STX PAN OCEAN CO., LTD.

__________________________________________________________________________ MANDATORY DISCLOSURE (REVISION OF DECISION ON CAPITAL REDUCTION ) __________________________________________________________________________

After the fractional shares accrued upon the capital reduction have been nullified, there are some changes in share numbers and capital due to the difference incurred from the fractional shares. Therefore, the total number of issued shares has been revised from 92,297,189 to 92,287,318 as follows.

Items

Reason for revision After the fractional shares accrued upon the capital

Before revision

After revision

1. Number and Type of the Stock To Be Reduced

reduction have been nullified, there are some changes in share numbers and capital due to the difference incurred from the fractional shares. 113,561,228 113,571,107

3. Capital before and after Capital Reduction - After Reduction (KRW) 4. Number of Stock Issued before and after Capital Reduction - After reduction (shares) 5. Ratio of Capital Reduction " " 92,297,189 55.16 92,287,310 55.17 " 92,297,189,000 92,287,310,000

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 Common Stock 205,858,417 (shares) Preferred Stock (shares) 5. Ratio of Capital Reduction Common Stock (%) Preferred Stock (%) 28 November 2013 Share Consolidation Improvement of Financial Structure 55.17 92,287,310 92,287,310,000 After reduction (shares) 1,000 After Reduction (KRW) 113,571,107 (shares)

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

From 25 November 2013 To Delivery Date of New Shares

From 23 November 2013 To 28 November 2013

Trading Halt Period Delivery Date of New Share Certificate Listing Date 10. Period for Filing Objection by Creditors From To

From 22 November 2013 To a business day before Change Listing Date

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. 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

Date: 10 December 2013