Guaranteed Equity Linked Notes

DAEWOO SEC AMERICA

GUARANTEED EQUITY LINKED NOTES

(“ELN”)

INDICATIVE TERMS & CONDITIONS

Instrument: Guaranteed EquityLinked Notes ("Notes")

Issuer: Dachan BlueChip Investment (L) Limited,

an issuing vehicle domiciled in Labuan, Malaysia

Guarantor: Korea Exchange Bank

Administrator and Korea Exchange Bank International

Calculating Agent:

Placing Agent: Daewoo Securities Co., Ltd

Issuing price: 103104%

Denominated Currency: US Dollars ("USD")

Notional principal: USD 1.330,000

Underlying Basket: xxxx shares of XXX stock

Share Value: Number of shares x Share Closing Price

Basket Value: Aggregate value of Shan values in the Basket

Trade Date: [To Be Determined]

Issue Date: (Tenth Business Day following xhe Trade Date)

Maturity Date: September 15, 1991

Final Settlement Date: September 29, 1997

Coupon: Zero

Redemption Price: P * (B1 / B0) * [FXO | FX1 ]

where P = Total Notional Principal

B1 = Arithmetic average of the B~ Value on the 5 trading days commencing on (and including) the Maturity Date

B0 = Arithmetic avenge of the Basket Values gm the 5 trading days commencing on (and inluding) the Trade Date

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trading days commencing on (and including) the Maturity Date

FXO = Arithmetic average of the closing Levels of KRW/USD rate on the 3 trading days commencing on (and including the Trade Date

All Basker Values are adjusted for brokerage and transaction costs. The current brokerage and transaction costs are 0.5% of the underlying trade.

KRWIUSD rates as quoted on Reuters screen KFTC18 at 5:00 PMSeoul time.

Early Redemption: The ELN holder has the option to redeem the Notes, at any time prior to the Maturity Date, with a written notice to the Administrator. 5days average rule for calculating the relevant Basket Value and foreign exchange rates will be applied from one trading day after the notice is received. Early Redemption Charge will be applied, according to the schedule below. The relevant payments will be made on the tenth business day after the notice is received.

Early Redemption Charge of 2% of the relevant Basket Value if redeemed during the first six month (from the Trade Date)

Early Redemption Charge of 1% of the relevant Basket Value if redeemed after the first six months and before the Maturity date.

Issuer Option: The Issuer has the Option to payout the capital gains of the Basket (partial or whole), once every six months (from the Trade Date). In this case, the number of shares in the Basket will be adjusted and the relevant payments will be made on the tenth busimess day following the Option exercise date.

Maintenance Fee: 1.5% of the average Basket Value per annum, deducted when redeemed

Business Days: Korea, London, New York

Trading Days: On days that Korea Stock Exchange and Korean banks are open for business.

Business Day Convention: Following

Capitalization: In cast of change in capitalization, the number of shares will be adjusted by the Calculation Agent.

Denomination: USD 1,330,000

Taxajon: No withholding tax will be levied in Korea or Malaysia

Listing: Optional à [Luxembourg or Ireland]

Governing Law: English Law

Settlement: Euroclear / CEDEL