fax Information transmission Information transmission Payments over mobile phone Payments over mobile phone

24. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 24 of 41 Penetration in Major Cellular Markets Finland Norway Denmark Sweden Italy UK Japan France Germany USA 0 10203040 50 60 70 80 (%) Korea

25. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 25 of 41 Voice to Non-voice Communications Market size 19992010 Data Voice Convenience of mobile communications - Anytime, anywhere, Anyone - Challenging the Mobile Frontier

26. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 26 of 41 Mobile Multimedia Service Mobile TV Phone Video conference Internet, E-mail E-Commerce Locating Data Center Database ITS Tele Medicine Emergency communications system Remote monitoring system Electronic newspaper Electronic book TV Shoppiong Distance learning Mobile TV Video on demand Interactive TV Interactive game Tele medicine Information providing Service E-Commerce Database Business Use Public Use Private Use Multimedia Mobile Communications Network

27. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 27 of 41 Application Alliance Partners (1)  Mobile Banking Service (300 major financial institutions) Full Banking Services (Money Transfer, Check Balance, etc.) ━ Sakura Bank ━ Sanwa Bank ━ Sumitomo Bank ━ Bank of Tokyo Mitsubishi 150 other major banks in Japan Partial Banking Services (Not including money transfer from your account to others) ━ CITIBANK (Money Transfer, Check Balance, etc.) ━ 119 other banks and financial institutions (regional banks, credit unions, farmer’s unions, etc.). (Check Balance, Foreign Currency Delivery, etc.)

28. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 28 of 41 Application Alliance Partners (2)  Mobile Trade Service You can check the latest real time stock price and trade it! ━ Daiwa Securities (Stock Quotes, Selling/Buying Stocks, MMF) ━ Nikko Securities (Stock Quotes, Selling/Buying Stocks, etc.) ━ DLJ Direct (Stock Quotes, Selling/Buying, Virtual Investment Game, etc.) ━ Nomura Securities (Stock Quotes, Selling/Buying, etc.)  Credit Card Information ━ DC Card (Check Account Balance, Member Information) ━ Sumitomo VISA Card (Member Information) ━ UC Card (Member Information) ━ Million Card (Check Account Balance, Member Information)  Insurance Transaction (Account Info, Money Transfer) ━ Nippon Life Insurance, Meiji Life Insurance, and many others ━ AIU (Online Travel Insurance Application)

29. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 29 of 41 Application Alliance Partners (3)  Airline (e-ticket, Online Reservation, Mileage Account Check, etc.) ━ Japan Airlines (JAL) ━ All Nippon Airways (ANA) ━ Japan Air System (JAS) ━ Northwest Airline (NWA)  Travel ━ JTB (Japan Travel Bureau) (Hotel Online Reservation) ━ 6 other travel related web (incl. Railway/Subway Transit Guidance w/Timetable, Discount Ticket Search, etc.)  Concert Ticket Reservation ━ PLA (Searching Concerts, Telephone Booking) ━ Lawson Ticket (Online Booking, Searching Concerts) ━ Ticket Saison (Searching Concerts, Telephone Booking)

30. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 30 of 41 Application Alliance Partners (4)  News/Information ━ CNN (Headline News, World News, Business News, etc.) ━ Bloomberg (Market News, Stock Quotes, Company News) ━ Dow Jones (Market Reports) ━ Asahi Shimbun (Headline News, Sports, News) ━ Mainichi Shimbun (News Updates, Sports News) ━ Sankei Shimbun (Web News, Horse Racing Info., Sports News, Classical Music Channel) ━ NIKKEI Newspaper (Categorized News) ━ Yomiuri Shimbun (News Updates, Giants Channel, Sports News) ━ Weathernews (Weather news, Weather Related Info.) ━ NHK (TV Headline News, Music Info., F-1 News, etc.) ━ Nikkei BP (BizTech: Business/Technology News) ━ JIJI Press (News Updates) ━ Morningstar (Mutual Fund Ratings, Fund information) ━ People’s Daily (Chinese News, World News) ━ Chosun Ilbo (Korean News) ━ 17 other regional papers

31. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 31 of 41 Application Alliance Partners (5)  Data Base Application ━ Ajinomoto (Recipe DB), Osaka Gas (Recipe DB) ━ NTT (Telephone Directory (Yellowpage)) ━ Sanseido (Directory Service) ━ Zagat Survey (Restaurant Guide), PIA (Restaurant Guide) ━ Tokyo Food Pages (English Restaurant Guide)  Sales ━ Kinokuniya Bookstore, Book Service, Hon-ya-san, Yamato (Online Book Sales) ━ Cyberwing (Online CD Sales) ━ Tsutaya (Online CD, Game software Sales) ━ TV Panic (Game software Sales)  Visual Service ━ Bandai (Character Delivery) ━ Photonet Japan (Photo Data Web Hosting, Photo collections (downloads))

32. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 32 of 41 Application Alliance Partners (6)  Entertainment Network Games ━ Bandai (Virtual Gamble Game, Virtual Golf, Virtual Dating Game etc.) ━ Tomy, Namco, Konami (I-mode version od Arcade Games, etc.) ━ Dwango (Virtual Fishing Game) ━ Hudson (Miracle Ground Prix, Shogi) ━ Index Ringing Tone Downloads and Karaoke Search ━ Dai-ichi Kosho (Karaoke Search, Ranking, New Songs, etc.) ━ Giga Networks, Exing, Joysound, DAM, Yamaha, Sega (Ringing Download) Entertainment Information ━ Tsutaya (Rental Video/CD Ranking, Inventory Information) ━ Cybird (Surfing Information, Fishing Information) ━ J-WAVE, TOKYO FM, FM802, fm osaka (FM Radio Station Information, Now On Air) ━ Nippon TV, NHK, Sky Perfect, Fuji TV, (TV guides, program info, etc) ━ Other entertainment guides Horoscope, Fortune telling, etc.

33. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 33 of 41 Content Example Mobile Banking MY MENU 1.Weathernews 2.ZAGAT Tokyo 3.Nikkel News 4.Sumitomo Bank 1.Mobile Banking 2.Telephone Banking Center 3.ATM Maps 4.Service Info 5.Sample 6.Application Form Request 7.Customer Mobile Banking 1.Start 2.Quit 3.Help Desk(Tokyo) 4.Help Balance Check Money Transfer Change PIN Quit * * * * * * * <Input ACCT# And First PIN> ACCT# 1st PIN * * * * * * * Submit Cancel 035473811 Calling <Account Selection> ◎ Tokyo Brunch Savings ***1234 ○ Yokohama Br. Checking <Account Selection> ◎ Tokyo Brunch Savings ***1234 ○ Yokohama Br. Checking 11/3 10:30 #Account Balance Y 123,456 Back to Menu ○ Sumitomo Bank Osaka Brunch Saving ***4321 Paul Smith ◎ CITIBANK Tennoz Brunch Savings ***125 Takeshi Natsuno Transfer Amout 1000000 Transfer Back to Menu 315 Input 2nd PIN FROM: Sumitomo Bank Tokyo Brunch Savings***4321 TO: CITIBANK Tennoz Brunch Savings****135 Takeshi Natsuno Amount Y100,000 Fee * * * Confirm Cancel <Order Completed> Excuted 11/3 Order # 1103-001 Back To Menu MY MENU 1.Weathernews 2.ZAGAT Tokyo 3.Nikkel News 4.Sumitomo Bank Below Balance Check Money Transfer

34. © Mondex Korea Limited 1999 Chip Card Platforms Assessment Page 34 of 38 © Mondex Korea Limited 1999 Future of Payment Products And Technology

35. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 35 of 41 Future of Payment Products and Technology EBPP EBPP Electronic Cash Electronic Cash Chip, Biometrix, Voice Recognition Chip, Biometrix, Voice Recognition Security Security

36. © Mondex Korea Limited 1999 Chip Card Platforms Assessment Page 36 of 38 © Mondex Korea Limited 1999 Impact on New Economy

37. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 37 of 41 Virtual Banking Smile Bank in UK Smile Bank in UK Deposit, Transfers, Loan, fx Deposit, Transfers, Loan, fx Securities Transactions Securities Transactions

38. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 38 of 41 Real and Virtual Consumers Virtual population Virtual population Co-existence Co-existence US Survey on consumer banking behavior US Survey on consumer banking behavior

39. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 39 of 41 Real and Virtual Market B2B B2B B2C B2C B2G B2G Market Place Market Place

40. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 40 of 41 Globalization Cross-Border Cross-Border Global Currency Global Currency Global Economy Global Economy

41. © Mondex Korea Limited 2000 Evolution of Electronic Payments K.B. Kim Page 41 of 41 Questions & Answers