Consolidated OP of W676bn, 10.7% below consensus We believe separate 2Q16 OP of W652bn (+12% QoQ, +7.3% YoY) will miss our previous estimate by 9.3% and consensus by 3%. Due to expansion work at theGwangyang #5 blast furnace (from 3,950 cubic meters to 5,500 cubic meters), 2Q16 shipments should reach only 8.76mn tonnes; shy of our previous estimate of 8.96mn tonnes and the biggest reason for the lower OP outlook. Meanwhile, consolidated OP should reach W676bn (+2.5% QoQ, -1.5% YoY), 16.3% below

[THE INVESTOR] The service industry will get larger tax breaks and financial support funds, under the government’s “Service Economy Development Strategy” announced on July 5. The measures will be applied across the service sector, excluding adult entertainment businesses. The government also plans to review more than 200 regulations and remove those deemed detrimental to the industry. Regarding tax benefits, the service industry will be given the same benefits as the manufacturing sector, the go