G.SQUARE, 180, Simin-daero, Dongan-gu, Anyang-si, Gyeonggi-do, Korea

www.taihan.com

the way to

a global leadingcompany

Annual Report2013

Annual R

eport 2013

Contents

INTRO SECTION06 2013PerformanceHighlights08CEOMessage10CorporateHistory12DomesticAffiliates14GlobalAffiliates16OrganizationlChart

REVIEW OF OPERATIONS18 PowerCable-Global21 PowerCable-Domestic22 EHVAccessory22 CommunicationCable23 Engineering&ConstructionDivision24 R&D26 CopperRod&Wire

SUSTAINABILITY MANAGEMENT28TransparentManagement30People32SocialContribution34SafeandHealthyWorkingPlace38EnvironmentalPerformance

FINANCIAL SECTION44IndependentAuditors’Report46StatementsOfFinancialPosition48SeparateStatementsOfComprehensiveIncome49SeparateStatementsOfChangesInShareholders’Equity50SeparateStatementsOfCashFlows52TAIHANaroundtheWorld

Company ProfileCompany name_ Taihan Electric Wire Co., Ltd

Business area_ Cables & Wires

Products and services_ Manufacturing, supplying, and construction services related to power lines,

communications and optical cables, and ultra high voltage cables

CEO_ Hee-Jeon Kang

Address_ G.SQUARE, 180, Simin-daero, Dongan-gu, Anyang-si, Gyeonggi-do, Korea

Establishment_ Feburuary 21, 1955

Initial public offering_ December 27, 1968

No. of employees_ 882

Fiscal year ends in_ 2013

Face value_ 2,500 KRW

No. of stocks issued_ 196,634,401

External auditing agency_ Deloitte Anjin LLC

Auditor’s remark_ Clean Opinion

Closing month_ December

Main bank_ Hana Bank

Financial HilightsFor the years ended

2011 2012 2013

Sales 2,578,240 1,982,801 1,910,024

GrossProfits 127,427 108,231 79,663

OperatingIncome 47,689 5,072 (196,511)

EBITDA 60,503 25,429 (173,850)

IncomeBeforeTax (223,871) (323,736) (642,018)

NetIncome (213,185) (443,261) (706,654)

As of the years ended

2011 2012 2013

CurrentAssets 1,167,373 828,440 499,309

Property,PlantandEquipments 555,079 561,909 531,725

TotalAssets 2,712,171 1,491,580

interestbearingDebts 1,811,708 1,444,268 724,101

NetDebts 1,776,724 1,399,026 692,718

TotalLiablities 2,363,941 1,935,898 1,219,049

CapitalStock 389,856 262,842 491,586

CapitalSurplus 175,500 496,427 481,192

RetainedEarning (213,461) (447,887) (703,780)

CapitalAdjustment (3,665) 1,313 3,533 TotalShareholder'sEquity 348,230 312,695 272,531

Korean won (In millions)

Korean won (In millions)

THE wAy TO A GlOBAllEAdING COMPANy

Establishedin1955asKorea’sfirstelectricwiremanufacturer,TaihanElectricWireisatechnologyleaderintheindustryofpowerandcommunicationscablesandmaterials.Thecompanymaintainsacompetitivepositionintheglobalmarketwith70%ofEHV-cablesalessuppliedtocompaniesoutsideKorea.OurprioritiesareonR&Dandorganizationalcompetency,inordertosuccessfullyimplementgrowthstrategiesinthenextgenerationmarket.Taihan’spromiseistoalwaysputcustomersfirstandtoprovidethebestqualityproductsandservices.Wearecommittedtocreatingthebestvalueforourcustomersandhelpingthemgrowwithus,basedonourintegrityandethicalmanagementprinciples.

development of 400km/h Class High-Speed Trolley wire for the First Time in the world, and Transfer of its Technology

Success in Commercial Operation of 500kV Extra-High-Voltage(EHV) Cables for the First Time in Korea

Provision of an Integrated Solution through the development of an EHV cable Post-Management Program

Acceleration of the development of New Products through Expansion of R&d

Reinforcement of Overseas Sales Activity

TaihanElectricWireandKoreaRailroadResearch Institute jointlysucceededindevelopingtrolleywireforhigh-speedrailwaysof400km/hclassoperatingspeedforthefirsttimeintheworldwiththesupportofMinistryofLand,TransportandMarineAffairs,andappliedthistothedemonstrationsectionofHonamExpressRailway. Inaddition,Taihanheldasigningceremonyfortechnologytransfertoreceivetherighttohavepriorityintechnologyandproductionoftrolleywireforhigh-speedrailwaysof400km/hclassfromKoreaRailroadResearchInstitute.

Forthetrolleywire,whichisacorecomponenttosupplyelectricpowertoanelectricvehicle inexpress railwaysandsubways, theexisting350km/hclasshasbeenregardedastheupperspeedlimit,andevenintheEuropeanadvancedcountrieswithoutstandingtechnicalability,the350km/hclassoperatingspeedwasthehighestperformance.Thehigh-speed trolleywiredevelopedbyTaihan isahigh-strengthandhigh-conductivitytrolleywirethatimproveditsmechanicalstrengthandminimizedthedropinitselectricconductivity.

Taihanhassecuredapositionoftechnicalsuperiorityfor400km/hclasshigh-speedtrolleywirethroughatechnicalsigningceremony, throughwhich improvementofsalesviaadvancement intooverseasmarketssuchasEurope,SoutheastAsia,etc.aswellasdomesticmarkets isexpected.

Taihansucceededinenergizingtheactualloadingof500kVclassExtra-high-voltage(EHV)powercables inSiberia,Russia, for thefirst time inthedomesticelectricwire industry.TheEHVcablesystem,whichhasstarteditscommercialoperation,isaprojectwhoseorderwasreceivedbyTaihaninDecember2010forthefirsttimeinthedomesticindustryof500kVclassandwhichsuppliesandinstalls500kVclassEHVcablesandconnections forRussiaHydroPowerGenerationCorporation.Accordingly,Taihanhasestablishedasuccessful record intheexportandcommercialoperationof500kVclassEHVcablesystemsfor thefirsttimeinKorea.

Especially, the 500kV class EHV cable is the highest grade ofundergroundelectricpower cablescommercialized in theglobalmarketsofar,sothisisaproductrequiringtechnologyofthehighestlevelandonlythetop5~6enterprisesintheworldhavehadsuccessfulconstructionresults in this field.Taihan’ssuccess in thecommercialoperation of 500kV EHV cables has become an opportunity todemonstrateTaihan’ssuperiority in technologiesandproductsonceagain.

Taihanhasdeveloped theDTS(DistributedTempe ra tu re Senso r )&DTR (Dynam icRatingSystem),acablepost-managementprogram. The DTS&DTR developed atthis timesupports thestableoperationoflines by taking measures promptly whenan abnormality takes place in the cableby calculat ing the real-t ime al lowablecapacity based on the information oncable temperature.Taihanhascome tobeable toprovidean integratedsolution fromproductiontomanagementbyexpanding itsbusinessareasupto thepost-managementofcablesbydevelopingamoreadvancedpost-management program. Taihan hasselectedtheanticipativelyrequestedmattersby worksites as wel l as the DTS&DTRprogramdevelopedat this timeas intensivetechnical innovationprojects,and isstartingtodevelopthem.

Taihan has reinforced its product l ineswhile succeeding in the development ofnewproducts insuccession in the fieldsofOPGW,optical fiberandcommunicationviaexpansionofR&D.Taihanhasdevelopedaneco-friendlygel-free typeofOPGW(opticalgroundwire)product toavoidgenerationofenvironmentalcontaminants,andhasalsoreleasedproductswithhigherefficiency indata transmissionduringLTEservice thanexistingproducts.

Taihanhas started todevelopandmass-produce U-BIF (u l t ra bend insens i t ivefibers) satisfying theoptical transmissioncharacteristicseven ina5mmor lessradiusofcurvature,with itsown technology.Thisis being evaluated as the most suitablecomponent inopticalcables forFTTH(FiberToTheHome).Inaddition,TaihanisfocusingonthepositiveexpansionofR&DsuchasthedevelopmentofslimUTP-cable(UnshieldedTwistedPairCable)without insertionof fillersfor thefirst time inKoreaandtheexpansionofglobalmarketsby releasingvariousnewproductswithitsunrivaledtechnology.

Taihanhascarriedout the reorganizationof itsorganization to reinforce itsability tohandleoverseasordersandexpanditssalesability.Taihanhasexpandedandreorganizedthe EHV cable sales headquarters into2 headquarters and the Industrial cablesalesheadquarters into3 teams,andhasreinforceditsmarketingmanpoweronalargescaletopromoteitsefficiencyandexpertise.Inaddition,TaihanhasnewlyestablishedanEHVAccessorySalesTeam to copewiththeexpansionofcableaccessorymarketsimmediately.

Ta ihan has es tab l i shed i t s b ranchesadditionally andhasemployed local salesmanpowerforexpansion.Taihanhasnotonlyestablishedbranches inLAadditionally inorder topenetrate theNorthAmericanareaona fullscale,buthasalsoestablished itsJeddahbranch toexpand itsmarketshareintheMiddleEastarea,anareawhereithasreceivedmanyorderspreviously.

I n add i t i on , Ta ihan has c rea ted theopportunity to share informationoncablemarketsandestablishamedium-and long-termmarketingstrategybyholdingbranchmanagermeetingsbycallingtogetherbranchmanagers from each area of the world.Taihanhasaplantocreateopportunities toexpand itsmarketspositivelyby focusingitsmanpowerontheoverseassalesareatosupply itsproductstoall theglobalmarketsincluding Southeast Asia as well as theMiddleEast,itsmajormarkets.

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2013 Performance Highlights

Taihan Electric Wire announced its new

company vision to be “a global leader

in energy and information industries,

providing the best value to customers”

and established four core strategies: high-

profit products development, enhanced

cost control, focus on the global market,

and new technology development. The

vision and strategic focus represent

our commitment to growth and global

leadership.

Dearcustomers,shareholdersandallthepersonsconcerned,wereallyappreciateyouforgivingyourconstantsupporttoTaihanElectricWire.

Lastyear,theunstableeconomicsituationcontinuedduetouncertaintyintheglobaleconomyandtherecessioninthedomesticmarket.However,eveninthisunfavorableenvironment,Taihanhasexertedaconcertedefforttoconcludethefinancialstructuralimprovementprocessthathasbeenongoingoverrecentyearsandtostabilizethefinancialsituation.

Asaresult,Taihansafelyconcludedadebt-equityswapof700billionwoninDecember2013thatpresentedastarkchallengetomanagement2013.Asaresultofthis,astablefinancialsituationhasbeenestablishedandthefocushasresumedonnormalsalesactivities.

Inaddition,Taihanhasbeendiligentinitseffortstosecurefuturegrowthenginestopositionitselfasfuture-orientatedsustainableenterpriseratherthanjustconcentratingonovercomingpresentdifficulties.Taihanhasnotonlyreceivedordersforbiglarge-scaleprojectsbypreparingthegroundworkforincreasedorder-receiving,buthasalsomadeanefforttosecurecompetitivenessintermsofqualitybysucceedinginthecommercializationofundergroundExtra-high-voltagecablesofthehighestvoltageintheworldaswellasthedevelopmentoftrolleywireofthehighestspeedintheworld.

Despitethiseffortandperformance,unfortunatelytheresultsin2013recordedadeficit,showingnoimprovementcomparedtothepreviousyear.However,thiswascausedbytreatingtheguaranteedbondandloanbondrelatedtorealestateasanallowanceforpromptrestructuringandinsolvencysettlement.Thecompanyhasnowestablishedasoundfinancialsituationstartingfromthisyear,andmeansthatthecompanyisabletoconcentrateonsecuringglobalcompetitivenessstartingfrom2014.

IwouldliketoremindourshareholdersthatthecurrentrecessionintheglobaleconomyisespeciallyhardonTaihanasitreliestoagreatextentonexports.Eventhoughtheeconomyisslowlyrecovering,therearemanythreatsstillremainingsuchasfluctuatingexchangerates,unstablepricesforrawmaterials,andgrowingcompetitioninthemarket.Inordertoovercomethiscrisisandbecomeawinnerintheglobalmarket,wemustfocusonhigh-profittechnologyandproductdevelopmentandcompetitivepricingthroughcostcontrol.

Sincethecompany’sestablishmentin1955,Taihanhasmetandovercomecountlesschallengesandcrises.Thecompanyhasmaintainedsteadyprogresstoachievetheglobaltoppositioninthebusinessareasofpower,communications,andmaterials,helpingtobuildthefoundationsforindustries.Althoughthepresentsituationisacrisis,wewillturnitintoanopportunityforinnovationandgrowth.Wewilltakethisopportunitytomoveforwardtoachievestableandconsistentgrowthandbecomeagloballeadingcompany.

Morethananything,supportfromourshareholdersisthedrivingforceforTaihantoovercomecrisesandstabilizethecompany.

Thisisthe59thyearforTaihan.Whilewehaveachievedalotsofar,wewillnotremainsatisfiedwiththestatusquo.Wewillcontinueimprovingbymakingdifficultdecisionsrelatedtorestructuringtobecomemoreefficient,expandourbusinessintheglobalmarkets,enhancehigh-profitproductlines,andreducecostsanddevelopnewtechnologies.Wewillnotstopinoureffortstorealizeourpromisetoourshareholders,ofbecoming“agloballeaderintheenergyandinformationindustries,providingthebestvaluesforshareholders.”

Iwouldliketothankourcustomersandshareholdersagain,fortheirunwaveringandcontinuingsupportandinterestinthefutureofTaihan.

Sincerely,

March 23, 2014CEO and President, Kang, Hee-Jeon

CE

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CEO Message

1984 ·CompletedopticalfibercableplantinAnyang ·Producedmultipleandsinglemodeopticalfibercable ·Developedandproduced154kVXLPEpowercable1985 ·Developed345kVOFpowercable ·SuppliedtheopticalfibercableforSeoulOlympiccommunicationnetworks ·Developedthe154kVsinglecoreleadsheathedOFcable ·Exported132kVXLPEpowercablefirsttimeinKorea1986 ·AcquiredtheKSMarkforvinylinsulatedcable,highfrequencycoaxialcable ·WonthePrimeMinisterAwardmeritoriousserviceinNational

backboneCommunicationNetwork1987 ·ManufacturedOpticalFiberGroundWire(OPGW) ·DevelopedhighfoamedcoaxialcableforCATV ·SucceededinlocalizationofextrahighvoltageOFcableaccessories1988 ·Developedsubmarineopticalfibercableandleakagecoaxialcable ·DevelopedKraftinsulated345kVOFcablefirsttimeinKorea1989 ·Developedopticalfibercableforemergencyand154kVOFcable

accessoriesDevelopedPPLPinsulated345kVOFcablefirsttimeinKorea

1991 ·ExpandedSCRproductionfacilities,thelargestcapacityinKorea ·Supplied565Mb/sOpticalTransmissionSystemtoKT1992 ·EstablishedajointventureinQingdao,China ·Commercialized345kVOFcable ·SucceededlocalizationofClass1Epowercablefortheunclearpower1993 ·AcquiredISO9001CertificateoncableandWattHourMeter ·DevelopedElectronicWattHourMeter1994 ·Launchedstainlesssteelbusiness ·Developed345kVOPGW1995 ·Developed345kVand765kVAWSforoverheadgroundwire ·Developed765kVACSR/AW480SQMM(Cardinal) ·DevelopedSTACIR ·AcquiredISO9002certificateonstainlesssteel1996 ·CompletednewVCVTOWERandextrahighvoltagepowercableplant ·Developedopticaldistributionboard,opticalterminalbox,mechanical

connectorDevelopedhighintensityTACSR/AWand765kVOPGW ·AcquiredISO9001Certificateonpowercableaccessories1997 ·AwardedthePresidentialPrizeforachievingUS$500Millionexport ·Developedribbontypeopticalfibercable ·DevelopedAerialBundleCablewithWaterproof(ABC-W)1998 ·Commercializedthemultiplemechanicalopticalconnector ·Recorded2Milliontonsofcopperrod ·DevelopedNon-ZeroDispersionShiftedopticalfiber1999 ·EstablishedSkytelinMongolia ·Separatedthealuminumbusiness(founded‘NovelisKorea’) ·Developedepoxybushingforhighvoltagetransmissionlineterminal

1990

2000 ·AcquiredJIScertificateonstainlesssteelcoilandsheet ·EstablishedMaleselaTaihanElectricCablePty.,Ltd.inSouthAfrica ·AcquiredISO9001certificateonextrahighvoltageundergroundpower

cableandOPGW2001 ·AcquiredISO14001certificateforenvironmentalmanagementsystem ·Developed345kVXLPEpowercableDevelopedpolymerinsulator2002 ·Developedandcommercialized345kVXLPEcableaccessories ·Optomagiccompletedopticalfiberplant ·AcquiredMujuResortCo.,Ltd.2003 ·Completed345kVXLPEundergroundpowertransmissionline2004 ·Developed400kVXLPEcableandaccessories(KEMAcertificate) ·DevelopedFTTHtotalsolution ·ParticipatedinBcN(BroadbandconvergenceNetwork)business(Ubinet

consortiumconstructionofFTTH) ·AcquiredSsangbangwool(SBW)Co.,Ltd.(now,TryBrands)2005 ·Celebratedthe50anniversary ·EstablishedSkynetworksinMongolia

2000

·EstablishedTaihan-WizhomeforHomenetworkbusiness(now,TEC&CO) ·SelectedasamodelprojectfortheMujuTourism&Leisurecorporate

IssuedOverseasConvertibleBondsamountingtoUS$160,000,000 ·EstablishedajointventureTSCCo.,Ltd.inVietnam ·AwardedthePresidentialPrizeforachievingUS$700Millionexport ·EstablishedTMCforshipbuildingcableandwire ·EstablishedTaihan-TechrenCo.,Ltd.forsolarpowergeneration2006 ·AchievedKRW2trillioninsales ·AcquiredD.R.CongoKoreaTelecom(CKT)andsetupStandardTelecom ·EstablishedTAIHANGlobalHoldingsLTD.(inHongKong) ·BuiltthethirdVCVextrahighvoltagepowercable2007 ·StandardTelecomLaunchedtelecomoperationserviceinD.R.Congo ·ReceivedanorderworthUS$400MillionbyM-TEC(Pty)Ltd. ·AcquiredHiltonHotelinVancouver,Canada ·CompletedconstructionoftheDangjinpowerdevicesplant ·AcquiredMyungjiConstructionCo.,Ltd.(now,TECConstruction) ·AwardedthePresidentialPrizeforachievingUS$1Billionexport2008 ·Wonthe$100millionpowerturnkeyprojectinQatar ·AcquiredNamkwangEngineering&Construction ·Wonthe$175millionpowerturnkeyprojectinRussia ·Ground-breakingforNewCablePlantinDangjin2009 ·Wonthe$175millionpowerturnkeyprojectinKuwait ·Developedthe400kVEnamelledCopperWireCable ·EstablishedajointventureforcableproductioninSaudiArabia(STCC) ·ListedinDJSI(DowJonesSustainabilityIndex)Korea2009

1955 ·FoundedTAIHANElectricWireCo.,Ltd.1957 ·Producedplasticinsulatedpowercable1958 ·ProducedPVCjacketcable1959 ·InstalledthecoppersmeltingandrollingmillfirsttimeinKorea

1955

1961 ·Producedtheleadsheathedcommunicationcable1964 ·AcquiredKSmarkforwireandcable ·StartedexportofcabletoVietnamandTaiwan1965 ·Produced1.2/4.4mmfineconductorcoaxialcable1966 ·StartedproductionofACSRfirsttimeinKorea1968 ·ListedthecompanystockontheKoreanStockExchange ·Startedproductionofstalpethcable1969 ·Produced33kVXLPEinsulatedpowercablefirsttimeinKorea ·Startedproductionofthewatthourmeter

1960

1970 ·Produced345kVACSRfirsttimeinKoreaaluminumrod ·Producedcommunicationcables&byProperzimethod1972 ·Producedaluminumcompressedconductorpowercable1974 ·AcquiredULandCSACertificatefirsttimeinKorea1975 ·CompletedtheconstructionofAnyangcableplant1976 ·Producedstandardcoaxialcableand154kVOFcable1977 ·Developedopticalfibercable ·Markedtheproductionrecordof1Millionwatthourmeters1978 ·WonthegrandprizeofFirstSecuritiesAward ·CompletedextrahighvoltageOFpowercableplant ·ContractedforUS$30MillioncommunicationcabletoSaudiArabia1979 ·InstalledtheopticalcablenetworkinSeoul ·Developedandproducedscreencable

1970

1980 ·CompletedundergroundpowertransmissionlineinKorea ·CompletedAnyangSCR(SouthwireContinuousRod)Plant1981 ·StartedproductionofFlameRetardantPlasticCablefornuclearpowerplant1982 ·Completed154kVPOFpowerlinereplacementfirsttimeintheworld1983 ·CompletedtheVCVextrahighvoltagepowercableplantinAnyang ·ProducedfoamskincommunicationcablefirsttimeinKorea ·ExportedOFpowercableturnkeyproject(Malaysia)

1980

·Developedthefirst400km/hhigh-speedelectriccarlineintheworld ·Launchednewproductsincludingbus-duct/heatingcable ·DevelopedandcommencedproductionofEcoGel-freeopticalcable ·Awardedtheworld’sbestproductatOPGWbytheMinistryofKnowledge

andEconomy2013 ·Startingthecommercialoperation500kVEHVcablesforthefirsttimein

Korea ·Developmentofcablesfortransmittingtraincontrolsignalsforthefirst

timeinKorea ·DevelopmentofslimUTPcablesforthefirsttimeinKorea ·Developmentofextremelylow-lossopticalfibersforthefirsttimeinKorea ·ReceivingagratitudemedalfromRussianFederationCorporation(FSK)

2010 ·Awarded82millionAUDcontractforaturnkeyprojectfromEnergyAustraliainAustralia

·EnlistedinDJSI(DowJonesSustainabilityIndex)Korea ·NewLeadership,establishmentofCEOsystemwithGwan-HoSohnand

Hee-JeonKang ·Awarded35millionUSDcontractforaturnkeyprojectfromReliance

InfrastructureLtd.inIndia2011 ·DangjinFactorybeganproductionofultrahighvoltagecables(May11,

132kV) ·CommunicationsdivisiontransferredtoTaihanFiberOptics ·Startedexportsof500kV-gradeultrahighvoltagecables(Korea’sfirst) ·CompletedDangjinFactoryconstructionandfacilitiestransfer,beganfull

operation ·SoldNovelisKoreasharesanddiscontinuedaluminumbusiness

involvement2012 ·QualifiedasthefirstKoreanvendorofECOcableintheJapanesemarket ·PassedthePQTestfor500kVextrahigh-voltagecableforthefirsttime

asaKoreanmanufacturer

2010

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CorporateHistory

Taihan Fiber Optics

TaihanFiberOpticsisauniqueopticalcommunicationexpertinKoreathathasaunifiedproductionsystemfromproductionofopticalfiberstoproductionofopticalcableproducts.

TheopticalfiberisproducedbyapplyingVAD(Vapor-phaseAxialDeposition),high-purityandlow-lossproductionindustrialtechniques,tosecurehighproductionefficiencyandsuperiorproductioncharacteristics.Especially,theindependentdevelopmentofZWPFopticalfibersbecameanopportunitytodemonstratetheaccumulatedtechnicalabilityofTaihanFiberOptics,whichisexertingallitseffortstocreatehighaddedvaluewiththedevelopmentandmass-productionofbending-reinforcedopticalfiber(Anywave-Curve)andlow-lossopticalfiber(Anywave-Fine),next-generationproductgroups.

Foropticalcables,TaihanFiberOpticstookovertheentireopticalcommunicationbusinessdepartmentfromTaihanElectricWireattheendof2011toestablishacompletesystemuptotheproductionandsaleofopticalcommunicationcablesalongwithopticalfibers.TaihanFiberOpticshasreinforceditsbusinesscompetitivenessthroughthereductionofcostsviaaparentsubsidiarymodelandthroughtheraisingofsalesandincreasedadministrationefficiency,andisexpandingtheopticalcablemarketintoAsia,theMiddleEast,NorthAmericaandSouthAmericaaswellasKoreathroughthisinitiativewww.tfo.co.kr

TEC & Co

TEC&Coproducesandsellscoppercommunicationcables.ThecompanyleadstheindustryinthecoppercommunicationcablefieldwithitslargestproductionfacilitiesandisthetopvenderintheUTP,RFcableandF/Scableaswellasrailwaycommunicationcablefields.

TEC&COisestablishingasecureclientbasewith100ormoredomesticandoverseasclientssuchasKT,SKT,LGU-PLUS,TE,PANDUIT,etc.,andiscreatingnewgrowthengines,suchasturn-keyorder-receiving,byenteringintotheintegratedwiringmaterialmarketrecently,etc.,andisovercomingexistingbusinessscopelimits,isdiversifyingitssalesnetwork,andisreinforcingitsorder-receivingcompetitiveness.www.tecnco.kr

daekyung Machinery & Engineering

Thecompanywasfoundedin1981asadesigner,manufacturerandsupplierofpetro-chemicalplantandenergy-relatedheatexchanger,heatrecoverysteamgeneratorwhichisneededforpressurevessel,storagetank,andpowergeneratingplant,andboilerfacilities.ThecompanyhasthreeplantsinUlsanandYeosuinKorea,aswellasinIndonesia.

Thecompanymaintainsaleadingpositionintheindustryandsupplies90%ofitspetrochemicalplantsalestooverseasmarkets.IntheHRSGandboilercomponentsdivision,thecompanysuppliestolarge-scaleprojectsinKoreaandoverseas.Itscompetitiveedgeisderivedfromitssuperiortechnologyandtrustacquiredfromover34yearsofexperienceintheindustry.www.dkme.com

TEC Construction

SubsidizedbyTaihanElectricWirein2007,TECConstructionisacomprehensiveconstructionengineeringcompanyspecializingincivilengineering,plants,residentialproperties,andoverseasconstruction.Basedonits50yearsofexperienceinlarge-scaleconstructionprojects,thecompanyisexpandingitsbusinesstoglobalmarkets.www.tecconst.com

Taihan Industrial System

TaihanIndustrialSystemfoundedin1971sellswirematerials,manufacturesspecialwires,andrunsaninfrastructureconstructionbusiness.Thecompanyhasextendedthebusinessscopebasedonitsexpertise,customer-orientedmanagement,andadvancedITtechnology.AstheybuiltthePyungtaekplantin2012toproducespecialwireslikeBus-ductneededforbulktransmission,specialcablesanddrumforcabledeliveryandstorage,thecompanyisexpectedtostrengthenitspositionasaspecializedmanufacturerbasedontheoutstandingproductioncapacityandwidesalesnetwork.Ininfrastructureconstruction,thecompanyproveditspowerbywinningthebidforinfrastructureconstruction(totalsalesof$35,700,000)inMali,togetherwithSamsungin2012.

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domesticAffiliates

Taihanfocusesonstrengtheningitscompetitiveedgeintheglobal

marketthroughefficientbusinessoperationsandcontinuousR&D

efforts.Thecompanyrespondstomarketchangeswithstrategiccost

controlmeasures,highproductivity,andtechnicalsuperiority.Maintaining

itstechnologyleadershipwithultrahighvoltagecables,communications

cablesandmaterials,theTaihanbrandthrivesintheglobalmarketas

acomprehensivesolutionsproviderintheindustriesofopticalfibers,

plants,communicationsandconstruction.

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Taihan USA

TaihanUSAwasestablishedin2000topromoteTaihan’ssalesandmarketingactivitiesinNorthAmerica.Thecompanybegansupplyingultrahighvoltageandmid-lowvoltageproductstopublicservicesandpowercompaniesinNortheasternstatesin2003,wonalarge-scaleultrahighvoltagepowerturnkeyprojectin2007,andisincreasingsalesintheITsegmentsinNorthAmerica.InFebruary2009,thecompanywonasix-yearlongtermcontracttosupplya69-345kVhighvoltagepowernetworkoftheNationalGrid,amajorpowerproviderintheeasternstates.Furthermore,Taihaniscarryingouta138kVcableprojecttoreplacethedecrepitoilfilledcablesofLADWP(LosAngelesDepartmentofWater&Power),thebiggestelectricpowerdepartmentinthewesternareaoftheU.S

Inaddition,forthreeyears,thecompanyhassupplied230kVcableandaccessoriestoSanDiegoGas&Electric,thelargestelectriccompanyintheWestCoast.Taihan’sstrategyistosecureamajorsupplierpositionintheNorthAmericanmarketbyfoundingbranchofficeintheWestCoastandenhancingmarketingchannels.

M-TEC

Establishedin2000asajointventurewithaSouthAfricancorporation,M-TEC(MaleselaTaihanElectricCable)isTaihan’sgatewaytotheAfricamarket.Thecompanyisamanufacturerofopticalcommunicationscablesandvarioustypesofpowercables,andhaspositionedastheindustry’slargest-scalecompanyinAfricawithannualproductionof100milliondollars

TheSouthAfricangovernmentrecentlyannouncedtheplantoinvest17.5billiondollarsinpowerplantandpowertransmissionandsupplytostabilizeelectricpowerdemand,aimingtocreate5millionjobsuntil2022.AstheAfricanelectricmarkethassteadilyextended,wewillincreasemarketsharethroughproductdiversificationofM-TECitemandawidersalesnetwork.www.m-tec.co.za

Taihan Sacom Cable Company

TaihanSacomCableCompany(TSC)wasestablishedin2005asajointventurewithSacom,thetopcommunicationscablesmanufacturerinVietnam.ThecompanyislocatedinasuburbofHoChiMinhCityandmanufacturesandsuppliespowerandcommunicationscablestoregionalmarkets.

WehaveextendedthedomesticTSCsalesnetworktoanationwidelevelandhaveenlargedtheexportnetworktoMiddleEastAsiaandAustraliafromSouthEastAsiaasmanyforeigncompanieshaveadvancedtothemarketandthefundamentalinfrastructureconstructionindustryhasbeensteadilyenlargedafterVietnameseeconomyhasreachedaphaseinitsrestorationfromtheglobalfinancialcrisisin2008.www.tsc.vn

GlobalAffiliates

Taihan’sstrategicfocusforgrowthisintheglobalmarket.Thecompany

enhanceditscompetitiveedgebyestablishingmanufacturingfacilities

foritscoresegment,electricwires,intheemergingmarketsofSouth

AfricaandVietnam.

Inaddition,Taihanisdoingitsbesttoadvanceintotheglobalmarket

basedonitscoreabilityintheelectricpowerfield

Intermsoftheglobaleconomyin2013,theeconomiesofadvancedcountriesshowedarecoverytrend,whiletheeconomiesofemergingcountriesgavecauseforconcernwithregardtoaslowdowningrowthratesandfinancialinstability.TheeconomyofEurope,wheretheeconomicrecessionhadbeenongoing,begantoshowsignsofrecoveryandeconomicexpansion,andtheeconomyofU.S.alsoshowedsignsofgeneralimprovement.However,thetaperingstrategyoftheU.S.government,theeconomicreformsandindustrialrestructuringpoliciesoftheChinesegovernment,andtheAbenomicsbeingimplementedinJapanhavecontinuedtoincreaseuncertaintyabouttheglobaleconomy.In2013,theglobaleconomicgrowthratewas3.0%,anincreasecomparedtothepreviousyear,butthegrowthrateofdevelopingcountrieswas4.7%,adecreasecomparedtothe5.1%inthepreviousyear.

In2013,theexportsofourcountryincreased2.6%comparedtothepreviousyearandrevealedafavorabletrendwithregardtoexportstoChinaandASEAN.WhileexportstoVietnamandChinaincreasedrapidly,exportstoHongKong,IndonesiaandJapandecreasedsignificantly,showingaclearpolarizationamongthedifferentregions,andexportstotheMiddleEast,amajorexporttargetcountryforelectricwires,alsodecreasedduetotheeconomicsanctionsonIranandunfavorablelocaleconomiccircumstanceswhileexportstoJapanwereweak.

Inthisdifficultexportenvironment,in2013,TaihanexperienceddecreasedrevenuesandsalesprofitscomparedtothepreviousyearduetoadropinthepriceofrawmaterialsandadelayinthesalesofEHVCableproducts,ordersforwhichhadalreadybeenreceived.However,Taihanachievedverygoodresultsintheorder-receivingofEHVcableproductsin2013byactivelyimprovingitsproductportfoliofocusedonhigh-profitproducts,strengtheningitsoverseassalesnetworkandpromotingtheexpansionofturn-keyprojectorder-receivinginconjunctionwithmaximizingfavorableexportspots,andisfocusingontheexpansionofprofitabilitybycontinuouslyoperatingcompany-widecostreductionmeasuressuchascostreduction,OEMabilitystrengthening,etc.followingonfromthepreviousyear.Inaddition,Taihanimproveditsfinancialstructuresignificantlythroughdebt-equityswapswithcreditors,andiscarryingoutvariousfinancialandbusinessrestructuringprojectscontinuously.

Organizationl Chart

Quality Management dept.

• Quality Assurance Team

Process Innovation dept. Internal Auditing dept.

Board of directorsSecretariat

CEO

Board of directors

• Strategic Marketing Dept.• HV Power cable & System sales Unit• HV Power cable & System sales Unit• Industrial cable Sales Dept.• Engineering & Construction Unit

Marketing & Sales division

• Cable Construction Dept.• Production Dept.• Research & Development Institute• Production Management Dept.

Production division

• Finance Dept.• Accounting Dept.• Strategy Planning Dept.• Asset Management Dept.

Restructuring H.Q

• HR Innovation Unit• Procurement Dept.• Legal Dept.• Public Relation & General Affair Dept..

Business Managementdivision

Reviewof Operation

The Middle East/AfricaTaihan’sOverseasSalesBusinessUnit I targetstheMiddleEastAsiawhere isoneof themajormarketsandAfrica,apotentialmarket.Inparticular,theMiddleEastisthemostimportantmarketwhichoccupiesmorethan60%inourexport.

Taihanhasincreaseditsorder-receivingresultsby215%in2013fromSaudiArabia,comparedtothepreviousyearbasedonthe380kVEHVprojects(about200km in2012andabout430km in2013).SaudiArabia iscontinuously increasing itsdemand forpowerdueitsrapidlyincreasingpopulationanditsindustrializationpolicy,sotheSEC(SaudiElectricityCompany)announcedthat itplansto investoverUSD100BIL in theestablishmentofpowerinfrastructuresover thenext10years.Demand is increasingannuallyataround8%,andorder-receiving for500kmayearbasedon380kV isexpectedtocontinueafter2014andsowillgreatlyhelptoexpandthesalesofTaihan.

Taihanhas receivedorders for2 turn-keyprojectsof220kV2500SQfromQatar.TheQatarmarket isaplacewherestrongcompetitors fromEurope,Japan,etc.,areactiveso thisorder-receivingachievementhasstrengthened thepositionofTaihanintheQatarmarket.Basedonthis,Taihanismakinganefforttoadvance intothe400kVclasscablemarket. Inaddition, inorderto increase thepower transmissionanddistributionequipmentduetotherapidincreaseinpopulationrecently,theQatarGeneral

Electricity&WaterCorporation(KAHRAMAA) is focusingon theexpansionofEHVpowercablessuchasplanningtoinvestalargeamount,reachingUSD10BIL(10billion)by2018,sothemarketisexpectedtoexpandrapidly.

U.A.E.ispromotingtheneworderswithrespecttomanyprojectsowingtotheeconomicrecoveryinDubaiarea,andAbuDhabiisplacingordersforthe220kVclassbasedontheresultsofordersfor the132kVclassnewpower transmissionanddistributionnetwork. Inaddition,Taihan isconstantly receivingorders fromOman,and is trying toactivelyadvance into thismarketwithaviewtoobtainingordersfor400kVundergroundlineprojectsfromOETC(OmanElectricityTransmissionCompany).

TheKuwaitarea isnotonlystriving to focuson thesuccessfulpromotionof the turn-keyprojects conducted so far, but isalsoactivelyproposingproducts thatwill lead to the increasedcompetitivenessofTaihansuchas275kVand400kV.Taihanhasreceivedorders for2projectsof400kVclassthroughdomesticconstructorsfromAlgeria,Africa.

Taihan isparticipating inbidsactivelybyacquiring informationthroughvariouschannelsbasedon itscontactsandpresencein theMiddleEast,and issecuring itscompetitivenesswith itssuperiortechnicalability.

Asia/OceaniaTaihan’sOverseasSalesBusinessUnit II focusesondiscoveringnew market of Asia and Oceania region, implementing anaggressivemarketingcampaign toexpandsalesnetwork.Ourstrategy is toobtain the requiredqualifications toenternewmarketsandtakeadvantageof thecompany’sstrength intermsofcompetitivecost,andultimately tomaintainamajorsupplierposition.

Since 2006, Taihan is participating in 132kV undergroundtransmission lineconstruction forAusgrid, the largestpowerprovider inAustralia,supplying70%of its132kVpurchases. In2013,TaihanElectricAustraliaworkson twoofhighprofitableprojects (132kV)at thesame timeandhasbeen famous fromcompetenceofoperationofprojectsandqualityofproductsbytheircustomers.Meanwhile,TEAmakesefforts todiscovernewcustomersandexpectssomesalesfromnewcustomersin2014.

Taihanhasbeencarryingoutprojects in Indiacontinuouslysince2010andestablished itself in themarketby receivingordersfor the220kVand400kVundergroundcableprojects in2011.In2013,Taihanexpanded its influence in the IndianmarketbyreceivingordersforanEHVundergroundcableprojectfromIndianElectricityCompaniessuchasAPTRANSCO,NHPC,etc.

This growth resulted fromsuccessful performance such as

power supply networks in Indianmarket continues tomakeTaihan’sinfluencereinforceinIndia.ThatiswhytheTaihanhasanadvantageforthefollowingprojectsinIndiainthefuture.In2013,Taihanhasbeen trying tomakeaprofitbydoingsalesactivityin Indiamarket.Asaresultof this,weareexpectingsignificantlyhighersalesin2014forthismarket.

Attheendof2013,TaihanestablishedalocalofficeinIndonesiatocarryouta150kV full turn-keyproject forPTPLN(Indonesianationalelectricitycompanies).ThepreviousIndonesiaofficewasoperatedfrom1989toearly2000aspartofeffortstogetinvolvedin theSoutheastAsianmarket.The forecastsare forconstantdemand forprojects in Indonesiadueto itsweak infrastructureandconstantlyincreasingdemandforpowerduetoitsannual6%increaseineconomicgrowth.

Taihanhasbeendoing lotsofprojects inSingaporesince theBranchOfficewasestablished in1988.MostofprojectsareFullTurn-keyof230kVand66kVgradeprojectwithSPPowerAssetsourmainclient.AlsowehavemanyexperiencesofsupplyingMVandLVcablesoraccessories toEPCcompanies (ABB,Alstometc). In2013,Taihanreceivedorders for230kVprojects,etc.aswellas66kV.Theelectricitymarket inSingaporecontinues togrowsoweexpectthatwe’reavailabletodomanyprojectsmoreintheyearstocome.

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In 2013, Taihan’s overseas sales from power lines and insulated wires was 566.4 billion won, a little increase compared to 557.8 billion won in 2012, and order-receiving for EHV cables in particular was the highest ever recorded. This is because the company has reinforced its overseas sales organizations in different ways such as reorganizing sales organizations focused on new overseas markets actively since 2012.

Entering into 2013, the advanced economies of the U.S. and Europe showed slight signs of recovery and investment and business has recovered somewhat in emerging countries so that investment in infrastructures has strengthened. This basic condition is forecasted to continue in 2014 as well, so Taihan is reinforcing its sales capacity in Russia, America and Europe with good potential for future market growth in conjunction with active order-receiving from the Middle East, Asia and Oceania, through which a gradual increase in sales is expected.

Power Cable-Global

Europe/Russia/CIS/AmericaIn2013, theoverseassales team3wasactive inpromotingincreasedorder-receiving through the reinforcementof salesnetworks.Theexpansionoforder-receiving fromtheAmericanmarket, themaintenanceof itsposition inRussia/CIS,and theexpansionofsalesnetworks in theWesternEuropeanmarkets,etc. are the fruitsof theseefforts.Thesemarketshavehighpotentialdespitedifficultiesentering the fielddue toadvancedenterprisesalreadybeingestablished there.Abetter result isexpectedinthefutureifcostcompetitivenessismaintainedbasedon theexperienceand technologyaccumulated in theMiddleEast,Oceania,etc.

An increase indemandforelectricwires intheAmericanmarketisexpectedduetotherecenteconomicrecoverythereandactiveinvestment in infrastructuresby thegovernment.Especially,demand forelectricwires inAmerica is increasingdue to therecentlyeconomic recovery,anddemand isexpected togrow9.4%ayearonaverage in theelectricwiremarketby2018.Taihan is constantly supplyingand installingEHVcables inwesternlocationssuchasSanDiego,LA,etc.Inaddition,Taihanis forecasted toparticipate inmanybidsandcarryoutEHVprojectsactivelyintheeasternandwesternareasin2014.

TheRussianmarketsituationhasbeentough for thepastyearduetotheeconomicrecessionandthecontractionofinvestment

in infrastructuresby thegovernment.However,TaihanElectricWireobtainedanorderfor500kVprojectsforthefirsttimeintheCISareaeven in thesedifficultcircumstances. In2014,TaihanElectricWireisgoingtoexpanditssalesnetworktotheCISareanationsbasedontheRussian500kVcablemarketinwhichithasthecompanyhasmadegoodprogress.

TheWesternEuropeanandMiddle/SouthAmericanmarkets,whichhadnotbeenfocusedoninthepast,havebeenpromotedinorder toestablishsalesnetworkswithmajorcustomers,andfavorableresultshavebeenobtained.Theseresultsareexpectedtobeconnectedtorealorder-receivingin2014.

Civilian demandTaihan’sales in thedomesticciviliandemandmarket forpowercablesdecreaseda littlecomparedto2012.This isbecauseofacontinuousdecrease inciviliandemand in theKoreanmarketand thedeepeningofcompetition in thedomesticelectricwireindustry. In order to solve thismarket situation, Taihanhasattempteddiversificationofsales in industrialcablesaswellaselectriccar linecables inorder to improveprofitability,andhasdevelopedadditionalnewproductssuchassubmarinecables,flame-retardantwaterproofcables,etc.

NeedsforMV/LVareexpectedtodecreaseowingtothesluggishrealestatemarket,howevertheoverallmarketisexpectedtostayatasimilar levelwiththepreviousyear,onthestrengthofsemi-conduct,petro-chemical,andsteelmarkets.

Government demand In2013,Taihan’saleswithrespecttopower linesandinsulatedwiresorderedbypublicinstitutionsdecreasedalittlecomparedto2012,butremainedrelativelystable.Public institutions increasedorders due to continuous investment in power generationequipmentasaresultofshortagesindomesticpowersupply,butthiscausedincreasedcompetitionwithlocalenterprisesduetoashortageinproductsthatresultedfromdelaysinorderingincaseofthedomesticEPCoverseasprojects.

In 2013, Taihan achieved sales of 11.6 bi l l ion won withdifferentiatedproducts,whichrepresentsapositivedevelopmentin termsofMV/LVprofit structure. Taihanplans to increaseits salesscale fordifferentiatedproducts throughcontinuousinvestmentand technicaldevelopment. Inaddition,at theendof theyear, itsecuredordersworth50billionwon inoverseasprojects fromdomesticEPC tosecure thebasis forgrowth insalesin2014.

Demandbypublicinstitutionsisexpectedtoincreasein2014asaresultofcontinuousinvestmentinpowergenerationequipmentand installationof newpower transmission anddistributionequipment,but thescaleof thewholemarket isexpected todecreasedue tounfavorableeconomiccircumstances,and foroverseasmarkets,delays inorderingwith regard toprojects inMiddleEastnationsispredicted.

WithregardtodomesticEHVAcablesales in2014,anorder foranundergroundlineprojectthatwasdelayedin2013isexpected,anda6.8%growthinsalesisforecasted.

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In 2013, Taihan’s sales in the domestic area for power lines and insulated wires was 545.3 billion won, a small decrease compared to 2012.

Power Cable-domestic

EHVAccessorySalesTeamwasestablished inJanuary,2013tostartanewbusinessofaccessorysales.TaihanElectricWirehasbeensupplyingEHVcablesandaccessoriestoKEPCOandallover theworldsince thestartofmarketingHVXLPEcablesin1984,but themarket tendencytosupply thecablesandtheaccessoriesseparatelyhasbeengrowingduetotheappearanceof localcablemanufacturersand theChinesemanufacturerswhocanoffer relatively lowerprice.TaihanElectricWire’sEHVAccessorySalesTeamhasstartedtomarketEHVaccessoriestomeettheworldmarketneeds.

In the firstyearof itsestablishmentHVAccessorySalesTeamhaspaved itswaytosuccessbyreachingthenewmarketsandfindingthebuyers,anditsprimarygoalin2014istocontinuethesuccess.

Taihan is engaged in the production and sales business ofcommunicationcablesandtheconstructionbusinessofelectriccommunicationsystems.Especially, ithasthe largestproductionfacilities inKorea in theabovementionedcommunicationcablefield,andoccupies toppositionasvendor in thedomesticandoverseasarea in thedatacable(UTP,STP),RFcable,F/Scableandrailroadspecialcablefields.

Taihanisacquiringastableclientbasefromamong100domesticandoverseasclientssuchasmajordomesticcommunicationcompanies, such as KT, SKT and LG U+, global leadingcommunicationcompanies,SCS(StructuredCablingSystem),distributioncompanies,etc.,andisdiversifyingitssalesnetworksand reinforcing itsorder-receivingcompetitivenessbysecuringnewgrowthenginessuchas turn-keyorder-receiving,etc.andovercominglimitsinexistingbusinessfieldsthroughadvancementinto the integratedwiringmaterialmarketandestablishing linkswiththeelectriccommunicationconstructionbusiness.

As theeconomic recessioncontinues,growth indomesticandoverseasmarkets is stillweak,but the infrastructuremarketinsomeadvancedcountriessuchasNorthAmerica,WesternEurope,etc.isrecoveringlittlebylittle,andthescaleofmarketsisforecastedtoincreasecontinuously.

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Communication CableEHV Accessory

The revenueandsalesprofitof theE&Cdivisionofdecreasedcompared to thepreviousyear.This isbecause theprofit fromoverseasprojectsdeclinedduetoshrinkageinoverseasdomesticmarketsand the fiercecompetition inorder-receivingbetweencompetitorsbecausetheamountofordersfromKEPCOandthecivilianindustrysectordecreased.

However, the E&C division, thanks to its competence inconstruction, is continuously generating sales to advancedcountriessuchasAustralia,NewZealand,Singapore,etc.,andisexpanding itsmarketstoU.S.,Russia, theMiddleEast, India,SoutheasternAsia,CentralandSouthAmerica,etc.where thereplacementofelectricpowerequipment isongoingandnewinvestmentsarestrong.Recently, theE&CdivisionhasbeenreceivingordersforlargeEHVcableprojectsonanongoingbasisfromSaudiArabia,Qatar,U.S.,etc.,andisadvancingintotheU.S.marketsignificantly,soadditionalorder-receiving isexpected inthefutureaswell.

TheEHVcable isan itemthatyieldsthehighestbusinessprofitrateamong theelectricwireproductsdue to thehigh leveloftechnologyinvolved.It isanticipatedthattheE&Cdivisionwillbeabletorecoverintermsofrevenueandsalesprofitin2014basedonMENAregionssuchasSaudiArabia,Qatar,Kuwait,etc.wherethedemand forsuper-high-voltagecableshasbeen increasingrecently.

OurE&Cdivision is focusingonadvancement intothe300kVorhigherclassmarket,ahighadded-valueproductgroup,fromthe100~200kVmarketwherecompetition is increasing intheglobalmarket.Especially,ourE&CdivisionisrecognizedforitstechnicalabilityaftercarryingoutEHVpowerturn-keyprojectssuccessfullyinadvancedcountriessuchasAustralia,NewZealand,Singapore,etc.Giventhefactthatthis isanareawhereonlyEuropeanandJapaneseenterprisesoperated in thepast, itcanbesaid thatrecentresultshavebeenverysignificant.

In2014,ourE&Cdivisionwillbecontinuingwith the technicalupgradingofsubmarinecablesandoverhead lineconstructioncapabilitiesaswellaswithEHVcableconstructioncapabilitiesbasedon favorable factorssuchas thedemand for replacingcables in Europe and North America, investment in powerinfrastructureandurbandevelopmentintheMiddleEastarea,andinvestment in infrastructures indevelopingcountries,andwillbeextendingitsrevenueandsalesprofitbasedonthis.

Engineering & Construction division

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In2013,theR&Dcenterestablishedamorestableorganizationalstructure through theenhancementofsupport for researchbydesignating theR&Rof researchanddevelopmentclearlywithmanagingdirectorGi-SeonYoo,whowasCEOofTaihanFiberOptics, takingofficeas theheadofR&Dcenter.Through thisinitiative,newproductandtechnologydevelopmentcapability isstrengthenedandbetteralignedwithdemandfrommarkets.

Following on from the previous year, our R&D center hascontributed tosalesexpansionandcost reductionbyselectingtechnical innovationprojectsinvariousfieldstoenhanceproductdevelopmentand technical ability andbyachieving itsgoalssuccessfully. Inaddition,ourR&Dcenter raised itspublicprofileandstanding throughtheexecutionofmedium-and long-termnationalprojectsand increasedresearchmanpowercapacitybyenhancingthedevelopmentabilityofR&Dcenter.

OurR&Dcenterhasachievedapositionof technicalsuperiorityby finishingthedevelopmentofcontactwires for400km/hclassnext-generationexpress railways jointlywithKoreaRailroadResearchInstituteandbysupplyingthemtothetest-bedsection(73km)ofHonamExpressRailway in2013,andwillbecarryingoutaverificationtestforthetractionlinesystemin2014.

Inaddition,ourR&DcenterhasestablishedapartnershipwithKoreaRailroadResearch Institute foradvancing intooverseas

marketsthroughasigningceremonyregardingthetechnologyfor400km/hclasscontactwires.

AsKEPCOannouncedanimprovementplanforanundergroundpower transmission linecompletion test in2008,amethod toverifyconstructionqualityapart fromthepowersystembecamenecessary. Togetherwith this, aplan to solve the structuralproblemsof indoorsubstation facilities (difficulty insecuringtheconnectionand insulationwith testersdue to thenarrow innerspace,etc.)hasbecomenecessary. Inorder tosolve this,ourcompanyhasstarted todevelopan insulationconnector fortestingtheACwithstandvoltageandhascompletedittosupplyproductssatisfyingtherequirementsofKEPCOandsecurenewproductitemsthroughthis.

Aftersucceeding in thedevelopmentofcompositepushingofpolymermaterial by improving itsquake resistance, stabilityand light-weight in2012,a firstamongdomesticelectricwirecompanies,ourR&Dcenterhasbeen focusingon raising thesafetyandreliabilityofproductsbypromotingthedevelopmentof 145~500kVclass high-voltageproductsmeeting variousconditionsrequiredbytheglobalmarketcontinuouslysince2013.

R&d

OurR&Dcenterhassucceeded in thedevelopmentofvariousproducts such as spring cleats for CWS cables that werepreviously dependent on American products, plug-in typeEB-G thathave increasedconvenienceandstability incableconstruction, and link boxes that are price competitive, bysatisfying the technicalspecificationsofoverseasmarkets,andhasrealizedtechnicaldevelopmentsuchaspairconductdesignandproduction,qualitycontrolcriteriaestablishment,etc.

OurR&DcenterhascompletedthedevelopmentofDRSalgorismsthatcansupportmultipleDTSsaccordingtotherequirementsofpowermarketstoincreasethelifespanoftransmissionlinesunderuse to themaximumanduse itsperformanceto themaximumbyforecastingtheresiduallifespanofasuper-high-voltagepowersystemand thepossibilityofaccidents.This isa technologythat involvesextendingandcompositing the technologyofapowertransmissiontotal-monitoringsystem(TMS),securingtheanalysis technology regarding the thermalanddynamicpowertransmissioncapacityofcable lines,so thatasolutioncanbeprovided toenable thestableuseofpowernetworks for thebenefitofcustomers.

Inaddition,ourR&Dcenter iscontinuouslycarryingoutresearchinitiatives to develop and commercialize various kinds ofsubmarinecablesand junctionboxesandsuper-high-voltageoverhead/undergroundcablesbyapplyingcutting-edgematerialtechnology.

SustainabilityManagement

Copper Rod & wire

Thesales volume in thematerialbusiness field in2013was73,000MT,up23%comparedto2012.Thisisaresultofalargeincrease in thequantityofoverseasexportprojectsdue toanincreaseinthequantityofpurchasingfromSouthChinawhichisoneof themajoroverseasexportmarkets,despiteadecreasein investment inthenational infrastructure industryasaresultofadrop in internationalcopperpricesand theglobaleconomicrecessionthatisparticularlysevereinEurope.

With regard to revenue for thematerialbusinesssector, thedomesticmarkethasstrengtheneda littlecomparedto lastyear,andtheoverseasmarkethasreboundedsomewhat in termsofthequantityofoverseasexportprojectscomparedtothepreviousyearduetoa resumptionofcontractsbeingsignedwithSouthChina.

However, thesalesofcopper, rawmaterial formagnetwirehassomewhatdecreasedboth inquantityandamount.Thecoppersalesseemtobesluggishasaluminumdemandhas increasedand the supply to thedomestichomeelectronic appliancesmanufacturers and the major automobile companies hasdecreased.Theproportionsofdomesticandoverseassales inthematerialsdivision in2013were60%and40%respectively.65%of theoverseassalesweresuppliedtoChina,andtheremaining35%tothePhilippines,Singapore,MalaysiaandIndia.

Weaggressively launch toobtainorder inMiddleEast,Asia,andOceaniawhere ithasanadvantageoverothersaswellasstrengthenssalescapacity inRussia,Americas, andEuropewithgreatmarketpotentialexpectinggradualandsustainablegrowthinsales.Materialmarketsaimstoexpandand/ormaintainsalesby increasing investment inbasic industrieson the roadto recoveryand targetingnichemarketsofMiddleEastwithabundantoilmoney,SoutheastAsiawith relatively reasonableprice,andseveralcountriesthatconcludedFTAwithKorea.Also,tofindamarketinChinaisanotherplantoexpandbusiness.

With these trends in mind, Taihan will focus on long-termcontractswithrawcoppersupplierstomaintainastablesupply,andenhancespot-ordersalesactivities.

Wewill focus tomaintain stablegrowthofmagnetwireandenhancecompetitivenessof low-profitmaterialsby improvingtechnical skills for main products and creating high valueproducts.Inaddition,wewillgraduallyincreasethemarketshareinthelimiteddomesticmarket.

28TransparentManagement

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34SafeandHealthyWorkingPlace

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Transparent Management

Onthebasisofadvancedcorporategovernancebuiltonamanagementspecialistsystemandwithaboardofdirectorsoperating independently,Taihan is realizing transparentmanagementandprotectingtherightsofshareholdersandenhancingcorporatevalues.

Taihanhasbeenactivelyaspiring toamanagementsystemandworkprocesses thatcorrespond toglobalstandards.Asa result, thecompanyhasbeengreatly improvingitsmanagementefficiencyandtransparency throughchangeand innovation.This is thesourceofitscompetitivenessandmomentumtobecomingagloballeadingcompanyandis thestrong foundation for futurestainablemanagement.Taihan isalsostrengtheningthe independenceandexpertiseof theboardofdirectorsandauditors.Wearealsoimplementinga responsiblemanagementsystem that isoperatedbyamanagementspecialistssystem.AnadvancedworksystembasedonERPandan internalcontrolsystemhavebeenestablishedtosecureworkefficiencyandtransparency.

ShareholdersThetotalnumberofstocks issuedbyourcompany is196,634,401, including44,320,000convertiblepreferredstockswithoutvotingrights,ofwhich152,314,401equitieswithvotingrightsare listedontheKoreaExchangeandaresubject totransactions.Asof theendofDecember2013,theshareholdersofTaihan includedTaihanFiberOptics (12.73%stake),thebiggestshareholder,and importantdomesticand foreign financial institutionsandinvestors.TaihanshareholdersincludemajorcorporationsandinvestorsinKoreaandothercountries.Thecompanyholdsperiodicandnon-periodicshareholdermeetingstoreportonthestatusofoperationandmakeimportantdecisionsbasedonshareholders’opinions.Inaddition,asapartof thecompany’spolicytoensureshareholderrightsandprovidebestvalue,the IRDepartmentactsastheliaisonbetweenthemanagementandshareholdersandensuresthatallopinionsareheardandreflected inthecompany’sdecisionmakingregardingbusinessoperations.

Independent operation of board of directorsTaihanboardofdirectors isoperated independently toensure the transparencyof thecompany’smanagement.AsofDecember2013,BODconsistsof fourmembers, includingthree (75%) fromoutsidethecompany.Taihandirectorsprovideexpertopinionstosupportthecompany’seffectivemanagementandultimately increasethecorporatevalue. In2013,BODmeetingswereconductedasspecifiedinthecompany’sarticlesofincorporation,wheredirectors reportedonmajor issuesanddiscussedrelatedmatters inorder tomakesounddecisions.ThecompanyholdsBODmeetingsonceeverymonthtohelpestablishasystemoftransparentandresponsiblemanagement.

Audit committeeBasedonthecompany’sarticleof incorporation (section25-1),TaihanAuditCommitteeevaluatesfinancialmanagementsystemstoensurefairandtransparentbusinessoperation.Tomaintain the independencyof theAuditCommittee,allof itsmembers (three)arefromoutsidethecompany.TheAuditCommitteemettoevaluatedecisionsmadebythecompany’sexecutives,makedecisionsasspecifiedbythe law(includingselectionof theCommitteemembers),andconductotherfunctionsdelegatedbyBOD.

Public disclosure policy Taihanholdsperiodic IR (investorrelations)sessionstodisclose informationregarding itsbusinessperformanceandcommunicate its futurestrategy.Thesessionsareopen toindustryanalysts, fundmanagers, themedia,and investors.Taihan’s IRanddisclosurepolicy isgearedtowards investors inNewYork,London,Singapore,andHongKong,aswellas inKorea.Allpublicdisclosure information isavailable fromthecompanywebsite(www.taihan.com)and through theFSS (FinancialSupervisoryService)DARTsystem(englishdart.fss.or.kr).Taihanalsoenforcesapolicyofopencommunicationwithin thecompany, topromote communication and value sharing amongemployees as thefoundationof thecompany’sgrowth.Thesystem includesbulletinboards,newsletters,anddiscussion forumsonthecompanywebsite,wherethemanagementcommunicatescompany vision, CEO messages, and important information regarding businessperformanceandmanagementstatus,andemployeesbenefit fromdiscussionsregardingvarious issues.ThispolicyprovidesaplatformofopencommunicationandpromotesTaihan’scorporatecultureoftrustandmutualgrowth.

Taihan frequentlymeetswith investors,analystsand fundmanagers (over200sessionsperyear) to identify theirneedsandprovideanswerstotheirquestions.All issuesraisedduringthesesessionsandmajorcontact informationarefollowedthroughon infollow-upmeetingsorviae-mails.

Major financialmattersand IRdataofourcompanyarepostedthroughthecontinuousmanagementofourhomepages,whichhelpgeneralandinstitutionalinvestorsunderstandourcompanybyenablingthemtocheckstockinformationInaddition,atourofDangjinFactoryisavailableforinvestorsuponrequest.IncludingultrahighvoltageproductionlinesandVCVultrahighvoltagetower,thetourprovidesinvestorswithanopportunitytounderstandTaihan’sbusinessandacquirein-depthinformationthatisnotavailablethroughregularIRmeetings.

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PEOPlE

employeesthroughthe in-househomepagestoenablethemtounderstandeachother’sworkandeventuallyestablishapoolofin-houseknowledge.

Corporate culture of win-win partnershipTaihan’slaborandmanagementhaveestablishedawin-winpartnershipculture,collectivelyovercomingcrises.Asawaytoprepare fortherapidagingof thedomestic labormarket, theretirementagewasextendedonwidebasis from57to61over themostrecentseveralyears.Throughthisextensionoftheretirementage,thecompanyhasretaineditspoolofprofessionalandtechnologicallyskilledworkerswhileemployeescan remain instableemployment.Thisrelates toourwin-winmanagementstrategiesandsuch initiativeshaveaprofoundandpositiveeffecton improvingproductivityandraisingproductqualitycontrol.Taihanhasbeensecuring itscompetitivenessontheglobalstagewithout labordisputesforthepast30yearsbasedonahealthylabor-managementculture.

Communication between the company and the employeesWiththeaimofchangingtheorganizationalcultureofthecompany,employeesmakeeveryeffort toradiateapositiveenergythroughout theorganization.ThroughtheJuniorBoardthatiscomposedofyoungworkersreferredtoasthe‘HappyVirus’,thefreeexpressionofopinionsandparticipationinthecompany’spoliciesarebeingencouraged.Thisenablestheemployeestohaveprideintheirwork,havetrustintheorganizationasamember,proposevarious ideastoraisetheirworkefficiency,andseetheiropinionsreflected inpolicies. Inaddition, thisnotonlyraisesthe individualworksatisfaction levelofemployees,butalsocontributestoestablishingandpromotingavigorousorganizationalatmosphere.

TaihanElectricWireseekstoestablishtherightorganizationalandworkenvironmentsothatitsemployeescanachievethevisionandmissionofthecompanythroughtheirtalentsandefforts.ThepeopleofTaihanareglobaltalentswhoarespearheadingcontinuousinnovationandcreatingcustomervaluebasedon“trust,vigorand learning”, thecompany’scorevalues.Taihannotonlydevelopsandpromotesstrongbondsofaffectionandloyaltyamongitsemployeesbysettinggoodexamples,butalsopromotesthemanagerialphilosophyandcorevaluesofthecompanytostrengthentheintegrityofemployees.

Securing excellent new talents through strategic recruitingTaihan iscontinuouslysecuringtherightpeoplewhosharethevaluesofthecompanysothat itsvisionandmanagerialgoalscanbeachieved.Taihanseeks tosecurepotentialtalented individualsthroughadiverserangeofrecruitmentmethodssuchasSNS,blogs,etc.,butalsoselectsexcellentnaturalscienceandengineeringcolleges inmetropolitanand localareasandconducts focusedrecruitingactivities there.Thesecuredtalentsareevaluatedfor theirability toadapttotheorganizationandtoperformbasicworkthroughOJT(OntheJobTraining) for3monthsduringan internperiod.After finishingthe interncourse,onlythosewhowereevaluatedtobeexcellentareadoptedasregularemployeesandcultivatedastalentswhowillbepartof the futureofTaihanthroughasystematizededucationsystem.

Cultivating talent with global competitivenessTosupportthecompany’sglobalmarketstrategyandgrowtobeagloballeadingcompany,Taihanfocusesondevelopingtalented individualswithglobalcompetitiveness.GlobalBizSkillprogram,a long-termcoursedesignedtoprovidetrainingonthemindsetandskillsrequiredtopromoteTaihan’stechnologyandproducts inglobalmarkets, isoffered intheEnglish languagetohelpparticipantsto learnaboutglobalculturesandproperbusinessmanners,anddevelopskillsofcommunicationandnegotiation.

Growth of individuals and organizations through CoP(Community of Practice) Taihanisorganizesandpromotesteamunitsinsuchawaysothatindividualscandeveloptheirworkskillsandorganizationscangrow throughendlesspractice.Each individualprepareshis/herowndevelopmentplan,selectsanarea fordevelopment in the futurethroughmeetingsbetweendepartmentmembersandindependentseminarsarealsoheld.Inaddition,eachindividualparticipatesinexternaleducationprogramsandoutsideexpertsareinvitedtocomeandtalkinordertoincreasethepoolofknowledge.

Throughagatheringof all departmentmembersonceaweekbetter resultscanbeachieved throughcommunicationandexchange.These resultsaresharedbyall the

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Social Contribution

Electricity class for juniorWeheldfourteenElectricityclassesforJuniorsince2013.Theevent inwhichstaffs fromTaihantakeapartasateacher is to teachelementaryschoolstudents inDangjinaboutgeneralscienceknowledgeandtheelectricityprinciples.

Dangjin coast environment purification LastMarch, thestaffmembersconducted ‘coastenvironmentpurification’activities tomakethecoastcleanforvisitorstotheDangjincoastasspringapproached.ThisactivityisaneventthatwascarriedouttogetherwithDangjinCountyasapartoflocalsocialserviceactivitiesengagedinbyTaihan,and20ormorestaffmembersofDangjinfactoryofTaihanElectricWireparticipated in it.Taihanhasbeenconstantlyengaged inefforts to improveandprotecttheenvironmentandit isalwaysdeliberatingonhowitcanbestcontributetolocalcommunitiessinceitwasestablished.

Blood donation service activityTaihanconducteda ‘blooddonationcampaign for love’ inNovember2013topromoteitsaltruisticeffortsandfulfill itsresponsibilitiesasasocialenterprise.TheblooddonationexercisecarriedoutbytheemployeesispartofanefforttoincreasethesupplyofbloodandhelpdisadvantagedsectionsofthecommunitywhocannotreceivemedicalbenefitsbydonatingthecollectedblooddonorcardstotheKoreaRedCross.Taihanhasaplantoextendthisprograminthefutureanddoitsbesttoengageinotheraltruisticendeavors.

TaihanElectricWireconductssocialcontributionactivitiesbasedontheparticipationofallemployeesundertheslogan:“Workingtogethertocreateahappierworld.”Eachemployeeisencouragedtoparticipateinatleastoneactivityofcommunityserviceeachyear,toservetheunderprivilegedandexperiencethejoyofsharing.

Taihanwillbecontinuing itssocialcontributionactivities inorder toprovidehappinesstomorepeopleinvariousfieldssuchaswelfare,education,culture,etc.inthefuture.

Social contributions in 2013Employeevolunteeractivities:Let’sART(2sessions),ResidentialenvironmentimprovementservicefortheRemarriedhandicapped(1times),Picnictozoowithhandicappedchildren(once),ElectricityclassforJunior(14times),CleanserviceforDangjinSilchiFestival(once),andBlooddonation(frequently)

Volunteer activities of executives and employeesLet’s ARTLet’sART programprovideschildrenof low-income familieswithanopportunity toparticipateinculturalactivities.WithTaihanemployeesvolunteeringasstaffandchaperons,theparticipatingchildrenenjoya“culturalouting”day.Taihanengaged invariousculturalprogramssuchas theater,musical,andexhibitionevents,etc.withchildrenatthe2 localstudyroomsoveratotalof2times inconnectionwiththeAnyangCityLocalChildrenCenterStudyRoomAssociationin2013.

Taihan going together with the handicapped Taihanengaged ina ‘residenceenvironment improvementservice for residentdisabledpersons’ and a ‘zoo trip service for disabled children’ as a part of programs fordisadvantagedneighborsinoursocietytogetherwiththeSeobuSyntheticWelfareCenterforDisabledPersonsoveratotalof4timesin2013.

Theexecutivesandthestaffsvisitedthehandicappedpeople’shousesandhelpedthemliveinmorepleasantresidentialenvironmentsbycleaningofftheirhousesandrepairingoldfacilities.Forthehandicappedchildrenwhohaveadifficultytogooutbythemselves,theybecameone-dayparents.Asseenintheactivities,Taihanconsidersandpracticesthewaytoimprovethelifequalityofthepeopleinneedaroundusandshowstheemployeeswhatwecansharewiththem.

Educatio

n

Welfare

Art &

Culture

Workingtogetherto createa happier

world

SupportforfosteringtalentSupportforadvancingScience&TechnologyInsongCultureFoundation

Acompanycoexistingwithsociety-VolunteerActivityofEmployees-CorporateDonations

DevelopingArtsandCultureExpandingtheArtsandCulturecommunity

• Plan : EstablishmentofanelectricalconnectionwiththemanagementplantoachievethesetgoalsandimproveresultscontinuouslyaccordingtotheESHMissionbybusinessplaces

• do : Implementationandaccomplishmentfocusedontheindividualsite,andspecificsystemactivity

• Check :Improvementactivityandprocessevaluationthroughaquantitativeevaluationmethodanditsownevaluationindices

• Action :Focusedmanagementtopromotethebestperformanceinrelationtoallactivities

ESH integrated management system

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Safe and Healthy working Place

Safety and health management activity

Convening of an occupation safety and health committeeTaihanisconveningandoperatinganoccupationsafetyandhealthcommitteecomposedofanequalnumberoflaborandmanagementmembersthatmeetseveryquartertodiscusshowtoraiseawarenessaboutsafetyandhealthissuesamongworkersandhowtoobservetheoptimalworkenvironmentandadheretooccupationsafetyandhealthregulations.

Taihanabidesbythecommittee’sagreementsandoccupationsafetyregulationsbyimplementingthemattersreviewed,decidedordeterminedbythecommittee,and isconductingsafetyandhealthactivitiesthatallemployeesmustparticipateinordertoeliminateriskfactorsandestablishrelevantmeasurestogetherwithlaborandmanagementtopromotesiteimprovementactions,healthcheckupsandworkenvironmentevaluationstandards,etc.

Execution of accident-free campaignsTaihanisconductingaccident-freecampaignsonceahalf-yearjointlywiththeenvironmentalsafetyandqualitymanagementcommitteemembersofthe laboruniontoraisethesafetyawarenessamongworkers.Taihaniscontinuouslyenhancingthelevelofsafetyawarenessbyencouragingalltheemployeestoparticipateinawiderangeofsafetyrelatedactivities.Inaddition,Taihan isconductinghealthcheckups todetectandadviseemployeesonoccupationaldiseases,and frequentlydistributeshealth informationonhowtopreventaccidentsandpromotehealththroughin-housebulletinboardsande-mails.

Safety and health management system TaihanElectricWirehasestablishedand isoperatingasafetyandhealthmanagementsystembasedonitsmanagerialphilosophyofrespectinghumansandpromotingitssafetyandhealthmanagementpolicies.Eachindividualemployeeismakinganefforttoestablishaworkplacewithoutaccidentsandpromotingahappyhomeenvironmentbydiligentlyandactivelyadheringtosafetyandhealthregulationsanddirectives.Taihan is introducingandoperatinganenvironment/safety/healthmanagementdirectives(ESH)suchasISO-14001&OHSAS-18001aswellasPSM(ProcessSafetyManagement)toreflect,continuouslyimproveandmanagesafetyandhealthrelatedmatterssuchasriskevaluation,educationandtraining,safetychecks,emergencyresponses,etc. throughouttheentireprocessofmanagement.

RiskControl and Prevention

RiskEvaluation

and Control

CapabilityManagement

ProcessManagement

Evaluation andImprovement

AchievementManagement

Follow-upManagement

PartnersManagement

RegulationControl

Informationand

Communication

PracticePlanning

EvaluationImprovement

Safety and health vision and goal, and its promotion direction

Vision Pursuitofeco-friendly,human-respectingenterpriseactivities throughresourcemanagementaswell asachievingcustomersatisfactionbyprovidingproductsandserviceswithoutdefects thatcanbeusedbycustomersinacarefreemanner

Goal Promotionofsafetyandhealthactivitiestoenhancehappiness

direction of promotion 1. Promotionof improvementactivities for thesafedevelopmentandproductionofproducts

2. Settingandoperationofaquantifiedgoal3. Observationofrelatedlawsandotherrequirements4. Promotionofcontinuous improvementandcontaminationprevention

activities5. Recyclingandreductionintheuseofresources

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Risk reduction activity

Specificgoal

Criterion Management goal

Results in 2013

Achievement level(%)

Remark

Establishmentandexecutionofa3classimprovementplan

3riskevaluationclasses

34cases 34cases 100% Removalandimprovementofsafetyaccidentoccurrencefactorsduetounsafeactions/conditionsImprovementof

unsafefactorsatthesite

Removalandimprovementofriskfactors

200cases 210cases 105%

Enhancement of employees’ healthTaihanconductshealthcheckupsforalltheemployeeseveryyeartomanageandpromoteemployees’healthonacontinuousbasis,andpreventsdiseases fromworseningbyperformingperiodictracingandtreatmentforemployeeswhowerediagnosed.Inaddition,Taihan recognizes thevalueofemployees’healthbypromotinghealthmanagement,healthenhancementandoccupationalsanitationcontrolbasedontheevaluationofworkenvironments.

Strengthening emergency response abilityTaihan isstrivingtosecuresafetyat theworkplacebyparticipating insafetyandhealthactivities actively and throughconducting regular trainingexercises toprevent theoccurrenceofemergencysituationsasaresultofnaturaldisasters,firesorexplosions,andseekstoremovepotentialcausespromptlyandminimizetheeffectonenvironmentalsafetyandhealth.

Accident-freecampaignoflaborandmanagement

Jointenvironmentalsafetycheckoflaborandmanagement

HealthcheckupforemployeesWorkenvironmentmeasurement

Localventilationfunctioncheck Consultationwiththosewhohavebeendiagnosed

Healthpromotionadvertisingcampaign Consultationwithemployeesformedicaltreatment

In-house health management activity

Training to enhance emergency response ability

Execution of joint environmental safety checksTaihanispromotingaccident-freeworkplacesbyconductingenvironmentalsafetychecksat thesitesperiodically jointlywith theenvironmental safetyandqualitymanagementcommitteemembersof the labor union to eliminate risk factors and improveworkenvironments.

Taihanisdoingitsbesttopreventaccidentsandletemployeesfocusontheirworkinasafe,cleanenvironmentbycheckingwhethersafetyandhealthactivitiesarebeingconductedintheworkplaceandcheckingwhetherthesafetymeasuresaresufficientatthesites.

In-house safety index managementTaihanismakingeveryefforttoensurethesafetyofeachemployeeandcreateworkplacesfreeofhazardsanddiseases.

Referenceyear

Management goal

Results in2013

Achievement level(%)

Remark

2012 0.28% 0.28% 100% In-housesafetyindex(%)=Numberofsafetyaccidents/Totalnumberofpersons*100

2008 2009 2010 2011 2012 2013

Safe and Healthy working Place

1.46

0.4

0.870.7

0.28 0.28

SO210ppm,NO210ppm,HCl0.6ppm,

dust10㎎/S㎥,Cu1㎎/S㎥,Pb1㎎/S㎥

Aimed concentration

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Environmental Performance

Theenvironment isvery important to the lifeofhumanbeingsand to thesustainablemanagementofacompany.Tahianisleadingthewayinpreservingtheenvironmentthroughtheenergeticpracticeofthedevelopmentofeco-friendlyproducts,energysavingthroughprocessimprovement,contaminationprevention,resourcerecyclingandreduction,etc.thissystematicandstrictenvironmentalsystemwillbeestablishedsothatthenextgenerationcanenjoyahappierandmorevaluablelife.

AirWeminimize theenvironmentaleffectsonnear residentialareasbyplantingair-clarifyingtreeswithin14meters fromtheconstructionsitesandobservingmorestrictairpollutanttreatmentstandardsthanregulatedbylaw.

Wealsoconductairpollutantreductionactivities includingLNG/electricityuseforheatingfuelandproductionfacilitiesandanti-pollutantfacilities installationtopreventairpollutants(highefficiencyfilterdustcollector, filtering&collectingfacilities)andbadsmell (absorber)suchasVOC.

Category dust NOX SOX HCl Pb Remark

Alloweddischarge 40㎎/㎥ 400ppm 150ppm 6ppm 10㎎/㎥ -

Aimedconcentration 10㎎/㎥ 10ppm 10ppm 0.6ppm 1㎎/㎥ -

Dischargedlevel 5.8㎎/㎥ 5.7ppm 5.9ppm 0.2ppm 0.06ppm -

(%) 14.5% 1.4% 3.9% 3.3% 1.0% Dischargetoreferencelevel

Dischargedairpollutants

4.0

19.1

32.4

2009

4.1

12.8

30.8

2010

3.26.6

22.2

2011

SulfuroxidesNitrogenoxideDust

(Unit:Ton/Year)

0.7 1.61.3

2012

1.2 2.51.7

2013

waterFiveexcellenttreatmentfacilitiesandtworetentionfacilitieswereinstalled.Mostofwastewater is reusedafterphysicalandchemical treatmentsandpartly, it iscommittedtobecontrollednottobedischargedoutofthebusinessarea.InordertominimizetheenvionmentaldamagesonthewaterqualityofLakeSeokmun,wedischargedthewastewaterfromthesewagetreatmentfacilitiesintotheeco-retentionaftercleaningthewaterpollutants.

Category 2009 2010 2011 2012 2013 Remark

Capacity 468,378 461,360 361,220 111,371 128,871

waste Werecycled80%oftotal2,921tonsoftheby-productsgeneratedatDangjinplantin2013andtreateditbyeitherincinerationorreclamationsafely.

Category 2009 2010 2011 2012 2013 Remark

Recycling 122.5 117.1 164.2 99.5 83.9

Reclamation 0.03 0.03 0.61 0.21 -

Incineration 28.1 21.5 28.8 18.1 21.4

Total 150.6 138.6 193.6 117.9 105.2

RecyclingRatio 81% 84% 85% 84% 80%

(Unit:Kwon)

(Unit:ton)

Capacity468,378 461,360

361,220

111,371 128,871

2009 2010 2011 2012 2013

Environmental Performance

Green house gas and energy control Goals for mid/Long-term green house gas and energy controlToreduce25%ofgreenhousegasby2015,comparedwiththatof2007~2008(basedonBAU)

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General waste treatment

SyntheticresinwasteChemicalwasteAnimalresidues

TimberwasteWastewaterprocesssludge

81%

15%

1%

1%2%

OilDustSolidwasteoil

DisposalsludgeEmptyreelLeadash

43%

15%14%

1%

20%

7%

designated waste treatment

Climate change counterpart team

- ThecompanyhasoperatedtheclimatechangeresponseteamsinceMarch,2009,inordertocopewithclimatechangeissuesandcreatenewopportunities.

- TFTdrewupandcarriesoutpracticalplanstoreducecarbondischarge,andwillmakeeffortstodealwiththeclimatechangebyusingeco-friendlyproductsandsmartgrid.

Vision and strategy

Discharging green house gas

Category Control year 2010 2011 2012 2013

Scope1 24,097 22,976 17,706 11,486 12,193

Scope2 27,854 30,094 26,600 25,207 24,740

Total 51,951 53,070 44,306 36,693 36,933

Control : Average discharged green house gases between 2007~2009

51,951 53,070

44,306

36,933

50,140

36,693

73,906

Control year 2010 2011 2012 2013

Dischargedgreenhousegas

Allocatedgreenhousegas

• Carbon energy control system construction

• IFS construction

• Eco-friendly cable development

• carbon labeling

ECO-SACTORy ECO-PROdUCT ECO-IR

• Carbon information release• Investment in SRI field • Green culture realization

Strategy

Goal To reduce 25% of green house gas by 2015, compared with the control year

Technological development subcommittee

• Newly growing item development • Renewable energy development

Productionsubcommittee

• Low-carbon energy system construction • Green factory realization

Climate changecounterpart office

Climate change

counterpart TFT

151

139

194

118105

122

28

0.03

2009

117

22

0.03

2010

164

29

0.61

2011

100

18

0.21

2012

84

21

0

2013

Recycledlevel

Reclamationlevel

Incinerationlevel

Totalby-productlevel

(Unit:Kwon)

FinancialSection

44 IndependentAuditors’Report

46 StatementsOfFinancialPosition

48 SeparateStatementsOfComprehensiveIncome

49 SeparateStatementsOfChangesInShareholders’Equity

50 SeparateStatementsOfCashFlows

Environmental Performance

Green house gas inventory construction Wedoourbest tocontrolandreducedischargedgreenhousegases.Webuiltagreenhousegas inventory in2005andmanaged it through inspectionsbya3rdpartysince2007. Inparticular,wedevelopedamethanedischarge-coefficient for indirectdischargegenerated in theprocessof insulationofextrahigh-voltagecablesandcommitteda3rdpartytomakeaninspectiononit.NotonlytheDangjinplant,butalsootherbusinessplacesofTaihanElectricWireoperatethegreenhousegasinventories.Throughvariousreductionactivities,thecompanyaccomplishesitsgoalstoreducedischargedgreenhousegases.

Participation in the green house gas & energy discharge control system WehaveparticipatedintheDischargecontrolsystemsincethecompanywasappointedasagreenhousegas&energydischargemanagersince2010.Notonlythedivisionincharge,buttheentirecompanymakeseffortstoreducedischargedenergyandgreenhousegasesthoughenergy-savingplansandorganiccooperationwiththeKPIs.

Energy-saving activities• Central electricity control system using IFS -IFS(IntelligentFactorySystem),builtin2012isanintelligentfactorysystemthatsaves

energyandgreenhousegaseswhile improvingubiquitousbuilding’svaluebyprovidingpleasantworkingandbusinessenvironments.

-Due to the IFSsystem,Taihanminimizeselectricityconsumption forheatingandcooling,usingthehighlyefficientenergysystemthrougharemotemetering.

- Automatic office lights-out: 12:00~13:00,18:00~19:00 - Central cooling/heating control: Summer-26℃, Winter-20℃,

• Replacement to clean energy WetrytominimizegreengasesandairpollutantsbyreplacingtheB/Cboilers(efficiency:

87%)totheconnectedLNGboilers(efficiency:92%).

• Highly efficient facilities Theoldcompressorsinshuttletypewerereplacedbynewonesinturboorscrewtypes.

• Activated green traffic Wemakeourstaffsrideonabicycle forshortdistanceworks (Bicycle-onlyroadswere

builtinthecompany)

- Utilization of electric bicycles (Speedlimitapplied) Chargingtime:Fastcharging/Safetyfunction:Break,overcurrent/overvoltageblocking,lowvoltagewarning

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without qualifying our opinion, we draw attention to the followings:

(1) Agreement for implementation of normalization of

business with creditors:

Asexplained inNote32 to theaccompanyingseparate

financial statements, onMay29,2009, theCompany

entered into anagreement for the improvementof its

financialstructurewithHanaBank, itsprincipalcreditor.

Under theagreement, theCompanycommitted tosell

portionsof itsaffiliatesand realestate,performcapital

injections, extinguish borrowings and settle payment

guaranteesofaffiliatedcompanies’loanandothers.

Inaddition,asexplained inNote32totheaccompanying

separate financialstatements,onFebruary7,2012, the

Companysignedamemorandumofunderstanding(MOU)

withcreditors, includingHanaBank,theprincipalcreditor,

forsupportingadditionalloanof\280billionandadditional

credit lineof\150billion.Under thisMOU,2,804,828

sharesof common stockof theCompanyhavebeen

providedascollateraltofinancialinstitutions.

Moreover,asexplained inNote32 to theaccompanying

separate financial statements,onAugust7,2012, the

Companyentered intoanagreement for implementation

fornormalizationofbusinesswithcreditors,includingHana

Bank, theprincipalcreditor.Under thisagreement, the

Companyshould implementtheraisingof funds including

paid-in capital increase, a capital reduction without

consideration, thedisposalof investmentassetsandthe

repaymentoftheprojectfinancingliabilities.TheCompany

and itsprincipal shareholder should transfer rightson

stocksoftheParentCompanyandaffiliatedcompaniesto

creditors.

(2) Going-concern uncertainties:

The accompanying separate financial statements are

preparedonagoing-concernbasis.Assetsand liabilities

are recordedon thebasis that theentitywillbeable to

realize itsassetsanddischarge its liabilities in thenormal

courseofitsbusiness.

However,asexplained inNote33 to theaccompanying

separate financialstatements, theCompany incurrednet

lossof\706,654millionfortheyearendedDecember31,

2013,andtotalcurrentliabilitiesexceedtotalcurrentassets

by\141,041millionasofDecember31,2013.Inaddition,

related-party receivables of\76,961 million (net of

allowancefordoubtfulaccountsandother)asofDecember

31,2013,maynotbecollectible if the recoveryplan is

not fulfilledasplanned.Moreover,contingent liabilitieson

financialguaranteecontractprovidedforrelatedpartiesand

othersof\343,959millionareexposedtocreditrisk.

Thesefactorsmeanthattherearesignificantuncertainties

about the Company’s ability to continue as a going

concern.Therefore, theCompany’sability tocontinueas

agoingconcerndependsonfinancingplan,achievement

ofstableoperatingprofitasa resultof financialstructure

improvementagreementandagreementforimplementation

ofnormalizationofbusiness,collectionof related-party

receivables and resolution of contingent liabilities on

financialguaranteecontract.TheCompanymaynotbe

abletocontinueasagoingconcern if itdoesnotoperate

asplanned,andtherefore, theCompanywillnotbeable

to realize its assets anddischarge its liabilities in the

normalcourseof itsbusiness.Theultimateeffectofthese

significantuncertaintiescannotpresentlybedetermined in

theaccompanyingseparatefinancialstatements.

(3) Debt-for-equity swap:

Asexplained inNote21 to theaccompanyingseparate

financial statement, theCompany’screditors, including

HanaBank, theprincipalcreditor,determined thedebt-

for-equity swap in the voluntarycommitteeof creditor

banks as of December 9, 2013, and the Company’s

debt fromcreditorsof\671,944millionwasconverted

intocommonstockandconvertiblepreferredstockon

December20,2013.Asaresult,theCompany’scommon

stockandpreferredstock increasedby\117,944million

and\110,800million, respectively,andcapitalsurplusof\432,653million (netofshare issuancecosts,\1,140

million)andprofit fromdebt restructuringof\9,407was

incurred.

March 20, 2014

Notice to ReadersThisreportiseffectiveasofMarch20,2014,theauditor’sreportdate.Certainsubsequenteventsorcircumstancesmayhaveoccurredbetweentheauditor’s reportdateandthetimetheauditor’s report is read.Sucheventsorcircumstancescouldsignificantlyaffect theaccompanyingseparatefinancialstatementsandmayresultinmodificationstotheauditor’sreport.

IndependentAuditors’ Report

To the Shareholders and Board of directors of Taihan Electric wire Co., ltd.:

Wehaveauditedtheaccompanyingseparate financialstatementsofTaihanElectricWireCo.,Ltd. (the

“Company”).Theseparate financialstatementsconsistof theseparatestatementsof financialposition

asofDecember31,2013and2012,andtherelatedseparatestatementsofcomprehensive income,

separatestatementsofchanges inshareholders’equityandseparatestatementsofcashflowsfor the

yearsendedDecember31,2013and2012,allexpressedinKoreanwon.TheCompany’smanagement

is responsible for thepreparationand fairpresentationof theseparate financialstatements,andour

responsibilityistoexpressanopinionontheseseparatefinancialstatementsbasedonouraudits.

Weconductedouraudits inaccordancewithauditingstandardsgenerallyaccepted in theRepublic

ofKorea.Thosestandardsrequirethatweplanandperformtheaudit toobtainreasonableassurance

aboutwhether the financialstatementsare freeofmaterialmisstatement.Anaudit includesexamining,

onatestbasis,evidencesupportingtheamountsanddisclosures inthefinancialstatements.Anaudit

alsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,

aswellasevaluatingtheoverall financialstatementpresentation.Webelievethatourauditsprovidea

reasonablebasisforouropinion.

Inouropinion,theseparatefinancialstatementsreferredtoabovepresentfairly, inallmaterialrespects,

the financialpositionof theCompanyasofDecember31,2013and2012,and the resultsof its

operationsand itscash flows for theyearsendedDecember31,2013and2012, inconformitywith

KoreanInternationalFinancialReportingStandards(“K-IFRS”).

English Translation of a Report Originally Issued in Korean

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december 31, 2013 December31,2012

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENTLIABILITIES:

Accountspayable 333,903,062 364,021,278

Short-termborrowings 66,759,526 348,109,319

Currentportionoflong-termborrowings 87,068,868 687,469,477

Othercurrentfinancialliabilities 70,462,481 54,933,341

Currentprovision 31,083,025 5,015,214

Othercurrentliabilities 51,073,082 52,979,285

Total current liabilities 640,350,044 1,512,527,914

december 31, 2013 December31,2012

NON-CURRENTLIABILITIES:

Long-termborrowings 570,272,851 408,689,884

Definedbenefitobligations 6,405,454 7,816,441

Otherfinancialliabilities 2,020,983 6,863,735

Total non-current liabilities 578,699,288 423,370,060

Total liabilities 1,219,049,332 1,935,897,974

december 31, 2013 December31,2012

SHAREHOLDERS’EQUITY:

Capital 491,586,003 262,841,713

Othercontributedcapital 481,192,372 496,427,042

Componentsofothercapital 3,533,337 1,313,355

Accumulateddeficit (703,780,270) (447,887,201)

Total shareholders’ equity 272,531,442 312,694,909

Total liabilities and shareholders’ equity 1,491,580,774 2,248,592,883

Korean won (In thousands)

Separate Statementsof Financial PositionAS OF DECEMBER 31, 2013 AND 2012

december 31, 2013 December31,2012

ASSETS

CURRENTASSETS:

Cashandcashequivalents 31,382,620 45,242,096

Short-termfinancialinstruments 14,187,782 20,636,617

Currentavailable-for-sale(“AFS”)financialassets 18,880,139 39,084,968

Accountsreceivable 219,723,717 296,351,690

Short-termloans 33,822,126 156,900,892

Othercurrentfinancialassets 15,260,303 47,551,307

Inventories 127,759,971 171,575,833

Incometaxreceivable 646,813 963,642

Othercurrentassets 35,655,350 48,143,322

Non-currentassetsheldforsale 1,990,050 1,990,050

Total current assets 499,308,871 828,440,417

december 31, 2013 December31,2012

NON-CURRENTASSETS:

AFSfinancialassets 56,598,909 32,286,870

Long-termloans 238 28,625,664

Investmentsinsubsidiaries,associatesandjointventures 250,628,496 416,390,659

Otherfinancialassets 4,168,773 176,926,899

Property,plantandequipment 531,725,116 561,908,582

Intangibleassets 15,602,943 4,592,053

Investmentproperty 667,039 672,619

Deferredtaxassets 132,880,389 198,749,120

Total non-current assets 992,271,903 1,420,152,466

Total assets 1,491,580,774 2,248,592,883

Korean won (In thousands)

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Sepatate Statements of Changesin Shareholders’ EquityFOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012

CapitalstockOthercontributed

capitalComponentsof

othercapitalDeficit Totalamount

Balance at January 1, 2012 389,855,805 175,500,100 (3,664,629) (213,460,834) 348,230,442

Netloss - - - (443,261,292) (443,261,292)

Conversionofconvertibleandredeemablepreferredstock

50,000,015 18,495,321 - - 68,495,336

Exerciseofstockwarrants 36,178 (19,780) - - 16,398

Capitalreductionwithoutconsideration

(377,050,285) 377,050,285 - - -

Paid-incapitalincrease 200,000,000 139,193,517 - - 339,193,517

Acquisitionoftreasurystock - (331,572) - - (331,572)

Dispositionofdeficit - (213,460,829) - 213,460,829 -

GainonvaluationofAFSfinancialassets,net

- - 4,977,984 - 4,977,984

Actuarialloss - - - (4,625,904) (4,625,904)

Balance at December 31, 2012 262,841,713 496,427,042 1,313,355 (447,887,201) 312,694,909

CapitalstockOthercontributed

capitalComponentsof

othercapitalDeficit Totalamount

Balance at January 1, 2013 262,841,713 496,427,042 1,313,355 (447,887,201) 312,694,909

Netloss - - - (706,653,807) (706,653,807)

Debt-for-equityswap 228,744,290 432,652,531 - - 661,396,821

Dispositionofdeficit - (447,887,201) - 447,887,201 -

GainonvaluationofAFSfinancialassets,net

- - 2,219,982 - 2,219,982

Actuarialgain - - - 2,873,537 2,873,537

Balance at December 31, 2013 491,586,003 481,192,372 3,533,337 (703,780,270) 272,531,442

Korean won (In thousands)

Separate Statements ofComprehensive Income

2013 2012

Sales 1,910,024,553 1,982,801,358

Costofsales 1,830,361,644 1,874,569,887

Grossprofit 79,662,909 108,231,471

Sellingandadministrativeexpenses 276,173,781 103,159,258

Operating income (196,510,872) 5,072,213

Non-operatingincomeandexpense:

Financeincome 31,117,979 100,297,177

Financeexpenses 459,053,046 429,269,286

Othernon-operatingincome 50,744,689 49,799,944

Othernon-operatingexpenses 68,316,572 49,636,439

(445,506,950) (328,808,604)

Lossbeforeincometax (642,017,822) (323,736,391)

Incometaxexpense 64,635,985 119,524,901

Net loss (706,653,807) (443,261,292)

Othercomprehensiveincome:

Itemsnottobereclassifiedsubsequentlytoprofitorloss:Actuarialgain(loss)ondefinedbenefitobligations,net

2,873,537 (4,625,904)

Itemstobereclassifiedsubsequentlytoprofitorloss:GainonvaluationofAFSfinancialassets,net

2,219,982 4,977,984

5,093,519 352,080

Total comprehensive loss (701,560,288) (442,909,212)

Basic losses per common share (6,641) (15,478)

Diluted losses per common share (6,641) (15,478)

Korean won (In thousands except per share amounts)

FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012

51

50

Annual R

epo

rt 2013

2013 2012

CASH FlOwS FROM FINANCING ACTIVITIES:

Proceedsfromshort-termborrowings 885,955,170 1,423,585,170

Proceedsfromlong-termborrowings 63,813,000 127,598,400

Issuanceofcommonstock - 338,877,253

Exerciseofstockwarrants - 3,303

Repaymentofshort-termborrowings (573,976,376) (1,344,605,099)

Repaymentofcurrentmaturitiesoflong-termborrowings (404,977,921) (521,105,008)

Acquisitionoftreasurystock - (331,572)

Commonstockissuancecosts (1,140,249) -

Netcashprovidedby(usedin)financingactivities (30,326,376) 24,022,447

NET INCREASE (dECREASE) IN CASH ANd CASH EQUIVAlENTS (13,251,066) 10,651,426

CASH ANd CASH EQUIVAlENTS, BEGINNING OF yEAR 45,242,096 34,984,506

EFFECT OF EXCHANGE RATE ON CASH ANd CASH EQUIVAlENTS

(608,410) (393,836)

CASH ANd CASH EQUIVAlENTS, ENd OF yEAR 31,382,620 45,242,096

Korean won (In thousands)

2013 2012

CASH FlOwS FROM OPERATING ACTIVITIES:

Netloss (706,653,807) (443,261,292)

Adjustmentstoreconcilenetlosstonetcashprovidedbyoperatingactivities:

719,852,149 496,929,459

Changesinoperatingassetsandliabilities 85,574,998 (45,970,599)

98,773,340 7,697,568

Interestreceived 3,322,180 14,881,595

Interestpaid (63,728,026) (86,253,068)

Dividendreceived 377,764 651,174

Incometaxreceived 112,941 158,368

Netcashprovidedby(usedin)operatingactivities 38,858,199 (62,864,363)

2013 2012

CASH FlOwS FROM INVESTING ACTIVITIES:

Proceedsfromwithdrawalofshort-termfinancialinstruments 67,720,957 176,329,901

ProceedsfromdisposalofcurrentAFSfinancialassets 5,003,944 -

ProceedsfromdisposalofAFSfinancialassets 3,766,416 10,267,887

Collectionofshort-termloans 7,385,163 6,210,771

Proceedsfromdisposalofinvestmentsinsubsidiaries 93,999 -

Proceedsfromdisposalofinvestmentsinassociates 77,234 -

Decreaseinotherfinancialassets 4,370,451 362,026

Proceedsfromdisposalofproperty,plantandequipment 14,096,731 8,559,838

Proceedsfromdisposalofintangibleassets - 1,051,818

Proceedsfromdisposalofinvestmentproperty - 2,442,122

Proceedsfromdisposalofnon-currentassetsheldforsale - 43,797,652

Proceedsfromtransferofbusiness - 11,537,000

Increaseinshort-termfinancialinstruments (62,214,161) (113,248,408)

AcquisitionofcurrentAFSfinancialassets (5,004,090) -

AcquisitionofAFSfinancialassets (1,495) (2,921,529)

Extensionofshort-termloans (36,357,099) (54,334,424)

Extensionoflong-termloans 9,446 (9,684)

Increaseinotherfinancialassets (4,580,207) (2,103,287)

Acquisitionofproperty,plantandequipment (16,150,178) (33,987,341)

Increaseofnon-currentassetsheldforsale - (4,461,000)

Netcashprovidedby(usedin)investingactivities (21,782,889) 49,493,342

(Continued)

Korean won (In thousands)

Sepatate Statementsof Cash FlowsFOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012

OVERSEAS SUBSIdIARIES

South Africa (M-TEC)POBox1643,Vereeniging1930,Gauteng,SouthAfricaTEL : +27-16-450-8200FAX : +27-16-450-8202E-mail : kskil@m-tec.co.zaWebsite :www.m-tec.co.za

USA(Taihan USA)LandMarkBuilding,99TulipAvenue,Suite#106,FloralPark,NY11001,USATEL : +1-562-282-2206FAX : +1-562-946-0200E-mail :cwlee@taihan.com

OVERSEAS SUBSIdIARIES

Vietnam (TSC)152/11BDienBienPhuSt.,W.25,BinhThanhDistrict,HCMCityTEL : +84-8-3518-0786FAX :+84-8-3514-0516E-mail : ysshin@tscable.comWebsite :www.tsc.vn

Hong Kong(taihan Global Holdings.,ltd)12/F.,3LockhartRoad,wanchai,HongKong

dOMESTIC OFFICE & PlANT

USA lA

USA Ny

dangjin Cable Accessory Plant2-1.Seulhang-ri,Godae-myeon,Dangjin-gun,Chungcheongnam-do,KoreaTEL : +82-41-359-9114FAX :+82-41-359-9116

R&d laboratory603-4,Seonggok-dong,Danwon-gu,Ansan-si,Gyeonggi-do,KoreaTEL : +82-31-420-9530FAX : +82-31-420-9350

dangjin Plant1110,Janghang-ri,Godae-myeon,Dangjin-gun,Chungcheongnam-do,KoreaTEL : +82-41-360-9114FAX :+82-41-360-9199

Head OfficeG.SQUARE,180,Simin-daero,Dongan-gu,Anyang-si,Gyeonggi-do,KoreaTEL : +82-2-316-9114FAX :+82-2-316-9023

TAIHAN around the world

OVERSEAS BRANCH OFFICE

dubai BranchOfficeNo.908,AlShafarTower1,TECOM,P.O.Box117561,Dubai,UAETEL :+971-4-368-8988FAX :+971-4-368-6779E-mail :hkjoo@taihan.com

Kuwait BranchSabahalSalem,blockNo.4,StreetNo.26HouseNo.8,StateofKuwaitTEL : +965-2552-8642FAX : +965-2552-8508E-mail : ksan@taihan.com

Riyadh BranchOfficeNo.613,AlRossaisCommercialCenterOlayaRoad,P.O.Box300201,Riyadh11372,KingdomofSaudiArabiaTEL : +966-1-419-0227FAX : +966-1-419-0262E-mail :jsnam@taihan.com

USA lA Branch12016TelegraphRd.,Suite200SantaFeSprings,CA90670,USATEL :+1-562-282-2206FAX :+1-562-946-0200E-mail :cwlee@taihan.com

SEAS BRANCH OFFICE

Jeddah BranchAdd:OfficeNo.401,AlRawdahCenter,AlRawdahSt,Jeddah,K.S.ATEL :+966-12-664-8805E-mail :shsong@taihan.com

Singapore Branch150KampongAmpat#07-04KACentreSingapore368324,RepublicofSingaporeTEL : +65-6842-5069FAX :+65-6842-5076E-mail :hcjung@taihan.com

Kuala lumpur BranchNo.2-09,JalanPandanPrima1DataranPandanPrima55100KualaLumpur,MalaysiaTEL :+60-3-9018-9113/9115FAX :+60-3-9200-1136E-mail :hcjung@taihan.com

Russia Branch111024,Russia,Moscow,EntuziastovBlvrd.2office912.TEL :+7-495-989-5812E-mail :vkn@taihan.com

SEAS BRANCH OFFICE

Qatar Branch AziziaCommercialStreet,BesidesA1JaberOpticians1stFloor,Room7P.O.Box18740,DohaTEL :+974-421-3851E-mail :jsnam@taihan.com

Australia Branch Suite2,Level13,80MountStreet,NorthSydney,NSW2060,AustraliaTEL :+61-2-9460-3600FAX :+61-2-9954-4354E-mail :okkwon@taihan.comRSEAS BRANCH OFFICENew Zealand BranchSuite2,Level11,48EmilyPlace,POBox105895,Auckland1143,NewZealandTEL :+64-9-368-7703FAX :+64-9-368-7704E-mail :okkwon@taihan.com

Kuala lumpur

Riyadh

New Zealand

South Africa

Vietnam

Hongkong

KOREA

Kuwait

dubai

Singapore

Australia

Qatar

Russia

Subsidiary Company

Branch Office

G.SQUARE, 180, Simin-daero, Dongan-gu, Anyang-si, Gyeonggi-do, Korea

www.taihan.com

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Annual Report2013

Annual R

eport 2013