Although the global economy continued to escape from the instability and stagnation, Korea experienced economic dislocation and hardship due to the credit card crisis, slumping domestic demand and political issues. As a consequence, trading volume in the futures market decreased. The continuing reduction in brokerage rates resulted in a decrease in brokerage commissions, which was a major source of our revenue. However, we took this as an opportunity to examine our company's basic managerial conditions and promotion strategies. As a result we sensed the significant value of our clients and the need of risk management.

In 2005, our corporate abilities will focus on providing a more secure and convenient transaction service.

First, “Customer Asset Protection Based on Ethics” will be implemented to higher level.

Should a breach in confidence occur, we would no longer be able to carry out business with the customer. Thus we value customer protection as our first and foremost duty. Accordingly, emphasized compliance will bring prior inspection to all operations and isolate the possibility of any misfortunes. Our system focuses on prevention and inspection to block any deal that will not profit our customer.

Second, “Strengthening Customer Service” will be achieved.

Highly credible consulting from top professionals, a fast, secure and convenient transaction system are essential elements in choosing a futures company. For the cultivation of more distinguished professionals, we are planning to administer a training program to foster talented consultants.

Our computer systems are heading towards an investment environment befitting global standards along with the reconstruction of the Futures net to realize customized transaction for each individual client.

Providing seminars for prominent clients and timely investment strategies by enhanced research methods will be a part of our better improved services.

And third, “Creating New Products” to provide diverse investment opportunities to our clients. A more diversified portfolio of products will expand our client's choice of product. To boost customer investment opportunities, we plan to actively pursue overseas futures brokerage such as KOSPI200 stock exchange futures/options, CBOT/CME and FX Margin Trading, a solution to personal foreign currency exchange in addition to KOSPI200 stock exchange futures/options now available at Samsung Futures.

The insecure global economy has continued to affect domestic markets and furthermore, the futures market has not been able to overcome the previous year's stagnation. The business environment in 2005 does not seem very positive under the current circumstances.

However, we believe it is our customers that create our future. Making generous investments in our customers and boldly searching for new markets, Samsung Futures will continue its efforts as a most trusted partner.

We ask for your continued encouragement and support.