LG Electronics

November 2002

As a note, this presentation was released as the dates shown and reflected management views as of these dates.

While reviewing this information, the data and information contain certain forward-looking statements that are

subject to known and unknown risks and uncertainties that may cause actual results to differ from those stated

or implied by such statements. These risks and uncertainties include, but are not limited to the risk factors noted

in the Company’s Earnings Releases and the Company’s filings with the Financial Supervisory Commission of

Korea. The Company assumes no obligation or responsibility to update the information provided in the

presentations in correspondence to their respective dates.

Accomplishments to DateAccomplishments to Date

Business Structure Business Structure

LG Micron

LG Innotek

LG. Philips LCD

LG. Philips Displays

LGIBM PC

Overseas Subsidiaries

Air-ConditionerRefrigerator

Washing MachineVacuum Cleaner

Cooking ApplianceOthers

LGE is in four different business lines with two JVs with Philips

Digital Display& Media& Media

Optical StoragePC

MonitorTV

Audio/VisualRecording Media

PDP

Digital Display HomeAppliance

HomeAppliance

MobileHandsetMobile

Handset

LG ElectronicsLG Electronics

LG Electronics Investment(LGEI)

TelecomSystem

Wireless SystemSwitching

& TransmissionData Network

TelecomSystem

CDMA handsetGSM handsetWLL handset

AccomplishmentsAccomplishments

Now LGE is reshaped and more focused and most of all, has much clearer direction

Demerger to focus on main business

Strong growth, high margin Home Appliance division

- CAGR from 1999 to 2002 : LGE 22% vs. Industry 4%

High growth in Handset division with growing market share

- CAGR from 2000 to 2002 : LGE 50% vs. Industry 1%

World top-class PDP maker / Leader in Digital TV development

LG.Philips LCD ahead of competition in 5G TFT-LCD production

Globally securing a top-tier position in major products

(Optical storage, Monitor etc.)

Product Leadership in Key MarketsProduct Leadership in Key Markets

LGE has built up its presence in the global market by taking number one position in many product areas

Global Market Share in 2002(E) Korean Market Share

Air Conditioner *Air Conditioner *Optical Optical StorageStorage

11CRTCRT

No.1No.1No.1

15.4% 21.4% 27.0%

MonitorMonitorCDMA CDMA 18.0%

TFTTFT--LCDLCD22

10.4%17.0%

336.4%

* Based on Package Air conditionerSource: DisplaySearch, LSI, IDC, LGE

Performance HistoryPerformance History

Sales has grown steadily despite the economic turmoil Sales

(Unit : W tril.)

Sales : W18.4 ~ 18.5 tril. (15% ~ 16% yoy growth)

Operating Profits : 6.4~6.5%(more than 50% growth yoy)

Recurring Profits : Dramatic improvement in equity method accounts(W902 bil. loss in 2001)

2002 Target16.6

10.5

6.1

14.8

9.9

4.910.59.9

7.8

2.7

7.3

2.6

1998 1999 2000 2001

Export Domestic

1.8 1.5 1.6

4.2

2

54.5

2.4

2

0.1

0.20.7

Strong sales in US CDMA

2domestic

'01 1H '01 2H '02 1H '02 2H(E)

CDMAexport

GSMExport

4.25.7

6.8

9

(unit: million units)Advance intoEurope and China

Achievement Outlook

Handset Performance and OutlookHandset Performance and OutlookCDMA so far led the growth. GSM will be next growth driver

Full launching of EVDO and WCDMA market in KoreaCDMA : US market to move to color phones,

Demand growth in China and India Color phones to lead robust GSM sales

CDMA in US : Secured #1 supplier position to major operatorGroundbreaking effort to GSM market launched LG Brand

Global Market ShareLGE is now 6th in the global market with 2nd place in the CDMA handset market.

Europe, China, and India are next growth areas.

Global Handset Makers’ Status

Worldwide Handset M/S* Worldwide CDMA Handset M/S

2002 1H20012002 1H2001

1 Samsung 30.9%

2 LG 17.7%

3 Motorola 12.3%

4 Nokia 11.3%

5 Kyocera 10.6%

1 Samsung 23.3%

2 LG 18.9%

3 Motorola 17.3%

4 Kyocera 13.2%

5 Nokia 12.3%

1 Nokia 36.3%

2 Motorola 16.5%

3 Samsung 10.1%

4 Siemens 8.8%

5 SEMC 5.8%

6 LG 3.6%

7 Alcatel 3.2%

8 Kyocera 2.2%

9 Mitsubishi 2.1%

10 NEC 2.1%

1 Nokia 35.6%

2 Motorola 14.9%

3 Samsung 7.3%

4 Siemens 7.3%

5 SEMC 7.1%

6 NEC 2.9%

7 Mitsubishi 2.9%

8 Panasonic 2.7%

9 Alcatel 2.6%

10 LG 2.5%

*Source : Strategy Analytics, August ‘02

2H Expectation - CDMASequential drop in 4Q especially from US expected

87% in domestic market and 24% in export expected to be color phones

Color-Screen Sales Trend

Domestic

Export

0%

13%

24%

'02 2Q '02 3Q '02 4QE

0%

45%

69%

87%

'012Q

'014Q

'022Q

'024QE

0

1,9012,588 2,685

1,900

958

6461,065

1,100

1Q 2Q 3Q 4Q(E) 2002(E)

CDMA Performance in 2002

Export

Domestic

9.1M

3,8M

2.9M3.2M

3.8M

3.1M 12.9M

2H Expectation - GSMGSM business offers great opportunities for LGE to be in a global top-tier handset maker by 2005.

Product Leadership-Export launch from selected “hit” products in Korea-Maximize synergy between GSM and CDMA

business

Performance Overview

(Unit: thousand)Technology leadership - Utilize multimedia technology from Display &

Media division

Enhancing Brand Power - Targeting mid to high market - Utilize high brand power in Europe and China

Total 2.6M units in 2002

LGE’s Strength

1Q 2Q 3Q 4Q(E)

260

480

750

1,100

LGE as a top CDMA makerLGE succeeded in Korea, a toughest test ground for new tech with fastidious customers.LGE has outstanding competitiveness in ever-changing world handset market with itsInnovation, customization and product differentiation capability.

Market - Change in Game Rule LGE’s Competitiveness

• ’97~’00 • Scale Game - Moderate Quality- Low Price

• ’00 ~ • Scale + Exciting Products

- Excellent design- Multi media

[ Service operators ]

[Handset customers]

• Profit aggravation of service operators

• Increasing desire for better design and new tech

Rapid product development time- Short product lead time of 8.5 months- More diverse model portfolio vs. competitors

Vertical integration

- Ability to leverage product development ofDisplay and Media Tech divisions

Innovative and smart designs

Successful customization with major operators

Going ForwardGoing Forward

Diversified Product PortfolioDiversified Product Portfolio

LGE will continue to move up to the value chain by allocating resources into future business

Product Life Cycle

Optical Storage

Handsets

Digital TV

PDP

OLED

Prof

itabi

lity

Home Appliances

Time

Balanced ContributionBalanced Contribution

Operating Profit Up to 3Q 20022001 Operating Profit Breakdown

Handset&System

21%

Appliance50%

Display&Media29%

Handset&System

19%

Appliance62%

Display&Media19%

More balanced income from each sector projected

Major contributor

- GSM / CDMA handset- TV – LCD and PDP TV- Optical Storage- Other Premium Products

Major contributor- Package Air conditioner- Refrigerator- Optical Storage - TV- CDMA handsets

Stronger Balance SheetStronger Balance Sheet

Having strong balance sheet is the first priority of LGE.

LG Electronics Debt (KRW trn)

4.94 3.6 3.1

118%95%

128%97%

50%

2000 2001 After Demerger 3Q 2002 2005E

Debt D/E Ratio

Level

A strong balance sheet is a prerequisite for a global playerFor stable growth and investment, LGE will reduce current 97% gearing level down to 50% level by 2005

Key SummaryKey Summary

With strong growth in GSM and color phones, handsets has contributed to the overall margin improvement

- GSM : Explosive growth (grew 877% YoY, 38% QoQ in 3Q02) with highly improved profitability- Domestic : Product leadership (OLED, EV-DO Phones) / Full product line-up, leading to market share expansion

Ongoing growth of Home Appliance in sales and profitability

- Sales has shown over 20% CAGR since 1998 with more than 10% op margin- Premium products have driven the growth, maintaining market leadership

Level-up in PDP business with a possible turnaround in System business in 2003

- PDP : Visible demand growth with reliable yield improvement- System : Better profitability from W-CMDA sales and business rationalization

Continuing cost innovation and restructuring to improve profitability

- Business rationalization in Monitor, PCB and Telecom System

Thank YouThank You

www.lge.com