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 205,858,417,000 Before Reduction (shares) 4. Number of Stock Issued before and after Capital Reduction Preferred Stock (shares) 5. Ratio of Capital Reduction Common Stock (%) Preferred Stock (%) 55.16 Common Stock 205,858,417 (shares) 92,297,189 92,297,189,000 After reduction (shares) 1,000 After Reduction (KRW) 113,561,228 (shares)

6. Record Date of Capital Reduction 7. Method of Capital Reduction 8. Reason for Capital Reduction Scheduled Date of Shareholders General Meeting Book Closure Period Existing Share 9. Schedule of Capital Reduction Certificate Submission Period

28 November 2013 Share Consolidation Improvement of Financial Structure

From 25 November 2013 To Delivery Date of New Shares

From 23 November 2013 To 28 November 2013

Trading Suspension From 27 November 2013 To a business day before Period Delivery Date of New Share Certificate Listing Date 10. Period for Filing Objection by Creditors From To 24 January 2014 Korea Securities Depository 22 November 2013 Not Applicable 23 January 2013 Change Listing Date

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. Subject to 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 shares of affiliates and directors [STX Corporation, STX Offshore & Shipbuilding, STX Engine, Duk-Soo Kang] with par value per share of KRW 1,000 shall be consolidated by 10:1 ratio with the same par value, the shares of ordinary shareholders with par value per share of KRW 1,000 shall be consolidated by 2:1 ratio with the same par value, and the treasury shares of 1,127,526 shares held by the Company shall be nullified in full. - 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 delivery date is the date to deliver the shares after 2nd capital reduction followed by the completion of 1st capital reduction and debt-to-equity conversion consecutively. - The listing date is the date to list shares upon the whole completion of 1st capital reduction, debt-to 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.

BY ORDER OF THE COMPANY

Lotus Isabella Lim Mei Hua Company Secretary