2012 Trust Barometer South Korea

2012 Edelman Trust Barometer – South Korea Findings METHODOLOGY OVERVIEW GENERAL INFORMED INFORMED PUBLIC PUBLIC PUBLIC 25-64 35-64 Twelfth annual study Online survey in 25 countries Indicates Global Data 30,000+ respondents Indicates Asia Pacific APAC 1,000 general population respondents per country Region Data Ages 18+ Indicates South Korea Data Oversample of informed publics* 500 respondents in U.S. and China & 200 in all other countries Ages 25-64  (Trending data among Ages 35-64) College-educated In top 25% of household income per age group in each country Report significant media consumption and engagement in business news and public policy Asia Pacific (APAC) select countries: India, China, Japan, South Korea, Indonesia, Singapore, Australia, Hong Kong** and Malaysia** South Korea sample: 1,000 general population respondents & an oversample of 200 Informed Publics * This year Informed Publics were surveyed via online methodology instead of telephone ** New country included in this year’s study2 © Edelman, 2012. All rights reserved.

Nearly twice as many countries are now skeptics, including S. Korea & Japan;Though five Asia Pacific markets considered “Trusters” in 2012 2011 2012 GLOBAL 55 GLOBAL 51 Brazil 80 > China 76 UAE 78 UAE 68 Indonesia 74 Singapore 67 China 73 India 65 TRUSTERS Netherlands 73 Indonesia 63 Mexico 69 Mexico 63 Netherlands 61 Singapore 67 Argentina 62 Hong Kong 61 Canada 58 India 56 Malaysia 57 Italy 56 Italy 56 NEUTRAL Canada 55 Argentina 54 South Korea 53 Australia 53 Sweden 52 < Brazil 51 Japan 51 > Sweden 49 Australia 51 U.S. 49 Spain 51 > South Korea 44 France 50 Poland 44 Poland 49 U.K. 41 DISTRUSTERS Ireland 41 Germany 44 France 40 U.S. 42 Germany 39 U.K. 40 < Spain 37 Russia 40 < Japan 34 Ireland 39 Russia 32 Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries in 20124 © Edelman, 2012. All rights reserved.

Globally, NGOs and business fall to 2009 trust level – government record decline TRUST IN INSTITUTIONS – 18-COUNTRY GLOBAL TOTAL NGOs Media Business Government 80% 70% 59% 60% 57% 53% 54% 54% 52% 53% 53% 52% 49% 50% 51% 47% 46% 49% 47% 48% 46% BUSINESS 44% 46% 44% 45% 40% 43% 40% 38% GOVERNMENT 30% 20% 2007 2008 2009 2010 2011 2012 Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 35-64 in 18 country global total (excludes Argentina, Australia, Hong Kong, Indonesia, Malaysia, Singapore and UAE)5 © Edelman, 2012. All rights reserved.

In S. Korea, business trust drops to lowest level in Trust Barometer history TRUST IN INSTITUTIONS – SOUTH KOREA NGOs Media Business Government 80% 74% 72% 70% 63% 60% 60% 57% 59% 55% 50% 50% 50% 46% 48% 45% 44% 46% 43% 47% 43% 44% 43% 40% GOVERNMENT 40% 34% 38% 30% BUSINESS 31% 26% 20% 2007 2008 2009 2010 2011 2012 Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 35-64 in South Korea6 © Edelman, 2012. All rights reserved.

Majority of countries now distrust government; trust decreases significantly in S. Korea TRUST IN GOVERNMENT 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 88% 88% 85% 77% 78% 75% 75% 73% 64% 62% 61% 62% 62% 56% 53% 52% 54% 52% 52% 51% 50% 49% 49%50% 44% 47% 45% 43% 43% 43% 42% 42% 43% 40% 39% 40% 38% 35% 35% 36% 33% 33% 33% 31% 31% 32% 28% 26% 25% 20% 20% N/A N/A Q11-14. [Government in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries 7 © Edelman, 2012. All rights reserved.

Several mature economies see double-digit drops in business trust; Trust in business declines in S. Korea TRUST IN BUSINESS 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 80% 81% 81% 78% 77% 78% 74% 71% 70% 69% 67% 67% 66% 65% 65% 64% 63% 63% 61% 62% 56% 56% 57% 57% 54% 54% 53% 53% 53% 52% 52% 50% 50%50% 46% 48% 46% 46% 46% 44% 47% 47% 44% 43% 41% 41% 38% 34% 32% 31% 28% N/A N/A Q11-14. [Business in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries 8 © Edelman, 2012. All rights reserved.

In S. Korea, nearly all industries see a decline in trust; trust in the technology and automotive industries remain high TRUST IN INDUSTRIES – SOUTH KOREA 2011 2012 Technology 83% Technology 78% Energy 74% Automotive 66% Automotive 73% Energy 59% - 15 Telecommunications 71% Food and beverage 45% - 11 Banks 64% Brewing and spirits 44% - 12 Financial services 64% Pharmaceuticals 44% - 20 Pharmaceuticals 64% Media 42% - 16 Media 58% Banks 40% - 24 Brewing and spirits 56% Financial services 39% - 25Consumer packaged goods 56% Telecommunications 39% - 32 Food and beverage 56% Consumer packaged goods 35% - 21Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where onemeans that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 25-64 in South Korea 9 © Edelman, 2012. All rights reserved.

Media only institution to see trust rise globally; though steady in S. Korea TRUST IN MEDIA 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 86% 80% 79% 80% 72% 73% 70% 69% 67% 65% 65% 65% 61% 60% 61% 61% 59% 57% 54% 53% 53% 52%50% 49% 50% 48% 49% 48% 46% 46% 45% 47% 45% 45% 43% 45% 42% 45% 41% 37% 37% 38% 38% 37% 37% 36% 35% 32% 33% 27% 22% N/A N/A Q11-14. [Media in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries 10 © Edelman, 2012. All rights reserved.

Trust in corporate information sources declines over the past year in S. Korea TRUST IN INFORMATION SOURCES – SOUTH KOREA 2011 Informed Public 2012 Informed Public -9 22% 19% 19% 16% 17% 14% 11% 8% TRADITIONAL ONLINE MULTIPLE SOCIAL MEDIA CORPORATE SOURCES Q149-160. [TRACKING] Below is a list of places where you might get information about a company. For each, please indicate if you trust it a great deal, somewhat, not too much, or not at all as a source of information about a company. (Top Box - % Trust A Great Deal) Informed Publics ages 25-64 in South Korea11 © Edelman, 2012. All rights reserved.

NGOs still most trusted institution, despite some drops; S. Korea trust in NGOs stable and high TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS) 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 85% 79% 80% 78% 75% 74% 72% 72% 72% 70% 70% 70% 67% 67% 65% 68% 65% 64% 64% 66% 66% 66% 63% 62% 61% 61% 60% 60% 58% 58% 58% 59% 55% 56% 55% 54% 53% 53% 55% 53% 53% 51% 51% 51%50% 48% 49% 42% 41% 30% 28% N/A N/A Q11-14. [Non-governmental organizations (NGOs) TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9- point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries 12 © Edelman, 2012. All rights reserved.

Business not meeting public’s expectations in S. Korea too SOUTH KOREA Gap Business 64% - 43 Importance LISTENS TO CUSTOMER NEEDS AND FEEDBACK 21% Company Performance TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS 62% - 45 17% TREATS EMPLOYEES WELL 61% - 46 15% OFFERS HIGH QUALITY PRODUCTS OR SERVICES 61% - 32 29% HAS TRANSPARENT AND OPEN BUSINESS PRACTICES 59% - 41 18% PLACES CUSTOMERS AHEAD OF PROFITS 58% - 44 14% COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS 55% - 37 BUSINESS 18% HAS ETHICAL BUSINESS PRACTICES 53% - 39 14% WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 52% - 33 19% RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST 47% - 30 COMPANIES TO WORK FOR OR MOST ADMIRED COMPANIES 17% IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS 45% - 18 27% CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY 45% - 29 IN WHICH THE COMPANY OPERATES 16% 41% - 27 DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS 14% ADDRESSES SOCIETYS NEEDS IN ITS EVERYDAY BUSINESS 39% - 21 18% PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS 35% - 23 SOCIETAL ISSUES 12% HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP 31% 17% - 14 Q52-69. How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in South Korea (excludes ‘Don’t Know’ responses);Q103-118. Please rate [INSERT COMPANY] on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they are performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in South Korea14 © Edelman, 2012. All rights reserved.

Similarly, government not meeting public’s expectations in S. Korea GOVERNMENT IMPORTANCE VS. PERFORMANCE – SOUTH KOREA Government Importance Government Performance Gap 62% -48 HAS TRANSPARENT AND OPEN PRACTICES 14% 60% -46 LISTENS TO CITIZENS NEEDS AND FEEDBACK 14% 50% -37 COMMUNICATES FREQUENTLY AND HONESTLY 13% 50% -35 WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 15% EFFECTIVELY MANAGES THE FINANCIAL AFFAIRS OF THE 49% -35 COUNTRY 14% PROVIDES NATIONAL TRAINING PROGRAMS TO CREATE 42% -29 EMPLOYMENT OPPORTUNITIES 13%CREATES INNOVATIVE PROGRAMS THAT POSITIVELY IMPACT 40% -27 LOCAL COMMUNITIES 13% PARTNERS WITH BUSINESS NGOS, AND THIRD PARTIES TO 32% ADDRESS SOCIETAL ISSUES -21 11% Q132-139. How important is each of the following actions to building your trust in government? Please use a nine-point scale where one means that action is not at all important to building your trust and nine means it is extremely important to building your trust. (Top 2 Box , Very/Extremely Important) General Population in South Korea; Q140-147. Please rate your government on how well you think they are performing on each of the following attributes using a nine-point scale where one means they are performing "extremely poorly" and nine means they are performing "extremely well". (Top 2 Box , Performing Very/Extremely Well) General Population in South Korea 15 © Edelman, 2012. All rights reserved.

In S. Korea, government leaders less trusted than business leaders to tell the truth Business Leaders Government Leaders % WHO DO NOT TRUST THEM AT ALL TO TELL THE TRUTH 73% 69% 69% 66% 66% 65% 60% 51% 53% 50% 51% 50%50% 48% 46% 47% 46% 46% 46% 44% 43% 43% 42% 41% 40% 40% 38% 36% 36% 34% 36% 34% 34% 30% 27% 28% 29% 26% 23% 24% 24% 21% 17% 17% 14% 15% 13% 14% 10% 11% 9% 10% 5% Q126A. [SPLIT SAMPLE] How much do you trust business leaders to tell you the truth, regardless of how complex or unpopular it is? (% who say they do not trust them at all) General Population in 25 country global total and across 25 countries; Q126B. [SPLIT SAMPLE] How much do you trust government leaders to tell you the truth, regardless of how complex or unpopular it is? (% who say they do not trust them at all) General Population in 25 country global total and across 25 countries 16 © Edelman, 2012. All rights reserved.

Despite lack of trust in government, calls for increased regulations; Just under half in S. Korea share this view % WHO BELIEVE GOVERNMENT DOES NOT REGULATE BUSINESS ENOUGH 77% 70% 68% 64% 61% 58% 54% 54% 54% 53% 51% 50%50% 49% 48% 48% 46% 45% 40% 40% 38% 36% 35% 34% 30% 30% 25% Q130. When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (% who selected ‘not enough’) Informed Publics ages 25-64 in 25 country global total and across 25 countries 17 © Edelman, 2012. All rights reserved.

In S. Korea, calls for greater protection, open competition and responsible behavior THINKS THE MOST IMPORTANT ROLE THAT GOVERNMENT SHOULD PLAY IN BUSINESS IS: South Korea Business 32% PROTECT CONSUMERS from irresponsible business practices can address on its own 23% REGULATE BUSINESS ACTIVITIES to ensure companies are behaving responsibly 15% BUILD INFRASTRUCTURE that promotes and facilitates business opportunities 25% Work to ENSURE FREE MARKET ACCESS AND OPEN COMPETITION within industries 5% GIVE OR LOAN MONEY TO BUSINESS when it experiences financial crisis 1% Government SHOULD NOT PLAY A ROLE in business Perceived drivers of irresponsible behavior: • Poor management (Global - 29%, APAC - 27%, South Korea - 15%) • Unethical business practices (Global - 28%, APAC - 31%, South Korea - 45%) • Shortcuts that lead to poor quality (Global - 21%, APAC - 23%, South Korea - 27%)Q127. Which of the following items do you think makes people in a company most likely to engage in risky and irresponsible behavior that could damage a company? InformedPublics ages 25-64 in 25 country global total, Asia Pacific region and South Korea; Q131. Which of the following is the most important role that government should play in business?Informed Publics ages 25-64 in South Korea 18 © Edelman, 2012. All rights reserved.

BUSINESS CAN EARN LICENSE TO LEAD 2008-2009 Low trust in business and CEOs Business has flexibility and speed THE DYNAMIC OF TRUST BETWEEN Call for increased regulation BUSINESS & protection from Business leaders GOVERNMENT irresponsible behavior sought more trusted thangovernment leaders business has advantage in 24 out of 25 markets 2011 Government responds Dwindling trust in government policy paralysis 20 © Edelman, 2012. All rights reserved.

Business: from license to operate to license to lead SOUTH KOREA CURRENT TRUST BUILDING FUTURE TRUSTAttributes that Correlate with Current Trust Most Important Attributes that Build Trust 30% TRUST BUSINESS SOCIETAL ATTRIBUTES 1) Listens to customer needs and feedback MORE IMPORTANT TO 1) Highly regarded, top leadership BUILDING FUTURE 2) Takes actions to address issue or crisis 2) Innovator of new products TRUST 3) High quality products or services 3) Treats employees well 3) Ranks on a global list 5) Has transparent and open business CURRENT TRUST 6) Places customers ahead of profits DRIVEN BY OPERATIONAL ATTRIBUTES 7) Communicates frequently and honestly 8) Has ethical business practices 9) Works to protect/improve environment 10) Ranks on a global list 11) Positively impacts the local community Societal 11) Innovator of new products Operational 13) Delivers consistent financial returns 14) Addresses societys needs 15) Partners with third parties 16) Highly regarded, top leadershipQ11-14. [TRACKING] [Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and ninemeans that you “trust them a great deal”. (Top 4 Box, Trust) General Population in South Korea; Q52-69. How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where onemeans that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important)General Population in South Korea (excludes ‘Don’t Know’ responses)* ‘Current Trust’ results based on regression analysis of the general population21 © Edelman, 2012. All rights reserved.

Nearly all spokespeople suffer decreased credibility in S. Korea; “Person like me” moves from bottom three to top two CREDIBLE SPOKESPEOPLE – SOUTH KOREA 2011 2012Technical expert in the company 81% Technical expert in the company 63% - 18 Academic or expert 76% A person like yourself 54% Financial or industry analyst 71% Academic or expert 47% - 29 NGO representative 68% Financial or industry analyst 43% - 28 CEO 63% NGO representative 43% - 25 A person like yourself 59% CEO 29% - 34 Regular employee 59% Regular employee 28% - 31Government official or regulator 50% Government official or regulator 16% - 34 Q119-126. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in South Korea 22 © Edelman, 2012. All rights reserved.

In S. Korea, skepticism requires repetition MAJORITY NEEDS TO HEAR INFO 3-5 TIMES TO BELIEVE NUMBER OF TIMES NEEDED TO HEAR INFORMATION – SOUTH KOREA Ten or more times (10+), Once (1), 1% 18% Twice (2), 7% Six to Nine times (6-9), 6% Three times (3), 35% Four or Five times (4 - 5), Three to Five times 33% 68%Q148. [TRACKING] Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to beexposed to something about a specific company to believe that the information is likely to be true? Please enter the number of times below. (Excludes ‘Don’t Know’ responses)Informed publics ages 25-64 in South Korea 23 © Edelman, 2012. All rights reserved.

Earn License to Lead Exercise principles-based leadership, not rules based performance Recognize that operational factors responsible for current trust won’t build future trust, societal and engagement behaviors will Practice radical transparency: speak first to employees; report on goals Shape the public discourse on issues of importance to business24 © Edelman, 2012. All rights reserved.

2012 Trust Barometer South Korea

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