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I. OverviewI. Overview

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Our Diversified Business Portfolio with $40B+ Sales

MobileCommunications

HomeAppliance

AirConditioning

BusinessSolution

HomeEntertainment

($45B)

33% 32% 17% 9% 9%

LG Electronics

TV67%

PDP Module 8%

Media12%

Others 2%

Handset 92%

PC7%

Others 1%

W/M49%

Refrigerator42%

Others 9%

Air Conditioner92%

Component 16%

CommercialTV 21%

Monitor71%

Others 8%

DS11%

C&C9%

* Based on LGE Global (LGE parent + overseas subsidiaries) sales in 2008* Home Entertainment breakdown by product is adjusted for PDP module internal sales

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Charting the Strategy

Major approach to achieve Global Top 1 will be …

▶ Investing in brand to build ‘LG’ as a premium brand globally▶ Combining stylish design and smart technology

Global Top 1

Innovative Product

Stylish Design + Smart Technology

Invest in Brand

Beyond just awareness

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Stronger Brand, Stronger Position

Redefining “LG Electronics” brand to premium marketsProduct-led marketing strategy : Handset Appliance Digital TV

Brand Awareness (U.S) Brand Synergy

92.3

65.1

75.0

20.520.523.0

27.044.2

83.1

2005 2006 2007 2008

Unaided Aided

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What We’re Targeting - Going Forward

A balanced business portfolio for Growth and Profitability

TRSTRS** greater than greater than peers and indicespeers and indices

10%+ 6%+

4 times+ 20%+

* Total Return to Shareholder

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II. Coping with RecessionII. Coping with Recession

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Strategic Direction for the Recession

Winning the recession by taking opportunities from changes in competitive dynamicsAccelerate efforts to strengthen financial structure

Impact Strategic DirectionEnvironmental Changes

Intensifying competitiondriven by weakening demand

Industry restructuring and reorganizingLower SKU and inventory

in distribution channels

Unstable financial marketFunding environmentworsening

Higher F/X volatility

StrengtheningFinancial Structure

Even More and Faster

Winning the Recession

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Winning the Recession

Continuous, Consistent Investment on Brand and R&D

Downturn Recovery

Demand

Market Share

BetterMomentum

GainingM/S

Through consistent investment in brand and R&D, actively initiate market share gain even in the downturnWhen the economy recovers, gain better momentum with faster growth

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Strengthening Financial Structure… Even More

▶ Tighten working capital management

▶ Increase efficiency of current investments (CAPEX)

▶ Increase efficiency of asset management (Disposal of idle assets)

Management based on cash flowAccelerate improvement of financial structure

Management based on Cash Flow(KRW tn)

4.9↓5.1

6.4

71.0%

106.0%

40.0% ↓

2005 2007 2009E

Global Net Debt Global Net Debt-to-Equity Ratio

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III. Divisional Overview III. Divisional Overview -- Home EntertainmentHome Entertainment

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Demand for Flat Panel TVs is Still Growing

* Source: TSR, DisplaySearch 2Q 2009, Company data

(mn units)

30”~39”

30”↓

(mn units)

190200

206200

40”~49”

50”↑

2006 2007 2008 2009E

190200 206 200

Flat panel technology has become mainstream in the TV marketLarger-size demand is rapidly increasing backed by steep price erosion and prevailing HD contents

TV Demand Demand by Size

29%45%

58%70%

2006 2007 2008 2009E

Flat TV CRT

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LG’s Strategy for Flat Panel TVs

Strengthen our brand in selective markets : U.S., Europe, etc.Provide consumers with the best product portfolio

Providing the Best Product Portfolio

▶ Invest in brand Beyond just awarenessInvest in

Brand▶ Focused marketing in selective

markets : U.S., Europe, etc.

PDP : Renaissance ⅡBlended with home deco- Single layer design

▶ R&D concentrated on improvingpicture qualityProduct

Development▶ Creating innovative, differentiated

design

LCD : SeamlessMasterpiece design- Single layer design- Slim LED

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Successful Branding since 2007

Targeted to become Global Top 3 Premium Flat Panel TV manufacturer by 2010Target can be achievable earlier than expected due to successful branding

Flat TV

90

119141

32%

18%

Industry

8.7

13.2

18~20

52%

36~50%

11%

13~14%

LGE

M/S 9.5%

2007 2008 2009E* Source: DisplaySearch 2Q, Company data

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III. Divisional OverviewIII. Divisional Overview-- Mobile CommunicationMobile Communication

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Handset Market Situation

Emerging market is leading the handset demand since 20053G market continues to expandSlowing demand due to recession from 2H08

Global Demand Demand by Technology

(mn units) (mn units)

YoYE.Europe

AsiaW.Europe

Others

N.America

CS.America

-8%

-3%

2%

-19%-12%-12%

681

817

1002

1,123 -8%1,177

GSM

CDMA

WCDMA/ HSDPA

-6%

-16%

17%

Others

1,085

2004 2005 2006 2007 2008 2009E 2004 2005 2006 2007 2008 2009E

677

833

998

1,1231,177

1,085

YoY

-8%

* Source : Strategy Analytics May 2009** CAGR : based on 2004 ~ 2008

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Regaining Growth Momentum

Solid growth of shipment driven by GSM and WCDMARecovery of growth momentum with successful product design and development

Shipment Global M/S

(mn units)

44

55

GSMCDMA

WCDMA

64

80

2004 2005 2006 2007 2008

* Source : Company data** CAGR : based on 2003 ~ 2007 except for WCDMA

6.5% 6.7%

6.4%

*** based on LGE Parent sales and operating margin

7.2%

101110↑

2009E

8.6%

10.0%

‘04 ‘05 ‘06 ‘07 ‘08 ’09E

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Combining Stylish Design and Smart Technology

Clearer product roadmaps for target segments with right feature and positioning▶ Continuing the success of “Stylish Design” and “Function” focused segment

Focus on profitability : Trimmed SKUs and base models

200820072006 2009

Value

Feature

1st Black Label Chocolate

PRADA 2nd Black

Label Shine

ViewTy

Design

KG270

Arena

4th Black Label(To be introduced)

CookieVoyager

GD900 Crystal

Ruby

3RD Black Label Secret

PRADA2

KS360

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III. Divisional Overview III. Divisional Overview -- Home ApplianceHome Appliance

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We’re a Leader in the Global Appliance Industry

CAGR over 10% while industry grows 2~3% by annumGlobal No.3 in terms of sales, but No.1 in terms of profitability and competitivenessAiming Global Top tier in both sales and profitability by 2012

Target ZoneGlobal Sales

Electrolux

Whirlpool

LG

Sale

s

LG(2012)

CAGR 10%

Export

Domestic

2004 2005 2006 2007 2008 Profitability* Including A/C sales* Including A/C sales

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Reasons for our great success

▶ Producing high-end products in Korea

▶ Emphasis on R&D Product leadership

▶ Focusing on major products

▶ Technological leadership generated by vertical integration of key components

▶ Utilizing China as low-costproduction base

▶ Increasing premium product proportion

Korea34%

China55%

Asia6%

Others4%

WashingMachines

Ref. Compressor

WashingMachine

Refrigerator

* Based on unit, 2007

In-house production

Motor

Emphasis on R&D leading for innovative productsLow cost production bases : China, India, etc. Focus on major premium products : Washing Machines and Refrigerators

Emphasis on R&D Cost Competitiveness Focus on High-End

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Appendix : 2009 Business Structure Change

DigitalAppliance

DigitalDisplay

DigitalMedia

MobileCommunications

HomeAppliance

AirConditioning

HomeEntertainment

BusinessSolution

MobileCommunications

- Refrigerator- Washing Machine- C&C- Healthcare- Others

- Monitor- Hotel TV - Digital Signage- Security - Car Built-in

- Residential Air Con. - Commercial Air Con.- BMS (Home Net)- Others

- LCD/CRT TV- PDP Module/

No Changes- Handset - PC - Others

TV - Home A/V - STB (Set Top Box)- DS (Digital Storage)- RMC (Recording Media Chemetronics)

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Appendix : Divisional Sales (Parent)

* Adjustments were made for apple to apple comparison based on 2009 business structure change. * Divisional sales includes internal transaction between divisions

QoQ YoY Sales 1,538 1,485 1,688 1,324 6,035 1,512 1,723 13.9% 16.0%

Op. Profit -89 -92 -72 -198 -451 -74 -18 (%) -5.8% -6.2% -4.3% -14.9% -7.5% -4.9% -1.1%

Sales 3,423 3,710 3,393 3,668 14,193 3,682 4,579 24.4% 23.4%Op. Profit 479 531 368 46 1,424 311 549

(%) 14.0% 14.3% 10.8% 1.3% 10.0% 8.4% 12.0%Sales 2,955 3,360 3,089 3,209 12,612 3,350 4,291 28.1% 27.7%

Op. Profit 468 547 384 75 1,475 311 546(%) 15.9% 16.3% 12.4% 2.3% 11.7% 9.3% 12.7%

Sales 924 989 1,030 962 3,905 995 1,141 14.7% 15.4%Op. Profit 79 90 69 -67 171 143 154

(%) 8.5% 9.1% 6.7% -6.9% 4.4% 14.3% 13.5%Sales 721 756 456 357 2,288 633 773 22.2% 2.3%

Op. Profit 107 117 2 -56 170 96 80(%) 14.9% 15.5% 0.4% -15.8% 7.4% 15.2% 10.3%

Sales 252 210 225 209 895 215 221 2.6% 5.1%Op. Profit -5 -13 -19 -36 -74 -34 -46

(%) -2.1% -6.0% -8.6% -17.4% -8.2% -16.0% -20.8%

Sales 71 84 95 72 321 37 40 n/a n/aOp. Profit -7 2 -10 1 -14 -4 -43

Sales 6,927 7,234 6,887 6,591 27,639 7,074 8,477 19.8% 17.2%Op. Profit 564 635 338 -310 1,227 437 714

(%) 8.1% 8.8% 4.9% -4.7% 4.4% 6.2% 8.4%

1Q'08 2Q'08 3Q'08

H E

4Q'08 FY08 1Q'09 2Q'09

M C

Handset

Total

H A

A C

B S

Others

(Unit :KRW bn)

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Appendix : Divisional Sales (Global*)

QoQ YoY Sales 3,622 3,780 3,979 4,986 16,368 4,298 4,509 4.9% 19.3%

Op. Profit -13 27 33 -31 16 14 224(%) -0.4% 0.7% 0.8% -0.6% 0.1% 0.3% 5.0%

Sales 3,643 4,086 3,815 4,487 16,030 4,253 5,140 20.8% 25.8%Op. Profit 457 525 386 176 1,544 255 545

(%) 12.6% 12.8% 10.1% 3.9% 9.6% 6.0% 10.6%Sales 3,195 3,754 3,514 4,093 14,556 3,916 4,877 24.5% 29.9%

Op. Profit 445 541 405 215 1,606 263 538(%) 13.9% 14.4% 11.5% 5.2% 11.0% 6.7% 11.0%

Sales 1,904 2,131 2,255 2,310 8,600 2,211 2,339 5.8% 9.8%Op. Profit 84 103 112 -50 248 102 181

(%) 4.4% 4.8% 5.0% -2.2% 2.9% 4.6% 7.7%Sales 1,170 1,690 983 684 4,527 1,274 1,720 35.0% 1.8%

Op. Profit 61 170 22 -11 241 61 175(%) 5.2% 10.1% 2.2% -1.6% 5.3% 4.8% 10.2%

Sales 1,173 1,113 1,177 1,181 4,645 1,096 1,016 -7.3% -8.7%Op. Profit 27 35 22 20 103 27 14

(%) 2.3% 3.1% 1.8% 1.7% 2.2% 2.5% 1.3%

Sales -295 -65 -199 -277 -837 -279 -226 n/a n/aOp. Profit -10 -2 -4 -3 -20 -4 -4

(%) 3.5% 3.7% 1.9% 1.1% 2.3% 1.4% 1.9%

Sales 11,218 12,735 12,009 13,371 49,333 12,853 14,497 12.8% 13.8%Op. Profit 605 856 570 101 2,133 456 1,133

(%) 5.4% 6.7% 4.8% 0.8% 4.3% 3.5% 7.8%

1Q'08 2Q'08 3Q'08 4Q'08 FY08 1Q'09 2Q'09

H E

M C

Handset

Total

H A

A C

B S

Others

* Divisional sales pertains solely LG Electronics Korea and its overseas subsidiaries and includes internal transactions* Adjustments were made for apple to apple comparison based on 2009 business structure change.

(Unit :KRW bn)