Korean Air Lines (003490)   STOCK Address KOREA AIRLINES, INC., 1370, GONGHANG-DONG, GANGSEO-GU,SEOUL Home Page www.koreanair.com Established 1962. 6.19 Tel 02-2656-7114 Listed 1966. 3.18 IR Common shares O/S 71,971,631 President Jo,Yang Ho/Lee,Jong Hui Preferred shares O/S 1,379,177 No.of Employees 14,955(2007. 6) Firm's year-on-year sales rose, thanks to favorable tune in passenger biz, and firm's year-on-year operating profit rose thru productivity improvement and cost savings. Despite biz revenue expansion, firm turned into deficit and net profit was posted, because of decline in gain on foreign currency translation and penalty imposing deriving from violation of the antitrust act. Firm shows solid market share as the largest airline in Korea, and solid increase in passenger and cargo handling in the Incheon International Airport in Northeast Asia, which is rapidly growing, has been shown. Firm's growth is forecast, in view of FTA agreement between Korea and U.S. and beginning of Korea-EU FTA, a possibility of U.S. visa exemption, and medium and long-term growth from passenger and logistics perspective including Beijing Olympics. Profitability in the passenger sector is forecast to consistently improve, in view of high sales ratios in the U.S. and Europe as mid and long range demand increase. Firm is expected to create stable profits by diminishing external variable's impacts such as oil prices and exchange rates, stemming from efficient cost Mgt and savings. (date: 2007.06, unit : %) Name Jo Yangho HANJIN TRANSPORTATION KOREAN AIR LINES Portion 9.6 9.4 6.1 (unit : %) Sales Air Transport 96.3 Cost Raw Materials Making The Aircrafts And Equipment 2.6 Labors In-Flight Food And Beverage 0.6 Overhead (Unit : 100Mn.Won,Won) Year 98. 4 00. 4 01. 4 ~01.12 07. 4 Type BI SD SD CB SD Amount 622.40  159.91  255.35  17.24  34.11