22 November 2013

* Company: STX Pan Ocean Co., Ltd * Legal Administrator: You Sik Kim * Location: STX Namsan Tower, 631, Namdaemunno 5-ga, Jung-gu, Seoul, Korea Tel) 82-2-316-5114 Website) http://www.stxpanocean.com

* Person in charge:

Position) Executive Director Tel) 82-2-316-5114

Name) Bo Yeon Kim

Decision on Capital Reduction

Common Stock 1. Number and Type of the Stock To Be Reduced Preferred Stock (shares) 2. Par Value per Share (KRW) Before Reduction (KRW) 3. Capital before and after Capital Reduction 1,323,130,665,000 132,308,624,000 1,000 After Reduction (KRW) 1,190,822,041 (shares)

Before Reduction (shares) After reduction (shares) 4. Number of Stock Issued before and after Capital Reduction Common Stock 1,323,130,665 (shares) Preferred Stock (shares) 5. Ratio of Capital Reduction Common Stock (%) Preferred Stock (%) 90.00 132,308,624

6. Record Date of Capital Reduction

26 December 2013 Share Consolidation of 10 Common Stock with

7. Method of Capital Reduction

Par Value of KRW 1,000 to 1 Common Stock with Par Value of KRW 1,000

8. Reason for Capital Reduction Scheduled Date of Shareholders General Meeting Book Closure Period Existing Share 9. Schedule of Capital Reduction Certificate Submission Period Trading Suspension Period Delivery Date of New Share Certificate Listing Date 10. Period for Filing Objection by Creditors From To

Improvement of Financial Structure

From 20 December 2013 To 26 December 2013

23 January 2013

24 January 2014 Korea Securities Depository 22 November 2013 Not Applicable

11. Place for Submission of Existing Share Certificates and Delivery of New Shares 12. Date of Board Resolution(Decision Date) - Attendance of Independent Directors - Attendance of Auditors 13. If Applicable for Reporting to Fair Trade Commission Present (No.) Absent (No.)

14. Reference - As the Company received the ruling from Seoul Central District Court (the Court) on the approval of the rehabilitation plan on 22nd November 2013 in accordance with 'DEBTOR REHABILITATION AND BANKRUPTCY ACT', the board of directors and the general meeting of shareholders substitute by the Court ruling. - The decision date above is the date of the rehabilitation plan approval. - The schedule of capital reduction is changeable according to the Courts decision and the work procedures and if there is any change it will be disclosed at the time of change. - The Company will carry out 1st capital reduction (effective date of 29 November 2013), debt-toequity conversion (effective date of 13 December 2013) and the 2nd capital reduction (effective date of 27 December 2013) consecutively. - The listing date is the date to list the shares upon the whole completion of 1st capital reduction, debtto equity conversion and 2nd capital reduction. - The fractional shares accrued upon the capital reduction shall be nullified, and there can be changes in share numbers and capital due to the difference incurred from the fractional shares. - The effect of capital reduction by share consolidation occurs in 9 business days from the effective date of issuing new shares.

BY ORDER OF THE COMPANY

Lotus Isabella Lim Mei Hua Company Secretary