RISK DISCLOSURE OF USING ONLINE TRADING

DongA Bank Securities Company (DAS) offers online trading services for investors who open trading accounts with DAS (clients) with the goal of increasing customer satisfaction with DAS’s securities brokerage services.

Clients do not need to physically visit DAS’s trading floor; they can still place buy/sell orders, check transaction history, view account statements, get advances on securities sales, transfer funds online, and more. When a trading decision is made, clients can place orders immediately to seize opportunities.

Orders placed through Online Trading are automatically and directly transmitted into DAS’s trading system without any manual intervention and are then forwarded to the Stock Exchange System.

However, DAS also advises clients of the risks that investors might encounter when engaging in online trading via Trading Online. Investors should only proceed with transactions if they understand and accept the potential risks disclosed below:

  1. Risks due to Information System Failures: These are issues arising from network congestion, service provider connection failures, hardware or software malfunctions, or virus attacks on computer systems. These risks can lead to system disruptions, delays in system operations, impairments in information exchange, incorrect, delayed, or halted securities transactions, errors in stock price data, and other securities information.

  2. Risks from Malicious Attacks (Hackers): The online trading system may be attacked by malicious entities in various forms by different attackers. Threats can come from both internal and external sources (via the internet). Attackers can be either professional or amateur hackers. Attack methods may include probing attacks (exploiting system vulnerabilities), access attacks (unauthorized data modification), and Denial of Service (DoS) attacks (aimed at depleting network resources like memory and bandwidth, causing the system to be unable to function).

  3. Risks from Client-side Actions: Another potential risk is created by the client’s lack of caution. These errors often arise from ignorance of internet threats and fraud schemes such as phishing, pharming, trojans, spyware, etc., which can steal important user information like usernames/passwords, credit card numbers, and PINs. This can expose sensitive information in online transactions.

  4. Force Majeure Risks: Such as natural disasters, fires, etc.

Potential risks during transactions at DAS include, but are not limited to, the risks mentioned above. Investors need to be aware of these potential risks, carefully study, and assess them before deciding to engage in online trading at DAS. By participating in online trading at DAS, investors inherently accept these potential risks.

To mitigate these risks, we advise clients to adhere to personal security rules such as protecting email addresses, passwords, personal computers, and wireless devices. Additionally, clients should avoid accessing unfamiliar websites or clicking on suspicious links. If there are signs of compromised important information, clients should immediately report to DAS’s IT department for timely support.

We are not responsible if clients disclose their access passwords or transaction passwords. If clients detect unauthorized use of their access passwords and orders, please promptly notify DAS to suspend transactions and take appropriate measures.

We are committed to providing the best service and minimizing technical risks as much as possible. Thank you for trusting DAS’s online trading services.