2015EDELMANTRUST BAROMETER(KOREA RESULTS)

Online Survey in 27 Countries

• 33,000 respondents

• 8 years in Korea (15 years Global)

• Research Timeline:

Oct. 21 - Nov. 22, 2014

Informed Publics

• 200 respondents in Korea

• Ages 25-64

• College-educated

• In top 25% of household income per age group in each country

• Report significant media consumption and engagement in business news and public policy

• 15 years of data

General Online Population

• 1,000 respondents per country surveyed

• Ages 18+

• 4 years in 25+ markets

EDELMAN’S 15TH ANNUAL TRUST BAROMETER METHODOLOGY

THE STATE OF TRUST

Countries that have increased significantly

compared to the previous year

India +10 pts.Poland +10 pts.Russia + 8 pts.

Countries that have dropped significantly

compared to the previous year

Hong Kong -12 pts.Malaysia -9 pts.Argentina -8 pts.Singapore -8 pts.

Trust Index is an average of a country’s trust in the four institutions of government, business, media and NGOs. 20-country global total (does not include Argentina, Hong Kong, Malaysia, Singapore, South Africa, Turkey, UAE).

China 79

UAE 79

Singapore 73

Indonesia 72

India 69

Malaysia 65

Canada 60

Netherlands 60

Hong Kong 59

Mexico 59

Australia 58

Brazil 57

Germany 57

Argentina 53

U.K. 52

S. Korea 51

Sweden 51

S. Africa 50

U.S. 49

France 46

Japan 44

Italy 43

Turkey 41

Ireland 39

Spain 39

Russia 37

Poland 35

2014

GLOBAL 56

Italy 48

S. Africa 48

Hong Kong 47

S. Korea 47

U.K. 46

Argentina 45

Poland 45

Russia 45

Spain 45

Sweden 45

Turkey 40

Ireland 37

Japan 37

2015

UAE 84

India 79

Indonesia 78

China 75

Singapore 65

Netherlands 64

Brazil 59

Mexico 59

Malaysia 56

Canada 53

Australia 52

France 52

U.S. 52

Germany 50

GLOBAL 55

Korea-4 pts.

Dropped from Neutral to Distruster

CROSS COUNTRY TRUST INDEX : KOREA INTO DISTRUSTERS AGAIN WITH SLIGHT DROP OF TRUST

5

The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs. 27-country global total.

DEFICIT ALMOST 10 POINTS LOWER AMONG GENERAL POPULATION, WITH AN AVERAGE 3 POINT DECREASE IN TRUST ACROSS ALL COUNTRIES.

THE NEW TRUST DEFICIT

TRU

STERS

NEU

TRAL

2015

GLOBAL 55

2015

GLOBAL 46

Italy 48

S. Africa 48

Hong Kong 47

S. Korea 47

U.K. 46

Argentina 45

Poland 45

Russia 45

Spain 45

Sweden 45

Turkey 40

Ireland 37

Japan 37

UAE 84

India 79

Indonesia 78

China 75

Singapore 65

Netherlands 64

Brazil 59

Mexico 59

Malaysia 56

Canada 53

Australia 52

France 52

U.S. 52

Germany 50

India 68

UAE 68

Indonesia 67

China 63

Singapore 60

Malaysia 53

Canada 52

Netherlands 52

Mexico 51

Brazil 50

Hong Kong 47

U.S. 44

Argentina 43

Australia 42

Germany 42

Italy 42

S. Africa 42

Russia 40

U.K. 39

France 38

S. Korea 38

Sweden 37

Poland 36

Spain 36

Turkey 35

Japan 34

Ireland 32

Nearly 2/3 of countries are nowDISTRUSTERSamong the General Online Population

DIS

TRU

STERS

GOVERNMENT TRUST DROPPED SIGNIFICANTLY, EVEN MORE THAN BUSINESS.

KOREA TRUST BY INSTITUTION: GOVERNMENT DROPPED 12% AFTER 2 CONSECUTIVE YEARS OF INCREASE

60%

47%49%

53%

45%

49%48% 50%51%

58%

69%

62%

67% 66%70%

68%

42%

37%

50%

50%

33%

44% 45%

33%

48%

39% 45% 46%

31%

31%39% 36%

2008 2009 2010 2011 2012 2013 2014 2015

Media

NGO

Government

Business

7

Q11-14. [NGOs IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal.“ (Top 4 Box, Trust) Informed Publics, 27-country global total.

Lower/Equal Trust in 15 CountriesIncreased Trust in 12 Countries

2014 2015

% Trust

53

78

70 71

60

4548

40 40

35

42

30

19

79

70

6163

5558 59

54

48

63

54

4144

3740

51

80 7976

62

51 5048 47

44 43 42

20

77

59 57 5652

47 46 45 43 41 4038

34 3431

KOREA HAS MAINTAINED THE TRUST LEVEL FROM THE PREVIOUS YEAR.

TRUST FOR MEDIA: 60% OF THE COUNTRIES DISTRUST MEDIA

50%

8

Q11-14. [NGOs IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal.“ (Top 4 Box, Trust) Informed Publics, 27-country global total.

Lower/Equal Trust in 19 CountriesIncreased Trust in 8 Countries

2014 2015

% Trust

66

7673

6462 61 62

59

47

75 74

84

76 76

70

75

6770

77

67 6669

58

67

58

41

47

37

63

8177

71 7065 64 63

58

74 73 72 71 7168 67 67 66

63 62 6159

57

5148

38 37

29

KOREA HAS MAINTAINED THE TRUST LEVEL FROM THE PREVIOUS YEAR.

TRUST FOR NGO’S ARE DOWN-SLIDING SLIGHTLY

50%

9

Lower Trust in 11 CountriesIncreased Trust in 16 Countries

% Trust

Q11-14. [GOVERNMENT IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Publics, 27-country global total.

2014 2015

45

88

53

76

53

60

27

49

42

3237

34

28

19

24

1821

75

63

56

5154

4543

45 45

23

17

48

90

82 82

72

65

5450

43 42 4137

3330

2826 26

70

59

49 4945

42 41 40

33

2116

MALAYSIA AND KOREA SHOW STEEPEST DROP.

GLOBAL GOVERNMENT TRUST LEVEL:16 OUT OF 27 DISTRUST GOVERNMENT

50%

10

Lower Trust in 16 CountriesIncreased Trust in 11 Countries

% Trust

Q11-14. [BUSINESS IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Publics, 27-country global total.

2014 2015

59

82 8279

70

54

63

58

45 4543

38

7377

72 71

56

51

59

53

6258 57

4549

4341

39

57

85 84 84

73

6664

60

53

4845

43

72 7067

61

5249 48 48 47 46 45 45

42 4138 36

KOREA IS THE LOWEST IN TERMS OF TRUST FOR BUSINESS WELL BELOW 50%.

GLOBAL BUSINESS TRUST LEVEL:MORE THAN HALF OF COUNTRIES REMAIN BELOW 50%

50%

PG 11

4 MAIN FACTORS THAT AFFECT TRUST FOR BUSINESS

COUNTRY OF ORIGIN

INDUSTRY SECTOR

LEADERSHIP

ENTERPRISE TYPE

BUSINESS

12

50%

84%78% 77% 77% 74%

69% 68% 65%

50% 47% 46%39%

32% 32% 29% 28% 26%

Most Trusted

Q26-Q42. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies headquartered in the following countries to do what is right. Use the same nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Publics, 27-country global total.

KOREANS RANKED KOREAN CORPORATIONS 10TH GLOBALLY, WHICH IS -12% FROM PREVIOUS YEAR. CHINA ON THE OTHER HAND IMPROVED 9% SINCE THE PREVIOUS YEAR.

KOREA RESULT: CHINA IMPROVES THE MOST SINCE 2014, WHILE KOREA DROPS THE MOST

DOWN -12 POINTSSINCE2014

UP +9 POINTSSINCE2014

50%

57%

68%

State-owned Big Business Family-owned

GLOBAL KOREA

35%

43%

34%

State-owned Big Business Family-owned

Q15-17C. Thinking about different types of businesses, please indicate how much you trust each type of business to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Publics, in South Korea and 27-country global total.

KOREANS HAVE LOW TRUST FOR FAMILY-OWNED BUSINESS. BIG BUSINESS AND FAMILY-OWNED BUSINESS DO NOT HAVE CLEAR DISTINCTION.

TRUST LEVEL BY BUSINESS TYPE: KOREA LOYAL TO BIG BUSINESSES

PG 14

BUSINESS INNOVATION

PG 15

77% Too Fast8% Too Slow 14% Just Right

Q349-351. Below are a number of statements. For each, please think about the pace of development and change in business and industry today, and select the response that most accurately represents your opinion. (Not Enough, Too Much) Informed Publics, in South Korea.

77% BELIEVE THAT THE KOREA’S BUSINESS INNOVATION IS VERY FAST

TRUST IN BUSINESS INNOVATION: KOREA IS VERY FAST

16

Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q262/Q263/Q264/Q381/Q382. When it comes to government regulation of the [financial services industry / energy industry / food and beverage industry / health industry / technology industry], do you think that your government regulates it too much,not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total.

37%

43%40%

30%36%

55%

27%

18%

26%

40%

22%

13%

Business Financial Services

Industry

Health Industry Technology Industry Energy Industry Food and Beverage

Industry

2015 TRUST BAROMETER

53% say the most important

role for government in business is to protect consumers and regulate

business

NOT ENOUGH REGULATION TOO MUCH REGULATION

KOREANS BELIEVE THAT THERE ARE NOT ENOUGH REGULATIONS ACROSS ALL INDUSTRIES EXCEPT FOR TECH.

53% OF KOREANS BELIEVE THAT THERE ARE NOT ENOUGH REGULATIONS FOR BUSINESS INNOVATION

Business in General

17

24%

30%

35%

54%

66%

70%

Make the World a Better Place

Improve People's Lives

Personal Ambition

Greed/Money

Business Growth Targets

Technology

THERE ARE SOME PEOPLE WHO BELIEVE THAT THERE IS ROOM FOR IMPROVEMENT IN THAT 1 IN 3 BELIEVE INNOVATION AND CHANGE TO BE MOTIVATED BY A DESIRE FOR PERSONAL AND SOCIETAL IMPROVEMENT.

INNOVATIONS PERCEIVED AS DRIVEN BY TECHNOLOGY, BUSINESS TARGETS AND GREED/MONEY, BUT THERE IS STILLA POSITIVE HOPE

Q353. From the list below, what do you believe are the top three drivers of change in business and industry today? Informed Publics, 27-country global total.

PG 18

Make test results available publicly for review 81%

Run a clinical trial or beta test 74%

Partner with an academic institution 72%

Partner with an NGO 70%

Partner with government 57%

64% Agree:New developments

are not tested enough

Make test results available publicly for review 80%

Partner with an academic institution 75%

Run a clinical trial or beta test 71%

Partner with an NGO 63%

Partner with government 55%

55% Agree:New developments

are not tested enough

Q365-369. Below is a number of actions that could impact your trust in business and industry to develop and implement technology-led changes such as those you just evaluated. What impact would each of these actions have on your trust? Informed Publics, in South Korea.Q349-351. Below are a number of statements. For each, please think about the pace of development and change in business and industry today, and select the response that most accurately represents your opinion. (Not Enough, Too Much) Informed Publics, in South Korea.

BOTH KOREA AND GLOBAL POPULATION BELIEVE THAT NEW DEVELOPMENTS ARE NOT TESTED ENOUGH

HOW TO GET TO TRUSTED INNOVATION

19

Less Transparency

• Less Accessible

• Lower Understanding

• Lower Participation

• Less Control

More Transparency

• More Accessible

• Greater Understanding

• Greater Participation

• More Control

More Clear Benefit

• Greater Personal Benefit

• Greater Societal Benefit

Less Clear Benefit

• Less Personal Benefit

• Less Societal Benefit

Trusted Innovation

APATHYDistrusted Innovation

FEAR

INNOVATION TRUST MATRIX

TRUSTED INNOVATION THROUGH MORE TRANSPARENCY AND BENEFITS TO SOCIETY

PG 20

COMMUNICATING VIA ENGAGEMENT

PG 21

Q178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a nine-point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal.” (Top 4 Box, Trust) Informed Publics, in South Korea.

59%

49%

60%61%

53%

45%

53%

47%48% 47%

42%

49%

60%

52%

60% 61%

32%28%

33%

43%

2012 2013 2014 2015

Traditional Media

Online Search Engines

Social Media

Hybrid Media

Owned Media

KOREA HAS MAINTAINED THE TRUST LEVEL FOR TRADITIONAL MEDIA FROM THE PREVIOUS YEAR.

GLOBAL DECREASE IN TRADITIONAL MEDIA BUTMAINTAINED IN KOREA

PG 22

Q183. On a typical day, what is the first source that you go to for general information about business? Informed Publics, Informed Publics, in South Korea.Q184. What is the first source you go to for breaking news about business? Informed Publics, in South Korea.Q185. Which of the following sources do you turn to MOST often to confirm/validate information on breaking news about business? Informed Publics, in South Korea.

TELEVISIONNEWSPAPERS ONLINE SEARCH

The First Source for General Information

The First Source for Breaking News

Source Used Most to Confirm/ Validate News

19% 17%17%

26%27%

23%

43%45%

42%

2013 2014 2015

17%

22%

19%

20%

21%

20%

52%

45% 44%

2013 2014 2015

18% 17%

13%15% 14%

16%

46%

49%51%

2013 2014 2015

KOREA RELIES HEAVILY ON ONLINE SEARCH FOR NEWS WHEREAS NEWSPAPERS AND TV REMAIN QUITE LOW.

KOREANS RELY HEAVILY ON ONLINE MEDIA AS INFO SOURCE

PG 23

Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Trust) Informed Publics, in South Korea.

60%

53%

48% 49% 49%

29%

34%

28%

65%

54%

49% 48%

40%

34%

29% 29%

CompanyTechnical Expert

NGORepresentative

A Person LikeYourself

Academic orIndustry Expert

Financial orIndustry Analyst

RegularEmployee

CEO GovernmentOffical orRegulator

KOREANS TRUST TECHNICAL EXPERTS FROM COMPANY THE MOST. ACADEMIC INDUSTRY EXPERTS ARE RANKED 4TH AS SPOKESPERSON.

COMPANY TECHNICAL EXPERTS ARE CONSIDERED MOST TRUSTED SPOKESPERSON IN KOREA

2014 2015

More Trust Less Trust

29%

37%

40%

42%

42%

43%

54%

57%

69%

71%

Brands I don't use

Elected officials

CEO

Celebrities

Employees of a company

A well-known online personality

Journalist

Companies I use

An Academic Expert

My friends and family

TRUSTED

NEUTRAL

DISTRUSTED

KOREANS RELY HEAVILY ON FRIENDS AND FAMILY/ ACADEMIC EXPERT AS THEIR MOST TRUSTED CONTENT SOURCE, WHICH IS HIGHER THAN JOURNALISTS. ACADEMIC EXPERTS ARE TRUSTED MORE AS INFO SOURCE RATHER THAN SPOKESPERSON.

TRUST IN INFO SOURCE: FRIENDS & FAMILY/ ACADEMIC EXPERTS ARE MOST TRUSTED

Q387-396. Thinking about the information you consume on social networking sites, such as Facebook, MySpace, LinkedIn, Meebo, Orkut, Qzone, RenRen, how much do you trust the information posted from each of the following authors or content creators? (Top 4 Box, Trust) Informed Publics, 27-country global total. | Q397-406. Thinking about the information you consume on content sharing sites, such as YouTube, how much do you trust the information posted from each of the following authors or content creators? Informed Publics, 27-country global total. | Q407-415. Thinking about the information you consume on online-only news and information sources, such as The Huffington Post, Buzzfeed, TechCrunch, etc., how much do you trust the information posted from each of the following authors or content creators? Informed Publics, 27-country global total.

BUILDING TRUST

26

Q80-Q95. [TRACKING] How important is each of the following actions to building your trust in a company? Use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/Extremely Important) Informed Public, 27-country global total.

INTEGRITY

Has ethical business practices

Takes responsible actions to address an issue or crisis

Has transparent and open business practices

ENGAGEMENT

Listens to customer needs and feedback

Treats employees well

Places customers ahead of profits

Communicates frequently and honestly on the state of its business

PRODUCTS & SERVICES

Offers high-quality products or services

Is an innovator of new products, services or ideas

PURPOSE

Works to protect and improve the environment

Addresses society’s needs in its everyday business

Creates programs that positively impact the local community

Partners with NGOs, government and 3rd parties to address societal needs

OPERATIONS

Has highly-regarded and widely-admired top leadership

Ranks on a global list of top companies

Delivers consistent financial returns to investors

Edelman Trust Barometer research reveals 16 specific

attributes that build trust.

These can be grouped into five performance clusters listed here

in rank order of importance.

16 KEY ATTRIBUTES TO BUILDING TRUST

TRUST BUILDING ATTRIBUTES: LARGEST GAPS OVERALL IN INTEGRITY AND ENGAGEMENT IN KOREA

14%

15%

11%

11%

12%

11%

12%

20%

17%

14%

14%

13%

15%

13%

16%

13%

36%

38%

24%

25%

30%

37%

41%

31%

47%

39%

44%

47%

50%

49%

48%

49%

Delivers Consistent Financial Returns To Investors

Ranks On A Global List Of Top Companies, Such As Best To Work For Or Most Admired

Has Highly-Regarded And Widely Admired Top Leadership

Partners With NGOs, Government And Third Parties To Address Societal Issues

Addresses Society'S Needs In Its Everyday Business

Creates Programs That Positively Impact The Local Community

Works To Protect And Improve The Environment

Is An Innovator Of New Products, Services Or Ideas

Offers High Quality Products Or Services

Communicates Frequently And Honestly On The State Of Its Business

Places Customers Ahead Of Profits

Listens To Customer Needs And Feedback

Treats Employees Well

Has Transparent And Open Business Practices

Takes Responsible Actions To Address An Issue Or A Crisis

Has Ethical Business Practices

OPERATIONS

PURPOSE

PRODUCTS

INTEGRITY

ENGAGEMENT

Gap

-36

-32

-36

-35-34-30-25

-30

-11

-29

-26

-18

-14

-13

-23

-22

Q80-Q95. [TRACKING] How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. Informed Publics, 27 Country Global Total.Q114-129. Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a 9-point scale where one means they are "performing extremely poorly" and nine means they are "performing extremely well". Informed Publics, 27 Country Global Total.*Excludes don’t know responses

BUSINESS IMPORTANCE VS. COMPANY PERFORMANCE

PG 28

APACMEA TRUST DRIVERS

PG 29

Q371-376. Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Please answer yes or no to each action. Informed Publics, South Korea. Q377-380. Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust? Please answer yes or no to each action. Informed Publics, South Korea.

Trusted CompaniesDistrusted Companies

Refused to buy products/services Chose to buy products/services-60% 75%

Criticized them to a friend/colleague Recommended them to a friend/colleague-55% 53%

Paid more for products/services 54%

Shared negative opinions online

Shared positive opinions online-36% 42%

Defended company 26%

Sold shares Bought shares-15% 26%

IT IS IMPORTANT FOR THE COMPANIES TO EARN TRUST FROM THE CONSUMERS TO GET AHEAD

TRUST MATTERS IN KOREA AS WELL AS GLOBAL