May 24 2018 @ Marine Money Oslo

KTB Global Alternative Investment - Maritime

Opportunity & Solution

KTB Financial Group – Leading Capital Market Player

Top Tier Korean Financial Group with 6 Subsidiaries & over 40 affiliates

Venture Capital & CRC Investment

Venture Capital in US region

PEF Investment

Credit Investigation

Thailand Subsidiary

Collective Investments, Advisory, Discretionary Investments and Sales

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Established in 1981

Listed in 1996

358 Employees

Market Cap of 232 B KRW

(≒215M USD)

ComprehensiveAsset Management

1999.09 Total 89 membersAUM KRW 11.1tn

(US$ 10.3bn)

KTB AMC – Alternative Investment Leader in Korea

Commitment in Alternative Investment Area

Shipping Real Estate Infrastructure Power AircraftRenewable

Strong focus on Al with 22 professionals

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KTB Footprint in Global Alternative Investment Areas

KTB in Global Medias

Global Aircraft Finance Conference

2018.03.23

KTB in particular has been a staunch supporter of the sector and is continuing to do so despite the market challenges. Choi described aviation finance as a pillar of the Korean capital market and KTB is doubling its efforts to generate and invest in new opportunities that will grow the sector…………

Link

http://www.aviationnews-online.com/editorial-comment/korea-a-market-to-be-proud-of/

KTB, KDB and Uni-Asia team up on ship finance

2017.07.21

KTB, KDB and Uni-Asia team up on shipfinance overseas owners through Ocean Value-up fund.

KTB Asset Management has teamed up withdomestic and Japanese partners on a new shipfinance venture.

An MoU has been signed with state-run KoreaDevelopment Bank (KDB) and Uni-Asia to providecash and management services for KDB's OceanValue-up Fund scheme…..

Link

http://www.tradewindsnews.com/finance/1312998/ktb-kdb-and-uni-asia-team-up-on-ship-finance

South Korean Investors Pile Into U.S. Commercial Property Debt

2018.04.17

Some 21% of foreign investment in U.S. real-estate debt as of mid-April came from the Asian nation

U.S. commercial real-estate owners are raking indebt capital from South Korean investors huntingfor higher returns and better asset diversification.In New York City, KTB Asset Managementrecently agreed to provide a five-year, fixed-rateloan to RFR Holdings for the refinancing of 285Madison …..

Linkhttps://www.wsj.com/articles/south-korean-investors-pile-into-u-s-commercial-property-debt-1523988201

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Korean Capital Market – Alternative Investment

Rising Alternative Investment in Korean Capital Market

(Source: The bank of Korea, Ministry of Finance, FSS )

Alternative Investment/GDP (Left)

Alternative Investment/Total Investment (Right)

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Korean Capital Market – Alternative Investment

Overview of Korean Institutional Investors and Asset Classes

Pension Fund, 36.0%

Life Insurance,

24.6%

General Insurance,

12.8%

Bank, 6.1%

Security, 1.8%

AMC, 18.7%

PPP (SOC), 39.5%

REIT's, 7.0%

Property Fund, 22.6%

Special Asset, 15.4%

Hedge Fund, 1.2%

PEF, 14.3%

Major Investment Asset ClassMajor Korean Institutional Investor in AI area

(Source: The bank of Korea, Issue Note 2016-5,)

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Korean Capital Market – Alternative Investment

General Trend of the Investors (1/3)

Overseas Investment Area by Investor

(Source: The bank of Korea, Issue Note 2016-5 )

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Korean Capital Market – Alternative Investment

General Trend of the Investors (2/3)

Overseas AI vs. Domestic AI

(Source: The bank of Korea, Issue Note 2016-5 )

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Korean Capital Market – Alternative Investment

General Trend of the Investors (3/3)

Overseas AI via AMC

(Source: The bank of Korea, Issue Note 2016-5 )

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Korean Sovereign Financing Options for Maritime Industry

Overview of Korean Maritime Financial Institutions

• Export Credit Agency

• Buyer’s Credit Program (Direct Loan & Guarantee)

• Eco-Ship Fund & Bond Guarantee

• Export Credit Agency

• Buyer’s Credit Program (Medium & Term Export Insurance)

• Korea Asset Management Corp.

• KAMCO Shipping Fund Program (Senior & Junior Loan) under Korea SIC Act. Scheme

• Korean Shipping Company only

• State-run Policy Bank

• All Bank Financial Products

• Ocean Value-up Fund Program

• Korea Shipping & Maritime Transportation

• Tonnage Bank Program

• Will merge into Korea Maritime Corporation*in Aug of 2018

• Korea Maritime Guarantee Insurance

• Insurance Program mainly support for junior loan

• Will merge into Korea Maritime Corporation* in Aug of 2018

* Korea Maritime Corporation is set to take over functions of KSMART and KMGIC

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KTB Funding Solution for Global Maritime Industry

Combined funding sources from Sovereign and Capital Market

“A New additional funding Solution

for Global Maritime Industry”

Korean Capital MarketAlternative Investment

• Korean Sovereign Financial Institutions

• Strong Support for Maritime Industry

• Competitive Terms & Conditions

• Flexible Approach for co-investment

• Leading alternative investment manager in Korea

• Extensive track record with wide maritime network

• Solid understanding of Korean sovereign & capital market Program

• Global investment platform provider

• Institutional Investors’ Increasing allocation

• Strong Drive for Overseas Investment

• Diversification of Investment Portfolio

• Recovery of Appetite for Maritime Sector

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Ocean Value-up Fund Program

Program Strategy and Investment Guideline

Counter Party

Project Focus

Target Asset

PRUDENT COUNTER PARTY, PROJECT & ASSET SELECTION WITH BALANCED INTEREST

Partnering with clear business plan, operation capability and financial soundness

All shipping & offshore asset strategically crucial for operator / end user

Opportunity based on strategic reason, robust contractual arrangement and alignment of interest

• Fleet chartering & operation strategy

• Capable for ship management in compliance with high industry requirement

• Viable of operator/end user’s financial projections

Enhancing business relationship with well established operator and end user

Continued project development for high quality investment portfolio

• Targeting key assets only for operator / end user

• Convincible background for project development

• Confirmation of Interest alignment

• Aiming to structure underlying investment with protective security

• Generating predictable and periodic cash flows

Economics Optimization of all involved parties’ expectation in consideration of market rate

Pursuing on risk-adjusted return based on robust contractual structure

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Ocean Value-Up Fund Program – Eligible Project

Newbuilding

Ocean Value-up Fund

KDB

Investment Scheme

Korean Yard

S P C (FOC**)

Financial & Strategic Investor

International Owner / Sponsor

[30~50]% of Fund Interest

Fund Management& Instruction

BBC/HP or Equity

[50~70]% of Fund Interest

*FOC (Flag of Convenience.i.e. Panama, Marshall Islands)

New Building

Contract

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Ocean Value-Up Fund Program – Eligible Project

Secondhand / Refinancing

Ocean Value-up Fund

KDB

Investment Scheme

Korean Charterer *

S P C (FOC**)

Financial & Strategic Investor

International Owner / Sponsor

BBC/HP

[30~50]% of Fund Interest

Fund Management& Instruction

Equity

[50~70]% of Fund Interest

*FOC (Flag of Convenience.i.e. Panama, Marshall Islands)

* Korean Charterer1) Korean Shipping Company2) Korean Cargo Provider

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Korean Alternative Capital Solution – Total Debt Package

Joint Support from Korean Sovereign and Capital market for Global Maritime Industry

Ocean Value-up Fund

KDB

Investment Scheme

S P C (FOC**)

Korean Capital Market

Fund Management& Instruction

[50]% of Fund Interest

*FOC (Flag of Convenience.i.e. Panama, Marshall Islands)

Senior Loan ([60]~80%)

International /Local Bank

Insurance(Credit Enhancement)

Korean Yard International Owner / Sponsor

New Building

Contract

BBC/HP or Equity

Junior Loan ([10]~[20]%)

[50]% of Fund Interest

Thank you !

Woo-Song Jung

Director / Head of Project Finance

Tel : +82 2 788 8463Mobile : +82 10 5583 6586E-Mail : wsjung@i-ktb.com